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Red-Bull
Red bull is on the peak of the introduction stage because it was available through gray
channels in Karachi since 2003 and the ad campaigns could be seen on different satellite
channels. In 2003 it already had 90% market share and its target market had a little
awareness about it because they knew this was available in other countries where they
In 2004 Red-bull had its proper setup and got rid of the gray channel material. According
to our sources it was the first energy drink brand to educate the local public through the
campaign of red-bull was already airing on star plus and other satellite channels.
Therefore, people tried and accepted red-bull as energy drink when they were informed
what is energy drink all about and it became a generic name. So, we can say that it is on
the peak of the introduction stage with 54% of market share despite the fact that new
competitors have entered into the market but it remains the pioneer. Recently they have
started their ad campaigns on GEO, ARY and Indus channels, FM89 and institutes.
Blue-Ox
Blue-Ox is in the middle of introduction stage with 23% of market share despite the fact
that it was launched after Bomba Energy. Blue-Ox was able to get immediate success
firstly because it was the only energy drink brand to educate people through electronic
Secondly it’s the only brand being promoted with all four different variants altogether.
That is why we can say that in such a short time it has enjoyed a major chunk of the profit
Bomba Energy despite the fact it was launched after Red-Bull but has not contributed in
the awareness of its brand or about energy drink to its target market as it feels that this
work has already been done by Red-Bull and Blue-Ox. The only attractive feature about
this drink is its grenade shaped glass bottle available in four different flavors, which was
noticed by the target market. But, because it has not invested in lot of awareness
generation and promotional activities major chunk of the target market is still not aware
of Bomba and its flavors are also not available altogether which leads to its low sales and
low market share of 7% only. Secondly, there global campaign doesn’t match with our
BCG Matrix
?
B High
U
S
I
N
E Star Question Mark
S
S
G
R
OWT
H
R Low
A
T
E RELATIVE COMPETITIVE POSITION
High Low
Since the overall energy drink industry is growing rapidly, Red-Bull is a star in the BCG
matrix as it has the highest market share, highest growth rate and highest competitive
position than Blue-Ox and Bomba Energy. The reason being that it was the pioneer, in
the energy drink industry and has also contributed in increasing the awareness of energy
drinks to its target market (urban and upper class). Because of its availability in other
countries and its target market that travels abroad adapted to its taste very quickly.
Blue-Ox is also a star in the energy drink industry but stands at a lower position in the
BCG matrix’s-star grid because it has high growth rate and comparatively lower
competitive position than Red-Bull but higher competitive position than Bomba Energy.
Even though it was launched after Bomba Energy it gained a higher market share by
Bomba Energy has a high business growth rate i.e. it has the potential to grow further in
the industry but it has a weaker competitive position than Red-Bull and Blue-Ox as it an
inactive competitor. It occupies a low market share for a number of reasons including that
it has not done aggressive advertising (because there global campaign cannot air due to
cultural issue) or awareness of its brand and thirdly it’s a Karachi based brand only. The
only appealing factor is that it is available in a grenade shaped glass bottle in four
different flavors.
Competitive Strategies
Red-Bull
Red-Bull being a market leader has a share of mind (red-bull is mostly the first energy
drink brand when asked people to recall) and has become a generic name. It uses the
1. New Users Red-bull has the potential of attracting buyers who are unaware of it
or who are resisting it because of price. So they try to cater through new-market
segment strategy (for those who have never used it e.g. distributing self-educating
pamphlets in English and Urdu and even there sampling teams go to different
institutions) and geographic expansion strategy (those who live elsewhere e.g.
after its success in Karachi know it wants to concentrate on Lahore and Islamabad
market)
2. New Uses It suggests that Red-Bull is for world class athletes, busy professionals,
o Increases performance
o Increases concentration and reaction speed
o Improves vigilance
o Stimulates metabolism
3. Mobile Defense Strategy Red-bull stretches its domain over new territories that
can serve as future centers for defense and offence. It spreads through market
drink market in Karachi so now it is promoting itself on the generic need i.e. its a
Blue-Ox
Blue-Ox aims its attack towards the market leader. This is a high risk and potentially high
payoff strategy but it’s worth it. Blue-Ox uses combination of following competitive
strategies:
1. Flank Attack i.e. it serves not just the urban cities Karachi, Lahore and
Islamabad but has also spread out its distribution in the sub-urban cities where
Red-Bull and Bomba have not concentrated as yet. Hence, expanding its target
market, increased sales and developing share of mind in the sub-urban cities.
product variety_ Blue-Ox Original, Blue-Ox Orange Rush, Blue-Ox Citrus Max
Bomba Energy
Fine foods of the world have just imported Bomba Energy and distributed the product in
Posh areas of Karachi and has not used any competitive strategy as yet it is still inactive.
The reason being that Bomba Energy has only one global image, which contradicts our
Culture so; it can’t use its thorough global image strategy. That is why the management is
still waiting to launch its global campaign until the market gets mature and is able to
activities as they think profit margins are low for imported products. Basically it wants to
sell the product as much as they can without adhering additional expenses. The only
1. Prestige Goods Bomba Energy has introduced grenade like glass bottle to attract
cans worth Rs. 75/=. With innovative packaging it has been able to get a little
Segmentation
Red-Bull
Geographic
World Region PAKISTAN
City Karachi, Lahore, Islamabad
Density Urban
Demographic
Age 18-30
Gender Both
Income Rs. 40,000
Occupation Athletes, Doctors, Drivers, Students
Psychographics
Social Class Upper Class
Lifestyle Workaholics, Partygoers, Adventurous, Status-oriented
Behavioral
Occasion Regular
Benefits Improves performance, concentration, metabolism and
vigilance
Blue-Ox
Geographic
World Region PAKISTAN
City Karachi, Lahore, Islamabad, Multan, Hyderabad,
Quetta, Peshawar etc.
Density Urban and Sub-Urban
Demographic
Age 15-25
Gender Both
Income Rs. 40,000
Occupation All professionals
Psychographics
Social Class Upper Class and Middle Class
Lifestyle Workaholics, Partygoers, Adventurous
Behavioral
Occasion Regular
Benefits Improves mental and physical functionality.
Bomba Energy
Geographic
World Region PAKISTAN
City Karachi
Density Urban
Demographic
Age 16-35
Gender Both
Income Rs. 40,000+
Occupation All professionals
Psychographics
Social Class Upper Class
Lifestyle Partygoers, Workaholics, Westernized and thrill
loving
Behavioral
Occasion Regular
Red-Bull
Benefits Instant energy supply
STRENGTHS (S)
Pioneer in the category.
IFA Practically has become a generic
WEAKNESSES (W)
name.
Limited flavors and SKUs (small
TV advertising support via satellite
product line).
channels.
Inconsistent retail price.
Organized and well managed.
Transit promotion through Chevrolet
Only drink with four different Although has four variants but is not a
SO STRATEGIES
OPPORTUNITIES (O)
Should enhance the image of being WO STRATEGIES
Industry attractiveness is high in
an international brand. Engage in direct marketing campaigns
Pakistan.
Create more usage. to increase interest in the market from
Growing and futuristic market.
Promote itself on more than one the growth angle.
Nutritional value product
channel to increase awareness and its Create proper brand portfolio
Sugar free version available
customer base. architectures for its product line.
worldwide.
THREATS (T) It can increase its customer base by
WO STRATEGIES
OPPORTUNITIES (O)
SO STRATEGIES It needs to promote its brand so that it
Industry attractiveness is high in
can increase its customer base.
Pakistan. Create more usage. Inconsistent in meeting the retailer抯
Growing and futuristic market. Should include brand activator order demand.
Nutritional value product (strategic implementer) in their team. Grenade shaped glass bottle requires
Sugar free version available Build public relations & direct more shelf space so they should
worldwide. marketing programs to increase encourage sales via slim cans and
Pet bottle available worldwide. customer base.
THREATS (T) introduce pet bottles.
Limited consumer base.
Counterfeited products. WT STRATEGIES
Smuggled products. ST STRATEGIES Should indulge in promotional
Extremist抯 propagation. Should co-brand with other branded activities according to culture to
stores. establish its identification.
Addiction may lead to Increase social awareness firstly Should develop its brand in Karachi
through functional benefits rather so that it helps in leading to
increase in mortality rate. than emotional appeal. geographical expansion.
Critical Success Factors
Following are critical success factors for all the players if they want to survive in a very
competitive enviroment as the energy drink industry is a new born industry with high