New Product Development of Red Bull: Principles of Marketing

This report discusses the principles of marketing and new product development of Red Bull company. It includes competitive analysis, brand extension, and the brand identity prism model that helps build a strong image.

PRINCIPLES OF MARKETING

Executive summary
The report has discussed on new product development of Red Bull company. Along with
this, it has also analysed the market and compatitve analysis. Lastly, it has depicted
about the Brand extension as well as prism model that has helped organization to
build strong image.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Methodology................................................................................................................................3
Presenting Existing Brand and Brand values...............................................................................3
Target Market............................................................................................................................4
Analysis of Market....................................................................................................................4
Explanation of new Product.........................................................................................................5
Competitive Analysis...................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
The principle of marketing is used in order to make proper strategic plan for
introducing the new product in the market. The present report is based on Red Bull that
provide their customer with energy drink. The headquarter of firm is locate in Austria.
Along with this, the study will discuss on background of the organization and the
aim of the study is to analysis the new product development. Furthermore, Red Bull is
following healthy lifestyle market trend in order to attract more and more customer.
As well as market size of the company is 7.9 billion in year 2020 (Red Bull Company
Information, 2021.). Along with this, organization aim to target young customer in order to run
their business in competitive market.
MAIN BODY
Methodology
The report has gathered the information on the basis of secondary research and the
data has been taken form books and journals.
Presenting Existing Brand and Brand values
Brand refers to marketing concept that allow customer to identifying the company
and the product. It is intangible in nature that it cannot be seen and touch moreover it
is identifying markers that help organization in creating brand awareness in t5he market.
Along with this, it need to be protected by copyright and patent in order to seek legal
protection (Ahn, Park and Hyun, 2018). On the other hand, brand extension means the process
of using same brand name and logo on the new product introduced by the firm in
competitive market.
Brand identity Prism
It is basically a diagram used to understand the elements and the way it is related to
one another. The key elements are physic, personality, culture, relationship, self –image and
reflection. All this elements helps the organization in building strong brand image.
Moreover, physique refers to the characteristics of brand such as features. While
personality means the trait of brand that will attract customer and culture means the value
that set the foundation of brand (Zwakala and Steenkamp, 2021). Such as it is making
luxury or ordinary products. Along with this self- image is the way consumer see itself

in a particular brand and reflection on the other hand means the way brand portray
itself to the target customer. The relationship will be between brand and consumer that
helps in increasing the growth of firm. Thus, before launching new product Red Bull has to
follow all this element in order to increase brand authority in market.
Target Market
Red Bull has decided to enter into the local market of UK it will mainly cover the area
of Dartford. The organization has chosen this particular area as it is rural and there is less
competition in selling energy drink (Rismawati, Wahyuni and Widodo, 2019). Along with
this, the organization has targeted youth of age between 16-40 and sport company as
demand of energy drink by them are high in market.
Moreover, on the basis of gender it has selected both men and women as both are
nowadays involved in sports activity. The organization has strictly refuse to sell products
to minor as energy drinks can be strong for them. Furthermore, the company is
following lifestyle trend of being healthy as most of the customer are adopting healthy
lifestyle.
Analysis of Market
Pestle analysis is strategic tool that allows firm to analysis the external factor that
will affect the overall growth of the firm.
PESTLE
Political: The issue related to restriction on trade will affect the growth of the firm.
Economical: The organization need to established their brand in country that has
good growth in GDP as it will allow the company to earn more profit.
Social: Red Bull has to make product according to trend and customer taste in order
to sustain in the business (Pan, Chen and Zhan, 2019).
Technological: It has to make use of advance technology for the production and for
promotion it can use digital marketing.
Legal: The firm has to follow all laws made by the government such as Food Safety
Act and Labour laws in order to reduce intervention of government.
Environmental: The organization has to follow policy such as CSR in order to
protect environment form pollution.
Ansoff Grid

It is a strategic approach that is used by the organization in order to analyse the risk
associated with market penetration and new product development. Red Bull has
adopted for new product in existing market. The company has decided to launch yoghurt
drink with 2 flavour such as mango and blueberry (Yaqoob and Omer, 2021). Along with
this, Red Bull has decided to extend their logo for new product so that customer can easily
analysis it.
Explanation of new Product
Tauber brand extension
This model suggests organization seven strategy in order to extent their product. For extension
the organization can make use of brand name of parent company, same product with
variation in price and quality. Red Bull has decide to make use of same logo that in
new product.
Moreover, for packaging the organization has decided to make use of attractive
paper tetra pack so that product is eco – friendly (Knoerzer and Millemann, 2021). Along
with this, the organization has decided to make use of RED BULL as it has high brand
image in the international market. In addition to this, the price of the product will be
average so that customer can easily purchase it. Furthermore, the delivery of item will be
through local store as well as online.
Competitive Analysis
BRAND RED BULL MONSTOR
PACKAGING Bottle/ Can Can
SIZE 25cl-50cl 50cl
LIMITED EDITION Red, blue and sliver No
ADVERTISING Extreme Sports No
SLOGAN Red Bull gives you wings Unleash the beast
CONCLUSION
From above report it has been concluding that brand extension will be successful as Red bull
has high demand in the market. Along with this, organization is also selling a similar
product related to the drinks. However, organization has decided to use same logo thus it

will contribute in attracting more customer. Lastly, study has depicted about the STP and
market analysis of company.

REFERENCES
Books and journals
Ahn, J., Park, J. K. and Hyun, H., 2018. Luxury product to service brand extension and brand
equity transfer. Journal of Retailing and Consumer Services. 42. pp.22-28.
Knoerzer, K. and Millemann, J. A., 2021. Investigating determinants of brand extension success
in a fit and a non-fit scenario. International Journal of Technology Marketing. 15(4).
pp.379-398.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Rismawati, F. F., Wahyuni, S. and Widodo, J., 2019. Strategi Pemasaran STP (Segmenting,
Targeting, Positioning) Larissa Aesthetic Center Cabang Jember. Jurnal Pendidikan
Ekonomi: Jurnal Ilmiah Ilmu Pendidikan, Ilmu Ekonomi Dan Ilmu Sosial.13(2). pp.68-
72.
Yaqoob, M. K. and Omer, H. A., 2021. The Role of Digital Marketing in Promoting Ansoff
Matrix Strategies: A survey study in Al-Alamiah store in Mosul City. Muthanna
Journal of Administrative and Economic Sciences.11(3).
Zwakala, K. M. and Steenkamp, P., 2021. Identity-based brand differentiation: Brand Identity
Prism application in South African banks. Journal of Contemporary
Management. 18(1). pp.121-141.
Online
Red Bull Company Information, 2021. [Online]. Available through <
https://www.redbull.com/in-en/energydrink/company-profile#:~:text=7.9%20bn,euros
%20to%206.307%20billion%20euros.>
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