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While its ambitions for the region are unquestionable, the probability of success in Japan is uncertain. Red Bull's rapid international expansion has earned it the undisputed number one position in the world's energy drinks market, according to Euromonitor International.
In Asia-Pacific, Japanese brands have traditionally led the regional rankings table. However, stagnant domestic demand and the slow or non-existent overseas expansion of Japanese brands have led to poor share gain at regional level. In contrast, Red Bull is more aggressive in terms of geographical expansion and recorded strong volume growth in China, Hong Kong, India, the Philippines, Azerbaijan and Pakistan over the past few years.
However, Red Bull's leading position is not yet well established, and this is reflected in the marginal gap between itself and the second and third ranked brands, M and Otsuka's Oronamin C with respective shares of Promising market supported by large youth population Asia is Red Bull's priority market in terms of expansion.
Red Bull's prime consumers are in their 20s and the large youth population in the region can potentially become energy drinks consumers in the long term.
India boasts the highest number of year-olds at 98 million, followed by China with 82 million and Indonesia with 21 million. The liberalisation of the Chinese and Indian economies is set to raise living standards and improve levels of disposable incomes, which will benefit sales of highly valued consumer products.
Along with total increases in consumption of soft drinks, China, India and Indonesia will continue to see high sales growth of energy drinks in years to come, implying optimistic business prospects for Red Bull.
Can Red Bull succeed in Japan? Euromonitor International believes that Red Bull needs to think harder before expanding its operations in Japan. With a per capita consumption of 1. The two top brands have their own strong consumer base and it would be very costly for a new brand to fight for the shrinking consumer base in the face of declining birth rates and a rapidly ageing population.
In fact, energy drinks players have failed to find new consumers and total consumption has declined consistently since the late s, and this trend is expected to continue in years to come.
Red Bull is known for being aggressive in marketing terms but cautious in terms of product development.
Its unwillingness to modify the product format and the taste of the drink may not be attractive to young Japanese consumers, who typically flirt with new products and are quick to change brands.
In the competitive Japanese soft drinks market, even established brands need to be revamped regularly to cater for ever-changing preferences and fads. On the top of this, the new consumer trend favouring natural ingredients may well work against Red Bull.
Nevertheless, Japan is a wealthy country and the ready ability to pay for premium drinks is in no doubt.
Red Bull may stand a chance of winning over young Japanese consumers if it manages to carve itself a niche in the on-trade channel, which currently records negligible sales of energy drinks. Success may be more likely if Red Bull partners local players such as Suntory, which has experience in distributing international brands and operates a large number of vending machines across the country.
Suntory's expertise and its connection with on-trade channels for both alcoholic and soft drinks would help Red Bull to quickly penetrate the market.Red Bull is known for being aggressive in marketing terms but cautious in terms of product development.
Its unwillingness to modify the product format and the taste of the drink may not be attractive to young Japanese consumers, who typically flirt with new products and are quick to .
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Environmental arousal is an important tool used by Red Bull to create arousal with its customers and their decision making process. By situating its product in certain. Integrated Marketing Communications Plan for Red Bull Energy Drink - Free download as Powerpoint Presentation .ppt) or view presentation slides online.5/5().
Lucozade was the first energy, however, in the market of the energy drinks today, many Lucozade’s competitors have raised, the main and the most powerful competitor Lucozade has to face is Red Bull “Red Bull is an energy drink brand which was launched in Austria in Marketing Plan for Red Bull The purpose of this report is to identify the scopes available for the proposed energy drink brand to operate in UAE market.
In order to estimate the expenses, a financial budget has also been included in the report. Red Bull is an unbeatable marketing powerhouse. When it comes to their marketing strategy, the brand takes everything it does to the extreme..
However, their marketing efforts always put the audience first. In fact, selling their product comes second.