2012 RED BULL INDIA GRADUATE PROGRAM RED BULL SELECTION DAY

VIGOR

ENERGY DRINK
the power to do more.

Submitted By: Siddharth P. Bijlani

Indian Energy & Sports Drinks Market

Market Share*
Energy Drinks 0.13% 100 Plus Cloud9 Isotonic 4.4% 1.0% Gatorade 12.4% Other 15.9%

Red Bull 66.3% Other NonAlcoholic Drinks 99.87%

Energy drinks only hold 0.13% of the market share within the nonalcoholic beverage market.

Herfindahl Index: 0.45 Indicate a less Competitive Environment

New Entrants
Market Size : Rs. 1.6 billion Growth (2009-10) : 49%

*By off-trade value; Source: Euromonitor International

Positioning Map*
Psychological High
Gatorade/ RedBull Appy Fizz Minute Maid

CSDs

Maaza/Slice/ Frooti

Synthetic
Tang Real & Tropicana

Natural

Glucose Based

Milk Based

High Functional Appeal too

Functional High
*A qualitative representation

Product
Vigor is a functional drink that gives you The

Power To Do More.
INGREDIENTS
Caffeine Taurine Glucuronolactone Vitamins Added Natural Flavours Sweeteners

Quick Energy Boost Increased Diligence (focus) Decreases Fatigue Heightened Senses

VARIANTS Improved alertness and overall mental functioning Increased performance

Light

Strong

Positioning
Market Segment
For the Following Market Segment: Tier I | Sec A | Age : 30 yrs above (Adults)

a Targeting based on Needs

Mental Fatigue Physical Fatigue

Points of Differences
Lower Sugar Content Offered in 2 variants LIGHT : Low Caffeine STRONG: High Caffeine

Positioning

Mature Drink for Mature People.

Target Market
Profile
Tier I | Sec A | Age: 30yrs above (Adults)

Insights
Meetings & pressure at work keeps them busy and occupied Have an uncertain schedule with things propping up at the last moment Day long work timings and performance pressures Performance linked Payment

Customer Speak
Irrespective of nutrient and health needs Target Group is driven by Taste Accept following an unhealthy routine Do not prefer to take health supplements

Key Consumer Truths: Busy Lifestyle Time Deprived Acceptance of packaged food on the rise Rising Household Income

Key Consumer Needs: Nourishment Day long vitality Energy Taste

Source: TRPC, KPMG Analytics

Consumption Footprint
High frequency

Individual

Social
Positioned as a Social Drink as well

VIGOR

Low frequency

*A qualitative representation

Pricing
Light
Packaging 250ml (Can) 330ml (Bottle) Price 70 90 a Packaging 250ml (Can) 330ml (Bottle)

Strong
Price 80 100

Packaging
Use of maroon/blue/green colour with aluminum finish to convey sense of energy, health and high performance. Benefits: 100% recyclable Lightweight & Shatterproof Convenient to carry

250ml

330ml

Source: Fusion Aluminum Bottle & Cans (250ml), REXAM

Place
Core Distribution Strategy : Establish and intensive distribution channel a Place or Channel for Distribution MODERN TRADE GENERAL TRADE

Objective: Visibility/Trial Objective: Reach/Penetration

Distribution Channel

MANUFACTURING AND PROCESSING CENTRE

EXCLUSIVE DISTRIBUTION CENTRE

Processing

INDIRECT CHANNELS

DIRECT CHANNELS

GENERAL TRADE

RESTAURANTS, PUBS,BARS

Promotions
Outdoor Promotions or Sampling Point of Purchase Radio Social Media Billboard TV Commercials .a Print Advertisements

Objectives
Points of Parity Points of Differences Build Brand Essence

Outdoor Promotions and Sampling

Free Product Trials At right places, right time (concerts, parties, festivals, sporting events, metro stations, bus stations where people need an energy boost) Encourage individuals to drink full can for maximum benefit; explain the benefits

Point of Purchase
Primary tool - branded glass refrigerated sales units Prominent display of logo Prominent location in retail store

.a

Radio
Broadcast time: Between 6PM 9PM Peak office travel time Travelling back home from office - lot more relaxed

Social Media
Advertise on professional sites like linkedin.com, Shine.com Google ads and twitter awareness Facebook campaigns involving customer engagement, experience and feedback,

Billboard
To attract maximum attention from target group Areas having high concentration of corporate houses e.g. DLF Gurgaon, Green Park New Delhi, BKC Mumbai Areas having high number of restaurants, pubs and bars

TV Commercials
Advertising Pitch Mature drink for mature people [Positioned against Red Bull not meant for kids] Airing in Business, News & Lifestyle Channels .a

Print Advertisement
Full Front Page ads at +2 months from launch Print Ads in Lifestyle & business magazines like Forbes, Readers Digest

Campaign Flow
New concept of energy drink for adults People need to be educated on the need of the product Increase visibility and trials Short span but frequent advertising required initially

Objective
Customers must associate energy with VIGOR

Test Market: Bangalore or Pune

Launch
Day 0 Point of Purchase Outdoor Promotion Public Relations

Accelerate
Up to 2 months Point of Purchase Outdoor Promotions Radio Billboards

.a

Engage
Up to 12 months Success Stories Social Media Customer Surveys Print/TVC Consumer Promotions

Invigorate
After 12 months Point of Purchase Public Relations Social Media Print/TVC Consumer Promotions

Costing
Formulation Cost Caffeine Taurine Glucoronolactone Sugar Pantothenic Acid Vitamin B6 Powder Vitamin B12 Powder Cost (Rs. per kg.) 750 3 100 28 500 900 Quantity in 250ml 80 mg 1g 600 mg 11 grams 3.6 mg 2.1 mg 4.5 mu.g Total Costing Formulation Packaging Cost per Bottle (Rs.) 0.06 0.003 0.06

Formulation Cost

0.308
0.0018 0.00189 1.58E-05 0.434

3500

Per pack (Rs.) 0.434 7

Value Chain Costing

Processing
Transportation Channel Margin Total

2
2.5 20% over Selling Price 26 (Rs. 30 approx)

Source: www.calorielab.com & www.redbull.com

Future Extensions
Opportunity to extend the brand into unrelated product categories Flavours Inner Core Vigor Sugar-free Vigor Shots

Outer Core Vigor Energy Bar

Extension Zone Bulletin

THANK YOU