The marketing plan entails a marketing strategy for Red Bull energy drink. An overview of the external environment in the energy drink industry is given. The competitive challenges in the market are identified and hence the importance of developing an effective marketing strategy. The firm’s mission statement in producing and marketing the energy drink is illustrated. The plan also entails the various non-financial marketing objectives that the management of the firm intends to attain. In addition, the financial objectives are illustrated. Various target markets identified in marketing the energy drink are analyzed. These include the sportsmen and women, youth and college-age students, the elderly, and hip-hop enthusiasts. Finally, the plan illustrates how Red Bull energy drink will be positioned in the market.
Marketing strategy overview
Currently, the energy drink market is becoming more challenging due to increased competition. In addition, consumers are becoming more sophisticated (‘Adding energy to beverage industry: a new drink’, 2010, para.2).To effectively penetrate the market, the management of Red Bull GmbH has considered the importance of developing an effective market strategy. The market strategy will ensure that the firm attains its profit and wealth maximization objectives and at the same time, meet market demand. This will be achieved by way of reaching out to the customers. The ultimate result is that the firm will continue to sustain its position as the industry leader (Vadim, 2010, para.4).
The management of Red Bull GmbH is committed to maintaining high-quality standards of red bull energy drinks in its effort to attain a high market position within the energy drink sector. High quality of the energy drink will be attained through the incorporation of the concept of value addition in the process of producing the energy drink. In addition, the management is dedicated to ensuring customers receive high-quality services in an efficient manner.
To establish Red Bull GmbH as an expert in the manufacture of energy drinks. The management of the firm has integrated the concept of customer focus in the production process. This means that all the operations of the organization will be aimed at satisfying the customers in relation to their energy needs.
To become a multinational firm by ensuring that Red Bull energy drink is accessible in the entire global market. This will enable the firm to increase its competitive position in the challenging soft drink market. The management of the firm intends to expand its distribution capacity to all the global regions. This will ensure that the firm attains economies of scale through internationalization. At least 3 major distributional agents will be established in United States, Europe, Asia, Africa, and Latin America.
To develop a strong brand name. This will be attained through the integration of the concept of brand management in the process of marketing the energy drink. The various components of brand management which include brand identity, brand culture, and brand image will be integrated. Developing brand image will ensure that the energy drink appeals to a large number of potential customers in the domestic and foreign market. Brand identity will ensure that Red Bull energy drink is effectively differentiated from other competing brands. On the other hand, developing brand culture will ensure that the society links itself with the firm’s product. Brand culture will be attained through the integration of corporate social responsibility. This will enable the firm to survive in the hostile market in the long term as a going concern entity.
Marketing energy is expected to result in an increment in the firm’s net income with a margin of more than 10 percent within a period of one year.
Through extensive distribution, the management of GmbH intends to increase the firm’s gross profit with a margin higher than 80% within a period of two years. The management further intends that the firm will achieve annual average sales revenue of $ 5.5 million. In addition, the firm’s management team intends to attain a market share of 65% in the global energy drink market within a period of three years.
In marketing the energy drink, the Red Bull GmbH management team has targeted a number of potential customers. These include individual and institutional customers. This will ensure that the energy drink has a wide customer base. In targeting individual customers, the management of the firm integrated various demographic market segmentation variables. These variables relate to the potential customer’s age and income level. The various target markets identified are illustrated below.
Sportsmen and women
After scanning the environment, the management of the firm identified that there is a high potential for growth in the sports industry. This results from a change in lifestyle within the society. For instance, some individuals are adopting sports as a form of leisure while for some it is a career. These individuals are highly susceptible to extreme levels of exhaustion (‘Target group for energy drink: ads and the market’, 2010, par. 5). As a result, the management identified that there is a high probability of the energy drink succeeding by marketing to this category of customers. In addition, the findings of research conducted by the firm’s marketing department revealed that sportsmen and women require a lot of energy for them to be efficient. In addition, this customer category requires a drink that will have instant energy rejuvenation so as to improve their performance. Red Bull energy will provide a solution to this customer category.
Young adults and college-age students
The marketing department has identified specialized groups which include young adults and university and college students. These individuals require a high amount of energy for their mental activities. In addition, these potential customers require a high rate of mental alertness and concentration.
The energy drink also targets the specialized group consisting of hip-hop enthusiasts. Red bull energy drink will be produced to meet the high energy requirement necessary to satisfy the energy demands of these customers.
The energy drink’s target market also includes elderly individual consumers. The finding of consumer market research revealed that elderly people lack certain nutrients and minerals. In addition, there is a trend emerging whereby these consumers are becoming more health-conscious. The elderly require a high rate of metabolism in their bodies. By targeting this customer category, the energy drink will provide their energy requirements.
The management of the firm has recognized that its product positioning plays a significant role in attaining a competitive advantage. This is due to the fact that effective market positioning acts as a shield for the firm in dealing with competitive challenges. As a result, the firm will be able to attain a high competitive advantage. In an effort to position itself optimally in the energy drink market, the management of the firm will incorporate expertise in the entire energy drink production process. This will serve in ensuring that the energy drink is of high quality. Continuous research will be conducted to identify ways in which the energy drink can be improved. Value addition will contribute towards attaining a high level of customer satisfaction. In addition, value addition will ensure that the energy drink meets the health demands of the customers. This will also ensure that the customers obtain a high level of utility hence increasing the degree of customer loyalty.
Fact Expert. 2010. Adding energy to beverage industry: a new drink. (On-line).
Fact Expert. 2010. Target group for energy drink: ads and the market. (On-line).
Vadim, K. 2010. Marketing strategy in the rapidly changing market place. (On-line).