Free Sample: Strategic Marketing Management in Redbull paper example for writing essay

Strategic Marketing Management in Redbull - Essay Example

Furthermore, the strategy formulation for creating and sustaining a competitive advantage (Limpkin, 2003) Moreover, the case study describes the threats of Red Bull that the company should to be change the strategy for competition a leader of market In Thailand by using the Porters five forces analysis and SOOT analysis (Storehouse et al, 2004). In Dalton, this assignment brings the developing marketing strategy to be analysis the industry and creating a new opportunities of competitive advantage by learning the strategy framework from the Western European countries for basement (Armstrong and Kettle, 2003).

Finally, this document analyzes a new target market of energy drink trending In the future. The strategic market management for analyzing the strategy of Red Bull included that external analysis focuses on opportunities, threats, trends of impact the organization and Internal analysis focuses on strength, weakness and strategic problem of internal organization. The important of this system drives through making a strategic of decision and strategic vision and developing the problems for making a chance. Akers, D, 2001) According to, the global market report in 2003 about the energy drink market grew over 7% that faster than the soft drinks market. The research analysis of Canadian drinks, the continue trend of energy drink has increased in the market more over 50% in the last six years until now. The researcher suggests that the high margin influenced from the campaign of the strategy of global sport and energy drink must be move together. Moreover, the energy drink should be Increase the volume around 24% In 2006. Sparks Companies and Gale Group, 2004) In addition, the successful of energy drink market in Asia, 1 OFF (Sparks Companies and Gale Group, 2004) Actually, Forbes Magazine (2003) reported the annual of sale of Red Bull at $1. 4 billion in worldwide. The Zenith International consultancy in I-J (2004) argued that the energy drink market in the Western European has slowed down than previous years however, it has continuing increase of sale about 6. 5% in 2003. According to, the estimate volume of consumption about 64% came from bar, club, and petrol station.

The remaining 36% came from the retail outlet. Then, the largest market in 2003 was I-J by 26% of total volume, followed by German with 20% of total volume, and Spain by 13%. Actually, the leader of energy drink is Red Bull that holding a lead of share in 12 countries in the Western European from overall 13 countries. In US market, MR.. Gobo, M. (2001) said that Red Bull changed a can of reduce that a silver color and diminutive size made a look appeal for customer. Then, he called it slim, sexy and powerful that anti-Pepsi statement which a soft drink from USA.

However, Mr.. Cortes (2001) argued that Red Bull had a most remarkable of product that why the company offered Just one size, one color, one sticky and sweet tastes that a few companies launched a product that focus on one product which a narrow strategy of Red Bull. Bennett. Com in US market (2003) described much more about the target market of Red Bull in US and the Western European market was rapidly expanding in a niche market. The successful of target market was young and trendy people such as club scene, extreme sports, etc and nocturnal reveals.

Nowadays, the energy drink are created a new market to be students, athletes, and active individuals between the ages of 21 and 35 after take exercise or mix with vodka. Then, the promotion focus on nightclubs, bars, universities, concerts, etc. In addition, Red Bull invested the promotion on TV in prime time periods that attractive for customers such as teenagers. Moreover, the base of target group that a long distance drivers, people who work during the night, taxi drivers, etc. In contrast, a target market of Thailand focuses on workers, people who work during the night in a mass market.

According to, the energy drink in Thailand market has a high competitive that a main of three brands: MI 50, Red Bull and Carbondale compete for possession a large market share. In particularly, the promotion has more acted to be competes a brand leadership in market. Then, the competitor posses a larger of market share than Red Bull by bring a distinctive strategies included that advertising, changing target market, improved product, distribution, and premium price. After that, Red Bull loses a market share around 30%.

Nowadays, MI 50 gains a large of market share about 50%, Red Bull at 32% and Carbondale at 10%. ( Summon Regulation , 2004) Furthermore, Red Bull influences from the competitors that making more threats and concerning of weakness for developing and making opportunity. Therefore, this paper concerns about the Porter’s five forces analysis include that Threat of new power of suppliers, and Rivalry among the existing competitor that analyses about the nature of competition of industry and the competition position of their market.

According to, Porter (1980) said that the strength of competitive forces in an industry that enhances its potential profitability and strongly influences its structure (Storehouse et al, 2004). First of all, Red Bull in Thailand has high competitors that need to fight for getting a market share whatever small or large of profit. By using, an advertising strategy and changing a target group from the workers that specific in a low-end market. Then, the brand image of energy drink in Thailand had not been a contemporary for teenagers consumption however, in the Western Europe that enhance Red Bull is a premium brand in 2004.

Moreover, the price effects the consumers behavior in Thai because Red Bull focuses on the low-end target that low income but the price is expensive than M-150. Therefore, the quality is more important for the consumers such as taste, package, etc. Nowadays, the most effective of energy drinks are the policy of government that more control caffeine per can so, Red Bull impacts from this problem since establish. Then, this problem can change a opportunity of market and change the consumers behavior to drink a coffee can a substitute product that lower caffeine than the energy drinks ( Summon

Regulation , 2004). The opportunity of Red Bull in Thailand concerns about enhances a brand image and target group from workers to teenagers as same as a strategy in Europe. Thus, the trend of market in Thailand concentrates a brand image by using a strategic of Integrated Marketing Communication (MIMIC) and Customer Relationship Management (CRM) to develop a product in the market becomes a strong brand and a brand loyalty, so continuing to increase competition in the future (Marketing Association of Thailand, 2002).

In 2004, Red Bull in Thailand invested approximately $350 million for repositioning n a market included changing package, price, and promotion that suppose to become a leader in market in five years (Bangkok Business News, 2004). In addition, Red Bull use a developing market strategy for developing a new market segmentation, market targeting and market positioning in the Thai consumption (Armstrong and Kettle, 2003). Searching a trend of consumer behavior and update a strategic of market in Thailand and Europe as the base of successful.

However, in European such as French, Norway and Denmark against to sale, Red Bull in country because the ingredients of energy drink contains caffeine that affects a healthy (CB NEWS, 2005). Consequently, the author supposes to a successful of Red Bull that expects an achieve goal and analyzes the consumers focus on teenagers for an evidence information. Moreover, the trend in future of the energy drink will improve a new product that concentrates the healthy by more a nutrition and health benefit such as a flavor of orange, lime and vitamin (Penn, 2005).

The scope of strategic competitive advantage method that analyzes the growth of energy drink (Red Bull) in global market and specific in the Western European rink that Red Bull in Thailand will be restructure a strategic of market for developing a new target market and brand image insight through the new consumptions target group that How to improves a strategic? , What’s a SOOT analysis of Red Bull in Thailand? , etc. Then, divides a methodology to research and learning includes that quantitative method and qualitative method.

Methods : The quantitative method collects data from the interviewees’ employment of the leader market share of energy drink company in Thailand that what is the target market, what’s the main strategic, what’s the vision and trend in the future, etc. Moreover, some data get from the consumer’s behavior for evidences such as random consumptions that focus on the teenagers group included that male and female. For collect of result, the data contacts by e-mail or telephone that convenience and fast for communication.

Consequently, the results present by table, graph and chart that simply to compare information of highest value or lowest value and conclusion as well. Methods: The qualitative method collects from the textbooks about the theories, main concepts, and case studies such as the strategic of marketing management, the tragic of competitive advantage focus on the strategic market management and the strategy of creating and sustaining competitive advantage, SOOT analysis, Porter’s five forces, the developing marketing strategy, etc.

Moreover, the large of sort data about the case of Red Bull gets from searches in the internet, Journals, update news online such as the web of search engine, businesses. Com, etc. The information received that the percentages of market share, the main strategic of organization, the opinion of the authors from websites for discussion and explain in the theories and concepts. Overall, the information get from internet and Journals that quite update and recent time until in the future. Reference ; Asker, D (2001), Strategic Market Management, 6th deed, John Wiley & Sons, Inc.