MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS AND FINANCE

HO CHI MINH CITY

PRICING STRATEGY: RED BULL’ PRICING STRATEGY

IN THE SOUTH EAST ASIAN MAKKET 2023-2024

Class: MKT1148E.A03E

Lecture: Hồ Hữu Lực

Team: A+

Team lead: Nguyễn Thị Xuân Quỳnh

Team members Student ID Participation (%)

Nguyễn Thị Xuân Quỳnh 225044455
Lý Kim Diệp 225990110
Trần Hoàng Phúc 225040736
Hoàng Mai Linh 225047054

1
TABLE OF CONTENTS
I. INTRODUCTION.................................................................................................................3
II. MARKET ANALYSIS...........................................................................................................3
III. COMPETITIVE ANALYSIS............................................................................................4
1. Analyze the pricing strategies of each competitor, including their price points, discounts,
and promotions:............................................................................................................................4
2. Evaluate the market positioning of each competitor, including their target market, value
proposition, and brand image:......................................................................................................5
IV. RED BULL PRICING STRATEGY................................................................................6
1. Analyze Red Bull's current pricing strategy in the South East Asian market......................6
2. Discuss Red Bull's price points relative to its competitors and its positioning within the
market...........................................................................................................................................6
3. Analyze Red Bull's pricing structure, including any discounts, promotions, or bundling
strategies.......................................................................................................................................7
4. Evaluate the strengths and weaknesses of Red Bull's pricing strategy, considering its
impact on sales, profitability, and brand image............................................................................7
V. RECOMMENDATIONS.......................................................................................................8
VI. CONCLUSION..................................................................................................................8
VII. REFERENCE...................................................................................................................10

2
 I. INTRODUCTION

Red Bull is a globally recognized energy drink brand founded in 1987 and best known for its
slogan “Red Bull Gives You Wings.” In the Southeast Asian market, Red Bull has successfully
positioned itself as a premium energy drink among a growing number of consumers who value
convenience, performance, brand reputation and place a premium on sugar control in
beverages.Thanks to the Premium pricing strategy, Red Bull has a prominent and globally
recognized brand.The product has a special formula, bringing energy and alertness to young and
active customers. This pricing strategy is applied to maintain the Redbull brand value in
Southeast Asia and product quality to help differentiate itself from the fierce competition that
Red Bull is facing with strong competitors such as Monster Energy, Rockstar. While Red Bull
uses brand image enhancement strategy to increase brand awareness with customers. This report
focuses on the period 2023-2024 with the main objective of the report focusing mainly on
analyzing the market size and trends of Redbull energy drinks in the Southeast Asia market.

II. MARKET ANALYSIS

The energy drink market in Southeast Asia is growing. According to a Statista Research
Department (2023) survey among Southeast Asian countries, less than 5% of respondents in the
Philippines consumed energy drinks multiple times a week as of January 2023. The Philippines
and Thailand also had the highest
percentage of consumers who did not
drink energy drinks, at more than 50%
each, and more than 18% of respondents
in Vietnam drank energy drinks multiple
times a week. Most recently, according
to data from Volza, Vietnam and
Singapore are the two largest Red Bull
consuming markets in Southeast Asia. Figure: Top 10 Redbull Energy Drink Buyer
Countries (Data Source: Volza)

Of which, Red Bull is currently leading the energy drink market share in Southeast Asia,
including Vietnam and Thailand. With market segments including alcoholic and non-alcoholic
beverages for end users including children, adults and adolescents. Because of the nature of
work, study or social activities that make people tired, they need to be alert, in which men from
18 to 34 years old consume the most energy drinks and nearly 1/3 of teenagers from 12 to 17
years old drink them regularly. Southeast Asia has low land and labor costs, so it attracts
investment. Manufacturing and industry also develop when the demand for labor increases, they
will work a lot and they will become the main customers of energy drinks. According to the Ho
Chi Minh City Investment and Trade Promotion Center (ITPC), most governments in several
Southeast Asian countries are stepping up measures to reduce sugar consumption by imposing
taxes. For example, the Philippine government imposes a tax of 6 pesos (VND2,600) per liter on
beverages containing caloric or non-caloric sweeteners and 12 pesos (VND5,200) per liter on

3
beverages containing high-fructose corn syrup. According to the Astute Analytica report, more
than 55% of Vietnamese consumers are more concerned about the sugar content in drinks, so
many Redbull energy drink products are sugar-free and calorie-free. The main distribution
channels for energy drinks include supermarkets and hypermarkets, specialty stores, convenience
stores and online stores. Redbull's competitive landscape in Southeast Asia includes companies
such as Amway (Singapore) Pte Ltd., Fraser & Neave Holdings Bhd (Fraser and Neave Limited),
Karabao Marketing (M) Sdn. Bhd., Monster Energy Company. Red Bull has abandoned
traditional advertising methods, instead focusing on content marketing and experiential activities
so that Red Bull always maintains a high-end image and is always a pioneer in creative
marketing campaigns, sponsoring outstanding sports and music events. Thanks to that, Redbull
has a higher selling price than other energy drinks on the market. In short, by quickly adapting to
consumer trends, Red Bull has not only captured market share but also built strong connections
with young people in Southeast Asia.
III. COMPETITIVE ANALYSIS

Red Bull’s main competitors in the Southeast Asian energy drinks market are: Monster Energy,
Rockstar Energy.

1. Analyze the pricing strategies of each competitor, including their price points,
discounts, and promotions:

Red Bull Monster Energy Rockstar Energy

0.57-3.38 2.50-5.50 1.50-2.50

Price
USD/250ml USD/473ml USD/473ml

- Rarely offer deep - Frequent BOGO

Discounts & discounts (buy 1 get 1 free) - Use loyalty
Promotions - Promotional - Special deals at programs (e.g.
strategies include gas stations and rewards at gas
“Bulk purchase vending machines stations and
deals” grocery
- Partner with chains)
- Loyalty and gift major retailers
programs (e.g. (e.g. Walmart, &-
redeeming cans for Eleven) to offer
rewards) are also limited-time
available in some discounts
areas.

- Focus on - Use “value - Compete with

Pricing maintaining a pricing” by “low prices
Strategies premium image offering larger and attractive

4
 through “high cans at the same promotions”
prices and limited or lower price - Less focus on
price reductions” than Red Bull popular
- Premium pricing to sponsorship
reflect high-quality - Sponsor games, programs
positioning music, motor
sports - Rely on
- Leverage “brand “retailer
sponsorships” visibility and
affordability

2. Evaluate the market positioning of each competitor, including their target market,
value proposition, and brand image:

Red Bull Monster Energy Rockstar Energy

- Age: 16-34, - Age: 18-34, - Aged 18-35, broad

Target extreme sports audience mass-market
market enthusiasts, gamers, appeal, including
professionals, motorsport fans, athletes,
student, and extreme sports musicains,students,
gamers enthusiasts. and general
consumers looking
- Positioned as a - Appeals to for an energy boots
premium energy broader audience
drink, appealing with multiple - Slightly lower
to high achievers flavors and price point than
and active agggressive Red Bull and
lifestyles. branding Monster Energy,
making it more
accessible.

Value - For people in - Provides high - Provides energy

propositio highly- energy and for both work and
n demanding performance play.
professions, Red boosts.
Bull help them - There is a strong
perform better at - Langer cans at a shift towards
work competitive beverages that
price compared support fitness and
- For athletes, Red to Red Bull, health goals.
Bull energy emphasizing

5
 drinks enhance value and
their focus. quantity.

Brand - The first brand to - Tends to use - Not as prominent

image define energy more vibrant as Red Bull and
drinks in the colors and loud Monster Energy
world designs in its but still maintains
overall branding market share.
- Associated with to differentiate. - Associated with
images of adventurous
adventurous - Associated with image, active
activities, images of lifestyle, focus on
dynamic energy, music and sports.
lifestyle, suitable excitement and
with brand thinking about
colors. pushing limits.

IV. RED BULL PRICING STRATEGY

1. Analyze Red Bull's current pricing strategy in the South East Asian market.
Although RedBull's price in the Southeast Asian market is high, it still creates a sense of
belonging to the high-end segment, not only reflecting the light of product quality but also giving
advice on brand positioning to promote a strong, dynamic image, suitable for young customers.
Red Bull still guides the building of a strong brand image, product diversification and
appropriate pricing strategies such as psychological pricing strategies "attractive pricing" (prices
below round numbers) to create products that seem more reasonable or "anchor" to increase the
perceived value of customers. Redbull always maintains high prices partly because it affirms that
the strong brand with effective marketing campaigns through strong investment in marketing
through sports events, music and creative content to connect with young people helps Red Bull
become a lifestyle icon without being overshadowed by many low-cost competitors. Redbull's
distribution system in the Southeast Asian market is also increasingly optimized, especially on
the online platform.

2. Discuss Red Bull's price points relative to its competitors and its positioning within
the market.

The energy drink market in Vietnam

is witnessing fierce competition
between international and domestic
brands, with foreign brands
dominating. At the end of 2023, an

Figure: Total brand awareness of energy drinks

6 (December 2023)
online survey of 510 Vietnamese consumers was conducted to assess the level of brand
awareness in this field.

Despite facing competition from many other energy drink brands, Red Bull has maintained its
market leadership position. With the slogan “Redbull gives you wings”. It focuses on the idea
that the Redbull product gives you “wings” or energy to the customer.

With the advantage of being a pioneer brand in the industry, Red Bull has built a solid trust from
consumers. Therefore, even though there are many other options on the market, Red Bull is still
the first name that customers think of when they need an energy drink.

3. Analyze Red Bull's pricing structure, including any discounts, promotions, or

bundling strategies

Red Bull is famous for using psychological pricing strategies to influence consumers' purchasing
decisions. One popular strategy is "fascination pricing," in which the price is set just below a
round, limited number like $2.99 instead of $3.00. This pricing creates the impression that the
product is more reasonably priced and is being offered at a discount, when in reality there is no
significant difference.

Red Bull also uses the “new price” technique, introducing limited edition products at higher
prices. Special Red Bull products with unique designs are often sold at a higher price than the
regular product, creating a new point in the customer’s mind. Then, the standard Red Bull can
will seem like a more economical unit, even though it is not cheap at all. These tactics help Red
Bull stimulate the shopping psychology, making customers willing to spend without feeling like
they are paying more than they actually are.

Despite its high price, Red Bull has launched many promotional programs to attract new
customers and retain loyal customers. Although selling in smaller quantities than competitors
does not affect revenue, Red Bull's profits are still very large. Specifically, in October 2024, Red
Bull launched a promotional program according to a strategy belonging to 1 of 3 types of
discounts: "Suggestive" ("SEIZE THE OPPORTUNITY TO 'HUNT' FOR THERMOS, GO FOR
IT!!!"). Customers only need to buy 6 cans of Red Bull Zinc & Vitamin at a convenience store to
immediately receive a "cool" thermos.

Red Bull is widely available in locations such as supermarkets, convenience stores, bars,
restaurants, and sports and music events. They focus on places where their target customers
frequently visit, such as gyms, sports clubs, and music festivals. In addition to traditional
distribution channels, Red Bull also directly brings its products to events they sponsor. They
organize free sample giveaways at schools and playgrounds, making it easy for customers to
access the product. In addition, Red Bull regularly organizes contests, games, and promotions to
interact with customers, creating an interesting and memorable experience.

Recently, Red Bull kicked off SKY FEST 2025 with the minigame “GUESS THE SONG, GET
VIP TICKETS TO WATCH THE SHOW WITH IDOL”. 10 lucky players will receive VIP

7
tickets to participate in the event “STANDING STRONG, SAY HIGH 2025” on January 11,
2025. The program is currently attracting strong response from the online community.

4. Evaluate the strengths and weaknesses of Red Bull's pricing strategy, considering its
impact on sales, profitability, and brand image.

STRENGTHS WEAKNESS

Builds a strong brand, associated with Expensive, making it difficult for price-
dynamism, youthfulness and endurance. sensitive consumers to reach it.

Widely distributed, from supermarkets, Can limit its ability to reach other customer
retail stores to online platforms, making it groups if not properly tailored.
easy for consumers to access.

TCP Group's products are currently The growing health consciousness has made
available in 15 markets, including 9 consumers wary of energy drinks due to
Southeast Asian countries. concerns about negative effects.

Red Bull's strengths help the brand maintain its leadership position and maintain high profits.
However, some limitations can slow sales growth and limit its ability to expand into potential
markets.

In 2023, Red Bull recorded a 9% increase in net revenue to 10.6 billion euros. However, due to
increased costs, net income increased only slightly by 3.1% to 1.7 billion euros. However, over
the past three years, Red Bull's sales growth rate has been impressive, maintaining a level of over
20% per year.

To improve this, Red Bull could consider adjusting its pricing strategy to reach more customer
segments. At the same time, the brand also needs to diversify its image, not only limited to the
field of extreme sports but also expanding to many other target groups.

V. RECOMMENDATIONS
Apply the limited consumer product gift program:

Red Bull can implement a limited-edition consumer product giveaway program with the aim of
increasing sales by combining limited-edition products without having to lower the prices of
existing products on the market. Collect customer satisfaction with the complimentary products
through customer surveys to decide on independent production to increase Red Bull's income. In
this campaign, giving away limited-edition products to customers increases the perceived value
without changing the original selling price, maintaining the brand's premium image. Giving
away limited-edition products makes customers feel that they are getting more for their money,
thereby promoting the purchase decision. The complimentary products include products such as
energy bars and snacks. The format will be in the direction of a limited-time promotion with a
"recommended discount" strategy such as "Buy 1 Get 1 Free" or a "Buy in bulk, get a free gift"

8
program. Applying the above program will help increase sales, thereby improving Red Bull's
profits. However, Red Bull’s competitors are Rockstar, Monster Energy - brands that focus on
price. Therefore, it is necessary to have a reasonable pricing strategy, not only a reasonable
pricing strategy but also a strong communication strategy to attract customers. Another challenge
is the increased logistics costs when giving away products, requiring effective cost management.
Southeast Asia is a potential market with an average GDP growth rate of 4.6% by 2024. This is a
great opportunity for Red Bull to reach young people on digital platforms and expand its market
share.

VI. CONCLUSION
In the 2023-2024 period, Red Bull has maintained a premium pricing strategy to assert its brand
position and ensure profitability against competitors such as Monster and Rockstar. Red Bull
also reflects the product quality, large-scale marketing strategy and brand value that the company
has built over many years. When setting prices, Red Bull not only takes into account production
costs but also considers reference prices from competitors and the unique value that the brand
brings. In addition, with the increasing trend of health-conscious consumers, Red Bull also needs
to expand its product portfolio to meet new needs. If it does not adjust in time in the future, the
brand may lose some market share to competitors who are focusing on healthier product lines.

9
VII. REFERENCE

10