Red Bull and Energy Drinks Market - Assignment Example

The study has selected the UK as the target international destination for Red Bull in order to develop a marketing plan. In order to develop a three-year marketing plan for Red Bull, the study will focus on three key issues. Issue 1- analyze the macro and micro environmental dynamics pertinent to the UK and conduct an environmental appraisal for Red Bull. Issue 2- on the basis of environmental appraisal; identify two new target segments appropriate to Red Bull in the U.K. market. As part of new target market selection, customer profiling, age group, characteristics of the target group, and positioning of the brand ‘Red Bull’ will also be discussed.

Issue 3- on the basis of new target market selection; develop a differentiated marketing mix for each target market identified. In the report, marketing objectives and control mechanisms for individual marketing mix projected for a particular target group will also be discussed. Red Bull is regarded as the most popular energy drink across different countries in the world (Farris, 2010). Although, the Red Bull products were developed by TC Pharmaceutical during the early 1980’s Dietrich Mateschitz rejuvenated the product and established the brand as ‘Red Bull Energy Drink’ in Austria during 1981 (Red Bull, 2014a).

From the initial years, the market position of Red Bull Energy Drink was strengthened through unique positioning, integrating research and development (R&D) activities with product innovation, and customization of marketing activities (Farris, 2010). In the last 26 years, the company has established its distribution channel in more than 55 countries. As of 2012, Red Bull sells more than 5 billion cans annually (Red Bull, 2014b). During the 1980s, Red Bull was sold as medicine containing caffeine that can boost energy level upon consumption but the company has successfully repositioned the brand by streamlining the marketing activities (Mintel, 2013). As of 2014, Red Bull is being positioned as an iconic energy drink while the product portfolio of the company is being priced at a higher range in order to attract a niche target segment. Apart from selling energy drinks, Red Bull also sponsors F1 racing teams, music festivals, and sports events in order to increase brand awareness among the target market (Red Bull, 2014a). Red Bull products are being made available in a range of variants like Red F1 Edition, Red Bull Racing, Silver Edition, calorie-free edition, Cola flavor, Red Bull Energy Shot, etc (Red Bull, 2014b).