This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/integrated-marketing-communications-imc-plan-for-red-bull-in-india-542 Red Bull the market leader in the energy drinks segment entered India to capture the growing market for beverages. Although, Indian market is a very mature market for soft drinks and fruit juices, but as far as energy drinks are concerned most of masses still prefer the natural drinks like a homemade lemonade or glucose based drinks. Also, Red Bull's heavy marketing through bars and clubs gives a perception that it has association with alcoholic drinks affecting its reach. It is has been the market leader till now in the very niche segment but it has still not been able to penetrate to the burgeoning middle class society of India. Moreover, its competition is growing with the soft drink giants Coca-Cola and Pepsi both have started eyeing the energy drink segment in India. Red Bull needs to look back at their IMC campaign in order to maintain their position at the summit and take a check at their dwindling market share. This paper analyzes the current marketing activities of Red Bull in India using various branding models and theories and gives a suggestion on the design and implementation of the new IMC campaign for Red Bull. It starts with a consumer behavior analysis of the Indian consumer with relation to energy drinks. Then to analyze the current position of the Red Bull, a SWOT analysis is presented. It gives an idea about the problems and at hand and the opportunities available once these problems are overcome. After this Red Bull's current marketing activities (both ATL & BTL) are discussed. In the second part of the report the Red Bull as a brand has been analyzed on three fronts viz. Brand Perception, Brand Equity & Brand Identity using theoretical frameworks like Brand Perceptual Mapping, Aaker's Brand Equity Model and Kapferer's Brand Identity Prism. The third part of the report starts with a communication context analysis (Internal, external, customer, business & stakeholder) of Red Bull to understand how various entities are impacting the organization. Further, it discusses the main criteria or essential elements required for the success of any IMC campaign. The last part of the report takes into account the findings of the communication context analysis and the main criteria for success of IMC campaign and gives recommendations on the marketing mix of the Red Bull and the new branding activities it should undertake in order to expand its consumer base and maintain its market leader position.

1. 1
Executive Summary
Red Bull the market leader in the energy drinks segment entered India to capture the growing
market for beverages. Although, Indian market is a very mature market for soft drinks and fruit
juices, but as far as energy drinks are concerned most of masses still prefer the natural drinks like
a homemade lemonade or glucose based drinks. Also, Red Bull’s heavy marketing through bars
and clubs gives a perception that it has association with alcoholic drinks affecting its reach.
It is has been the market leader till now in the very niche segment but it has still not been able to
penetrate to the burgeoning middle class society of India. Moreover, its competition is growing
with the soft drink giants Coca-Cola and Pepsi both have started eyeing the energy drink
segment in India. Red Bull needs to look back at their IMC campaign in order to maintain their
position at the summit and take a check at their dwindling market share.
This paper analyzes the current marketing activities of Red Bull in India using various branding
models and theories and gives a suggestion on the design and implementation of the new IMC
campaign for Red Bull. It starts with a consumer behavior analysis of the Indian consumer with
relation to energy drinks. Then to analyze the current position of the Red Bull, a SWOT analysis
is presented. It gives an idea about the problems and at hand and the opportunities available once
these problems are overcome. After this Red Bull’s current marketing activities (both ATL &
BTL) are discussed. In the second part of the report the Red Bull as a brand has been analyzed on
three fronts viz. Brand Perception, Brand Equity & Brand Identity using theoretical frameworks
like Brand Perceptual Mapping, Aaker’s Brand Equity Model and Kapferer’s Brand Identity
Prism. The third part of the report starts with a communication context analysis (Internal,
external, customer, business & stakeholder) of Red Bull to understand how various entities are
impacting the organization. Further, it discusses the main criteria or essential elements required

2. 6
1.2 SWOT Analysis of Red Bull in the Indian Market
Red Bull current position in the Indian Market can be analyzed using the below matrix
Figure 1: SWOT Analysis of Red Bull in India ( Source – Author’s Creation)
Thus, it is imperative for Red Bull to design an Integrated Marketing Strategy to leverage their
existing brand value and counter the various threats.
Strengths
• High Brand Recognition – Huge
following in the world markets
• Leadership in the Energy drinks market
• Strong Brand Identity & Brand
Personality – Fresh, Sporty, Masculine &
Trendy
• Ability to leverage its good financial
strength for brand promotions
• A successful Formula 1 team adds to its
brand value
Weaknesses
• Less experience in the Indian market
(only about 7 years)
• Overpriced in the highly price sensitive
market
• Small product base – Only a single
product offering
• Hasn’t achieved a cult recognition as of
now
• No innovation in its promotions
Opportunities
• Early mover advantage
• Introduction of new product offerings in
the market – Extending Product line
• Product Innovation - Catering to the
taste of Indian Consumer. Examples of
McDonald, Pizza Hut etc
• Mass Market Penetration through heavy
advertising and positioning
• Increase market reach -Sports events &
discovering new mediums
Threats
• Rise of the competitor brands like Burn,
XXX, monster and Gatorade with
various promotions and suitable pricing
• Move towards health and organic drinks
• Consumer might still prefer natural
lemon/ orange based drinks over caffeine
based drinks
• Less acceptability for new product
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3. 11
2) Natural – High in artificial preservatives
3) High Energy – Low Energy
4) Strong Taste – Weak Taste
5) Group Drink – Individual drink
6) Sporty- Conservative
7) High satisfaction – Low Satisfaction
The next step is to identify the competitors from each category. Red bull not only competes in
the high energy drink segment but also in the fruit juice, aerated drinks & milk based segments.
Following competitors from each category would be analyzed.
Aerated Drink – Pepsi, Coca-cola, Thumbs up, Mountain Dew
Milk Based Drinks – Amul Flavoured Milk1
Fruit Juices – Tropicana, Real from Dabur2
Energy Drinks – Burn from Coca cola, Gatorade
The Brand Perceptual Mapping has been drawn in the below given figure. Following is the
analysis-
Red bull is considered to be overpriced but at the same time it is considered sporty and provides
high energy. Consumption of Red Bull is associated with high self esteem and people like to
consume in group. That’s why Red Bull has been successful in selling its products in clubs and
bars. Red Bull is not famous among Tea-totlers as they perceive it to be containing some alcohol
due to its sale in bars.
On the other side, Red bull suffered some loss in the sales due to a rumor that it contains
Taurine, one of the essential amino acids, extracted from animals. This led to ban on the sales of
1
AMUL is one of the major players in the dairy industry in India
2
Dabur is one of home grown FMCG players in India. They sell packaged fruit juices in the name of Real Brand
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4. 16
the recipient’s side: customer reflection and customer’s internal mirror of the brand. The left side
of the hexagon deals with external side: Physique, Relationship and Reflection while the right
side of the hexagon deals with the internal side of brand identity: Personality, Culture and Self
Image. (Abbing, 2005)
In the above analysis, it is assumed that the customer or the recipient is the Indian Middle class.
Considering this assumption we can see the difference between the consumer’s self image and
the image of the brand as perceived by him. For a simple middle class consumer, the preferable
energy drink would be either lemonade or a glucose based drink. For him Red Bull is a premium
brand, overpriced and doesn’t represent any value for money. For him the functional aspects of
the product (quenching thirst and reenergizing) are important rather than emotional benefits (Self
appreciation, self esteem boost).
4. Suggested IMC Campaign for Red Bull in India
The main aim of the marketer should be to “mix and match” communication options to enhance
brand image of the brand. The idea is to choose a variety of different communication options that
present common feeling and content but are different in nature and provide complementary
advantages so that the whole is greater than the sum of parts.
4.1 Context Analysis
It is the first step towards developing an integrated marketing communication plan. It is done by
analyzing five aspects viz. Internal (organization) context, External Context, Business context,
Consumer context and Stakeholder context.
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5. 21
4.4 Recommended Strategy for Red Bull – Pull Strategy
Pull strategy involves devoting marketing efforts to directly reach the end customer as it is
believed that customers can use their buying power and influence on retailers to “pull” the
product through the channel. Traditionally, Red bull as hardly involved itself in sales promotions
and discounts, so it is recommended that it does the same in India too.
Objective: To leverage the brand name of Red Bull and sell it as an experience rather than a
product.
Suggested Tag Line for the Campaign:
“Come Experience the Red Bull, Discover the wings within”
The campaign should mostly use BTL marketing activities to establish a close connect with the
consumers, to educate them about the brand and to project it as a fun loving experience.
Sports Promotion: First Formula 1 race in India
India is all set to host its first ever Formula 1 race in India in the month of October, 2011. This
presents a great opportunity for Red Bull to leverage its highly successful Formula 1 team, who
are current championship holders. The inaugural Indian Grand Prix is set to break all the records
of viewership and would be receiving huge media coverage.
Red Bull can use this platform to give an everlasting experience to not only the people who
would be visiting the race circuit but also to many others. Red Bull should leverage the high
youth following of their current champion Sebastian Vettel to organize road shows and small
events in the metro & mega cities of India like Mumbai, Delhi, Bangalore & Chennai.
At the circuit they can create a Red Bull Formula 1 Zone where they can highlight the legacy of
the brand, its history and its achievements. It could be combined by providing simulators of
formula1 cars to attract more crowds.
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6. 26
• scribd.com, n.d. Red Bull: BUILDING BRAND EQUITY IN NON-TRADITIONAL WAYS.
[Online] Available at: http://www.scribd.com/doc/46876450/Red-Bull-Building-Brand-
Equity-in-Non-Traditional-Ways [Accessed 25 April 2011].
• The Hindu Business Line, 2004. Pepsi launches sports drink `Gatorade'. [Online] Available
at: http://www.thehindubusinessline.in/2004/10/20/stories/2004102001250900.htm
[Accessed 28 April 2011].
• Wooeb News, 2011. India: Food and Beverages Industry Guide - new market research
report. [Online] Available at: http://news.wooeb.com/NewsStory.aspx?id=714289 [Accessed
25 April 2011].
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7. 1
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