Market Positioning Strategy

This report discusses the market positioning strategy for Red Bull, a leading energy drink company. It explores the competitors positioning map, re-creating a new positioning map, and effective communication strategies for target customers. The report also analyzes the existing and new positioning strategy of Red Bull and its competitive advantages in the market.

Market Positioning
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1) Create a competitors positioning map....................................................................................1
2) Answer following questions about the competitive brand positioning strategy.....................4
3) Re-Create the new positioning map?......................................................................................5
4) Formulate and justify market re-positioning strategy for Red bull and discuss re-positioned
brand that will be communicated to target customers.................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing environment is a combination of internal as well as external aspects that
includes customers, employees, distributors, retailers internally and political, economic, social,
technological etc. considerations at external level that directly or indirectly impacts on the
marketing activities. Whereas, positioning refers to the market position of a specific brand in the
mind of customers which shows that how a company is different from their competitors. As
positioning is an effective marketing strategy that have an ability to influence the perception of
customers and helps in taking competitive advantages over their competitors. In this report, Red
Bull is chosen for the study which is an Austrian company founded in 1987 that deals in selling
energy drinks. The company is an unbeatable marketing powerhouse because they focused on
marketing efforts firstly then selling goods and services to the customers. In this report discuss
about the competitors positioning map, re-creating new positioning map, communication
channels for market re-positioned strategies. Also discuss about the existing and new positioning
strategy of Red Bull along with some requirements such as whom, why, how, what questions
regarding the competitive brand positioning strategy.
MAIN BODY
1) Create a competitors positioning map.
Marketing defined as an activity which is to be considered by a company in order to
promote as well as sell their goods or services within the target market. Mostly companies use
marketing mix strategy for the effective marketing of their items. Whereas, market positioning
refers to the products arrangements in order to occupy clear, desirable and distinctive position
regarding the competitive goods and services in the perception of customers that are targeted
(Andreu, 2015). In other words, market positioning termed as a capability to influence the
perception of consumers towards a specific brand as compared to their competitors. As the main
aim of market positioning is to establish brand or products identity so that customer perceives in
a definite way.
There are several positioning strategies such as product attributes, benefits, quality, price,
application as well as competitors. For identifying the positioning strategy of a company,
perceptual map is prepared that is used to display customer perception regarding a specific brand
or products. This kind of map allows a company to analyse how their competitors are positioned

themselves in the market and also identify the appropriate market opportunities which are
available in the market.
An example of consumer perception regarding price and quality of two brands i.e. Red
Bull and Monster within the energy drinks sector are mapped as follows:
(Source: Competitors positioning map, 2019)
Interpretation: As the company Red Bull demographically targets teenagers and college
students of 13-21 years and young adults from 21-35 years. From the above competitors
positioning map it has been viewed that the customers of Red Bull positioned the brand as per
their price and quality as they think that Red Bull offers their drinks at premium price and better
quality as compared to Monster but according to the quality of products they charge price which
satisfied their targeted customers. So the prices of products seem low as compared to their
competitors Monster.

(Sources: Brand positioning, 2020)
Increased competition among energy drinks sector translates in more choices and powers
for customers which results that brands require to be capable in order to secure an effective
position in the consumer minds (Bai, 2015). To be a preferred brand of choice, they require to fit
themselves separate from the competition through differentiation and high spot on competitive
advantages as well as able to establish strong market position itself. The above perceptual map
and positioning map shows that the major difference between the prices and quantity of Monster
and Red Bull.
About Monster: The Monster Beverage Corporation makes all types of juices, sodas
before diverging out to energy drinks in 2002. as the company considered as a strong supporter
as well as sponsor of several sports events like skateboarding, BMX, snowboarding and UFC as
well. Also, sponsor many music brands such as Wap, Laggy, Fetty and so on.
About Red Bull: The company makes Red Bull GmBH that was created in 1987 which
sponsor sports events like Red Bull Air Race, Red Bull Racing, Cliff Driving Series and so on.
As within the market of Southeast Asia, original Krating Daeng drinks still in existence that also
markets by Red Bull itself in fact with completely different flavour and packaging that creates
confusion for some people.
As brand positioning can be considered as brand differentiating within the minds of
consumers. As Red Bull has positioned as well as differentiated itself as a market leader in

energy drink sector by tailoring its messaging in order to reach their targeted customers as well
as take competitive advantages (Boora, 2019).
The main competitor of Red Bull is Monster Energy within the South African market as
both are similar in taste and has benefits over Red Bull regards price and quantity. As Red Bull is
available in different sizes like 250, 355 and 473ml and the price of 473 is 24.99 as compared to
Monster's 500ml that can priced 14.99. however, this is to be considered as a pricing strategy of
Red Bull that customer associate premium price along with the better quality, product benefits as
well as well-known brand. The success of company Red Bull as a premium energy drink is
highly based on that in which brand has positioned as well as differentiated from their
competitors (Duhé, 2018). Brand's unique design, premium pricing strategy, presence in sports
industry as well as product benefits have helped the company Red Bull as maintained long term
success and growth as well as remained competitive market position.

2) Answer following questions about the competitive brand positioning strategy.
a) What position do the company have now?
Red Bull positioned as a premium and Krating Daeng drinks as a lower cost product as
pricing was a key differentiator of that brand. Whereas, the company Red Bull are re-positioned
drinks as a trendy, first introducing at Austrian Ski Resorts and upscale drink (ANNELLA,
2017).
b) What position do they want to own?
The company Red Bull want to own their brand position in the market by increasing the
varieties of their offerings that will help in future success and growth of company along with the
competitive position and advantages. As the company already deals their offerings with quality
and premium price positioning strategy which leads their high brand value in the market and
premium base of customers. But Monster Energy drinks holds Red Bull's desired market position
regarding their price and quality so Red Bull also want to own their market position by focusing
on price and quality aspects as well.
c) From whom must the company win this position?
The company Red Bull can win their market positions from their competitors which are
Coca Cola and Monster because currently the Coca Cola holds Red Bull's desired position within
the market on the basis of their offerings varieties. In addition, the Monster Energy is also a
competitors of Red Bull because both brands are same in taste but the brand Monster Energy has
benefits over Red Bull's in relation to their drinks prices and quality.
d) Do the company have money to do the job?
Yes, the company Red Bull have enough money for positioning their brand value in the
views of customers. The real money of company is in the marketing as the name of Red Bull
becomes permanently signal in people minds whenever they think about energy drinks. The
financial position of Red Bull is strong so that gives wings selling 6.8b cans and growing at a
fast rate so the company have enough funds to positioned their brand in the minds of customers.
(Red Bull, 2020).
e) Do the company have tenacity to stay with the strategy?
No, the company Red Bull have perseverance to remain with the positioning strategy yet,
it has hold 70 to 90% market shares over 100 countries across the world. Since from last 15 years
drink has been copied by more than approx. 100 players but such businesses as Coca Cola,

Anheuser Busch have been fails to take more market shares than a Red Bull (Yang, 2017). As
the founder of Red Bull that named Dietrich Mateschitz says if we do not create market, it does
not exist. They display an uncommon tenacity when it comes to turning ideas into reality and
like a Bull, he fixing alerts with adversity as well as never gives up.
f) Does the company's creative strategy match it?
Yes, Red Bull is successful as it has never had a successful advertising campaigns in the
conventional sense of word but Red Bull brand is considered one of the most super-brands in the
entire world. Company's special department as Media house assists athletes in order to shoot
video profiles as well as create advertising and films (Kotler, 2015). As they successful in their
creative strategies of brand positioning such as increasing in offerings varieties as well as price
and quality as compared to their rivals. It is successfully happening because of their sponsorships
and sample distribution to the directs consumers hand and they targeted college parties, coffee
shops, bars, libraries etc. in order to target 18-35 years old males.
3) Re-Create the new positioning map?
In order to recreate new positioning map company focused on their brand image mainly
which will show that how brand is to be perceived differently as compared to its competitors
(Lei, 2015). Here, an example of Red Bull with other rivals like Coca Cola, Nestle, PepsiCo etc.
are considered in order to know about the market position of company with respect of their brand
image as it is also considered as a new positioning strategy for taking a competitive advantage. It
can be shown by diagram of positioning map such as:

(Source: Perceptual Map, 2019)
From the above chart it has been viewed that it is a perceptual map which shows soft
drink prices vs. brand image. As it would be interesting to figure that if customers are willingly
pay high because of their brand name which printed on their bottle (Michie, 2016). As it is
accurate in placing Red Bull in top right corner which indicating that Red Bull drinkers will
ready to pay more than other less popular brands of energy drinks.
As there is also another example of re-positioning which based on taste and variety of
offerings that also can be shown by the visual presentation that are as follows:
(Source: Perceptual Map, 2019)
From the above visual representation, it has been viewed that it was a last opinion in
order to compare if quality is effected by their quantity as per the views and perception of
customers. It was not surprised to view that Coca-Cola has a huge variety of their offerings and
still perceived in order to maintain quality of products. Reversed, nestle has less offerings and
quality is just above the average criteria. While the company Red Bull has not many varieties of
their offerings but is still perceived to be high in their quality (Moon, 2017).
After viewing that it can be said that the company Red Bull will be maintaining their high
brand image and premium pricing strategy as well as needs to improve in their variety of
offerings which helps in increasing the chances of their success and competitive position in
future also.

4) Formulate and justify market re-positioning strategy for Red bull and discuss re-positioned
brand that will be communicated to target customers.
After recreating the positioning map of Red Bull it is clear to know that to gain a
high competitive advantages within the marketplace company will be required some ways of
communication as appropriate strategies in order to convey directly to the target customers
(Percy, 2016). There are several ways or strategies such as digital marketing, public relation,
advertising, direct marketing and so on through which Red Bull will be practically able to
effectively communicate with their target audience. Some of the re-positioning strategy can
be discussed as follows:
Direct marketing: This is defined as a most effective method of communicating
directly to their customers which is to be targeted by the company Red Bull. As digital
marketing termed as an advertising campaigns which seeks to bring an action into a selected
group of customers and important aspect is that the responses of consumers is measurable.
For Example, Red Bull offers discounts to their customers at a time of online purchasing.
This kind of strategy will help in promoting goods and services directly to their target
market as well as results can be measure quickly (Rodríguez-Díaz, 2018). As it will assist in
reaching large number of customers along with a personalised message. While Red Bull
require to succeed then they should invest their time in research activity in order to analyse
customers likely convert and directs their efforts into actions that will really work.
Also, it will help in optimising the marketing budget effectively as it allows to set
some realistic and specific goals as well as increase their sales on a tight budget. This will
accomplish outcomes with a small cost of traditional advertising. In addition, it helps in
upgrading the loyalty strategies because it allows to customise promotions, mails as well as
offers in order to create an instant bond of their relationships (Sahaidak, 2017). As the
company also combine direct marketing with loyalty program in order to maximise effective
results. The digital marketing allows a company to adopt strategies as per the market
expectations and demands and responds them appropriately.
Advertising: It is a concept which lead an organisation to place its brand in an aggressive
and competent position and also can enlarge its market division in a stipulated time duration.
Some of the various types of advertisement which an organisation can acquire within its
functional unit are sales promotion, direct selling, advertisement in newspaper, make use of

social media platforms, online marketing and many more (Tyagi, 2018). With the help of these
tools, Red Bull can explore its market share or size into different new geographical regions
without any hindrances and also can easily cope with all sort of current and emerging market
competition in an innovative or improved manner. The advertisement helps Red Bull in
increasing the awareness of brand and products offerings that should be available in different
varieties among people or targeted market. Also, aids in differentiating their brand from the
competitors like Monster and Coca Cola as well as effectively communicate the unique features
and benefits to their target customers or audience. The main aim of promotional campaign like
advertisement is to aware customers to know about the availability of products along with prices.
CONCLUSION
From the above discussion it has been summarised that marketing is an essential element
for all the businesses in order to market their products to the customers as it helps in identifying
the entire information about the market, their positions, competitor as well as loyal customers
also. In order to know about the market position a company require to positioned their products
or services in the marketplace by using effective strategy and communicate in an appropriate
way to their target customers. After analysing the existing positioned strategy of the company
focus on formulating new or re-create positioned strategy in order to take competitive position of
marketplace as well as develop a competitors positioning map. Also, know about the appropriate
communication methods or ways that will be used by a company in order to re-positioned their
brand to the target customers.

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ONLINE
Red Bull. 2020. [Online] Available through:
<https://www.forbes.com/companies/red-bull/#6ae1c0e661ce>.