tiểu luận REPORT INTERNATIONAL MARKETING FOR RED BULL

UNIVERSITY OF ECŨNŨMICS AND FINANCE

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UNIVERSITY 0F ECONOMICS & FINANCE

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REPORT
INTERNATIONAL MARKETING
FOR RED BULL

INSTRUCTOR
Lê Nguyên Hoàng

........SUBJECT..........
International marketing

..........CLASS..........
B09E

>

/*//////////////////////////////////////////.

Team 2
1

NGUYỄN KIM NGÂN

185040256

2

NGUYỄN THỊ HỒNG NGỌC

185040327

3

NGÔ THỊ THÙY DƯƠNG

185040548

4

TRẦN THỊ KIM NGÂN

195041990

5

PHAN PHÚC HẢI

195041706

Ho Chi Minh City, January 10, 2021


TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION TO RED BULL

4.2

Executive
summary
-----------------------------------------------------------CULTURAL
ANALYSIS
Geographical
setting
Population
------------------------------------The
Executive
product
summary
-----------------------The
marketing
plans
-------------------------MARKET
AUDIT
AND
COMPETITIVE

MARKET ANALYSIS
Social
---MARKETING
PRELIMINARY
- institutions
PLAN
Proforma
financial
and budgets
Economics
statistics
andstatements
activity
----------

3.3

SOURCES
OFin-------------INFORMATION
...................
Living
conditions
Developments
science and technology

3.
5.1.

13
13

15
14
21

21

Executive
----------Channelssummary
of distribution
(macro analysis)
4.5

13
15

ECONOMIC
ANALYSIS
Media
------------------------------------------

11

TEAM - 2


\ 1. EXECUTIVE SUMMARY
\ Based on the analysis of culture, economy and also market audit and competitive market analysis, from there, the
s team came up with a marketing plan for red bull when entering the vietnamese market as follows:
According to Numerator, the target audience of Red Bull is mainly between the ages of 15 to 45 year old, both male
4* and female, who have an average to high income, likes sports, extreme sports and athletic events. Red Bull's

customers can be defined as young, independent professional with big dreams and aspirations.
s Sales and profit forecast years 1-5
Year
Sell out in
value
Profit

1

5 YEARS PROFIT FORECAST
2
3

4

5

1,850,238,720,000

1,896,494,688,000

1,942,750,656,000

1,989,006,624,000

2,035,262,592,000

925,119,360,000

948,247,344,000

971,375,328,000

994,503,312,000

1,017,631,296,000

\ SWOT analysis: Red Bull's business strengths include a powerful brand and a unique, sports-based marketing
s strategy. The company does suffer from two weaknesses; specifically, a limited product range and the high price tag
s for their primary offering. Opportunities for Red Bull include emerging markets, new product lines, and healthy
s alternatives. As in all industries, a major threat for Red Bull is competition. Other threats include product staleness
and health-related regulation.
About marketing mix: For products, focus on energy drinks product line to bring to Vietnam market. Regarding the
price, there are two types of prices: retail Price: 10,000 - 12,000 VND / a can and wholesale Price: 200,000 VND /
1 pack of 24 cans. Regarding distribution, our team recommends the safest way to enter into a new market for Red
Bull by using a relevant low risk entry mode: Licensing or Joint Ventures. For promotion, we mainly use two tools
(advertising, sales promotion) to help to improve the product's image, credibility, and visibility - uses all accessible
media outlets via which it communicates with its core target market-young people.
Activities
Costs
Details
Social
media
Event and
Sports
Sponsoring
Method
Sampling
Coupon online

Facebook,
Instagram
YouTube
Tiktok
Sponsoring
Red bull’s Event

220,000,00
0
270,000,00
0 138,000,00
0
1,500,000,00
0
2,000,000,00
0
Cost (VNĐ)
250,000,000
500,000,000

600,000 people reachable on Facebook and
Instagram in 6 months
300,000 viewers (900đ/1views)
600,000 viewers (230đ/1 views)
Sports Event.
Music festival, Speed Cycling Vietnam Championship.
Note
20 universities, 100 high school, 10 densely areas.
500.000 coupons for 500.000 target customers on Momo,
Zalopay. Each coupon is worth 10,000 VND when

customers buy a pack of Redbull (6 cans).

Additionally, in some countries, Red Bull's success story is remarkable as the soft drink industry is one with high
barriers to entry and soft drink companies have to deal with high buyer power of distribution and retailers. This is all
due to the dominant brands like Coca Cola and Pepsi having a tight grip on the retailers and their shelf space.
However, Red Bull has been able to enter the Vietnamese market successfully by innovating in a variety of ways:
• Product innovation: Red Bull creates a product that fills the gap in consumer needs for a cold drink that gives
mental energy.
• Market segmentation innovation: Red Bull used a very targeted approach compared to the mass marketing
approach of the incumbents.
• Channel innovation: Red Bull used a “pull” strategy in order to gain shelf space in the retail channel. Pull is
created by offering gain among the consumers by products in alternative channels, for example bars and
health clubs.
• Marketing innovation: Red Bull has used Creative onsite promotions instead of mass marketing approach of
the incumbents.

TEAM - 3


\ 2. INTRODUCTION TO RED BULL
/
\ 2.1 The Birth of Red Bull
\ Many great ideas are born in a bar, and Red Bull is no exception. In 1982, Dietrich Mateschitz—an Austrian native ỷ
\ and an employee of Unilever—was sitting in a bar of the Mandarin Hotel in Hong Kong on one of his many business t
\ trips to Asia. As he sipped on his drinks, he came up with the idea to commercialize energy potions— highly i
caffeinated drinks that enjoyed wide popularity in Asia—to the western markets.
Dietrich approached TC Pharmaceuticals of Thailand and asked for the foreign licensing rights of Krating Daeng — /
the original “Red Bull '' energy potion. The Original Red Bull is quite different from the western version as it came í
\ in a glass bottle, syrupy (like a cough syrup), and non-carbonated. It also catered to blue-collar workers, and had an t
\ image of being the drinks for truck drivers. The owners of TC Pharmaceuticals agreed to the offer in return for }

\ 51% stake in Dietrich’s new company, which was later founded in 1984 as Red Bull GmbH in Austria.
}
Unlike the original Red Bull, Dietrich did not pursue the blue-collar market. He decided to cater to a younger and j
more active segment that enjoyed night-clubbing and extreme sports. In short, his strategy was to convert a “blue j
collar” drink of Asia into a “hip” brand in the west. In order to fit European tastes, the original formula was refined j
by making it less syrupy and by adding a “fizzy” touch through carbonation. After three years of preparatory work, j
Dietrich launched the Red Bull Energy Drinking Austria in 1987, and sold 1 million cans in the Austrian domestic j
market in the first year.
j
2.2
Phenomenal Growth through Global Expansion
£
Red Bull followed a “start small, grow big” strategy, which lead to its sustained growth over eighteen years. Their \
growth was triggered in 1992, when Red Bull began its international expansion to Hungary. After that, Red Bull
engaged in a series of aggressive international expansion, with significant moves being 1994 (UK, Germany,
Netherlands and Switzerland), 1995 (Eastern European countries, Brazil and Australia), and 1997 (USA). As a result,
Red Bull is now available in over 100countries world-wide. Today, what began as an idea in a bar became a f
phenomenally successful venture with reported annual sales of 1.5 billion cans or $1.55 billion in 2003. The company f
remains private under the same ownership. With essentially one product from Asia, Dietrich became one of the most f
successful business persons in the world, which is exemplified by his recent addition to the Forbes’ “List f
of Billionaires”.
j
2.3
The Product
£
Red Bull is characterized by two elements in its formula—caffeine and energy-enhancing ingredients - which the
company claims to make it the perfect drink to energize the body before strenuous activities such as extreme sports
and all-nightclubbing. Red Bull contains 80 \mg of caffeine, which is almost twice that of a can of Coca Cola or y
Pepsi, or an equivalent to a cup of filtered coffee. Energy-enhancing ingredients include Taurine (amino acid),
Glucuronolactone (carbohydrate), and several other sugars and vitamins. The drink is available only in a 250ml can. j

In 2003, another product line “Red Bull Sugar Free '', was added to the portfolio.
j
s Red Bull was invented based on the inspiration of Thailand's Krating Daeng energy drink. This is a cheap drink that
is very popular with long-distance drivers in Thailand. Based on this water Dietrich Mateschitz has changed some
flavours suitable for Westerners. And in fact, Red Bull is the English name of Krating Daeng which means red bull. V
The product has yellow water, the consistency is better than other types of water, the strong taste makes the mind
4^ alert, reduces stress and fatigue.
y
s 2.4 Red Bull in Vietnam market
t
Constantly affirming its reputation, helping to increase energy for the body and mind, Red Bull was officially present
in the Vietnamese market in 1999. For nearly 20 years "supplying energy" to Vietnamese users with international
quality products, Red Bull constantly inspires Vietnamese young people to discover their own potential, overcome
all challenges to achieve their goals, with the spirit of "the bravery to conquer the goal".
£
\ The ingredients in Red Bull energy drinks completely meet Vietnamese standards and are non-toxic to consumers, t
\ certified by the Department of Food Hygiene and Safety under the Ministry of Health. Red Bull in Vietnam has t
s always kept its traditional taste until now. In the international market, Red Bull has 4 main products: Red Bull energy t
s drink, Red Bull Sugar free, Red Bull energy shot and Red Bull cola. However, on the Vietnamese market, there is t
s only one Red Bull label with the identity of a copper-yellow can with two red bulls butting each other, and the bottom t
has the Thai name: Krating Daeng.
£
\ At the end of 2018, TCP Group announced to invest 4 billion baht (about 2,800 billion VND) in the Vietnamese í
\ market, towards energy drink product lines. Red Bull is also known as an energy drink brand that supports activities t

TEAM - 2

4

connecting different social classes in Vietnam, with the aim of arousing the spirit of Vietnamese consumers who are í
\ always full of positive energy during the past.
t
3. CULTURAL ANALYSIS
£
\ 3.1 Geographical setting
t
\ Vietnam - a country located on the eastern edge of the Indochinese peninsula, the centre of Southeast Asia. The shape i
\ of Vietnam on the map is S- shaped, the distance from north to south is 1,650 km and the narrowest position in the ỷ
\ east to west direction is located in Dong Hoi with less than 50 km. Vietnam is a tropical country. Along the stretched t
\ territory, Vietnam's climate is distributed into 3 regions: the north has a humid subtropical climate, the central region i
\ has a tropical monsoon climate, while the south is located in the savanna tropics. Vietnam have terrain is mostly hills ì
and mountains (representing 3/4 of the territory), mainly low hills, plains account for only 1/4 of the area. The
topographical structure is quite diverse thanks to the rejuvenation of the Neo-tectonic movement, creating a clear
hierarchy according to altitude, descending from the northwest to the southeast.
£
As a country with a tropical monsoon climate, Vietnam is considered a place with strong growth potential in the j
beverage market in the coming time and in the world. In Vietnam, the main types of beverages include: soft drinks, j
\ energy drinks, carbonated and non-carbonated mineral water, instant tea, purified water and fruit juices. According j
\ to data from vtown.vn, energy drinks account for 18.28% of Vietnam's beverage market share, second only to tea t
\ market share. In addition, the beverage service industry often serves ice to drink in hot weather. Contributed to an t
\ increase in the demand for soft drinks in general and energy drinks in particular. Especially in the energy drink }
\ industry in Vietnam, Red Bull is one of the typical beverage brands that have received a lot of sympathy from }
\ consumers over the past two decades.
ì

3.2

Social institutions
■ Family

The Vietnamese family now exists in two major forms: nuclear families (two generations) and extended families
(from three generations upwards). The nuclear family is the most common. According to findings of a survey of three
regions including cities, plain and midland-highland: nuclear families account for 78% (cities, 65%; plain, 81.7%
and midland - highland areas, 80.6%). The nuclear family does not stand on its own but always receives support and
assistance from wider families (parents, brothers and wider kin). Three-generation families account for a small
\ percentage: 18.2% (cities, 35%; plain, 13%; and midland-highland, 18%). Meanwhile, four-generation families are
\ very few (0.5%).
t

j
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Vietnamese association is increasing with single people and nuclear families, families consisting of a pair of parents
and children. They will prefer and give preference to small-sized drinks. Instead of too large size and canned form,
which is currently being used by many people. Like a can of Red Bull with a compact size (40x30x12cm), suitable V
for almost any family.
■ Political system
According to the provisions of Circular 219/2013/TT-BTC, the value-added tax rate of 10% is applied to goods and \
services not belonging to the categories of goods not subject to value-added tax. Goods subject to value-added tax
rate of 0% and 5% specified in Articles 4, 9 and 10 of Circular 219/2013/TT-BTC have been amended and j
supplemented by many other legal provisions. involve. Thereby, it can be determined that beverage products are j
subj ect to the value-added tax rate of 10%. Previously, in August 2017, the Ministry of Finance announced a proposal j
s* to apply a special consumption tax (SCT) of 10% on sugary soft drinks, except for dairy products, to limit the j
consumption of these products and contribute part to protect consumers' health, reduce the proportion of overweight, j
obese and diabetic people in Vietnam, and at the same time increase revenue for the budget. The above tax rate j
\ applies to all types of sugary soft drinks, regardless of carbonated or non-carbonated fruit juices or energy drinks... j

s Thus, according to the proposal of the Ministry of Finance, each can of soft drink will be subject to an additional £
12% tax, the actual price will also increase by about 12%. This tax rate may not have much impact on urban families,
but will have a significant impact on the spending ability of many families in rural, remote and isolated areas. This,
soft drinks in general and Red Bull in particular will face many difficulties in consuming.

\ 3.3

Living conditions
\ ■ Diet and nutrition
\ According to the National Nutrition Census (2018-2020), about people's diets in 2020: The average energy in the i
\ diet reaches 2023kcal/person/day, a slight increase compared to the energy level of 1925kcal/person/day 2010. The i
structure of energy generation from protein, lipid, and glucid (2020) is: 15.8%: 20.2%: 64.0% (% of total energy
intake), this structure is considered. is balanced according to recommendations for Vietnamese people (2016).
People's fruit and vegetable consumption has increased per capita from 190.4g of vegetables/person/day; 60.9g of

TEAM - 2

5

i
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ripe fruit/person/day (2010) to 231.0g of vegetables/person/day; 140.7g ripe fruit/person/day (2020); The
\ consumption of vegetables and fruits only reached about 66.4% - 77.4% of the recommended needs of the Nutrition
\ Tower for adults. Meat consumption increased rapidly; from 84.0g/person/day (which is the national average meat
\ consumption in 2010) to 136.4g/person/day (in 2020); consumption in urban areas is higher, at 155.3g/person/day
\ (in 2020). Rice consumption tends to decrease. In urban schools, there is a tendency to increase consumption of soft
\ drinks and fast food.
t

í
j
t
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ỷ

According to the Worldpanel Division's report in 2019, Vietnamese people have 7 needs when using drinking water.
In which, beverage demand accounts for the highest proportion with 25% and is the most basic need. In addition,
other needs are also quite common such as: Supplementing energy (16%), cheering up the day (15%), improving j
health (11%), family gathering (14%), drinking with meals (11%), chatting with friends (8%). At the same time, the j
food culture in Vietnam is diverse. Everyone can use soft drinks as the main drink in parties. In particular, Red Bull j
products are the best choice and top priority for drivers in Vietnam to help them stay awake and energetic on long j
journeys.
j
s ■ Recreation, sports, and other leisure activities
Sports spirit of Vietnamese people is increasing day by day. According to a survey by Q&ME in 2015, 60% of people
exercise at least once a week. Sport Marketing, thereby becoming a topic of great interest to the Marketing world and
finding ways to include in communication campaigns. Recognizing that opportunity, Red Bull, the world's leading
energy drink brand, which is associated with many unique adventure sports activities, has launched an interesting
Sport Marketing campaign and caused a stir among the youth community. Vietnamese. Red Bull is known as the
"Golden face of sports village". Because Red Bull energy drinks contain performance-benefiting ingredients such as
caffeine and a vitamin blend that provide instant energy and boost alertness and focus, the product is widely used. \
Sports athletes around the world choose and trust before important matches, especially in sports such as racing,
skiing, football, skateboarding, boxing, swimming, track and field... In addition, Red Bull energy drink is also widely
used by office workers and drivers who drive long distances at night because this type of water helps them improve
memory, mental alertness, and repels distractions.
f
\ ■ Healthcare
t

Vietnam has made impressive progress toward improving the health status of the population, with progress that equals
or surpasses that of many neighbouring countries. Life expectancy in Vietnam is 72.8 years (70.2 for men and 75.6
for women), a level that is considerably higher than that in many countries with similar levels of GDP per capita.
From 1990 to 2009, the infant mortality rate fell from 44.4% to 16.0%, the under-five mortality rate dropped from
58.0% to 24.5%, and the maternal mortality ratio declined from 233 to 69 maternal deaths per 100,000 live births.
Estimated to be around 18% in 2010, the rate of under-five malnutrition has also fallen dramatically.
£

\ 3.4 Executive summary

i
\ Located in the cradle of Southeast Asia, Vietnam's favourable geographical position with a long coastline, many seas /
\ and ports, can act as a launching pad when exporting goods to Vietnam. At the same time, the tropical climate creates ì
\ favourable conditions for people to consume more and more soft drinks. With geographical location plus human ì
\ culture, Vietnam is a potential market for Red Bull to penetrate. Vietnam is a developing country with strong growth 4^
s potential in the future and is a market targeted by multinational companies in recent times. Has a long history of 4^
development along with a unique culture according to each ethnic group and region. The middle class is emerging
and accounts for the majority of the population and its consumption trends are challenging for many industries such
as: healthcare, education, etc.
\ 4. ECONOMIC ANALYSIS
Population
Total population: 98.550.357 people (WTO - 25/12/2021)
Urban population: 37,34% ~ 36.346.227 people
Rural population: 62,66% ~ 62.204.130 people

Total
98.550.35
7

100%

Urban

Rural

36.346.227
37,34%

TEAM - 2

62.204.130
62,66%

6


■ Population density of Vietnam: The population density of Vietnam is 318 persons per square kilometer
as of December 25, 2021.

■ Growth rate: Vietnam's population growth rate was quite high in the period 1951-2000. From 2000
onwards, thanks to family planning measures and people's awareness of having children, the population
growth rate increased. numbers were gradually under control. From 2019 to 2020, the population growth
rate is 0.98%.
■ Birth rate: 4,234 children are born every day on average
■ Average age: 32.9
The dependent population ratio is the ratio of
the unable to work (dependents) to the labor
force of a country. The dependent portion
includes the population under 15 years of age
and people aged 65 and over. The labor force

consists of the population aged 15 to 64 years.
The total dependent population rate in Vietnam in 2019 was 45.1%. This is also the target age of Red Bull's
customers.
■ Population forecast for the period 2019-2069:
The population of Vietnam is forecasted to be 104.5 million in 2029, 110.8 million in 2039 and 116.9 million
in 2069. In the first 5 years of the forecast period, 2019-2024, the annual population growth rate of our country
is 0.93%. In the future, it is forecast that the population growth rate will continue to decrease and reach a "stop"
state at the end of the forecast period, the period 2064-2069.
The sex ratio will increase rapidly in the period 2019-2029. It is forecasted that by 2026 the male population
will equal the female population (the sex ratio will reach 100 males/100 females); By 2069, the sex ratio of
Vietnam will be 101.4 men/100 women.
The population is large, increasing steadily over the years, the majority of the population is aged between 1564 years old. At the same time, this is the target customer group of Redbull, so the Vietnamese market promises
to be a potential market for Redbull's products.
■
Ethnic origins:
Vietnam has a total of 54 ethnic groups. Kinh people are the majority ethnic group, living all over the territory
but mainly in the plains, islands and urban areas. This is the main ethnic group that will consume redbull products.
Most of the ethnic minority groups (except the Chinese, Khmer, and Cham) live in the midland and mountainous
areas. And the majority of other ethnic groups live in the mountainous provinces of Vietnam. This target group
mostly lives in high mountain areas, it is quite difficult to reach these customers. But with the growing traffic
infrastructure in Vietnam, this also facilitates Redbull's products to reach this customer group.
■ Migration rates and patterns:
According to statistics, the whole country has 6.4 million people aged 5 and over as migrants, this number
accounts for about 7.3% of the total population. However, the proportion of female migrants is still higher than
that of men in the total number of migrants, but this disparity is gradually shifting towards an equilibrium.
The majority of migrants are in the 20-39 age group (accounting for 61.8% of the total number of migrants).
The Red River Delta and the Southeast are the two regions with the highest immigration rates in the country.
Especially, the Southeast region is an economic development area with large industrial zones, which still attracts
a large number of migrant workers, with 1.3 million immigrants. With the population tending to migrate to big
cities, this makes it easier for Red Bull products to reach audiences in rural areas.

4.2
Economics statistics and activity
■ Economic system:

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The Vietnamese government self-identifies that the Vietnamese economy is an economy operating under the market
\ mechanism, and many countries and economic blocs, including some advanced market economies, also recognize
\ Vietnam as a market economy. market economy. However, so far the US, EU and Japan have not recognized
\ Vietnam's economy as a market economy. The World Trade Organization recognizes Vietnam as a low-level
\ developing economy and in transition.
ỷ

í
t
t
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■ Economic Indicators:
4* From 1986 to 2016, after 30 years, Vietnam's economy achieved the following results:
• During the past 30 years, Vietnam's economy has achieved a relatively high growth rate. In the period f
1986-1990, the average GDP growth rate reached 4.4%/year, in the period 1991-1995 GDP averaged j
8.2%/year; in the period 1996-2000 average GDP increased by 7.6%/year; in the 2001-2005 period, GDP j
increased by an average of 7.34%/year; in the period 2006-2010, due to the world economic slowdown, t
Vietnam still achieved an average GDP growth rate of 6.32%/year. In the 2011-2015 period, Vietnam's í
\
GDP growth slowed down but still reached 5.9% per year, a high level in the region and the world.

t
\
• The scale of the economy increased rapidly: GDP per capita in 1991 was only 188 USD/year. By 2003, }
\
GDP per capita reached 471 USD/year and by 2017 GDP per capita reached nearly 2,985 USD/year. The t
\
production force has made many advances in both quantity and quality.
ì
s
• The poverty rate decreased from 58% in 1992 to 7.6% at the end of 2013.
t
s
• Vietnam's economic structure initially shifted towards modernity, reducing the agricultural sector,
4^
increasing the service and industrial sectors.
• Foreign trade turnover in 1991 was USD 5,156.4 million, of which export was USD 2,087.1 million, in
2016 the figures were USD 333 billion and USD 167.83 billion respectively, up 60.4 times and 80 times
respectively. ,4 times compared to 1991.
• In 30 years, Vietnam has attracted 310 billion USD of foreign investors, this capital has contributed
greatly to the growth of Vietnam's economy.
j
\ ■ Integration economics:
£
\ Vietnam advocates active and proactive participation in the process of
s international economic integration. Vietnam's economic relations with
other countries and international organizations are increasingly expanding.
Up to now, Vietnam has established diplomatic relations with 185
countries, promoting economic, trade and investment relations with 224
markets on all continents. Vietnam currently participates in many
economic linkages at all three levels, bilateral, regional and global. It is a

member of the United Nations, the World Trade Organization, ASEAN,
ASEM, APEC, and the World Bank. World Monetary Fund, Asian
Development Bank and many other international and regional organizations.
Vietnam's
economic
cooperation
with
major economies such as the US, EU, Japan, Russia, China, India... is increasingly consolidated and expanded. As
of May 2016, Vietnam has signed 11 bilateral and multilateral FTAs (including the TPP, AFTA and FTA between y
ASEAN and partners China, Japan, Korea, India, and Australia).
■ Average income and average household expenditure:
On average per year in the period 2016-2020, income per capita per month in the whole country increased by 8.2%
on average. 1 person 1 month of 2020 in urban areas reached 5.6 million VND, nearly 1.6 times higher than rural
areas (3.5 million VND). The richest group of households (the group consisting of the richest 20% of the population
- group 5) has a natural income of 1 person in 1 month of 2020 reaching 9.1 million VND, 8 times higher than that
of the poorest group (group of 20% of the poor population). group - group 1), with an income of 1.1 million VND.
The region with the highest natural reserve per capita is the Southeast region (6.0 million VND per person per month),
2.2 times higher than the region with the lowest landscape landscape per capita, which is the Northern Midlands and
Mountains (2.7 million USD). million VND per person per month).
\ In 2020, the average household expenditure of the whole country is 2.89 million VND/person/month, up 13% i
\ compared to 2018. 2020 is a year that people are severely affected by the Covid-19 epidemic. -19, it can be seen that i
\ spending this year increased slower than the previous period (average spending in 2018 increased by 18% compared i
\ to 2016). Urban households have an average monthly expenditure of approximately 3.8 million VND, while rural i
\ households are only 2.4 million VND, the difference between the two areas is 1.6 times. The Southeast region always i
\ ranks first in the country with the highest household spending (more than 3.9 million VND/person/month). The i
Northern Midlands and Mountainous region has the lowest expenditure (equivalent to 2.1 million
TEAM - 2

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VND/person/month). In addition, the increase in per capita spending per month in the Northern Midlands and

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Mountains region in 2020 increased by only 5% compared to 2018 while the Southeast region increased by 17.3% í
\ compared to 2018.
}
Average income and average household expenditure has continuously increased from 2016 to now, which
encourages Vietnamese people to increase consumption. This is a great opportunity for Redbull to increase revenue.
\ ■ Statistics on beverage consumption in Vietnam:
\ In Vietnam, the average Vietnamese consumes more than 23 liters of soft
\ drinks/person/year. According to the Association of Beer, Alcohol and Beverages,
s these product lines account for up to 85% of the country's production and
s consumption. In the first half of 2015, the beverage industry grew by 6.3% year-onyear. By 2020, this number will continue to grow strongly, reaching about 8.3-9.2
billion liters per year.
BMI (British Market Survey Group) forecasts that overall beverage sales will
f
grow at an average rate of 14.2%, reaching VND 136,000 billion next year. In particular, the consumption of j
non-alcoholic beverages in Vietnam will increase to 2.7 billion liters in 2017, corresponding to an average j
growth rate of 7%.
Energy drink market share in Vietnam accounts for about 18%, behind carbonated soft drinks and teas. To be
able to compete with other countries in the market, Redbull needs strategies to capture a larger market share in
a potential market like Vietnam.
4.3
Developments in Science and technology
s In recent years, Vietnam's e-commerce market has been increasingly expanded and has now become a popular ì

business method known to businesses and people. The diversity of operating models, participants, operating
processes and supply chains of goods and services with the support of Internet infrastructure and the application
of modern technology has made e-commerce a pillar of the world. important pillar in the development of the
country's digital economy.
\ In the context of the COVID-19 epidemic, the e-commerce market has become more and more exciting, and the
\ application of digital technology and building new distribution channels is becoming an effective solution for
\ Vietnamese businesses to overcome difficulties. brings new opportunities from the emerging market needs. The
\ buying habits of Vietnamese consumers in the domestic market are also gradually shifting from traditional
\ purchases to online purchases through electronic means. The results of the survey and survey by the Ministry
\ of Industry and Trade show that, by 2020, Vietnam has 49.3 million people participating in online shopping
s (this data in 2016 only recorded 32.7 million people).
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The fact that people tend to switch to online shopping also creates a great opportunity and challenge for Redbull. j
Require Redbull to increase investment and develop online sales channels to take advantage of this opportunity.
4.4
Channels of distribution (macro analysis)
While Viet Nam is an ideal place for manufacturing to many foreign companies, it is also a complicated market. In
fact, Vietnamese goods still dominate the retail system. According to the report summarizing 10 years of
implementation of the campaign "Vietnamese people give priority to Vietnamese goods' ' by the Ministry of Industry
and Trade, the proportion of Vietnamese goods in domestic supermarkets has remained high, mostly over 80%.
\ Since the first COVID-19 infection recorded in early 2020, Vietnam has gone through several national and regional t
\ lockdowns. Many retail outlets were closed except for grocers during these periods. Therefore, instead of traditional t

\ retailers, consumers often opted for modern trade channels or e-commerce when shopping due to their concerns for i
\ hygiene and safety. At the same time, the spending intention among consumers decreased considerably in many i
\ product categories apart from food and beverages and healthcare items.
■ Retailers
The total retail sales of consumer goods and services over 2021 is estimated
at
VND 6,330 billion, achieved 100% of the plan and increased 11.7%
compared
to 2020. Generally, Vietnam does flaunt a wide array of retail formats, each at
a different level of evolution and development, which follows 3 main
structures:
TEAM - 2

10

Ạ


\
• Number of retailers
\ The pandemic has not recovered to pre-epidemic levels in 2021 due to psychology. People are still afraid of outside
\ consumption, thereby affecting FMCG consumers and physical retail Stores. However, retail channels are still
\ affirming an important role in the distribution of goods, the connection between production and consumption.
\ In Vietnam, foreign brands had a larger share of convenient Stores while domestic brands dominated the commercial
s centres, supermarkets, and minimarkets sector. Modern retailers have become more important in the overall retail
s landscape of Vietnam. In recent years, the number of modern retail channels, such as supermarkets and convenience
Stores, has been increasing and dominating the country.
• Typical size of retail outlets
The dominant group of fast-moving consumer goods and supermarkets honoured companies named:
Central

Retail
Group, retail, especially such "all-in-one" destination shopping malls, will
4^ Analysts predict
that,
by Vietnam
2030, large-scale
Vincommerce
General
Trading
Service Joint
4^ dominate Vietnam’s market.
Stock Company,
• Methods
of operation
Ho Chi
Minh City(cash/credit)
Trade Cooperative Union,
The vast majority
of
transactions
in Vietnam are conducted in cash at present, though there is a strong ongoing push
MM Mega Market (Vietnam),
towards cashless
payment
methods.
An estimated 30% of the Vietnamese population currently have formal bank
Aeon Vietnam Co.,
accounts. Credit
and
debit

cards
transactions
Lotte Vietnam Trade Centre Jointhave increased
Stockgreatly in recent years, but still constitute a minority of
transactions. Company,
While smartphone
is high, -mobile
Saigonpenetration
Trade Corporation
TNHHpayment
MTV, systems are not currently popular. For business to business
4^ payments, bank
of electronic
fund transfers
Tandrafts
Son Nhat
Airport Services
Joint are often
Stockthe easiest option as companies may be reluctant to use
4^ letters of creditCompany
due to collateral
requirements
and
additional
costs.
(SASCO),
4^
• ScaleLien
of operation
(large/small)

Pacific Import-Export Co.
4^ The Vietnamese
government
continues to encourage the formation of large-scale corporations in retail, aiming to
Hanoi
Trade Corporation.
4^ strengthen the linkage between production zones and consumer markets. Total revenue from retail sales and services
would average 13-13.5%. By 2030, revenue from e-commerce is set to make up 10.5-11% of total retail sales and
\ services of the economy, or an expansion of 20-21%; 40-45% of small and medium enterprises operating in trade
\ would take part in major domestic and foreign e-commerce platforms.
Type of
retail
Stores

Growth

Number of
establishm
ent
(2019)
360

Number of
establishm
ents
(2020)
332

Number of
establishm

ent
(2021)
348

3007

5186

5214

96

107

108

increas
e

13% (2019)

Mĩni Stores

163

170

154

dccrca

sc

9%

Drugstore

492

679

1133

67%

Coỉĩee
Chain
store
Food Chain
store

816

983

1106

increas
e
increas
e

1302

1235

1307

increas
e

6%,

Fitness gym

116

116

113

decrea
sed

Movie
theatre
Econimerce

158

182

178

non

non

non

decrea
sed
increas
ed

Supermarke
t
Convenienc
e
store
Department
Stores

Spending

increas
e
increas
e

13%

Jollibee
and
KichiKichỉ eipanded their
business

2%

■ Wholesale middlemen
In Viet Nam,the wholesale middlemen will buy the products from the retail company and then sell them to customers
through a third party or directly. They earn their profits from the difference between the buying and selling prices. A
distributor is a cost-effective method and one of the easiest ways to enter a market. However, for a market like
4^ Vietnam's major retail markets to spread across the country, a retail company has to engage with multiple distributors
4^ or with one distributor having a national presence.
4^
• Number and size
4^ At present, Viet Nam has 83 wholesale markets. They account for almost 1 per cent of all Vietnamese markets. On
4^ average, wholesale markets saw average development of about 4.5 per cent between 2016 and 2019. Some of them
4^ have been built well and modernly refurbished like the Bình Điền and Hóc Mơn markets in HCM City.

Top Rranchisos in Viotnam
Food s Beverage
Lotteria
McDonald
‘s
Baskin
Robbins
HaagenOazs
Pi2za Hut
Kentucky

Fried
Burger
King
Jollibee
Starbucks
Domino‘s
Plzza
Popeyes
Chicken

CaiTs Jr
□unkin’
Donuts
Pepper
Lunch
Subway
Gioria
Jean's
DingTea
Trung
Nguyên
Kinh Do
Bakery
Wrap
and Rõll
Cafa
Cong
Coffee
Bean

Retail
TeaLeat
Costa
Jumbo
SẼãlOO
Hard
Rock
Highlan
ds
Pho 24
Kĩng
BBŨ
Huy
Vĩetnam
Sumo
BBQ
Cong
Catẽ

Family
Mart
Circle
K
B's
Mart
Minist
op
GS25
7Eleven
Shop

n Go
Lotte
Mart
Vinma
rt
Citima
rt
Pivima
rt

Apparel
and
accessorĩe
Inditex
Miss
Settndge
Dorothy
Perkins
Fossil
Marks
&
spencer
Charles &
Keith
Bottega
Veneta
Moschĩno
Debenham
s
Boay

Snop
Topshop

TEAM - 2

Educatio
n
and
training
Mathnasi
um
Crestco
m
Dale
Camegie
Cleverlea
m
Cherie
Hearts
AetìonC
Daekyo
Pearson
ÊducaTO
Ẽtonhou
se
Hamleys
PasTracK
ids

11

Rural Consumer Expenditure [US$
billion)

2010 2011 2012 2013 2014 2015 2016
2017 2018 66.1
2019 2020
79.4
70.7

L03.Í

109.3
80.3

Urban Con su me r Expenditure (USS
bìllỉon)


TEAM - 2

12


Despite the strong digital presence, the popularity of traditional media has not diminished in Vietnam. With stiff í
\ competition from social media in the advertising sector, traditional media outlets in Vietnam have seen a decline in j
\ ad revenue in 2021.
t
\ This is compounded by the economic difficulties due to the impact of COVID-19. At the National Press Conference t
\ in December 2021, some print media outlets reported a 70% drop in revenue, while the overall profits of the broadcast ỷ

\ sector saw an 8% dip. Media revenues, which include state funding, donations, advertising and publication, are t
\ falling, requiring news agencies to adapt to the situation.
i
■ Costs
Television: television remains a powerful form of mass media - the number of television channels increased by 18% j
to 87 channels last year and more than 8 in 10 people watch television daily, based on figures in the Kantar Media j
TNS Media Vietnam Report. The average cost to send an advertising message on television to 1,000 viewers in j
Vietnam's six main cities, including HCMC, Hanoi, Danang, Haiphong, Nha Trang and Can Tho, is US$15.
j
s Radio: the average radio ad expenditure is approximately 8 million dong per minute according to website
radiovietnam.com.vn. Vietnam's national radio station, now called the Voice of Vietnam, strives to offer diverse,
high-quality programming in every aspect of mass media. It broadcasts on many channels, repeated on medium wave
(MW) AM, FM and shortwave (SW) AM bands throughout Vietnam and the rest of the world:
c
- VOV1 (MW, SW and FM) - news, current affairs and music
- VOV2 (MW, SW and FM) - cultural and social programs
c
- VOV3 (MW, SW and FM) - music & entertainment
\
Print: Vietnamese people spend a daily average of more than 6 hours on the internet, while more than 5 out of 10 \
internet users read a print newspaper or magazine in the prior month. The respective costs for print newspapers and
magazines are US$18 and US$36.
j
\ Newspaper: more than 350 newspapers, magazines, and journals are printed in Vietnam. VNexpress.net ranked ì
s number 1 and is the most visited News and Media website in Vietnam in November 2021, followed by 24h.com.vn i
as the runner up, and kenh14.vn ranking at 3rd place as the leaders of the News and Media websites in Vietnam.
Closing off the top 5 News and Media websites ranking list in Vietnam are zingnews.vn ranked in 4th place, and
tuoitre.vn at the last position for November 2021.
£
Magazines and journals: the estimated rate for ads in the magazine is $3,875.00. In Vietnam's media landscape, j

printed newspaper circulation has fallen steadily since the advent of the news portals. Online newspapers must change j
their mindset and methods to catch up with the readers’ demand, Lu Pho An said in an article posted on the online {
\ Nguoi Lam Bao newspaper. He believed that the paid content will help readers become more serious and demanding, t
\ therefore, forming a new reading culture.
t
\
- Press
<
\ Popular press releases in Viet Nam include:
i
\
- Nhan Dan - Communist Party daily, English-language pages
/
\
- Vietnam News - state-run, English-language daily
t
\
- Tuoi Tre - daily, published by Communist Youth Union, English-language website
t
\
- Thanh Nien - daily, published by Vietnam Youth Federation
t
\
- VTV - Vietnam Television
t
Internet: According to the Vietnam Digital Report 2021 by London-based media firm WeAreSocial released earlier
this year, the total online advertising spending in Vietnam in 2020 reached $290 million, including more than $115
million on digital search ads. In a country of 96.9 million people, there is a 70% internet penetration rate - the number
of internet users in the country increased by 10% last year. There are also 145.8 million mobile phone connections
and 65 million active social media users as of January 2020, according to the We Are Social Vietnam

Report. Additionally, the Vietnamese government’s new initiative on cross-border advertisement on digital platforms
like YouTube, Google, and Facebook is deemed a step up from previous legislation, particularly regarding censorship
and tax obligations.
\ ■ Agency assistance
i
\ Mainstream ad agencies in Viet Nam
i
\
• Leading.vn
i
\ What they do
i
\
- Leading is a Ho Chi Minh City-based professional Digital Marketing Agency. We specialize in SEO, i
PPC, Social Media Marketing, and Content Marketing: Digital strategy, Web design, Web development,
SEO (Search Engine Optimization), Paid media, Copywriting


\
\
\
s
\
s
s
s

Their focus:
í
- The agency mainly works with SMEs companies and focus mostly on Consumer products & Services t

(40%), next is arts, entertainment & music
"
accounts for 20%, the others segment is
business services.
- Competitive advantages: Awards: Best in
Search - TopSEOs 2020, Best Digital
Marketing Agency Vietnam; Partner of
high-traffic websites and press sites in various fields; Agencies partnered: Primal Thailand, First Page i
Digital Singapore, Remodify.
• Graphic wise
What they do
- Branding and design (Logo design, Packaging design, Website design), Digital marketing (UI/UX SEO),
Research and analysis (in-depth research), Strategize and plan (roadmap for successful branding and
marketing campaigns.)
What they focus:
- Hospitality, Retail goods, Entertainment, medical, professional, financial
y
• Influencer & Digital Marketing in Asia
What they do
- Influencer Marketing, Digital Marketing, Models and Celebrities
f
Client íocus

Industry íocus

60%

Their focus

33%

40%

20%

20%

■

Midmarket ($10M-$1B)

I Consumer Products & Services

■

Small Business (<$1 OM) ■ Enterprise (>$1 B)

■ Arts, entertainment & music ■ Business Services

10% 10%

f

-

International companies from a wide range of industries: applications, games, e-commerce, beauty, f
music, electronics, sports, food, blockchain
j
- The competitive advantages: Creative Agency, Top Influencers, Global Team - Local Resources, j
Flexibility, Experience

J
4.6 Executive summary
j
\ The share of foreign invested enterprises in Vietnam’s economy has rapidly grown in the last decade. Investor t
\ friendly policies have led to the easing of business conditions and entry of foreign players especially from Southeast }
\ Asia, Japan, and South Korea. This has allowed foreign firms to flourish in Vietnam in almost all major sectors }
\ including retail, where most domestic firms and State owned enterprises continue to suffer from mismanagement, ì
\ lack of funds, and access to global supply chains. In addition to the entry of foreign players in retail sector, the rise t
\ in consumer spending, lifestyle changes and urbanization has made Vietnam one of the most attractive retail markets ì
\ in the world. Retail spending continues to grow not only in the traditional and modern retail segments, but also in e- ì
\ commerce, which is largely driven by the rise in the number of smartphone users as well as internet penetration. The ì
s fast food and apparel sector has attracted major international retailers in the last 10 years. The sector has also seen 4^
the emergence of domestic players that are vying for a share in the consumer market. Going forward, as the market
gets more competitive, existing brands in the market will continue to expand, while late entrants will find it hard to
establish a presence.
£
\ 5. MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS
/
s 5.1. The product
£
■ Evaluate the product as an innovation as it is perceived by the intended market
• Relative advantage: Red Bull when entering the Vietnam market will be the first product of the energy drink
market. Because it is an energy drink product, Red Bull offers products that are completely different from V
those already present in Vietnam, they provide energy and help users become more spiritual. Red Bull
brought a completely new look with the main yellow tone and 2 cows rushing into each other, making the
product more attractive to users at that time.
•

Compatibility: Red Bull was originally inspired by Thai street drinks. Vietnam and Thailand both have the j
same geographical area as a Southeast Asian country, so they are compatible with each other in terms of taste j

and preferences.
j
\
• Trialability: Vietnamese consumers are quite fond of imported products because they have a foreigner j
mentality
í
\ ■ Major problems and resistances to product acceptance based on the preceding evaluation: Red Bull's
entry into t
\
the Vietnamese market will have advantages because: it will be a pioneer in the energy drink segment, providing t
\
a new solution for consumers about non-alcoholic beverages, even though it is a brand name. foreign countries, i
\
but with the flavor of the same country and region, there will be a certain compatibility. Along with
that is the i


difficulty in terms of use when having to educate customers that their products are really different and superior í
to other products.
t
, The market
i
Describe the market(s) in which the product is to be sold:
i
• Geographical region(s): Red Bull will be distributed nationwide because the product itself is in the FMCG
segment with low and affordable prices for consumers. It will be divided into 2 main areas: city and
countryside
c
• Forms of transportation and communication available in that (those) region(s): In urban or rural areas, the
main form of delivery is still by truck. In specific areas such as mountainous areas, motorbikes will be used

to bring products from agents to retailers, this also applies to western provinces with many canals, the form y
of transportation is boat.
y
• Consumer buying habits: There are many factors affecting their consumption such as: habits, popularity of f
brands, designs, advertising,... Vietnamese people often buy products according to their habits or products f
that they buy. already experienced rather than new products. Regarding brands, large companies as well as f
multinational corporations are always the first choice of Vietnamese users. Products with eye-catching colors j
are often favored by Vietnamese users along with beautiful designs. Vietnamese users are also easily j
influenced by media and advertising channels, which drives their buying behavior greatly.
t
• Distribution of the product: Red bull has distribution channels that are: traditional, modern, e-commerce. In }
which, the main distribution channel is: traditional marketing channel - products will be delivered to t
consumers through sales intermediaries, i.e. retailers and agents. The modern Red Bull channel is currently t
appearing in big supermarkets in Vietnam along with convenience store chains, besides it also appears at i
restaurants, bars, ... The E-commerce channel in Vietnam was gradually developed during the Covid-19 i
pandemic.
i
• Advertising and promotion
i
Advertising media usually used to reach your target market(s): In Vietnam, the FMCG industry mainly
uses TVCs to advertise on television, along with sponsoring television programs. Recently, brands with
young consumer groups are gradually turning to social networking sites with short videos with content
that attracts at first sight.
Sales promotions customarily used (sampling, coupons, etc.): Sales promotions that the FMCG industry
often uses in Vietnam are: giving free samples of new products when selling old products, gifts in kind \
(erasers, pens, backpacks,...), coupons buy products, discount products when there is an event
• Pricing strategy: FMCG companies in Vietnam all use penetration pricing strategy to be able to reach f
customer groups on a daily basis from the very beginning. In their distribution channel, they also have f
separate prices for each channel and channel members. For wholesalers, modern channels, and B2B partners j
they often have a wholesale pricing policy and have a discount for each channel.

j
Compare and contrast your product and the competition's product(s)
j
• Competitors' product(s)
t
Brand name: In Vietnam, the two big rivals that Red Bull has to face are Sting of Pepsi and Number One i
of Tan Hiep Phat Company.
i
Features
o Sting energy drink gives you an energy boost to charge-up and keep you going. It also invigorates t
your taste buds with its refreshingly delicious flavor. Sting has the kick of Caffeine, Ginseng and B
Vitamins with amazingly refreshing flavors.
Number 1 energy drink is made from a combination of vitamin B3, taurine, inositol and caffeine to
help the consumer quickly increase their energy levels and continue to perform at the highest levels.
Package:
o Number 1 energy drink has a packaging with mainly yellow tones and stands out as number 1 in
pouring color to be able to enhance its leading position, the images on the packaging are also images
of motorsports that make up the brand. look at strength and energy. It comes in 350ml PET bottles,
240ml glass bottles and 240ml cans giving consumers maximum choice.


o The brand also applies a strategy of “extending the line” to packaging with distinct flavors. Sting's
three popular packaging types are glass bottles, tall plastic bottles, and in the form of tin cans for
convenient use. The packaging is mainly red corrugated iron to highlight the product

Competitors' prices: FMCG companies in Vietnam all have the same pricing strategy, which is penetration
pricing, in addition, they all have different price lists for each member for the distribution channel. The price
of Sting to consumers is 11,000 VND, while Number One is 10,000 VND
Competitors' promotion and advertising methods:As mentioned above, the FMCG industry is still relying on
television ads, with the current trend of brands looking to other social platforms.

The most prominent programs of Sting's communication strategy are the MV "Vietnam will win" and
the creative photo contest "Trust to win" with limited edition cans. In the New Year 2021, Sting
collaborated with Karik and Phan Manh Quynh to release the music video advertising Tet "Men don't
talk". Overcoming other brands, this music video of Sting brought in an impressive number of 13 million
views after just over half a month of its release.
Number One's promotional videos are currently at a stable level and have not yet made a breakthrough.
However, the promotional videos all focus on the content given from the beginning as "increasing
strength, instant alertness" to make consumers have a unified view of the brand.
• Competitors' distribution channels: Similar to Red Bull, the distribution channels of Sting and Number One
both have channels such as: traditional, modern, direct. Details will be provided in the following section.
Market size
• Estimated industry sales for the planning year: It is estimated that by 2022, the entire energy drinks market
in Vietnam has a capacity of 4,111,641,600,000 VND with an average growth rate of 4% per year.
• Estimated sales for your company for the planning year: With an estimate of 45% market share for the desired
market, the revenue will be 1,850,238,720,000 VND
Executive summary
s Vietnam's energy drink market has still had many new competitors entering the industry in the past few years, proving
s that this is still a market with great potential for exploitation. However, making you stand out is one of the challenges
s when you are still in this industry. In addition, Vietnamese consumers are increasingly interested in health and
nutrition issues, so the use of products containing a lot of sugar is being considered.
6. PRELIMINARY MARKETING PLAN
\1 The marketing plans
\
■
Marketing obịectives:
s • Target market
s Target customers: Red Bull target customer segment represent busy individuals who are overly active in their
personal and professional lives and who have are fascinated by extreme sports.
Demographic
AGE

From 15 to 45.

GENDER

All gender

INCOME

Middle class to High Class

FAMYLY LIFE CYCLE

Single, Honeymooners, Parenthood
Geographic

LOCATION
DENSITY

Maịor provinces throughout Vietnam
Urban and Rural
Behavior

USER STATUS First User, Regular User, Ex-User
Enhanced performance, Sense of belonging
BENEFIT SOUGHT


Psychographic
LIFE STYLE

Active, sporting, Explorer, Reformer

PERSONALITIES

Positive attitude

• Sales and profit forecast years 1-5
s Year 1 Projection
2. Potential market size
Frequency/year
48
Market size
373,785,600
(units)

1. Potential customer
Vietnam Population 100% 97,340,000
Population 15-45
40% 38,936,000
Product penetration 20%
7,787,200

3. Potential Market share & Sales
Market share
45%
Unit price
VND 11,000
Potential sales
Sell out in

168,203,520
unit
$
Sell out in value VND 1,850,238,720,000
80,445,162

5 YEAR MARKET PROJECTION
Year
Market size

1

2

373,785,600

388,737,024
4%

Market growth
Year
Market
share
Sell out in
unit
Sell out in
value

1
45.0%

3

4

5

404,286,505 420,457,965
4%
4%

5 YEAR BUSINESS AMBITION
2
3
47.5%
50.0%

437,276,284
4%

4
52.5%

5
55.0%

168,203,520

172,408,608

176,613,696

180,818,784

185,023,872

1,850,238,720,000

1,896,494,688,00
0
6%

1,942,750,656,000

1,989,006,624,000

2,035,262,592,000

5%

5%

5%

4

5

Growth

Year
Sell out in
value
Profit

1

5 YEARS PROFIT FORECAST
2
3

1,850,238,720,000

1,896,494,688,000

1,942,750,656,000

1,989,006,624,000

2,035,262,592,000

925,119,360,000

948,247,344,000

971,375,328,000

994,503,312,000

1,017,631,296,000

■ Swot analysis
STRENGTHS
Red Bull’s biggest asset is its powerful brand. The
name “Red Bull” is synonymous with energy drinks
the world around.
Have a steady customer base.
Strong financial resource

WEAKNESSES
Limited product range
High price tag
Focused only on one market

OPPORTUNITIES

THREATS



The trend of consumers switching to using energy
drinks and tea instead of carbonated soft drinks.
With the development of new flavors, the
Corporation can maintain or increase its market
share.

More and more low-priced competitors appear.
The adoption of new health restrictions that prohibit
the sale of energy drinks or dramatically diminish
their profitability is perhaps the most frightening

threat to Red Bull.
Tendency to switch for a healthier lifestyle.

Product
• Core component
Product Platform: Energy Drinks.
Design features:
Functional Features: Drinks for refreshment, awake and boas energy of the consumer.

Packaging component:
Trademark: Red Bull’s iconic symmetrical image of fighting bulls suggests power and endurance í
and is now often identified with extreme sports. Indeed, the product is marketed towards young athletes
need of extra energy while practicing their sport.
Brand name: Red Bull - The red bull, such as, energy drinks enjoy a strong imagery and appeal }
amongst consumers, name symbolizes quality, health and great taste.
Price:
Retail Price: 10.000 - 12.000 VNĐ / a can
Wholesale Price: 200.000 VNĐ/ 1 pack of 24 cans.
Package: Red Bull Energy Drink is filled into 100% recyclable aluminum cans.
Support services component

y
j
in j
j
t
4*
t
j

-

_
\
\
\
\

Warranty: 100% of products are checked for quality, size and color.
j
Repair and Maintenance: Return and receive a new product if the product has a defect from the i
manufacturer.
i
Promotion mix
• Advertising
Objectives: helps to improve the product's image, credibility, and visibility.
Red Bull uses all accessible media outlets, including social media television, radio, print, and the internet. In other
words, the corporation concentrates on the media channels via which it communicates with its core target marketyoung people. Through all activities below, we want customers to recall their brand every time they see or hear
energy drink thus increasing their customer base. Hence, this covers the marketing mix of Red Bull.
y
Social media
j
Facebook: Red Bull's Facebook and Instagram posts are a mix of video and images. However, behind j
every image, there is a story to be told, and customers can always expect something really interesting j
and exciting from Red Bull when it comes to digital content.
j
Youtube: This is the social media channel where Red Bull has something really special to share with f
their fans. Currently more than 20 thousand subscribers are enjoying daily uploads.
j
Tiktok: Channel for short videos that make customers remember RedBull’s brand.

j
Event and sport Sponsoring: sponsoring is also incorporated into the company's marketing mix. t
Sponsorship helps to improve the product's image, credibility, and visibility. On the one side, Red Bull i
sponsors the athlete target market in the activities like free climbing, jogging, cycling and motorsports or fun i
sports, but always where Red Bull is required. This method helps Red Bull by increasing the visibility of the i
brand (logos and stickers) and narrowing the product's target market.
i

Red Bull, on the other hand, sponsors events. The corporation either creates its own events (for example, Red Bull
Music Festival...), where the entire event is sponsored by Red Bull, or promotes other events (i.e. Speed Cycling
Vietnam Championship). Event sponsorship draws people's attention to the product and bonds them with it.
< Message: that this energy drink helps you to escape by “giving you wings”.
Activities
Costs
Details
Facebook, Instagram
600,000 people reachable on Facebook
220,000,000
and Instagram in 6 months
Social media
YouTube
270,000,000
300,000 viewers (900đ/1views)
Tiktok
138,000,000
600,000 viewers (230đ/1 views)
Sponsoring
1,500,000,000
Sports Event.

j
>


• Salesand
Promotion:
Event
Sports

Red bull’s Event
Music festival, Speed Cycling Vietnam
- Sampling: this approaches have been well tested
and
proven
in
various markets. Red Bull's main goal is to
Championship.
2,000,000,000
Sponsoring
energize the Redbull’s samples at the right place and right moment, where it finds its target market (High School,
University, Office, Stadium,...). Driving, studying, working night shifts, and playing sports are all examples of
how it is used. Red Bull adheres to the basic sample rules, which are as follows:
✓ Always explain the benefits of the product.
f
✓ It must always be cooled.
j
✓ Giving the sample to right target customer.
j
Selling two or more products at a special price: Draws consumers to a specific retail stores and influences í
them to purchase more product to get a special price. This method used to entice customers to purchase more t

product than they really want.
(
- Coupon online: a certain code of several characters (alphanumeric, or both) used in both online and offline t
payments. When buying online, you use this code in the discount code area (if any). Link with Momo wallet, ì
ZaloPay to give customers coupon when paying via their e-wallet.
t
Distribution:
Method
Cost (VNĐ) Note
• Port selection
j
Sampling
250,000,00 20 universities, 100 high school, 10 densely areas.
Due to 500,000,00
and for
thin
shapetarget
and customers
three different
regions
of Each
the country, the t
0extensive coastline,
Coupon online
500.000long
coupons
500.000
on Momo,
Zalopay.
combination

to the
hubs in
eachVND
region
andcustomers
road transport
are the
most commonly
0 of shipping
coupon
is worth
10,000
when
buy a pack
of Redbull
(6 cans). used i
■
logistical methods:
i
North region: Hai Phong, under 100km from Hanoi. A deep-water Container terminal opened at the port
in 2018, hence avoiding the need for transhipment via Hong Kong or Singapore
Central region: Da Nang, Quy Nhon and Vung Tau.
South region: the network of ports around Ho Chi Minh City, which together create the 5th largest port
in ASEAN, and account for around 2/3 of port shipments in Vietnam. Notably ports include Cai Mep
(deep water) and Cat Lai
Mode selection: Advantages/disadvantages of each mode
j
Railroads: Vietnam’s rail network is limited - just 3 200km at present - and hence accounts for only a j
very small proportion of freight transport. The Viet Nam Railway Cooperation is the sole operator of {
services in the country. There are plans to further develop the rail network; but at present is generally t

not interesting due to its small size and slow travel times
t
Air carriers: Air freight accounts for around % of the value of goods traded into and out of Vietnam, i
though air freight is growing at around 9% per year. While Vietnam has over 20 airports, only half of t
these are international. The main airports for air cargo freight are:
t
o Noi Bai International Airport, Hanoi
t
o Tan Son Nhat International Airport, Ho Chi Minh City
t
There are also various plans for further developing airports in the country. Most notably, the above two
airports are being expanded, and a new airport Long Thanh International Airport is being built 30km
from Ho Chi Minh City.
Vietnam has over 42,000 km of inland waterways, mostly in the Mekong and Red River deltas, which have the
potential to increase connectivity and reduce costs for the transportation sector. Waterway transport therefore
accounts for around 1/5 of freight transport. However, a limited percentage of the waterway network is under formal
management; and transport down waterways is very dependent on climatic conditions.
y
• Road Freight: road freight is the most important method of transporting goods in Vietnam, accounting for \
around % of all freight transport. The road network is extensive - over 250 000 km - however, under 1/5 of
this is paved, and 2/5 can be considered to be in poor condition. The poor condition of the road network can
create challenges with freight transport.
f
■ Channels of distribution (micro analysis).


First of all, our team recommends the safest way to enter into a new market for Red Bull by using a relevant low risk
\ entry mode: Licensing or Joint Ventures. However, after becoming familiar with the local situation in Vietnam and
\ with the long-term experiences, the company should try high risk entry mode.
\ Specifically, Red Bull should mainly take the way of investing directly in the foreign markets, just in order to have

s a tight control on every store. According to Hill (2007), this is the so-called “wholly owned subsidiary” entry mode.
\ In Hill’s opinion, such entry mode cannot help a firm reduce the risk of losing control over the competence, but also
s can make it have tight control over operations. Some other entry modes for Red Bull are licensing and joint ventures.
s • The channels
According to EVBN - The retail channel report in Vietnam, the distribution of imported products in Vietnam
generally follows one of the four models below:
Exporters => Importers/Distributors => Big Modern Retailers
Exporters => Importers/Distributors => Wholesalers => Retailers
Exporters => Local Agent => Importers/Distributors/Wholesalers => Retailers
Exporters => Big Modern Retailers
From our team’s personal perspective, Red Bull should follow the first two models because they involve fewer
intermediaries. Indeed, relying on importers/distributors presents two more advantages for overseas exporters: They
do not need to be concerned with the import procedures, and they can rely on the network of their Vietnamese
partners.
Two pictures below can express our team’s designs for Red Bull’s possible distribution channel in Viet Nam.
Exporters

MANUEACTURER

LttF AGENTS

RED STRIBUTOR

MHOLESALERS

I Wholesalers I

I Wholesalers|

• Retailers

Red Bull should invest in an Intensive distribution channel, which can cover all these types of retailers:
Types of retailers

Reasons to choose

Small grocery

the most popular in Vietnam for the purchase of F&B products - key importance in rural
areas.

& During covid 19, the popularity of these channels in urban areas has been driven by the
need
for convenience and increased interest in food safety.
There are a large number of super/hypermarket chains in Vietnam - both local and foreign
=> A high level of fragmentation.
Big chains: Big C, Co.opmart, Auchan, Vingroup and AEON.
Convenience stores Foreign chains hold a high market share amongst convenience stores
Big chains: Bach Hoa Xanh, Circle K, Co-op, Family Mart and B’s Mart
Supermarkets
hypermarkets

eCommerce
Hotels, restaurants,
cafés and Gyms

30% of consumers purchase grocery shopping through e-commerce channels at least once
a
week.
There has been increasing interest in restaurants serving food from specific foreign
countries

(e.g., Korea and Japan).
The chain for food and beverage imports intended for food service passes through
importers


should have a direct tie up with larger food service operators such as Lotteria, Jollibee and
King BBQ.
\
• Import/export agents
s Importers generally play an important role in helping imported foods reach shop shelves in Vietnam, as they will
\ deal with distribution to wholesalers and retailers.
s That said, some supermarket chains indeed a tie-up with larger, more prestigious retailers can be a good way of
s entering the market. While it may be possible to find importers with a strong network throughout the whole country,
many importers are based in either Hanoi or Ho Chi Minh City, and will focus primarily on the north or south
geographical regions respectively. Among these two, Ho Chi Minh City may show slightly more potential due to the
slightly greater presence of modern retails stores and the larger foreign population. Alternatively, it may be possible
to find an importer to work within one of the major cities and appoint a local agent for other major cities (including
e.g., the third largest city, Da Nang).
■ Price determination
\ Cost of goods sold - COGS:
Original cost = Product cost + Other incurred costs (if any)
\ Currently, the original price of a shipment or a can of Red Bull is not known exactly. But the team will assume based
\ on the retail price in the Vietnamese market and the following formula:
Retail price = [Original price/capital + (Original price X% desired profit)]
s For example, a Red Bull product has a retail price of 10,000 VND at grocery stores, we want to make a profit of
s 100%, then we will have the original price: 5,000 VND. In addition, the combination of different modes of transport
s (multimodal transport) to combine the advantages of each mode of transport is also not common in Vietnam. For
these reasons, it is natural that the total logistics costs (mostly transportation costs) are very high. This situation
results in very different retail prices across the country.
Currently the price of a Red Bull varies from country to country. In Vietnam, a can of Red Bull costs about 10,000

VND. However, a remarkable information shared on social networks, citing the Vietnam Sales and Marketing
Congress, will surprise many people. Accordingly, in each can of Red Bull, the most expensive cost is advertising,
accounting for 59.8%; distribution and display costs accounted for 15%; transportation and collection costs accounted
for 10.5%; The cost of human resource management accounted for 10.4% and the smallest cost of materials was only
4.3%. Although the above information is for reference only, these figures are completely understandable for the
FMCG industry in general and for a well-known company that spends on marketing and brand promotion like Red
Bull in particular.
Logistics costs in Vietnam are much higher than in the
world. In the ASEAN region, some countries such as
Thailand, Singapore, etc. have reduced logistics costs, while
Vietnam's costs are still high, a barrier to competitiveness.
According to data of the World Bank (WB), logistics costs
(transportation, storage, customs clearance...) in Vietnam
are about 20.9-25% of GDP. Meanwhile, the average cost
accounts for 12% of the world's gross domestic product. In
which, transportation costs account for about 60%, a high
cost compared to developed countries. This cost is higher than Thailand 6%, Malaysia 12%, and 3 times higher than
Singapore. According to the International Monetary Fund (IMF). In the US economy, logistics costs account for
9.9% of the country's GDP ($921 billion in 2000).
\ Regarding the targe of customs fees, fees of goods and vehicles in transit specifically as follows: (Attached to Circular
\ No. 274/2016/TT-BTC dated November 14, 2016 of the Minister of Finance).
s • Customs fee for declaration registration: 20,000 VND/declaration
• Customs fee for inspection, supervision or suspension of customs procedures for exported and imported
goods with claims for protection of intellectual property rights: 200,000 VND / 01 application
• Transit fee for goods: 200,000 VND/declaration
• Fees for vehicles in transit by road (including: cars, tractors, tractors): 200,000 VND/vehicle
• Fees for means of transit by waterway (including: ships, canoes, tractors, barges): 500,000 VND/vehicle


, Accordingly, the fee to be paid when declaring the customs declaration for customs clearance is 200,000 VND / 1

„ declaration, on the other hand, Vietnam's law does not have a regulation on customs tax, maybe this is an import tax,
value added tax on goods. In addition, in Vietnam, last year, the Ministry of Finance announced a draft amendment
> to the Law on Special Consumption Tax (SCT), which proposed to impose a 10% SCT on sugary soft drinks, exclude
dairy products to protect public health and increase the budget. It is the policies on taxes and costs that are still
shifting that have had a strong impact on the energy drink industry in general and Red Bull products in particular.
Consumers when buying a can of Red Bull have to pay much higher than the actual value, because those are brand
fees,
marketing costs, shipping costs, export taxes,...
t
’ 6.1. Methods of payment
The language used in international payments is mainly English and dispute settlement is mainly by international law.
In international payments, cash is almost never used directly, but rather by means of payment. We will recommend
" the following 3 payment methods:

Imoney Iransicr
mclhod)

2 Proforma financial statements and
Activities

Social
media
Event and
Sports
Sponsoring
Method
Sampling
Coupon online

Facebook,

Instagram
YouTube
Tiktok
Sponsoring
Red bull’s Event

Costs
220,000,00
0
270,000,00
0 138,000,00
0
1,500,000,00
2,000,000,00
0
Cost (VNĐ)
250,000,000
500,000,000

Details
600,000 people reachable on Facebook and
Instagram in 6 months
300,000 viewers (900đ/1views)
600,000 viewers (230đ/1 views)
Sports Event.
Music festival, Speed Cycling Vietnam Championship.
Note
20 universities, 100 high school, 10 densely areas.
500.000 coupons for 500.000 target customers on Momo,
Zalopay. Each coupon is worth 10,000 VND when

customers buy a pack of Redbull (6 cans).
4,878,000,000 VNĐ

Total cost
SOURCES OF INFORMATION
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