Austrian beverages maker Red Bull today said it was looking to grow the energy drinks market in India via a series of marketing initiatives and promotional events leveraging on the country's first ever Formula 1 race to be held next month.
With Formula 1 becoming popular in India, the company is banking on the success of its F1 racing team to further strengthen its brand equity in India.
"Red Bull currently enjoys 90% market share of the energy drink segment in India. It is clearly the leader. So, the idea is to grow the market itself and grow Red Bull's shares here, rather than focusing on increasing the share [only]," Red Bull Racing Brand Manager Anthony Ward said.
As per the industry estimates, the energy drinks market in India is growing at about 50% per annum and last year the total volumes stood at around 1.5 million cases of 24 cans annually. The other significant player is Cloud 9.
Ward said Red Bull was holding a host of marketing initiatives and promotional events in India as part of a brand building exercise built around the Indian F1 race.
"We are hosting a lot of events here... For instance, the 'Red Bull Speed Street' event, which is likely to see participation of a hundred thousand people in Delhi tomorrow, is one of our biggest marketing tool," he said.
Red Bull has struck a barter deal with retail chain Big Bazaar, under which the firm will organise promotional events at Big Bazaar stores and its cars will sport Big Bazaar logo during the events.
Besides, Red Bull is also carrying out a lot of activities both on ground and social media "to create the buzz around the brand and make people more aware of it," he added.
When asked about the marketing investment being made in India, he did not divulge details. Neither did he comment on the expected impact after the events on the brand value.
However, he said: "Last year, globally, Red Bull created media value worth $1.2 billion through marketing around the F1. This year, it will only get larger."
Media value is calculated on the basis of number of people participating, number of impressions across media platforms and on the basis of the visibility of the brand, he said, but did not specify the expected media value creation in India.
"It is our first time in India, so we do not know...But the excitement is high," Ward said.
Currently, Red Bull racing team is leading the F1 constructor's championships with its driver Sebastian Vettel and defending world champion set to win the title for the second time.
The Indian leg of the F1 World Championships race will be held on October 30.
