Executive following briefly details. The current objectives of

Executive following briefly details. The current objectives of

Executive summaries This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

The business overview, current situation analysis and marketing objectives are reviewed in this document as the following briefly details. The current objectives of the Red Bull are to stay in the same position as the leader, to be the brand icon of the extreme sports and to expand the existing markets.Red Bull has used some strategies to reach these goals, such as extending the product line and being the extreme activities sponsorship. Since Red Bull positioned itself as a functional drink, the competitors of Red Bull are in several drink markets. Energy drinks market, the direct competitor, has Red Bull, Monster and Rockstar as the main players. As well as the indirect competitors, soft drinks market that lead by the big companies like Coca-Cola and Pepsi-Co and also sport drinks market.

The SWOT analysis of Red Bull is presented based on the internal and external environments.The strengths of Red Bull are market leadership position, marketing efforts, their familiar taste and the representative of the fashionable and trendy, while the weaknesses are the pricing and the lack of the recipe patent as well as less variety of the products. Red Bull has opportunities to expanding the target markets as well as product lines extension, on the other hand, Red Bull also faces some threats which are the health concern of the customers, the forbidden in some countries and the “copy cat”. The Marketing objectives of Red Bull are set based on SMART objectives.Three objectives have been set for this marketing plan, which are increasing the revenue, rising up the market share and being the brand icon of the extreme activities in target audiences’ perception. These objectives will be used for developing the marketing strategies for Red Bull in the next section of the market plan. Table of Contents Page Executive Summaries.

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… I 1. Introduction..

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…. 2. Situation analysis.

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…………………………………………………………………………………….. 1 2. 1. Internal Environment…………………………………………………………………………….. 1 2. 2. External Environment……………………………………………………………………………. 2 i. Competitions…………………………………………………………………………………. 2 ii. Economic issues…………………………………………………………………………….. iii. Political and Legal issues……………………………………………………………….. 3 iv. Socio-Cultural issues…………………………………………………………………….. 3 v. Technological issues………………………………………………………………………. 3 3. SWOT analysis………………………………………………………………………………………………….. 4 3. 1. Strengths……………………………………………………………………………………………… 4 3. 2.Weaknesses………………………………………………………………………………………….. 4 3. 3. Opportunities………………………………………………………. ………………………………. 4 3. 4. Threats………………………………………………………………………………………………… 4 4. Marketing objectives…………………………………………………………………………………………… 5 References……………………………………………………………………………………………………………….III 1. Introduction In 1982, Dietrich Mateschitz got an idea of functional drinks. He joined with Chaleo Yoovidhya, Thai businessman, in 1984 and founded the Red Bull, which today is 49 percent owned by Mateschitz, other 49 percent by Yoovidhya and 2 percent by his son Chalerm. Red Bull was first released into the Austrian market in 1987, which was the completely new product category, energy drink. (Red Bull, 2011) Red Bull has quickly spread its wings around the world, they started the first foreign markets in Singapore in 1989 and Hungary in 1992.Germany and UK was granted Red Bull in 1994 and 1995, followed by the US in 1997. Meanwhile up to 4 billion cans of Red Bull were sold in more than 160 countries across the globe. This document will focus on the situation analysis of Red Bull. The first section includes internal environment and external environment which affect the company. The internal environment can show the strengths and weaknesses as well as opportunities and threats can be analyzed by the external environment. The second part will present the SWOT analysis based on internal and external environment.The last section is to set the marketing objectives for developing the marketing strategies. 2. Situation Analysis 2. 1. Internal Environment Red Bull is now in the position as the market leader of energy drinks sector, which hold up to 70 percent of the market shares (A. M. , 2011). Mission Statement of Red Bull is to uphold the standards along with maintain the leadership position. And it also provides highly efficient and profitable manner services. (Red Bull final report, 2011) “Red Bull gives you wings” and “Red Bull vitalizes mind and body” are current tagline of Red Bull.They aim to ‘spread their wiiings’ over the world. The current objectives of Red Bull are to maintain the position as a leader in energy drinks and to be the brand icon of extreme sports worldwide as well as expand the existing markets. To achieve the goals of maintaining the leader position and expanding the existing market, Red Bull has extended the product lines. They launched the new products which are Red Bull sugar free for health-concerned consumers as well as Red Bull Energy shot which is concentrated Red Bull Energy Drink.Red Bull Cola, one of the family members, has been released for those who would rather drink Cola to energy drinks (Cirillo, 209). The products are also available in various sizes, which are 250 ml. , 355 ml. and 473 ml. To be the brand icon of extreme sports, Red Bull has been the main sponsorship of high-adrenaline activities like mountain biking, BMX, motocross, Formula1, rally, skating, windsurfing, snowboarding, cliff-diving, and also breakdancing. Moreover, two Formula1 teams, four football teams and two ice-hockey teams are now owned by Red Bull (Boome, 2011).Red Bull spent more than 25% of revenue for buying, creating and getting their name spread on all the extreme sports. This makes Red Bull different from other energy drinks which spent around 10 percent for marketing. (Boome, 2011) Red Bull makes itself convenience for the target groups by heavily distributes their products across the country to everywhere, convenient stores, drug stores, gas stations, grocery stores, college campuses and even night clubs and bars. Red Bull has positioned itself as a functional energy drink that ‘vitalized mind and body’ and ‘improved durability levels’.It helps increasing performance, concentration and reaction speed as well as improving alertness and emotional status. More than that it helps stimulating the metabolism and makes you feel more energetic as well as improves overall well-being. (Global functional drinks, 2011) The target markets of Red Bull are work hard and play hard youths in both genders. These people enjoy high-adrenaline sports and active nightlife as well as want to stay whole night long to study or to meet deadlines for projects.They believe that Red Bull can boost up their energy levels. Current customers of Red Bull can be divided into several groups, which are the hard work customers, the clubbers and the athletes. (Drawert, n. d. ) 2. 2. External Environment The external environment is formed of factors outside the organization which have positive and negative effects on the business. The external environment factors include competition, economic trends, technology, politic and social culture. i. Competitions Red Bull competitors include several sectors in drink market.The direct competitors are all products in the same category which are now up to a hundred brands all over the world. The main competitors of Red Bull are Monster and Rock star, the second and the third in the energy drinks market (bevnet, 2011). Red Bull also implicitly gets into the soft drink market which has the big companies like Coca-Cola and Pepsi-Co as the leaders. Furthermore, due to the benefits, other possible indirect competitors could be sport drinks such as Gatorade and Dexters. (Global functional drinks, 2011) ii. Political and Legal issuesAt the first time Red Bull released into the market, the Health Organization suspected that Red Bull could be addicted and more doubtful because of the rumours about the ingredients. Nevertheless, a study by an independent institute in 1998 proved that Red Bull does not bring about the addiction. (Drawert, 2011) However, Red Bull still needs to be sanction by the country where it shall be distributed. Furthermore, some countries still doubt in Red Bull and it is also forbidden from some of the EU countries. iii. Economic environmentThe global financial crisis has impacts on energy drinks sector as well as other sectors. Red Bull has prepared the cost management which is accord with the situation that makes Red Bull growth still visible and even better than pre-crisis levels. (A. M. , 2011) iv. Socio-Cultural issues Since the lifestyles are changing currently, people are much more confident in trying new things. Red Bull also has a trendy brand image which is associated to the youth culture, it can be found in bars and clubs where it is often mixed with Vodka as well as extreme and adventure-related activities. . Technological issues Red Bull is one of the lack-innovation products. Anyhow, it is still being the leader in energy drink markets. On the other hand, all of the Red Bull products are produced in Austria and exported to other countries to make sure that it tastes the same everywhere in the world. Furthermore, Red Bull has claimed that the latest technological advances have been used in production for lessen environment impact as well as the cans which are made of recyclable aluminum, in order to be friendly to the environment. (Red Bull, 2011) . SWOT ANALYSIS 3. 1. Strengths •Red Bull is the market leader in energy drink sector throughout the world. •Red Bull has well targeted campaign as well as sponsorship. It also has a lot of promotional activities which related and familiar to target audiences. •Red Bull has a fashionable brand identity, being a fashion icon brand which consumers purchase it because they want to be trendy. •More covered market, three different sizes of Red Bull are now provided for different needs of consumers and also Sugar-free Red Bull for health consciousness. The taste of the products which are all the same everywhere around the world. 3. 2. Weaknesses •The prices of Red Bull are higher than others in the same category. •The Red Bull’s recipe which can be easily copied by reason of the lack of the patent of the recipe. •The diversification. Even though Red Bull has just launched the Sugar free Red Bull, it is still lack of innovations. In this point other products could leave Red Bull behind. 3. 3. Opportunities •Expanding the target market, currently red bull is only targeting youths.It can easily target the young adult or expand to the age group of 15 to 40. •Extension of the product lines could help Red Bull strengthen their customer base. 3. 4. Threats •Health concern; there is a doubtfulness that energy drinks contains the ingredients which are harmful for the health and could lead to addiction. It is also believed that Red Bull contains too high caffeine. •Red Bull has been banned from some of the EU countries. •A lot of “copy cats” and other competitors are now taking market share in the energy drink market which might affect Red Bull’s share. 5. Marketing objectivesThe objectives have been set based on SWOT analysis to strengthen the strengths, decrease the weaknesses, utilize the opportunities as well as avoid the threats. •To increase the revenue by 10% of in the end of financial year 2012 •To gain up to 75% of global market share in 12 months. •To be the biggest sponsorship of the extreme activities across the globe. References A. M. (2011). Red Bull charges ahead with sales of over 4b cans last year. Al Nisr Publishing. Retrieved October 3, 2011, from http://www. thefreelibrary. com/Red+Bull+charges+ahead+with+sales+of+over+4b+ cans+last+year. a0247254664 Bevnet. (2011, August 22). Beverage spectrum July-August 2011. Retrieved October 1, 2011, from http://issuu. com/bevnet/docs/julyaugust2011 Boome, A. (2011, May 31). How food super brands manage to become your family. BBC Three. Retrieved September 29, 2011, from http://www. bbc. co. uk/news/business-13598581 Cirillo, J. (2009, June 15). Running of the Bull. Beverage world, 128(6). Drawert, S. (n. d. ). The Marketing strategy of Red bull. Retrieved October 1, 2011, from http://www. drawert. com/red_bull_3. php Global functional drinks. (April, 2011). Datamonitor.