World market ($50 billion market)

Red Bull is sold in 167 countries and has recently experienced strong sales
growth in India
The company says it sold 5.387 billion cans worldwide in 2013, a 3.1%
increase over 2012.
75% market share in India
Read more: The Energy Drinks Industry |
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y-drinks-industry.asp#ixzz4IkI6hAd0
Monster is sold in 114 countries, and last August, Monster Beverage Corp.
entered an agreement with the Coca-Cola Company where energy drinks
of coca cola were transferred to moster and coca cola became its
preferred distribution partner
With US sales of $3.147 million from July 2012 through June 2013, Monster
Energy is a close second to Red Bull.
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y-drinks-industry.asp#ixzz4IkIn9CSj
Indian Health officials banned the drinks last month, forcing Monster to
pull cans already on the market. The government ruled that combining
caffeine and ginseng was irrational and has an opposing effect on the
body.
http://www.bloomberg.com/news/articles/2015-06-26/monster-fights-tostay-in-india-after-its-drinks-are-banned
Like Monster, Rockstar has the same $2 price point as Red Bull, but its
cans are nearly twice the size. Rockstar had $821 million in US sales in
2013 and approximately $670 million in revenue. It makes up about 10%
of the US energy drink market. Growth has slowed down drastically
Read more: The Energy Drinks Industry |
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y-drinks-industry.asp#ixzz4IkKBo9Uk
TRENDS
Rockstar has an organic offering, and Monster has one with green tea.
energy drinks with additional ingredients that are supposed to enhance
athletic performance and recovery
limited-edition drinks offered only in certain store chains and flavors
tailored for different countries
http://www.investopedia.com/articles/investing/022315/energy-drinksindustry.asp

Indian Market (Rs 700 crore, growing 20-25% year-on-year)

lot of talk about ill effects on health of such drinks and health risks associated
with them.
5% of the total soft drinks market in India
Globally, the corresponding figure is eight to nine per cent, according to
management consulting firm, Technopak.

Red Bull has 75 per cent share

increasingly challenged by the likes of Tzinga, Cloud 9, KamaSutra,
Restless and Burn
Pricing is the first focus. While a 250 ml Red Bull can costs Rs 95, Tzinga,
created by Hector Beverages, has chosen the economy route, selling at Rs
25 a pack. Commando is made available at Rs 85 per 250 ml. Urzza by
Bisleri would be available in 250 ml cans and 300 ml PET bottles priced at Rs
50 each
Tzinga sells at colleges, IT companies and BPOs
Red Bull and Monster primarily focus on sports events to sell
Monster's drinks focused on the premium category, competing with Red
Bull
primary markets are no doubt the metros and bigger cities, though Red
Bull claims to be present in 300 towns across the country
over 70 per cent of retail sales are in restaurants, pubs and night clubs.
http://www.businesstoday.in/magazine/features/challenges-aheadfor-newcomers-in-energy-drinks-market/story/199794.html
Coca-Cola, PepsiCo have not succeeded in this market. PepsiCo has withdrawn
its product, Coca Cola has relaunched existing product but has not managed
to capture market share
Urrza - sales revenue of Rs 1,000 crore in 2 years, put in a total investment
of 2 years and Rs 200 crore for developing and manufacturing Urzza. It will be
manufactured at seven locations in the country, five at Bisleris own units and
two at third party manufacturer, and distribute it through its existing network
strength of over five lakh outlets. Urzza would be rolled out nationally,
targeting major metros, mini-metros, towns and rural markets. extensive 360degree marketing campaign, involving television, print, digital and outdoor
media,
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Trend of combining energy drinks with alcohol as it is gaining popularity with
college students and young generation
71% of adolescents in urban centers of India consume energy drinks.
HEALTH EFFECTS
CAFFEINE CONTENT - The report further noted that the caffeine content in
energy drinks varies between 75 mg and 150 mg per can compared to 80-120
mg and 60 mg in a cup (250 ml) of coffee and tea, respectively. Maximum
recommended intake of caffeine per day, varies from 2.5 mg/kg/day to 6
mg /kg/day in children, 100 mg/day in adolescents and up to 400 mg/day in
adults. (1mg=4 ppm (parts per million)). [Prof Piyush Gupta, study report
published in Indian Pediatrics Journal (July 15, 2014). ]
A caffeine overdose can cause palpitations, hypertension, dieresis, central
nervous system stimulation, nausea, vomiting, marked hypocalcemia,
metabolic acidosis, convulsions, and, in rare cases, even death.
The WHO study also warns that consumption of energy drinks among
adolescents is associated with other potentially negative health and
behavioural outcomes such as sensation seeking, use of tobacco and other
harmful substances, and binge drinking and is associated with a greater risk
for depression and injuries that require medical treatment.

The Food Processing Industries Minister Harsimrat Kaur Badal, requested

PepsiCo Chairman Indra Nooyi, who called on the minister in New Delhi on
August 26, to further bring down the sugar content of soft drinks so that the
health aspects of such products are duly taken care of.
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GROWTH DECOMPOSITION FOR ENERGY DRINKS OFF-TRADE VOLUME

FORECAST IN INDIA

Industry AnalysisPorters five forces analysis

Threat of Substitutes:
Products made from healthy energy sources
Traditional beverages including canned fruit juices
Threat of new entrants:
Existing carbonated drinks can introduce similar products
High barriers to entry. May not attract as many new players.
Bargaining Power of suppliers:
High. Key ingredients are rare and hard to fetch.
Bargaining power of buyers:
Low.
SWOT
Strengths
High brand identity
High octane
Attractive Packaging
High energy and sex appeal
Weaknesses
Cannot be consumed by children
High price could deter people from buying
High barriers to entry (Competition, red bull)

Competitive market
Opportunities
Budding market with 20-25% CAGR YOY. 1000 crore market
Can be offered as a substitute to carbonated drinks
Threats
Consumer perception that it may not be not safe to consume especially after
Monsters ban in 2015. Should be taken care in positioning.
Consumers may shift towards natural beverages
May attract a fresh FSSAI ban
Trends and Market growth
Changing life styles- Increasing need for energy drinks to cope with fast paced
lifestyles
Economic growth in the country- increasing shift from lower to upper middle
class.
Nascent market with a lot of potential for growth.
USPLong lasting energy
Below FSSAIs standard of caffeine
No taurine, gluconolactone like any other drink
Table is under USP.
Drink(250 ml)
BullDozer
Redbull
Monster
Rockstar

Caffeine content (mg/100ml)

30
32
33
34

FSSAI cap for caffeine- 31mg. BullDozer is below govt. regulated standard.
Competition:
Brand
Gatorade
Red Bull
Lucozade
Tzinga
100 Plus
Cloud 9
Burn
XXX

Company name (GBO)

PepsiCo Inc
Red Bull GmbH
Suntory Holdings Ltd
Hector Beverages Pvt Ltd
Thai Beverage PCL
Goldwin Healthcare Pvt Ltd
Monster Beverage Corp
JMJ Group

Add pie with 2015 market share.

2010
22.30
62.70
1.70
0.20

2011
30.40
55.30
1.20
1.10
0.20

2012
34.90
49.40
2.00
1.80
1.40
0.10

2013
39.80
43.50
2.70
2.40
1.50
1.30
0.10

2014
43.70
38.50
3.10
2.90
1.70
1.10
0.10

2015
46.40
35.70
3.30
2.20
1.60
0.90
0.20
0.10

Segmentation:
By Demographic:
Age:18-30 year olds
Occupation: young professionals and college goers, athletes
Geographic: Tier 1 cities
Gender: Young Males
By consumption patterns:
At Leisure- clubs, resorts, restro-bars
At play- Gyms, playgrounds, stadiums

Targeting:
Target Groups: Teenagers, young professionals, college students ( add pictures)

Positioning:
Should be positioned as a luxury good.
Should be charged higher than any other competitor.
Points of difference- No taurine, gluconolactone. No artificial flavours and
synthetic additives
Points of parity (the qualities our product needs to share with the competitors)
Should be an energy drink

Pricing and distributionPhase-1

Phase1
Phase 2

Phase3

PackagingPremium glass packaging

Financing-

High end bars, clubs

Gyms, stadiums, luxury
restro-bars, beaches,
supermarkets in malls
Supermarkets, possible
launch of cheaper variant

Word of mouth
Bulldozer parties/
clubs, sponsored
adventure trips
Pro-Kabbadi, IPL team