Abstract
The functional drink market in The Philippines is driven by the more active lifestyles (GMID, 2005). "A loyal group of enthusiasts remain addicted to sport, and on the other end of the functional drinks consumer group, laborers and other blue-collar workers have continued their support for energy drinks." Due to their increasing popularity, the market grew by a 13% in 2005, compared to 11% in 2004. Moreover, the market can be divided in four sub sectors, as shown below, where that of an elixir (approach taken by Red Bull) still appeared absent in recent years. In The Philippines, the attractive profitability of the market leads companies such as Anheuser-Bush, Carlsberg, Coca-Cola, Pepsi or Cadbury-Schweppes to compete with Red Bull. Large retailers like Asda (Wal-Mart) were also attracted by the market. In conclusion, the market has several characteristics that become key components in the development of a marketing Plan for Red Bull. Namely: More active lifestyles spell faster growth for functional drinks; Sports drinks shift to cheaper plastic bottles; Brand loyalty observed in energy drinks amid new product launches; Energy drinks in powder concentrate format threaten the more expensive RTDs, pulling prices down; and cheaper packaging and smaller pack sizes expected to drive growth over forecast period (GMID, 2005).
