Marketing & Distribution Red Bull Gives you wiings to fly Executive Summary Red Bull can be called

ed as a pioneer in the energy drink category worldwide. In India too, Red Bull was the brand that created the energy drink category. The brand came into existence in 1984. The brand came to India in 2003. Although the brand has been keeping a low profile compared to the Cola majors , Red Bull has created a category of energy drinks in the Indian market. According to Economic Times ( 30.05.08) the energy drink market in India is estimated to be around 100 crores. The market now has two main players Red Bull and Power Horse. RB has an assessed market share of 29% of the global market of energy Drinks. In the U.S., Red Bull enjoys a 47% share of the energy drink market, and now has a 50% share of the German energy drink market. A thorough analysis of energy drink producer Red Bull concludes that the company was set up to market just one product, Red Bull. Eventually it started marketing a variety of slightly modified energy drinks. Now Red Bull is energizing people around the globe, touching down in over a hundred countries worldwide. The Red Bull consumers can be divided into three segments: athletes, clubbers and workers. Each of these using the Red Bull energy drinks to meet their personal needs. Whether these are obtaining physical edges, mental edges or just consumption for pleasure.

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Marketing & Distribution Red Bull Gives you wiings to fly The ambition of Red Bull is maintaining the top-brand status in the energy drink market and clearly distinguishing themselves from their competition, who is marketing almost the same product against extremely low prices. Red Bull uses every means of marketing to reach their target groups. Their marketing is mainly based on the 3 pillars of Red Bull; Sampling, Advertising, Sponsoring. This means that next to normal advertisements, they drive around in Red Bull modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.

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Marketing & Distribution Red Bull Gives you wiings to fly INTRODUCTION Fundamental Definition : a usually carbonated beverage that typically contains caffeine and other ingredients (as taurine and ginseng) intended to increase the drinker's energy First Known Use of ENERGY DRINK 1904 Contractual Definition An energy drink is a type of beverage containing stimulant drugs, chiefly caffeine, which is marketed as providing mental or physical stimulation. There is a myriad of brands and varieties of energy drinks. They generally contain large amounts of caffeine and other stimulants. Many also contain sugar or other sweeteners, herbal extracts and amino acids and may or may not be carbonated. They are a subset of the larger group of energy products, which includes bars and gels.

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Marketing & Distribution Red Bull Gives you wiings to fly History Energy drinks were an active subset of the early soft drink industry, which was originally dominated by pharmacists and less scrupulous patent medicine salesmen. Coca-Cola, for instance, was originally marketed as an energy booster; its name was derived from its two active ingredients, both known stimulants: Coca leaves and kola nuts (a source of caffeine). Fresh coca leaves were replaced by "spent" ones in 1904 because of concerns over the use of cocaine in food products. In the UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding the recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost energy." One of the first energy drinks introduced in America was Dr. Enuf. Its origins date back to 1949, when a Chicago businessman named William Mark Swartz was urged by coworkers to formulate a soft drink fortified with vitamins as an alternative to sugar sodas full of empty calories. He developed an "energy booster" drink containing B vitamins, caffeine and cane sugar. After placing a notice in a trade magazine seeking a bottler, he formed a partnership with Charles Gordon of Tri-Cities Beverage to produce and distribute the soda.[1] Dr. Enuf is still being manufactured in Johnson City, TN and sold sparsely throughout the nation. In Japan, the energy drink dates at least as far back as the early 1960s, with the release of the Lipovitan. However, most such products in Japan bear little resemblance to soft drinks, and are sold instead in small brown glass medicine bottles or cans styled to resemble such containers. These "eiy dorinku" (literally, "nutritional drinks") are marketed primarily to salaryman. Bacchus-F, a South Korean drink closely modeled after Lipovitan, also appeared in the early 1960s, and targets a similar demographic. In 1985, Jolt Cola was not introduced in the United States. Its marketing strategy centered on the drink's caffeine content, billing it as a means to promote wakefulness. The initial slogan was, "All the sugar and twice the caffeine."

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Marketing & Distribution Red Bull Gives you wiings to fly

Energy drinks are sometimes sold in resealable bottles. In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage company (one that had interests outside energy drinks), but Pepsi discontinued the product in 1999. Pepsi would later return to the energy drink market with the AMP brand. In Europe, energy drinks were pioneered by the Lisa and a product named Power Horse, before the business savvy of Dietrich Mateschitz, an Austrian entrepreneur, ensured his Red Bull product became far better known, and a worldwide best seller. Mateschitz developed Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan. Red Bull is the dominant brand in the US after its introduction in 1997, with a market share of approximately 47%. In New Zealand and Australia, the current leading energy drinks product in those markets V was introduced by Frucor Beverages It is now serves over 60% of market in New Zealand and Australia]. By 2001, the US energy drink market had grown to nearly 8 million per year in retail sales. Over the next 5 years, it grew an average of over 50% per year, totaling over $3 billion in 2005.[Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce (470 ml) sized energy drinks. The energy drink market became a $5.4 billion dollar market in 2007, and both Goldman Sachs and Mintel predicted that it would hit $10 billion by 2010. Major companies such as Pepsi, Coca-Cola, Molson, and Labatt have tried to match smaller companies' innovative and different approach, with marginal success. -5-

Marketing & Distribution Red Bull Gives you wiings to fly Energy drinks are typically attractive to young people. Approximately 66% percent of its drinkers are between the ages of 13 and 35 years old, with males being approximately 65% of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical Society's Institute for Good Medicine found that: 20% of respondents ages 2130 had used energy drinks in high school or college to stay awake longer to study or write a paper; 70% of respondents knew someone who had used an energy drink to stay awake longer to study or work.[6] Energy drinks are also popular as drink mixers. UK supermarkets have launched their own brands of energy drinks at lower prices than the major soft drink manufacturers. These are mostly produced by Canadian beverage maker Cott. Tesco supermarkets sell 'Kx"'(used to be known as 'Kick') in 250 mL cans and 1 L bottles, Sainsbury's sell 'Blue Bolt' in similar packaging, Asda sell 'Blue Charge' in similar packaging and Morrison's sell 'Source' in 250 mL cans. Cott sells a variety of other branded energy drinks to independent retailers in various containers. Since 2002, there has been a growing trend for packaging energy drink in bigger can. Since in many countries, including the US and Canada, there is a limitation on the maximum caffeine per serving in energy drinks, this allows manufacturers to include a greater amount of caffeine by including multiple servings per container. Popular brands such as Red Bull, Hype Energy Drinks and Monster have increased the amount of ounces per can. (For example, when Red Bull first came on the U.S. market, it was primarily in 250 mL (8.4 oz.) cans; it now sells cans as big as 600 mL (20 oz.), and Monster now sells a can as big as 32 oz. (946 mL).) Most energy drinks in the United States, with a few exceptions, primarily sell their drinks in 16 oz. (473 mL) cans, a trend provoked in part by companies such as Rockstar Energy promoting the 16-ounce cans over Red Bull's smaller ones in the mid-2000s. Conversely, the emergence of energy shots has gone the opposite way with much smaller packaging. In 2007, energy drink powders and effervescent tablets were introduced, in the form of a tablet or powder that can be added to water to create an energy drink. These can offer a more portable option to cans and shots. As of 2009, the industry has moved towards the use of natural stimulants and reduced sugar.

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Marketing & Distribution Red Bull Gives you wiings to fly On August 14, 2012, the word "energy drink" was listed for the first time in the mainstream Merriam-Webster's Collegiate Dictionary.

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Marketing & Distribution Red Bull Gives you wiings to fly

Ingredients Energy drinks generally contain methylxanthines (including caffeine), B vitamins, and herbs. Other commonly used ingredients are carbonated water, guarana, yerba mate, aa, and taurine, plus various forms of ginseng, maltodextrin, inositol, carnitine, creatine, glucuronolactone, and ginkgo biloba. Some contain high levels of sugar, and many brands offer artificially sweetened 'diet' versions. A common ingredient in most energy drinks is caffeine (often in the form of guarana or yerba mate). Caffeine is the stimulant that is found in coffee and tea. There is little or no evidence that any of the ingredients found in energy drinks other than caffeine or sugar have a significant physiological effect. Energy drinks contain about three times the amount of caffeine as cola. Twelve ounces of Coca-Cola Classic contains 35 mg of caffeine, whereas a Monster Energy Drink contains 120 mg of caffeine.

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Marketing & Distribution Red Bull Gives you wiings to fly

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Marketing & Distribution Red Bull Gives you wiings to fly Effects Energy drinks have the effects caffeine and sugar provide, but there is little or no evidence that the wide variety of other ingredients have any effect. However, a variety of physiological and psychological effects have been attributed to energy drinks and their ingredients. Two studies reported significant improvements in mental and cognitive performances as well as increased subjective alertness. Excess consumption of energy drinks may induce mild to moderate euphoria primarily caused by stimulant properties of caffeine and may also induce agitation, anxiety, irritability and insomnia. During repeated cycling tests in young healthy adults an energy drink significantly increased upper body muscle endurance. It has been suggested that reversal of caffeine withdrawal is a major component of the effects of caffeine on mood and performance. Restorative properties were shown by a combination of caffeine and the sugar glucose in an energy drink, and some degree of synergy between the cognition-modulating effects of glucose and caffeine was also suggested. In one experiment, a glucose-based energy drink (containing caffeine, taurine and glucuronolactone) was given to eleven tired participants being tested in a driving simulator. Lane drifting and reaction times were measured for two hours post-treatment and showed significant improvement. Two articles concluded that the improved information processing and other effects could not be explained in terms of the restoration of plasma caffeine levels to normal following caffeine withdrawal. Consumption of a single energy drink will not lead to excessive caffeine intake, but consumption of two or more drinks in a single day can. Other stimulants such as ginseng are often added to energy drinks and may enhance the effects of caffeine, and ingredients such as guarana themselves contain caffeine. Adverse effects associated with caffeine consumption in amounts greater than 400 mg include nervousness, irritability, sleeplessness, increased urination, abnormal heart rhythms (arrhythmia), and dyspepsia. Consumption also has been known to cause pupil dilation when taken with certain antidepressants or SSRIs. Most mainstream energy drinks do not provide electrolytes, and have a higher likelihood of an energy "crash-and-burn" effect. Caffeine in energy drinks can cause the excretion of water from the body to dilute high concentrations of

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Marketing & Distribution Red Bull Gives you wiings to fly sugar entering the blood stream, leading to dehydration. If the body is dehydrated by 1%, performance is decreased by up to 10%. In the US, energy drinks have been linked with reports of nausea, abnormal heart rhythms and emergency room visits. The drinks may cause seizures due to the "crash" following the energy high that occurs after consumption. Caffeine dosage is not required to be on the product label for food in the United States, unlike drugs, but some advocates are urging the FDA to change this practice.

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Marketing & Distribution Red Bull Gives you wiings to fly

Effects of caffeine In November 2010, the University of Texas Medical School at Houston reported that energy drinks contain more caffeine than a strong cup of coffee, and that the caffeine combined with other ingredients (sometimes not reported correctly on labels) such as guarana, taurine, other herbs, vitamins and minerals may interact. Energy drinks consumed with alcohol may affect heart rates, blood pressure and even mental states. The caffeine content of energy drinks range from 80300 mg per 16-oz serving whereas a 16oz cup of coffee can contain 70200 mg. Health experts say caffeine prevents sleepiness and delays the feeling of drunkenness normally experienced when drinking alcohol, causing some people to continue drinking after they normally would have stopped. Caffeine is a very mild diuretic in comparison with alcohol, but some experts believe that mixing energy drinks with alcohol can cause greater dehydration than alcohol alone. Health concerns and sales restrictions

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Marketing & Distribution Red Bull Gives you wiings to fly

A health warning on a can of Power Horse energy drink: "Consumption of more than two cans in a day may be harmful to your health. Not to be used for pregnant women, breast feeders, children under the age of 16, people with heart disease, high blood pressure, diabetes, allergy to caffeine, and athletes during exercise." The energy drink Red Bull did not get market approval in France after the death of an 18year-old Irish athlete, Ross Cooney, who died within hours after playing a basketball game and consuming four cans of the product. This market approval was challenged in the European Court of Justice in 2004, and consequently lifted. Norway did not allow Red Bull for a while, although this has recently been revoked. The United Kingdom investigated the drink, but only issued a warning against its consumption by children and pregnant women. In November 2012, President Ramzan Kadyrov of Chechnya (Russian Federation) ordered his government to develop a bill banning the sale of energy drinks, arguing that as a form of "intoxicating drug", such drinks were "unacceptable in a Muslim society". Kadyrov cited reports of one death and 530 hospital admissions in 2012 due to "poisoning" from the consumption of such drinks. A similar view was expressed by Gennady Onishchenko, Chief Sanitary Inspector of Russia. In 2009, a school in Hove, England requested that local shops refrain from selling energy drinks to students. Headteacher Malvina Sanders added that "This was a preventative measure, as all research shows that consuming high-energy drinks can have a detrimental impact on the ability of young people to concentrate in class." The school negotiated for their local branch of the Tesco supermarket to display posters asking students not to purchase the products. Similar measures were taken by a school in Oxted, England, which banned students from consuming drinks and sent letters to parents. Some countries have certain restrictions on the sale and/or manufacture of energy drinks for example; in Australia and New Zealand, energy drinks are regulated under the Australia New Zealand Food Standards Code; limiting the caffeine content of 'formulated caffeinated beverages' (energy drinks) at 320 mg/L (9.46 mg/oz) and soft-drinks at 145 mg/L (4.29 mg/oz). Mandatory caffeine labeling is issued for all food products containing

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Marketing & Distribution Red Bull Gives you wiings to fly guarana. On June 7, 2012, the parliament of Latvia approved changes in the legislation of sale of consumable goods, to prohibit sale of energy drinks to persons under the age of 18.

Branding : Red Bull 25 YEARS AND COUNTING Dive into some interesting information about the company and the journey Red Bull had throughout the last 25 years. History Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in more than 165 countries and more than 35 billion cans of Red Bull have been consumed so far. 8,966Employees As of the end of 2012, Red Bull employed 8,966 people in 165 countries - Compared to the end of 2011 when we had 8,294 employees in 164 countries. In 165Countries around the world In terms of further expansion, Red Bull is targeting the core markets of Western Europe and the USA and the growth markets of Brazil, Japan, India and South Korea, while also

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Marketing & Distribution Red Bull Gives you wiings to fly focusing on the worldwide roll-out of the Red Bull Editions. Growth and investment will as is customary at Red Bull continue to be financed from the operating cash flow.

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Marketing & Distribution Red Bull Gives you wiings to fly Red Bull Red Bull Energy Drink is a functional beverage providing various benefits, especially in times of increased performance:

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Marketing & Distribution Red Bull Gives you wiings to fly Swot analysis Strengths: According to Economic Times ( 30.05.08) the energy drink market in India is estimated to be around 100 crores. The market now has two main players Red Bull and Power Horse. RB has an assessed market share of 29% of the global market of energy Drinks. In the U.S., Red Bull enjoys a 47% share of the energy drink market, and now has a 50% share of the German energy drink market. Weaknesses: Above-average prices. Lack of innovation- there are a lot of competitors in the market and they have their own USP which leaves Red Bull behind. Reliant on small product base- The company only markets one branded product, Red Bull Energy Drink (along with a sugar free variety). Inexperience: is only 6 years old in India. Lack of patent on RB s recipe means anyone can copy it.

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Marketing & Distribution Red Bull Gives you wiings to fly Opportunities: Extension of product line- this will help to retain market share. Hardcore Advertising and Promotions. Consumer recognition through sponsorship of sports events. New ventures like partnership with Facebook.

Threats: Health concerns- tougher rules from government on high caffeine content. Consumer awareness of health and well being- people may start to drink other alternatives as it is associated with healthier life style. Drinks might not be accepted in the new markets. Organic energy drinks might steal RBs market share.

Promotion Analysis Competitive Analysis Opportunity Analysis Target Market Analysis Customer Analysis Market Segmentation Strategy

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Marketing & Distribution Red Bull Gives you wiings to fly Competitive Analysis

Target Market Analysis Core target market segments for RB consists of the core age group of 15 to 60. Energy drinks with high sugar levels are more popular among children and women, while energy drinks with strong taste and flavor are more preferred by male consumers. Customer Analysis Young people are especially open to determined exhaustion and insufficient energy. More specifically male teenagers & people in their 20s, are also most likely to believe in the authenticity of the energy drinks. As a result, the majority of energy drinks are developed for and advertised to this younger generation. Recent studies also indicated that 65% of the energy drinks market consists of male consumers.

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Marketing & Distribution Red Bull Gives you wiings to fly Appeal to very specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd. Market Segmentation Strategy RedBull avoided usual methods of marketing, relying more on what is called 'buzz marketing' or word-of-mouth. Red Bull advertised directly to Generation Y, the so-called 'millennial': people born after 1981. Student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed. Marketing Red Bull Dietrich Mateschitz founded Red Bull in 1984 after discovering the widespread popularity of tonic drinks in the Far East. He developed the Red Bull Energy Drink, launching the product on the Austrian market in 1987. Since then, Red Bull has launched a range of products, including Red Bull Cola in 2008 and Red Bull Energy Shots in 2009. Today Red Bull has annual sales of around 4 billion cans in 160 countries. Red Bull has a distinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. This approach allows Red Bull to engage with consumers using new and exciting channels of communication. In recent years social media has become a vital marketing tool for many organisations. Its increasing popularity, predominantly with young audiences, has had a huge impact on modern marketing techniques. Digital and social media campaigns are integral to Red Bulls marketing strategy. The role of the marketing function To meet the needs of its customers, every organisation seeks a distinctive marketing mix. This is often referred to as the 4Ps. It involves focusing on: product the specific features and benefits of the product place where and how the product is sold price setting the right price in each market promotion using the most suitable form of promotion to reach customers. For example, the marketing mix for Red Bull Energy Drink is based around: a distinctive product - the taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks it is easy to obtain as it is sold in a variety of places including retail outlets and food and drink establishments Red Bull uses a premium pricing strategy. The product is priced above that of competitors products. Consumers will pay a premium for Red Bull due to the quality of the product and the products benefits. This is reflected in the fact that it is the worlds

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Marketing & Distribution Red Bull Gives you wiings to fly best-selling energy drink. However, perhaps the most interesting element of Red Bulls marketing mix is its approach to promotion. Red Bull embraces innovation within its promotional activities and as such is able to create a lasting impression on consumers. The concept behind its promotional activity is to give people Wiiings. This translates as pushing the boundaries of what is possible and nurturing people's talent so they can achieve their goals and dreams. The aim of the promotion element of the marketing mix is to grow the business and increase market share. Businesses develop a promotional strategy in order to encourage customers to purchase their products. Many base their approach on AIDA principles. AIDA is an acronym that is shorthand for the stages in a sales process.

Reasons for popularity of Red Bull

Helps to improve CONCENTRATION Next to B-complex vitamins, taurine and sucrose & glucose, Red Bull Energy Drink contains caffeine (80mg per 250ml can). It was scientifically proven that caffeine helps to improve concentration. This has also been concluded by the European Food Safety Authority in their scientific opinion: See EFSA Journal (2011): No. 2054

Helps to increase ALERTNESS Red Bull Energy Drink contains caffeine, taurine, B-complex vitamins, sucrose & glucose. Scientific evidence proves that caffeine (80mg per 250ml can) helps to increase alertness. This was also confirmed by the European Food Safety Authority in their scientific opinion: See EFSA Journal (2011): No. 2054

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Marketing & Distribution Red Bull Gives you wiings to fly

Contributes to normal MENTAL PERFORMANCE Next to caffeine, taurine, sucrose & glucose, Red Bull Energy Drink contains B-complex vitamins (vitamin B3 (Niacin), vitamin B5 (Pantothenic acid), vitamin B6, vitamin B12). It was scientifically proven that vitamin B5 (Pantothenic acid) contributes to normal mental performance. This has also been concluded by the European Food Safety Authority in their scientific opinion: See EFSA Journal (2009): No. 1218.

Contributes to the REDUCTION OF TIREDNESS AND FATIGUE It was scientifically substantiated that the B-Complex vitamins (Vitamin B3 (Niacin), Vitamin B5 (Pantothenic acid), Vitamin B6, Vitamin B12), contained in Red Bull Energy Drink, contribute to the reduction of tiredness and fatigue. This was also confirmed by the European Food Safety Authority in their scientific opinion Red Bull is a great drink to give you that 'bit' of energy or edge which can be really handy just before training or competition. Red Bull gives you wings." Red Bull1. The Product/ Competitors/Industry1. 1 ProductRed Bull is a sweet, caffeinated drink aimed to give consumers the high energy kick.Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only twoflavours (original or sugar-free). It contains caffeine, taurine, glucuronolactone, and Bvitamins. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull has become the worlds leading energy drink, a staple in many young, and active peoples lives.1 . 2 C o m p e t i t o r s Big global companies such as Coca Cola and Pepsi have introduced their own energy drink versions to their product base. Mother (by Coca Cola), Amp (Pepsi), V, Battery, 180, RedEyeand Bennu being just some in the evergrowing energy drink market.Competition also presents itself in original sports drinks, such as Gatorade (Pepsi) andPowerade(Coca Cola). Furthermore, premixed alcoholic drinks like the Smirnoff range form part of the competition.1 .

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Marketing & Distribution Red Bull Gives you wiings to fly 3 I n d u s t r y Red Bull has becoming hugely successful and operates within the global soft drink marketplace. Within the soft drink industry its niche is the energy drink market, of whichMateschitz was largely responsible for creating. Red Bull currently is the leading energy drink across the entire globe. It holds 70% of the market worldwide (Gschwandtner, 2004). Oncethe drink was passed by health ministries, Red Bull entered the Austrian market, soonthereafter then moved into Germany, United Kingdom and the USA by 1997. N e e d s , W a n t s a n d D e m a n d s s a t i s f i e d b y Red Bull 2.1NeedsThere are three basic human needs that Red Bull satisfies, physical, social and individualneeds. Human needs are states of felt deprivation marketers do not invent these needs; theyare a basic part of human makeupPeople in industrial societies might try to find or developobjects that will satisfy their needs. Firstly, a physical need is when tired drivers are feeling the need to fall asleep due to fatigue;and this can compromise their safety. A driver needs to stay awake and alert when driving toavert danger and this need is satisfied by Red Bull. In fact it has become a hot item amongsttired drivers stopping at gas stations. (Gscwandtner 2004).A social need for example is where humans have a social need for belonging (Kotler. 2004)and this need is satisfied by belonging to a group. A group could be people with the sameinterests eg extreme sports. Red Bull associates itself with energy, danger and youth culture,and markets its product through its sponsorship of youth culture and extreme sports events.Consumers who drink Red Bull are automatically introduced to the Red Bull culture, andtheir social need is then satisfied.The final need is individual. An individual may have a need for concentration or self-expression and this could be inhibited by fatigue or weariness. Red Bull realised that it couldsatisfy this need by energising and stimulating the mind (Red Bull 2008). For example, if they are fatigued, a university student may experience an inability to retain knowledge andtherefore show an inability to express themselves. 2 . 2 W a n t s A want can be defined as the form taken by human needs as they are shaped by culture andindividual personality (Kotler et al. 2006)Extreme athletes want to accelerate their performance and to revive themselves quickly after each event and this want is satisfied by Red Bull. Red Bull promotes its

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Marketing & Distribution Red Bull Gives you wiings to fly consumption toincrease physical endurance, improve concentration and reaction speed, improve vigilanceand stimulate metabolism. (Red Bull, 2008). 2 . 3 D e m a n d s Demands are human wants backed up by buying power and given their resources, peopledemand products with benefits that add up to the most satisfaction. (Kotler et al. 2006).Another way of putting it is that demand for a productis both a willingness and an abilityto pay for the product that will satisfy a particular want. (McColl et al. 1998)Red Bull is arguably one of the most expensive soft drinks on the market, a can of Cokegenerally costs around $2.50 for 375ml whereas a smaller 250ml can of Red Bull is sold at$3.75. Consumers are willing to pay the higher price for Red Bull because it satisfies their needs and wants, it also delivers on its promise to Vitalize Body and Mind. So regardless of size of the can or price, consumers are willing to pay for Red Bulls product.3 . T h e M a r k e t i n g M a n a g e m e n t P h i l o s o p h y In our opinion, Red Bull fits into three of the marketing management philosophies.When it first entered the market it could be viewed in the selling concept phase. Founder Dietrich Mateschitz even stated. If we dont create the market, it doesnt exist.(Gschwandtner 2004). Mateschitz used buzz marketing to promote the product by givingconsumers free samples.Once Red Bull established itself it then moved into the product concept philosophy. Itseems that many consumers buy the Red Bull product wholly based on what benefits it cangive them, i.e. increased wellbeing and energy. Red Bull cans are branded with the taglineVitalises body and mind and it is well known by consumers that drinking Red Bull canalleviate tiredness.The final philosophy the product fits into is the marketing concept. This is where anorganisation delivers target market satisfactions more effectively and efficiently thancompetitors. (Kotler et al. 2006). This can be done by researching its target audience and thecompany has shown this by the fact that Red Bull has a 70 to 90 percent market share in over 100 countries worldwide. (Gschwandtner 2004). This clearly indicates that Red Bullscurrent marketing strategy is working well and they are ahead of their competitors in themarket place.4. The Marketing Challenges.

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Marketing & Distribution Red Bull Gives you wiings to fly 4 . 1 C o m p e t i t i o n This is probably one of the biggest threats to Red Bull to date. Major competitors suchas Coca Cola and Pepsi are continually seeking to regain market share off Red Bull. CocaCola and Pepsi have launched their own energy drink versions to compete directly with RedBulls product, yet with no real impact on the market, examples of this are Think V EnergyDrink and Cokes version Mother. 4 . 2 N e g a t i v e P u b l i c i t y Various media worldwide have reported

that Red Bull is harmful for ones health. TheFrench Health Authority has gone one step further by not approving the Red Bull product for sale in France believing it is not in compliance with the countrys health and food regulations.Other media reports have been targeted towards parents stating the caffeine levels in Red Bullcan be dangerous if consumed by children/teenagers, which coincidentally is exactly who is inthe product target market.Red Bull has gone to the extremes of seeking scientific proof that its product is safefor consumption and released numerous statements to curb the negative media attention andreiterate that their product is safe for consumption by all (Red Bull, 2008). 4 . 3 I n a b i l i t y t o m o v e f o r w a r d w i t h t h e p r o d u c t Red Bull is well known for its innovative advertising however the product could be indanger of becoming stale. By shunning conventional advertising methods and opting for online advertising and Generation Y cartoon adverts, the aim of attracting 15 30 year olds isworking, but for how long? Combine this with their large investment in extreme sport eventsie Red Bull Air Race and athlete sponsorship, it has to be asked what do they do next? Has italready been done? 4.4Ability to gain new customers and retain current customer l o y a l t y With Red Bulls target market currently aimed at the Generation Ys (15 30 year olds) there is the question of whether this generation will continue to drink Red Bull as theygrow older. And will the next upcoming generation accept this product as their own.

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Marketing & Distribution Red Bull Gives you wiings to fly 4.5Health and Social I m p l i c a t i o n s Due to growing pressure

on organisations in society, Red Bull now promotes their product with current societal and health issues in mind. Childhood obesity and type 2-onsetdiabetes has become a major issue across western developed nations. By introducing sugar free Red Bull this has opened up a new opportunity to the health conscious and diabetics.Managing this issue will be a constant process and Red Bull must be seen to be adjusting their product to suit society. 4 .6O nly h av ing on e p r o d u c t One particular issue Red Bull has to

consider is their limited product range. Unliketheir major competitors such as Coca Cola and Pepsi, who have various different products indifferent beverage classes (water, soft drinks, electrolytes) Red Bull does not. Only havingone product can be a positive however, for example Red Bull can concentrate 100% effort ontheir product while not being distracted by other influences, however the downside is thatshould the market share of that product decrease in the future, Red Bull has no back up product to cover the loss. 5.Being customer orientated/market driven 5 . 1 T h e C o n s u m e r Customers are more sophisticated and

educated in the market place today; they cannow research products before making a purchase. For example there are specialist magazinesto assist in the decision on (the) brandbut more likely (consumers) turn to the internet for information on what might be described as a complex product (Kotler et al. 1998). Another reason could be that competitors are more innovative than ever with advertising andmarketing campaigns. Kevin Rudd for example achieved this when he used the MySpacewebsite as a medium to mount his prime ministerial marketing campaign. 5 . 2 P o i n t o f D i f f e r e n c e Further to this notion marketing

organizations need to create a point of difference(POD) in the market place. In such a saturated market consumers look for a POD, whenopening a coffee shop a businessperson would find themselves up against competition. Sohow do they

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Marketing & Distribution Red Bull Gives you wiings to fly differentiate themselves from another caf? How can they become top of mindto their target market?Gloria Jeans Coffee is a good example, when they entered the market they providednot only a service but also an experience. They designed their coffee shops like lounge rooms,with big couches to create a homely feel. They also offered wireless internet (WiFi) servicesto attract the businessmen and women who wanted to work online while having a coffee. 5 . 3 C o m p e t i t i o n Competition is becoming more intense in any industry. For example supermarketgiants like Coles and Woolworths are flooding their stores with self-branded products, whichis often pushing independent brands off the supermarket shelf and driving small businessesout of the market. These giants have bulk buying power which means they have the ability to pass savings to their customers. Self-branded products are marginalising the smaller independent brands. 6 . C o n c l u s i o n

Red Bull is a highly successful company responsible for 70% of sales in the energy drink market to date. Their product is well known by consumers to vitalize body and mind and isgenerally purchased by most for this purpose. Red Bull have strong competitors who are constantly trying to gain market share off Red Bull,however, it is evident that Red Bulls current marketing philosophies are working in keepingthem a market leader. Red Bull is aware of their marketing challenges and they are constantlyadjusting and developing their marketing approach to overcome or even avoid futureconcerns VARIOUS LAWS APPLICABLE As of 2013 in the United States some energy drinks, including Monster Energy and Rockstar Energy, were reported to be rebranding their products as beverages rather than as dietary supplements. As beverages they would be relieved of F.D.A. reporting

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Marketing & Distribution Red Bull Gives you wiings to fly requirements with respect to deaths and injuries and can be purchased with food stamps, but must list ingredients on the can. FOOD IMPORTS AND EXPORTS 329 14 Compliance with food import and export regulations Key points Fees for importing food into Australia are higher than those faced by New Zealand importers. Despite charging for import clearance for food safety on an hourly basis, the time taken for the process is not monitored or recorded in either country. A lack of consistency in the interpretation of food safety regulations across Australian jurisdictions increases the costs to businesses in ascertaining import requirements and managing imported product recalls. Application of food safety requirements throughout the production chain for domestic businesses, but not for imported businesses, may unduly raise the opportunity costs of domestic businesses (unless similar requirements are made in the importers home country) and has contributed to some products that are not approved for production nevertheless being imported. Charges faced by Australian exporters of food, with the exception of meat exporters, are generally higher than those for similar activities in New Zealand, even with the benefit of a 40 per cent Australian government rebate. The costs to business of AQIS services are higher than some comparable domestic services provided by other agencies. Duplication in export and domestic regulation puts an undue compliance burden on some Australian primary product exporters, while the integrated regulatory structure in New Zealand means this is less of an issue there. Both countries some times impose stricter requirements than necessary on exports going to countries with less demanding requirements than their own. The extent to which multiple and overlapping audits impose additional costs on businesses varies more between industries than jurisdictions.

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Marketing & Distribution Red Bull Gives you wiings to fly All Australian jurisdictions have memoranda of understanding between regulators to facilitate the recognition of audits and reduce business compliance costs. In both Australia and New Zealand, meat exporters incur greater costs and more regulatory intervention than other businesses. In Australia, about $80 million per year, or 80 per cent of export certification costs, relate to red meat. Businesses in both Australia and New Zealand noted areas in which a lack of skills or knowledge in regulator staff result in additional regulation compliance costs. Compared with New Zealand, Australias regulatory system for exports relies lesson electronic processing to reduce business compliance costs and is less able to embrace improvements in the domestic food safety system associated with shifts toward outcome based standards.

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Marketing & Distribution Red Bull Gives you wiings to fly Employees of Red Bull Board of Directors Ahmad Bin Byat Chairman

Ahmad Bin Byat is considered one of the most well known corporate leaders in Dubai, providing leadership and strategic direction to several key economic initiatives that drive forward Dubais knowledge-based economy. As an integral member of high level executive teams, his decisions have had a strong impact on the economic growth of the Emirate of Dubai. As the CEO of Dubai Holding, Bin Byat occupies several high-ranking directorial positions in Dubai including Director General of the Dubai Technology and Media Free Zone Authority, Executive Chairman of TECOM Investments, Executive Chairman of du - the Emirates Integrated Telecommunications Company, and member of the Board of Trustees for Dubai School of Government. He has also previously held a number of prestigious positions including Secretary General of the Executive Council of Dubai Government, President of Dubai Government Excellence Programme, Executive Chairman of the Dubai Real Estate Corporation, a member of the Board of Trustees for Zayed University and Director General of the Dubai Education Council. A high achieving professional, Bin Byat has left an indelible mark on positions that he has held, including key managerial positions with Etisalat.

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Marketing & Distribution Red Bull Gives you wiings to fly

His educational background, leadership qualities and technology skills have made him a highly resourceful and inspiring corporate leader. His charisma and motivational skills have helped him build high-performing teams, create partnerships, and nurture long-term relationships.

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Marketing & Distribution Red Bull Gives you wiings to fly Younis Al Khoori Vice Chairman

Younis Al Khoori is the Undersecretary at the Ministry of Finance and is also on the Board of Directors for UAE Central Bank, and Vice Chairman of Emirates General Petroleum Corporation (EMARAT). Jassem Mohamed Al Zaabi Board Member

Jassem Mohamed Al Zaabi is the Executive Director of the Information and Communications Technology (ICT) Unit of Mubadala. Jassem is the CEO of Yahsat, an Abu Dhabi based satellite communications company and is Chairman of Injazat Data Systems. He serves on the Board of Directors of Emerging Markets Telecommunication Services Limited, Advanced Technology Investment Company (ATIC), Abu Dhabi Ports Company (ADPC) and Emirates Nuclear Energy Corporation.

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Marketing & Distribution Red Bull Gives you wiings to fly Waleed Al Muhairi Board Member

Waleed Ahmed Al Mokarrab Al Muhairi is the Chief Operating Officer of Mubadala Development Company. He also serves as Chairman of the Board of Directors of Yahsat, Mubadala Infrastructure Partners, Advanced Technology Investment Company (ATIC) and Cleveland Clinic Abu Dhabi. He is Vice Chairman of Tabreed and a Director of AMD, Piaggio Aero Industries and Abu Dhabi Future Energy Company (Masdar). Fadhel Al Ali Board Member

Fadhel Al Ali is the Executive Chairman of Dubai Holding Operations, and manages the Dubai Holding Corporate Office as well. In addition to being on the Executive Committee of Dubai Holding and several of its entities including Jumeirah Group. He is also on the Board of Dubai Financial Services Authority, Emaar Properties PJSC and Marfin Popular Bank.

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Marketing & Distribution Red Bull Gives you wiings to fly Abdlhamid Saeed Board Member

Abdulhamid Saeed is the Managing Director and Board Member of First Gulf Bank. He is also the Chairman of Aseel Islamic Finance, Vice Chairman of First Gulf Libyan Bank and Managing Director of Reem Investments. Abdulhamid also plays a major role in Government bodies as a member of the Economic Committee of The Higher National Security Council, a Board and Executive Committee Member of the Abu Dhabi Securities Exchange, and Emirates Investment Authority. He is the Managing Director and Board Member of First Gulf Bank, Vice Chairman of First Gulf Libyan Bank, Chairman of First Gulf Financial Services, Chairman of Aseel Finance, and Managing Director of Reem Investment Ziad Galadari Board Member

Ziad Abdulla Galadari is the Founder and Principal of Galadari & Associates and has been practicing as Advocate, Legal Advisor and Arbitrator since 1983. He is the Chairman of Galadari Investments LLC. and a member of the Board of Directors of Dubai World Trade Centre and DANA Gas.

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Marketing & Distribution Red Bull Gives you wiings to fly Abdulla Al Shamsi Board Member

Abdulla Hamad Rahma Al Shamsi is currently the General Manager of United Arab Shipping Agencies Co. (Emirates). He is also the Vice President of Dubai Shipping Agents Association. Al Shamsi is the Chairman of Dubai Properties Group and the Chairman of Middle East Container Repair Co. (LLC). Saeed Rashed Al Yateem Board Member

Saeed Rashed Al Yateem is Assistant Undersecretary of Budget and Revenues Affairs at the Ministry of Finance. He supervises UAE Federal Government Budgeting process and performance and UAE Federal government Public Revenues.

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Marketing & Distribution Red Bull Gives you wiings to fly Mohamed Al Suwaidi Board Member

Mohamed Al Suwaidi is the Executive Director of Asset Management at Emirates Investment Authority. Prior to that, Mr. Al Suwaidi has worked for Abu Dhabi Investment Authority as the Executive Director of the Treasury Department for ten years. Mohamed also has significant experience serving as a Board Member for several UAE organizations. He is currently a board member of Zayed Higher Organization for Humanitarian Care & Special needs since 2005

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Marketing & Distribution Red Bull Gives you wiings to fly VISION

Vision Statement: People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

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Marketing & Distribution Red Bull Gives you wiings to fly

Mission Statement Our mission is to be the premier marketer and supplier of RedBull in Asia, Europe and other parts of the globe. We will achieve this mission by building long-term relationships with the people who can make it become a reality.

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Marketing & Distribution Red Bull Gives you wiings to fly STRATEGY

Great Strategy Begins with Great Research. Once the brands core values have been identified, the road towards effective brand proposition development begins. Development of the brand statement- commencing a Brand development strategy.

Red Bull - Digital Media Advertising Campaign Re-energizing consumers at both ends of the day The Energy Shots variant are located near Customer face Display Units (CDUs) at the till point, in direct proximity to the digital signage screen, and in the ideal location for advertising to prompt immediate consideration and purchase. Background Red Bull used the Forecourt network for the launch of its Red Bull Energy Shots variant in February 2010. Since then Red Bull has utilised the Forecourt network to its full extent by running tactical advertising campaigns at specifically selected time to reach their core target audience. Campaign details The Red Bull advertising campaign first ran in November 2009 across the Forecourt network, then in February 2010, April 2010, August 2010 and again in March 2011. Digital out of homes flexibility enabled Red Bull to advertise on the forecourt convenience network at the most relevant times of day first thing in the morning, between 6am and 10am, for a wake-up energy boost; and early evening, between 4pm - 39 -

Marketing & Distribution Red Bull Gives you wiings to fly and 8pm, when consumers are looking for a quick lift to keep them going throughout the evening. We worked with Red Bull to animate the first Red Bull Energy Shots static creative, which was linked inextricably with the forecourt environment. It featured the unmistakable Red Bull animated cow driving a car, and ended on a still of car keys and an Energy Shots carton. Red bull continued to engage with a motoring audience, using their creative to make an explicit link between a motoring audience and an ideal drink choice for boosting energy whilst on the move. Results EPOS analysis was ran for one of the Red Bull campaigns which showed a 20% sales uplift. This was particularly impressive given that at the same time a price promotion was running on the 250ml Red Bull Energy cans so we might have expected less of an uplift.

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Marketing & Distribution Red Bull Gives you wiings to fly

Brand Positioning Strategy Clear, Engaging, Unique, & Relevant to the target audience. Able to incorporate an element of positive emotional attachment that is better than just "good. Echoed within business, internally and externally. Consistent across multiple marketing & advertising mediums (print, online presence, etc). Continually toughened within the organization so that employees consistently deliver what is promised. Able to adapt to a changing marketplace.

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Marketing & Distribution Red Bull Gives you wiings to fly

Distribution Strategy Intensive distribution aims to provide saturation coverage of the market by using all available outlets such as: Super markets, Gyms, Coffee Houses: Subway, Barista, Costa Coffee, Caf Coffee Day In n Out Convenience Stores. Pizza Outlets.

Objectives: RedBulls objective is: Sales Promotions. Create new target markets. Large display in the Departmental stores. Bull Hoof stickers on the floors of departmental stores promoting RB.

Prmotions via net Promotions through social networking sites such as: facebook, twitter, Hi5. Also, Ad promos on websites such as NDTV, zoom India.

Estimated Budget for Red bull Prmotions via consumers Red Bull sponsors the motorsports or fun sports, but always where Red Bull is needed. Red Bull does event sponsoring.

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Marketing & Distribution Red Bull Gives you wiings to fly Event sponsoring attracts peoples attention towards the product and connects them. Advertising: Red Bull has an aggressive marketing campaign. Red Bull uses all the available media channels, meaning cinema, TV, radio, press and the internet. In other words the company focuses on the media through which it reaches its primary target market-young people. RB allows the consumers to interpret the product & the moments of use themselves. Red Bull achieves this by a humorous and witty cartoon campaign, transferring the message that this energy drink helps you to escape by `giving you wings . Personal Selling: Sampling is another very important part of the three pillar marketing system. As the major purpose of Red Bull is to energize the company samples at the right place at the right time, where it finds its exact target market. Examples of usage are driving, studying, working night shifts and sports.

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Marketing & Distribution Red Bull Gives you wiings to fly Evaluation and Control Metrices of Promotional strategies: Campai gn Element News Media Metrics No. of viewers of the articles

Social Media No. of people using the Blogs such as Twitter, Facebook Internet & TV No. of people viewing particularly when the Ad is being aired. Print No. Of Subscribers of those magazines, Newspapers

Advertisement Product No. of comments (+ or - ) mentioned on social networking sites. Placement Budget: Magazine: TV: 5 lacs * 4 weeks * 12 - 2400000 Total Expense: 31,80,000 Femina, People, Rolling Stones. 15k per page * 12 mnths- 180,000 HT City & Delhi Times 1lac per page * 4 weeks * 12 mnths- 4800000 Radio:

Newspapers:

10k per mnth * 12 120000

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Marketing & Distribution Red Bull Gives you wiings to fly

TABLE No.1 TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE AGE NO. OF RESPONDENTS - 45 PERCENTAGE

Marketing & Distribution Red Bull Gives you wiings to fly 20-24 25-29 30-34 Above 35 TOTAL 30 19 14 12 75 45% 26% 18% 11% 100%

Analysis From the above table it is clear that 45% of the respondents are aged between 20 and 24, 26% between 25 and 29, 18% between 30 and 34 and only 11% aged above 35 years. Interpretation It is revealed that majority of respondents are between 20 and 29 years. From this we can conclude younger generation and middle age are more interested in Red Bull because it is thrilling and inclined towards the product.

GRAPH No.1 GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE - 46 -

Marketing & Distribution Red Bull Gives you wiings to fly

TABLE No.2 TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER GENDER NO. OF RESPONDENTS PERCENTAGE

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Marketing & Distribution Red Bull Gives you wiings to fly MALE FEMALE TOTAL 49 26 75 65% 35% 100%

Analysis From the above table it is clear that 49% of respondents were male and female respondents constituted just 26% of total responses. Interpretation It is clear that most of the users of Red Bull are males mostly because men are addicts to it.

GRAPH No.2 GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

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Marketing & Distribution Red Bull Gives you wiings to fly

TABLE No.3 TABLE SHOWING-THE OCCUPATION OF RESPONDENTS

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Marketing & Distribution Red Bull Gives you wiings to fly OCCUPATION STUDENT GOVERNMENT SERVICE EX-SERVICEMEN PROFESSIONAL SELF-EMPLOYED TOTAL NO.OF RESPONDENTS 29 9 3 21 13 75 PERCENTAGE 38% 12% 4% 28% 18% 100%

Analysis From the above table it is clear that 38% of the respondents were students pursuing their graduation or post graduation studies and 28% were professionals. 18% of the respondents were self employed, 4% were ex-serviceman and 12% belonged to government services. Interpretation It is clear that users are mostly Professional males, 20-35 years of age including some students because it helps in focusing and staying awake.

GRAPH No.3 GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS - 50 -

Marketing & Distribution Red Bull Gives you wiings to fly

TABLE No.4 TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

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Marketing & Distribution Red Bull Gives you wiings to fly INCOME GROUP LESS THAN 1,20,000 1,20,001-3,60,000 3,60,001-7,20,000 ABOVE 7,20,000 TOTAL NO. OF RESPONDENTS 39 10 14 12 75 PERCENTAGE 52% 14% 18% 16% 100%

Analysis From the above table it is clear that 52% of the respondents had an annual income of lesser than 1,20,000, 18% had income between 3,60,001 and 7,20,000, 16% earned more than 7,20,000 per annum and 14% had income between 120001 to 3,60,000. Interpretation It shows that Red Bull is placing their products in the appropriate and reasonable price range and the people of income bracket less than 1,20,000 can easily afford this product.

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Marketing & Distribution Red Bull Gives you wiings to fly

GRAPH No.4 GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

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Marketing & Distribution Red Bull Gives you wiings to fly TABLE No.5 TABLE SHOWING- THE RESPONDENTS INVOLVEMENT WITH ANY EXTRACURRICULAR ACTIVITIES ON CAMPUS OR OUT OF OFFICE YES/NO NO. OF RESPONDENTS PERCENTAGE OF REPONDENTS

YES NO TOTAL

23 52 75

30% 70% 100%

Analysis From the above it is clear that 30% of the respondents are involved in extracurricular activities and 70% of them do not participate. Interpretation It clearly shows that majority of the respondents do not participate in any extracurricular activities.

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Marketing & Distribution Red Bull Gives you wiings to fly GRAPH No.5 GRAPH SHOWING- THE RESPONDENTS INVOLVEMENT WITH ANY EXTRACURRICULAR ACTIVITIES ON CAMPUS OR OUT OF OFFICE

TABLE No.6

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Marketing & Distribution Red Bull Gives you wiings to fly TABLE SHOWING-THE RESPONDENTS CONSUMPTION OF RED BULL CONSUMPTION NO. OF PERCENTAGE OF RESPONDENTS RESPONDENTS EVERYDAY 15 19% 2-3 DAYS A WEEK 20 27% 4-5 DAYS A WEEK 12 16% ONCE A WEEK 7 10% EVERY 2-3 WEEKS 9 12% ONCE A MONTH 7 9% LESS THAN ABOVE 5 7% TOTAL 75 100% Analysis From the table it clearly shows that 19% of the respondents consume Red Bull everyday, 27% of them 2-3 days a week, 16% of them 4-5 days a week, 10% once a week, 12% every 2-3 weeks, 9% once a month and 7% less than above. Interpretation It is clear that in customers there is a high regularity amongst consumption by customers in a week.

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Marketing & Distribution Red Bull Gives you wiings to fly GRAPH No.6 GRAPH SHOWING-THE RESPONDENTS CONSUMPTION OF RED BULL

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Marketing & Distribution Red Bull Gives you wiings to fly TABLE No.7 TABLE SHOWING- THE INCREASE IN CONSUMPTION OF RED BULL BY THE RESPONDENTS AFTER ADVERTISEMENTS YES/NO YES NO TOTAL NO. OF RESPONDENTS 47 28 75 PERCENTAGE 62% 38% 100%

Analysis From the table it clearly shows that 62% of the respondents are affected by the advertisements and 38% of them are not. Interpretation It is clear there is an increase in consumption of Red Bull after advertisements and hence this marketing strategy has benefited.

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Marketing & Distribution Red Bull Gives you wiings to fly Corporate Social Responsibility The Red Bull Spirit CSR program aims to encourage volunteers and promote the volunteer spirit in Thai society. In our capacity as CSR program manager for Red Bull Spirit, Siamentis worked with the client and local communities to create a number of volunteering opportunities suitable to the varied interests and time availability of different groups of volunteers. CSR Programs that Enhance Brands and Create Social Impact Concept and Development of the Red Bull Spirit CSR program Our unique approach to integrate CSR programs management with communication programs has proven to be extremely effective. ?The success of the Red Bull Sprit CSR program is a case in point. As CSR Program Manager, we helped to develop the volunteer program, identify and coordinate with partners (NGOs and community workers), and manage activities to ensure that volunteers take home fulfilling and rewarding experiences. Examples of Volunteer Activities

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Marketing & Distribution Red Bull Gives you wiings to fly

As creative agency, we have been responsible for the development of the Red Bull Spirit brand and its identity, managing all aspects of its communication program (printed materials, commercials ads, etc.), including the development and maintenance of its website. Since the official launch of the program in March 2008, the agency has taken the Red Bull Sprit CSR program from concept through to conception to to become one of the most recognizable CSR brands in Thailand. Our communication program aims to create awareness about Red Bull Spirit and volunteer opportunities open to the public, as well as to raise public awareness and create a better understanding of current challenges in Thai society, such as community forest issues, food security, and the issues faced by people with mental disabilities. In October 2009, Media Asia ranked Red Bull Spirit TV commercials among the 15 most recalled TV commercials, standing shoulder-to-shoulder against some of the largest advertisers in Thailand despite its modest media budget. Siamentis is the creative agency responsible for the creative concept and production supervision of the TVC. In December 2009, Media Asia published a story about building brands through CSR using Red Bull Spirit as a case study. Our integrated approach to CSR program and communications management has created a wide-reaching positive social impact by attracting thousands of people to volunteer while generating public awareness and goodwill for the client and their brand.

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Marketing & Distribution Red Bull Gives you wiings to fly Business Ethics and Corporate Social Responsibility 1e A new text for new realities: Business Ethics & Corporate Social Responsibility charts a course for students through the unprecedented challenges and turbulence of modern business and its implications for people across the globe. Moving beyond the Anglo-American focus of existing works, the authors employ a refreshingly international perspective to leave students with a broad and reflective understanding of business ethics. A flexible 3-part structure, developed from extensive market feedback, aligns with the latest course structures, while a strong focus on environmental ethics and sustainability throughout provides market-leading coverage of this vital issue. An unparalleled range of case studies, including chapter cases and longer premium cases supplied by HBR, Ivey and ECCH, combine with a full set of online supporting resources to make this the complete introduction to business ethics in a rapidly evolving world. Features

Full international coverage that looks beyond the traditional European and American contexts to provide the complete picture Hundreds of real-world examples that illustrate ethical decision-making in action and what to learn from results Balanced discussion of all the key players in business ethics and corporate social esponsibility including SMEs, NGOs and MNCs Integrative case studies from premium providers featuring a diverse range of organizations including Red Bull, IKEA, and UNHCR

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Marketing & Distribution Red Bull Gives you wiings to fly Advantages: B-Vitamins

Red Bull stimulates the metabolism to aid in concentration and performance, and is said to help with endurance and reaction speed. Ingredients include B-vitamins, B6 and B-12 to help relieve stress, especially helpful to women experiencing PMS (premenstrual syndrome). Red Bull contains taurine, which is broadly classified as an amino acid that aids in tissue repair and is essential for the development of the nervous system. Meat and fish, especially, contain taurine in its natural form, which is also an anti-inflammatory agent.

Carbohydrate and Sugar Content

Red Bull energy drink with taurine contains 27 grams of carbohydrates per 8ounce serving, while 54 grams of carbohydrates are imbibed on drinking the entire 16.9-ounce can of Red Bull and 26 grams of sugar are consumed in each 8ounce serving -- double that amount if drinking the whole can. The pancreas then secretes insulin in order to convert the carbohydrates and sugars into glucose, which in turn equals energy.

Caffeine

High levels of caffeine, which give a false sense of energy to the consumer, are contained in Red Bull. The combination of caffeine, carbohydrates and sugars provide the energy in Red Bull energy drink. Caution should be taken when consuming large amounts of caffeine as too much of a good thing is not necessarily better. France banned Red Bull after the death of a young Irish athlete on drinking four cans of Red Bull energy drink and then participating in a basketball game. Denmark also banned Red Bull. Sold in the UK, Red Bull contains a warning aimed at pregnant women.

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Marketing & Distribution Red Bull Gives you wiings to fly RED BULL DOESNT JUST GIVE YOU WINGS IT MAY ALSO GIVE YOU A HEART ATTACK!!!!

Did you know that just one can of the popular stimulant energy drink Red Bull may increase your risk of heart attack or stroke? The risk also affects young people who are probably the biggest consumers of this type of drink. The caffeine-loaded beverage causes blood to become sticky, a pre-cursor to cardiovascular problems such as stroke. (1) As little as 1 hour or sooner after drinking Red Bull, your blood system becomes abnormal, as might be expected from a patient with cardiovascular disease. Red Bull is banned in Norway, Uruguay and Denmark due to the health risks and questions regarding the safety of Red Bull and other energy drinks, keep being reported in the media regularly. (2) Previously, A Current Affair ran a segment on the dangers of Energy Drinks and Doctor John Tickell conducted a series of tests on two teenagers. The Doctor was horrified young people are legally allowed to buy these drinks which contain 3 to 4 times the caffeine of a can of cola.

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Marketing & Distribution Red Bull Gives you wiings to fly

The two teenagers in this story both experienced effects to their blood pressure and heart rate. Not only do these energy drinks contain high levels of caffeine sometimes 15 times the recommended amount, they contain high levels of artificial sweeteners such Aspartame, which alone has been shown to have multiple neurotoxic, metabolic, allergenic, foetal, and carcinogenic effects. These drinks are marketed towards the young, especially those of drinking age. Mixing energy drinks with alcohol, which is combining a stimulant with a depressant, has become an increasingly popular occurrence at parties and nightclubs. The combined effect of these substances is unknown, but researchers say overloading your body with heavy stimulants and heavy depressants could lead to heart failure , (3) and according to previous news stories about fatal outcomes from this deadly mixture, thats not just a theory! Who should avoid these drinks? Everybody should avoid these types of drinks!!! We have listed below those who are at a higher risk from consuming energy drinks, so if you know of someone who regularly drinks these beverages, you may like to pass this article on to them, so they can make an informed decision whether or not to give them up. It is wise to avoid these drinks if you:

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Marketing & Distribution Red Bull Gives you wiings to fly

Are pregnant or lactating A child Are sensitive to or have a low tolerance of caffeine Suffer from anxiety Suffer from high levels of stress Suffer from chronic fatigue syndrome Have high blood pressure Are predisposed to cardiovascular disease Have any kind of blood clotting disorder

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Marketing & Distribution Red Bull Gives you wiings to fly Side Effects of Red Bull Energy Drink Red Bull is a fortified beverage that can be used to supplement energy and concentration. It contains several invigorating ingredients, each of which has a slight nuance in function. While often beneficial, when taken in excess, some ingredients can cause undesirable side effects. Weight Gain

Because of the amount of sugar contained in a can of Red Bull, weight gain can be an unhealthy side effect of Red Bull consumption. According to DietFacts.com, one 8.3 ounce can of Red Bull has 27 grams of sugar. The Mayo Clinic says that sugar intake has a direct correlation with weight gain, especially for individuals who do not exercise frequently or people who struggle to maintain a healthy weight. Weight gain can result in a number of health-related problems, including heart complications and lethargy. Excessive sugar intake can also contribute to the development of diabetes and a reduction in the function of the immune system. Anxiety One of the energy-boosting ingredients in Red Bull is caffeine. An 8.3 ounce can of Red Bull contains 80 mg of caffeine. According to an article by Woojae Kim of the Massachusetts Institute of Technology entitled "Debunking the Effects of Taurine in Red Bull Energy Drink," the caffeine in energy drinks is the greatest contributor to the energy-producing effect, not the taurine or grucuronolactone, as the manufacturer proposes. Excessive caffeine consumption can produce anxiety, nervousness, restlessness and insomnia.

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Marketing & Distribution Red Bull Gives you wiings to fly Cardiovascular Risk The caffeine in Red Bull can also cause increased blood pressure. This can be dangerous for individuals who intend to engage in intense physical exertion or have had previous heart problems or complications. High blood pressure can also trigger irregular heart rhythms, which could be detrimental to the heart and potentially fatal to the individual. Consumption of energy drinks has also been associated with an increased risk of heart attacks and cardiac failure. Roger A. Clemens of the University of Southern California's School of Pharmacy says that mixing alcohol with energy drinks, such as Red Bull, can cause cardiovascular risk, shortness of breath, and rapid heartbeat. Dehydration Dehydration is always a concern for athletes. However, individuals who consume caffeine, like that in Red Bull, may have an increased risk of dehydration. Excess caffeine intake has been shown to result in headaches and nausea, all symptoms of dehydration. Redbull.com warns that Red Bull "has not been formulated to deliver rehydration" and recommends athletes drink plenty of water during exercise.

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Marketing & Distribution Red Bull Gives you wiings to fly Risks of Red Bull Ingestion By Simon Fuller, eHow Contributor Red Bull is a popular brand of energy drink, first launched in the United States in 1997, and now enjoyed by consumers including workers and party-goers, who drink Red Bull to increase productivity and to stay awake into the early hours. Studies have been conducted into the negative effects of consuming Red Bull, however, with some concerned about the consequences of Red Bull on the human body. Risk of Mania Some medical professionals have expressed concerns about the potential of Red Bull to induce a manic episode in individuals. These worries mostly concern taurine and inositol, two ingredients found in the energy drink. According to a report by Verinder Sharma, printed in the German Journal of Psychiatry in 2010, and entitled "Red Bull and Mania," taurine has in the past been responsible for triggering psychotic episodes, while inositol has also been associated with manic problems, especially in patients suffering from bipolar disorder. Induces Reckless Behavior Many drinkers of Red Bull combine this energy product with large amounts of alcohol, particularly with vodka, which is often promoted by alcohol vendors as a highly-suitable accompaniment. Consumers view the combination as supplying a lot of energy, allowing them to keep partying all night, but the downside is that Red Bull and alcohol make drinkers especially reckless. This recklessness can lead drinkers into dangerous situations like drunk driving or sexual activity they later regret. Research from North Carolina's Wake Forest University Baptist Medical Centre, published in 2007, found that of 4,271 U.S. college students questioned, those who combined Red Bull and alcohol were two times more likely to receive medical attention after drinking than those who stuck to alcohol alone.

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Marketing & Distribution Red Bull Gives you wiings to fly Perception of Drunkenness Reduced Another problem for individuals combining alcohol with Red Bull is that drinkers suffer from a reduced perception of how inebriated they are when Red Bull is added to the equation. This means they are more likely to drive while drunk, for example, since their perception of their own motor coordination is likely to be incorrect. Research from Brazil's Universidade Federal do Parana found that when compared to alcohol alone, ingesting both Red Bull and alcohol had a significant effect on an individual's ability to perceive symptoms of weakness and headache, in addition to motor coordination; essentially, the individual feels less drunk than she actually is. Heart Problems Risk Red Bull contains high levels of caffeine, and some experts have highlighted this ingredient as inducing heart risks in long-term consumers of the product. Researchers at the Cardiovascular Research Centre at the Royal Adelaide Hospital and Adelaide University in Australia, who surveyed students in their 20s, found a link between even small doses of Red Bull and an increase in the risk of blood clots in a person. The caffeine in Red Bull has also been linked to heart attack incidents, as reported by the Times Online newspaper website.

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Marketing & Distribution Red Bull Gives you wiings to fly CONCLUSION

Red Bull, the producer of the number one energy drink in the world was founded in 1984 by Dietrich Mateschitz in Austria. Since 1987, Red Bull has sold more than 30 billion cans, 4.6 billion alone in 2011. Red Bulls headquarters are based in Austria but the product is now available in 164 countries. They are not only an energy drink producer, but also own a variety of sports teams, their own music label and run many high profile advertising events. Currently Red Bull employs more than 8,294 people worldwide. Some of the company objectives include: Expand the products presence among the maturing target market. Maintain and increase market share within a highly competitive market. Maintain excellent marketing. Red bull is well known for their very unique advertising strategies that include high profile events. Most recently Red Bull Stratos where Felix Baumgartner broke five world records including highest free fall jump and fastest speed in a free fall (Guinness World Records, 2012). Events like these are representative of the internal company culture as well. We will display in this report how Red Bull takes a unique approach to company culture as well as some of their motivation practices.

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Marketing & Distribution Red Bull Gives you wiings to fly

QUESTIONNAIRE
RESPONDENT INFORMATION Name: 1. Age:

2. Gender :

Male

Female

3. Occupation:

Student

Government service

Professional

Self employed

other

4. Annual Income: Less than 1, 20,000 3, 60,001-7, 20,000 1, 20,001-3, 60,000 Above 7, 20,000

5. Are you involved with any extracurricular activities on campus or out of office? Social events you participate in? Yes No

6. Have you consumed an energy drink before? Yes No

-If yes why? / If No why not? Yes No 7. Have you tried the Energy Drink Red Bull?
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Marketing & Distribution Red Bull Gives you wiings to fly

Yes

No

8. How often do you consume Red Bull?

Everyday

2-3 days a week

4-5 days a week

Once a week

Every2-3 weeks

Once a month

Less than above

9. Has marketing or advertising affected your consumption of Red Bull? Yes No

10.Please specify your source of awareness of Red Bull? Magazines Website/blogs TV Ads Friends

Other Sources (Please specify)

11.Why do you buy Red Bull?

For Relieving Fatigue Daily Routine

For staying Awake Increase Concentration

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Marketing & Distribution Red Bull Gives you wiings to fly

Hangover Remedy

Others

12.Where do you usually buy Red Bull?

Convenience Store

Supermarket

Drug Store

Others

13.What are important factors to choose Red Bull? Please provide your top 3 answers.

Energy

Price

TV Commercial

Ads on newspaper/magazine

Marketing Campaign

Package

Brand

Taste

Word of Mouth

14.How much do you usually spend on Red Bull per week?

Range of Rs.100

Range of Rs.200

Range of Rs.300

Range of Rs.400

Range of Rs.500
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More than above

Marketing & Distribution Red Bull Gives you wiings to fly

15.Would you prefer any other energy drink over Red Bull? Yes No If Yes why? 16.Do you think Red Bull is over priced? Yes No

17.Have you ever faced difficulties in finding Red Bull? Yes No

Are you satisfied with availability of Red Bull in market? Extremely satisfied Not at all satisfied

18.What do you think is the Red Bulls supremacy over its competitors in the market? Price Promotion 19.Which company do you think has the highest market share in the energy drink segment? Taste Brand Image

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Marketing & Distribution Red Bull Gives you wiings to fly

Red Bull Cloud 9 20.Any Suggestions

XXX Others

BIBLIOGRAPHY Books Referred Marketing Management, 13th edition - Philip Kotler. Survey Research Method - Charles Babbie. Magazines Referred The Red Bulletin

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Marketing & Distribution Red Bull Gives you wiings to fly Websites Referred www.google.com www.wiiings.com www.redbull.com www.wikipedia.com

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