Strategic Marketing Plan for Red Bull UK PDF
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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
0
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
0
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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.
1
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.
1
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
2
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
2
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
3
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
3
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The economic condition of the UK will affect Red Bull's production and selling as when the
inflation rate is rising, then the company will face a high cost of raw materials; thus, it may
increase the price of the drink for the customers. At the same time, consumer's real disposable
income will reduce. Therefore consumers are likely to buy fewer energy drinks, as they are
not necessities. Not only high cost but also the loans are taken by Red Bull will be affected
and thus, another outcome can also be a reduction in sales.
Figure 1 UK Long term interest rate (source: ceicdata.com, 2021)
2.1.3 Social Factors
The number of youth in the UK is major and the average age is about 40.5 years old, so
England is still a potential market for Red Bull to increase the number of drinks sold.
Besides, The modern culture is more inclined towards the consumption of energy drinks, so
the UK is having such a culture then this becomes a huge opportunity for Red Bull. Socially
the energy drink brands are considered very cool, and they are socially acceptable because it
is associated with sports image. Red Bull can utilize the opportunity caused by the hectic life
of the current generation. Everyone is so involved in their busy life that energy drinks like
Red Bull have become a necessity.
4
inflation rate is rising, then the company will face a high cost of raw materials; thus, it may
increase the price of the drink for the customers. At the same time, consumer's real disposable
income will reduce. Therefore consumers are likely to buy fewer energy drinks, as they are
not necessities. Not only high cost but also the loans are taken by Red Bull will be affected
and thus, another outcome can also be a reduction in sales.
Figure 1 UK Long term interest rate (source: ceicdata.com, 2021)
2.1.3 Social Factors
The number of youth in the UK is major and the average age is about 40.5 years old, so
England is still a potential market for Red Bull to increase the number of drinks sold.
Besides, The modern culture is more inclined towards the consumption of energy drinks, so
the UK is having such a culture then this becomes a huge opportunity for Red Bull. Socially
the energy drink brands are considered very cool, and they are socially acceptable because it
is associated with sports image. Red Bull can utilize the opportunity caused by the hectic life
of the current generation. Everyone is so involved in their busy life that energy drinks like
Red Bull have become a necessity.
4
Figure 2: Population of the United Kingdom in 2019, by age group (in a million people) (source: Statista, 2019)
2.1.4 Technological Factors
Red Bull can use the Internet to help advertise and promote its products. It can also sell large
quantities of its product directly to its consumers and connect to the product more easily
through social media. It is a new way to communicate with consumers that are cheap and
efficient market research method. Red Bull takes place advertising strategies and promotion
on the Internet, such as paying a significant amount to the stunt man seen in the social media
advertisements is the best way for Red Bull. In addition, more hi-tech technology may enable
companies to produce more drinks at a cheaper cost and improve the quality of packaging.
2.1.5 Legal Factors
Red Bull has to meet the safety criteria for the consumption of humans without suffering
from any side effects. At the EU level, the Consumer Information Regulation (EU)
1169/2011, which came into force in December 2014, contains provisions regarding the
labelling of beverages with an added caffeine content of more than 150 mg/litre. Therefore,
the labelling of energy drinks must include the following: "High caffeine content. Not
recommended for children or pregnant or breast-feeding women", followed by a quantitative
indication of the product's caffeine content. This approach has been adopted universally
across the EU but was applied voluntarily by industry in the UK from 2010. As it is a
5
2.1.4 Technological Factors
Red Bull can use the Internet to help advertise and promote its products. It can also sell large
quantities of its product directly to its consumers and connect to the product more easily
through social media. It is a new way to communicate with consumers that are cheap and
efficient market research method. Red Bull takes place advertising strategies and promotion
on the Internet, such as paying a significant amount to the stunt man seen in the social media
advertisements is the best way for Red Bull. In addition, more hi-tech technology may enable
companies to produce more drinks at a cheaper cost and improve the quality of packaging.
2.1.5 Legal Factors
Red Bull has to meet the safety criteria for the consumption of humans without suffering
from any side effects. At the EU level, the Consumer Information Regulation (EU)
1169/2011, which came into force in December 2014, contains provisions regarding the
labelling of beverages with an added caffeine content of more than 150 mg/litre. Therefore,
the labelling of energy drinks must include the following: "High caffeine content. Not
recommended for children or pregnant or breast-feeding women", followed by a quantitative
indication of the product's caffeine content. This approach has been adopted universally
across the EU but was applied voluntarily by industry in the UK from 2010. As it is a
5
beverage company, Red Bull has to have labels disclose the exact caffeine content in the
product.
2.1.6 Environmental Factors
Waste disposal is the biggest problem faced by companies like the sustainability of the
business, in the long run, should be the focus of the company. UK consumers are becoming
more environmentally concerned (Mavrokefalidis, 2020). According to Lauren M.(2021),
two-thirds (67%) of consumers consider it essential that the products they buy are in
recyclable packaging, and the same percentage consider themselves environmentally aware.
Red Bull has advantages after improving the recycling system, used aluminium cans which
are 100 % recyclable, which is a decisive advantage because recycling an aluminium
beverage can use around 95% less energy than the production of a new can.
2.2 SWOT analysis
SWOT Analysis is generally employed in business and in resource management but can also
be used in a knowledge-based non-profit context (Kong E., 2008). It is a strategic analytical
tool for assessing the strengths and weaknesses of a business, analyzing opportunities
available to the company and threats faced by the industry.
The SWOT Analysis of Red Bull UK is outlined below.
2.3.1 Strengths
Market Leader: Red Bull is already a global market leader with the largest sales and market
share worldwide.
Effective Supply Chain: Red Bull has eradicated bottlenecks and ensured that raw materials
are always available and products are sufficiently stocked in retail stores worldwide.
Youthful Icon: Red Bull has nurtured its brand as young and exploits all mediums
effectively to entice youths from across the world.
Successful campaign advertising: RedBull's success is tied to employing many promotions
and well-targeted campaigns/sponsorship, which have greatly helped the company improve
its reputation and build trust with Red Bull's prospective audience (Alec C., 2019). Using the
'Red Bull gives you wings' slogan and sponsoring dangerous sports like Formula 1 driving
has significantly increased consumer brand awareness of the product and differentiated it
from its competitors.
2.3.2 Weakness
Unique Selling Position: Red Bull products are known as the energy and sports drink
category in which it operates in the smallest sector of the overall soft drinks markets. With
6
product.
2.1.6 Environmental Factors
Waste disposal is the biggest problem faced by companies like the sustainability of the
business, in the long run, should be the focus of the company. UK consumers are becoming
more environmentally concerned (Mavrokefalidis, 2020). According to Lauren M.(2021),
two-thirds (67%) of consumers consider it essential that the products they buy are in
recyclable packaging, and the same percentage consider themselves environmentally aware.
Red Bull has advantages after improving the recycling system, used aluminium cans which
are 100 % recyclable, which is a decisive advantage because recycling an aluminium
beverage can use around 95% less energy than the production of a new can.
2.2 SWOT analysis
SWOT Analysis is generally employed in business and in resource management but can also
be used in a knowledge-based non-profit context (Kong E., 2008). It is a strategic analytical
tool for assessing the strengths and weaknesses of a business, analyzing opportunities
available to the company and threats faced by the industry.
The SWOT Analysis of Red Bull UK is outlined below.
2.3.1 Strengths
Market Leader: Red Bull is already a global market leader with the largest sales and market
share worldwide.
Effective Supply Chain: Red Bull has eradicated bottlenecks and ensured that raw materials
are always available and products are sufficiently stocked in retail stores worldwide.
Youthful Icon: Red Bull has nurtured its brand as young and exploits all mediums
effectively to entice youths from across the world.
Successful campaign advertising: RedBull's success is tied to employing many promotions
and well-targeted campaigns/sponsorship, which have greatly helped the company improve
its reputation and build trust with Red Bull's prospective audience (Alec C., 2019). Using the
'Red Bull gives you wings' slogan and sponsoring dangerous sports like Formula 1 driving
has significantly increased consumer brand awareness of the product and differentiated it
from its competitors.
2.3.2 Weakness
Unique Selling Position: Red Bull products are known as the energy and sports drink
category in which it operates in the smallest sector of the overall soft drinks markets. With
6
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consumer interest turning away from Red Bull's major strength of carbonates towards
healthier alternatives, the firm finds itself less of a giant in the playing field.
Regulations: The relatively high caffeine content of Red Bull makes the brand highly
vulnerable to regulatory control in the UK.
Not a patented drink product: Red Bull have a lot of competitors which has alternative
drinks with more options and flavours, capturing the trend in the UK.
2.3.1 Opportunities
Extend Product Lines: Red Bull can extend product lines to offer more variety, new
flavours and target a broader segment in the market.
Consumer Recognition using Sports Events Sponsorship: Sports events are the best
opportunity for Red Bull to recognize its product by athlete and students. Sports events are
popular not only among athlete but also among students.
Introduce Healthy Products: With the increasing number of health-conscious consumers,
Red Bull can invest more in R&D to attain and offer healthy products.
2.3.4 Threats
Tougher Regulations: In the future, governments can decide to pass tougher regulations
targeting products with unhealthy ingredients.
Increase in Imitations: As more emerging economies acquire the technologies to imitate
valued products, which will threaten Red Bull's profitability.
Growing Health-Consciousness: Red Bull consists of unhealthy ingredients, such as
caffeine, concentrates, flavours…, making it vulnerable to the increasing number of health-
conscious consumers. Therefore, Red Bull's revenues and profits can decline.
Stiff Competition: Apart from Monster, Red Bull faces competition from small companies
that target niches with quality but cheaper energy drinks.
Global Pandemic: With the whole world practising social distancing and sports events
postponed until further notice, the opportunities to sell products are most shut down.
7
healthier alternatives, the firm finds itself less of a giant in the playing field.
Regulations: The relatively high caffeine content of Red Bull makes the brand highly
vulnerable to regulatory control in the UK.
Not a patented drink product: Red Bull have a lot of competitors which has alternative
drinks with more options and flavours, capturing the trend in the UK.
2.3.1 Opportunities
Extend Product Lines: Red Bull can extend product lines to offer more variety, new
flavours and target a broader segment in the market.
Consumer Recognition using Sports Events Sponsorship: Sports events are the best
opportunity for Red Bull to recognize its product by athlete and students. Sports events are
popular not only among athlete but also among students.
Introduce Healthy Products: With the increasing number of health-conscious consumers,
Red Bull can invest more in R&D to attain and offer healthy products.
2.3.4 Threats
Tougher Regulations: In the future, governments can decide to pass tougher regulations
targeting products with unhealthy ingredients.
Increase in Imitations: As more emerging economies acquire the technologies to imitate
valued products, which will threaten Red Bull's profitability.
Growing Health-Consciousness: Red Bull consists of unhealthy ingredients, such as
caffeine, concentrates, flavours…, making it vulnerable to the increasing number of health-
conscious consumers. Therefore, Red Bull's revenues and profits can decline.
Stiff Competition: Apart from Monster, Red Bull faces competition from small companies
that target niches with quality but cheaper energy drinks.
Global Pandemic: With the whole world practising social distancing and sports events
postponed until further notice, the opportunities to sell products are most shut down.
7
2.3 Competitors analysis
Figure 3 Retail sales revenue of the leading energy drink brands in the United Kingdom
(UK) in 2020 (in a million GBP) (source: Statista, 2020)
The major competitors of Red Bull in the UK energy drinks are Lucozade and Monster
2.4.1 The Monster Beverage Corporation
Monster focuses on the energy drinks market with Energy drinks and have introduced a wide
array of energy drinks with zero calories/zero sugar for health-conscious people, which is
their strength when competing with Red Bull.
2.4.2 Lucozade
Lucozade is recognised as one of the leaders in the energy drinks market within Britain. In
addition, it has a presence in numerous other international markets, including the USA, where
it has sponsored many sports events (Wenner & Jackson, 2009). Lucozade has a very famous
and strong brand and broad consumer brand knowledge because customer stored in their
memory descriptive and evaluative brand-related information (Keller, 2003).
2.4.3 Other non-core competition
Growth was the driving force behind the launch of Energy drink. Aligned with this rapid
growth, there is an increasing demand for innovation within energy drinks, making this the
8
Figure 3 Retail sales revenue of the leading energy drink brands in the United Kingdom
(UK) in 2020 (in a million GBP) (source: Statista, 2020)
The major competitors of Red Bull in the UK energy drinks are Lucozade and Monster
2.4.1 The Monster Beverage Corporation
Monster focuses on the energy drinks market with Energy drinks and have introduced a wide
array of energy drinks with zero calories/zero sugar for health-conscious people, which is
their strength when competing with Red Bull.
2.4.2 Lucozade
Lucozade is recognised as one of the leaders in the energy drinks market within Britain. In
addition, it has a presence in numerous other international markets, including the USA, where
it has sponsored many sports events (Wenner & Jackson, 2009). Lucozade has a very famous
and strong brand and broad consumer brand knowledge because customer stored in their
memory descriptive and evaluative brand-related information (Keller, 2003).
2.4.3 Other non-core competition
Growth was the driving force behind the launch of Energy drink. Aligned with this rapid
growth, there is an increasing demand for innovation within energy drinks, making this the
8
perfect time for other energy drink companies to venture into the category with a trademark
product. (Simon Harrison, 2019)
Figure 4 Revenue in Energy Drink Market in the UK from 2015-2020
(source: Modor Intelligence)
2.4 Marketing Mix
Marketing Mix refers to the set of tactics or actions employed by companies to promote its
products or brand (Kingsnorth, 2019). The current marketing mix of Red Bull will be briefly
discussed below:
Product The product mix is quite simple; Red Bull has launched a series of flavours to suit
different customer needs and tastes.
Price Massive brand awareness, high quality, easy reach to customers are few factors
that make Red Bull follow a “Premium Pricing” strategy for its products.
Place The ease of availability of Red Bull in supermarkets, nightclubs, grocery stores
etc. is what has added to the success of Red Bull as a brand.
Promotion The company uses a proper mix of ATL, BTL and Digital channels for creating
awareness and promoting its products.
Table 1: Current Marketing Mix of Red Bull
3. Objectives
The 5S of marketing is a simple framework for reviewing and defining the top-level goals for
Redbull (Chaffey & Smith, 2017). It is to note that the following SMART (Specific,
Measurable, Achievable, Realistic and Timebound) objectives are formulated using 5 S’s
objectives from the SOSTAC Planning system.
Sell: Significant strengthening of e-commerce is required due to Covid 19, people use more
internet and a large of customers buy food and drink online. By 2022, the company should
improve 15% compared to 2020, from approximately 223 million British pounds worth of
sales (2020) to 256 million pounds (2022).
9
product. (Simon Harrison, 2019)
Figure 4 Revenue in Energy Drink Market in the UK from 2015-2020
(source: Modor Intelligence)
2.4 Marketing Mix
Marketing Mix refers to the set of tactics or actions employed by companies to promote its
products or brand (Kingsnorth, 2019). The current marketing mix of Red Bull will be briefly
discussed below:
Product The product mix is quite simple; Red Bull has launched a series of flavours to suit
different customer needs and tastes.
Price Massive brand awareness, high quality, easy reach to customers are few factors
that make Red Bull follow a “Premium Pricing” strategy for its products.
Place The ease of availability of Red Bull in supermarkets, nightclubs, grocery stores
etc. is what has added to the success of Red Bull as a brand.
Promotion The company uses a proper mix of ATL, BTL and Digital channels for creating
awareness and promoting its products.
Table 1: Current Marketing Mix of Red Bull
3. Objectives
The 5S of marketing is a simple framework for reviewing and defining the top-level goals for
Redbull (Chaffey & Smith, 2017). It is to note that the following SMART (Specific,
Measurable, Achievable, Realistic and Timebound) objectives are formulated using 5 S’s
objectives from the SOSTAC Planning system.
Sell: Significant strengthening of e-commerce is required due to Covid 19, people use more
internet and a large of customers buy food and drink online. By 2022, the company should
improve 15% compared to 2020, from approximately 223 million British pounds worth of
sales (2020) to 256 million pounds (2022).
9
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2011 2012 2013 2014 2015 2016 2017 2018 2019
0
50
100
150
200
250
300
350
329.4
Figure 5: Annual turnover of Red Bull in the United Kingdom and Ireland 2011- (million
pounds) (source: collected by the author) (source: Statista, 2020)
Serve: ensure that bar or restaurant has the drink served in a tall glass with ice to ensure the
finished drink stays cold for longer and does not become diluted. Besides, Redbull already
presented the consumer with a full can, cold from the fridge that has been opened but not
poured. These things should be prevalent in every restaurant to increase sales by up to 15%
by the end of 2022.
Speak: Until now, RedBull only has the phone number and email to support the customer. In
the next year, Red Bull must have a live chat option and enough customer service staff to
handle having live conversations with their customers with at least a 10% increase in user
interactions every year.
Save: RedBull currently attempts to compete in energy drinks; however, due to Covid 19, the
demand for energy drinks had fallen. The company is facing competitors and the bad effect of
the pandemic. Therefore, in 2022, RedBull must reduce the total marketing cost by 25%, and
in the process, reduce manufacturing costs by 10%.
Sizzle: In 2022, target to increase 8% downloads for Red Bull AR, which is a game app with
sports and create fun to attract more people to know about Redbull. Besides, creating another
mobile app in which consumers accumulate reward points and swift for discount.
4. Strategy
10
0
50
100
150
200
250
300
350
329.4
Figure 5: Annual turnover of Red Bull in the United Kingdom and Ireland 2011- (million
pounds) (source: collected by the author) (source: Statista, 2020)
Serve: ensure that bar or restaurant has the drink served in a tall glass with ice to ensure the
finished drink stays cold for longer and does not become diluted. Besides, Redbull already
presented the consumer with a full can, cold from the fridge that has been opened but not
poured. These things should be prevalent in every restaurant to increase sales by up to 15%
by the end of 2022.
Speak: Until now, RedBull only has the phone number and email to support the customer. In
the next year, Red Bull must have a live chat option and enough customer service staff to
handle having live conversations with their customers with at least a 10% increase in user
interactions every year.
Save: RedBull currently attempts to compete in energy drinks; however, due to Covid 19, the
demand for energy drinks had fallen. The company is facing competitors and the bad effect of
the pandemic. Therefore, in 2022, RedBull must reduce the total marketing cost by 25%, and
in the process, reduce manufacturing costs by 10%.
Sizzle: In 2022, target to increase 8% downloads for Red Bull AR, which is a game app with
sports and create fun to attract more people to know about Redbull. Besides, creating another
mobile app in which consumers accumulate reward points and swift for discount.
4. Strategy
10
To achieve the above-stated objectives, Red Bull must align its strategy. Therefore, using
Segmentation, Targeting and Positioning (STP) framework, the refined strategy for Red Bull
is recommended as below.
4.1 Market Segmentation Table
Demographics
The current target market for Red Bull is primarily teenagers and
young adults. Because of the price point, Red Bull can also be
perceived as a market aimed at higher income individual and
business professionals social class.
Psychographics
Red Bull should appeal to younger individuals interested in music,
sports, and events, daring lifestyles, open to new experiences and
Busy working professionals who need a boost. Red Bull can appeal
to and project an animated, dynamic image and brand identity.
Geographic British people are used to needing a lot of energy when participating
in games or chatting, often looking for energy drinks to increase
excitement. Red Bull is a new alternative to alcohol or beer.
Behaviors
Red Bull has competition in the market, and some at lower price
points, substitutes in the market do not have any substantial change
on Red Bull’s customer base. This is because of the high brand
loyalty that Red Bull enjoys.
Decisions
Make consumers familiar with the taste of Red Bull, ensuring the
quality of drinks and ingredients provided to customers, so that they
are willing to pay on average £1- £2 more a can than the next
closest substitute, Monster.
Media
Red Bull’s media plan is best described as its profile in the market:
Energetic and Dynamic. Red Bull can create sports events or
proters to attract attention and positively correlate their product with
the target customers interest. Red Bull can keep selling a lifestyle, a
personality, more so than a product.
Table 2: Market Segmentation Table for Red Bull UK
4.2 Targeting
Red Bull should set the primary target markets are teenagers and young adults, male and
female, between the ages of 18‐35, due to this generation’s on-the-go lifestyle and
11
Segmentation, Targeting and Positioning (STP) framework, the refined strategy for Red Bull
is recommended as below.
4.1 Market Segmentation Table
Demographics
The current target market for Red Bull is primarily teenagers and
young adults. Because of the price point, Red Bull can also be
perceived as a market aimed at higher income individual and
business professionals social class.
Psychographics
Red Bull should appeal to younger individuals interested in music,
sports, and events, daring lifestyles, open to new experiences and
Busy working professionals who need a boost. Red Bull can appeal
to and project an animated, dynamic image and brand identity.
Geographic British people are used to needing a lot of energy when participating
in games or chatting, often looking for energy drinks to increase
excitement. Red Bull is a new alternative to alcohol or beer.
Behaviors
Red Bull has competition in the market, and some at lower price
points, substitutes in the market do not have any substantial change
on Red Bull’s customer base. This is because of the high brand
loyalty that Red Bull enjoys.
Decisions
Make consumers familiar with the taste of Red Bull, ensuring the
quality of drinks and ingredients provided to customers, so that they
are willing to pay on average £1- £2 more a can than the next
closest substitute, Monster.
Media
Red Bull’s media plan is best described as its profile in the market:
Energetic and Dynamic. Red Bull can create sports events or
proters to attract attention and positively correlate their product with
the target customers interest. Red Bull can keep selling a lifestyle, a
personality, more so than a product.
Table 2: Market Segmentation Table for Red Bull UK
4.2 Targeting
Red Bull should set the primary target markets are teenagers and young adults, male and
female, between the ages of 18‐35, due to this generation’s on-the-go lifestyle and
11
receptiveness to advertisements for these types of products (Lal 2007). They’re also generally
interested in extreme sports and challenging recreational activities. Besides, they should
target on audience who is young, energetic, dynamic, adventurous customers. Especially,
they could seek individuals that needed Red Bull needed buzz marketing/extreme sports in
order to tap into them. Marketing campaigns should be hold regularly to geared to customers
who thrive on social interaction and “extreme” events.
4.3 Positioning Strategy
As mentioned, to increase market share in the UK, Red Bull should focus on raising its high
quality, producing the product for health-conscious people, and making it unique with
customers. Many people already know about the tagline “Red Bull Gives You Wings”, so the
company should continue to use it on products and make the tagline more evident on
products, such as on the give‐a‐ways that the College Reps will give out.
The perceptual map of Red Bull is shown in the figure below.
Figure 6: Perceptual map of recommended positioning of RedBull UK (Author generated)
5. Tatics
The Marketing Mix below presents the tactics of implementing the strategy outlined in the
previous section.
Elements Recommended tatic
Product The product is well matured and stable. Reb Bull carries some primary flavours,
12
Low price High price
High quality
Low quality
interested in extreme sports and challenging recreational activities. Besides, they should
target on audience who is young, energetic, dynamic, adventurous customers. Especially,
they could seek individuals that needed Red Bull needed buzz marketing/extreme sports in
order to tap into them. Marketing campaigns should be hold regularly to geared to customers
who thrive on social interaction and “extreme” events.
4.3 Positioning Strategy
As mentioned, to increase market share in the UK, Red Bull should focus on raising its high
quality, producing the product for health-conscious people, and making it unique with
customers. Many people already know about the tagline “Red Bull Gives You Wings”, so the
company should continue to use it on products and make the tagline more evident on
products, such as on the give‐a‐ways that the College Reps will give out.
The perceptual map of Red Bull is shown in the figure below.
Figure 6: Perceptual map of recommended positioning of RedBull UK (Author generated)
5. Tatics
The Marketing Mix below presents the tactics of implementing the strategy outlined in the
previous section.
Elements Recommended tatic
Product The product is well matured and stable. Reb Bull carries some primary flavours,
12
Low price High price
High quality
Low quality
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so can occasionally test market other flavours to extend the product line.
Price
The company should have some substantial price reductions or discounts
event in the year.
For certain well-established product, Red Bull can increase the prices as
customers can pay a higher price. Besides, Red Bull can offer the right mix
of product features, quality, and service combination at a fair price. For
example, offering option: customers can have an initial product experience
at an accessible price.
Place
Bull Red should generate more revenues from its e-commerce site to make
up for the shortfall revenue due to Covid 19. However, it is recommended
that the company keeps distributing through channel partners such as
wholesalers, retailers, logistics companies, and distribution agents.
Promotion
The company should continue to focus on digital marketing, especially
Social Media marketing, due to its high effectiveness for millennials
(Silvia 2019). In addition, red Bull’s marketing promotions should have
more creative campaigns for around an ongoing series of new events to
continually promote the product to drive more sales even though the
maturity stage.
People
Various departments are involved in the organisation for production,
marketing, operations and overall management. Red Bull should care for
its employees to deliver quality outcomes and take the organisation to the
next level (Hollensen 2015).
Process
Red Bull should improve the process of communication with athletes,
professionals and make them share their reasons for accompanying Red
Bull, which drives loyalty and consumer engagement (Hollensen 2015).
Physical
Environmen
t
Join more contract of constructing sport even and offer impressive designs
with various physical aesthetics provided by red Bull.
Moreover, Red Bull should create and redesign its online store to
implement personalised tastes. The site should also have web assistance
where online customers can interact with a member of staff.
Table 3 Recommended Marketing Mix
6. Evaluation & Control
Implementing a marketing strategy and running an advertising campaign contemporaneously
can help Red Bull performs well. The effectiveness of the strategies mentioned above will
need to be monitored and evaluated through a combination of financial results every quarter.
13
Price
The company should have some substantial price reductions or discounts
event in the year.
For certain well-established product, Red Bull can increase the prices as
customers can pay a higher price. Besides, Red Bull can offer the right mix
of product features, quality, and service combination at a fair price. For
example, offering option: customers can have an initial product experience
at an accessible price.
Place
Bull Red should generate more revenues from its e-commerce site to make
up for the shortfall revenue due to Covid 19. However, it is recommended
that the company keeps distributing through channel partners such as
wholesalers, retailers, logistics companies, and distribution agents.
Promotion
The company should continue to focus on digital marketing, especially
Social Media marketing, due to its high effectiveness for millennials
(Silvia 2019). In addition, red Bull’s marketing promotions should have
more creative campaigns for around an ongoing series of new events to
continually promote the product to drive more sales even though the
maturity stage.
People
Various departments are involved in the organisation for production,
marketing, operations and overall management. Red Bull should care for
its employees to deliver quality outcomes and take the organisation to the
next level (Hollensen 2015).
Process
Red Bull should improve the process of communication with athletes,
professionals and make them share their reasons for accompanying Red
Bull, which drives loyalty and consumer engagement (Hollensen 2015).
Physical
Environmen
t
Join more contract of constructing sport even and offer impressive designs
with various physical aesthetics provided by red Bull.
Moreover, Red Bull should create and redesign its online store to
implement personalised tastes. The site should also have web assistance
where online customers can interact with a member of staff.
Table 3 Recommended Marketing Mix
6. Evaluation & Control
Implementing a marketing strategy and running an advertising campaign contemporaneously
can help Red Bull performs well. The effectiveness of the strategies mentioned above will
need to be monitored and evaluated through a combination of financial results every quarter.
13
Suggested key performance indicators and their role in monitoring the marketing strategies
are summarised in Appendix 1.
7. Conclusion
Due to COVID-19, the revenue of Red Bull had been affected dramatically, so it is necessary
to make a strategic marketing plan to recover market share and boost the sale after the
pandemic. This report presents a marketing strategy for the company that will involve using
tactics and evaluating the result to get the objectives. At the same time, Red Bull can also
apply these strategies in enlarging Zero sugar drink's market share due to the growing health-
conscious drink after Covid 19. Furthermore, in the next year, it is necessary to 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, Red Bull should create a website for online sales to increase demand
due to the convenience and have web assistance where online customers can interact with a
member of staff. Finally, this report also recommends that the company keep features, quality
of the drink at a fair price and maximizing awareness through campaigning to make it unique
in the UK's energy market.
References
1. Alec C. (2019), Benefits of effective marketing campaigns [online] available from
https://mytekrescue.com/benefits-of-effective-marketing-campaigns/ [5 June 2021]
14
are summarised in Appendix 1.
7. Conclusion
Due to COVID-19, the revenue of Red Bull had been affected dramatically, so it is necessary
to make a strategic marketing plan to recover market share and boost the sale after the
pandemic. This report presents a marketing strategy for the company that will involve using
tactics and evaluating the result to get the objectives. At the same time, Red Bull can also
apply these strategies in enlarging Zero sugar drink's market share due to the growing health-
conscious drink after Covid 19. Furthermore, in the next year, it is necessary to 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, Red Bull should create a website for online sales to increase demand
due to the convenience and have web assistance where online customers can interact with a
member of staff. Finally, this report also recommends that the company keep features, quality
of the drink at a fair price and maximizing awareness through campaigning to make it unique
in the UK's energy market.
References
1. Alec C. (2019), Benefits of effective marketing campaigns [online] available from
https://mytekrescue.com/benefits-of-effective-marketing-campaigns/ [5 June 2021]
14
2. Chaffey, D. & Smith P.R., (2017) Digital Marketing Excellence Fifth Edition,Routledge
3. Hollensen, S., 2015. Marketing management. Harlow [u.a.]: Pearson.
4. Keller (2003). Lucozade SWOT and PEST Analysis. [online]. Available from:
https://www.ukessays.com/essays/management/lucozade-swot-pest-analysis-9909.php?
vref=1 [Accessed 4 June 2021].
5. Kong E. (2008), The development of strategic management in the non-profit context:
Intellectual capital in social service non-profit organizations, International Journal of
Management Reviews, 10 (3) (2008), pp. 281-299
6. Kingsnorth, S. (2019) Digital Marketing Strategy. 2nd edn. Kogan Page
7. Lauren M. (2021) Consumer demand for sustainable packaging holds despite pandemic
[online] available from https://www.drinklavit.com/blog/the-rise-of-energy-drinks [5 June
2021]
8. Lal, 2007, ‘Energy Drinks: An Assessment of Their Market Size, Consumer
Demographics, Ingredient Profile, Functionality, and Regulations in the United States’,
Comprehensive reviews in food science and food safety, vol. 9, pp 303-317
9. Mavrokefalidis, D. (2020) Almost Half Of UK Consumers Seek More Eco-Friendly
Products Energy Live News [online] available from
<https://www.energylivenews.com/2020/02/23/almost-half-of-uk-consumers-seek-more-eco-
friendly-products/> [5 June 2021]
10. O’Brien (2008), Mintel (2009), ‘Energy Drinks: An Assessment of Their Market Size,
Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United
States’, Comprehensive reviews in food science and food safety, vol. 9, pp 303-317
11. Rumelt, R. (2017) Good Strategy, Bad Strategy. London: Profile Books
12. Russell V. (2018) Government to ban energy drink sales to children in England [online]
available from <https://www.theguardian.com/business/2018/aug/29/ban-sale-energy-drinks-
to-children-uk-government-combat-obesity> [04 June 2021]
15
3. Hollensen, S., 2015. Marketing management. Harlow [u.a.]: Pearson.
4. Keller (2003). Lucozade SWOT and PEST Analysis. [online]. Available from:
https://www.ukessays.com/essays/management/lucozade-swot-pest-analysis-9909.php?
vref=1 [Accessed 4 June 2021].
5. Kong E. (2008), The development of strategic management in the non-profit context:
Intellectual capital in social service non-profit organizations, International Journal of
Management Reviews, 10 (3) (2008), pp. 281-299
6. Kingsnorth, S. (2019) Digital Marketing Strategy. 2nd edn. Kogan Page
7. Lauren M. (2021) Consumer demand for sustainable packaging holds despite pandemic
[online] available from https://www.drinklavit.com/blog/the-rise-of-energy-drinks [5 June
2021]
8. Lal, 2007, ‘Energy Drinks: An Assessment of Their Market Size, Consumer
Demographics, Ingredient Profile, Functionality, and Regulations in the United States’,
Comprehensive reviews in food science and food safety, vol. 9, pp 303-317
9. Mavrokefalidis, D. (2020) Almost Half Of UK Consumers Seek More Eco-Friendly
Products Energy Live News [online] available from
<https://www.energylivenews.com/2020/02/23/almost-half-of-uk-consumers-seek-more-eco-
friendly-products/> [5 June 2021]
10. O’Brien (2008), Mintel (2009), ‘Energy Drinks: An Assessment of Their Market Size,
Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United
States’, Comprehensive reviews in food science and food safety, vol. 9, pp 303-317
11. Rumelt, R. (2017) Good Strategy, Bad Strategy. London: Profile Books
12. Russell V. (2018) Government to ban energy drink sales to children in England [online]
available from <https://www.theguardian.com/business/2018/aug/29/ban-sale-energy-drinks-
to-children-uk-government-combat-obesity> [04 June 2021]
15
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13. Simon H. (2019). The new kid in town. [online]. Available from:
https://www.thegrocer.co.uk/category-reports/the-new-kid-in-town-energy-drinks-category-
report-2019/593895.article [Accessed 4 June 2021].
14. Silvia, S. (2019) "The Importance Of Social Media And Digital Marketing To Attract
Millennials’ Behavior As A Consumer". JOURNAL OF INTERNATIONAL BUSINESS
RESEARCH AND MARKETING 4 (2), 7-10
15. Wenner & Jackson (2009). Lucozade SWOT and PEST Analysis. [online]. Available
from: https://www.ukessays.com/essays/management/lucozade-swot-pest-analysis-9909.php?
vref=1 [Accessed 4 June 2021].
Appendix 1: Monitoring & Evaluation of the effectiveness of the Red Bull
marketing strategy
16
https://www.thegrocer.co.uk/category-reports/the-new-kid-in-town-energy-drinks-category-
report-2019/593895.article [Accessed 4 June 2021].
14. Silvia, S. (2019) "The Importance Of Social Media And Digital Marketing To Attract
Millennials’ Behavior As A Consumer". JOURNAL OF INTERNATIONAL BUSINESS
RESEARCH AND MARKETING 4 (2), 7-10
15. Wenner & Jackson (2009). Lucozade SWOT and PEST Analysis. [online]. Available
from: https://www.ukessays.com/essays/management/lucozade-swot-pest-analysis-9909.php?
vref=1 [Accessed 4 June 2021].
Appendix 1: Monitoring & Evaluation of the effectiveness of the Red Bull
marketing strategy
16
Indicators KPI How to evaluate
E-commerce sales sales volume, sales revenue,
percentage of total sales
Monitored monthly from monthly
financial statements. These KPIs will
allow the company to monitor if they
will achieve their financial goals.
Financial raios Gross Profit Margin; Inventory
ratio; Net Profit Margin
Distribution Number of retails selling Red
Bull product
important as the company needs to
increase its market shares.
Accession Number of social media
followers
Using specialised Social Media
Management tools to moritor and
ensure that increased customer
interactions are taking place, while also
gathering customer feedbacks and
opinions.
Social Media interactions
Adviserting
campaign
The number of campain and
people participate in
Data collected from Organization
commitee
Online survey The satisfaction level of
consumers
Form quarterly online surveys to collect
consumers' opinions on product quality
17
E-commerce sales sales volume, sales revenue,
percentage of total sales
Monitored monthly from monthly
financial statements. These KPIs will
allow the company to monitor if they
will achieve their financial goals.
Financial raios Gross Profit Margin; Inventory
ratio; Net Profit Margin
Distribution Number of retails selling Red
Bull product
important as the company needs to
increase its market shares.
Accession Number of social media
followers
Using specialised Social Media
Management tools to moritor and
ensure that increased customer
interactions are taking place, while also
gathering customer feedbacks and
opinions.
Social Media interactions
Adviserting
campaign
The number of campain and
people participate in
Data collected from Organization
commitee
Online survey The satisfaction level of
consumers
Form quarterly online surveys to collect
consumers' opinions on product quality
17
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