Marketing Plan of Red Bull - Research Paper Example

Section/# Introduction Prior to any degree of success being realized due to the introduction of a new product or product line, the firm in question must thoroughly research the market as well as the potential consumers of whatever good or service they are attempting to integrate with the consumer base. As a function of this level of research, it is possible for the firm or entity to gain key insights into the best ways in which a given product or product line is able to be integrated and prove to provide an overall increase in profitability. As a function of such an understanding for the need of research and understanding with regards to the markets and the consumer tastes, the following brief summary will detail the market as it exists for Red Bull energy drinks. By providing an overview of the geographical markets, overall sales/market share, expectation for future sales growth, profitability potential, and seeking to analyze and understand the firm’s geographic growth strategy, the reader/researcher is able to determine a great deal with regards to what may take place within the future without ever having to suffer the risk and danger of blindly testing a highly costly product line in a market or with a given demographic of the consumer base that would ultimately reject it. Description of Company Begun in 1987, Red Bull is a European firm with headquarters just outside Sulzberger Austria. In such a way, it comes as no surprise that the full power of the most potent geographic market for the firm’s offerings exists within the continent of Europe. Although the firm has experienced a great deal of growth worldwide and is now exhibited over 100 nations, the fact of the matter is that the product has been integrated with the European market now for over 20 years. In such a fashion, for many of the nations in Europe, Red Bull exhibits nearly 90% market share with regards to energy drinks. Similarly, due to the fact that European population is larger than the American population, the overall level of sales within Europe is also greater than the overall level of sales within the United States (Kemp 13). However, when one considers the continent of North America as compared to the continent of Europe, Red Bull experiences a higher level of sales, albeit a lower market share, within this geographic region. Naturally, with respect to the different product offerings and individualized geographic sales strategies and formulations that the energy drink giant puts forward, there are only a few comparisons between the parent company and many of the product offerings that exist within smaller and more diversified markets. However, regardless of the differentials that exist, the main product offering that has proven to be the defining success of the brand is nonetheless equally represented in every single market that the firm operates within. Mission Statement “We are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organisation as an employer of choice” Products and Services Although it is ultimately the intention of Red Bull to engage in a broad marketing plan that will see each and every one of its sectors grow in overall sales, the purpose of this specific strategy is with regards to seeking to leverage a degree of the health supplement market that is currently experienced such a high level of growth. In such a way, introduction of a new product line and effective marketing of this will depend mainly upon focusing and refocusing the attention of any and all marketing activities into a process of rebranding and integration within such a market. Financial Feasibility With regards to the financial outlook and the means by which the firm can seek to recover in the eventuality that such a marketing plan is a failure, the approach will maintain something of a conservative financial stance. What is meant by this is the fact that the company will not attempt to penetrate the market entirely and completely all in one full action. Rather, incremental adjustments will be made as a means of proving on a quarterly and annual basis whether the strategy that is thus far been engaged is ultimately effective or ineffective in sponsoring a level of market integration that was first sought after. Strategic Focus and Plan Mission/ Vision The ultimate mission and vision that is sought to be derived from the strategic focus and marketing plan which is thus far been discussed is naturally a further market share of health and energy beverages that are experiencing such a rapid level of growth around the globe. Success within such a mission or overall vision will be determined based upon whether or not a degree of integration and consumer loyalty is able to be derived within the first several quarterly reports with regards to this market penetration effort. Objectives In such a way, the ultimate objective of this particular marketing plan is to engage at least 150,000 individuals with an awareness of the new product and hopefully translate this awareness into an increase in sales within the marketing question of around 20,000 units. Although such an injury is modest, as has been discussed previously with regards to the financial portion of this analysis, it is the understanding of this author that a modest and conservative approach is traditionally the best with regards to seeking to mitigate the overall potential losses that could be derived from a failed entry. Competitive Environment with regards to the competitive environment that necessarily exists for Red Bull within this particular market, it must be noted that nearly each and every provider of health supplements and energy drinks would necessarily be in indirect competition to Red Bull. This is of course due to the fact that this particular market which is being discussed is virtually permeated by a litany of very small firms that seek to leverage their products with regards to the given market needs. However, there do exist and number of subsidiary firms that are owned by branches of PepsiCo and Coca-Cola that could necessarily bring to bear a large level of financial resources in seeking to keep Red Bull out of the market entirely. In such a way, the overall level of competition as compared to the drink market in which Red Bull already competes is an order of magnitude less than what exists within the health supplements sector; however, this should not be understood as a means of optimism with regards the overall level of market share that Red Bull can hope to derive within the very first few quarters of entry into the market. Additionally, the level of competition that exists within this environment and the overall level of consumer choice that exists with regards to the number of products is yet another reason why a conservative strategy of market integration has been adopted within this analysis and marketing plan. Competitive Analysis/Situational Analysis one of the most effective means by which Red Bull can attempt market against the other entrants in the market is with regards to the fact that Red Bull has a more easily and readily discerned brand image than do the litany of other companies are currently offering health supplements. Although should not be the goal of this competitive/situational analysis to rest upon the laurels of what Red Bull has already accomplished, it is nonetheless important to leverage this cute asset as a means of promoting and differentiating the competition as compared to the strength and resiliency that the Red Bull brand brings to the current market question. Market Product Focus Marketing Objectives as such, the marketing injected that is sought to be engendered is not merely with regards to turning quick profit. Rather, it is also of high interest to the firm to seek to develop and differentiate the current and existing product offerings that Red Bull has available. Due to the fact that no company is able to continue to exist without differentiation and development of new and existing markets, is the goal of Red Bull to affect such an end within the chosen market in question. In such a way, the following number listing should integrate with the reader/analyst an understanding of what the step-by-step process Red Bull hopes to achieve will ultimately look like once initiated. 1) Development of product lines 2) Branding strategies discussed and agreed upon 3) Pilot studies within key demographics 4) Selection of geographic region to be engaged 5) Promotion in specially determined outlets 6) Final launch 7) Quarterly reviews 8) Growth and change strategies incumbent upon analysis and feedback from the market research Target Markets Due to the fact that Red Bull energy drinks have traditionally been drunk by a younger demographic, one of the key demographics that the firm seeks to integrate with is the over 40 demographic. In such a way, seeking to penetrate this but the current market is a perfect means by which this goal and further market share can hopefully be developed in one fell swoop. Although market research and pilot studies will be necessary in order to determine specifically what target markets will best be suited, the geographic region will remain unknown and undetermined until the analysis comes back with the determinant understanding of the situation and growth of the environment question. However, perspective the target demographic market, the entire premise of this marketing expansion and product integration is built upon the premise that the growth and development of the firm would best be served by integrating this particular demographic and age group. Marketing Program Product Strategy Similarly, with regards to the way in which such products are able to benefit the company in question, it is the understanding of this analyst that the growth and development within this but it would sector which is been referenced is a natural progression of the key strengths and resilient activities that the firm has displayed of the past several decades. Although it is the hope of this marketing plan, as well as the firm in general, that each and every one of the product lines which will be watched will be ultimately successful, the reality the fact is that it is the anticipation of the analysis that those product lines which will achieve the greatest level of success integrally tied to the overall level of success that prior Red Bull products have been able to achieve. What is meant by this is the understanding that the products which will likely do the best will be those energy supplements that also contain vitamins and minerals as well as. Although it may take longer for the other box to catch on, it is the hope of belief of this analysis that ultimately the overall level of profitability exhibited between these lines will begin to even out time. Naturally, as a way beating the competition, Red Bull will have to leverage its brand image and credibility as a means of differentiating itself and drawing question to whether or not the competition is ultimately safe or reliable. Price Strategy due to the fact that red bull will be thinking of cautious and conservative entry in the market, it will be necessary to have a high costs/low turnover ratio with regards the old pricing strategy. Although this will not be able to deliver a high degree of profitability, the fact of the matter is that such an approach is the only one which will allow the marketing plan to move forward with the lowest overall exposure and the possibility of giving the consumer a welcomed benefit in the future if the line is ultimately successful and prices are able to be lowered accordingly. Promotion Strategy similarly, the promotion strategy which will be engaged with will not deviate whatsoever from the tried and proven promotion strategy which has vaulted Red Bull to such a worldwide level of the claim success. In such a way, the ultimate end user will be directly marketed to utilizing asymmetrical methods that a proven to be so effective in integrating the consumer with the red bull brand the past. An obvious outlet for such an approach would be to engage to do consumers than the environments in which supplements would be the most attractive; jams, workout centers, and outdoor theater/arenas. In such a way, the brand will need to step slightly away from its extreme sports promotional strategy in engage with a more basic and healthful approach that seeks to engender a large level of work with and potential clientele. Although this may not be easy to do effectively in a limited geographical area, it is the only approach that is reasonable given the constraints which have already been defined and related within this analysis. Works Cited Hosea, Maeve. "Running With Bulls." Brand Strategy 215 (2007): 20-23. Business Source Premier. Web. 16 Apr. 2013. Kemp, Nicola. "Marketing's One Giant Leap." Marketing (00253650) (2012): 12-13. Business Source Premier. Web. 16 Apr. 2013. McDonald, Duff, and Ira Boudway. "The Mastermind Of Adrenaline Marketing." Bloomberg Businessweek 4230 (2011): 64-70. Business Source Premier. Web. 16 Apr. 2013. Mortimer, Ruth. "Red Bull Flies To Another Level With Marketing Wins." Marketing Week (01419285) 35.44 (2012): 3. Business Source Premier. Web. 16 Apr. 2013. Solomon, Brian. "Meet The Billionaire Behind Red Bull's Death-Defying Corporate Culture." Forbes.Com (2012): 25. Business Source Premier. Web. 16 Apr. 2013. Read More