Marketing Proposal & Plan: Red Bull's Strategy in Australia (MKTG6002)

This report presents a comprehensive marketing plan for Red Bull in the Australian market, analyzing various facets crucial for its success. It begins with an introduction outlining the assignment's objectives, followed by an overview of Red Bull's credentials, including company background and market acquisition history. A detailed situation analysis is conducted, encompassing SMART objectives and market trends, particularly digitalization and sustainability. Environmental analysis, including SWOT and PEST analyses, provides insights into internal strengths and weaknesses, as well as external political, economic, social, and technological factors. The competitive strategy is evaluated using Porter's Five Forces. The marketing strategy is dissected through the 7Ps marketing mix and STP analysis, segmenting, targeting, and positioning the brand. The financial plan, including budget estimations, is also included. The report concludes with an evaluation of the marketing mix's impact on consumer behavior and the role of marketing in embedding sustainability and social justice principles. Finally, a reflexive activity discusses the outcomes of the social enterprise investigation.

MKTG6002 MARKETING
PROPOSAL MARKETING PLAN
STUDENT NAME
STUDENT ID

Table of Contents
1. Introduction:............................................................................................................................ 3
2. Credential analysis:.................................................................................................................3
2.1 Company overview:.............................................................................................................. 3
3. Situation analysis:...................................................................................................................4
3.1 SMART Objective100........................................................................................................... 4
3.2 Market Trends:......................................................................................................................4
4. Environment Analysis............................................................................................................. 5
4.1 SWOT analysis..................................................................................................................... 5
4.2 PEST analysis.......................................................................................................................6
5. Competitive Strategy Analysis:............................................................................................... 7
5.1 Porter’s Five Force Analysis100:..........................................................................................7
6. Market strategy analysis.........................................................................................................8
6.1 Marketing Mix 7Ps Analysis..................................................................................................8
6.2 STP analysis.........................................................................................................................9
9. Critical evaluation regarding the impact of the application of the marketing mix on consumer
behaviour.................................................................................................................................. 18
10. Evaluation of the role of marketing in embedding principles of sustainability, ethics and
social justice within an organisation..........................................................................................18
11. Significance of the marketing plan of social enterprise that can add value to the contextual
organisation.............................................................................................................................. 19
12. Conclusion:......................................................................................................................... 19
13. Reflexive activity discussing the outcomes of the social enterprise investigation and its
application.................................................................................................................................20

1. Introduction:
The aim of this assignment is to understand the different aspects of a marketing plan. The
application of the marketing theory into a real life scenario is also covered in this assignment.
With a view to clearly understand the different theories and models associated with the
marketing, an illustration of the Red Bull in Australia is drawn. In the beginning of the
contextual marketing plan, the credentials of the chosen organisation are proffered which is
followed by the situation analysis as the evaluation of the SMART objective. As the assignment
precedes the environmental analysis, the competitive strategy analysis, marketing strategy
analysis, financial analysis as well as monitoring and control are discussed.
2. Credential analysis:
2.1 Company overview:
Figure 2: Red Bull Logo
(Source: Red Bull, 2017)
Red Bull GMbH is an Australian energy drink seller company that is established in the year
1987. In the due course of the history, the organisation has secured many a number of
achievements. As per the marketing statistics noted during the year of 2013 5.387 billion cans
have been sold (Gorse et al. 2017, p.12). The organisation slow but steadily acquire the global
market. At the present day, they are the market leader in the contextual sector of energy
drinks. Apart from manufacturing the energy drinks, the contextual organisation has marketed
a number of additional products such as publishing sports magazine and mobile phone
service. Their dedication helps them to achieve the huge success. Presently approximately 30
billion cans are sold in 160 countries (Red Bull, 2017). This is also considered as the best
sports drinks by many sports person.
Chronological list of market acquisition
Year Available in country Significant market

1987 1 Australia
1992 3 Singapore
1995 15 Hungary
1998 45 Germany
2001 73 United Kingdom
2004 124 Unites States
2009 160 Asia
Table 1: Chronological list of market acquisition
(Source: Gorse et al. 2017, p.23)
3. Situation analysis:
3.1 SMART Objective100
SMART Objective set by Red Bull Marketing team in Australia
Specific Red bull is determined to serve its customer with clarity and authenticity
Measurable Red Bull is also strong-minded to reach all the corners of the world as well as
increases the availability in the country.
Achievable In order to achieve the desired goal, the global market trends are studied and
marketing plan is made accordingly.
Realistic The organisation also plans to achieve the desired goal on the basis of the
proposed marketing plan.
Time bound The marketing plan proposed is intended to achieve by a year.
Table 2: SMART Objective set by Red Bull Marketing team in Australia
(Source: Gorse et al. 2017, p.22)
3.2 Market Trends:
The contemporary societies are more into digitalisation. Their day starts with scrolling different
social media platform. Moreover, the people from the contemporary society depends more on
the development of the technology (Huang and Sarigöllü, 2014, p.39). According to the current
statistic, it has been seen that 94% Australians have direct access to the internet among them
69% in between the age group of 25-34 preferred shopping on an online platform. It is also
important to be mentioned here that digitalisation is an important strategy to manage the
marketing plan (Leonidouet al. 2013, p.151). With a view to catching the contemporary trends,
the contextual organisation adjusted their digital marketing strategy, along with the utilisation of

the social media platform more promotional purpose, they also showcase, blogs, music and
video contents in their online presence. Through the digital platform, the contextual
organisation tries to maintain a two way relationship with its customer. Apart from the
digitalisation, the other market trends are health awareness andenvironmental sustainability
(Sargeant and Jay, 2014, p.23). Unlike people from the previous era, today's generation is
more conscious about their surroundings. Various alarming signs of the environmental decay
make the today’s generation care about nature (Bejou and Palmer, 2013, p.90). Keeping in
mind this the contextual organisation employ various environment saving strategy such as
usage of 80% renewable resources, utilisation of smart transportation as for example train or
ship to minimise CO2 emissions thus carbon footprint. Moreover, the organisation also
supplies 313.000 ECO-cooler around the ecosphere to lessenthe effects of the greenhouse
gases (Junttila and de Sauvage, 2013, p.346).
4. Environment Analysis
4.1 SWOT analysis
SWOT analysis of the Café Yogurt
Strength The contextual organisation, Red bull is able to maintain a strong brand image
in the global market. They are also the market leader with a wide variety of
flavour in affordable price. Their promotional strategy comprises sports person
endorsement and sponsoring number events also make their brand visible to
their target customer.
Weakness The product portfolio that the contextual organisation maintains is not up to
the mark as the variety of available product is very less. The caffeine contents
in the drinks also create controversy.
Opportunity There is an opportunity to make the extension of the product and launch the
brand in many virgin markets.
Threat High levels of competition accompanied by negative publicity are the key
threats to the organisation.
Table 3: SWOT analysis of the Red Bull in Australia
(Source: Zalengera et al. 2014, p.335)

Figure 2: SWOT analysis as internal environmental analysis
(Source: Zalengera et al. 2014, p.335)
4.2 PEST analysis
Figure 2: PEST analysis as External environmental analysis
(Source: Sargeant and Jay, 2014, p.23)
PEST analysis of the Red Bull in Australia
Political As per the recommendations of the Food Standards Australia New
Zealand (FSANZ) 201, mg caffeine is allowed per day per adult.
However, there is no legislation that limits the consumption of

caffeine.
Economical Energy drinks are one of the fastest growing industries in the
contemporary global economy. The increased purchasing power of
the youth along with the high industry margin supports the growth.
Social The higher inclination of the contemporary youth for energy drinks.
Technological Development of the e commerce and the social media marketing
also back up the marketing strategy adopted by the contextual
organisation.
Table 4: PEST Analysis of the Red Bull in Australia
(Source: Sargeant and Jay, 2014, p.32)
5. Competitive Strategy Analysis:
5.1 Porter’s Five Force Analysis100:
Figure 3: Porter’s five force analysis as Competitive environmental analysis
(Source: Eitenmiller et al. L., 2016, p.31)
Porter’s five force analysis of the Red Bull in Australia
Bargaining power of the buyer High As lots of alternatives to the energy drinks are
present

Bargaining power of the supplier Low As the company is present in global market
Threats of new entrants High As the initial investment for the establishment is
high
Threats of substitution High As the customer has many options to switch over
Competitive rivalry High Saturated market
Table 5: Porter’s five force analysis of the Red Bull in Australia
(Source: Eitenmiller et al. L., 2016, p.31)
6. Market strategy analysis
6.1 Marketing Mix 7Ps Analysis
Marketing Mix 7Ps of the Red Bull in Australia
Product Red Bull Energy Drink
Red Bull Zero Calories
Red Bull Sugar Free
Red Bull Editions: blue, tropical, and orange editions
Red Bull Simply Cola
Price Premium pricing strategy. The high price stands for not compromising
attitudes with the quality
Promotion The organisation employs both online as well as an offline promotional
activity to connect with their target customer.
Place Available in more than 160 countries. The company also holds a good
amount of sponsorship deal with a sports club, night club, companies
as well as a bar.
People They connect with the people associated with them through various
events. They possess a loyal base of employees as well as the
customer who are satisfied with the marketing strategy as well as the
product offered by the organisation.
Process Their entire business activity focused on the customers’ satisfaction. In
order to fulfil the same purpose, the company has employed a number
of researches and developmental strategy.
Physical evidence The can is attractively designed to provide a high energy feel to the
customers of the contextual organisation.
Table 6: Marketing Mix 7Ps of the Red Bull in Australia
(Source: Zhao et al. 2015, p.54)

6.2 STP analysis
Figure 5: Market Segmentation
(Source: Huang and Sarigöllü, 2014, p.39)
6.2.1 Segmentation;
In accordance with the needs of the customer, the contextual organisation has segmented the
entire market by the demographics age and occupation. The behaviour wise as well as the
geographic segmentation is also done(Tuomisto et al. 2012, p.3090).
6.2.2 Targeting
On the basis of the segmentation, the contextual organisation has targeted the people from the
age group 18-35 who are associated with sports or physical fitness activity. They also targeted
those people who are likes to have caffeine for elevated energy on a daily basis(Westhoek et
al. 2014, p.196).

High
price
High brand image
Low
price
Low brand image
6.2.3 Positioning
The product is positioned in the high price high quality quadrants of the Perceptual map 1
(Brand image VS price). This positioning helps the organisation to devour a competitive edge
over its competitors (Beneke et al. 2013, p.218).
Perceptual Map
Product Advertisement Brand
awareness
Flavour Package
V 5 5 5 5
Red Bull 5 5 5 5
Mother 5 4 4 5
Buzz Monkey 3 3 3 3
Table 7: Customers’ opinion regarding the Advertisement, Brand awareness, Flavours as well
as Packages (1= lowest score, 3 = average score, 5 = highest score)
(Source:Gorse et al. 2017, p.12)

Extraflavours
Attractive packages
image
Lessflavours
Dull packaging
Figure: Perceptual map1 (Brand image VS price)
(Source: Gorse et al. 2017, p.12)
Figure: Perceptual map 2 (flavours VS packages)
(Source: Gorse et al. 2017, p.12)

Great Brand Awareness
Extensive Advertisements
Little Brand Awareness
Insufficient Advertisements
Figure 1: Perceptual map 3 (Advertisements VS brand awareness)
(Source: Gorse et al. 2017, p.12)
7. Financial plan for marketing strategy of Red Bull in Australia
Red Bull is one of the biggest names in the energy drink industry which has been planning to
expand the business all over the Australian market and an adaptation of a marketing plan is
needed for the execution of the objective (Zhao et al. 2015, p.54). A financial plan or budget
estimation regarding the marketing plan of Red Bull in the Australian market has been
deliberated in the following discussion. Budget estimation is needed for the understanding of
the expenses needed for the promotion of Red Bull in the Australian market (Bowen and Chen
McCain, 2015, p.415). Hence a realistic and accurate budget plan is important for the success
of the marketing plan in the target market. An effective budget regarding marketing plan is
needed which reduces the risk of taking a harsh decision during the execution of the marketing
plan (Zalengeraet al. 2014, p.335). The inference from the marketing mix helps the

management to determine the budgeting areas in terms of product specification, product
pricing, target location and promotional activity (Carter et al. 2014, p.185). Therefore, the
budget elements are quite clear and distinctive for the understanding of the financial
involvement and feasibility of the plan in the Australian market.
Budget
particulars
Monthly percentage expenditure
Total
Budg
et
Per
month
allocati
on
Ja
nu
ar
y
Fe
bru
ary
Ma
rch
Apr
il
Ma
y
Ju
ne
Jul
y
Au
gu
st
Sep
tem
ber
No
ve
mb
er
De
ce
mb
er
Market
survey
157
0 8.30%
7
%
8.5
6%
7.9
0% 8%
9.3
0%
8.3
0% 7% 0% 0% 5% 0%
Market
analysis
230
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
marketing
plan
developme
nt 900 8.30%
7
% 8% 6% 8% 7% 6% 8% 9% 0% 0% 0%
Brand
framework
developme
nt
189
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
Marketing
tools and
software
350
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
Maintenanc
e cost 750 8.30%
7
%
8.5
6%
7.9
0% 8%
9.3
0%
8.3
0% 7% 0% 0% 5% 0%
operation 560 8.30% 7 7% 4% 4.8 9% 0% 0% 0% 5% 0% 0%

and
developme
nt cost 0 % 0%
public
relation
activity
350
0 8.30%
7
% 8% 6% 8% 7% 6% 8% 9% 0% 0% 0%
online
marketing
activity cost
120
0 8.30%
7
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
Holdings
and
banners
250
0 8.30%
7
% 8% 6% 8% 7% 6% 8% 9% 0% 0% 0%
television
commercial
s
650
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
print media
promotion
310
0 8.30%
7
%
8.5
6%
7.9
0% 8%
9.3
0%
8.3
0% 7% 0% 0% 5% 0%
Content
developme
nt
125
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
Agency free
300
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
Sponsorshi
p cost
450
0 8.30%
7
%
8.5
6%
7.9
0% 8%
9.3
0%
8.3
0% 7% 0% 0% 5% 0%
co-
ordination
cost
140
0 8.30%
7
% 8% 6% 8% 7% 6% 8% 9% 0% 0% 0%
Membershi
p and
association
350
0 8.30%
5
% 7% 4%
4.8
0% 9% 0% 0% 0% 5% 0% 0%
469 28 35 25 29 15 15 16 99 124 552 0

60
17
.6
70.
06
5
30.
31
5
61.
24
2
80.
06
6
80.
06
6
57.
41
2
4.4
47
1
3.0
59
.47
06
Table 8: Financial plan for marketing strategy
(Source: Created by author)
8. Monitoring and control for marketing strategy of Red Bull in Australia
Particulars Duration Budget Responsible person
Market survey 5% 1570 Third party
Market analysis 5% 2300 Finance manager
marketing plan
development
10% 900 Marketing manager
Brand framework
development
10% 1890 Brand strategist
Marketing tools and
software
5% 3500 Third party
Maintenance cost 8% 750 Software
development
operation and
development
5% 5600 Operational
manager
public relation activity 10% 3500 Marketing manager
online marketing activity 12% 1200 Marketing manager
Holdings and banners 5% 2500 Marketing manager
television commercials 10% 6500 Marketing manager
print media promotion 5% 3100 Marketing manager
Content development 3% 1250 Third party
coordination 5% 1400 Marketing manager

Membership and
Association
2% 3500 Marketing manager
Table 9: Monitoring and control plan for marketing strategy of Red Bull in Australia
(Source: Created by author)
Time plan for marketing strategy of Red Bull in Australia
Tasks days
0-
10
1
0
-
2
5
2
5
-
3
5
35-
47
47-
56
56-
68
68-
79
79-
100
100-
120
120-
130
130-
150
Market survey
Market analysis
marketing plan development
Interior design development
Brand framework
development
Operation and development
public relation activity
Marketing and promotional
plan
television commercials
Content development
coordination
Membership and Association
Table 10: Time plan for marketing strategy
(Source: Created by author)

9. Critical evaluation regarding the impact of the application of the marketing mix on
consumer behaviour
The Red Bull is one of the leading companies in the energy drink industry. Red Bull
management has developed a marketing mix on the basis of the Australian market. The
understanding of the consumer buying behaviour in the Australian market has been a mixed
revelation. The initial appeal of energy drinks mainly confined to a young population, sports
persons and random consumers who want to test it out of curiosity (Huang and Sarigöllü,
2014, p.39). Therefore the marketing mix development has been done on the basis of loyal
target customers such as young population and sports person. The outline of the marketing
plan and product design has been developed for the penetration of the sports and young target
market. There has been a lucrative and attractive design concept has been developed for the
appealing the target consumers (Leonidou et al. 2013, p.151). Red Bull has been entering the
Australian market for the first time and therefore the pricing for the 8 ounces of the Red Bull
has been developed comparatively on the lower side for the competitive advantage over other
energy drink closest competitors. The primary impact on the Australian consumers is a mixed
one where a certain amount of the population has been trying the drink and accepted as a low
priced energy drink available in the market. Therefore, Red Bull could acquire a competitive
market share compared to other competitors in the market (Junttila and de Sauvage, 2013,
p.346).
10. Evaluation of the role of marketing in embedding principles of sustainability, ethics
and social justice within an organisation
The basic development of the energy drink is to provide a caffeine based drink containing B
group vitamins, sugar, taurine and alpine water. Therefore, the basic constitution of the Red
Bull is to provide high energy instantly when needed. Apart from that, marketing ethics could
be defined as the application of social ethics in the field of marketing and promotional activity.
The Primary target customers are the young generation of Australia (Westhoek et al. 2014,
p.196). Therefore, the marketing and promotional campaign should be in line with the social
ethics as the product contains caffeine which is permissible with a certain limit. Therefore, the
organisation needs to develop the marketing and promotional activity including the product
specifications on the basis of social norms and justice (Junttila and de Sauvage, 2013, p.346).

Red Bull need to provide contains the product for the acknowledgement of the user and letting
them understand the effect of consuming the drink on their health.
11. Significance of the marketing plan of social enterprise that can add value to the
contextual organisation
The tag line of Red Bull which the organisation adopted for the promotion of the product is “
Red Bull gives you wings” which the organisation has been following for the decade of social
activities. Various outdoor sports activities and events have been sponsored by the
organisation for promoting the sports and the product itself (Bowen and Chen McCain, 2015,
p.415). Many social responsibilities have been done by the organisational suitable for social
acceptability as well as adaptability. Therefore, in the social aspect, Red Bull has been playing
a significant role in promoting and support activities which are essential for the community.
One of the major contributions in social arena is to support the cutting edge research for the
development of the treatment procedure for spinal cord injury (Westhoeket al. 2014, p.196).
Red Bull has been funding the project almost for 11 years which has a huge social impact in
the target market.
12. Conclusion:
From the above discussion, it has been concluded that the marketing plan of Red Bull has
been very significant for the market expansion procedure as well as international market
penetration. Various tools and strategies have been deployed for the development of the
marketing plan which needs to be executed in the span of 12 months. Therefore, strategic
development of a marketing plan would be helpful to understand the market scenario and
helps to develop factors important for market sustainability and competitive advantage.

13. Reflexive activity discussing the outcomes of the social enterprise investigation and
its application
The major inferences that could be drawn from the above discussion are that the sustainability
of a product or an organisation in the target market depends on the various strategic approach
and contribution of the management people in organised fashion. I have comprehended one
important lesson from the discussion that the marketing principles and the application while
promoting a product are the primary objectives of a marketing plan development. A strategic
approach to the product specification and market research is quite important for the
understanding of the market and sustainability of the product in the current market scenario. I
also have noticed the importance of the understanding of the market trend and buying nature
of the target consumer for formulating the product and price specification. Therefore it is
important to understand the market environment through the implementation of the various
analytical tools such as SWOT where strength, weakness, opportunity and threat could be
analysed and hence the product has been a design on the basis of the analysis for improvising
the findings. I have minutely analysed the external business environment for the sustainability
of the product in the Australian market which is very significant for the comprehensive
development of the marketing plan. The contemporary business market is highly competitive in
almost any industry which needs to be analysed for the understanding of the degree of
competitiveness in the market along with the factors which could be deployed for the
competitive advantage. Porter's Five Force Analysis is one of the significant tools for the
evaluation of the competitive advantage in the chosen market which helps to derive the factors
that could help to achieve the advantage over other competitors in the market. I have utilised
two important marketing analysis tools such as marketing mix and STP analysis for the
development of the product specification and understanding the pricing range suitable for the
market. I have developed a financial analysis of the marketing plan for projecting an
approximate expenditure for the marketing plan execution. I have learned an important factor
from the above discussion that the monitoring and control of the whole marketing plan
execution are very important for the proper implementation and controlling the expenditure.
The market sustainability of Red Bull in the Australian market depends on few principles which
predominately depend on the innovation and technology adaptation, collaboration, process
improvisation etcetera. Technological adaptation of the management regarding the survey and

analysis has been very useful for understanding the actual scenario of the market whereas
various social media and online based marketing tools also have been used for the marketing
purpose. On the other hand collaborations with various marketing campaigners and social
events will create e social attraction among the young population. The development process of
Red Bull has been improvised for faster production and productivity which is very significant for
the market sustainability. Therefore I have understood the importance of marketing ethics in
line with the social norms and involvement of the organisation in the social activities and issues
would help to increase the acceptability of the product.

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