Red Bull Strategic Plan free essay sample

Market leader; brand ambassadors;synonymous with energy and getting a boost;events; Youth brand managers; extreme sports association and premium image Weaknesses: limited product range; expensive. Opportunities: new youth as a target market (16-24); adapt for older matured Y generation; events; viral marketing; youth have a disposable income and are easily influenced by peers and trends; smart energy drinks energy drinks mixed with a smart drink (made from a mix of fruit juices, vitamins, herbal and amino acid supplements. Threats: ver-growing energy drink market, loss of original customer base as they mature, negative publicity rumours red bull contains bull sperm, health concerns ingredient taurine, will the youth adopt the brand? , youth have a lack of purchasing power and ready-made smart drinks. Energy drinks: †¢Are stimulants †¢Prevent sleep †¢Promote mental alertness †¢Improve physical performance †¢Increase endurance Brand Architecture: Red Bull is a Branded House. A Branded House is, â€Å"A centrally focused group of brands that are clearly connected and coherent. A very large Family of Brands† as defined by http://stealingshare. om/brand_resources/glossary. htm. Red Bull isn’t a large family of brands; it consists of the original drink, a diet version and a cola drink (not yet available in South Africa) but they are clearly connected and coherent and obviously not a house of brands, which is â€Å"a business that has multiple brands that are not necessarily part of the same family or are independent from each other and the Parent Brand† (http://stealingshare. com/brand_resources/glossary. htm). Visual identity system: †¢The logo and the bulls from the logo. †¢Red, blue, silver and a little yellow. †¢The cartoon-style used in their advertising. Tagline: Red Bull gives you wiiings! What does the brand stand for? Brand values: †¢Youthfulness †¢Passion †¢Energy †¢Activeness †¢Adventure seeking †¢Spontaneity Brand Essence: Energy. Brand Personality: †¢Youthful †¢Energetic †¢Adventure seeking †¢Innovative †¢Nonconformist †¢Party loving †¢Witty †¢Charming †¢Unpredictable †¢Intelligent Differentiating factor: Things Red Bull has to offer that other energy drinks don’t: †¢The brand personality. †¢Their involvement in extreme sports, events, music and youth culture. †¢Youth brand managers: Students who drive Red Bull branded cars and give out free cans of Red Bull to people who are in need of energy. They promote Red Bull on university campuses and are encouraged o throw parties at which cases of Red Bull are distributed. These Youth Brand Managers report back to Red Bull providing them with a low cost form of market research data and an insight into today’s youth. †¢Their approach to marketing: oNo print, only TV/radio adverts because this creates interest and momentum and has greater impact oBuzz-marketing/ word of mouth, generated by controversial adverts, youth brand managers and guerrilla marketing. oInvolvement in events, not only sponsoring but also hosting and creating events that appeal to their target market. What is the brand positioning? Market Position: Market leader: Red Bull is the most popular energy drink on the market. Red Bull was the first energy drink, providing a solution to a gap in the market for a drink that supplies the consumer with energy. Competitors: Direct competitors: †¢Energy drinks from the ever-growing energy drink market. South African examples are Play and V. International examples are Coca-Cola’s Mother and Pepsi’s Amp. Indirect competitors: †¢Other functional drinks, such as: oSports drinks oVitamin and mineral enriched drinks oACE drinks (fortified with A,C, or E antioxidant vitamins) oWellness drinks Nutraceutical drinks oHerbal drinks †¢Premixed alcoholic drinks, for example Smirnoff Storm, because vodka and Red Bull is a big selling point for Red Bull. Image and identity: Red Bull’s brand image and brand identity are well aligned, as the way they identify themselves and the way they are seen by the public are one and the same. This is as: †¢Youthful. †¢Involved in youth culture, such as extreme and adventure-related sports, and music. †¢A symbol of glamorous lifestyle. †¢Energy-giving. Positioning statement: Red Bull revitalises the body and mind. What is my single-minded promise and how did I arrive at this promise? What is Red Bull selling? They are selling the Red Bull lifestyle: youthful, energetic, adventure seeking and nonconformity. As Mateschitz, the creator of Red Bull says, â€Å"Red Bull isnt a drink, its a way of life (Red Bull-Promotional Mix). To whom is Red Bull selling? They are selling to people who share a state of mind: Consumers who have drive, are active and full of life, who want to be physically and mentally healthy and be alert. There are two target markets within this: 1. Their current consumers, the â€Å"Y generation† who have matured since the inception of Red Bull, aged mid-20’s to 30’s. 2. The current youth market, aged 16 to 24. Both of these have a majority of male consumers. With what aim is Red Bull selling? For brand awareness: to keep Top-of-Mind awareness and maintain the position of market leader. To promote brand values of youthfulness, energy, adventurousness and spontaneity. What is their basic message or benefit? My single-minded brand promise: Red bull revitalizes the body and mind so you can do anything. How and why have I selected the specific target audience(s)? As Red Bull is an already established energy drink, they have a target market already, which is the â€Å"Y generation†, aged mid-20’s to 30’s. This market has matured since the start of Red Bull and now Red Bull must consider marketing differently to them so they don’t lose this market, as they grow older. I think it is important for Red Bull to stay fresh and young to target the current youth who are aged 16 to 24. It is a fact that 65% of energy drink drinkers are males between the ages of 13 and 35, so I have kept this in mind when defining the target market.