Sting energy drink success story: The PepsiCO profit machine

Sting energy drink success story

Sting Energy Drink success story traces back to its popularity in Vietnam in 2002, even before its introduction to the Indian market in 2017. Despite PepsiCo’s earlier setback with SoBe, their 2017 reentry, in collaboration with Varun Beverages, brought about the triumphant launch of Sting.

Priced strategically at Rs. 30 for 250 ml and Rs. 50 for 500 ml, Sting positioned itself attractively between high-end brands like Red Bull and more economical options. The acquisition of Rockstar Inc. by PepsiCo in 2020 further enhanced Sting’s appeal, with its fizzy, caffeine-packed formula standing out in the competitive energy drink market. This collaborative success highlights the potency of teamwork in creating a distinct and popular beverage.

How Sting Energy Drink entered in Indian market

Red Bull was the first energy drink to come out in India in 2009. It cost more than 100 rupees at the time, and it still does now. Then Monster Energy came out in 2014, with a price that is close to but a little lower than Red Bull.

Sting energy drink success story

But in 2015, the government of India caught on to Monster Energy and banned it because it had ingredients that weren’t on the list of allowed ingredients in the Food Safety and Standards Regulation. This left a hole in the Indian market for energy drinks, which Pepsi (the parent company of Sting) saw as a chance to grab control of the energy drink market.

For a normal person, Red Bull, Monsters, etc. used to be very expensive. But physical activities are going on. There is sweating, so people need energy drinks at all costs! And while seeing this demand in the market, Pepsi launched its own energy drink brand, Sting.
And today, in 2024, Pepsi, 7Up, Mountain Dew, and Mirinda, by leaving all the brands of Pepsico behind, Sting has become the fastest-growing brand of Pepsico. But the question is, how did all this happen? What did Sting do to become such a big brand in such a short time?

So even before Sting came to India, it was popular in Vietnam back in 2002.

In India, PepsiCo tried an energy drink called SoBe, but it didn’t do well and was taken off the market quickly. In 2017, they again entered the energy drink market alongside Pepsi, partnering with Varun Beverages (NSE: VBL) to make Sting.

When Sting came to India in 2017, it was already a big hit in Vietnam.

At Rs. 30 for a 250ml and Rs. 50 for a 500ml, Sting was priced just right as per the audience—not too much higher than Red Bull, but also not too cheap like ThumbsUp or Coca-Cola.

Rockstar Inc., which PepsiCo bought in 2020, makes a vibrant energy drink called Sting Energy. Alternative beverages fall short in comparison to this one due to its carbonated nature and exhilarating adrenaline surge. Do you want to know how it gets its power? It’s the amount of Caffine energy!

Sting is very well known, thanks to PepsiCo and the help from Rockstar. This bubbly drink is different from other energy drinks because it gives you an energy boost. With the help of PepsiCo, Sting keeps getting people’s favourites, showing that working together can make a strong and fizzy drink that stands out in a world full of competitors’ energy drinks.

Sting Energy Drink: Marketing Strategies

PepsiCo has been operating in India since 1989, so they understand Indian consumers very well. While noticing this, PepsiCo understood that if they have to make Sting a big brand, they have to make it reach every street, not just malls. So that this product can be consumed there also! But the thing is, in order to get any product sold at a shop, getting the product placed isn’t enough.
Rather, there are many business marketing factors that have to be taken care of. Like Pricing. Because before Sting came to India, energy drinks in India were seen as very premium products.

Sting energy drink success story

But if one has to sell a product in the streets and make it premium, then it won’t get sales anyhow! That’s why Pepsico didn’t focus on the premium market. PepsiCo saw that there is a mass market sub-segment that can be made in energy drinks. But there was a problem here.
And the problem was in the competitive market, like cold drinks. Introducing a new product and then making it popular was a very big challenge. But Pepsico was able to do it because it had these three special advantages. The first one is market statistics.

See, Pepsico has been running its business in India since 1989. And today, there is hardly a place in India where Pepsico products are not available. That’s why the company knew it well. Who likes what and where?

Whether it is about taste, whether it is about consumption volume, or whether it is price point, the company has information about everything. While launching its brand Sting, the company used this whole data, and there is one more thing: very few people know that Sting isn’t the first sports drink brand of Pepsico.

Because they launched an energy drink named Sobe in 2008. But it didn’t perform well in the market. In fact, have you ever drunk Gatorade?
That is also a brand of Pepsi.

Now, let’s come to the second advantage of Pepsico, which is ‘in-hand experience of a similar market’. Vietnam is a developing country like India, and the markets of Vietnam and India have lots of similarities between them.
Before introducing Sting in India, Pepsico launched Sting in Vietnam in 2002. And today, after 20 years of its launch, Sting has become a very popular energy drink in Vietnam!
After successfully mastering the Vietnam market, PepsiCo applied the same experience strategies in India to capture the Indian market.

But nothing would have worked if Pepsico didn’t have this third advantage, which is the first mover advantage’. Energy drink, which was seen as a premium product in India, has started reaching people’s hands after Sting, too, at affordable rates. And Sting is the first brand in India that has been able to do all such things. So obviously, Sting was the first mover, so it got the advantage of deciding the price of a product in the market!

You ever notice carefully all the soft drinks in India; their prices are almost the same, like 750 ml of Pepsi, Coke, Sprite, ThumpsUp, and even Mirinda. The MRP of all of them is 40 rupees. It’s not that one is selling at 40 rupees and the other one is selling at 120 rupees. It means that once the MRP is set, in most cases, other brands will have to follow the same.

Now that Sting was the first such product in this price range, Sting has set the market standard itself. When Coca-Cola launched ThumpsUp Charged in the same market, they also had to operate at the same MRP. As a result of all these strategies, Sting will still dominate the energy drink market in India in 2024.

Sting Energy Drink: Impact on Consumers

Sting has positioned itself as a carbonated energy drink that provides its customers with an immediate surge of energy.

Sting ka jhatka, instant energy” is the brand’s tagline, which has become synonymous with the brand and reflects this positioning. Sting’s target demographic consists of youthful consumers seeking an energy boost to help them get through their hectic days. The brand has established itself as a beverage that can assist consumers in sustaining their energy levels and accomplishing their objectives.

Sting has maintained a consistent brand positioning in India throughout all of its marketing communications.

See, the truth is, any soft drink or energy drink isn’t healthy for you in any way! Because it is very simple, in every energy drink, you will get these two things in very high volume! The first is caffeine, and the second is sugar. And the more you consume both of these things, the more they will harm your body! And they harm you so much that you can’t even imagine.

Even a warning is given in the advertisement for Sting. You can read. It is clearly written, ‘Not recommended for children, pregnant or lactating women, or a person sensitive to caffine. Contains high caffine. There are 72mg of caffeine per serving. It is clear that kids and pregnant women shouldn’t drink Sting. And those who are caffeine-sensitive should never drink it.

But the truth is, according to the experts, if a normal person starts drinking coffee more, he can face heart issues and his BP can rise. But see, due to the consumption of Sting, the high caffine present in Sting gives you high stimulation; your body gets energy, and within no time, your body gets addicted to an instant spike of energy! Because this is true, if you consume energy drinks regularly, then after a point in time, you will start feeling that you can’t work without them; there is no energy! And you will keep consuming bottles one after the other.

Sting Energy Drink: Success Factor

The Indian market for energy drinks grew eight times between 2017 and 2021. People there call it the “purple patch” of energy drinks! Following the lucky trend, the market share of Sting Energy Drink also went through the roof.

In 2021, its huge market share jumped from 2.5% in 2017 to 86%.

Even though they had to compete with popular brands like Red Bull, Monster Drink, Tzinga, Hell Energy, Charged by Thumbs Up, and more, it was unbelivable, isn’t it?

In 2017, Sting came out in India. Its low price made a big impact on the market right away. Sting was a lot less expensive than other energy drinks on the market. A 250-ml bottle can cost Rs. 30. People in 2017, especially young people who are often on a budget, found it to be a very appealing choice.

Sting did well because it was cheap and also because it had a good marketing strategy. The name was mostly aimed at young adults, and well-known people endorsed the product. This helped Sting get a good reputation, which made it a more appealing choice for buyers.

One more thing that makes Sting popular is that it comes in many flavors. Because Sting comes in original, citrus, and mango flavours, customers can pick the one that best suits their tastes. This is important because a lot of energy drinks on the market only come in a limited range of 1-2 tastes.

The main factor was the fall in Red Bull’s sales. Red Bull’s sales in India dropped by 21% in 2020 when COVID made it harder for the company to import the stocks. Sting took this opportunity and, without wasting a moment, stepped up to fill the gap in the market since it was made locally. Since then, it has changed everything; Sting’s sales went up by an amazing 440% right after this.

In 2021, Sting chose to collaborate with Akshay Kumar, as he is known for his fitness and actions in Bollywood. Sting made him the brand’s face. To make the drink even more famous, they started a bunch of clever ad campaigns. Sting’s setup was easy because PepsiCO and Varun Beverages were backing it up. Because they have built up such a large network over the years, you may have seen that Sting is now available in over 20 lakh stores all over the country.

Conclusion

By combining a strong blend of affordability, variety of flavours, and clever marketing, Sting Energy Drink stormed into the Indian market in 2017. By utilizing PepsiCo’s assistance and insider knowledge of the industry, Sting quickly established himself as a dominant force and amassed an 86% market share by 2021. In spite of health warnings and worries about caffeine levels, Sting’s success story supports its position as a prominent player in India’s energy drink industry thanks to its various offers, smart pricing, and ability to grab chances when the market is affected.

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