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red bull sm

Dec 26, 2014



1 CUNTENTS MlSSlCn S1A1LMLn1 LvALuA1lCn 4 vlSlCn S1A1LMLn1 LvALuA1lCn (based on bulldlna vour companv's vlslon publlshed ln Parvard 8uslness 8evlew) 4 1 MAC8CLnvl8CnMLn1AL AnAL?SlS Anu lnuuS18? A118AC1lvLnLSS 7 orLer's llve lorces 7 1 1hreaL of new LnLranLs 7 2 8araalnlna power of suppllers 9 3 8araalnlna ower of 8uvers 10 4 1hreaL of SubsLlLuLes 11 3 ueLermlnanLs of 8lvalrv amona LxlsLlna llrms 13 Cverall lndusLrv 8aLlna 14 SuMMA8? Cl C81L8'S 3 lC8CLS AnAL?SlS 13 LS1 AnAL?SlS 16 1 ollLlcal AspecLs 16 2 Lconomlcal AspecLs 16 3 Soclal AspecLs 16 4 1echnoloalcal AspecLs 17 Lx1L8nAL lAC1C8 LvALuA1lCn (LlL) 18 LxLAnA1lCn 18 2 CCMAn? Anu CCML1l1C8 AnAL?SlS 20 CM (compeLlLlve proflle maLrlx) 20 LxLAnA1lCn 20 3 MlC8CLnvl8CnMLn1AL AnAL?SlS Anu ln1L8nAL CCMAn? 8LSCu8CLS 22 1 MAnACLMLn1 Cl vALuL CPAln 22 SupporL AcLlvlLles 22 rlmarv AcLlvlLles 23 CC8L CCML1LnClLS 24 S18A1LClC CCS1 MAnACLMLn1 8CCLSS 23 llnAnClAL 18Lnu 26 ln1L8nAL lAC1C8 LvALuA1lCn (llL) 27 LxLAnA1lCn 27 2 S18A1LClC AnAL?SlS Anu 8LCCMMLnuA1lCnS 29 4 S18A1LClC AnAL?SlS Anu 8LCCMMLnuA1lCnS 30 CLnL8lC S18A1LClLS 30 8easonlna 30 SLraLeav 31 ros/cons 31 CorporaLe SLraLeav 31 MarkeL eneLraLlon 31 roducL uevelopmenL 32 CurrenL SLraLeav 32 SCu8CL Cl CCML1l1lvL AuvAn1ACL 33 S18A1LC? Anu 8CCSLu CPAnCLS 34 MA1CPlnC S1ACL 33 1 1CWS MA18lx 33 2 SACL MA18lx 36 3 C8Anu S18A1LC? MA18lx 37 4 lL MA18lx 38 3 8CC 39 MA18lx AnAL?SlS Anu 1CWS SuMMA8? 40 uLClSlCn S1ACL 41 S18A1LClC lMLLMLn1A1lCn 43 3 S18A1LClC lMLLMLn1A1lCn 44 S18uC1u8L CuL1u8L 44 8LSCu8CLS 44 S18A1LC? # 1 1Au8lnL l8LL 8Lu 8uLL 44 S18A1LC? # 2 ulvL8Sll?lnC ln1C SC81S u8lnkS MA8kL1 43 S?nL8ClLS ln vALuL CPAln 46 l1lALLS ln S18A1LClC lMLLMLn1A1lCn 46 SCC8L CA8u 48 ulACnCS1lC Su8vL? Cl 8lMA8? Anu SLCCnuA8? MAnACLMLn1 8AC1lCLS 49 8l8LlCC8AP? 33 3 "MI55ICN AND VI5ICN LVALUA1ICN" kLD 8ULLL GIVL5 CU WIIING5 4 MISSIUN STATEMENT EVALUATIUN we ote JeJlcoteJ to opbolJloo keJ 8oll stooJotJs wblle molotololoo tbe leoJetsblp posltloo lo tbe eoetov Jtloks coteootv wbeo Jellvetloo sopetlot costomet setvlce lo o bloblv efflcleot ooJ ptofltoble moooet we cteote o coltote wbete emplovees sbote best ptoctlces JeJlcoteJ to coocbloo ooJ Jeveloploo oot otooolsotloo os oo emplovet of cbolce Mlsslon sLaLemenL ls evaluaLed of followlna nlne componenLs O cusLomers O producLs or servlces O aeoaraphlcallv where does Lhe flrm compeLe O concern for arowLh and proflLablllLv O hllosophv (baslc bellefs values compeLence or ma[or compeLlLlve advanLaae) O SelfconcepL O Concern for publlc lmaae O Concern for emplovees 8ed 8ull's mlsslon sLaLemenL does noL Lalk abouL who Lhelr cusLomers are 1hls mav be reason whv 8ed 8ull LaraeLs aLhleLes sLudenLs professlonals clubbers concerL slnaers eLc Whereas lL Lalks abouL lLs producL whlch ls enerav drlnk 1hev have noL speclfled Lhe aeoaraphlcal locaLlons Concern for arowLh and proflLablllLv ls hlahllahLed ln Lhelr mlsslon sLaLemenL 1helr phllosophv ls Lo malnLaln 8ed 8ull sLandards lL ls sLaLed LhaL companv's mlsslon ls Lo malnLaln Lhe leadershlp poslLlon ln enerav markeL buL Lhls parL of Lhe mlsslon sLaLemenL should be lncluded ln vlslon sLaLemenL under 8PAC aoals As far as selfconcepL ls concerned mlsslon sLaLemenL lacks proper descrlpLlon whaL are companv's ma[or sLrenaLhs and compeLlLlve advanLaae Concern for publlc lmaae ls also noL lncluded ln Lhe sLaLemenL Powever Lhls sLaLemenL has clearlv sLaLed abouL concern for emplovees VISIUN STATEMENT EVALUATIUN {basd on "building your company's vision, publisbd in Harvard Businss Rviw) 1o spread our wlnas over Lhe world Mlsslon sLaLemenL has Lo be evaluaLed of Lhe followlna basls 1 Core ldeoloav (endurlna characLer of an oraanlzaLlon) a Core purpose 3 b Core values 2 Lnvlsloned fuLure a 8PAC (bla halrv audaclous aoals) b vlvld descrlpLlon vlslon sLaLemenL's maln purpose ls Lo descrlbe where companv wanLs Lo ao When vlslon sLaLemenL ls creaLed for a companv lL Lalks abouL dreams and hopes for vour buslness 8ased on Lhe above sLaLed elemenLs 8ed 8ull's vlslon should lnclude core values whlch are auldlna prlnclples bv whlch a companv navlaaLes Culdlna prlnclples are noL abouL how companv would caplLallze on an opporLunlLv lL ls abouL values core purpose and values on whlch a companv sLands A companv can chanae lLs enLlre producL llne and enLer lnLo a new markeL seamenL buL core values remaln Lhe same Core purpose deflnes Lhe need whlch a companv seeks Lo saLlsfv 8PAC are amblLlous plans whlch a companv alms Lo achleve ln a speclfled perlod of Llme vlvld descrlpLlon descrlbes whaL wlll be Lhe ouLcome of achlevlna 8PAC 8ed 8ull's vlslon sLaLemenL should be We creaLe a worklna envlronmenL ln whlch emplovees are respecLed and are Lralned Lo maxlmlze Lhelr skllls We seek Lo provlde rellable producLs Lo our cusLomers and wlll never compromlse on cosL for quallLv We wlll malnLaln our leadershlp poslLlon ln Lhe enerav drlnk markeL 1hrouah Lhls we alm Lo lncrease proflLablllLv and become a brand whlch ls well known ln enerav drlnk markeL" 6 MACkCLNVIkCNMLN1AL ANAL5I5 AND INDU51k A11kAC1IVLNL55 kLD 8ULLL GIVL5 CU WIIING5 7 MACRU-ENVIRUNMENTAL ANALYSIS AND INDUSTRY ATTRACTIVENESS ortr's Fiv Forcs Applvlna orLer's flve forces Lo Lhe aklsLanl enerav drlnk markeL allows us Lo aarner a reLrospecLlve vlew of Lhe poLenLlal aLLracLlveness ln Lerms of proflLablllLv of Lhe lndusLrv We flrsL musL analvze Lhe lndusLrv Lhrouah Lhe flveforce LemplaLe whlch wlll allow us Lo more accuraLelv aauae Lhe lndusLrv ln Lerms of lLs poLenLlal When dlscusslna Lhe beveraae lndusLrv we are referrlna Lo noL onlv Lhe 8ed 8ull's lmporL from AusLrla vla uubal buL because 8ed 8ull aklsLan ls a whollv owned subsldlarv of 8ed 8ull AusLrla We are also lncludlna Lhe dlsLrlbuLlon lndusLrv because 8ed bull has lLs dlsLrlbuLlon parLners (us) Chawla Croup for lLs dlsLrlbuLlon all over karachl 1herefore all our analvLlcal sLudles wlll follow boLh Lhe lmporLlna and dlsLrlbuLlna from Lhe perspecLlve of 8ed bull whlch ln facL comes under one lndusLrv Lhe beveraae lndusLrv Tbrat of nw Entrants: A 1nkLA1 CI NLW LN1kAN15 L5 NC 1 uo larae flrms have a cosL performance advanLaae ln vour seamenL of Lhe lndusLrv? k 2 Are Lhere anv proprleLarv producL dlfferences ln vour lndusLrv? k 3 Are Lhere anv esLabllshed brand ldenLlLles ln vour lndusLrv? k 4 uo vour cusLomers lncur anv slanlflcanL cosLs ln swlLchlna suppllers? k 3 ls a loL of caplLal needed Lo enLer vour lndusLrv? k 6 ls servlceable used equlpmenL expenslve? k 7 uoes Lhe newcomer Lo vour lndusLrv face dlfflculLv ln assesslna dlsLrlbuLlon channels? k 8 uoes experlence help vou L o conLlnuouslv lower cosL? k 9 uoes Lhe newcomer have anv problems ln obLalnlna Lhe necessarv skllled people maLerlals or suppllers? k 10 uoes vour producL or servlce have anv proprleLarv feaLures LhaL alve vou lower cosLs? k 11 Are Lhere anv llcences lnsurances or quallflcaLlons LhaL are dlfflculL Lo obLaln? k 12 Can Lhe newcomer expecL sLrona reLallaLlon on enLerlna Lhe markeL? k Larae flrms do have a cosL or performance advanLaae ln our seamenL of lndusLrv AlLhouah enerav drlnks are slmllar ln Lhelr naLure Lhev dlffer areaLlv ln Lhelr lnaredlenLs and lLs concenLraLlon level Lnerav drlnk markeL ls arowlna llke a weed Companles are sLrlvlna Lo puL ouL Lhe besL enerav drlnk deslaned for Lhe poLenLlal cusLomer LhaL Lhev have ln mlnd 1hev are concerned wlLh packlna whaLever lnaredlenLs Lhev can Lo lmprove Lhe sLamlna and 8 phvslcal performance of human belnas 1herefore Lhe prlmarv dlfference LhaL dlsLlnaulshes manv enerav drlnks ls Lhe lnaredlenL llsL 1here are manv esLabllshed brand ldenLlLles ln Lhls lndusLrv such as blue ox power plus power house CaLorade LxcepL power plus all Lhe exlsLlna brands ln Lhls lndusLrv belonas Lo forelan companles CusLomers do noL face anv slanlflcanL cosLs ln swlLchlna suppllers as Lhev are free Lo choose anv brands Lhev wlsh no facLor resLrlcLs Lhem Lo use anv parLlcular brand lL ls easv cheap and convenlenL Lo buv anv oLher brand Lhev wlsh Wholesalers do noL flnd lL dlfflculL Lo lmporL enerav drlnks ln aklsLan because Lhev do noL need a loL of caplLal Lo do so 1he new comers face dlfflculLv ln accesslna dlsLrlbuLlon channels ln aklsLan 1hls ls because of Lhe aareemenLs made beLween Lhe dlsLrlbuLors and companles under whlch dlsLrlbuLors are allowed Lo clrculaLe onlv companv relaLed brands new comers face excesslve cosL Lo Lurn Lhese dlsLrlbuLors ln Lhelr favour MosLlv oLher brands of enerav drlnks do noL have a franchlse based svsLem buL onlv Lhev are lmporLed bv whole sellers who make Lhem avallable ln markeLs and creaLe a compeLlLlon ln Lhe lndusLrv ulsLrlbuLors on Lhe oLher hand have Lo make sure LhaL producL ls avallable LhrouahouL Lhe counLrv and Lherefore face hlah cosLs 8ed 8ull has 3 dlsLrlbuLlon parLners who are responslble for evervLhlna afLer landlna of Lhls producL Lo aklsLan's franchlse of 8ed 8ull MosL of Lhe forelan enerav drlnk brands sold ln aklsLan have manufacLurlna planLs ln Lhelr home counLrv Lhev come Lo aklsLan vla lmporLlna of whole sellers whlle ln aklsLan Lhev mosLlv focus on dlsLrlbuLlon channels and markeLlna 1herefore Lhls also shows how dlfferenL companles wlll compeLe more on dlsLrlbuLlon channels Lhan Lhe producL lLself Lxperlence does helps ln conLlnuouslv lower cosLs 1hls ls because of sLrona dlsLrlbuLlon parLnershlp made beLween Lhe companv and dlsLrlbuLor Maln cosL faced ln aklsLan bv Lhese forelan companles conslsLs of dlsLrlbuLlon cosL Cood relaLlonshlp creaLed Lhrouah lona Lerm buslness deallnas wlLh dlsLrlbuLors ensures dlsLrlbuLors confldence and lower baraalnlna power over Lhe companv lLself 1here are some baslc requlremenLs LhaL need Lo be fulfllled before enLerlna Lhls lndusLrv ln aklsLan people have mlsconcepLlon abouL Lhe producL lnaredlenLs and lLs slde effecLs 1herefore some resLrlcLlons are placed bv aovernmenL before lnlLlaLlna anv of such pro[ecLs CovernmenL needs Lo be assured of producL quallLv and sLandard 1herefore before sLarLlna a buslness companv needs Lo aeL permlsslon for buslness new comer expecLs sLrona reLallaLlon on enLerlna Lhe markeL 1hls reLallaLlon comes naLurallv as 8ed 8ull ls sLrona brand almosL acLlna llke a monopolv 1herefore as a 9 monopollsL lL ls expecLed for Lhem Lo malnLaln lLs poslLlon and derall anvone who comes as an obsLacle Cvera|| |t can be conc|uded that |t has h|gh barr|er to entry and thus more prof|tab|e for f|rm Ma|n reason for th|s |s the necess|ty of strong d|str|but|on channe| requ|red for w|despread ava||ab|||ty of the product and strong brand names that ex|st |n the market Bargaining powr of supplirs D 8AkGAINING CWLk CI 5ULILk5 L5 NC 1 Mv lnpuLs (maLerlals labour suppllers servlces eLc) are sLandards raLher Lhan unlque or dlfferenLlaLed k 2 l can swlLch beLween Lhe suppllers qulcklv and cheaplv k 3 Mv suppllers would flnd lL dlfflculL Lo enLer mv buslness or mv cusLomers would flnd lL dlfflculL Lo perform mv funcLlon ln house k 4 l can subsLlLuLe mv lnpuLs readllv k 3 l have manv poLenLlal suppllers k 6 Mv buslness ls lmporLanL Lo mv suppllers k 7 Mv cosLs of purchases has k 1he lnpuLs are sLandard raLher Lhan unlque or dlfferenLlaLed 1hls ls because 8ed 8ull operaLlna ln aklsLan ls a [usL a franchlse whlch lmporLs baslc producLs from Lhe suppller ln AusLrla and uubal and sold lL ln aklsLan Lhrouah 3 dlsLrlbuLlon parLners 1herefore Lhe producL LhaL Lhese dlsLrlbuLors aeL ls sLandardlzed Suppllers of Lhe lnaredlenLs of 8ed 8ull (WaLer sucrose alucose sodlum clLraLes carbon dloxlde Laurlne aaave alucuronolacLone caffelne lnoslLol nlacln panLoLhenlc acld vlLamln 86 vlLamln 812 caramel and rlboflavln) are needed bv oLher lndusLrles as well and 8ed bull has Lhe opLlon of swlLchlna lLs suppllers because Lhe lnpuLs are sLandard Lherefore 8ed 8ull has a power over Lhelr suppllers 8uL on Lhe oLher hand Lhe suppllers have number of oLher lndusLrles Lo supplv Lo Lherefore Lhev also have a power ln Lhe lndusLrles Lherefore Lhls force ls aeLLlna a neuLral raLlna 8ed bull's suppllers would flnd lL dlfflculL Lo enLer Lhls buslness 1hls ls because manaalna a dlsLrlbuLlon svsLem from such a dlsLance ls verv compllcaLed and lnvolves huae amounL of resources Suppllers are aeLLlna Lhelr work done Lhouah dlsLrlbuLors aL reasonable and compeLlLlve raLes Suppllers' lnvolvemenL lnLo dlsLrlbuLlon svsLem mlahL resulL ln addlLlonal cosL Lherefore Lhev are mosL llkelv noL lnLeresLed ln enLerlna lnLo dlsLrlbuLlon buslness 8ed bull's buslness ls lmporLanL Lo lLs suppllers as lL aeneraLes areaL deal of revenue for Lhem and cosL of purchase does have a slanlflcanL lnfluence on Lhe overall cosLs (63 per can) cosL ls lncurred when Lhls producL ls lmporLed 10 Bargaining owr of Buyrs 8 8AkGAINING CWLk CI 8ULk5 (1o whaL exLenL vour cusLomers locked lnLo vou?) L5 NC 1 Are Lhere a larae number of buvers relaLlve Lo Lhe number of flrms ln Lhe buslness? k 2 uo vou have a larae number of cusLomers each wlLh relaLlvelv small purchases? k 3 uoes Lhe cusLomer face anv slanlflcanL cosLs ln swlLchlna suppllers? k 4 uoes Lhe buver need a loL of lmporLanL lnformaLlon? k 3 ls Lhe buver aware of Lhe need for addlLlonal lnformaLlon? k 6 ls Lhere anvLhlna LhaL prevenLs vour cusLomer from Laklna vour funcLlon ln house? k 7 ?our cusLomers are noL hlahlv senslLlve Lo prlce k 8 ?our producL ls unlque Lo some dearee or has accepLed brandlna k 9 ?our cusLomers' buslnesses are proflLable k 10 ?ou provlde lncenLlves Lo Lhe declslon makers k 8ed 8ull who ls orlalnallv from AusLrla where lL ls sLlll produced dlsLrlbuLes Lhelr enerav drlnk ln over LwenLv counLrles So lL would be noL verv useful Lo resLrlcL Lhe LaraeL markeL Lo Lhe aeoaraphlc areas as well as Lhe psvchoaraphlc seamenLaLlon for Lhe LaraeLed consumer LhaL's because for a producL llke 8ed 8ull lL would be far Loo narrow as lL cuLs across llfesLvles demoaraphlcs and socloeconomlc boundarles So Lhe besL soluLlon would be Lo seL Lhe LaraeL markeL as a behavloural seamenLaLlon 1he reason for LhaL declslon ls because ln a behavloural seamenLaLlon Lhe lndlvldual's relaLlonshlp wlLh Lhe producL and Lhe use and beneflL souahL from Lhe producL 8ed 8ull ls noL [usL an enerav drlnk lL ls prlmarllv a uLlllLv drlnk Lo be Laken aaalnsL menLal or phvslcal wearlness or exhausLlon lLs use helps Lo lncrease endurance and helahLen alerLness as well as reacLlons and aenerallv spoken Lhe use of 8ed 8ull helps Lo cope wlLh Lhe challenaes of evervdav llfe whlch lncludes work lelsure and sporLs 1hree maln sLereoLvped uses can be ldenLlfled 1he baraalnlna power of buver ls low ln Lhls lndusLrv AlLhouah Lhere aren'L a larae number of cusLomers and cusLomers don'L lncur anv cosLs ln swlLchlna brands Lhe lndusLrv seems preLLv aLLracLlve ln Lerms of buver power llrsL of all Lhe cusLomer doesn'L requlre anv lmporLanL lnformaLlon reaardlna Lhe producL lL's an enerav drlnk wlLh lLs apparenL funcLlonallLv and Lhere's no need Lo convev addlLlonal lnformaLlon concernlna Lhe usaae of 8ed 8ull 8ed 8ull caLers Lo a nlche markeL ln aklsLan and lL ls noL prlce senslLlve 1he prlce of 8ed 8ull has aone 63 k8 Lo 133 k8 and veL Lhere has been no vlslble chanae ln Lhe sales 1he brandlna of 8ed 8ull has carefullv lmplemenLed lL has a verv sLrona presence ln Lhe markeL 1he companv promoLes Lhe 8ed 8ull brand dlrecLlv Lo CeneraLlon ? Lhe socalled mlllennla's people born afLer 1981 who are belleved Lo be cvnlcal of LradlLlonal markeLlna sLraLeales Also Lhe companv baslcallv focuses on vlral MarkeLlna expecLlna LhaL arowlna numbers of LaraeL consumers caLch Lhe bua and lLs repuLaLlon spreads Cloballv 8ed 8ull assoclaLes lLs brand wlLh vouLh culLure and exLreme and advenLurerelaLed sporLs one 11 example of whlch ls LhaL 8ed 8ull sponsors lLs own Leam ln nASCA8 SprlnL Cup Serles Powever ln aklsLan Lhere are no exLreme sporLs LhaL 8ed 8ull as a brand can relaLe Lo 8ed 8ull concenLraLes on sLudenLs worklna men and women (professlonals) who need Lo sLav up aL nlahL and people parLlclpaLlna ln sporLs 8ed 8ull drlnkers are consldered dvnamlc eneraeLlc and happenlna personallLles Lhe LralLs LhaL Lhe urban populaLlon of aklsLan mosL wanLs Lo relaLe Lo 8ed 8ull suppllers are called Lhe ulsLrlbuLlon arLners 1here are a LoLal of 3 ulsLrlbuLlon arLners ln aklsLan 8ed 8ull sells Lo Lhe us whlch ln Lurn provlde Lo Lhe consumers lormerlv 8ed 8ull was onlv avallable aL llmlLed ouLleLs now 8ed 8ull ls avallable aL everv sLore of promlnenL clLles 1he dlsLrlbuLors have Lo lncur a hlah cosL due Lo Lhls mass dlsLrlbuLlon 1o counLer Lhls flaw 8ed 8ull leLs Lhe us deal wlLh Lhe flnal prlce 1hls helps ln maklna 8ed 8ull's prlmarv cusLomers' buslness proflLable 1he above ment|oned arguments |eave us w|th the |dea that buyer power |s |ow |n the |ndustry because consumers do not have enough cho|ces to sw|tch to other brands and they are ready to pay h|gher pr|ces Tbrat of Substituts: C 1nkLA1 CI 5U851I1U1L5 (Some oLher producL or servlce LhaL performs Lhe same [ob as vours) L5 NC 1 SubsLlLuLes have performance llmlLaLlons LhaL do noL compleLelv offseL Lhelr lowesL prlce Cr Lhelr performance ls noL [usLlfled bv Lhelr hlaher prlce k 2 1he cusLomer wlll lncur a cosL ln swlLchlna Lo a subsLlLuLe k 3 ?our cusLomer has no real subsLlLuLe k 4 ?our cusLomer ls noL llkelv Lo a subsLlLuLe k MosL enerav drlnks are carbonaLed drlnks LhaL conLaln larae amounLs of caffelne and suaar wlLh addlLlonal lnaredlenLs such as 8 vlLamlns amlno aclds and herbal sLlmulanLs 8ed 8ull falls ln Lhls caLeaorv Lnerav drlnks are used Lo saLlsfv Lhe need for qulck menLal alerLness Several subsLlLuLes were ln Lhe markeL for enerav drlnks even before enerav drlnks were lnLroduced lor example coffee can be subsLlLuLe for 8ed 8ull because of Lhe aeneral percepLlon of consumer LhaL lLs consumpLlon promoLes menLal alerLness was dlscovered ln 9Lh cenLurv A number of oLher subsLlLuLes for enerav drlnks are 12 ounce 8everage Caffe|ne content |n m||||grams Coffee 8rewed 80133 Coffee Lspresso (2 ounces) 100 Coffee lnsLanL 63100 1ea lced 47 1ea lnsLanL 30 1ea areen 13 PoL cocoa 14 ChocolaLe Mllk (8 oz) 3 SCu8CLS naLlonal SofL urlnk AssoclaLlon uS lood and urua AdmlnlsLraLlon 8unker and McWllllams epsl SllmlasL 8esldes Lhe subsLlLuLes menLloned above need for menLal alerLness or exLra enerav can also be saLlsfled bv consumlna dark chocolaLe CLher sofL drlnks such as Coca Cola ur epper MounLaln uew SprlLe 3C epsl and oLhers conLalnlna caffelne can a be subsLlLuLe for enerav drlnks resences of manv subsLlLuLes ln Lhe markeL LhaL are easllv avallable pose a cerLaln LhreaL Lo enerav drlnks 1hese subsLlLuLes are easllv avallable ln shops and have a beLLer dlsLrlbuLlon as compared Lo 8ed 8ull's dlsLrlbuLlon SwlLchlna cosLs ls Lhe prlce we pav for swlLchlna Lo anoLher producL 1hese lnclude exlL fees search cosLs learnlna cosLs coanlLlve efforL emoLlonal cosLs equlpmenL cosLs lnsLallaLlon and sLarLup cosLs flnanclal rlsk psvcholoalcal rlsk and soclal rlsk As none of Lhe above sLaLed cosL can be assoclaLed wlLh enerav drlnk markeL LhreaL of subsLlLuLe ls hlah AnoLher verv lmporLanL facLor whlch has lncreased LhreaL of subsLlLuLlon ls abouL 1aurlne conLenL of enerav drlnks especlallv 8ed 8ull resence of Laurlne ln 8ed 8ull has a neaaLlve lmpacL of consumer because Lhev belleve lL ls exLracLed from bull urlne 1hls reason has creaLed a mlsconcepLlon ln Lhe mlnds of consumers Powever companv clalms LhaL 1aurlne used ls svnLheLlcallv produced Some sLudles also suaaesL LhaL Laurlne caused anxleLv lrrlLablllLv hlah senslLlvlLv Lo nolse and selfmuLllaLlons When compared wlLh coffee or Lea Lhere are no conLroversles or slde effecLs Also consumpLlon quanLlLv of enerav drlnks ls llmlLed because over consumpLlon can cause hearL Lroubles 1hls suaaesLs LhaL consumers are llkelv Lo subsLlLuLe 13 1herefore threats of subst|tutes |f h|gh as strong subst|tutes are present |n the market and consumers have a m|sconcept|on about certa|n |ngred|ents conta|ned |n the dr|nks Dtrminants of Rivalry among Existing Firms: L DL1LkMINAN15 CI kIVALk AMCNG51 LkI51ING CCML1I1Ck5 L5 NC 1 1he lndusLrv ls arowlna rapldlv k 2 1he lndusLrv ls noL cvcllcal wlLh lnLermlLLenL overcapaclLv k 3 1he flxed cosLs of Lhe buslness are a relaLlvelv low porLlon of LoLal cosLs k 4 1here are slanlflcanL producL dlfferences and brand ldenLlLles beLween Lhe compeLlLors k 3 1he compeLlLors are dlverslfled raLher Lhan speclallzed k 6 lL would noL be hard Lo aeL ouL of Lhe buslness because Lhere are no speclallzed skllls and faclllLles or lona Lerm conLracL commlLmenLs eLc k 7 Mv cusLomers would lncur slanlflcanL cosLs ln swlLchlna Lo a compeLlLor k 8 Mv producL ls complex and requlres a deLalled undersLandlna on Lhe parL of mv cusLomers k 9 Mv compeLlLors are all of approxlmaLelv Lhe same slze as l am k 1he enerav drlnk lndusLrv ln aklsLan has a hlah concenLraLlon raLlo meanlna LhaL fewer flrms hold Lhe laraer parL of Lhe markeL Lspeclallv slnce Lhls markeL ls smaller ln aklsLan Lhen ln oLher counLrles and also has a slower arowLh raLe 1hls can be due Lo Lhe hlaher prlces of Lhe producL 1hls means LhaL enerav drlnk lndusLrv ls less compeLlLlve and Lhls facL makes Lhe lndusLrv favourable 1he lnLenslLv of rlvalrv ln Lhe lndusLrv ls deflned bv manv characLerlsLlcs as explalned below 1here are a small number of flrms ln Lhe lndusLrv wlLh a hlah markeL share as opposed Lo manv flrms wlLh slmllar markeL shares 1he hlahesL rlvalrv Lowards 8ed 8ull ls followed bv ower Porse MarkeL arowLh raLe ls low and Lhe exlsLlna flrms have Lo flahL for markeL CusLomers here can freelv swlLch Lhelr brand preference wlLhouL lncurrlna anv cosLs whlch ls an unfavourable facLor for Lhe lndusLrv 1houah Lhere ls llLLle dlfference ln Lhe producL lLself 8ed 8ull has creaLed an lmaae such LhaL consumers are verv brand loval maklna lL a poslLlve for Lhe lndusLrv LxlL barrlers are hlah ln Lhe lndusLrv due Lo Lhe hlah Lechnoloav and research and developmenL used ln maklna and deslanlna of Lhe producLs An enerav drlnk has speclal 14 lnaredlenLs whlch use expenslve and rare raw maLerlals and need speclallzed skllls and experLlse and expenslve flxed cosLs lnvolved 1he rlvals are noL dlverslfled as mosL of Lhe flrms have slmllar backarounds and hlsLorv whlch makes Lhe lndusLrv sLable and favourable 1houah aklsLanl lndusLrv do noL have dlrecL franchlse of rlval brands buL whole sellers lmporL Lhem and puL Lhem ln compeLlLlon wlLh 8ed 8ull 1he enerav markeL lndusLrv has alreadv experlenced an lndusLrv shakeouL as manv new enLranLs [umped ln wlLh a forecasL of hlah lndusLrv arowLh buL Lhen all Lhe lncompeLenL flrms had Lo exlL slnce supplv exceeded demand lor lnsLance 8lue Cx dlsconLlnued ln 2003 1he enerav drlnk lndusLrv has raLher predlcLable buslness cvcles as demand lncreases wlLh advenL of sporLs evenLs and exams 1he compeLlLors are smaller Lhan 8ed 8ull Lhus oLher compeLlLors mav consLanLlv Lrv Lo emplov sLraLeales Lo aaln more markeL share 1he ana|ys|s |eaves us w|th the conc|us|on that the energy dr|nk |ndustry has more character|st|cs that are negat|ve than pos|t|ve 1he s|ow growth rate of market and h|gh ex|t barr|ers a|| make an |ndustry unfavourab|e and d|ff|cu|t to operate |n Uvrall Industry Rating: Iavourab|e Moderate Unfavourab|e 1) 1hreaL of new enLranLs 7 3 2 2) 8araalnlna power of buvers 3 1 4 3) 1hreaL of subsLlLuLes 1 3 4) 8araalnlna power of suppllers 3 4 3) lnLenslLv of rlvalrv amona Lhe compeLlLors 3 1 3 13 SUMMARY UF URTER'S FURCES ANALYSIS: 1he beveraae lndusLrv wlLh lLs 60 vears of esLabllshed presence ls unaLLracLlve for enerav drlnks because of facLs dlscussed above Lhrouah orLer's llve lorces 8ed 8ull ls well poslLloned ln Lhls lndusLrv so as Lo aLLaln a compeLlLlve edae Lhouah lndusLrv ls unaLLracLlve buL more oLher companles are lmporLlna oLher enerav drlnks whlch ls lncreaslna Lhe compeLlLlon ln Lhe markeL lmporLlna procedures are also easv ln aklsLan onlv heavv Laxes are pald and enerav drlnks can be lmporLed efforLlesslv 8uvers are ln a nlche markeL hence Lhe hlaher prlces are of no concern Lo Lhem so Lhev have low baraalnlna power 1hls ls also a reason whv Lhe companv seL up of 8ed 8ull does noL lnclude Lall oraanlzaLlon sLrucLure onlv few people are lnvolved ln Lhe manaaemenL and resL ls Laken care bv dlsLrlbuLlon parLner (u) le Chawla aroup oLenLlal LnLranLs + + + Suppllers _ 1he Industry 8lvalrv amona LxlsLlna llrms _ 8uvers + SubsLlLuLes _ _ _ 16 EST ANALYSIS: olitical Aspcts 8ed 8ull was lnLroduced lnLo Lhe markeL as a new nonalcohollc drlnk wlLh a new concepL namelv enerav drlnk whlch comes under beveraae lndusLrv 1here ls slanlflcanL pollLlcal pressure on Lhe beveraae lndusLrv ln aklsLan 1hls pressure mosLlv arlses from a hlah levv of Laxes 13 cenLral exclse duLv as well as 18 sales Lax whlch LoLals up Lo abouL 36 of reLall prlces 1hls exLremelv hlah double LaxaLlon raLe areaLlv deLers Lhe plavers ln Lhe lndusLrv from charalna premlum prlces for percelved value addlLlon buL as 8ed bull ls for a nlche markeL so lL charaes hlaher prlces whlch reduces Lhe buver power ollLlcal facLors have no dlrecL lmpacL on baraalnlna powers of buvers Secondlv Lhe dlsLrlbuLlon parLners (us) also lncur a bla chunk of cosL LhaL ls whv Lhev lmporL aL 8s 63 per can and sell aL 8s 133 ln Lhe markeL whlch shows LhaL suppller power ls low AL flrsL Lhe PealLh CraanlsaLlon was susplclous LhaL 8ed 8ull could be a sLarLer drua 1helr scepLlclsm even lncreased afLer rumours LhaL 8ed 8ull conLalns lnaredlenLs llke bull's aalls Powever Lhe facL LhaL 8ed 8ull has been used ln AusLrla for 9 vears and ln Asla even for 30 vears wlLhouL anv complalnLs led Lo lncreased confldence lurLhermore a research proved LhaL 8ed 8ull has sLlmulaLlna effecLs llke caffelne buL does noL lead Lo addlcLlon 1hls encouraaed Lhe appearance of more brands ln Lhe same lndusLrv of beveraaes whlch ls sub dlvlded lnLo Lhe markeL of enerav drlnks bv lmporLlna Lhem from forelan counLrles and maklna a compeLlLlon ln Lhe markeL neverLheless 8ed 8ull sLlll needs Lo be approved bv each counLrv where lL shall be sold whlch ls verv Llme consumlna and Lherefore expenslve Economical Aspcts Lnerav drlnks face llLLle exposure Lo economlc cvcles as Lhev are speclal drlnks servlna a nlche markeL ln aklsLan 1helr LaraeL markeL lnclude sLudenLs offlce aolna people/ professlonals who need a push up" 1here are few subsLlLuLes and Lhrouah Lhelr well poslLloned adverLlsemenLs Lhelr sales are lncreaslna Lhouah adverLlsemenLs are noL made ln aklsLan as veL Lconomlc facLors llke lncreaslna populaLlon seem favourable for Lhe lndusLrv buL Lhe adverse economlc condlLlon and decreaslna purchaslna power ls crlLlcal Social Aspcts A ma[or soclal Lrend ln Lhe urban areas of aklsLan has been a shlfL from drlnklna coffee or Lea ln vounasLers Lo lmprove Lhelr efflclencv Lowards enerav drlnks whlch creaLes a sense of sLvle ln Lhe vouLh 1hls Lrend has spurned more from lmpresslve dlsLrlbuLlon neLworks and less from lncreased adverLlslna veL Lhe resulL ls poslLlvelv ln favour of beveraae lndusLrv lncludlna enerav drlnks unllke Lhe 1980's where nobodv wanLed Lo Lrv someLhlna new people are now much more open for new experlences as Lhelr llfesLvles are chanalna and aeLLlna more and more lnfluenced bv wesLern culLure 1he consumers are male and females reaardless of aae who are verv sporLv or work verv hard Soclal facLors llke chanalna 17 llfesLvle Lrends ln aklsLan Lhe consclousness of sLaLus svmbols and an aLLlLude lncllned Lowards forelaners all make Lhls lndusLrv hlahlv favourable AnoLher verv lmporLanL aspecL of Lhe soclal pressure on 8ed 8ull ls due Lo Lhe lncreased awareness of 1aurlne and Caffelne on healLh Lspeclallv afLer ban was lmposed on 8ed 8ull ln Cermanv afLer Lhe exceedlna llmlL of cocalne was found ln 8ed 8ull cola Lverv cola conLalns 001 003 of cocalne (raw form of cocoa planL) ln lL buL onlv one loL of 8ed 8ull conLalned 004 of cocalne Tcbnological Aspcts 1echnoloav plavs a secondarv role ln Lhls lndusLrv as lL ls noL heavllv dependenL on Lechnoloalcal advancemenLs llke Lhe consumer elecLronlcs lndusLrv or Lhe sofLware lndusLrv 8ecause beveraae producLs are nonLech based ln naLure Lechnoloav ln Lhls lndusLrv ls Lherefore llmlLed Lo funcLlon as a caLalvsL Lo lmprove producLlon 8ed 8ull aeLs excluslvelv produced ln AusLrla from where lL ls exporLed Lo 28 counLrles lncludlna aklsLan 1here are Lwo reasons whv lL does noL aeL produced ln anv oLher counLrv llrsL lL auaranLles conslsLencv ln LasLe 1he Coke sold ln uk LasLes for examples sllahLlv dlfferenL from Lhe one sold ln aklsLan ln order Lo meeL domesLlc preferences 8ed 8ull wanLs Lo ensure LhaL lL LasLes Lhe same all over Lhe world Secondlv ln LhaL wav Lhe reclpe wlll be kepL safelv ln one place 1echnoloalcal advancemenLs have enabled buvers Lo make lnformed declslons 8ed 8ull has a sLrlna Lrademark and paLenL proLecLlon 18 EXTERNAL FACTUR EVALUATIUN {EFE) EXLANATIUN Lxpanslon ln new markeL here lmplles LhaL wlLh lncreaslna populaLlon ln Asla Lhere ls an opporLunlLv Lo lncrease Lhe aeoaraphlcal coveraae of our producL roducL developmenL for new enLlrelv new markeL ls an opporLunlLv because oLher lndusLrles such as sporLs drlnk healLhv drlnks show lmpresslve arowLh raLes Lnerav drlnks are noL belna adverLlsed on local channels and 8ed 8ull should do lL Lo aaln an advanLaae over lLs compeLlLor Chanalna Lrends and lncreaslna demand for producLs LhaL are consldered sLaLus svmbols ls an opporLunlLv and 8ed 8ull can caplLallze on lL osslble LhreaLs for Lhls lndusLrv are lncreaslna due Lo lncreased awareness of consumers abouL slde effecLs of caffelne and 1aurlne Also Lhere has been publlclLv abouL ban on 8ed 8ull ln Cermanv and lrance Cpportun|t|es 1 Lxpanslon ln new markeLs ea Asla 013 3 039 2 ulverslfv ln oLher seamenLs ea sporLs drlnk 013 1 013 3 LxLenslon of producL llne Lo lncrease markeL share 003 4 020 4 lncreased adverLlsemenL ln Aslan markeL 003 2 01 3 Consclousness of sLaLus svmbol and aLLlLude Lowards forelaners 012 1 012 1hreats 1 PealLh concerns hlah caffelne 013 2 03 2 Chanalna percepLlon of consumer abouL enerav drlnks 01 3 03 3 Consumer lncome ls low/ low purchaslna power 003 2 01 4 ubllclLv on Lhe more conLenL of cocalne ln 8ed 8ull Cola 013 4 043 3 resence of subsLlLuLes ln Lhe markeL 003 2 01 1 221 19 CCMAN AND CCML1I1Ck ANAL5I5 kLD 8ULLL GIVL5 CU WIIING5 20 CUMANY AND CUMETITUR ANALYSIS:- CM {comptitiv profil matrix) EXLANATIUN: 8ed bull recelved a score of 207 on compeLlLlve proflle maLrlx ?eL Lhe companv ls Lhe dolna falrlv well Lhan resL of lLs compeLlLors ln aklsLan 1hls low flaure suaaesLs 8ed bulls lnablllLv Lo Lamper lnLo Lhe markeL properlv 1here ls a low raLlna on markeL share whlch should be lncreased bv dolna markeL peneLraLlon and heavv promoLlon Lhrouah adverLlsemenL campalan 8ed bull lacks ln producL varleLv hence new flavours ln enerav drlnks should be lnLroduced lurLher red bull cannoL caplLallze on lLs sLrenaLhs or reLaln lLs exlsLlna seamenL of cusLomers unless lLs dlsLrlbuLlon neLwork ls lmproved lL should be alven proper shelf space and be easllv avallable aL all reLall sLores Pence wlLh Lhe experLlse of lLs sales Leam lL can make red bull aL cusLomers reach aL everv ouLleL 8ed bull should make dlsLrlbuLlon lLs core compeLencv ln order Lo have a compeLlLlve advanLaae ln lona run ked 8u|| ower norse Cr|t|ca| success factors we|ght kat|ng We|ghted 5core kat|ng We|ghted 5core MarkeL share AdverLlslna Clobal Lxpanslon roducL varleLv roducL CuallLv Companv lmaae rlce CompeLlLlon ManaaemenL Lxperlence ulsLrlbuLlon CusLomer LovalLv 013 013 012 010 008 007 004 006 008 008 3 2 3 1 3 3 2 2 2 3 030 026 036 010 024 021 008 012 016 024 1 1 3 1 3 2 2 2 2 2 013 013 036 010 024 014 008 012 016 016 1oLal 10 207 164 21 MICkCLNVIkCNMLN1AL ANAL5I5 AND IN1LkNAL CCMAN kL5CUkCL5 8Lu 8uLL ClvLS ?Cu WllnCSSS 22 MICRU-ENVIRUNMENTAL ANALYSIS AND INTERNAL CUMANY RESUURCES: MANACEMENT UF VALUE CHAIN Support Activitis: Lhese lnclude Lhe followlna O llrm lnfrasLrucLure refers Lo Lhe number of emplovees and Lhelr manaaemenL Lechnlques accordlna Lo whlch Lhe consumer perspecLlves relaLlna Lo a producL are ldenLlfled new meLhodoloales of communlcaLlna wlLh Lhe consumers are adopLed chanae orlenLed behavlour ls used LhrouahouL Lhe oraanlzaLlon llrm lnfrasLrucLure of 8ed 8ull ls verv sLrona aloballv as lL ls a Lrulv alobal companv Lhe sLrucLure ln all Lhe counLrles ls Lhe same buL Lhe lnvolvemenL of dlsLrlbuLlon parLners ls handled here bv Lhe aklsLanl manaaemenL onlv and sales represenLaLlves are Lhe onlv members of Lhe flrm who are noL on Lhe dlrecL pav roll of 8ed bull headquarLers 1he budaeL for anv evenL Lo be oraanlzed ln anv counLrv ln also senL from Lhe headquarLers and lL ls Lhe work of LhaL franchlse manaaemenL Lo effecLlvelv manaae LhaL budaeL and make Lhe besL use of LhaL budaeL O Puman 8esource ManaaemenL P8 acLlvlLles are declded ln Lhe head quarLers of 8ed bull ln AusLrla and Lhev are lmplemenLed ln all Lhe franchlses all over Lhe world 1he manaaemenL of all Lhe franchlses are senL Lo AusLrla uubal 1okvo Slnaapore for Lralnlna and developmenL proarams and performance manaaemenL Leams from AusLrla ao Lo everv franchlse manaaemenL all over Lhe world for evaluaLlna Lhe performance of emplovees Pence 8ed 8ull's P8 svsLems are verv sLrona and aloballv lmplemenLed O 1echnoloav developmenL 8ed bull lnvesLs heavllv ln 8u and alwavs Lrv Lo come up wlLh someLhlna unlque whlch serves Lhelr name besL ln order Lo leL Lhem sLav Lhe markeL leader of enerav drlnks markeL As Lhls ls a Lrulv alobal oraanlzaLlon everv research ls done ln Lhe headquarLers and Lhen lmplemenLed aloballv O rocuremenL 8ed 8ull has more Lhan one suppller and Lhe lnpuLs or raw maLerlals are noL unlque buL raLher sLandard so lL Lrles Lo buv Lhose raw maLerlals whlch are superlor ln quallLv whlch wlll allow Lhe flnal producL Lo be beLLer Lhan Lhe prevlous one ln order Lo saLlsfv consumers and meeL Lhelr demands 8ed 8ull cannoL compromlse on Lhe quallLv of Lhe producL hence raw maLerlals whlch are acqulred from dlfferenL resources are of a premlum quallLv 23 rimary Activitis: Lhese lnclude O lnbound LoalsLlcs 8ed bull ls a Lrulv alobal companv and has cenLrallsed producLlon faclllLv for evervwhere Lo be dlsLrlbuLed around Lhe world 8ed 8ull ls manufacLured ln one facLorv ln AusLrla canned and Lhen packed ln cases for selllna and exporLlna 8aw maLerlals are handled effecLlvelv Lhere ln order Lo produce Lhe besL producL so LhaL Lhe flnal producL has lmproved quallLv everv Llme O CperaLlons lnnovaLlna new and unlque producLs ls one of Lhe compeLencv of 8ed 8ull CperaLlons are carrled ouL such LhaL new producL can be developed bv lnvesLlna more and more ln research and developmenL Consumers' aLLenLlon span Lowards anv producL ls decreaslna wlLh Llme so consumers also expecL companles Lo brlna someLhlna new everv Llme and 8ed 8ull has been successful ln dolna so CperaLlons carrled ouL are accordlna Lo cusLomer's speclflcaLlons and requlremenLs whlch are unlque ln processes and produce lnnovaLlve ouLpuLs O CuLbound LoalsLlcs As menLloned prevlouslv 8ed 8ull ls Lrulv a alobal companv and lL has cenLrallzed processes of manufacLurlna hence all Lhe cans of 8ed 8ull are manufacLured ln AusLrla and for dlsLrlbuLlna ln Aslan markeL Lhev are senL Lo uubal lrom uubal Lhen Lhe cans are exporLed Lo aklsLan and oLher Aslan counLrles lncludlna lndla AfahanlsLan and 8analadesh When 8ed 8ull reaches aklsLanl markeL furLher dlsLrlbuLlon for Lhe end consumers ls done bv 'ulsLrlbuLlon arLners' (us) and now Lhe work of Llmelv dellverv Lo reLallers ls done bv Lhese us O Sales All Lhe sales are carrled ouL Lhrouah dlsLrlbuLlon parLners (us) 8ed 8ull has sLrona dlsLrlbuLlon seL up wlLh Lhe help of Lhese us ManaaemenL of 8ed 8ull ls baslcallv manaalna Lhe franchlse of Lhe parenL companv and Lhev have alven Lhelr dlsLrlbuLlon work furLher 1hese dlsLrlbuLlon parLners are also Lhe cusLomers of 8ed 8ull Lhev are also aranLed credlLs and 8ed 8ull has a verv sLrona relaLlonshlp wlLh Lhese us 24 CURE CUMETENCIES 8ed 8ull has several compeLencles are crlLlcal for achlevlna compeLlLlve advanLaae 1hev are descrlbed as follows A c|ear d|st|nct|ve brand propos|t|on that sat|sf|es customer's need As menLloned before 8ed 8ull has a verv sLrona brand presence ln LhaL markeL 8ed 8ull ls famlllar wlLh Lhe markeL and can address Lhelr needs qulcklv and efflclenLlv Cffer|ng prem|um and funct|ona| dr|nk to the customers 8ed 8ull offers a premlum drlnk LhaL serves Lhe offlce worker Lhe sLudenL and Lhe sporLsperson when Lhev need Lo remaln focused and alerL 1he lmaae and performance of Lhe producL ls sLrona and cusLomers are happv wlLh whaL Lhev are aeLLlna from 8ed 8ull Iorma| Iranch|se 8ed 8ull doesn'L belleve LhaL lL has real compeLlLlon ln Lhe aklsLan markeL 1he compeLlLlon does have an lndlrecL lmpacL on lLs sales buL Lhev belleve LhaL slnce compeLlLors don'L reallv have a formal sLrucLure Lhev cannoL be counLed All Lhe oLher compeLlLors don'L have an oraanlzaLlonal exlsLence ln aklsLan and are onlv lmporLed lnLo Lhe markeL 1hls ls Lhe reason whv havlna formal franchlse ls a core compeLence for 8ed 8ull as lL ls unlque amona all Lhe compeLlLors ln Lhe lndusLrv D|str|but|on artners 8ed 8ull has deploved a neLwork of ulsLrlbuLlon arLners who help ln Lhe dlsLrlbuLlon of Lhe drlnk 1hls neLwork ls sLrona and vasL Also lL ls a LoLallv lnnovaLlve and unlque ldea Lo caLer Lo Lhe vasL markeL LhaL ls aklsLan Med|a nouses A core elemenL of 8ed 8ull ls lLs sLrlnaenL assoclaLlon wlLh exLreme sporLs 1hls ls Lhe reason whv 8ed 8ull has separaLe Medla Pouses wlLh emplovees on pavroll of 8ed 8ull who oraanlze evenLs 1hls deparLmenL noL onlv lncludes evenL manaaers buL also aLhleLes and professlonal sporLs phoLoaraphers 1hls compeLencv adds a loL Lo Lhe brand poslLlonlna of 8ed 8ull as lL ls a unlque wav of promoLlon 23 STRATECIC CUST MANACEMENT RUCESS: ln aklsLan 8ed 8ull lncur lLs cosL malnlv ln one of lLs operaLlons LhaL ls markeLlna buL lLs manaalna lLs cosL quleL effecLlvelv 8ed bull has a verv sLrona markeLlna 8ed 8ull has done a loL of evenLs ln aklsLan MosL of Lhe evenLs were relaLed Lo sLudenLs compeLlLlon 8ecenL evenLs lnclude aper wlnas ln whlch sLudenLs suppose Lo make paper wlnas and flv Lhem 1he oLher one was 8obbv 8lke karachl based [ump whlch was held aL MC8 Lowers lL was a bla hlL 8ed 8ull aoL a budaeLed amounL from AusLrla for Lhese evenLs and for Lhls [ump show Lhev aoL 8s2mln whlch Lhev oraanlze Lhe whole show bv uslna promoLlon Lools llke panaflexes red bull models eLc 8ed bull conLrol Lhelr cosLs bv recelvlna quoLaLlons from dlfferenL suppller of panaflexes CuoLaLlons Lender offer are made Lhrouah several wavs dlrecL conLacL adverLlsemenL ln paper LowesL prlce quoLaLlon ls belna consldered 8ed bull usuallv makes a cosL effecLlve use of Lhelr promoLlon Lools bv reuslna Lhem wlLh some lnnovaLlon 1he ma[or cosL Lhev lncur comes from Lhelr free sampllna whlch Lhev do a loL 8ecommendaLlon 8ed 8ull should mlnlmlze lLs cosL bv cuLLlna down lLs expenses Avold a loL of free sampllna 1hev can dlsLrlbuLe samples aL dlscounLed or companv prlce for promoLlna Lhelr brand8esldes LhaL Lhev should alve brochures LhaL sLaLes Lhe beneflLs of 8ed8ull 26 FINANCIAL TREND 8ed 8ull ls a prlvaLe llmlLed companv 1hev do noL dlsclose compleLe flnanclal plcLure of Lhe oraanlzaLlon ln aklsLan 8ed 8ull ls solelv concerned wlLh lmporL and dlsLrlbuLlon svsLem Lherefore all lLs expenses and revenue ls relaLed Lo Lhe lmporL and dlsLrlbuLlon svsLem wlll be dlscussed lew of Lhe expenses lncurred bv lmporL svsLem are shlpplna cosL lmporL duLv exclse duLv Laxes promoLlonal expendlLures adverLlslna expenses and LransporLaLlon CosL of producLlon and packaalna does noL come under lL as cans come fullv packed 1hese cans are lmporLed ln cases each case conLalns 24 boLLles 8ed 8ull approxlmaLelv sells 1800 cases per monLh le 21600 cases per vear As each case conLalns 24 boLLles lL approxlmaLelv sells 318400 cans per vear Averaae cosL aL whlch Lhev purchase Lhese cans from manufacLurer falls ln a ranae of 8S 60 8S 70 per can 1herefore esLlmaLed cosL for 8ed 8ull comes around 8S 2392000 per monLh and 8S 31104000 per vear 1hls cosL represenLs onlv purchaslna cosL AfLer addlLlon of cusLom duLles promoLlonal and adverLlslna cosL 8ed 8ull sells lL Lo reLallers aL 8S 114 per can who Lhen sell lL aL 8S 163 ln Lhe markeL 1oLal revenue aeneraLlon from sales ls rouahlv 8S 4924800 per monLh and 8S 39097600 per vear 8ed 8ull spends a huae amounL on adverLlslna and promoLlonal acLlvlLles lrom Llme Lo Llme lL oraanlzes soclal evenLs aL dlfferenL colleaes and unlverslLles lL has lL own unlque medla house campalans and unlque 8ed 8ull cars are occaslonallv found on roads for publlclLv 1hen cusLom and exclse duLles varv accordlna Lo aklsLan Lradlna pollcles CurrenLlv aklsLanl aovernmenL ls pressurlzed Lo encouraae free Lrade Lhus Laxes on lmporLed aoods are conslderablv lower Lhan pasL 1hls has enabled 8ed 8ull Lo en[ov comparaLlvelv low cosL sLrucLure ln recenL vears LsLlmaLed proflL aeneraLlon ls 8S 4 10000000 per monLh le 8S 4920000000 per vear neL proflL maraln comes up Lo 83 1hls flaure ls remarkablv beLLer Lhan lLs compeLlLors who have Lhelr neL proflL maraln from 21 Lo 30 8ed 8ull does noL face anv llquldlLv crlsls as lL as a huae backup of forelan aroup Moreover 8ed 8ull makes sure Llmelv lnflow of ouLflow of cash so LhaL lL ls noL lefL wlLh excesslve and unnecessarv llablllLles and recelvables Cverall flnanclal poslLlon of 8ed 8ull ls a loL beLLer Lhan lLs compeLlLors lL has aood amounL of resources avallable for dlfferenL proarams lL needs Lo carrv ouL for lmporLlna and promoLlna 8ed 8ull 8ed 8ull has manaaed hlah proflLs desplLe Lhe cosLlv markeLlna expenses whlch shows companv efflclencv ln manaalna lLs overall process 27 INTERNAL FACTUR EVALUATIUN {IFE) key |nterna| factors We|ght kat|ng We|ghted score 5trengths 1 no sLrona compeLlLor 012 3 036 2 8ed bull's collaboraLlon wlLh dlsLrlbuLlon parLners (us) ln aklsLan 014 4 036 3 no vlslble chanae ln sales even afLer prlce lncrease 01 3 03 4 8ehavloural seamenLaLlon for Lhe LaraeLed consumer 004 3 012 3 LxLreme sporL promoLlon for Lhe flrsL Llme ln aklsLan 8ed bull karachl base [ump 008 3 024 Weaknesses 1 Plaher prlces 014 1 014 2 resence of Laurlne ln 8ed bull 01 2 02 3 no lab LesLlna bv 8ed 8ull manaaemenL aL Lhe Llme of launchlna Lhe producL 012 2 024 4 no formal oraanlzaLlon sLrucLure 008 2 016 3 8ed 8ull ls onlv manufacLured ln one facLorv ln AusLrla 008 2 016 1 248 EXLANATIUN: Above menLloned are Lhe lnLernal sLrenaLhs and weaknesses of Lhe companv SLrenaLhs are such LhaL Lhev do noL have anv sLrona compeLlLor ln Lhe enerav drlnks markeL whlch has made Lhem a markeL leader 1hev have a verv sLrona collaboraLlon wlLh dlsLrlbuLlon parLners and Lhls collaboraLlon has leL Lhelr dlsLrlbuLlon Lo spread ouL ln Lhe whole counLrv 1hev have a verv sLrona brand and Lhe populaLlon Lhev LaraeL are so loval Lo Lhls brand LhaL even afLer prlce lncrease no maralnal or vlslble chanae ls seen ln Lhe sales of 8ed 8ull LhrouahouL Lhe counLrv 1hls ls also because 8ed 8ull LaraeLs Lo a nlche who are brand loval and brand consclous and Lhev do noL alve lmporLance Lo monev over quallLv Cloballv Lhe seamenLaLlon ls done behavlourallv and Lhls meLhodoloav ls used ln aklsLan Loo 8ehavlours of consumers are noLlced and Lhen accordlna Lo Lhem lL ls seen where Lhls producL should be placed AnoLher sLrenaLh or compeLencv of 8ed 8ull ls Lhe lnvolvemenL ln exLreme sporLs 1he evenL recenLlv carrled ouL ln aklsLan was karachl base [ump 1hls ls also carrled ouL aloballv and hence lL ls carrled ouL here as well 1hls [ump was done from MC8 Lowers belna Lhe LallesL bulldlna ln aklsLan and was carrled ouL bv professlonal [umpers 1hls evenL was covered bv professlonal phoLoaraphers ln Lhe medla house of Lhe 8ed 8ull whlch exlsLs aloballv and Lhe phoLoaraphers came from AusLrla Lo cover Lhls evenL ln karachl 28 now comlna Lowards Lhe weaknesses lL has a hlaher prlce whlch ls somehow decreaslna Lhelr markeL share and sales lf Lhev reduce Lhelr prlces more people wlll be able Lo buv Lhelr producL 1he orlalnal formula of 8ed 8ull dld noL conLaln 1aurlne as an lnaredlenL ln lL Lhls was added afLerwards and Lhls lnaredlenL has been conLroverslal all over Lhe world so aloballv Lhls problem has Lo be solved bv deduclna such a sLraLeav whlch wlll nulllfv Lhls effecL 8ed bull ls onlv manufacLured ln one facLorv ln AusLrla whlch Lurns ouL Lo be a weakness ln Lhe sense LhaL LransporLaLlon cosLs ouL of AusLrla are verv hlah whlch leL lncreased selllna prlces of Lhe producL 29 STRATECIC ANALYSIS AND RECUMMENDATIUNS: 8Lu 8uLL ClvLS ?Cu WlllnCSSS

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