Burn Energy Drink

Brand Audit : Energy Drink BURNGlobal Energy Drinks MarketNiche category- Accounts for 2.7% of total soft drink consumption globallyExperienced dynamic growth over the past decade- Absolute volume growth: 4 billion liters Absolute value growth: US $26 billionMajor players- Red Bull, Monster, Rockstar, SoBe, Burn, Full ThrottleLeading players- Red Bull with 42% market share, Monster with 37% market shareWhile Soda sales have been declining steadily, energy drink sales have been boomingKey trends: Grand scale sports and music events sponsorships for brand placementsIntroduction of natural flavorsReplacement of caffeine with better substitutesIn volume terms, energy drinks remain a niche category, ranking sixth out of the eight soft drinks categories that Euromonitor International tracks in 2012, and accounting for only 2.7% of total soft drink consumption. Although this represents a 0.2 percentage points increase in volume share from 2007, the category has not kept pace with the growth of bottled water and RTD tea.

2Market sizes of each of the segments are as below Particulars Off-trade* (Shops & Other Retail Outlets) On-trade* (Pubs & bars, hotels & restaurants, cafs etc.) Total % of Total(Rs. Million) (Rs. Million) (Rs. Million) Bottled Water 65,662.0063,111.30128,773.3036.64%Carbonated Soft Drinks 63,434.2092,684.90156,119.1044.42%Concentrates 4,202.80- 4,202.801.20%Fruit/Vegetable Juices 40,398.7013,633.1054,031.9015.37%RTD Coffee 50.187.6137.70.04%RTD Tea 599.9144.2744.10.21%Sports and Energy Drinks 2,345.605,255.607,601.202.16%Total Soft Drinks 176,643.20174,829.10351,472.30100%Beverages Drink Market in India(Source: Euromonitor 2012)

Few Facts about energy drinks in IndiaCurrent Size 500 crNiche industry, at a nascent stageCAGR 25%First Energy Drink Shock in 2001Red Bull, launched in 2003, is the current market leader

Timeline of Energy Drink Market in India4Burn Energy DrinkAfter Shock failed to penetrate the Indian market in 2001, Coca Cola launched Burn in 2009Imports Burn from Malaysia to sell in IndiaPositioned as a premium product, available only in the HORECA segment and high end retailers, in Mumbai, Delhi and NCRTargeted towards socially active young adultsStrategy at the time of launch- Exclusivity and ExpansionFrom a market share of 11% in 2009, reduced to about 2% in 2012Faces intense competition in its targeted segment from Red BullBrand Inventory1. Brand Elements

Logo

Packaging

Slogan 300 ml500 ml - Not available in India 2. Kapferers Brand Identity PrismPicture of SenderPicture of RecipientExternalizationInternalizationPHYSIQUEPERSONALITY RELATIONSHIP CULTURE REFLECTION SELF IMAGEEnergeticYoungRebelSensualDynamicOverpassing limitsUpbeatEnergyQualityPotent

AmericanMusic

TrustParty drinkMood setterReflection-What consumers perception is regarding brandSelf Image-What person using Burn think of himselfRelationship is the handshake between consumer & OrganisationCulture-Country of Origin and the value it stands forPhysique is the basis of the brandPersonality is the personality of the brand if it was a human8High profile music events like - Burn Studios, Residency, etc. in Ibiza, SpainSponsors extreme sports like Skateboarding and snowboarding all across Europe, short films on the sameAdvertisements focused around music and extreme sports

COMMUNICATIONSCOMMUNICATIONSEntered Formula 1 racing with a sponsorship deal with the Lotus F1 team

No TVCs and internet marketing for the Indian market

Below the Line sales promotion - Out Of Home campaign in Mumbai, Delhi and Bangalore

Activities like sampling, event sponsorships and community based marketing initiatives with focus on restaurants, clubs and bars

Point of sales promotions

Social NetworkingActive on social networking- Facebook, Twitter, Flickr, Vimeo, YouTube

Burn Car by Dilip Chhabaria

as part of the brand's first on ground activation, the beverage giant has launched the Burn Car - a vehicle designed by ace automobile designer Dilip Chhabria - to conduct sampling of the brand. Actually, Chhabria has worked his magic on a Matiz this time.12Burn CurateCompetitions for best costume inspired by Burn can in Delhi and Mumbai: 2010, 2011Enlisted digital media and campaigns to generate responseIcons such as Sabyasachi, Rocky S, Sapna Bhavnani, DJ Pearl to promote the events

Direct CompetitorsEnergy drinks brands like:Red Bull Market leader, with 62% market shareMass brand, with availability in all segmentsCloud 9Manufactured by Mumbai based Goldwin HealthcareMonsterRecently launched at select locations in metropolitans XXXLocal brand, manufactured by Viiking Beverages Pvt. Ltd., owned by Sachiin JoshiTzingaRecently launched local brand, popular due to its pouch packaging and lower prices, owned by Hector Beverages

Market Share of Key Players in IndiaDirect Competition AnalysisEnergy DrinkCaffeine ContentVariantsVariantsRed Bull0.32%4Original, Sugar free, Cola, Total ZeroBurn0.32%4Original, Fruit-flavored, Mocha, Sugar FreeCloud 90.30%2Premium, Fruit-flavoredPower Horse0.31%3Regular, Sugar Free, SodaXXX0.10%3Rejuve, Nicofix, MinusTzinga0.30%3Lemon Mint, Tropical Trip, Mango StrawberryIndirect Competitors

Indirect Competitors

Soft Drink Market

Coffee

Sports Energy drinks

Glucose based drinks and powdersPackagingSimilar Distribution Model

Caffeine

Energy /Sugar

Instant StaminaPOPCarbonatedLesser Caffeine Content

Milk Base

Zero Caffeine content

Zero Caffeine ContentPODCustomers Speak: Why do you like this specific Brand?Tzinga-Lower price.If these companies start manufacturing in India then prices would be low so more customers.18Pricing and PackagingEnergy DrinksRed BullCoke BurnCloud 9Power HorseTzingaXXXPackaging TypeCanCanSlimmer Can CanCanShorter CanPouchesCanVolume(ml)250355300180250250250250Prices (Re)95120954585752575Price / ml0.380.340.320.370.340.30.100.30Brand ExploratoryInconsistencies and problem areasReduction in market shareMarket share in India in 2009- 11%Market share in 2012- 2%Lack of brand awarenessLack of retail availability- a premium brand priced on the same lines as mass brandsNew entrants like Tzinga to further intensify competitionCustomer FeedbackOf the 84 survey respondents aged between 18-28,100% had heard of Red Bull90% had heard of Tzinga69% had heard of Cloud943% xxx21% had heard of BURN24% knew about Monster15% had heard of KS

78% want price to be lower than Rs 60Summary of findingsRecommendationsBuild Awareness: Start ATL marketing for mass reachChange positioning: From premium brand to a mass brand Decrease prices- with license to product in India, Coke can reintroduce Burn with its new packaging and at lower prices, to attract the mass segmentBring out association to music by sponsoring events like the Sunburn music festival in Goa and Noida, which attract a crowd of more than 50,000 trance music loversBe more vocal about Burn being a Coca Cola brandRe-introduce sampling, after awareness has been established