Report on Redbull

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Report on Red Bull

Word Count: 2053

Executive Summary
Red Bull has dominated the largest market share of energy drinks around the world. The content of this report is to evaluate Red Bull Company with regard to success factors of its energy drinks by analyzing its target market, positioning and marketing mix strategy. Furthermore, a 3-year strategy is made based on earlier analysis, in which Red Bull should extend its brand and develop new products.

Table of Contents

1. Background of Red Bull……………………….……..……………………………………..4 2. Critical Success of Red Bull ………………………….………………...……………….…4 2.1 STP Strategy……………….……………………………..………………..……………4 2.1.1 Target Market …………………………………………………………………..4 2.1.2 Positioning…………………..……………………………………………...……4 2. Marketing Mix Strategy…………………………………………………………………5 2.2.1 Product……………………..................................................................................5 2.2.2 Packaging……………………………………………….………………………..5 2.2.3 Promotion………………………………………………...……………………...5 3. 3-years Marketing Strategy………………………………………………………………...6 3.1 Background of UK Market………………………..…………….………………………6 3.2 Competitors…………………………………………………………..…………………..6 3.2.1 Analysis of Key Competitors………………………………………….……......6 3.3 Weakness of Red Bull’s Current Strategy ……………………………………………..6 3.4 Marketing Objectives in 3 Years………………………………………………………..6 3.5 Action……………………………………………………...…………………………..….7 3.6 Marketing Mix Strategy …………………………………...…………………………....7 3.6.1 Product ……………………………………..…………………………………....7 3.6.2 Promotion ……………………………………………………….……………....7 3.7 Brand Building ………………………………………………………………………..…8 8. Brand Extension ……………………………………………………..………………......9 4. Conclusion……………………………………………..…………….…….…………….. ...10 5. References…………………………………………………………………….……….…….11 6. Appendix …………………………………………………………………….………….......14

1. Background of Red Bull
Red Bull Company was established in 1984 by an Australian citizen, Dietrich Mateschitz (Red Bull Company). In 1987 the Red Bull energy drink was successfully launched into the market. Since its inception, Red Bull energy drink has become a popular drink in diverse markets like the United States, Europe, Asia, North America, and the rest of the world (Red Bull Company). The wide popularity of the drink can be linked to the unique and aggressive marketing strategies the company has adopted for its markets in over 100 countries (Duff, 2011).

2. Critical Success of Red Bull
2.1 STP Strategy
2.1.1 Target Market
According to Jobber (2010), to choose which market to enter is very critical in marketing strategy. Market attractiveness and the company’s ability to compete in the market should be evaluated. Red Bull has segmented and targeted specific markets based on demographic, geographic, psychographics and behavioural factors (Pride & Ferrell, 2006). The company has been able to reach and serve the UK soft drink market by targeting the young population: typically male aged between 16 and 29 years old who are situated in cities and urban centres, as well as interested in extreme sports, adventures and challenging entertainment activities.

2.1.2 Positioning
The aim of positioning is to create and keep a distinctive place for a company and its products (Jobber, 2010). Red Bull’s market position in the UK market is derived from the strong brand name the company’s products hold in the market (Arlidge, 2004). Red Bull energy drinks are positioned in the market as strong, fresh and superior quality and having unique advantages. The image message is expressed through premium pricing, which delivers benefit and promise that other drinks cannot offer (Cheryl Glenn, 2011). The average price of a Red Bull can sold in UK market is £1.05, which is higher than its rivals’...
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