ANIL SURENDRA MODI SCHOOL OF

COMMERCE, NMIMS

PRINCIPLES OF MARKETING
PROJECT REPORT

SUBMITTED BY:

B.Com. (Hons.) Semester-II Division-B

B014 Ashaz Gaibi

B010 Aravind Pandiat
B029 Nitin Sathishkumar
B030 Om Shukla
B035 Raghav Bajla
B047 Yash Raj

SUBMITTED TO:
Dr. Vivek Singh
 ACKNOWLEDGEMENT

We want to express our profound gratitude and deep regards to our respected ,
“Principles of Marketing”, professor Dr. Vivek Singh, who gave us a great
platform and opportunity to do work on this insightful and educational project.
It helped us research and build our perspective on the given topic. Proper and
timely guidance along with constant encouragement from our professor helped
us throughout the journey. The skills learnt during this research will be
beneficial for us in the future.

We would also like to extend our gratitude to our institute, Narsee Monjee
Institute of Management Studies and the academic department for their
continuous support and availability of resources without which it would have
been impossible to complete this report within the stipulated time frame.
 INDEX

S.N TOPIC PAGE NO.

O

1 INTRODUCTION

2 4 P’s of Marketing

3 About the company

4 Objectives

5 Data Source

6 Methodology

7 Hypothesis
8 Survey Questions

9 Demographic Analysis

10 Limitations of Study

11 4 P’s analysis

12 Data Analysis and Interpretation

13 FINDINGS

14 RECOMMENDATIONS

15 CONCLUSION
 INTRODUCTION
In the vast landscape of consumer goods, few brands have achieved the level of
iconic status and market dominance as Red Bull. Renowned for its bold
marketing strategies, Red Bull has transcended the confines of a mere energy
drink to become a cultural phenomenon. This report delves into the dynamic
and innovative marketing techniques employed by Red Bull, exploring how
they have revolutionized the industry and captured the imagination of
consumers worldwide.

From its inception, Red Bull has embraced a marketing ethos that defies
convention. Rather than relying solely on traditional advertising methods, the
brand has pioneered a multifaceted approach that seamlessly integrates
experiential marketing, extreme sports sponsorship, and digital media
engagement. By cultivating a distinct brand identity centred around vitality,
adventure, and pushing the limits of human potential, Red Bull has successfully
carved out a niche that resonates with a diverse demographic.

Through strategic partnerships with athletes, artists, and influencers, Red Bull
has positioned itself at the forefront of youth culture, fostering a sense of
community and belonging among its consumers. By aligning its brand with the
adrenaline-fueled worlds of extreme sports, music festivals, and gaming events,
Red Bull has cultivated an aura of excitement and exclusivity that transcends
geographical boundaries.
Furthermore, Red Bull's marketing initiatives extend beyond traditional
advertising channels, encompassing innovative content creation and immersive
experiences. From the high-octane thrill of Red Bull Stratos to the electrifying
spectacle of Red Bull Rampage, the brand has consistently pushed the
boundaries of possibility, captivating audiences and generating unparalleled
brand engagement.

In today's hyperconnected world, Red Bull continues to adapt and evolve its
marketing strategies to stay ahead of the curve. Through strategic investments in
digital platforms, social media campaigns, and content production, the brand
maintains a ubiquitous presence in the lives of its consumers, fostering lasting
relationships and driving brand loyalty.

As we delve deeper into the intricacies of Red Bull's marketing prowess, it

becomes evident that the brand's success is not merely a result of effective
promotion but a testament to its unwavering commitment to innovation,
authenticity, and the relentless pursuit of excellence. By harnessing the power of
creativity and daring to challenge the status quo, Red Bull has cemented its
position as a trailblazer in the world of marketing, leaving an indelible mark on
the industry for generations to come.
 4 P’s of Marketing
E. Jerome McCarthy popularized the idea of the four P's of marketing in his 1960
book "Basic Marketing: A Managerial Approach". McCarthy devised the
framework in order to group the essential components of marketing strategy. The
framework itself is a distillation of marketing ideas that have been established and
refined over time by numerous scholars and practitioners, even though McCarthy
is frequently credited with popularizing the notion.

Every "P" stands for a distinct marketing component:

1. Product: The real items or services that a business provides to its clients are
referred to here. It covers things like features, branding, packaging, variety,
quality, and product design.

2. Price: The price of a product or service is the amount of money that a

consumer is willing to pay. A number of elements, including perceived value,
customer demand, rivalry, and production costs, must be taken into account
when setting a price.

3. Place: Place describes the means of distribution that clients use to get the
good or service. Decisions on the product's distribution channel, such as retail
outlets, are included.

4. Promotion: The communication techniques used to enlighten, convince, and

sway consumers to buy the good or service are referred to as promotion. Public
relations, sales promotions, advertising, and other promotional activities fall
under this category.
 ABOUT THE COMPANY
With its well-known tagline, "Red Bull gives you wiiings," Red Bull GmbH has
become one of the most recognizable energy drink brands worldwide. The
company retains the largest market share of any energy drink company
worldwide under the direction of Dietrich Mateschitz, its creator and current
CEO ("Top Energy Drink Companies in the U.S.," 2019). In 1984, Mateschitz
established Red Bull and introduced the world-famous energy drink in Austria,
where it is still headquartered today. Red Bull has reportedly sold 75 billion
cans overall since its launch, and in 2019 alone, it sold 6.8 billion cans in 171
countries, bringing in $6.5 billion in sales, according to Forbes magazine. The
company's aim is to "maintain a leadership position in the energy drink category
while delivering superior customer service in a highly efficient and profitable
manner, all while upholding Red Bull standards." We foster an environment
where staff members exchange best practices aimed at mentoring and advancing
our company's reputation as an employer of choice (Ramos, 2012). Around the
world, busy professionals, college students, elite athletes, and tourists all love
Red Bull energy beverages. The company provides a choice of flavours and
editions of its energy drinks in order to cater to such a diverse clientele. The
firm has introduced two new energy drinks to its lineup: a zero edition and a
sugar-free version. New flavours, including peach, yellow, blue, coconut, green,
orange, pear, and red, were most recently introduced. In addition to highlighting
Red Bull's achievements, the company's marketing approach gives it a
competitive edge over rivals like Monster, Rockstar, and Bang Energy. The
brand uses unique feats like the Stratos space diving project, Red Bull Cliff
Diving World Series, Red Bull Air Race, Red Bull Crashed Ice, and numerous
other sponsored events that are featured on their website to raise exposure of its
extreme sports events.
The business has also had success with other marketing techniques, such using
cartoons in their ads. Cartoons with the well-known tagline "Red Bull gives you
wiiings" are a part of Red Bull's distinctive narrative strategy, which is used in
advertisements to humorously highlight the brand's personality. Another well-
known tactic has been to flood cities with large, silver and blue cars with
enormous cans atop. These cars are not only instantly identifiable, but its
representatives also give away free drinks to the general public when they drive
by. Red Bull's approach to product placement is both personal and effective,
positioning its energy drinks as enjoyable experiences rather than just products.
 OBJECTIVES OF STUDY
The primary objective of this market research project is to gain a comprehensive
understanding of Red Bull’s position in the energy drink market and its overall
brand perception by the consumers. The study aims to:

1. Examine Red Bull's market positioning in relation to rivals in the energy

drink sector. Assess the competitive landscape, analysing market share, brand
awareness, and perceived advantages and disadvantages in comparison to
competitors' brands are all part of this.

2. Recognize Customer Preferences and Behaviour: Examine consumer

perceptions of Red Bull and rival energy drink brands, as well as their
preferences and purchasing patterns. This include investigating variables that
affect consumption habits, demographic trends, and brand loyalty.

3. Examine Brand Image and Perception: Evaluate how customers view Red
Bull as a whole in terms of both brand image and perception. To learn how Red
Bull is viewed and positioned in the minds of its target market, investigate
brand associations, values, and emotional connections.

4. Examine Marketing Strategies and Communication platforms: Determine

how well Red Bull reaches and engages consumers through its marketing
campaigns, sponsorships, and communication platforms. This entails evaluating
how different marketing campaigns affect the exposure, awareness, and
engagement of a brand.
5. Examine Product Innovation and Diversification Opportunities: Examine
possible areas in Red Bull's portfolio where product innovation and
diversification could be applied. Determine consumer preferences and new
trends in the energy drink industry to guide product development tactics.

6. Evaluate Distribution and Retail Presence: To assess accessibility and

market reach, examine Red Bull's retail relationships and distribution methods.
Find ways to improve shelf presence and distribution tactics in order to increase
sales and brand awareness.
 DATA SOURCE
Our project makes use of both primary and secondary data types . For primary
data we have made use of Google forms , which has been shared and circulated
through social media to get suitable responses

The Google forms has further been furnished in the form of an excel sheet to get
meaningful inferences , the link to the excel sheet ;

https://1drv.ms/x/s!Aht2qGwSpVeQgVOfDyacfL_FZFmK
 METHODOLOGY – ‘SURVEY’
One method of collecting structured data from a specific demographic is through
surveys. They usually comprise a set of inquiries intended to elicit particular
answers, frequently with the goal of comprehending preferences, behaviors,
attitudes, or demographics. Surveys can be carried out using a variety of platforms,
including paper forms, phone calls, and internet ones. The results are examined to
make decisions, gather information, or guide future study. To ensure dependable
data collection, an effective survey design must have precise objectives, objective
questions, and suitable sample methods.

For our purpose survey is taken in the form of Google forms , especially due to
the convenience and easy accessibility of survey participants , and to
accommodate a wide array of responses
 HYPOTHESIS
The report hypothesis aims to study the relationship between changes in
components of 4 P’s of marketing and its effect on Brand image and awareness

For this purpose ;

Null Hypothesis – (H0) : Positive change in Price , Product , Place and

Promotion has no effect on consumers attitude towards the product

Alternative Hypothesis – (H1): Positive change in Price , Product , Place and

Promotion has positive effect on consumers attitude towards the product

To test our hypothesis ;

 We collected data by conducting a survey in the form of google forms ,

which was converted in the form of excel sheet.
 We have interpreted the data using pivot charts and pivot tables
 A detailed study on the analysed data will follow in the report , clearly
outlining the area of study , age group , income and preferences of
participants
 SURVEY QUESTIONS

List of survey questions used ;

 Age group you belongs to (in years)
 Are you aware of the different flavours of Red Bull available Do you
consume them?
 Please select the primary reason for your preference or consumption of
Red Bull
 Where do you encounter info about Red Bull products the most?
 Which variant of Red Bull do you prefer the most ?
 Have you seen or heard any Red Bull advertisements or promotions in
the past six months?
 Among these which beverage do you prefer the most?
 How often do you consider beverage options other than Red Bull when
making a purchase decision?
 If Red Bull increases its price by 5-10%, would you still prefer the brand
as now?
 When do you typically consume Red Bull?
 What is your family annual income ?
 Which area are you from?
 How much would you be willing to pay for a 250ml can?
 How much satisfaction does 1 can of 250ml give you? 1 being least and 5
being most.
 DEMOGRAPHIC ANALYSIS

We were able to collect a sum of 97 responses , based on demography the data

can be classified into ;

AGE GROUP of participants :

AGE GROUP
4 1 3
10
<12

>30

12-18
33
18-22

22-26

26-30

46

The above chart represents the diverse age group of survey participants

 A total of 46 respondents belong to the age group of 18-22 , young ,

college going youths , among whom Red Bull is very popular .
AREA OF STUDY :

AREA OF STUDY

18
Rural

Urban
79

Above chart represents area of study , i.e) Respondent location

 This demographic information is important to understand Red Bull’s

target market , which is essentially its target market.

 A target market is a certain demographic or set of customers that a company

wants to reach with its goods or services. Based on a range of behavioral,
psychographic, geographic, and demographic traits pertinent to the
company's products and services, this group has been identified.

 Important to observe that majority of respondent belong to the urban

population
 HOUSEHOLD INCOME:

ANNUAL HOUSEHOLD INCOME

36

25
24

12

<5L >40L 15L-40L 5L-15L

Above bar diagram represents count of respondents on the basis of annual household income
Figures given are in Lakhs of Rupees

 Annual household income of participants is distributed sparsely ,

comparatively large no. of respondents belong to the below 5 lakh per
annum category
 LIMITATIONS OF THE STUDY

Limitations of the study are as follows :

 The most crucial limitation is the sample size being studied , a sample
size of 97 is comparatively less to make accurate inferences

 The responses are mainly from students who belong to the age group of
18-22 , therefore the study maybe biased

 Area of study may also impact the study’s results , as majority belong to
urban areas , hence results maybe biased
 4P’S ANALYSIS

1. Product:

- Red Bull's product line primarily consists of energy drinks formulated to

provide consumers with a boost in energy and mental alertness. The flagship
product, Red Bull Energy Drink, contains ingredients such as caffeine, taurine,
B-vitamins, and sugar, carefully blended to deliver a functional benefit.

- Red Bull has expanded its product portfolio to cater to different consumer
preferences and dietary needs. Variants like Red Bull Sugar-free and Red Bull
Zero Calories offer alternatives for consumers seeking reduced sugar or calorie-
free options.

- Packaging is a crucial aspect of Red Bull's product strategy. The distinctive

slim cans with the iconic blue and silver logo not only stand out on store shelves
but also serve as a symbol of the brand's identity and premium positioning.

2. Price:

- Red Bull typically commands a premium price compared to other energy

drink brands. This pricing strategy reflects the perceived value of the brand,
built on factors such as quality, brand image, and lifestyle association.

- Despite its higher price point, Red Bull maintains its market share by
targeting consumers willing to pay for the perceived benefits and status
associated with the brand. Additionally, promotions and discounts may be used
strategically to attract price-sensitive consumers without diluting the brand's
premium image.
3. Place:

- Red Bull boasts an extensive distribution network that ensures its products
are widely available across various retail channels. This includes supermarkets,
convenience stores, gas stations, and vending machines, ensuring accessibility
to consumers wherever they shop.

- Strategic partnerships with bars, clubs, and sporting events further extend
Red Bull's presence, allowing consumers to enjoy the product in social settings
and during recreational activities.

- Red Bull also leverages e-commerce channels, allowing consumers to

purchase products directly from the brand's official website or through online
retailers, providing added convenience and accessibility.

4. Promotion:

- Red Bull is synonymous with unconventional and high-impact marketing

campaigns that go beyond traditional advertising. The brand's sponsorship of
extreme sports events, music festivals, and cultural experiences allows it to
connect with its target audience on a deeper level.

- Content creation is a key component of Red Bull's promotional strategy. The

brand produces a wide range of content, including documentaries, web series,
and branded entertainment, which resonate with its audience and reinforce its
brand identity.

- Red Bull's sponsorship of athletes, teams, and events helps to solidify its
association with adrenaline, adventure, and pushing the limits of human
potential. This sponsorship strategy not only enhances brand visibility but also
creates memorable experiences for consumers.
By strategically managing each of the 4 P's, Red Bull has successfully
established itself as a dominant force in the energy drink market, maintaining a
strong brand presence and loyal customer base amidst fierce competition.
 DATA INTERPRETATION AND
ANALYSIS

1. Product Awareness: In the given graph we can see that 79% of the
respondents are aware about the different flavours of Red Bull whereas
only 21% have heard it’s name for the first time. In those 79%
respondents, 37 people know about the product and consume it whereas
40 people know about the product but don’t consume it. We can link it to
Promotion, Product and Place in the 4 P’s of Marketing.
2. Reason for Product Preference: From the given graph we can see that
around 45 consumers of Red Bull prefer it because of it’s Taste and
Flavour which relates to the Product part of the 4 P’s of Marketing
showing that Red Bull has emphasized on it’s taste and flavour to
achieve success in the energy drinks market. Apart from taste and
preference, Availability and convenience and Trust on the Product stand
as the 2 most significant factors for Red Bull’s preference.

3. Product Preference Among Competitors: We can see that among all the
competitors in the soft/energy drinks market, Coca Cola, Red Bull and
Sprite hold the most share in the market with Red Bull holding around
19% share in the market. This shows us that Red Bull have really worked
on their promotion strategy to bring awareness amongst the consumers
about the product and also on their product so that the consumers get the
best taste and flavours and can enjoy the drink.
4. Frequency Of Consumption: When the consumers were asked about how
often they consider beverage options other than Red Bull, 45% of the
respondents opted for “Very Often” and 38% of the respondents opted for
“Occasionally” which shows us that people still don’t consider Red Bull
as their top most beverage option and consider buying other soft drinks as
well. Only 16.5% of the respondents opted for “Rarely” which means that
there are some consumers of Red Bull who are loyal to the product.

5. Consumer’s Willingness to Pay: From the above graph we can interpret

that, 56% of the consumers are willing to pay Rs.125 for a 250ml can
 which shows us that more than half of the consumers are willing to buy a
Red Bull at that price point as it is equally priced. This is an example of
how well Red Bull have priced their product by using the Pricing strategy
of the 4 P’s of Marketing. Apart from this, 17.5% of the consumers are
also willing to pay Rs.150 for a 250ml can.

Consumer willingness to buy redbull

after 5-10% increase in price
37
36
35 36
34
33
32
31
30 31
29 30
28
27
Depends on the other brands' No Yes
products

6. Consumer’s Willingness To Buy Red Bull After 5-10% Increase In Price:

As we can see in the given data, 37% of the respondents are not willing to
buy Red Bull after 5-10% increase in price whereas equal amount of
respondents decision is ‘Depending on other brand’s products’ and ‘Yes’.
 FINDINGS

1.Product recognition:

· 79% of respondents were familiar with Red Bull's assortment of tastes,

demonstrating the company's strong brand recognition. This suggests that
Red Bull's marketing initiatives, including sponsorships and commercial
campaigns, have been effective in reaching customers.

2.Reasons for Product choice:

· It appears that Red Bull has successfully set itself apart in the market
thanks to taste and flavor, which are the main factors influencing
consumer choice.
· Consumer decision-making is heavily influenced by availability,
convenience, and product trust, emphasizing the value of not just the
product itself but also its dependability and accessibility.

3. Competitive Product Preference:

· There is fierce rivalry in the soft drink and energy drink business, as seen
by the substantial market shares held by Red Bull, Coca-Cola, and Sprite.
· Red Bull's ability to seize a sizable portion of the market indicates that its
marketing approach has successfully set it apart from rivals and drawn in
customers.
4.Frequency of Consumption:
· Although Red Bull has a devoted following of customers, a sizeable
segment of participants continues to explore alternative beverage choices.
This emphasizes how important it is for Red Bull to put plans in place to
keep customers longer and lessen the chance that they will go to rival
brands.

5. Consumer Willingness to Pay:

· Red Bull is viewed as a product that offers good value for money since
most consumers are willing to pay the present price for it.
· To prevent alienating clients, it is crucial to carefully manage pricing
tactics, as a significant proportion of consumers may be sensitive to price
rises.
 RECOMMENDATION
1.Enhancement of Promotion Strategy:
· Red Bull should keep spending money on marketing initiatives
that showcase its distinct flavor and taste, making use of venues
and media that appeal to its target market.
· Examining creative collaborations and marketing initiatives may
improve engagement and brand recognition even further.

2.Product Improvement:
· Red Bull should prioritize keeping its products consistently
available through a variety of channels so that customers may get
them whenever and wherever they're required.

· Consumer confidence may be strengthened and maintained with

the use of quality control procedures and open information
regarding the origin and ingredients of products.

3.Retention Strategy:
· Introducing loyalty programs or rewards systems can
encourage customers to make repeat purchases and give
them a feeling of community.
· Personalized marketing campaigns, such offers that are
tailored to a customer's historical purchasing patterns, can
improve the relationship between Red Bull and its clients.
4.Price Adjustment:
· Red Bull should carry out in-depth market research to
comprehend consumer perceptions of value and price
elasticity prior to contemplating any price modifications.
· If price increases are thought to be essential, explaining them
to customers in a clear and honest manner can help reduce
backlash and preserve brand loyalty.
 CONCLUSIONS

To sum up, Red Bull's competitive advantage in the energy drink industry may
be attributed to its skillful management of the four Ps of marketing: promotion,
product, location, and pricing. By using clever marketing techniques, Red Bull
has successfully communicated to customers the distinct flavor and taste of its
products and established a strong brand recognition. In addition, Red Bull's
dedication to providing accessible and high-quality products has reinforced
customer confidence and preference, enabling it to gain a substantial market
share alongside rivals such as Coca-Cola and Sprite. But in order to keep its
advantage over competitors, Red Bull needs to keep coming up with new ways
to promote its products, make sure they're readily available, and carefully
control price in order to stay relevant and loyal to customers in a market that is
always changing.

In the future, Red Bull's success will depend on its capacity to modify its basic
brand identity in response to shifting customer tastes and market conditions.
Red Bull can continue to energize its devoted customer base as well as the
larger energy drink market by keeping an eye out for emerging trends, funding
consumer engagement programs, and consistently improving its product
offerings. By doing these things, it can ensure sustained growth and profitability
in the years to come.