The document analyzes the energy drink market and the Burn energy drink brand. It finds that Burn has lost significant market share in recent years, from 11% in 2009 to 2% in 2012, due to a lack of brand awareness, availability, and intense competition from new brands offering lower prices. It recommends that Burn build mass awareness through advertising, change its positioning from premium to mass, lower its prices to compete better, sponsor music events to associate with its target audience, and re-introduce sampling to boost trials after raising awareness.
The document analyzes the energy drink market and the Burn energy drink brand. It finds that Burn has lost significant market share in recent years, from 11% in 2009 to 2% in 2012, due to a lack of brand awareness, availability, and intense competition from new brands offering lower prices. It recommends that Burn build mass awareness through advertising, change its positioning from premium to mass, lower its prices to compete better, sponsor music events to associate with its target audience, and re-introduce sampling to boost trials after raising awareness.
The document analyzes the energy drink market and the Burn energy drink brand. It finds that Burn has lost significant market share in recent years, from 11% in 2009 to 2% in 2012, due to a lack of brand awareness, availability, and intense competition from new brands offering lower prices. It recommends that Burn build mass awareness through advertising, change its positioning from premium to mass, lower its prices to compete better, sponsor music events to associate with its target audience, and re-introduce sampling to boost trials after raising awareness.
Niche category- Accounts for 2.7% of total soft drink consumption globally Experienced dynamic growth over the past decade- Absolute volume growth: 4 billion liters Absolute value growth: US $26 billion Major players- Red Bull, Monster, Rockstar, SoBe, Burn, Full Throttle Leading players- Red Bull with 42% market share, Monster with 37% market share While Soda sales have been declining steadily, energy drink sales have been booming Key trends: Grand scale sports and music events sponsorships for brand placements Introduction of natural flavors Replacement of caffeine with better substitutes Market sizes of each of the segments are as below Particulars Off-trade* (Shops & Other Retail Outlets) On-trade* (Pubs & bars, hotels & restaurants, cafs etc.) Total % of Total (Rs. Million) (Rs. Million) (Rs. Million) Bottled Water 65,662.00 63,111.30 128,773 .30 36.64% Carbonated Soft Drinks 63,434.20 92,684.90 156,119 .10 44.42% Concentrates 4,202.80 - 4,202.8 0 1.20% Fruit/Vegetable Juices 40,398.70 13,633.10 54,031. 90 15.37% RTD Coffee 50.1 87.6 137.7 0.04% RTD Tea 599.9 144.2 744.1 0.21% Sports and Energy Drinks 2,345.60 5,255.60 7,601.2 0 2.16% Total Soft Drinks 176,643.20 174,829.10 351,472 .30 100% Beverages Drink Market in India Bottled Water 37% Carbonat ed Soft Drinks 45% Concentr ates 1% Fruit/Ve getable Juices 15% RTD Coffee 0% RTD Tea 0% Sports and Energy Drinks 2% Sales (Source: Euromonitor 2012) 2001 SHOCK 2003 Red Bull 2008 SoBe Cloud9 2009 Burn 2011 Tzinga Few Facts about energy drinks in India Current Size 500 cr Niche industry, at a nascent stage CAGR 25% First Energy Drink Shock in 2001 Red Bull, launched in 2003, is the current market leader
Timeline of Energy Drink Market in India Burn Energy Drink After Shock failed to penetrate the Indian market in 2001, Coca Cola launched Burn in 2009 Imports Burn from Malaysia to sell in India Positioned as a premium product, available only in the HORECA segment and high end retailers, in Mumbai, Delhi and NCR Targeted towards socially active young adults Strategy at the time of launch- Exclusivity and Expansion From a market share of 11% in 2009, reduced to about 2% in 2012 Faces intense competition in its targeted segment from Red Bull 1. Brand Elements 300 ml 500 ml - Not available in India 2. Kapferers Brand Identity Prism Picture of Sender Picture of Recipient PHYSIQUE PERSONALITY RELATIONSHIP CULTURE REFLECTION SELF IMAGE Energetic Young Rebel Sensual Dynamic Overpassing limits Upbeat Energy Quality Potent
American Music
Trust Party drink Mood setter High profile music events like - Burn Studios, Residency, etc. in Ibiza, Spain Sponsors extreme sports like Skateboarding and snowboarding all across Europe, short films on the same Advertisements focused around music and extreme sports
Entered Formula 1 racing with a sponsorship deal with the Lotus F1 team
No TVCs and internet marketing for the Indian market
Below the Line sales promotion - Out Of Home campaign in Mumbai, Delhi and Bangalore
Activities like sampling, event sponsorships and community based marketing initiatives with focus on restaurants, clubs and bars
Point of sales promotions Social Networking Active on social networking- Facebook, Twitter, Flickr, Vimeo, YouTube
Burn Car by Dilip Chhabaria Burn Curate Competitions for best costume inspired by Burn can in Delhi and Mumbai: 2010, 2011 Enlisted digital media and campaigns to generate response Icons such as Sabyasachi, Rocky S, Sapna Bhavnani, DJ Pearl to promote the events
Direct Competitors Energy drinks brands like: Red Bull Market leader, with 62% market share Mass brand, with availability in all segments Cloud 9 Manufactured by Mumbai based Goldwin Healthcare Monster Recently launched at select locations in metropolitans XXX Local brand, manufactured by Viiking Beverages Pvt. Ltd., owned by Sachiin Joshi Tzinga Recently launched local brand, popular due to its pouch packaging and lower prices, owned by Hector Beverages
Red Bull 62.00% Cloud 9 25.00% Power Horse 4.00% XXX 3.50% Tzinza 3.00% Burn 2.00% Others 0.50% Market Share of Key Players in India Direct Competition Analysis Energy Drink Caffeine Content Variants Variants Red Bull 0.32% 4 Original, Sugar free, Cola, Total Zero Burn 0.32% 4 Original, Fruit-flavored, Mocha, Sugar Free Cloud 9 0.30% 2 Premium, Fruit-flavored Power Horse 0.31% 3 Regular, Sugar Free, Soda XXX 0.10% 3 Rejuve, Nicofix, Minus Tzinga 0.30% 3 Lemon Mint, Tropical Trip, Mango Strawberry Indirect Competitors
Indirect Competitors
Soft Drink Market
Coffee
Sports Energy drinks
Glucose based drinks and powders Packaging Similar Distribution Model
Caffeine
Energy /Sugar
Instant Stamina POP Carbonated Lesser Caffeine Content
Milk Base
Zero Caffeine content
Zero Caffeine Content POD Customers Speak: Why do you like this specific Brand? Brand Name 4% Availability in vicinity 17% Effectiveness 4% Taste 25% Lower Price 50% Tzinga Brand Name 35% Availability in vicinity 19% Effectiveness 14% Taste 32% Red Bull Pricing and Packaging Energy Drinks Red Bull Coke Burn Cloud 9 Power Horse Tzinga XXX Packaging Type Can Can Slimmer Can Can Can Shorter Can Pouches Can Volume (ml) 250 355 300 180 250 250 250 250 Prices (Re) 95 120 95 45 85 75 25 75 Price / ml 0.38 0.34 0.32 0.37 0.34 0.3 0.10 0.30 Inconsistencies and problem areas Reduction in market share Market share in India in 2009- 11% Market share in 2012- 2% Lack of brand awareness Lack of retail availability- a premium brand priced on the same lines as mass brands New entrants like Tzinga to further intensify competition Customer Feedback Of the 84 survey respondents aged between 18-28, 100% had heard of Red Bull 90% had heard of Tzinga 69% had heard of Cloud9 43% xxx 21% had heard of BURN 24% knew about Monster 15% had heard of KS
20-30 12% 30-40 20% 40-50 28% 50-60 18% 60-70 9% 70-80 5% 80-90 4% 90-100 4% What price (INR) do you think is appropriate / you would pay for an energy drink? 78% want price to be lower than Rs 60 3% 19% 66% 6% 6% How frequently do you consume an energy drink Daily Once a month Rarely Twice a month Weekly Music Festivals/Concerts 15% Night out/Party 36% No Occasion 3% Sports 20% Studies 19% Tired 1% Work Out 6% On what occasion do you buy an energy drink? 1% 1% 3% 79% 16% Which brand do you prefer the most? Burn Kamasutra Whichever is available Red Bull tzinga No 94% Yes 6% Have you ever tried BURN Energy Drink? No 85% Yes 15% Do you know that it is a product from the house of Coca-Cola? No 24% Yes 76% Now that you know about Burn and its association with Coca Cola, would you try it? Summary of findings Brand Issues Brand Objectives Recommendations Build Awareness: Start ATL marketing for mass reach Change positioning: From premium brand to a mass brand Decrease prices- with license to product in India, Coke can reintroduce Burn with its new packaging and at lower prices, to attract the mass segment Bring out association to music by sponsoring events like the Sunburn music festival in Goa and Noida, which attract a crowd of more than 50,000 trance music lovers Be more vocal about Burn being a Coca Cola brand Re-introduce sampling, after awareness has been established