Marketing Research on Red Bull Energy Drink in Vietnam Market Essay

1 – Objective: Nowadays, energy drink’s becoming an important part in food market holding great number of consumer in the world as well as in Vietnam. Thinking about high energy drink branches, many customers think about a popular name: Red bull. How successful this branch is, the way they develop their mark and how was they cared in Vietnam’s market. Everything related with Red bull will explained in this research. 2 – Targets: In this research, Customers, market share and Advertising are focused most. Through 3 Literature reviews, more information about Customers, Market share and Advertising will discoed. 3 – Stakeholder: Supplier: Absolutely compliance all regulations in the contract between producer and supplier about timely and the quality raw materials as well as payments. The common purpose is getting benefit. The supplier can get benefit from selling raw materials while Red Bull Vietnam get from selling finished products Distribute Channels: Producer can not go every where to sell their products. They need to the helps from distribute channels include representatives, wholesalers and retailer. These distribute channels can be discount from producer depend on their agreement. Union: is an organization which can protect the benefits of staffs and workers in company. Red Bull also try to care for the life of staffs and workers, invest money to improve the skills of workers, make them feel free when working, bring the best effectiveness for production Government: A legal company is that is not only unlawful, but also full implementation of obligations with the government. It is taxation. This is a condition for government to consider the legitimacy of that company Beside that, there are some organizations such as Vinatas_ The Standard and protect consumers Vietnam which will representing for consumers and protect for the benefits of consumers when their benefits were violated. 4 – Background (PEST) POLITICAL-In the beverage market of Vietnam, Red Bull is the non-alcoholic drinks ehich was first introduced , namely Energy Drinks- A phase â€Å" Energy Drinks† is not really credible. It is easy to be banned in domestic market if happening the scandals that relevant to the quality or safety such as: containing cocaine or other drugs†¦| ECONOMICS-Red Bull is a special drinks and it serve for a niche market. – Their target customers is sportsmen or people who must hard an d need to to pushed up-Product life cycles quickly, easy to turnover| SOCIAL-At the beginning, no many people wanted to try it because the psychology suspect. but now people are changing and tend to open more new experiences- People take care more about healthy, only using products which have been confirmed by Health organizations- Red Bull has appeared in Vietnam market for a long time and has built a strong image in customer’s mind| TECHNOLOGY- Technique requires high technology, line modern machinery, closed line, ensure hygiene and safety-The main types of packaging are cans and glass bottle. Can is made from recyclable aluminum which is very friendly with environment.moreover, glass bottle aldo can be recycled, therefore not be harmful for our environments ( Red Bull_ The macro environment, 2009)| Although still having a little bit difficulties about political, Red bull is a strong brand that has been a long time n customer’s mind, with many advantages of technology and economic, Red Bull has a potential opportunity to develop more and more in Vietnam beverage market. | PEST Analysis 5 – Literature Review: 5. 1 – Literature review 1 (Customers) Red Bull’s one of the biggest energy drink branches all over the world – no one can negate that. It seems not to stop at that point but keep developing wider and deeper. Red bull grasps in his hand which kinds of customer want to recover their energy faster and aim them as the target customer of branch. They are in the age from 18 to 35, who need more and more energy for work, study with serious stress and enjoy their life in nightclubs. Especially, universities are the good place to consume product every night and day because many students feel very hard to concentrate on their study without Red bull. So that this branch’s trying to create their promotional strategies target straight to university and students. (Red Bull IMC Plan, 2008) In Vietnam, Red bull’s still a popular name in different appearance: red tin, blue words imported from Thailand or made in Binh Duong-Vietnam . However, recent years, its market share in energy drink market is decreasing lower than other branches such as Sting from Pepsico or Number1 from Coca-cola, even unmarketable. Many audiences have doubts about its quality, wonder if it’s not good for health with nicotine or don’t like its taste. Red bull seems to have more good strategies to please Vietnamese customers. (Red Bull ban t? i VN co ? nh hu? ng d? n s? c kh? e? , 2009) 5. 2 – Literature review 2 (Market share). Red Bull is the product of Energy Drinks which are dominate in the market now. It has been in more than 100 countries all over the world. Production of annual sales is about 1 billion cans, the revenue of Red Bull has increased from 920 million USD in 2001 to 2 billion USD in 2004 ( Red Bull- Anh hung tu con so khong, 2007) In Vietnam, Red Bull Energy Dinks are becoming more and more popular. In any restaurant or bar, this beverage always be the first choice of custormers. The market share of Soft Drinks in Vietnam has been increased, average is 2% per year between 2001-2006 ( Soft Drinks in Vietnam to 2011, 2007). The leading company in this filed is Red Bull company, the second is Pepsico with Sting ( Soft Drinks in Vietnam to 2011, 2007). The market share of Red Bull has decreased slightly in recent year, when some brands such as Coca-Cola, Pepsico, Wonderfarm†¦have been successful in building the image in Vietnam market, however, Red Bull still dominant in the market in Vietnam, about 30% of market share, productivity of Red Bull increased to 7 million safes per year (tuoitre. com. vn, 2009). Nowadays, Red Bull get 70% of global market share (Soft Drinks in Vietnam to 2011, 2007). It is because of strong brand name and large of number people enthralled this attractive beverage. 5. 3 – Literature review 3 (Advertising) Red Bull is a famous brand of energy drink in Europe and all over the world. It was found out by Dietrich Mateschitz in 1982, in a trip of him to Hong Kong. Nowadays, Red Bull almost has no competitor in energy drink market, thanks to the brilliant marketing and advertisings strategies of Dietrich. Before Red Bull has come out of any market, Mateschitz always make a statement in public as he not only sold drinks, but also sold a cheerful, comfortable feeling for consumers (SGGP, 2009). According to Hong Nhung (2008), Mateschitz has used sports as a tool to build the image of Red Bull brand, as he bought racing and football teams and renamed it following Red Bull. Of course, the traditional advertising, TV and radio have been used widely, to expand the brand of Red Bull. On the other hand, organize big shows was also one great way to advertise of Mateschitz, as the Red Bull Music Academy, a show of over 50 DJ was showed twice a week in Berlin the first time in 1998 (Vietnambranding, 2008). 6 – Reference list [1]. Red Bull_ The macro environment 2009, drawert. com, viewed 30 July 2009 http://www.drawert. com/red_bull_4. php. [2] Red Bull IMC Plan 2008, megaessays. com, viewed 30 July 2009 http://www. megaessays. com/viewpaper/14478. html [3] Red Bull ban t? i VN co ? nh hu? ng d? n s? c kh? e? 2009, thegioitrithuc. vn, viewed 30 July 2009 http://thegioitrithuc. vn/content/view/23874/169/ [4] Red Bull- Anh hung tu con so khong, 2007, socbay. com, viewed 29 July 2009 http://www. socbay. com/news/detail/red-bull-anh-hung-tu-con-so-khong/600896582/50397184/0. html [5] Kho? ng tr? ng th? tru? ng n? i d? a – K? 3: Nh? ng cach lam thanh cong, 2009, tuoitre. com. vn, viewed 29 July 2009. http://www. tuoitre. com. vn/Tianyon/Index. aspx? ArticleID=302421&ChannelID=11 [6] Soft Drinks in Vietnam to 2011, 2007, researchandmarket. com, viewed 29 July 2009 http://www. researchandmarkets. com/reports/586703 [7]SGGP, 2009, â€Å"Red Bull – thuong hieu manh ve nuoc tang luc†, Xa lo, viewed 24th July, 2009, http://tintuc. xalo. vn/20-2043108925/red_bull_thuong_hieu_manh_ve_nuoc_uong_tang_luc. html. [8]Hong Nhung, 2008, „Dietrich Mateschitz – Nguoi lam nen Red Bullâ€Å", VietnamleaderI, viewed 25th july, 2009, http://www. vietnamleader. com/index. php? option=com_content&view=article&am.