Red Bull Strategic Plan

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WHERE ARE WE?
SWOT:

Strengths:
Market leader; brand ambassadors;synonymous with energy and getting a boost;events; Youth brand managers; extreme sports association and premium image

Weaknesses:
limited product range; expensive.

Opportunities:
new youth as a target market (16-24); adapt for older matured "Y generation"; events; viral marketing; youth have a disposable income and are easily influenced by peers and trends; "smart energy drinks" energy drinks mixed with a 'smart drink' (made from a mix of fruit juices, vitamins, herbal and amino acid supplements.

Threats:
ever-growing energy drink market, loss of original customer base as they mature, negative publicity - rumours red bull contains bull sperm, health concerns - ingredient taurine, will the youth adopt the brand?, youth have a lack of purchasing power and ready-made smart drinks.

Energy drinks:
Are stimulants
Prevent sleep
Promote mental alertness
Improve physical performance
Increase endurance

Brand Architecture:
Red Bull is a Branded House. A Branded House is, “A centrally focused group of brands that are clearly connected and coherent. A very large Family of Brands” as defined by http://stealingshare.com/brand_resources/glossary.htm. Red Bull isn’t a large family of brands; it consists of the original drink, a diet version and a cola drink (not yet available in South Africa) but they are clearly connected and coherent and obviously not a house of brands, which is “a business that has multiple brands that are not necessarily part of the same family or are independent from each other and the Parent Brand” (http://stealingshare.com/brand_resources/glossary.htm).

Visual identity system:
The logo and the bulls from the logo.
Red, blue, silver and a little yellow.
The cartoon-style used in their advertising.

Tagline:
Red Bull gives you wiiings!

What does the brand stand for?
Brand values:
Youthfulness
Passion
Energy
Activeness
Adventure seeking
Spontaneity

Brand Essence:
Energy.

Brand Personality:
Youthful
Energetic
Adventure seeking
Innovative
Nonconformist
Party loving
Witty
Charming
Unpredictable
Intelligent

Differentiating factor:
Things Red Bull has to offer that other energy drinks don’t: •The brand personality.
Their involvement in extreme sports, events, music and youth culture. •Youth brand managers: Students who drive Red Bull branded cars and give out free cans of Red Bull to people who are in need of energy. They promote Red Bull on university campuses and are encouraged o throw parties at which cases of Red Bull are distributed. These Youth Brand Managers report back to Red Bull providing them with a low cost form of market research data and an insight into today’s youth. •Their approach to marketing:

oNo print, only TV/radio adverts because this creates interest and momentum and has greater impact oBuzz-marketing/ word of mouth, generated by controversial adverts, youth brand managers and guerrilla marketing. oInvolvement in events, not only sponsoring but also hosting and creating events that appeal to their target market.

What is the brand positioning?
Market Position:
Market leader: Red Bull is the most popular energy drink on the market. Red Bull was the first energy drink, providing a solution to a gap in the market for a drink that supplies the consumer with energy.

Competitors:
Direct competitors:
Energy drinks from the ever-growing energy drink market. South African examples are Play and V. International examples are Coca-Cola’s Mother and Pepsi’s Amp. Indirect competitors:
Other functional drinks, such as:
oSports drinks
oVitamin and mineral enriched drinks
oACE drinks (fortified with A,C, or E antioxidant vitamins) oWellness drinks
oNutraceutical drinks
oHerbal drinks
Premixed alcoholic drinks, for example Smirnoff Storm, because vodka and Red Bull is a big selling point for Red...
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