PROJECT REPORT

ON
“MARKETING MIX OF RED BULL ENERGY
DRINK”SUBMITTED IN PARTIAL FULFILLMENT OF
BACHELOR OF BUSINESS ADMINISTRATION DEGREE
COURSE OF GAHAZIABAD

Session :2015-2018

Under the Guidance of Submitted by: TARANJEET SINGH

Designation:BBA VI SEM.
 DECLARATI0N

I hereby declare that this titled as“ MARKETING

MIX OF RED BULL ENERGY DRINK”is my original work under the
guidance of Dr.KAMAL AGARWAL towards the partial fulfilment of the
requirements for BBA course . This has not been submitted earlier for award of
any other degree by Sunderdeep college.

DATE:

NAME:TARANJEET SINGH

Roll no:1530209562
SL. NO. CONTENTS

1. CHAPTER 1- INTRODUCTION
This chapter contains introduction to Marketing, Meaning, Definition,
Importance and other relevant aspects of Customer Satisfaction and
Marketing effectiveness, the theoretical background to Beverage
Industry till date and Indian beverage market.

2. CHAPTER 2- RESEARCH DESIGN

• Statement of problem
• Objectives of study
• Scope of study
• Operational Definitions
• Research Methodology
• Tools of Data collection
• Sample Design
• Plan of Analysis
• Limitations of the study
• Overview of Chapter scheme

3. CHAPTER 3- COMPANY PROFILE

This chapter contains the historical background of the company,
company vision, objectives, and SWOT analysis.

4. CHAPTER 4- DATA ANALYSIS AND

INTERPRETATION
Analysis and interpretation from the data collected through
questionnaires, Tables and graphs representing it.
 5. CHAPTER 5- SUMMARY OF FINDINGS AND CONCLUSIONS
This chapter contains the findings drawn from the

study.
6. BIBLIOGRAPHY

Name of the books, author, magazines, websites.

TABLE TABLE NAMES

NO
1. Table showing the profile of the respondents based on age

2. Table showing the profile of the respondents based on gender

3. Table showing the occupation of respondents

4. Table showing the annual income group of respondents

5. Table showing the respondents involvement with any

extracurricular activities on campus or out of office
 6. Table showing the respondents consumption of Red Bull

GRAPH GRAPH NAMES

NO
1. Graph showing the profile of the respondents based on age

2. Graph showing the profile of the respondents based on gender

3. Graph showing the occupation of respondents

4. Graph showing the annual income group of respondents

5. Graph showing the respondents involvement with any extracurricular

activities on campus or out of office
6. Graph showing the respondents consumption of Red Bull

7. Graph showing the increase in consumption of Red Bull by the

respondents after advertisements

8. Graph showing the source of awareness of Red Bull

9. Graph showing the factors influencing to buy Red Bull

10. Graph showing purchasing place of Red Bull by respondents

 CHAPTER 1

INTRODUCTION
#INTRODUCTION TO MARKETING
Marketing is the process of performing market research,sellingproductsand/or

services to customers and promoting them via advertising to further enhance

sales. It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through

which companies build strong customer relationships and create value for their

customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and to keep

the customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets

caused by mature markets and overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires businesses to shift their focus from

production to the perceived needs and wants of their customers as the means of

staying profitable.

The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy these

more effectively than competitors.

An orientation, in the marketing context, related to a perception or attitude a firm

holds towards its product or service, essentially concerning consumers and end-

users. Throughout history, marketing has changed considerably in time with

consumer tastes.

Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on the

customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to society.

New forms of marketing also use the internet and are therefore called internet

marketing or more generally e-marketing, online marketing, search engine

marketing, desktop advertising or affiliate marketing. It attempts to perfect the

segmentation strategy used in traditional marketing. It targets its audience more

precisely, and is sometimes called personalized marketing or one-to-

onemarketing.
Customer orientation

A firm in the market economy survives by producing goods that persons are

willing and able to buy. Consequently, ascertaining consumer demand is vital for

a firm's future viability and even existence as a going concern. Many companies

today have a customer focus (or market orientation). This implies that the

company focuses its activities and products on consumer demands. Generally,

there are three ways of doing this: the customer-driven approach, the market

change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer

research. Every aspect of a market offering, including the nature of the product

itself, is driven by the needs of potential consumers. The starting point is always

the consumer. The rationale for this approach is that there is no reason to spend

R&D funds developing products that people will not buy. History attests to many

products that were commercial failures in spite of being technological

breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA

(Solution, Information, Value and Access). This system is basically the four Ps

renamed and reworded to provide a customer focus. The SIVA Model provides a

demand/customer-centric alternative to the well-known 4Ps supply side model

(product, price, placement, promotion) of marketing management.

Product → Solution
Price → Value

Place → Access

Promotion → Information

If any of the 4Ps were problematic or were not in the marketing factor of the

business, the business could be in trouble and so other companies may appear in

the surroundings of the company, so the consumer demand on its products will

decrease.

Organizational orientation

In this sense, a firm's marketing department is often seen as of prime importance

within the functional level of an organization. Information from an

organization's marketing department would be used to guide the actions of other

departments within the firm. As an example, a marketing department could

ascertain (via marketing research) that consumers desired a new type of product,

or a new usage for an existing product. With this in mind, the marketing

department would inform the R&D department to create a prototype of a

product/service based on consumers' new desires.

The production department would then start to manufacture the product, while the

marketing department would focus on the promotion, distribution, pricing, etc. of

the product. Additionally, a firm's finance department would be consulted, with

respect to securing appropriate funding for the development, production and

promotion of the product. Inter-departmental conflicts may occur, should a firm

adhere to the marketing orientation. Production may oppose the installation,

support and servicing of new capital stock, which may be needed to manufacture

a new product. Finance may oppose the required capital expenditure, since it

could undermine a healthy cash flow for the organization.

Marketing research

Marketing research involves conducting research to support marketing

activities, and the statistical interpretation of data into information. This

information is then used by managers to plan marketing activities, gauge the

nature of a firm's marketing environment and attain information from suppliers.

Marketing researchers use statistical methods such as quantitative

research,qualitative research,hypothesis tests,Chi-squared tests,linear

regression,correlations, frequency distributions, poison distributions,

binomial

distributions, etc. to interpret their findings and convert data into information. The

marketing research process spans a number of stages, including the definition of

a problem, development of a research plan, collection and interpretation of data

and disseminating information formally in the form of a report. The task of

marketing research is to provide management with relevant, accurate, reliable,

valid, and current information. A distinction should be made between marketing

research and market research. Market research pertains to research in a given

market. As an example, a firm may conduct research in a target market, after

selecting a suitable market segment. In contrast, marketing research relates to all

research conducted within marketing. Thus, market research is a subset of

marketing research.

Market segmentation

Market segmentation pertains to the division of a market of consumers into

persons with similar needs and wants. For instance, Kellogg's cereals, Fro sitesare

marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods

denote two products which are marketed to two distinct groups of

persons, both with similar needs, traits, and wants. Market segmentation allows

for a better allocation of a firm's finite resources. A firm only possesses a certain

amount of resources. Accordingly, it must make choices (and incur the related

costs) in servicing specific groups of consumers. In this way, the diversified tastes

of contemporary Western consumers can be served better.

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided

into the following parts:

• Primary research (also known as field research), which involves the

conduction and compilation of research for a specific purpose.

• Secondary research (also referred to as desk research), initially conducted

for one purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research

conducted into health foods, which is used solely to ascertain the needs/wants of
the target market for health foods. Secondary research in this case would be

research pertaining to health foods, but used by a firm wishing to develop an

unrelated product.

Primary research is often expensive to prepare, collect and interpret from data to

information. Nevertheless, while secondary research is relatively inexpensive, it

often can become outdated and outmoded, given that it is used for a purpose other

than the one for which it was intended. Primary research can also be broken down

into quantitative research and qualitative research, which, as the terms suggest,

pertain to numerical and non-numerical research methods and techniques,

respectively. The appropriateness of each mode of research depends on whether

data can be quantified (quantitative research), or whether subjective, non-numeric

or abstract concepts are required to be studied (qualitative

research).

There also exist additional modes of marketing research, which are:

• Exploratory research, pertaining to research that investigates an

assumption.

• Descriptive research, which, as the term suggests, describes "what is".

• Predictive research, meaning research conducted to predict a future

occurrence.

• Conclusive research, for the purpose of deriving a conclusion via a

research process.
Promotion (marketing)

Promotion is one of the four elements of marketing mix (product, price,

promotion, distribution). It is the communication link between sellers and

buyers for the purpose of influencing, informing, or persuading a potential

buyer's purchasing decision. Fundamentally, however there are three basic

objectives of promotion. These are:

1. To present information to consumers as well as others

2. To increase demand

3. To differentiate a product.

There are different ways to promote a product in different areas of media. Many

times with the purchase of a product there is an incentive like discounts, free

items, or a contest. This is to increase the sales of a given product.

Marketing strategy

The field of marketing strategy encompasses the strategy involved in the

management of a given product. A given firm may hold numerous products in the

marketplace, spanning numerous and sometimes wholly unrelated

industries. Accordingly, a plan is required in order to effectively manage such

products. For example, a start-up car manufacturing firm would face little success

should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large

global car maker. Moreover, a product may be reaching the end of its lifecycle.

Thus, the issue of divest, or a ceasing of production, may be made. Each scenario
requires a unique marketing strategy. Listed below are some prominent marketing

strategy models.

CUSTOMER SATISFACTION
Customer satisfaction, a businessterm, is a measure of how products and services

supplied by a company meet or surpass customer expectation. Customer

satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services

(ratings) exceeds specified satisfaction goals."

It is seen as a key performance indicator within business and is part of the four

of a Balanced Scorecard. In a competitive marketplace where businesses

compete for customers, customer satisfaction is seen as a key differentiator and

increasingly has become a key element of business strategy.

Within organizations, customer satisfaction ratings can have powerful effects.

They focus employees on the importance of fulfilling customers’ expectations.

Furthermore, when these ratings dip, they warn of problems that can affect sales

and profitability. These metrics quantify an important dynamic. When a brand

has loyal customers, it gains positive word-of-mouth marketing, which is both

free and highly effective.

In researching satisfaction, firms generally ask customers whether their product

or service has met or exceeded expectations. Thus, expectations are a key factor

behind satisfaction. When customers have high expectations and the reality falls

short, they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower

satisfaction rating than a budget motel—even though its facilities and service

would be deemed superior in “absolute” terms.

CUSTOMER SATISFACTION IN 7 STEPS

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a

customer. If you're not used to this sort of thing it can be a pretty nervewracking

experience. Rest assured, though, it does get easier over time. It's important to

meet your customers face to face at least once or even twice during the course of

a project.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for

a response to an email or phone call. It might not always be practical to deal with

all customers' queries within the space of a few hours, but at least email or call

them back and let them know you've received their message and you'll contact

them about it as soon as possible. Even if you're not able to solve a problem right

away, let the customer know you're working on it.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the

phone. This is very true. It's very important to be friendly, courteous and to make
your clients feel like you're their friend and you're there to help them out. There

will be times when you want to beat your clients over the head repeatedly with a

blunt object - it happens to all of us. It's vital that you keep a clear head, respond

to your clients' wishes as best you can, and at all times remain polite and

courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly

defined customer service policy is going to save you a lot of time and effort in the

long run. If a customer has a problem, what should they do?

If the first option doesn't work then what? Should they contact different people

for billing and technical enquiries? If they're not satisfied with any aspect of your

customer service, who should they tell? There's nothing more annoying for a

client than being passed from person to person, or not knowing who to turn to. So

make sure your customer service policy is present on your site -- and anywhere

else it may be useful.

5. Attention to Detail

Have you ever received a Happy Birthday email or card from a company

you were a client of? Have you ever had a personalized sign-up confirmation

email for a service that you could tell was typed from scratch? These little niceties

can be time consuming and aren't always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's

something. It shows you care; it shows there are real people on the other end of
that screen or telephone; and most importantly, it makes the customer feel

welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them

Out

Sometimes this is easier said than done! However, achieving this supreme

level of understanding with your clients will do wonders for your working

relationship.

7. Honor Your Promises

It's possible this is the most important point in this article. The simple

message: when you promise something, deliver. Clients don't like to be

disappointed. Sometimes, something may not get done, or you might miss a

deadline through no fault of your own. Projects can be late, technology can fail

and sub-contractors don't always deliver on time. In this case a quick apology and

assurance it'll be ready ASAP wouldn't go a miss.

CUSTOMER LOYALTY
Obtaining a thorough understanding of customer loyalty is a prerequisite

for the execution of the research at hand. For that, the development of customer

loyalty research within the framework of relationship marketing will be presented

first, before different customer loyalty concepts will be introduced. From these

concepts, a definition of customer loyalty for use in this study will be derived,

before both consequences and antecedents of customer loyalty will

be portrayed.
 Since the beginning of the 1990s, customer loyalty has gained importance

both in relationship marketing research and in business. In business, this can be

attributed to changing market- and competition-environments. Due to a shift from

a sellers’ to a buyers’ market and because of an increasing degree of globalization,

most industries find themselves confronted with new challenges. In a first phase,

firms tried to face these challenges by focusing on their internal processes and

organizational structures, trying to achieve cost reductions by concentrating on

internal improvements. A second phase of external focus followed, where firms

directed attention to their customers, trying to retain existing ones and to win over

new ones (churning). Since “acquiring new customers is much more expensive

than keeping them”. And “loyal customers are the bedrock of any business”. A

loyal customer base represents a barrier to entry, a basis for a price premium, time

to respond to competitor innovations, and a bulwark against deleterious price

competition. Loyalty is critical to brand volume, is highly correlated to market

share, and can be used as the basis of predicting future market share;

consequently, understanding loyalty appears

critical to any meaningful analysis of marketing strategy.

In marketing research, two trends mark the development of customer

loyalty. While individual transactions initially were in the center of marketing

research, the focus shifted towards analyzing relationships states that the

‘traditional’ marketing concept of the marketing mix with its ‘4 Ps’, developed in

the middle of the last century, had been the established approach until the 1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the

relationship marketing approach. At the core of it is the study of relationships

between buyers and sellers of goods or services, in contrast to merely examining

transactions. An often cited and comprehensive definition of relationship

marketing is provided “Relationship marketing refers to all marketing activities

directed toward establishing, developing, and maintaining successful relational

exchanges.” Therefore, the relationship marketing approach pro-vides a suitable

environment in which customer loyalty research

can be nested.

While the development of relationship marketing began in the early

1970s, it was not until the late 1980s that works from the ‘Nordic School of

Services’. Initiated a paradigm shift that geared marketing towards the creation,

conservation, and extension of buyer-seller relationships. Although relationship

marketing today is widely accepted among marketing researchers, its promoters

do not postulate the replacement of the transactional approach, but rather

juxtapose the two approaches. For example, delineates a strategy continuum, in

which different goods require different degrees of transaction- and

relationshipbased marketing strategies. As a result of the focus on relationships

in

marketing research, customer loyalty gained importance within research.

Before determining which stream the present study can be associated with,

however, it is important to create a clear understanding of different customer

loyalty concepts prevalent in research. This will be accomplished in the following

section.

OBJECTIVES OF CUSTOMER SATISFACTION PROGRAMME

Our Programs are research based, built on the three corner stone’s of customer

satisfaction: product quality, process and procedural quality, and relationship

quality. Our typical program assesses specific issues under each component, for

example:

Product Quality

• meets or exceeds expectations

• state-of-the-art technology

• validated, tested, & simulated to client specifications

• competitive pricing

• enhance customer value

Procedural Quality
• ease of ordering
• accurate fulfillment
• inventory meets needs
• on time delivery
• environmentally friendly packing
• packaged to prevent damage in shipment
• ease of tracking
• appropriate adjustment/return policy
• order-through-delivery process bests competition
Relationship Quality
• product knowledgeable contacts
• knowledgeable about client needs
• communicates at client knowledge level
• one-stop problem resolution
• problems solved at the root cause
• legendary customer service benchmarks competition

The tailored Programs provide direct, statistically valid, comparison data of you

to your competition on the following actionable areas:

• Responsiveness
• Competitiveness
• Innovativeness
• Quality
• Customer Service
• Long Term Partnering

It accurately quantifies your competitive strengths and weaknesses from your

customers' perspective. Using the data, it will help you focus strategic efforts to

retain and increase market share. The programs also provide direct measure of the

effectiveness of initiatives your organization has implemented during prior year

(after first year's participation). That is, you will have quantifiable internal

benchmarks (in addition to the external competitive benchmarks) on the repeat

annual surveys to judge progress based on actions you have taken during the

previous 12 months.

TABLE SHOWING KEY FACTORS FOR CUSTOMER

SATISFACTION
COMPANY FUNCTION QUALITY FACTORS
Product
Knowledge
Sales

Brochure detail
Mailing frequently
Marketing

Order Delivery time

Order Completeness
Distribution

Problem Response Time

Time to Resolve
After Sales

Accounts Accuracy
Problem Response
Courtesy

HANDLING CUSTOMER COMPLAINTS

A complaint is any measure of dissatisfaction with your product or service, even

if it’s unfair, untrue, or painful to hear! Complaints may be about:

• Service Content, Delivery or Quality • Response Time

• Documentation • Personnel

• Billing • Communication

• Follow Up • Requests

This is a customer complaint resolution process that anyone can implement:

 ✔Focus on the Customer

If you can’t immediately solve the problem, respond to the customer and identify

an “owner” who will be responsible for final resolution. Complete the

communications loop with customer. If you’ve referred the complaint to others,

make sure there’s closure. If you’ve left the customer hanging without a

response, you’ve become part of the problem. ✔

Focus on the Complaint

Collect all complaints from all external customers and categorize them in a way

that allows you to analyze data to see trends, patterns, concentrations,

tendencies, etc.

✔Focus on Process Improvement

Use the database of complaints to define processes that are important from the

customer’s perspective and to improve the most critical ones. Based on analysis

of the database, make appropriate investments to prevent issues that result in

customer complaints. If you can think of complaints as useful data for making

process improvements in your organization, you will go a long way towards

making changes that will differentiate you and make your work life easier, more

fun, and more responsive to customer needs.

SIX STEPS TO DEALING WITH DIS-SATISFIED CUSTOMERS

1. Listen carefully to what the customer has to say, and let them

finishDon't get defensive. The customer is not attacking you personally; he or she
has a problem and is upset. Repeat back what you are hearing to show that you

have

listened.

2. Ask questions in a caring and concerned manner-The more information

you can get from the customer, the better you will understand his or her

perspective. I’ve learned it’s easier to ask questions than to jump to conclusions.

3. Put yourself in their shoes-As a business owner, your goal is to solve the

problem, not argue. The customer needs to feel like you’re on his or her side and

that you empathize with the situation.

4. Apologize without blaming-When a customer senses that you are

sincerely sorry, it usually diffuses the situation. Don't blame another person or

department. Just say, "I'm sorry about that.”

5. Ask the customer, "What would be an acceptable solution to

you?"Whether or not the customer knows what a good solution would be, I’ve

found it’s best to propose one or more solutions to alleviate his or her pain.

Become a partner with the customer in solving the problem.

6. Solve the problem, or find someone who can solve it— quickly!-

Research indicates that customers prefer the person they are speaking with to

instantly solve their problem. When complaints are moved up the chain

ofcommand, they become more expensive to handle and only add to the

customer's frustration.
MARKETING EFFECTIVENESS

Marketing effectiveness is the quality of how marketers go to market with the

goal of optimizing their spending to achieve good results for both the short-term

and long-term.

Marketing effectiveness has four dimensions:

• Corporate – Each company operates within different bounds. These are

determined by their size, their budget and their ability to make

organizational change. Within these bounds marketers operate along the

five factors described below.

• Competitive – Each company in a category operates within a similar

framework as described below. In an ideal world, marketers would have

perfect information on how they act as well as how their competitors act.

In reality, in many categories have reasonably good information through

sources, such as, IRI or Nielsen. In many industries, competitive

marketing information is hard to come by.

• Customers/Consumers– Understanding and taking advantage of how

customers make purchasing decisions can help marketers improve their

marketing effectiveness. Groups of consumers act in similar ways leading

to the need to segment them. Based on these segments, they make choices

based on how they value the attributes of a product and the brand, in return

for price paid for the product. Consumers build brand value through

information. Information is received through many sources, such as,

 advertising, word-of-mouth and in the (distribution) channel often

characterized with the purchase funnel, a McKinsey & Company concept.

Lastly, consumers consume and make purchase decisions in certain ways.

• Exogenous Factors – There are many factors outside of our immediate

control that can impact the effectiveness of our marketing activities.

These can include the weather, interest rates, government regulations and

many others. Understanding the impact these factors can have on our

consumers can help us to design programs that can take advantage of

these factors or mitigate the risk of these factors if they take place in the

middle of our marketing campaigns.

There are five factors driving the level of marketing effectiveness that marketers

can achieve:

1. Marketing Strategy– Improving marketing effectiveness can be

achieved by employing a superior marketing strategy. By positioning the

product or brand correctly, the product/brand will be more successful in

the market than competitors’ products/brands. Even with the best strategy,

marketers must execute their programs properly to achieve

extraordinary results.

2. Marketing Creative – Even without a change in strategy, better

creative can improve results. Without a change in strategy, AFLAC

was able to achieve stunning results with its introduction of the

Duck (AFLAC) campaign. With the introduction of this new

 creative concept, the company growth rate soared from 12% prior

to the campaign to 28%

following it.

3. Marketing Execution – By improving how marketers go to

market, they

can achieve significantly greater results without changing their strategy or

their creative execution. At the marketing mix level, marketers can

improve their execution by making small changes in any or all of the 4-Ps

(Product, Price, Place and Promotion) (Marketing) without making

changes to the strategic position or the creative execution marketers can

improve their effectiveness and deliver increased revenue. At the program

level marketers can improve their effectiveness by managing and executing

each of their marketing campaigns better. It's commonly known that

consistency of a Marketing Creative strategy across various media (e.g.

TV, Radio, Print and Online), not just within each individual media

message, can amplify and enhance impact of the overall marketing

campaign effort. Additional examples would be improving direct mail

through a better call-to-action or editing web site content to improve its

organic search results, marketers can improve their marketing

effectiveness for each type of program. A growing area of interest within

(Marketing Strategy) and Execution are the more recent interaction

dynamics of traditional marketing (e.g. TV or Events) with online

consumer activity (e.g. Social Media). (See references below, Brand

 Ecosystems) Not only direct product experience, but also any stimulus

provided by traditional marketing, can become a catalyst for a consumer

brand "groundswell" online as outlined in the book Groundswell.

4. Marketing Infrastructure (also known as Marketing Management) –

Improving the business of marketing can lead to significant gains for the

company. Management of agencies, budgeting, motivation and

coordination of marketing activities can lead to improved

competitiveness and improved results. The overall accountability for

brand leadership and business results is often reflected in an organization

under a title within a (Brand management) department.

5. Exogenous Factors - Generally out of the control of marketers, external

or exogenous factors also influence how marketers can improve their

results. Taking advantage of seasonality, interests or the regulatory

environment can help marketers improve their marketing effectiveness.

INDUSTRY PROFILE

BEVERAGE INDUSTRY

A beverage is a drink specifically prepared for human consumption. Beverages

almost always largely consist of water. Drinks often consumed include: Water

(both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy
drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like

milk. Commonly, drinks are filled into containers, like glass or plastic bottles,

steel or aluminum cans as well as cardboard supported packages, like the "Tetra

Pak" or others. Filling of beverages can be done cold, hot, ambient and

coldaseptic filling to mention the latest trend of beverage marketing and

technology.

The beverage is mainly categorized into two major categories based upon the

alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are

further o two types based upon carbon content. These beverages contain Fruit

juices, Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the

fruit content and grain. It may be Wine, Brandy, Whisky or Beer.

NoGraBeer,Wine,Colas,AlcoholFruitJuicarbonatBever-
nAlcocarbBaseaeohBeverdges,olicnateBedagveserages
CSoda,BrandWhiskyffee,
Tonic Waterea,
Packaged Water
FACTORS DRIVING DEVELOPMENTS IN INDIAN BEVERAGES
SECTOR

India is a growing and developing country which is having a very high

economic growth with the drastic increase into the population size. Due to the

developing economic condition, there is increase in the competition among the

manufacturers, retailers, dealers to promote their products at competitive prices.

The increase in the India population has given a high demand of beverage market

products. The Indian beverage market is segmented into the two major segments

–Alcoholic and Non-Alcoholic Beverages.

Again these categories of beverages are sub-divided into the carbonated and fruit

based drinks. Tea and Coffee also contributed majorly into the Beverage Industry.

Indian Beverage market distribution and marketing channel is highly networked

and has a very approach to the customers. Due to the globalization and

technological developments there is highly innovative products are coming into

the Indian Beverage markets which are appreciated by the Indian population.

In India, here are various forms of beverage market get to be seem in the form of

retailers, Restaurants, Coffee shops, Sport events, Hotels etc.

There are certain factors which are driving developments into the Indian

Beverage sector:

• Economic growth

• Population growth
 • Competition for Raw materials

• Power of retailers

• Globalization / Regionalization

• Research & Development

• Technological Developments
• Food safety and regulation

• Consumer Demands and trend

KEY RISKS TO THE BEVERAGE INDUSTRY

As water is the essential ingredient in a beverage product, as well as vital for

cooling and cleaning during the production process. So when one considers that

India’s current water supply is approximately 740 billion m3, but it has been

estimated that by 2030 demand for water in India will grow to almost 1.5

trillion m3, the industry will clearly be facing a major problem there. There will

simply not be enough water. Yet China, India and Indonesia are all a focus for

beverage companies due to their lower market penetration. There can be little

doubt, however, that water security issues will be one of the biggest threats to

developing market potential. Let’s first take a look at the alcoholic drinks

industry. The market growth for alcoholic drinks is particularly strong in

emerging Asian economies, driven by a range of socio-economic factors. These

include favourable demographics such as the greater proportion of young people

reaching the legal drinking age and increased per capita income and

urbanization in countries such as India and China. The water bottles market is

also booming. The market for bottled water is developing rapidly in Asia. Health
concerns of polluted municipal water sources and increasing water shortages are

expected to be key drivers of this, but wealth and the increase in Asian middle

classes will play the most significant role. Consumer demand for purity, hygiene

and convenience is on the increase. In India the market is expected to grow by

100 percent over the next five years and there are currently more than 2,000

bottled water producers. Whilst there has been a backlash against bottled water in

developed countries as the environmental impact of plastic bottles becomes more

apparent, in Asia it looks set to become an

increasing trend.

FUTURE PROJECTIONS OF INDIAN BEVERAGE INDUSTRY

• Beverage Industry is projected to have overall growth between 8% -8.5 %

• Indian non-alcoholic drinks market is expected to at a CAGR of around

20% during 2011-2015.

• India Alcoholic Drinks Market to Grow Over 14% CAGR during

20112015.

• The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion

Liter Mark By 2015.

• The sectors which are projected to achieve excellent growth of 20% from

wine.

• Fruit/vegetable juice market will grow at a CAGR of around 30 per cent.

 CHAPTER 2
 RESEARCH DESIGN

In 1982, Dietrich Mateschitz became aware of products called "tonic drinks",

which enjoyed widespread popularity throughout Far East. His idea to market
these functional drinks outside Asia evolved whilst he sat at a bar at the
Mandarin Hotel in Hong Kong.In 1984, Mateschitz founded Red Bull. He
finetuned the product, developed a unique marketing concept and started selling
Red Bull Energy Drink on the Austrian market in 1987. This was not only the
launch of a completely new product, in fact it was the birth of a totally new
product category.Product range has widened and the customer has evolved.

TITLE OF THE STUDY

“A Study on Consumer Satisfaction and Marketing

Effectiveness of Red Bull energy drink.”
STATEMENT OF THE PROBLEM

Customer satisfaction plays a crucial role in enabling an organization to change

and develop with customers. Keeping the existing customer contended is

generally much easier, takes less time and involves less expense. The reason for

this is that it takes more time to find new prospective customer. In this context

study is conducted with special reference to customer satisfaction. A company

can earn more profits only when it has strong customer care towards product and

services offered by the company. So to have strong customer care it has to provide

a competitive price further advertising to increase.

OBJECTIVES OF THE STUDY

1. To understand the need for an Energy Drink in the market.

2. To have a better understanding about its features keeping in mind the

consumer needs.

3. To study the level of consumer expectation.

4. To learn the perception of the public towards the Energy Drink relating to

various parameters. (Safety, Hygiene, Affordability, etc).

5. To analyze the nearest competitors of Red Bull Energy Drink.

6. To ascertain the factors that affects the choice of Red Bull as opposed to

its competitors.
SCOPE OF THE STUDY

This study includes Customer’s response and awareness towards the brand,

products and services of Red Bull. The results are limited by the sample size 75

numbers and therefore the opinion of only selected customers is taken into

consideration. Mainly this study is conducted in Bangalore and the scope is

limited.

OPERATIONAL DEFINITION

1. Customer- A customer (also known as a client, buyer, or purchaser) is

usually used to refer to a current or potential buyer or user of the products

of an individual or organization, called the supplier,seller, or vendor.

2. Customer Satisfaction- Abusinessterm, is a measure of how products and

services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or

percentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals."

3. Marketing Effectiveness- It is the quality of how marketers go to

marketwith the goal of optimizing their spending to achieve good results

for

both the short-term and long-term.

4. Respondents- A person who replies to something, esp. one supplying

information for a survey or questionnaire or responding to an

 advertisement.

5. Objective- An end that can be reasonably achieved within an expected

timeframe and with availableresources.

6. Energy drink- Energy drinks are soft drinks whose producers advertise

that they "boost energy.

7. Buying- To acquire in exchange for money or its equivalent purchase.

RESEARCH METHODOLOGY
The research will be carried out in various phases that constitute an

approach of working from whole to part. It includes subsequent phases trying to

go deeper into the user’s psyche and develop a thorough understanding of what a

user looks for while buying a energy drink.

The first phase is completely internal where it is stormed over the most effective
route of action, considering that it is product with minimal main stream
advertising.

The second phase is with some respondents who will be interviewed with the help

of questionnaire keeping in mind the time and cost constraints

TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected

through survey method, which alone was not sufficient. Hence Secondary data

was collected to study successfully.

 • Primary data-

It will be collected using a questionnaire. A well laid out questionnaire will

be designed for this purpose. Also personal interviews will be conducted

with people in organization as well as consumers and

prospective buyers.

• Secondary data-

This information will be obtained from secondary sources which include

newspapers, magazines, reliable websites, internal reports and other

published sources.

SAMPLE DESIGN
The research was carried out in various phases that constituted an
approach of working from whole to part. It included subsequent phases trying to
go deeper into the user’s psyche and develop a thorough understanding of what
the user looks for while buying an energy drink. For the customer satisfaction
study a sample of 75 persons was chosen from the in Bangalore city. The sample
was judgmental and methodology was convenient random sampling.
Size of Sample 75
Sampling technique Convenient Random Sampling

method
Location from which samples were Bangalore city

taken
PLAN OF ANALYSIS
• Raw Primary data has been collected with help of questionnaire. The raw

data has been tabulated with the help of table. From the tables, concept,

analysis and inferences are drawn which in turn was used for

interpretation. Based on, these charts were prepared to better pictorial

understanding of the study.

• From the set of inferences and interpretation, conclusion have been drawn

which is followed by suggestions, keeping the objectives in mind

throughout the study.

OVERVIEW OF CHAPTER SCHEME
Chapter-1 Introduction- Its all about the Introduction part. It mainly consists of

introduction to Marketing with its types, approaches, research and market

segmentation. Then comes introduction about Customer Satisfaction with its

steps, customer loyalty and concepts, handling customer complaints, how to deal

with dis-satisfied customers and objectives of customer satisfaction program.

Also talks about the marketing effectiveness. Later about beverage

industry till date, Indian beverage industry and its recent trends.

Chapter-2 Research Design- It consists of the title of the study, statement of

problem, objectives and scope of the study, operational definitions, research

methodology, data collection, sample design, plan of analysis and finally the

limitations of the study.

Chapter-3 Company Profile- This chapter contains the historical background of

the company Red Bull, company’s vision and objective, Red Bull products,

marketing plan and SWOT analysis of Red Bull.

Chapter-4 Data Analysis and Interpretation- This chapter consists of the

analysis and interpretation from the data collected through questionnaires, tables

and graphs representing it.

Chapter-5 Findings, Conclusion and Suggestions- This chapter contains the

findings drawn from the study and final conclusion about the whole project.

Also few suggestions are posted.

 CHAPTER 3
COMPANY PROFILE
 Company Overview

In 1982, Dietrich Mateschitz became aware of products called "tonic drinks",

which enjoyed widespread popularity throughout Far East. His idea to market

these functional drinks outside Asia evolved whilst he sat at a bar at the

Mandarin Hotel in Hong Kong. In 1984, Mateschitz founded Red Bull. He

finetuned the product, developed a unique marketing concept and started selling

Red Bull Energy Drink on the Austrian market in 1987. This was not only the

launch of a completely new product, in fact it was the birth of a totally new

product category.

In 2008, Red Bull launched its own Cola: Red Bull Simply Cola – Strong &

Natural. Very much in line with the needs of today's consumers, Red Bull Cola -

unlike traditional colas - only contains ingredients of 100% natural sources.

In 2009, Red Bull extended its product portfolio with Red Bull Energy Shots:

Starting in the USA, now gradually rolling out globally.

Around 4 billion cans of Red Bull are consumed every year. The responsibility

for the success of the world's No. 1 energy drink is shared by the company's 6,900

employees around the world. Today Red Bull has annual sales of approx. 4 billion

cans in 160 countries..As of the end of 2009, Red Bull employed 6,900 people in

160 countries (end 2008: 5,683 in 148 countries).

Despite the ongoing difficulties presented by the global economic downturn,

plans for growth and investment in the business year 2010 remain - typically for

Red Bull - very ambitious, but continue to rest on a solid and conservative

financial footing.

Marketing Plan Outline: Red Bull

Marketing Background

Company and Product Review

In 1982, Dietrich Mateschitz, creator of Red Bull alongside ChalermYoovidhya,

saw where Japan and Thailand were heading in the energy drink market and

decided they wanted a piece of the pie. By 1987, Austria proved to be a difficult

market for Red Bull to survive in and soon Mateschitz expanded into Hungry and
the rest of Germany. After expanding across Europe with a lot of trial and error

Red Bull was $12 million in the hole.

Rather than scrapping Red Bull as a loss, Mateschitz fired all his staff and hired a

marketing firm to help him target nightclubs and students. Buzz marketing

became the main focus of Red Bull’s marketing plan, and soon students were

pounding campus pavement and driving around in Mini Coopers with a big Red

Bull can strapped on top with free samples. His buzzmarketing proved to be not

only cost effective, but the very thing that gave Red Bull its appeal. Although Red

Bull was not welcomed with open arms in all countries, such as France, Denmark

and Norway, it was growing and expanding.

Mateschitz soon realized that an extreme sporting event was a profitable avenue

to take Red Bull down. Red Bull started supporting approximately 500 extreme

sports athletes and hosting exclusive parties for these rock star competitors. By

1997, Red Bull’s buzz marketing strategy proved successful in the U.S. as well.

Events are now hosed throughout the world ranging from B.A.S.E. jumping to

surfing. Their tagline, “gives you wings” is known worldwide and Red Bull

sponsors public and private events such as the X-games and the Red Bull Air

Races.

Distribution/Penetration
Red Bull is distributed in most grocery store, convenience store, and gas station

across the U.S. such as HyVee, SuperSaver, Safeway, Trader Joes, Conoco, Quick

Trip, and 7‐11. It is also found in discount/supercenter stores such as Target and

Wal‐Mart. In

2002,

Red Bull completed its distribution share and the product is now available in all

50 states (Todd, Heather).

Target Market Statement

Red Bull’s target market are young, on the go people, who enjoy extreme sports

and lead an active nightlife, anywhere from 18‐35, who lead an active lifestyles,

and are skeptical of traditional marketing (Swartz, Jon).

Pricing

The pricing of Red Bull varies from if the consumer is buying an individual can,

which the price is $1.99, compared to a case of Red Bull. The average price of a

case of 24 Red Bull is $65.99, but depending upon the distributor, the prices may

vary. Pricing for energy drinks vary by brand, but Red Bull is typically $1.99

(Dolan, Kerry).
Sales and Market Share Analysis

The sale of Red Bull has only increased from the time Mateschitz introduced it

back in 1987. In 2008 Red Bull’s net sales was $4.28 billion, which was up 7.9%

from the previous year. A contributor to these sales is the fact that Red Bull

started to distribute more to the Middle East, Far East and South America (DPA).

In “some countries, Red Bull commands 80% of the market share. In the U.S.

where Red Bull enjoys a 47% share of the energy drink market, sales are growing

annually at a 40% clip” (Dolan, Kerry).

Competitive Analysis

Red Bull can be easily copied because the ingredients were printed on the can

and the drink was not patented. Even

though the taste of Red Bull did not do well in taste tests, it was the marketing

strategy that made Red Bull so successful (Gschwandtner, Gerhard).

In the late 80s, around the same time Red Bull was spreading across Europe,

American’s were drinking Jolt Cola, which was advertising as having “all the

sugar and twice the caffeine as Coke”. It can be said that Red Bull was the first

energy drink to be in competition with soft drinks but also created the new

energy drink category in most markets. After Red Bull hit the market hard in the

late 90‐the present, many other companies have tried to hop on the energy
drink bandwagon such as when Hansen, the natural soda company, created

Monster Energy.

Red Bulls has approximately 100 major competitors, such as 5 Hour Energy Drink

and Rock Star Energy Drink. Not only do energy drink companies fall in these 100

major competitors of direct competition but, there is also the sector of soft

drinks that have proven to be a viable opponent. Coca‐Cola (Full Throttle &

Monster), Pepsi (AMP Energy Drink) and Gatorade (Rebranded as G and G2) are

three of Red Bulls major competitors.

Many celebrities have also taken on the role of putting their face to an energy

drink label, such as Ice‐T creating an energy drink called Liquid Ice, Nelly’s Pimp

Juice and Lil’ John’s, Crunk Juice.

However, in the end, no other energy drink has been able to claim Red Bull’s 70‐

90% of the market share it has in over 100 countries worldwide, despite these

competitors (Penalty, Jeff).

Product Awareness and Attributes

Red Bull is known worldwide not only because of what’s inside the can but

because of the lifestyle the brand represents. Red Bull does not take advantage

of the traditional media, instead they rely on sponsoring extreme sporting

events and they give away free samples of Red Bull at the events. “Red Bull relies
heavily on bars and night clubs for its sampling events, alternative sports have

also proven to be a successful producttrial arena.

The company underwrites a number of extreme sports

competitions and sponsors about three dozen alterna‐athletes” (Hein, Kenneth).

Demand Analysis

The demand of Red Bull increases each year and that is evident with how rapidly

Red Bull has spread not only all over the United States but the world. From just

looking at the market share analysis of Red Bull, sales are increasing every year

and sales are expected to keep rising with each coming year. Even though Red

Bull’s demand has increased with each coming year, the “Red Bull’s U.S. market

share has fallen from 75% in 1998 to roughly 47% today” (Dolan, Kerry).

Purchase Rates and Buying Habits Red Bull consumers are loyal purchasers. They

buy Red Bull for its high energy kick before a class, before a work‐out, before

performing in a sporting event or anytime they need to get an extra boost to

perform at top level. Red Bull is also purchased to drink recreationally during

social functions and at nightclubs and bars to create various alcoholic beverages.

Problems and Opportunities:

Problems: Red Bull is not a patented drink product, therefore anyone is able to

pick up a can, read the ingredients and go into business for themselves. This is

one of the reasons the market is flooded by competition. In addition to this Red
Bull, along with all energy drinks and supplements, has received negative press

from a medical standpoint.

High levels for caffeine and sugar can create negative effects on heart rate and

blood pressure along with dehydration.

Opportunities: Red Bull is one of the most popular energy drinks in the world.

They earned this title by intelligent, consistent marketing. Red Bull has the

opportunity to maintain their position and grow by continuing to target their

niche target audience by heavily using untraditional marketing tactics and

traditional marketing tactics sparingly.

This will not only maintain their dominance in the energy drink market, it will

strengthen their relationship with their target audience (Mr. Burgundy).

SWOT Analysis

Strengths

• Most popular energy drinks in the world.

• Red Bull represents a specific, edgy subculture, while still being consumed by

a variety of demographics.

• Three different versions (Regular, Sugar‐Free, and Cola) allow for variety

without spreading the brand too thin.

Opportunities

• Increase awareness of Red Bull’s dominance in the energy drink market

• Strengthen the relationship between Red Bull’s target audiences.

• Increase Red Bull’s sales in specific markets such as the Dakotas, Tennessee &

Ohio.

Weaknesses

• Not a patented drink product

Threats

• Health risks associated with over consumption.

• Competition is increasing.

Marketing PlanSales

Objectives

We want to maintain our position as the leader in energy drinks and the face of

extreme sports worldwide, while expanding our reach in the U.S. Currently

North Dakota, South Dakota, Tennessee, and Ohio are lagging in Red Bull

awareness and consumption. We want to increase distribution of Red Bull in

these states by 5% and increase brand awareness by 85% in these markets while

maintaining our national presence.

Target Market

(Malinauskas, Brenda et.al.)

The uniqueness of Red Bull is that the company does not follow traditional

media guidelines and that is why they chose the untraditional platform (Hein,

Kenneth). Their target audience is very receptive to this. As stated above, the

target audiences of Red Bull are people between the ages of 18‐35, who lead

an active lifestyle and what to have a sense of belonging in their community,

but in an untraditional way. But there is much more to Red Bull’s target

audience. Not only do they not trust traditional media they are turned off by

it. These antiestablishment and adventure seeking individuals that do not

follow the rules and needed Red Bull needed buzz marketing/extreme sports in

order to tap into them (Rodgers, Anni Layne).

The target audiences of Red Bull are people who work hard and play hard.

Theytake their profession very seriously but like to have fun in their free time.

From the college classroom to the boardroom, these people don’t check out of

life at five o’clock. The common thread connecting Red Bull consumers is that

they all enjoy staying active by participating in sporting events, watching

sporting events, playing video games or socializing

(Hein, Kenneth).
Marketing Objectives and Strategies

Our marketing objective and strategy is to launch localized events to attract

youth on college campuses and at sporting events in North Dakota, South

Dakota, Ohio, and Tennessee. These events will feature some of our sponsored

athletes making guest appearances and free give‐a‐ways of Red Bull and Red Bull

products. We will host a Soapbox Race and a FlugtagFlightlab event the in major

cities in these states in order boost awareness and consumption of Red Bull in

those areas. In addition, Red Bull vehicles will make their way across the United

States, specifically in larger cities, promoting the brand and giving away free

samples. The Red Bull vehicle routes will travel with reps to college campuses in

major cities promoting the brand and its lifestyle. A million samples will be

distributed by these Red Bull Reps and have a code on the bottom of each can.

Also, an additional million cans will be distributed across the U.S. to be sold by

retailers. Thesecodes can be entered online to win free Red Bull, a VIP trip for

two to the 2010 winter X Games in Aspen, CO, a VIP trip for two to the summer

X Games in Los Angeles, CA, or free entry passes to the Soapbox Races, or Flugtag

Flight lab events hosted in our target states.

National, one in 50 can codes will give away free Red Bull, four in two million will

give away the two winter and two summer X Game packages. In our target

states, 200 cans will award recipients with passes to their local Soapbox Racing

and Flugtag Flight lab events.

As well as targeting North Dakota, South Dakota, Ohio and Tennessee, there will

also be two groups of two people assigned to each state. These Mini Cooper

teams will go to colleges and major cities promoting Red Bull and advertising the

Winter and Summer X Games.

Positioning Strategy

R&A Agency will continue to position Red Bull and Red Bull events as a unique,

off the radar subculture. Spotting the Red Bull vehicle will be an event in itself,

creating buzz on the streets and water cooler talk. By using Red Bull to guide

drinkers to Red Bull events we will succeed in increasing consumption and

awareness in lagging markets and stay consistent across the U.S. The events will

be a place where like minded people can come together, have fun, be creative,

blow off some steam and feel like a part of the exclusive Red Bull family. R&A

Agency will not change Red Bulls existing tagline, Red Bull Gives You Wings,

because we feel the company has already established a tag line that many

people already know about. R&A Agency will continue to use the tag line on

products and just make the tag line more evident on products, such as on the

give‐a‐ways that the college Reps will be giving out.

Marketing Mix Implementation Tools

“Red Bull Gives You Wings” across the United States Red Bull is an energy drink

that represents a lifestyle, and we want to bring that lifestyle to the masses. Our
marketing mix will consist of Public Relation promotions, non‐traditional

advertising, and sponsorships of extreme sports athletes and events. By using

this mix, we will attract traditional media to cover our product without creating

traditional ads ourselves. We plan to keep the price of Red Bull the same as it is

now, but do free give away during PR events and during sponsored events.

Our PR event is a cross‐country road trip in Red Bull’s Mini Coopers. The road

trip will consist of 100 two‐men teams that will be making stops at major

colleges and universities across the U.S., including Yale, Berkley, Notre Dame,

and the University of Nebraska‐Lincoln. In addition to the stops in major cities,

special attention will also be given to North Dakota, South Dakota, Ohio, and

Tennessee to increase consumption and brand awareness. During their stops,

they will host events that give‐a‐way free Red Bull and Red Bull products as well

as other prizes such as flat screen T.V.s and Play station 3s. It will be a year long

event of appearances by the Red Bull Mini Coopers at college campuses in major

cities. These colleges will be contacted ahead of time to arrange free interns to

help plan and set up the events. Students will be able to play video games, test

drive the

Mini Cooper, win prizes, all while drinking Red Bull.

Red Bull will continue to have heavy sponsorship of their 500+ athletes and at

the Winter and Summer X Games. Clothing, banners, mini events will be the

main tools during these sponsorships that will be picked up by the local and
national television and radio stations covering these athletes careers and

sporting events.

Marketing Plan Budget and Calendar-Part of our 50 million dollar budget is

meant to focus on North Dakota, South Dakota, Tennessee and Ohio to make

them feel more as if they are part of the Red Bull community by tying them into

major events that Red Bull sponsors. The bulk of our 50 million dollar budget will

be going towards sponsoring the Winter and Summer X Games as well as

purchasing give‐a‐ways.

RED BULL PRODUCTS

Red Bull Energy Drink Red Bull Energy

Drink is a functional beverage with a

unique combination of ingredients. It

has been specially developed for times

of increased mental and physical

exertion. Red Bull Energy Drink vitalizes

body and mind.

Red Bull Energy Drink

- increases performance

- increases concentration and reaction speed

- improves vigilance

- improves the emotional status

- stimulates metabolism

Red Bull’s effects are appreciated throughout the world by top athletes, busy

professionals, active students and drivers on long journeys.

Red Bull Sugarfree

Red Bull Sugarfree is a functional beverage with

a unique combination of ingredients. It has been

specially developed for times of

increased mental and physical exertion.

Red Bull Sugarfree vitalizes body and mind.

RED BULL COLA

The cola from Red Bull is a unique blend of ingredients, all from 100 %

natural sources. In addition, it is the only cola which contains both the

original Kola nut and the Coca leaf. The result

is a natural, not-toosweet cola taste, which

comes from using the right plant extracts.

Available in
AUSTRIA,SWITZERLAND,UNITEDKINGDOM, ITALY IRELAN

D,RUSSIA.USA, BELGIUM/LUXEMBURG

RED BULL ENERGY SHOTS

Red Bull Sugarfree Shot is a concentrated Red Bull

Sugarfree in a 60ml bottle with the same functional

ingredients as in a Red Bull Sugarfree 250ml can and

only 2 calories.

Buyer Behaviour Analysis For Red Bull

In 2008, the UK Energy and Sport drink market is estimated to be worth £650

million, with growth projected for the future. Red Bull stands as the market

leader in not only the UK market, but also worldwide. The market is decidedly

young, focusing mainly on the 16 to 24 year old segment. The product itself and

its effectiveness is highly subjective, shaped by previous conceptions, brand

image and health knowledge. Research has shown that these factors play a role

in not just the perception of energy conferred by the product, but also the actual

effectiveness. This study hopes to quantify the multitude of factors shaping the

consumer buying and usage process with respect to the product and the market.
To analyze this effectively, the study focuses on the consumer perceptions of

the energy and sport drink market, which are closely related, the perception of

Red Bull with respect to its current competitors and the attitudes and opinions

specific to the product. In order to explore our research objectives, a focus

group was conducted utilizing eight respondents, 6 female and 2 male. The

group, with respect to age, was firmly rooted in the core demographic of product

users. Questioning was guided along the lines of the three research groupings

and utilized an open ended style to illicit valuable insight about the product. Data

was also gathered with respect to quantifiable values on taste, image and other

factors relative to the product and its competition.

Findings were analyzed in the context of three models: Fishbein, Means-end

chain and the consumer decision process. Findings illustrated the image of Red

Bull as a premium market leader within a product classification that is low

involvement and highly contingent on the image and perceived efficacy of the

product. Consumer value perception played a lower role than assumed from

secondary research, with taste and effectiveness heavily shaping consumer

decisions. Within the means-end chain, the product was found.

Graph showing Energy Drin k Market share

 CHAPTER 4

DATA ANALYSIS
ANDINTERPRETATioN
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE
RESPONDENTS BASED ON AGE

AGE NO. OF PERCENTAGE

RESPONDENTS
20-24 30 45%
25-29 19 26%
30-34 14 18%
Above 35 12 11%

TOTAL 75 100%

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.
GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE
RESPONDENTS BASED ON GENDER
TABLE No.3
TABLE SHOWING-THE OCCUPATION OF
RESPONDENTS
OCCUPATION NO.OF PERCENTAGE
RESPONDENTS

STUDENT 29 38%

GOVERNMENT 9 12%
SERVICE
EX-SERVICEMEN 3 4%

PROFESSIONAL 21 28%

SELF-EMPLOYED 13 18%

TOTAL 75 100%

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 exserviceman 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.

TABLE No.3
TABLE SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
INCOME GROUP NO. OF PERCENTAGE
RESPONDENTS
LESS THAN 1,20,000 39 52%

1,20,001-3,60,000 10 14%

3,60,001-7,20,000 14 18%

ABOVE 7,20,000 12 16%

TOTAL 75 100%

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.
TABLE No.4: TABLE SHOWING- THE RESPONDENTS INVOLVEMENT
WITH ANY EXTRACURRICULAR

ACTIVITIES ON CAMPUS OR OUT OF OFFICE

YES/NO NO. OF PERCENTAGE OF

RESPONDENTS REPONDENTS

YES 23 30%
NO 52 70%
TOTAL 75 100%

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.
GRAPH No.5
GRAPH SHOWING- THE RESPONDENTS INVOLVEMENT WITH ANY
EXTRACURRICULAR
ACTIVITIES ON CAMPUS OR OUT OF OFFICE
TABLE No.6
TABLE SHOWING- THE RESPONDENTS
CONSUMPTION OF RED BULL
CONSUMPTION NO. OF PERCENTAGE
RESPONDENTS OF
RESPONDENTS
EVERYDAY 15 19%
2-3 DAYS A 20 27%
WEEK
4-5 DAYS A 12 16%
WEEK
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.

GRAPH No.6
GRAPH SHOWING- THE RESPONDENTS
CONSUMPTION OF RED BULL
TABLE No.7
TABLE SHOWING- THE INCREASE IN CONSUMPTION OF RED BULL
BY THE
RESPONDENTS AFTER ADVERTISEMENTS
YES/NO NO. OF PERCENTAGE
RESPONDENTS
YES 47 62%

NO 28 38%

TOTAL 75 100%

Analysis

From the table it clearly shows that 62% of the respondents are affected by the

advertisements and 38% of them are not.

Interpretation
 TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS
OF RED BULL
MEDIA NO. OF PERCENTAGE
RESPONDENTS
MAGAZINES 24 32%
FRIENDS 19 25%
TV ADS 11 15%
WEBSITE/BLOGS 15 20%
OTHER SOURCES 6 8%
TOTAL 75 100%

Analysis
As we can see here the major promotional tool which is influencing the customers
is Magazines and friends which is around 32% and 25% respectively, after that
the source of awareness among customers is a mixed response where in 20% from

website/blogs, 15% from TV ads and 8% from other sources. Interpretation

It clearly shows that magazines and friends create high awareness of Red Bull
amongst people.
TABLE No .9
TABLE SHOWING- THE FACTORS INFLUENCING TO BUY RED BULL
FACTORS NO. OF PERCENTAGE
RESPONDENTS
RELIEVING 15 20%
FATIGUE
FOR STAYING 18 24%
AWAKE
DAILY ROUTINE 13 17%

INCREASE 18 24%
CONCENTRATION
HANGOVER 11 15%
REMEDY
TOTAL 75 100%

Analysis
From the above table it is clear that 20% of respondents buy Red Bull for relieving
fatigue, 24% of them for staying awake, 17% of them daily routine, 24% of them
for increasing concentration and 15% for hangover remedy.

Interpretation
It is clear that there are majority of reasons supporting the consumption such as
fatigue, for staying up and to increase the level of concentration.
GRAPH No.9
GRAPH SHOWING- THE FACTORS INFLUENCING TO BUY RED BULL
TABLE No.10
TABLE SHOWING- PURCHASING PLACE OF RED
BULL BY RESPONDENTS
PLACE NO. OF PERCENTAGE
RESPONDENTS
CONVINIENCE 16 22%
STORE
SUPER MARKET 44 58%

DRUG STORE 6 8%

OTHERS 9 12%

TOTAL 75 100%

Analysis

From the above table it is clear that 22% of the respondents buy Red Bull in

nearby convenient store, 58% of them in super market, 8% of them in drug store

and 12% by other means.

Interpretation
It is clear that super markets are on top of retailers in the sales of drink.
TABLE NO.11
TABLE SHOWING- THE RESPONDENTS FACTORS INFLUENCING TO
CHOOSE RED BULL
FACTORS NO. OF PERCENTAGE
RESPONDENTS
ENERGY 25 34%
PRICE 13 17%
TV COMMERCIALS 9 12%
ADS ON NEWSPAPER 4 6%
MARKETING 7 10%
CAMPAIGN
PACKAGE 4 5%
BRAND 6 7%
TASTE 6 7%
WORD OF MOUTH 1 2%
TOTAL 75 100%

Analysis
34% of the respondentsprefer to buy their bike drink for energy, 17% of them for

price, 12% of them due to tv commercials, 6% from ads on newspapers, 10% due

to marketing campaign, 5% from package, 7% each for brand and taste

respectively and 2% due to word of mouth.

Interpretation
It is clear that the energy drink provides rejuvenation and replenishes energy into

the people consuming it.

GRAPH NO.11
GRAPH SHOWING- THE RESPONDENTS FACTORS INFLUENCING TO
CHOOSE RED BULL
TABLE No.12
TABLE SHOWING- THE WEEKLY EXPENDITURE ON
RED BULL BY RESPONDENTS
AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS
RANGE OF RS.100 13 17%
RANGE OF RS.200 9 12%
RANGE OF RS.300 12 16%
RANGE OF RS.400 6 8%
RANGE OF RS.500 19 26%
MORE THAN 16 21%
ABOVE
TOTAL 75 100%

Analysis
From the above it is clear that 17% of the respondents spend Rs.100 on Red bull

weekly, 12% of them spend Rs.200, 16% of them spend Rs.300, 8% of them

spend Rs.400, 26% of them spend Rs.500 and 21% of respondents spend above

Rs.500.

Interpretation
It is clear that majority of the respondents are around the 500Rs mark and spend
around 500Rs on the energy drink.
TABLE No.13
TABLE SHOWING - THE RESPONDENTS OPINION OF
PREFERING ANY OTHER ENERGY DRINK OVER RED BULL
YES/NO NO. OF PERCENTAGE
RESPONDENTS
YES 17 23%

NO 58 77%

TOTAL 75 100%

Analysis
Maximum number of people (77%) doesn’t prefer any other energy drinkover
Red Bull and 23% of respondents prefer other energy drink also.

Interpretation
It is clear that red bull energy drink dominates the energy drink market and

consumers prefer red bull over other energy drinks.

TABLE NO.14
TABLE SHOWING - THE RESPONDENTS OPINION IF
RED BULL IS OVER PRICED OR NOT
RATING NO. OF PERCENTAGE
RESPONDENTS
YES 16 22%

NO 59 78%

TOTAL 75 100%

Analysis
From the above table it is clear that 78% of the respondents felt Red Bull is not

over priced and 22% of them felt its cost is high.

Interpretation

It is clear that majority of the respondents feel red bull is money to worth product

and not over priced for the quality of the drink.

GRAPH No.14

GRAPH SHOWING - THE RESPONDENTS OPINION IF RED BULL IS

OVER PRICED OR NOT
TABLE No.15
TABLE SHOWING -THE OPINION OF THE
RESPONDENTS OF FACING DIFFICULTIES IN FINDING RED BULL AND
THEIR SATISFACTION
LEVEL WITH RESPECT TO AVAILABILITY OF RED
BULL

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 13 18%
NO 62 82%
TOTAL 75 100%
RESPONSE FOR NO. OF PERCENTAGE
SATISFACTION RESPONDENTS
YES 64 85%
NO 11 15%
TOTAL 75 100%
Analysis
The above table shows that 82% of the respondents accept that there are no
difficulties in finding Red Bull in market and 18% felt they have difficulties. Also
the satisfaction level is 85% of the respondents are extremely satisfied and 34%
are not satisfied with respect to availability of Red Bull.
Interpretation
It is clear that there is ample availability of the drink in the market and not much
difficulty to access it.

GRAPH No.15
GRAPH SHOWING -THE OPINION OF THE
RESPONDENTS OF FACING DIFFICULTIES IN FINDING RED BULL AND
THEIR SATISFACTION
LEVEL WITH RESPECT TO AVAILABILITY OF RED BULL

Point of Satisfaction

TABLE No.16
TABLE SHOWING - THE RESPONDENTS OPINION
ABOUT THE RED BULL SUPREMACY OVER THE
COMPETITORS IN THE MARKET
FACTORS NO. OF PERCENTAGE
RESPONDENTS
PRICE 13 18%

TASTE 28 37%

BRAND IMAGE 24 32%

PROMOTION 10 13%
 TOTAL 75 100%

Analysis
From the above table it is clear that 18% of the respondents felt price as the

answer, 37% of them felt taste is the reason for the supremacy, 32% of them felt

its brand image and 13% of them felt promotion.

Interpretation
It is clear that red bull is chosen unanimously for its taste over other factors that

support to the strengths of the energy drink.

GRAPH No.16
GRAPH SHOWING - THE RESPONDENTS OPINION ABOUT THE RED
BULL SUPREMACY OVER THE
COMPETITORS IN THE MARKET
TABLE NO.17

Table showing Energy Drink Market share, (with sales and

availability in retail shops)
BANGALORE SJ XXX Red Cloud 9 Others
Bull
North 8 41 6 11
East 5 20 5 10
West 5 26 18 16
South 3 27 6 11
Central 9 49 5 17
Total/326 30 163 40 65
Analysis

From the above table it can be analyze that out of 326 retail shops, Red Bull has

maximum sales and availability (163 shops), followed by Cloud 9 (40 shops)

and then SJ XXX (30 shops) (being in the introductory phase of its life cycle).

Interpretation

From the above data it can be interpreted that Red Bull has the maximum

availability in 163 retail shops out of 326 shops.

TABLE NO.17

Table showing Energy Drink Market share, (with sales and

availability in retail shops)
 CHAPTER 5
FINDINGS AND CONCLUSION
FINDINGS

1. 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.

2. It is clear that most of the users of Red Bull are males mostly because men

are addicts to it.

3. 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.

4. 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.

5. It clearly shows that majority of the respondents do not participate in any

extracurricular activities.

6. It is clear that in customers there is a high regularity amongst consumption

by customers in a week.

7. It is clear there is an increase in consumption of Red Bull after

advertisements and hence this marketing strategy has benefited.

 8. It clearly shows that magazines and friends create high awareness of Red

Bull amongst people.

9. It is clear that there are majority of reasons supporting the consumption

such as fatigue, for staying up and to increase the level of concentration.

10.It is clear that super markets are on top of retailers in the sales of Red bull

energy drink.

11.It is clear that the energy drink provides rejuvenation and replenishes

energy into the people consuming it.

12.It is clear that majority of the respondents are around the 500Rs mark and

spend around 500Rs on the energy drink.

13.It is clear that red bull energy drink dominates the energy drink market

and consumers prefer red bull over other energy drinks.

14.It is clear that majority of the respondents feel red bull is money to worth

product and not over priced for the quality of the drink.

15.It is clear that there is ample availability of the drink in the market and not

much difficulty to access it.

16.It is clear that red bull is chosen unanimously for its taste over other factors

that support to the strengths of the energy drink.

CONCLUSION

From the study it is clear that majority of users are between 20 and 29 years
i.e. younger generation and users of Red Bull are Professional males including
some students because it helps in focusing and staying awake.
 Red Bull is placing their products in the appropriate and reasonable price
range and in customers there is a high regularity amongst consumption by
customers in a week. Also there is an increase in consumption of Red Bull after
advertisements with magazines and friends creating high awareness of Red Bull
amongst people.

There are majority of reasons supporting the consumption of Red Bull such
as fatigue, for staying up and to increase the level of concentration. Super markets
are on top of retailers in the sales of Red bull energy drink. The energy drink
provides rejuvenation and replenishes energy into the people consuming it and
customers are around the 500Rs mark and spend around 500Rs on the energy
drink. So v can say Red Bull energy drink dominates the energy drink market and
consumers prefer red bull over other energy drinks.

Red Bull is money to worth product and not over priced for the quality of
the drink and there is ample availability of the drink in the market and not much
difficulty to access it. From this we can conclude that Red Bull is chosen
unanimously for its taste over other factors that support to the strengths of the
energy drink.

CHAPTER 6
SUGGESTIONS
SUGGESTIONS

1. The company should come up with new, better and

attractive flavors to attract all segments of the market.

 2. The company can come up with different beverages other than energy

drinks.

3. The company can reduce prices and introduce promotional campaigns so

larger mass can try the product.

4. Red Bull is affiliated with caffeine industry, which might help them exploit

coffee industry.

5. The packaging should help retain the chillness of the drink without which

it is tasteless.

ANNEXURE
QUESTIONNAIRE
This information is required for the successful completion of a project based on-

‘A Study on Customer Satisfaction and Marketing Effectiveness of Red Bull

energy drink, Bangalore.’ I would appreciate all your help in generating the

response to this questionnaire. Thank you.

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 1, 20,001-3, 60,000

3, 60,001-7, 20,000 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”?

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 TV Ads Friends
Website/blogs Other Sources (Please specify)

11.Why do you buy Red Bull?

For Relieving Fatigue For staying Awake

Daily Routine Increase Concentration
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 MOUTH 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 More than above

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 Taste Brand Image

Promotion

19.Which company do you think has the highest market share in the energy

drink segment?

Red Bull
XXX

Cloud 9
Others

20.Any Suggestions
BIBLIOGRAPHY

BIBLIOGRAPHY
Books Referred
• Marketing Management, 13th edition - Philip Kotler.

• Survey Research Method - Charles Babbie.

Magazines Referred

• The Red Bulletin

Websites Referred

• www.google.com

•www.redbull.co.in

• www.wikipedia.com