Dissertation Proposal: The detailed exploration of the global energy drinks market with a primary focus on the marketing strategies of Red Bull.
Supervisor: Len Tiu Wright
Page 1: Title Page
Page 2: Contents
Page 3: Title, Rationale for study, Introduction, Research question, Significance
Page 4: Background, Aims and Objectives, Literature review
Page 5: Literature review
Page 6: Literature review continued, Methodology
Page 7: Methodology continued, Time table, Gantt chart
Page 8: Bibliography
The detailed exploration of the global energy drinks market with primary focus on the marketing strategies of Red Bull. Rationale for Study
The main aim of this dissertation is to give an extensive report of how Red Bull became and maintained their market leader status through their various marketing strategies. It will also explore the energy drinks market as well as the soft drinks market with a primary focus on the company Red Bull. I will also detail consumer behaviours and buying patterns by doing primary research such as an online survey. This will then build on the secondary data about Red Bull and its marketing strategies as well as concepts from the academic literature about components and strategy. I will be researching this area as it is an extremely competitive market with good levels of growth. Red Bull as a company owe their success to the marketing strategies used to communicate with their target customer base and not on the quality of the product inside the can. ‘Red Bull would never have made it out of the initial testing stage. Despite this, Red Bull has built a strong brand by communicating the product's functionality through their marketing.’ For this reason focusing on Red Bull appealed to me as I find it fascinating that a company whose product doesn’t perform well at the blind taste test stage can still out perform their competitors on the global and domestic stages. Research Question
Why and how has Red Bull maintained its status as the industry leader in the energy drink market and what strategies has Red Bull employed to consolidate its position? Significance
The energy drink market is a constantly evolving and dynamic market with high levels of competition and low barriers to entry. It is also a market that is experience good levels of growth worldwide that are expected to continue. ‘More than $40 billion sales of sports and energy drinks were recorded in 2010. The global sports and energy drinks market volume is estimated to grow at a CAGR (compound annual growth rate) of more than 3% every year. The value of the market was more than $38 billion and is expected to cross the $52 billion by 2016. The largest share was contributed by North America with over 37%; followed by Asia-Pacific with over 30%. Europe is expected to show a rapid growth amongst the geographies. Several markets are dominated by regional players but "Red Bull" and "Gatorade" are the undisputed market leaders in the energy and sports drinks respectively. The global market for sports and energy drinks is expected to cross $52 billion in value and 13 billion litres in volume by 2016.’
The first ‘energy drink’ was released by a Thai company called Taisho Pharmaceutical in 1962 and went by the name Lipovitan D. This product was the inspiration behind the Red Bull product created by Dietrich Mateschitz in 1984. ‘Dietrich Mateschitz fine-tuned the product, developed a unique marketing concept and in 1987, started selling Red Bull Energy Drink on the Austrian market. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category.’ In 1992 Red Bull commissioned their first advertising campaign, it was created by a company called ‘Kastner & Partners and established the beginning of the Red Bull cartoon campaign strategy: a well-known character, event or subject,...
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