porProduct Life Cycle Stage

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

might have gone before.

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

self-educating pamphlets. Initially it was not concentrating on advertising because the ad

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

media (television) as its distribution license is purchased by ARY Group of companies.

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

and gained consumers trust.

Bomba Energy

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

Islamic culture, which indirectly hampers its image and sales.

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

establishing its identification and importance through aggressive advertising on ARY

Digital and offering four different flavors.

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

following strategies to expand its total market:

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,

active students and long distance drivers as it:

o Increases performance
 o Increases concentration and reaction speed

o Improves vigilance

o Improves the emotional status

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

broadening (it has already accomplished by becoming a generic name in energy

drink market in Karachi so now it is promoting itself on the generic need i.e. its a

functional drink for extra energy supply when needed).

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.

2. Product Proliferation Blue-Ox has attacked Red-Bull by launching a larger

product variety_ Blue-Ox Original, Blue-Ox Orange Rush, Blue-Ox Citrus Max

and Blue-Ox Black Cherry.Thus giving buyers more choice.

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

broaden its perception. It is not very active as Red-Bull or Blue-Ox in promotional

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

strategy it is using is:

1. Prestige Goods Bomba Energy has introduced grenade like glass bottle to attract

its consumers charging a premium price of Rs.85/=and is also available in slim

cans worth Rs. 75/=. With innovative packaging it has been able to get a little

chunk of the market.

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

EFA cars going in different institutes.

Certified by Aga Khan Hospital.

OPPORTUNITIES (O) SO STRATEGIES

WO STRATEGIES
Industry attractiveness is high in
Overcome inconsistency in retail price
Become what it preaches.
Pakistan.
by setting a standard price level.
Should develop brand equity as the
Growing and futuristic market.
They should give incentives to
TOWS market is growing and it has become
Nutritional value product
retailers.
a generic name.
Sugar free version available
As it抯 a growing market so risk can
It can increase its customer base by
worldwide.
be taken to launch a new SKU.
THREATS (T) going into different institutes.

Limited consumer base.

Counterfeited products.
Smuggled products.
Extremist抯 propagation.
Addiction may lead
increase in mortality rate.
ST STRATEGIES
WT STRATEGIES
Secrecy should be increased in the
It should develop itself as a bigger
management decisions to counter the
name (image and SKUs).
to
smuggled and imitating brands.
Should maintain close relations with
Advertising awareness should be
retailers.
created to clarify extremist
propagation of it being Haram.
Blue-Ox
STRENGTHS (S)
ARY Network is its sole distributor
IFA in Pakistan. WEAKNESSES (W)

Only drink with four different Although has four variants but is not a

flavors available in the market. market leader.

It was first to promote itself through Management of four variants is not

electronic media (ARY Digital). efficient.

Transit promotion through foxy cars

EFA in different institutes.

Affiliated with Hilton Pharma.

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

Limited consumer base. going into different institutes.

Counterfeited products. ST STRATEGIES

WT STRATEGIES
Smuggled products. Conduct seminar with high profile
Increase sales force in other areas of
Extremist抯 propagation. medical professionals.
Pakistan where red-bull and Bomba
Increase social awareness against
Addiction may lead to smuggling via promotional
and others are not active.
Build each variant according to its
activities.
increase in mortality rate. Aware people about max intake.
USP.
Bomba Energy
WEAKNESSES (W)
Unknown brand in Pakistan as its
STRENGTHS (S) Karachi based only.
IFA Organized operational structure
Believes not spending on much on
leading to wider distribution
promotional activities, as profit
coverage.
margin is low.
Attractive grenade shaped glass
Has not been able to promote its
bottle with a ring.
global image in Pakistan.
Partnership marketing with Hang
Shortage of supply of its different
EFA Ten.
variants.

OPPORTUNITIES (O)
Industry attractiveness is high in
Pakistan.
Growing and futuristic market.
Nutritional value product
Sugar free version available
worldwide.
Pet bottle available worldwide.
THREATS (T)
Limited consumer base.
Counterfeited products.
Smuggled products.
Extremist抯 propagation.
Addiction may lead
increase in mortality rate.
WO STRATEGIES
SO STRATEGIES It needs to promote its brand so that it
can increase its customer base.
Create more usage. Inconsistent in meeting the retailer抯
Should include brand activator order demand.
(strategic implementer) in their team. Grenade shaped glass bottle requires
Build public relations & direct more shelf space so they should
marketing programs to increase encourage sales via slim cans and
customer base.
introduce pet bottles.
WT STRATEGIES
ST STRATEGIES Should indulge in promotional
Should co-brand with other branded activities according to culture to
stores. establish its identification.
to Increase social awareness firstly Should develop its brand in Karachi
through functional benefits rather so that it helps in leading to
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

industry attractiveness and market oppurtunity:

o Close relationship with the retailers.

o Aggressive promotional activities.

o Effective distribution network.