Marketing and Management: Red Bull Herbal - PESTLE Analysis, STP, and Marketing Mix

MARKETING AND MANAGEMENT 1
MARKETING AND MANAGEMENT
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MARKETING AND MANAGEMENT 2
Contents
1.0 Introduction...........................................................................................................................................3
2.0 About the new product..........................................................................................................................3
3.0 PESTLE analysis...................................................................................................................................4
3.1 Political factors..................................................................................................................................5
3.2 Economic environment......................................................................................................................5
3.3 Social environment............................................................................................................................5
3.4 Technological....................................................................................................................................6
3.5 Legal factors......................................................................................................................................6
3.6 Environmental factors........................................................................................................................7
4.0 STP........................................................................................................................................................7
4.1 Targeting...........................................................................................................................................7
4.2 Segmentation.....................................................................................................................................7
4.3 Positioning.........................................................................................................................................8
5.0 Marketing mix.......................................................................................................................................9
5.1 Product..............................................................................................................................................9
5.2 Place................................................................................................................................................10
5.3 Promotion........................................................................................................................................10
5.4 Price.................................................................................................................................................11
6.0 Conclusion...........................................................................................................................................11
References.................................................................................................................................................12

MARKETING AND MANAGEMENT 3
1.0 Introduction
Dietrich Mateschitz, an Austrian entrepreneur, founded Red Bull Energy drink in 1980
and at the time was in partnership with Chaleo Yoovidhya. Red Bull sprung out of an inspiration
from an existing drink known as Krating Daeng that had been introduced in Thailand by Chaleo
Yoovidhya. However, Dietrich went further to modify the ingredients used in manufacturing the
energy drink, and the first Red Bull was sold in 1987 in Austria (Deegan, 2016). Currently, Red
Bull has a presence in more than 160 countries with more than 5 billion cans sold in 2015 across
the world (Shakarishvili, 2016). Red Bull has grown expanding to become the leading seller of
energy drink across the globe. Red Bull began as an energy drink that was consumed by Thai
truck drivers and workers and now is famous as the most preferred energy drink across the world
drawing customers ranging from sportsmen, youth, workaholics and now women and children
with the introduction of Red Bull Herbal. Initially, Red Bull was manufactured to target sports
people. However, due to the increasing demand, the company has invariably segmented its
market so that the drink can serve different groups. The report will analyze PESTLE analysis in
the UK market to ascertain the suitability of the UK energy drink market. Then, the report will
address the 4Ps used by Red Bull in connection to the new product, Red Bull Herbal and lastly
the conclusion that recommends the suitability of the new product in the UK market.
2.0 About the new product
The growing demand and concerns by the public on the need to have health conscious
products have led to a decline in the sales of energy drinks. Also, with regulations that ban the
use of caffeine in energy drinks has impacted negatively on the sale of Red Bull products.
However, following the launch of Red Bull herbal, all such concerns will be addressed amicably.
First and foremost, Red Bull Herbal is made using natural herbs blended with glucose, almond,
and citrus to give it desired taste. This drink lacks caffeine that has been banned initially in the

MARKETING AND MANAGEMENT 4
UK market and even serves a large market that is women and children who have been previously
underrepresented in the past with regards to product suiting their tastes. However, with the
introduction of Red Bull Herbal, both women and children can comfortably consume such a
drink as it free from caffeine and is a zero-sugar drink. Such changes are due to the ongoing
regulations of the energy drink industry making it difficult for companies that fail to adhere to
such rules to operate efficiently.
The slogan adopted by Red Bull that it is, “the drink that gives you wings” is Red Bull.
Red Bull has continued using this slogan globally in promoting its energy drinks (Deegan, 2016).
The introduction of Red Bull herbal will make the brand not only among men who have been the
most significant group consuming the drink but also women and children will be part of the
consumers. This is because of health benefits associated with the energy drink as consumers will
now link Red Bull to health benefits. Red Bull herbal will be aiming to change the perceived
marketing to only opinion leaders and high-income individuals that have great lifestyles. Instead,
Red Bull Herbal will be for all irrespective of occupation, age or income (Deegan, 2016).
However, Red Bull will be the same as other Red Bull products that is it will come in two where
consumers will choose one with sugar or non-sugar. This is to support the company’s marketing
objectives that state that consumers are brought to the product as opposed to bringing the product
to the people. Red Bull Herbal will maintain the historical product mystique where consumers
will be made to feel special. The consumers will relate their experience with consuming Red Bull
herbal and adapt the values to the traits of Red Bull Herbal.
3.0 PESTLE analysis
The analysis of the UK using PESTLE tool seeks to address some factors that affect the
operation of a business in a country such as the UK. Some of these factors include political,
economic, social, technological and environmental aspects of the UK.