Philippines Edition 2 Red Bull

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Suprente ENERGY DRINK THE MARKET

affirmed that when Red Bull penetrated the Phil ippine energy drink business, the market tripled compared to 1992 or a year after its entry to the trade. The probable reason behind

Compared to other beverage lines, the worldwide energy drin.k category is only in its infancy stage. Before the arrival of Red Bull in the Philippines seven years ago, most Filipinos haven't even heard of the tenn energy drink. Energy food and Drinks, lnc., the exclusive Philippine distributor of Red Bull took the ease as a challenge.

this tremendous upsurge was the

awareness campaign that Red Bull conducted. Since then, a consistent growth in the energy drink business has been obse.ved.

And since then, has worked towards

the goal of making Red Bull a byword in the Philippine beverage industry. Red Bull has highlighted in all its marketing strategies and advertising campaigns the value of having an extra shot of energy in performing

Despite the economic and

political tunnoil of year 2000, Red Bull was still able to achieve double·digit gain versus 1999, proving that the product has become a staple in filipino living. Understanding the huge potential for growth, Red Bull strives to expand its market reach by giving focus to dedicated product distribution. It broke barriers by not limiting its distribution

one's daily activities.

Aiming to educate Filipinos of its esset\CC, emphasized whether you're young or old, male or female ''""'""''~ everyone needs an

extra boost of conce rHra1ion,

endurance and stamina

to get you through the day; and Red Bull is the best product for that particular need. Considering that Red Bull's target market is practically anyone whose body condition requires additional endurance and alertness, Red Bull should be readily available everywhere. The assurance of gaining immediate

rejuvenation is the main selling point of Red Bull to its buyers. hs immediate effects prove beneficial not only to those who enjoy an active lifestyle, but also to people who are taxed mentally. Besides the efficacy angle, what largely separates Red Bull from its competitors is the product's taste. The public perception that a product, which purports medicinal values, should also taste like medicine is shattered by the brand's candy-like taste, which from the onset has appealed to the Filipino taste buds.

ACHIEVEMENTS The growth of the energy drink industry has been phenomenal since the entry of Red Bull in 1993. Records

80

channels to the usual networks such as

supem1arkets and phannacies. Red Bull has made it a point to be present in all secondary, tertiary and other non·traditional outlets. In fact, it would not be a surprise nowadays to find Red Bull available in such obscure places as bakeries and bus stations. The ultimate aim of Red Bull is to be as available as soft drinks are, in tenns ofdistribution and product visibility.

HISTORY Energy Food and Drinks Incorporated was fonned in 1993 by the Chua Family to market and distribute Red Bull in the Philippines. It was during this time that the family was looking for a product that would capture the interest and fancy of the Filipino people. Red Bull originated in Thailand under the brand name Kratingdaeng. Even before it has set its foot in Philippine soil, the product was already enjoying a wide following in many Asian countries. During one oftheir visits to Thailand, the family saw how

successful the brand was in its home country. In faellhe product was so popular that it was nonnal for the streets of Bangkok to be littered with bottles of Red Bull. Seeing the huge potential of the product in the Philippines, the Chua Family was inspired to learn more about the brand. After doing thorough research in both the Philippine and Thai markets, the family was amazed by the similarities between the two in tcrmsofcconomicclimate, tastes and preferences. The Chua Family realized that given the opportunity, Red Bull would be a hit in the Philippines. Thus, after meeting with the manufacturers of Red Bull, Energy Food and Drinks, Inc. was appointed the Philippine distributor

of the brand. And the rest ns they say, is history.

THE PRODUCT Red Bull is composed of taurine, lysine, c:lffeineandother ''itamins. This mixture of vitamins and minerals allows

for the revitaliution ofthe body after strenuous physical or mental activity thereby ensuring optimum work perfonnanee. Among all the ene~y drinks in the market, Red Bull boasts of being the most potent in temlS of fomlUlation nnd efficacy. In Europe, Red Bull was introduced in a carbonated canned version, while in the PhilipJ>ines and most Asian

countries: Red Bull comes in the non-carbonated I50 mi. bottle fonn. In the future, the brand hopes to introduce more vnri:.nts to augment the current product

RECENT DEVELOPMENTS As early as 1993. Red Bull has been positioning itself in the field of sports, particularly in basketball, through participation in the Philippine Basketball U.gue (PBL). However. in the year 2000 Red Bull bec:lme part of the professional basketball scene when it became the 10" member of the Philippine Basketball Association (PBA) solidifying the brand and joining other industry leaders in Asia's most prestigious professional basketball league. The team ·s moniker, Th under, was selected from thousands of nnmes submitted by employees of Energy Food and Drinks. The name. which connotes strength and power, embodied the team's attitude to dominate its opponents. Considering the lineup ofother powerhouse teams, most people gave little chance to Red Bull's campaign in the 2000 season. NOtwithstanding the public's doubt, Red Bull was still able to garner 3,. place in the 2000 Governor's Cup. Howe\•er in the 2001 PBA Season. Red Bull bucked all odds and came out champions in the Commissioner's Cup FinAls, making it the 3~ youngest franchise to win a PBA championship.

PROMOTION From the day Red Bull arrived in the Philippines, Energy Food and Drinks became nc1iv~ in tri·media advertising. consumer and trade promotions. Since energy drinks were virtually unknown in the country, Red Bull's earlier advertising campaigns concentrated more on the essential benefits of the produet,as well as on the people who will benefit from consuming Red Bull. The ads were so successful that some were able to bag awards. It was in 199S when Red Bull launched its first nationwide consumer promo dubbed "Red !.lul l Power Trip,'' which gave its winners the opportullity to travel abroad and to start their own businesses. Another notionwidepromotion in 1997 saw the brand aiving away millions of pesos weekly. This was also the time when Red Bull had screen siren Rosana Roecs as its celebrity endorser. The TV commercial with an Amazon theme proved

effective in increasing sales and product recall. The year 1998 was a milestone not only in Red !lull 's advertising

JX>rtfolio but in Philippine advertising as well when popular screen hero Jean-Claude Van Dam me appeared as the product's endorser. This was the very first time a certified Hollywood Superstar filmed a local television commercial in the Philippines. The advertisement catapulted the brand, which otthe time was promoting Red Bull Supreme. to the top ofthe energy drink category. In fact, the campaign was so suecessful that despite the Asian economic crisis. Red Bull was able to sustain the growth projections for the year. Aside from organizing television, radio and print

campnigns,and national consumer promos, Red Oull also

sponsored various activities particularly those related to sports and high energy endeavors. From 1996 up to 1999, Red Bull sponsored the Rotary Club of Manila's Tower Awards, which recognized exceptional Filipino workers. The Awards highlighted how the product can be advantageous to Filipino workert, being its main target marl<et. ShiRing gears, Red Bull is also a major sponsor of the Binibining Pilipinas Charities, the biggest beauty pageant organizer in the country. Winners of the pageant represent the Philippines in intemationnl competitions such as Ms. International, Ms.

World and the biggest pageant of them all, Ms. Univers