Revolt Energy Drink: Marketing Plan for India - Business Startup

This report presents a comprehensive marketing plan for launching Revolt, an energy drink, in the Indian market. It includes a PESTEL analysis highlighting the political, economic, social, technological, environmental, and legal factors influencing the business. The product, Revolt, is described as a sugar-free energy drink available in cranberry, strawberry, and lemon flavors, packaged in recyclable materials. A market opportunity analysis reveals the potential of the Indian energy drink market, currently dominated by international brands like Red Bull and Monster. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats for Revolt. The report also includes a competitive analysis of Red Bull, Coca-Cola, and Monster, along with a target market segmentation focusing on the 18-24 age group. The pricing strategy aims to compete on cost, offering a high-quality product at a lower price point. The distribution strategy involves a pull strategy and contracts with distributors in each region of India. The promotional plan includes investing in sports teams and hiring a brand ambassador. This detailed plan outlines the strategic and operational elements for a successful business launch, and Desklib provides access to similar resources for students.

Revolt Energy Drink – Marketing Plan
MANAGEMENT – 940429
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Revolt Energy Drink – Marketing Plan
Table of Contents
Introduction.......................................................................................................................3
Business Plan...............................................................................................................................3
Analysis of Current Market Situation.................................................................................3
PESTEL Analysis............................................................................................................................3
Product Description...........................................................................................................5
Market Opportunity Analysis.......................................................................................................5
SWOT Analysis.............................................................................................................................6
Competitive Analysis..........................................................................................................7
Competition Matrix......................................................................................................................7
Target Market and Segmentation......................................................................................7
Pricing Strategy.................................................................................................................8
Location/Distribution.........................................................................................................8
Promotion..........................................................................................................................8
Marketing Plan Summary..................................................................................................9
References.......................................................................................................................10
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Revolt Energy Drink – Marketing Plan
Introduction
Business Plan
The spread of globalization and liberalization has had a huge impact on the global business
environment. The entire world has become a potential market for creating demand and supply
for diverse products and services and a huge opportunity for aspiring entrepreneurs. Even
after so many years of globalization, there are a number of international markets that have a
huge untapped potential, which can be used by companies to increase their reach and
business opportunities. The Indian subcontinent is one such market where there is a lot of
potential for good quality products and services, especially when it comes to food and
beverages because a large number or Indians are adopting a fitter lifestyle than their ancestors
and are demanding healthier eating and drinking options.
One of the best business opportunities, at present, is in the field of energy drinks. India has a
lot of untapped potential when it comes to energy drinks because the only players in the
Indian market are Red Bull and Monster, which have a huge market share and have a higher
bargaining power than the customers because of the absence of a local competitor in the
country. Therefore, this report has been prepared to provide a greater insight into the business
plan of starting an energy drink brand in India.
Analysis of Current Market Situation
PESTEL Analysis
Political:
- A stable government  India is one of the most powerful countries in the world and
the largest democracy where the political environment is highly stable, which highly
promotes growth of business organizations.
- Corruption  Like most developing countries, India too experiences high levels of
corruptions, which can have an adverse impact on the business of a company
(Rahman, 2018).
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Revolt Energy Drink – Marketing Plan
- Promoting FDI and startups  Under Narendra Modi, The Prime Minister of India,
the government has been laying a huge stress on FDIs and has been promoting
business startups to strengthen the economy of the country even more.
Economic:
- 7th largest economy in the world
- Cheaper resources  India, being a developing country, has a lot of resources
available at cheaper rates. This factor can make achieving profitability for business
organizations easier (Bhasin, 2018).
Social:
- Population of the country  India has a population of 1.2 billion, which is a huge
market for any potential business startup.
- High unemployment makes labor available at cheaper rates (Dart Consulting, 2016).
- A highly diverse market
- High standard of living
Technological:
- 3rd most advanced nation in terms of technology
- Has a lot of potential for outsourcing technological processes
Environmental:
- In India, there have been a lot of environmental challenges that have alarming the
government and the country is becoming increasingly aware about sustainable
business practices, which is creating a demand for companies to go green.
Legal:
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Revolt Energy Drink – Marketing Plan
- Business organizations in India are governed by the Companies Act, 2013 and there
are a number of other laws pertaining to labor that can have an impact on the
operations and processes of a company.
Product Description
The product being planned for the startup is an energy drink that would be available in the
Indian market under the name of Revolt. Revolt will be available in three different flavors i.e.
cranberry, strawberry and lemon. The main ingredients of the energy drink will be:
- Caffeine, around 200mg in each serving
- Taurine
- Guarana
- Ginseng
- L-carnitine
- Antioxidants
- Multivitamins (Caffeineinformer, n.d.)
To add more value to the product, the company is planning to make the drink completely free
of sugar. Revolt is being planned to be distributed in completely recyclable bottles and cans
in the market and a bottle as well as a can would hold 300ml of the energy drink. The bottle
and the can will be holographic black in color while the logo of the company and the name of
the energy drink will be printed in a combination of white and red color. The nutritional facts
will be printed on the backside of the can and the bottles and the company is planning to sell
a minimum of 1 million units within the first year of its startup by offering higher quality
drink to the customers at a competitive prices.
Market Opportunity Analysis
As discussed above, the Indian subcontinent is one of the best suitable locations for business
startups and in terms of the energy drink markets, the Indian market was valued at 155
million USD in 2017 and was also expected to register a growth of around 9% by the end of
2023 (Mordorintelligence, 2017).
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Revolt Energy Drink – Marketing Plan
India has seen a steep rise in the demands and consumptions of energy drinks, especially by
adolescents and the rising living standards in the country are promoting the growth of energy
drinks in the market. With an increase in social gatherings and long working shifts in the
country, a demand for non-alcoholic and caffeinated beverages has been on an increase,
which is definitely going to be a positive point for the business startup.
Currently, the market of the country is being dominated by major international brands like
Red Bull, which held 69% of the market share during 2013. Other major players in the
market are Coca-Cola, Monster Beverages, Spitz KG, Hector Beverages, Heinz India, Dabur,
etc.
SWOT Analysis
A SWOT analysis of the business startup, on the basis of the information discussed above, is
given below:
Strengths:
- Being a startup based in India itself, the company will have a price advantage over the
other players present in the market (Dudovskiy, 2016).
- Adopting green business practices and making use of recyclable material only will be
a value proposition for the customers.
- Where most of the energy drinks contain sugar, the energy drink being planned by the
startup will be completely free of sugar and will appeal to fitness enthusiasts even
more
Weakness:
- Being a medium sized startup, the company might not have as many resources as are
available to other competitors
- As the product would be new in the market, the company will have to put in extra
efforts for its promotion in the local market
Opportunities:
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Revolt Energy Drink – Marketing Plan
- Most of the energy drinks available in India are available at higher prices, which
limits their sales. Pricing of the energy drinks can prove to be an opportunity for the
startup
- With the government of the country promoting FDI and local manufacturing, the
company will be able to kick-start its business easily
- The absence of sugar free energy drinks in the market leaves a huge untapped
potential for new business startups
Threats:
- Presence of multinational companies in the market, who have already achieved a large
number of loyal customers
- Lack of market reach and demand in the initial stages
- A part of Indian population opposes the consumption of energy drinks
(Fernfortuniversity, n.d.)
Competitive Analysis
The three major competitors to Revolt, in the Indian market, will be Red Bull, Coca-Cola and
Monster Energy drinks. Over a period of time, Red Bull, Coca-Cola and Monster have
established a huge customer base in India as a result of their prolonged presence in the
market. These brands had entered the Indian market when the Indians did not even know
about the concept of energy drinks. Hence, these brands are highly common amongst the
Indians, which would obviously be a point of concern for the business startup.
The market of energy drinks in India has not been highly competitive because of lack of local
players, which has also become one of the reasons for Red Bull and Monster to sell their
products for over 2$ per can while companies like Coca-Cola have priced their products
much lower than the other brands. The competitors in the market serve a huge customer base,
which range from employee class to adolescents and fitness enthusiasts but the energy drinks
in the market are not available in large number of varieties or flavors. Mostly, the competitors
in the Indian energy drink sector have a huge advantage of being associated with the business
for a very long time and have developed internal strengths over their life span.
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Revolt Energy Drink – Marketing Plan
Competition Matrix
Price
Advantage
Internal
Strengths
Product
Differentiation
Market
Reach
Customer
Loyalty
Red Bull     
Monster     
Coca-Cola     
Target Market and Segmentation
Market segmentation differs for different products and services. For an energy drink, the
market can be segmented on the bases of age, income, education and lifestyle. On the basis of
age, the primary target market to be focused will be mainly the population ranging from 18 to
24 years of age because individuals in this age group are highly active and require more
energy to carry out their routine tasks (Market Watch, 2018). People in this age group also
have medium levels of incomes and can afford energy drinks on regular basis. Further, people
in this category are also more fitness conscious. Hence, they have a greater demand for non-
alcoholic energy drinks. The secondary target market will be the people ranging between 14-
18, who are dependent on their parents but like to enjoy non-alcoholic beverages (Bartleby,
2018).
Pricing Strategy
As discussed above, the Indian energy drink market does not experience many players and
variety of products. As a result, energy drink brands in India have been ruling the market by
sticking to product differentiation strategy, which has enabled them to price their products on
the higher side. The pricing strategy of Revolt is clearly to dominate the market by competing
the existing brands on the basis of cost, which can also be termed as a price differentiation
strategy. By ensuring local operations, the company is aiming at offering higher quality
products at a price of 1.2$ per can and 1.5$ for a bottle, which is much cheaper than the
products being sold by Red Bull or Monster. Even though Coca-Cola offers cheaper products
in the market, the product sold by the company contain high amounts of sugar while the
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Revolt Energy Drink – Marketing Plan
caffeine content is limited to 35mg approximately. Thus, Coca-Cola will offer negligible
competition to the Revolt energy drink.
Location/Distribution
The company is planning to use a pull strategy where it would rely heavily upon advertising,
promoting and other forms of communication to develop a demand for its products in the
Indian market. The startup will be launched by signing distribution contracts with four
different distributors, i.e. one in each part of India (South, North, East and West). This would
result in an indirect distribution channel because of the presence of intermediaries in the
system (Singh, 2015). The presence of intermediaries in the system would ensure higher
reach in the market and the intermediaries will act as stakeholders in the business and would
try their best to maximize the sales of the energy drinks (Macula, 2018).
Promotion
As discussed above, the startup will be relying on pull strategy, which will ensure a greater
focus on advertisements and promotion. To promote Revolt in the Indian market, the
company is planning to invest in a sports team and hire one of the top Indian cricket players
to act as a brand ambassador for the company (Bergstrom, 2017). The company wants to
promote its energy drink by showing a greater presence in all types of minor and major sports
events taking place in the country and also by tying up with major supermarket chains in
India. The company is planning to promote its energy drink by pushing it to the shelves of
gyms, fitness centers, health clubs, etc. where it is easier to reach the primary target market.
To promote the product, the company is planning to provide free samples at such places and
ask the customers for their feedbacks. The company is also planning to offer introductory
discounts on bulk orders to increase its presence in the market and to promote its products
with an ambitious strategy.
Marketing Plan Summary
The marketing plan developed for Revolt is a highly efficient one because it has been
developed by conducting a thorough analysis of the Indian energy drink market. The
marketing plan of the product is also efficiently planned because it will definitely be able to
make the product reach its target markets in the best possible manner and promote it at places
where it would have the maximum impact.
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Revolt Energy Drink – Marketing Plan
The evaluation of the plan will be done on a monthly basis by checking the difference in
sales, market reachability, repeat orders placed by the distributors, etc. A major advantage to
the company will be its ability or its strategy to provide a stiff competition to its competitors
on the basis of price. The product will also offer tough competition to the competitive
products because it will be completely sugar free and would help the target market in
achieving their fitness goals.
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Revolt Energy Drink – Marketing Plan
References
Bartleby. (2018, January 13). Market Segmentation for Hyper Energy Drink. Retrieved
March 2019, from www.bartleby.com: https://www.bartleby.com/essay/Market-
Segmentation-for-Hyper-Energy-Drink-PK7NUFPBZRFS
Bergstrom, B. (2017, December 21). Red Bull Marketing Strategy: What You Need to Know
(And How to Copy It) 75. Retrieved March 2019, from coschedule.com:
https://coschedule.com/blog/red-bull-marketing-strategy/
Bhasin, H. (2018, January 14). PEST analysis – Political, economical, sociological,
technological. Retrieved March 2019, from marketing91:
https://www.marketing91.com/pest-analysis/
Caffeineinformer. (n.d.). Energy Drink Ingredients and What They Do. Retrieved March
2019, from Caffeineinformer.com: https://www.caffeineinformer.com/energy-drink-
ingredients
Dart Consulting. (2016, January 30). STARTUPS INDIA – UPDATED PESTLE ANALYSIS.
WILL THE NEW STARTUPS ANNOUNCEMENTS BECOME A BIG BANG FOR
STARTUP IN INDIA? Retrieved March 2019, from Dart Consulting:
https://www.dartconsulting.co.in/market-news/startups-india-updated-pestle-analysis-
will-the-new-startups-announcements-become-a-big-bang-for-startup-in-india/
Dudovskiy, J. (2016, June 24). Red Bull SWOT Analysis. Retrieved March 2019, from
research-methodology.net: https://research-methodology.net/red-bull-swot-analysis/
Fernfortuniversity. (n.d.). Red Bull SWOT Analysis / Matrix. Retrieved March 2019, from
fernfortuniversity.com: http://fernfortuniversity.com/term-papers/swot/1433/1176-
red-bull.php
Macula, A. (2018, May 25). 4 Benefits of an Indirect Sales Channel and How to Leverage
Them. Retrieved March 2019, from qollabi.com: https://qollabi.com/blog/benefits-
indirect-sales-channel/
Market Watch. (2018, November 10). Sports and Energy Drinks Market Segmentation
Analysis, Characteristics, Technological Progress Insights 2027. Retrieved March
2019, from www.marketwatch.com:
https://www.marketwatch.com/press-release/sports-and-energy-drinks-market-
segmentation-analysis-characteristics-technological-progress-insights-2027-2018-11-
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Revolt Energy Drink – Marketing Plan
Mordorintelligence. (2017, December). India Energy Drink Market -Market Shares,
Forecasts and Trends (2018 - 2023). Retrieved March 2019, from
mordorintelligence.com: https://www.mordorintelligence.com/industry-reports/india-
energy-drink-market
Rahman, M. (2018, February 16). PESTEL analysis of India. Retrieved March 2019, from
howandwhat: https://www.howandwhat.net/pestel-analysis-india/
Singh, P. (2015, October 12). Distribution Decisions. Retrieved March 2019, from
Energyadro: http://energyadro.blogspot.com/2015/10/distribution-decisions-
distribution.html
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