Research on New Product Introduction by Red Bull

This report aims to research on the new product introduced by Red Bull, understand the existing brand and brand values, identify the target market, and analyze the new market. It also covers various competitive companies in the energy drink industry.

Principles of marketing
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EXECUTIVE SUMMARY
This report is aiming to research on the new product introduces by the Red bull. It
understands existing brand and brand values of the company. What will be the target market for
introduction of new products. As Red bull is the energy drink brand which now want to
introduce its wine product in the market. Various factors which can affect the business are
mentioned below. Ansoff growth matrix analysis is also done by the company. This will help the
company in targeting new customers.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
METHODOLOGY..........................................................................................................................5
FINDINGS.......................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
Red bull is a type of energy drink which is operated in Australia. It is introduced in 1987.
it has a highest market share with 7.5 millions cans are sold in one year. It is served in a tall and
blue- silver colour can. This report includes the research methodology. Along with that it
introduces new product of Red bull energy drink and identifies the target market and analysis of
new market. It also covers various competitive companies to this.
METHODOLOGY
Research methodology is a systematic path of designing a research work. In this report
Red bull is entering into the new market with the new product targeting its customers.
Qualitative data is more taken in this research as compared to qualitative data(Dahl., Peltier and
Schibrowsky, 2018). Primary research data is the data to identity market size, share and success
chances in comparison with the companies competitors like Lucozade energy drink. This
research is done on primary, academic and secondary phase for estimating that the product from
Red bull will survive or not in the market. Whether that product reach to the target market or not.
For this Red bull needs to work upon the quantitative and qualitative methods before launching
of new product in the market.
FINDINGS
Existing brand and brand values :
Red bull is primary a energy drink. It sells approx 6.8 billions cans in more than 171
countries. Red bull also introduces new organic sodas and along with that it introduces four new
beverages containing no caffeine. It has earned customer loyalty and attract young customers
towards the brand. To identify the brand identities Kapferer introduces brand identity prism. It
helps in making strong business identities of the company. There are some analysis of brand
identify prism in context of Red bull:
 Personality: Personality is the expression of the business in terms of voice, design and
copywriting. Energy drinks in Red bull is served in such manner that it attracts the youth
customers to build their stamina and strength(Gaudet, 2018). Also it attracts the old
people to give them energy.
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 Relationship: Relationship is the relation between the company's brand and its customers
that is what customers want from the brand. As it provides sugar free drinks, orange ,
green, lime, simply coca-cola etc. to the customer.
 Culture: Cultural of the brand is based on the behaviour of the business. These energy
drinks provide good taste and quality to the customers that are all provided in
geographical areas of Australia and other countries(Jaggar, 2015).
 Physique: It refers to the physical characteristic that is associated with the brand. Red
bull energy drink is a tall and slim blue-silver can which is a image that has created in the
mind of the customer. As the name suggest, it has a red colour logo and a slogan is “ Red
bull gives you wings” that means “ No red bull no wings”.
Description of a target market:
Target market is the segment which is created by every organisation. To calculate the
target market company uses STP approach that is Segmentation, targeting and positioning. It is a
marketing approach which is used to analysis the target market of the company and sell its
energy drink. STP of Red bull is given below:
 Segmentation: Segmentation is diving the whole customers into the groups according to
their geographical, demographical, behavioural and psycho-graphic segments. they sell
their products accordingly.
 Targeting: Targeting refers to the choosing a specific group or segment to sell their
products that is energy drinks are most useful for the young customers and old people.
Whom want to gain energy and increase strength.
 Positioning: It refers to the selection of marketing mix which is most suitable for the
target customers. It uses mono- segment positioning which is required to know about
customers needs and wants(Kumar, 2018). Red bull mostly focuses on those customers
who are a professional and have daily routine that they did not have time to go for sports.
Analysis of new market:
Red bull analysis the business environment through PESTLE analysis factors. This is
done below:
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 Political: It includes government policies and laws which can affect the Red bull's
business environment.
 Economical: Factors like unemployment, inflation rate can create an impact upon Red
bull business.
 Social: Social factors can affect the business in reducing its sales and also results in
declining in growth(Luca, Hibbert and McDonald, 2016).
 Technological: Modern technology now a days used in every organisation. It is an
challenge for the Red bull to introduce new products through new technologies.
 Legal : Legal issues like government interventions can occurs in relation to health issues.
This can create a bad impact on the company.
 Environmental: Plastic packets are used in the company which can harm customers
health. This can be a environmental issue.
Ansoff matrix: It is a tool to analysis market strategy.
 Market penetration: It is the first strategy which is used by any company to introduce
existing product into the existing market.
 Market development: This is the next strategy where company introduces
existing ;product into the new market.
 Product development: In this strategy there is a introduction of new product into the
existing market. Company use this strategy to introduce its new product called Red bull
wine.
 Diversification: this is the very risky strategy in which companies introduces new product
into the new market(Roberts, Dant and Lim, 2015).
Explanation of new market:
Red bull is already producing a energy drink with lot of market share. But now it is
introducing new product that is called “Red bull Wine”. It will be a alcoholic wine. Comes with
no extra added flavours. Packing of product will be in a glass bottle like other wines. It will
target mainly youths and people with above 30 age.
CONCLUSION
It is been concluded from above report that Red bull is the very famous energy drink
company. If it launches new product in the market then it need to target the customer and
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markets. Along with that it should focuses on the competitors marketing strategies. Which helps
the company to attract its customers and increase its profitability.
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REFERENCES
Books and Journals
Dahl, A.J., Peltier, J.W. and Schibrowsky, J.A., 2018. Critical thinking and reflective learning in
the marketing education literature: A historical perspective and future research needs.
Journal of Marketing Education. 40(2), pp.101-116.
Gaudet, J.C., 2018. Keeoukaywin: The Visiting Way-Fostering an Indigenous Research
Methodology. aboriginal policy studies. 7(2).
Jaggar, A.M., 2015. Just methods: An interdisciplinary feminist reader. Routledge.
Kumar, V., 2018. Transformative marketing: The next 20 years.
Luca, N.R., Hibbert, S. and McDonald, R., 2016. Towards a service-dominant approach to social
marketing. Marketing Theory.16(2). pp.194-218.
Roberts, S.D., Dant, R.P. and Lim, C.L., 2015. ‘Needs’ and ‘Wants’ in Marketing Literature:
Pedagogical Difficulties. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 264-268). Springer, Cham.
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