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Strategic Marketing Plan for Red Bull more
by Elvis Asiedu
"
6,696
TABLE OF CONTENT
PAGE NUMBER
Title Page
SSRN Declaration
Table of Content
Introduction
Research Methodology
MARKETING AUDIT
6-12
Internal Analysis
External Analysis
PESTLE Analysis & the Macro-Environment
SWOT Analysis
MISSION AND VISION & OBJECTIVES (SMART)
13-14
Mission statement
Vision statement
Strategic objectives
KEY ISSUES & FINDINGS FACING RED BULL
15-16
Strategies for Market growth
17-18
Strategic Recommendation
19-20
SEGMENTATION, TARGETING AND POSITIONING
21-23
Segmentation
Targeting
Positioning
Evaluation of Success
23
Ethical Issues
24
References
Appendices
25-27
28-30
MARKETING MANAGEMENT
Page 3
INTRODUCTION
For a successful business, a marketing plan plays a major role. It is a part of the
bigger business plan. The marketing plan helps the business to focus on the goals
and objectives. It varies depending on the type of business and the objective on
which it focuses. Before designing the marketing plan the marketing manager needs
to accumulate enough information about the competitors and the customers so that
they can target the right market segment with appropriate strategy (Nijssen and
Frambach, 2001). See fig 1.0 for more details of Red Bull.
TYPE
Energy Drink Company
MANUFACTURER
The Red Bull Company
COUNTRY OF ORIGIN
Austria
FOUNDER
Dietrich Mateschitz
YEAR INTRODUCED
1987
AREA SERVED
Over 166+ Countries
PRODUCT IMAGE & NAME
Whats Inside
Caffeine + Taurine + B-Group Vitamins +
COLOUR
Red-Ashe-Blue
Sucrose & Glucose + Alpine Spring Water
When to Drink
FLAVOURS
Blueberry, Cranberry and
On the road, at lectures & study session, and at
Lime
work.
How it works
EMPLOYEES
8,294
REVENUE
4.25 billion euros
Red Bull energy drink is a functional beverage
providing wings whenever you need them.
Exclusive Products List
HEADQUARTERS
FuschlamSee, Austria
Original Red Bull energy drink
Red Bull Sugar Free, Zero calories,
The Red Bull Edition (Cranberry), Silver Edition
(Lime), Blue Edition (Blueberry)
MARKETING MANAGEMENT
Page 4
RESEARCH METHODOLOGY
Research methodology is defined as the overall approach that the research process
will take (Collis &Hussey, 2003). There are three approaches which can be followed
by a researcher while conducting a research work. These three approaches include
qualitative, quantitative and a mix of both. It is argue that, research aim decides what
needs to be achieved with the conduct of a study and therefore keeping in view
objectives to be achieved; the researcher adopts quantitative research approach
(Bhattacharya, 2006 cited in Asiedu, 2013).
Quantitative research work involves testing quantifiable information which is
gathered either through primary or secondary sources of information. To realise the
objectives of this research, the researcher decided to rely on secondary source of
information.
In using the secondary sources, the researcher consulted variety of books, journals,
and articles. Besides, national and international data searches at Oxford City-Centre
Library-Oxford, BPP Library-London, Oxford University Library-Oxford, Oxford
Brookes Library and relevant abstracts and indexes were consulted.
MARKETING MANAGEMENT
Page 5
MARKETING AUDIT
This phase provides analysis on current position and opportunities of Red Bull using
3Cs analysis, PESTLE, and SWOT analysis (see appendix 2). Authoritative writers
like Kotler (1977), define marketing audit as an instrument to judge an organisations
overall commitment to a market orientation. Marketing audit helps in increasing the
profitability of the company (Kotler, 1999).
INTERNAL ANALYSIS
i. The Company
The company analysis under the 3Cs deals with the evaluation of the companys
objectives, strategy, and capabilities (Wikipedia, 2013). This helps the company to
indicate the strength of its business model, whether there are areas for improvement
and how well the company fits the external environment.
The Red Bull company has always portray a simple but strong brand image with its
well-known slogan; Red Bull gives you Wing & Ideas. The product is appreciated
worldwide
by
top
athletes,
students
and
highly
demanding
professionals
(redbull.com, 2013). Red Bull relies on both traditional and non-traditional ways like
sponsoring well-known athletes outside the extreme sports industry and host
exclusive parties for rock-stars to build their brand image and equity (Bodner, 2011).
In order to save many miles of transport and resources, Red Bull has instituted what
they termed as wall-to-wall production. This strategy helps them to manufacture and
fill cans wherever their branch is. According to their own figures, more than
7,000,000km of truck travel is saved every year. These cans are built with aluminium
MARKETING MANAGEMENT
Page 6
and now the cans are weighed 60% less than a decade ago and it is 100%
recyclable (redbull.com, 2014).
Red Bull has sold +5.3 billion cans as of 2013 worldwide, representing an increase of
(+3.1%) against that of 2012 and has exceeded 5 billion euro mark turnover for the
first time. Red Bulls turnover has increased from EUR 4.930 billion to EUR 5.040
billion (energydrink.redbull.com, 2014). The company has won both the constructors
and drivers formula 1 championship for four successive years. It has 9,694
employees in 166 countries as of 2013 as compared to the end of 2012 when they
had 8,966 employees in 165 countries.
It has seen a 60% rise in volume sales over 2007-2012 in parallel with a 64% rise in
volume sales during the same period (Price, 2012). The combined value of sports
and red bull sales in 2012 was around 1.2 billion and red bull accounted for over
80% of this figure at around 1.0 billion (Price, 2012). Red bull has outstanding
performance as of 2013 in terms of sales, revenues, productivity and operating
profits. These positive results can be attributed to the outstanding sales in the red
bull market shown on the tab 2.0 below. These outstanding sales happened as a
result of efficient cost management and the on-going brand investment;
Red Bull Market (Countries)
Sales in percentage (%)
India
+55%
Japan
+32%
Turkey
+18%
Scandinavia
+16%
Russia
+13%
Brazil
+12%
MARKETING MANAGEMENT
Page 7
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