Red Bull marketing for the Philippine market (2007)

Résumé du document

The functional drink market in The Philippines is driven by the more active lifestyles (GMID, 2005). "A loyal group of enthusiasts remain addicted to sport, and on the other end of the functional drinks consumer group, laborers and other blue-collar workers have continued their support for energy drinks." Due to their increasing popularity, the market grew by a 13% in 2005, compared to 11% in 2004. Moreover, the market can be divided in four sub sectors, as shown below, where that of an elixir (approach taken by Red Bull) still appeared absent in recent years. In The Philippines, the attractive profitability of the market leads companies such as Anheuser-Bush, Carlsberg, Coca-Cola, Pepsi or Cadbury-Schweppes to compete with Red Bull. Large retailers like Asda (Wal-Mart) were also attracted by the market. In conclusion, the market has several characteristics that become key components in the development of a marketing Plan for Red Bull. Namely: More active lifestyles spell faster growth for functional drinks; Sports drinks shift to cheaper plastic bottles; Brand loyalty observed in energy drinks amid new product launches; Energy drinks in powder concentrate format threaten the more expensive RTDs, pulling prices down; and cheaper packaging and smaller pack sizes expected to drive growth over forecast period (GMID, 2005).

Extraits

[...] Considering these factors, the formulation is going to be kept the same. The formulation being in a net volume of 250ml: 80 mg of caffeine Taurine Glucuronolactone Vitamins Sugars Packaging It is important to note that part of Red Bull's competitor success in the sport sector was to sell the product in plastic bottle (GMID); however, Red Bull's brand image might be compromise if plastic bottles are used to sell the drink. Hereafter, while we will maintain the trademark can typically used by Red Bull, since the strong flavor and it's resemblance to medicine, has helped position it as an elixir as opposed as a thirst quenching drink. [...]

[...] University Olympics Several events will be organized in Universities; the approach will be more fun here than serious, sumo-boxing (big sumo suits), rock climbing (set up a wall), mud fighting and friendly matches will be played. As a strategy, students will also be informed of RB mental benefits in exam seasons, where RB will have stands outside of the library and classrooms Conclusion Before implementing this Marketing Mix, a through local survey and sample testing should be used to confirm the assumptions made in this paper. Also, The management implementing the mix must be savvy of the Philippine market and customers. [...]

[...] New strategy The price, as done before, is going to be 10% more than the price of a Coke can in proportion of a RB can. In order to respond to the price sensitivity and to appeal to price-conscious, the manufacturers provided smaller size of packages consumers (GMID, 2005). Therefore, the percentage in which coke can are reduced in content will be the same for RB cans. For instance if the coke can is 330 ml and reduced to 250 ml, RB can will be reduced in the same rate; from 250ml to 170ml. [...]

[...] Its performance will therefore rely, in great part; in the Marketing mix strategy and effectiveness of execution. Appendix1 Reduction of the RB can size Appendix 2 The Red Bull Cartoon References Austrade. Australian Trade Commission. Accessed May 2007. www.austrade.gov.au By staff (2005). How Red Bull puts a charge in its supply chain. May 2007. www.mmh.com By Staff (2006). Replease Exam Cosmetic Packaging. [...]

[...] For example, while Red Bull will still be distributed in the can, a sports bottle with the Red Bull logo could be given as a “souvenir” in sporting events. Special events coverage Jai Alai games (Spanish handball, traditional sport) will be covered by RB. Basketball, although it is not usually the sport sponsored by RB, it is the most popular sport in The Philippines, and should be covered. Gordon's Aeroball is a popular cardiovascular exercise in Philippines which combines basketball, volleyball and trampoline. [...]