FIVE-YEAR MARKETING PLAN
Table of Contents
1. Executive Summary
2. Company Descriptions
Red Bull is an energy drink found by Dietrich Mateschitz in Austria in 1984 and began to sell there in 1987 with special marketing strategy, which opened up a new product category in the world in the meantime. Red Bull now contains four types including the original Red Bull energy drink and the other one of sugar-free, the Red Bull energy shot and Red Bull Cola. With increasing demands of Red Bull, it soon expanded to more regions leading to more than 162 nowadays. In Hong Kong, Red Bull energy drink has been available since 1999.
Red Bull believes its unique marketing concept can conquer the world. This marketing plan outlines the Company marketing strategies as follows.(10)
3. Strategic Focus and Plan
Three aspects of corporate strategy that affect the marketing plan are: i) the mission, ii) goals, and iii) core competency of Red Bull.
The mission of Red Bull is to be a premier marketer that its products are distributed across the world (Europe, US and Asia). Hong Kong is the stepping-stone to China helping achieve the mission.
* To be the leading position in selling functional beverages in Hong Kong * To rebuild customer relationship
Core Competency and Sustainable Competitive Advantage
In terms of core competency, Red Bull has its well-known sports team and unique appealing wings team as promotion strategies which already gave an impressive image to the public and its slogan is also well-known. Furthermore, the scientific reports of functions about consuming Red Bull helps convince the public as well.
4. Situation Analysis
By applying a brief SWOT (strengths, weakness, opportunities, threats) analysis, the current environment will be depicted.
SWOT Analysis (2)
Figure 1 SWOT Analysis for Red Bull
Internal Factors| Strengths| Weaknesses|
| * No.1 world market leadership * very famous brand name * Sole supplier ensures high quality * High-quality and high-price product as superior goods| * Above average price among energy drinks * Lack of innovation * Narrow range of products| External Factors| Opportunities| Threats|
| * Intensive promotion through different methods * Consumer recognition through organising massive sports events * Distinctive name| * Great health concerns by the general public * Not patenable; * competitors can attempt to duplicate the product * acceptance by the Chinese is low|
In the Company’s favour internally are its strengths of well-known brand identity and its leadership in selling energy drinks that provided a fundamental base for Hong Kong. The favourable external factors include launching an exclusive promotion like Formula1 helps to boost up the brand and consumer awareness.
Among unfavourable factors, the main weakness is the high price in selling the product. Threats include the great health concern by the public when they consume Red Bull energy drinks that may lead to easier shift of other brands.
Industrial Analysis: Trends(9, 10)
There are statistics showing the increasing consumption of functional drinks. For instance, Otsuka Pharmaceutical was the leadership of Sport and Energy Drinks with 46% off-trade volume share in 2010 which implied an increase from 2009 Competitors in the energy drink market.
Competitors in functional drinks market (6)
The main competitors of functional beverage sellers in Hong Kong are Pocari Sweat (38%), Lucozade (35%), Red Bull (18%) and Lipovitan D (less than 9%)
Dietrich Mateschitz has been advised by the highly groups of a marketing firm which created the buzz marketing plan, an unique marketing strategy of driving mini-coopers to give samples to target nightclubs and students. This has been proven to success that encourage them to give out a try and aroused the...