Strategic Marketing Plan for Red Bull UK PDF

Summative assessment
Strategic Marketing Plan
for “Red Bull UK”
Module Title: Strategic Marketing Management
Module code: 7109B
Student name: Hoang Minh Huong Nguyen
Student number: 100334628
Word count: 3256
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Executive Summary
With an increasingly saturated and competitive energy drink market in the UK, and parallel
with that decreases revenue’s growth after Covid-19, Red Bull needs to boost strategically
marketing plan to increase its sale. This plan demonstrates strategies that involve generous
price incentives, strengthen communication through organizing sports-related events and use
the media market to lead interviews with athletes, who have significant influence at present
about the energy side of Red Bull. Moreover, this report also recommends that the company
keep features, quality of the drink and held advertising campaign to make it unique and
enlarge Red Bull’s customer base who are willing to pay on average £1- £2 more a can than
the next closest substitute. Under the circumstance of moving to healthier drink after Covid
19, Red Bull can also apply these strategies to increase Zero sugar drink’s market share and
develop more health-friendly drinks.
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Contents
1. Introduction..........................................................................................................................3
2. Situational analysis..............................................................................................................3
2.1 PESTLE analysis............................................................................................................3
2.2 SWOT analysis...............................................................................................................6
2.3 Competitors analysis.....................................................................................................8
2.4 Marketing Mix................................................................................................................9
3. Objectives..............................................................................................................................9
4. Strategy...............................................................................................................................11
4.1 Market Segmentation Table........................................................................................11
4.2 Targeting.......................................................................................................................12
4.3 Positioning Strategy.....................................................................................................12
5. Tatics...................................................................................................................................12
6. Evaluation & Control........................................................................................................14
7. Conclusion...........................................................................................................................14
References...............................................................................................................................15
Appendix 1: Monitoring & Evaluation of the effectiveness of the Red Bull marketing
strategy....................................................................................................................................17
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1. Introduction
Redbull Energy drink was founded in the 1980s and owned by the Austrian company Red
Bull GmbH. The company is mainly produced targeting the sportspeople and considerably
growing in that segment worldwide. The global pandemic COVID-19 has made a significant
impact on the energy drink market not only in the United Kingdom but across the globe in
terms of the halt in production, disturbance in the supply chain, and fewer sales due to
lockdown norms. One such example is Red Bull, one of the major players in the energy drink
market in the country has accounted for a steep decline in sales during the peak period of the
pandemic. Also, the demand for non-carbonated drinks is rising significantly because of
increased urbanization, rising disposable income, and growing health consciousness among
the British youth.
The primary purpose of this report is to formulate a marketing plan for Red Bull in its UK
market. In the sense of growing conscious health drink and declined sales due to Covid 19,
the marketing strategy proposed in this report will help Red Bull position itself to develop
matrix marketing and increase Red Bull’s market share in the UK in the next two year.
2. Situational analysis
2.1 PESTLE analysis
PESTLE analysis allows companies such as Red Bull to assess the Political, Economic,
Social, Technological, Legal and Environmental aspects of the environment in which they
operate (Rumelt, 2017). PESTLE analysis of GAP UK is briefly outlined below.
2.1.1 Political factors
In the UK, the government ban the sale of energy drink include Red bull to children under 16.
According to that, supermarkets Waitrose, Sainsbury’s, Morrisons, Tesco, Asda and Aldi all
announce bans on the sale of energy drinks to U16s in 2018. One of the reasons is that there
is no evidence that energy drinks have any nutritional value or place in the diet of children
and young people (Russell V., 2018) and children should be protected from products that are
damaging to their health and education. In England, the implementation of a sugar tax to help
reduce spiralling obesity rates affected the overall sales of Red Bull. However, this can be
seen as an opportunity for the company to focus on the main market of adults and increase
sale to other countries having a flexible policy.
2.1.2 Economic factors
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