JAWAD HASSAN

MARKETING MANAGMENT

CONTENTS

1 Introduction 1.1 History 1.2 Mission Statement 1.3 Issues and Criticism 1.4 Competitor analysis 2.0 Methods 3 Analyses 3.1 Critical Review 3.2 Segmentation 3.3 Children (Humpty Dumpty) 3.3.1 4 P’s 3.4 women (Bell) 3.4.1 4 P’s 3.5 Old Ages (Cool River) 3.5.1 4 P’s 3.6 Ansoff’s Model 3.7 SWOT 3.8 STEEPLE 4.0 Findings 4.1 Conclusion 5.0 Reference

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Targeting at hip young people with active lifestyles. Improve emotional status. Red Bull claims to Increase performance. In UK it was introduced in 1994. 1. Red Bull produces the world's leading energy drink. At the same time both of partners founded Red Bull Gmb H. In 2002 they opened regional headquarter in Dubai. 2002 was a mew year for Red Bull. After that he visited Thailand and found the local energy drink he mixed that drink with his drink. it is aggressively advertised through marketing and different youth tournaments. like vitamin B.000 of savings and taking a stake in the new company. Red Bull has become a case study in successful guerrilla marketing in the United States and United Kingdom. But before launching in Europe they altered ingredients according to western taste. The first foreign market of the Red Bull was hungry in 1992. Red Bull began a revolution in the market of energy drinks. The market share of the Red Bull is 71% of the world market of energy drink. In 1982 Austrian Dietrich Mateschitz developed an energy drink. Irrespective of Red Bull if facing criticisms that it has possible health risk. Chaleo is holding 51% of the share and Dietrich is responsible for the operation of the company. At that time both of partners decided the shares ratio.JAWAD HASSAN MARKETING MANAGMENT 1 Introduction Red Bull is the most popular drink in the world. The slogan of the Red Bull shows the clear segmentation of the Red Bull that Red Bull is targeting the young’s. Stimulate metabolism. caffeine sodium. They added some ingredients in the Red Bull. The founders of the company were Thai national Chaleo and Austrian national Dietrich. though the formula began as a popular energy drink for blue collar workers in different countries like Thailand. 49% of shares were given to Chaleo and 2% shares were given to Chaleo’s son but decided that the company will operated by Dietrich. More than a thousand of the million cans years are sold in nearly 100 countries. The slogan of the Red Bull is It Gives You Wings.1 History It is the adoption of Thai energy drink which translated into Red Bull. The combination of both products was launched in 1987. and glucuronolactone. Its dominant position in the fastest-growing segment of the soft drink market in a number of countries has drawn a number of imitators. 2 . Increase concentration and reaction speed. It was launched in us in1997 and in the Middle East it was launched in Page 2000. each investing $500. Improve vigilance.

answers. “In terms of attracting new customers and enhancing consumer loyalty. As Red Bull is a privately owned Austrian company of Dietrich Mateschitz. 1. Red Bull enjoyed a 47% share of the energy drink market. In some countries. Red Bull is enjoying 80% market share. It is the most popular world in the world that more than hundred of the drinks tried to copy Red Bull. Since introducing Red Bull in 1987.Nancy Koehn. Red Bull is building a beverage brand without relying on the essential equipment of a mass-marketing campaign.com/Q/What_is_the_mission_statement_of_Red_Bull Page 3 . Professor of Business Administration at Harvard Business School.JAWAD HASSAN MARKETING MANAGMENT Now the Red Bull is working in 60 countries and expending its activities more and more. the most famous magazine Forbes declared the founder of the company as a being 260 richest person of the world. Marketing of Red Bull and position of Red Bull in the market limited the new entry of new rivals.2 Mission statement: "We are dedicated to upholding Red Bull standards. In 2003 Red Bull introduced Red Bull sugar free. and it was the basic formula that made the Red Bull famous and it got huge appreciation from drivers specially long distance drivers. In the U. and the sales are growing annually at 40%." . Perhaps the indispensable tools of marketing aren't so indispensable after all." http://wiki. The in the promotion of Red Bull. In 2008. slogan of Red Bull was that it increases the stamina and brain concentration. in 2001. while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. Mateschitz has invested heavily in building the brand. We create a culture where employees share best practices dedicated to coaching and developing our organisation as an employer of choice.S. Red Bull has a more effective branding campaign than Coke or Pepsi.

Allegedly reported that there are some adverse affect of caffeine used in the Red Bull. Improve emotional status. Red Bull trying to provided superior services in highly efficient manner and besides this they try to earn profit. They crititsized that caffeine cause insomnia nervousness headache and tachycardia. Mission statement shows that customers are most important for Red Bull like other organisations. 2009) 4 . It is very important that the company must increase the standard of the product with the passage of time and Red Bull is doing the same thing because if we see previous history of the product we can easily conclude that companies who did not maintain the standard of the product they were kicked off. A medical examination found that there were no illegal drugs in her system. While doing all this Red Bull don’t forget the most important dimension of the marketing.JAWAD HASSAN MARKETING MANAGMENT The mission statement of the Red Bull shows its goals and objectives. but had not been proven.3 ISSUES AND CRITISIMS: Health issue: People criticised that the presence of taurine negatively affects human body. Red Bull is trying to create a culture for the employees so that they can easily work in motivated environment. Red Bull claims to Increase performance. So Red Bull has a keen eye on the training and coaching of the employees. or it may have been artificially pushed over the limit by caffeine". the customers. "The QT Page levels may have grown over a few years. Red Bull may have triggered heart condition that killed student reported on the death of a 21 year-old woman who died after drinking four cans of Red Bull as well as alcohol at "social levels”. (The Daily Telegraph Feb 3. Some criticized that the use of Red Bull increases the stress inn those who have high blood pressure. It was believed. that she suffered from a rare heart condition called long QT syndrome she was on medication for epilepsy. 1. And professional and skilled employment is important assets for the company. The effectiveness and loyalty of the employees is also a important issue while making the strategy of the company. Improve vigilance. Study also shows that the use of Red Bull sugar free increases the blood coagulation this raise the cause of cardiovascular risk. Increase concentration and reaction speed. From the above it is seen that the basic goal and objective of the Red Bull is to maintain leadership in the market and increase market share relative to the competitors. The article quoted a doctor as saying.

Caffeine controversy: Another big issue related to Red Bull the presence of the amount of caffeine in the can of Red Bull. The amount of caffeine in a normal can of Red Bull is equal to the caffeine present in the coffee cup. which were imported to Austria. athletes use energy drinks to provide some ‘fuel’ as they practice and compete. All these above issues also contributed in decreasing the sale of Red Bull. Due to this controversy Germany had banned these drinks by 25 May 2009 in 11 states out of 17. So be an energetic is a basic point which attracts the customers into the energy drinks. All above matters adversely affect the sale of the Red Bull. So Red Bull must take steps in order to minimize all these remedies. but according to me Red Bull has different competitors and different rivals.JAWAD HASSAN MARKETING MANAGMENT Cocaine controversy: Another controversy was raised in June 2009 that there were a amount of cocaine in the Red Bull cans. They market their products in these countries like war that is way they are market leader in Page superstars in these countries to promote their product and they have monopoly in distribution 5 the countries. Pepsi holds the 70% of market shares in Pakistan and in India also. Red Bull must revise its strategy for long term and also to retain its market position. In countries like India and Pakistan. The purpose of above discussion is not to criticize on the Red Bull.4 COMPETITORS ANALYSIS: In many surveys it is said that people use energy drinks for various reasons. Same mater was raised in Taiwan also but due to legal constraints no action was taken. 1. On the other side people normally use as a way to become ‘energized. Due to these controversies Red Bull is banned in Norway France and Denmark. But after the ban was lifted in Norway and Denmark. But instead of criticism we also know that Red Bull contains huge amount of vitamin B which is very useful for human body. So Red Bull is also facing legal issues. Some experts say that the caffeine also adversely affects the human health. They hire .’ That’s about all I know. So all these issues challenge the position of Red Bull in the market. Red Bull must resolve these issues in order to maximize its market shares. Pepsi and Coca Cola have a hold over other products.

So Red Bull needs to rebuild its strategy and revise its segmentation in order to compete these markets as well. Monster. 2 Methodologies: There are two sources of data. Red Bull must also develop the strategies for the niche markets. Another big competitor of Red Bull is Cott Corporation. Red Rooster is an energy drink of Cott which was launched to compete with Red Bull. Dr Pepper. Another big competitor of Red Bull in Canada is Slow Cow. Due to its diversifying strategy. Mexico and Canada. Slow Cow is targeting those customers who don’t want to take excitement. Page 6 . Unlike Red Bull they don’t hire stars for their promotion. Slow cow contains the amino acid which said to produce feeling of relaxation in the brain. Both type of data helped a lot in order to make this assignment. Relentless. The prices of these products also very low as compared to Red Bull. All these energy drinks holds different segment of the customers. Red Bull hire athletes for their promotion. It is also said to increase mental awareness and concentration. Cott Corporation is earring huge profits in the United States.JAWAD HASSAN MARKETING MANAGMENT sectors also. It has very small amount of caffeine in it. Iron bur. different course books and different articles. Primary data Secondary data Primary data was taken by interviews and personal observation and secondary data was taken from different sources like internet. And the marketing is very week in third world countries as compare to the rivals. Some other competitors of Red Bull are like Lucozade. It helps the people slow down when they stressed up unlike the Red Bull contains the caffeine which don’t help in stress. without causing sleepiness.

Red Bull is facing difficulties in order to maintain its position due to health issues and prices of products.1Critical Review In order to maintain the position of Red Bull in global market and increase the shares in different countries the Red Bull must revise its strategy according to new market and competitors. but if we see the population of America. So it is big advantage for Red Bull is it is already a famous brand and no need of huge investment is required and just to change its strategy and develop different products. In these countries the Red Bull is in growth stage but also in but if Red Bull continuously ignores the strategy it would be declined stage for Red Bull. and they are ignoring huge market like children women old ages. Another big market which Red Bull is ignoring like India. China and whole Africa. Red Bull must develop the products for low Page income customers or they have to adjust prices of Red Bull according to income level. it is very small as compared to these economies which I mentioned above. So Red Bull going down from the maturity stage. So to gain again its position on the top of the market Red Bull must develop its research and development or we can say that R & D dept. Red Bull has no big structure and development in these countries and it seems like Red Bull is just for its presence not for sale so the structure of Red Bull in third world countries also in declining. Another big issue of Red Bull in these countries that Red Bull has very small range of drinks and Red Bull is just targeting young man.JAWAD HASSAN MARKETING MANAGMENT 3 Analyses: 3. No doubt Red Bull holds 70% of market shares of energy drink in United States. In these countries the competitors are providing low price drinks as compared to Red Bull that is way they have hold in these markets. Red Bull must develop different products in order to meet the needs and wants of customers and different members of society. In west the Red Bull has serious challenge of different issues. Pakistan. 7 . if Red Bull change its strategy like to target the third world countries like Pakistan and India Red Bull can get rid of huge criticism and earn profit beyond the limits. And if we see segmentation of Red Bull. In these countries the women children are more than men and it would be a big market for Red Bull if Red Bull satisfied need and wants of customers. The people living in these countries have low income level and their living standard is also low. there would be strategy for men women children.

And in segmentation we also describe product mix and strategy for new segmentation." Product Life Cycle of Red Bull for Western Countries The star in the chart below represents the position of Red Bull in the western market. If we have given to make new strategy. Red Bull is ignoring huge market. We will achieve this mission by building long-term relationships with the people who can make it become a reality.JAWAD HASSAN MARKETING MANAGMENT So according to my point of view Red Bull needs huge investment in these countries. The segmentation which we made is given below in analysis section. we would make new segmentation for Red Bull. which defiantly turns its customers to competitor’s products. Europe. We will also target women children and old age. and other parts of the globe. Mission of the Red Bull is to be the premier marketer and supplier of Red Bull in Asia. It is slowing beginning to decline due to health issues and Red Bull ignoring viable segments. Maturity Growth Decline Page 8 . Red Bull must have separate R&D for these countries and they must produce the product according to the culture of these countries. So according to my point of view company must have mission statement like this for long term relationships.

Maturity Growth Decline 3. We also discuss which factors Red Bull would keep in mind in order to set prices and the factors Red Bull can use to promote its products. Following are the segmentation and product Page 9 mix of Red Bull. There are three types of segmentation which would be followed by Red Bull. It is slowing beginning to decline due to health issues and Red Bull ignoring viable segments. We also discuss under how re bull can promote products for these segments and how they can set prices for each segment. .2 Segmentation (New Strategy): For Red Bull we have different strategies in order to overcome these problems and here we also discuss how Red Bull can use marketing mix for this segmentation.JAWAD HASSAN MARKETING MANAGMENT Product life cycle of Red Bull for Third World Countries The star in the chart below represents the position of Red Bull in the western market.

1. Page 10 Promotion: . MORRISONS. and SAINSBURRY.3 Children: (Red Bull (Humpty Dumpty)) Explanation: We know that children are big part of population. So if we target this segment with little change in product we can earn huge profit. In UK it would be stored on famous stores like ASDA. which are given below. The can of the Red Bull will be only in one size and the same for every child as well. Women 3. 3. Old age 3. LIDL.1 4p’s: Product: For this segmentation Red Bull caffeine free is very useful because children are so sensitive against caffeine and by introducing Red Bull caffeine free we can target huge market. In other words this segment of population is a big opportunity and Red Bull can convert this into huge strength.body and same for children they are also interested in Red Bull. Price: The price of this product depends on the geographical area. TESCO. Place: There is no need to develop special warehouses for this segment and Red Bull humpty dumpty will be provided in every shop with normal Red Bull and on every stores. Children 2. And according to our study name of Red Bull is very name for every . And if we see this strategy in both dimensions for western and as well for third world countries we can easily conclude how big this opportunity is.JAWAD HASSAN MARKETING MANAGMENT We basically go to target three different but important segments.3. In UK the price of Red Bull can be 70p and in Pakistan and like other countries it would be at minimum level. But the price can be adjusted according to situation and income level of the relative region.

1 4p’s: Product: Red Bull (Bella) will be our product which would target only ladies and girls. It would be a great chance for Red Bull by targeting this segment Red Bull can get rid of a lot of competitors and a lot of threats. 3.JAWAD HASSAN MARKETING MANAGMENT The promotion of this product would be a big opportunity. So this is most important strategy for Red Bull.25 £1. we would add some special ingredients for chilli taste and we sell this product by Red Bull (Bella). because we can promote this product on different levels likes. The prices of the this product will be as follows Small can Medium can Big can £1. For this product we don’t need to change anything but just for girls they like chilli. o o o o o o Ads on famous children networks Promotional campaign in schools It can be promoted by different children shows In different parks it can be promoted where children usually use to play On stores on each purchase a can be Red Bull would be given to parents Attractive hording boards in different parts of city usually famous for children.89 £2.25 There would be slight change in prices for this product for girls relative to normal one but this would be special prices on initial basis. Place: Page 11 .4 Women: (Red Bull (Bella)) Explanation: This is most important segment of our strategy because women are major part of population in the world and Red Bull is just targeting men and only young men. Price: We would offer three different sizes of can for this segment like normal Red Bull. And by targeting this segment Red Bull can earn huge profit and shares of Red Bull in market would touch sky.4. 3.

5. o Different fashion shows o Product can be displayed in different shopping malls o Different colourful ads o Colourful hording boards o Advertisement through famous celebrities famous in women. LIDL. If we see everywhere in the market no company is targeting this segment and if someone do so they are just doing formalities. We would use these types of ways in order to promote product. 3.59 12 . As we know they are the major part of the population in the Europe and by targeting this Red Bull will be able to get competitive advantage over the competitors. TESCO. And special store can also develop for this product near the women gathering centres.JAWAD HASSAN MARKETING MANAGMENT There is no need to develop special warehouses for this segment and Red Bull (Bella) will be provided on every shop with normal Red Bull and on every store. Small can Medium can £1. MORRISONS. Promotion: For this product we would use special promotional campaign. So it would be a big opportunity for Red Bull and in future it would help to compete market in long term.1 4p’s: Product: The product for old age will be same like normal Red Bull and we would make slight change in it.19 Page £1.5 Old Ages :( Red Bull (Cool River)) Explanation: This is our special product targeting only old age. 3. Price: We would present Red Bull in three sizes and prices of these cans are given below. Red Bull (Bella) can also be stored on petrol pumps shops for sale. We will reduce the amount of caffeine in the can and present for sale. In UK it would be stored on famous stores like ASDA. and SAINSBURRY.

99 MARKETING MANAGMENT Place: There is no need to develop special warehouses for this segment and Red Bull (Cool River) will be provided on every shop with normal Red Bull and on every store. We would use special promotions for this product and we will adopt some different ways to promote this product. LIDL. Promotion: We need special promotions for this product because old age is very sensitive for each product which they purchase. Red Bull small cars. In UK it would be stored on famous stores like ASDA. TESCO. At this stage Red Bull needs to diversify and they must invest in different types of product not only in energy drinks but also in other drinks that helps to cool down customers. Red Bull home use machines. Red Bull (Cool River) can also be stored on petrol pumps shops for sale.JAWAD HASSAN Large can £1. and SAINSBURRY. Red Bull also needs to make other products like Red Bull bread. Page 13 . Some of them are given below. And special store can also develop for this product near the old houses. MORRISONS.6 Ansoff’s model: Existing Existing Penetration New New market Diversification New product New Diversification: Red Bull must change its strategy if Red Bull wants to take over the market for long period of time and if they want to be market leader for longer. o Special promotions by talk shows o Ads on Sunday news papers o Door to door campaign 3.

So Red Bull needs to change its strategy for this segmentation and in some countries there is major factor of culture that affects the sale of Red Bull. Monitoring This strategy will be monitored for a period of 6 months. New Product Development: Another strategy can be used in order to get more customers like Red Bull can make different products. For example SHEZAN in Pakistan. in this way Red Bull can target more and more customers. Red Bull digital accessories. so Red Bull has no need to raise finance. Red Bull must develop drinks in different flavours like Red Bull(lemon) Red Bull (Rubicon) Red Bull(apple)Red Bull (mix flavours). Red Bull has very weak population. Weaknesses: Red Bull is facing different health controversies and issues. and if its not useful for some reason then there will be some changes which will be recommended by the share holders and valuable customers.7 Swot: Strengths: The brand name of the Red Bull is the biggest strength.JAWAD HASSAN MARKETING MANAGMENT Red Bull garments. Like they can purchase lion shares of the company which are not working as well as demand of market and Red Bull can convert them into opportunity for its long term planning. Red Bull has largest market shares show investor’s trust on Red Bull. and a new strategy will be launched accordingly. Because no of customers don’t like energy drinks. Red Bull is also ignoring major segment of . especially if we see children energy drinks are not useful as for young and old age. If the strategy is found useful it will continue with same run. There are a lot of companies would ready to make partnership with Red Bull happily. For diversification they need high investment and proper R&D and they must also see the strategy of acquisition. Page 14 marketing in under developing countries.in this way Red Bull can target a lot of customers which Red Bull continuously ignoring. 3.

except it occurs some time in Page 15 advertisement. the financial object needs to be reviewed in the light of exchange rates and sector activities. . Political Normally this type of product doesn’t have big and real issue. Threats: Coca cola and Pepsi are major competitors of Red Bull and they can be threat for Red Bull for long term strategy.8 STEEPLE: Social Check out latest trends and moods in energy drink market. It also need to analyse media habits and opinion formers in the target group. Education There must be internal education system in order to develop skills in sale force so that they can forecast future sale. 3. Economic Given the international status of the company and differing economic cycles. Technical Technically Red Bull has no big issue because Red Bull is not a diversified company and but it can affect its long term strategies.JAWAD HASSAN MARKETING MANAGMENT Opportunity: By targeting different segments Red Bull can get competitive advantage over. It would be a great opportunity for Red Bull. if they are succeed in getting the new customers.

0 Findings: Following are the findings given below:    Different controversies affected the sale of Red Bull Red Bull lost a lot of revenue due to ignoring different segment of population Due To absence of diversification Red Bull got declined 4. Norway and Germany due to health issues. If Red Bull decreases it prices and advertises it in such a way in the third world countries where most of the people can get known about red dull and its exploits.JAWAD HASSAN MARKETING MANAGMENT Legal Red Bull had different legal restrictions in different countries like France. Page 16 . 4. Environmental Red Bull has no big issue relating to environment because there is a proper system of re_ cycling of Red Bull cans and there is a proper check and balance on packaging.1 Conclusion: If Red Bull controls the problem which it has been having it could survive and it could make more than it has been previously.

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