Competitors a large effort in marketing promotion.
Competitors In the Hong Kong energy drink industry, Red Bull has several main direct competitors, Paolyta, Libogen and Shark. These products have similar main ingredients, taurine, glucuronolactone and caffeine with Red Bull. Therefore, these competitors provide the same benefit, which is to enhance energy, performance, concentration and speed of response by similar products. In addition, Shark keeps trying to attack Red Bull, by comparing the taste, benefits and usefulness through their advertisements and public relational events.Although Shark is still not very popular in Hong Kong, it should be a great potential threat for Red Bull in the future energy drink market.
Besides the direct competitors, Lucozade, Essence of Chicken and different brands of coffee are the indirect competitors for Red Bull. These products provide the similar benefits with Red Bull and serve the similar types of consumers. To compete with other brands of energy drinks, Red Bull is putting a large effort in marketing promotion. It becomes a well-known brand by using creative TV advertisements and the catchy slogan.It is successful for Red Bull to differentiate its image from other competitors by promotional campaigns. 2.
1. Competitors Review Generally, the popularity of energy drink has been greatly increased in recent years. Several big brands are competing for this profitable market. Not only direct competitors are competing with Red Bull, other indirect competitors like Lucozade are also posing a threat. All of the competitors’ products are distributed widely in convenient stores, supermarkets and departmental stores.
2. 1. 1.
Direct Competitors Libogen IntroductionLibogen was developed by Taisho Pharmaceutical in 1962 which has a longer history than Red Bull. This product is well-known in the international market but it is not very popular in Hong Kong. Product The prescription and ingredients of Libogen are quite similar to Red Bull. Both consist of taurine and caffeine and other chemical substances. It provides the same core benefits with Red Bull, which is improving mental and physical performance. The producer uses glass container to store its drink but the capacity per drink is less then Red Bull (only 100ml and 150ml). PriceThe price is about $9 per bottle for 100ml and $12 per bottle for 150ml which is relatively cheaper than Red Bull in one unit basis.
Place It is distributed widely in convenient stores, supermarkets and departmental stores. Promotion The Libogen does not spend a lot of marketing effort to make advertisement in Hong Kong. It has not put any advertisement in television and newspaper in recent years. Thus, it is not very popular in the younger generation of Hong Kong. Shark Introduction It is a very close competitor of Red bull in terms of ingredient, size, use and price.
It has a slogan for promotion, “Bring out the beast”. Generally, it is a very strong competitor of Red Bull, the evidences shown as below. Product Its ingredients consist of mainly chemical substances, such as carbonated water, sucrose, dextrose, choline and bitartrate, caffeine and vitamins.
Thus, its ingredients are quite similar to Red Bull. Moreover, the producer uses can as container and the design of can is very close to Red Bull. The capacity of each can is 250ml which is even the same as Red Bull.
PriceShark offers a discount in supermarkets when customers buy two cans at the same time. The average price of each can of Shark is about $12. 5 which is very close to Red Bull. Place Shark energy drink is also distributed widely in convenient stores, supermarkets and departmental stores Promotion It attempted to compete with Red Bull directly in foreign countries. One of their advertisements even attacks Red Bull directly by killing a bull.
However, as it has not put much effort in advertising in Hong Kong, though its distribution network is wide, it is not popular in Hong Kong.Nevertheless, we can see a big potential threat coming from Shark if it takes some actions to compete with Red Bull. Paolyta Introduction It is an energy drink originated from Taiwan and focuses mainly on Taiwan market. In Hong Kong, it does not compete very well, so it is a weak competitor of Red Bull. Product The prescription and ingredients of Paolyta are also similar to Red Bull. Price The price of each bottle of Paolyta is about $10 and there is no significant change in recent years.
Place Its distribution network is relatively poorer than Red Bull as it is only sold in convenient stores.Promotion It has placed a set of television advertisements in Hong Kong several years ago. However, there is no more advertisement is shown in Hong Kong afterward. 2. 1. 2. Indirect Competitors Lucozade Lucozade was developed in 1927 by an English pharmacist.
It has a similar function of Red Bull that is recharging people’s mind. However, the formula of this product is totally different from Red Bull. It is mainly made of glucose syrup which is proved that it does not have any negative effect to people’s health but this product cannot help people to enhance physical performance.
The Lucozade company recently has put a lot of resources to boost its sales include placing advertisements on television and introducing new versions of its products like Lucozade Extra. It uses also animation to tell people about the strength and major function of it which is to improve brain performance. Compare with other competitors, it introduced many flavors and the flavors are more likely to be accepted by people. Essence of Chicken Brand’s was found over 168 years ago and its product was invented in 1820’s by a chef of the British Royal Family.
It possesses a longest history among its competitors in Hong Kong.It stresses on increasing mental strength of people. The ingredient of Essence of Chicken is quite different from the others as it is made of essence of chicken. It recently introduced several different versions in Hong Kong. Furthermore, it invented a tablet form of the essence of chicken recently which helps to reduce resistance of its poor flavor and provides a more convenient way of having it. On the other hand, it has invited Eason Chan, a famous singer in Hong Kong as a spokesman to promote its products through advertisements.
In terms of price, its price is much higher than Red Bull and other competitors as listed below.Eason Chan Other indirect competitors Also, there is a huge amount of indirect competitors. They penetrate people’s lives. They are coffee, tea, milk tea and green tea. Although the producers do not stress on providing energy to people, many people still realize that this kind of products have this function. Also, they often have lower prices than the energy drink and seem that they are more natural. In fact, they may not pose a significant threat to Red Bull unless they have a great change in the products.
*Prices have been quoted on Wellcome online shopping website.