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).
[...] Red Bull Rally The first presence of RB in the Market will be made by an open rally (treasure hunt style), where different communities can sign in. The main cities distributed will participate simultaneously. The wining team will get media coverage, RB caps, T-shirts and a trophy plus a free quota of RB. 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 far as other forms of competition, it has been established that powdered energy drinks to pose a threat, in this case, brand loyalty should be a priority for Red Bull and specific measures should be taken. Overall, as per the forecast for the European Market (Euromonitor, 2005), RB is in a category of its own, within the functional/ energy drinks category. Its performance will therefore rely, in great part; in the Marketing mix strategy and effectiveness of execution. Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2005-2010 litres Elixirs drinks Source : Company research, trade interviews, Euromonitor International estimates Appendix1 Reduction of the RB can size Appendix 2 The Red Bull Cartoon References Austrade. [...]
[...] This particular one will have a different promotion strategy Price Consumers in Philippines are price sensitive; however, a premium pricing strategy is going to the implemented because we consider that maintaining the premium price of Red Bull when entering the market it is important. Even though, the drink is going to the at the introduction stage of the Product Life Cycle, it is considered that a skimming price strategy is not appropriate in this case if brand image wants to be maintained. [...]
[...] The cartoon animation for Red Bull, as another side of marketing communication, is also very important, however, its main function is to create buzz and the brand on brand-conscious consumers, as opposed to informing customers. One of the Cartoons used could be an image of Goliath the Giant, and David, here David drinks RB, gets wings and flies around goliath so fast that Goliath gets dizzy and falls. In the end, they become friends and drink Red Bull together. Bull gives you Wiiings!!!” Distribution as a Strategy On another note, the point-of -purchase and sampling practices will be the key to the success of Red Bull. [...]
[...] There is a sector in the populations that look for products in these stores to combat fatigue and stress and to improve physical and mental performance (GMID,2005), benefits that Red Bull provides. Sari Sari: These typical Philippine stores are used by middle-high income people for convenience and proximity (GMID,2005). Further analysis needs to take place to see if the brand image won't be compromise if the drink is sold in these stores. As noted by GMID, 2005: high growth rate [of sales in energy drinks] is attributed mainly to its low volume base, encouraged only by greater penetration of sari-sari stores towards the end of the review period”. [...]
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