Executive Summary

This report is an evaluation of the marketing strategy of the Red Bull brand in Singapore. The brand and company have been around for a long time since the year 1987. Their mission vision, mission, and current objectives are all in line to serve the energy drinks market with high quality products. The company’s most important resources are its workforce, technology infrastructure, brand equity, and their physical location in the country. The SWOT analysis conducted in this report indicates that the companies have many significant strengths than it has weaknesses. At the same time, it has opportunities in the environment that it faces threats. The external environment was also analyzed by using the PESTLE tool which suggested that the Singaporean environment is a good atmosphere for the operations of the company and brand. The Red Bull brand mainly draws its competitive advantage by offering a high quality drink with much fewer health effects. The marketing plan of the firm is based on three strategies which are differentiation, cost leadership, and diversification. The market of Red Bull is segmented into three groups of customers which are athletes, sports enthusiasts, and the youth. The 4 p’s of marketing seem to favor the strategic moves made by the company by having the right distribution network, price, advertising strategies, and designing a high quality product. In conclusion, the Red Bull brand is well positioned to take over Singapore and advance its sales and returns to add value to its company.       Contents Executive Summary.. 2 Introduction.. 4 Internal Analysis. 4 Vision.. 4 Mission.. 5 Objectives. 5 Resources of Red Bull Company.. 5 STP Analysis of the company.. 6 External Analysis. 7 MACRO: PESTLE Analysis of company.. 7 Political 7 Economic. 7 Social 7 Technological 8 Legal 8 Ecological 8 SWOT Analysis. 9 MICRO: Competitions of company [Porter’s 5] 10 Competition from Rivals. 10 Bargaining Power of Suppliers. 11 Bargaining Power of Customers. 11 Power of Substitutes. 11 Threats of New Entrants. 11 Competitive Advantage [Unique Selling Proposition] 12 Evaluation of Current Marketing Strategy.. 13 Segmentation Targeting and Positioning (Strength + Opportunities) 13 Segmentation.. 13 Positioning.. 14 Recommended Objectives and Goals. 14 Marketing Strategies (The 4 p’s) 15 Product. 15 Price. 15 Promotion.. 16 Grannt Chart Monitoring.. 16 Conclusion.. 17 References. 18    

Introduction

Red Bull company is the manufacturer and marketer of the Red Bull energy drink. The headquarter of the company is at Austria but the company has extended its reach to Europe, Asia, and also other global markets. Red Bull is an energy drink mostly used in Singapore compared to other available energy drink brands in the market. Though Red Bull is global, the local advertisement in the country is what makes it more attractive to the local consumers (Red Bull Company, 2016). The brand is there to stay in the market due to recorded sales made which have good prospect. The industry of energy drinks is much contested in the world. There are many brands that keep coming up claiming to provide energy to its consumers (Cruz, et al. 2015, p.112). The trick is in providing the much desired energy without compromising the health status and prospects of the customers. For this reason, intensive market and product design research are what make a brand and company edge against its rivals. The rate of competition in the market is intense and projections indicate that there will be more of these battles in future. Even though there are health concerns about taking energy drinks, evidence suggests that it has not affected the growth of demand (Bianchi & Mathews 2016, p.172). Essentially, the Singaporean demand for energy drinks grows almost similarly relative to the population growth, which has also been quite consistent.

Internal Analysis

Vision

Red Bull’s vision is to become a premier provider of energy drinks in the world

Mission

Red Bull’s mission is to provide energy drinks to the Asian, European, and other global markets by partnering with other stakeholders that would make that dream come true

Objectives

1. Regarding people: It seeks to become a place where people can work together in harmony and have the highest form of inspiration while at it.
2. Regarding portfolio: To bring to the world a combination of products that are attractive to the world and caters to the tastes of its customers.
3. Partners: Create and nurture a network of customers, suppliers, and create a winning team out of such networks.
4. Profit: To maximize the profitability of the company in each consecutive financial year and exceed the financial expectations of shareholders.
5. Productivity: Red Bull seeks to be a highly efficient company that is lean, effective, and fast moving relative to other energy drinks manufacturers.

Resources of Red Bull Company

The following is the list of the resources (tangible and intangible) that Red Bull Company has to help it pursue its objectives.

1. Technological infrastructure which includes machinery and equipment that the company uses to build its competitive advantage
2. Well-Motivated staff who work tirelessly to help the firm attain its goals
3. Physical location where it can access markets
4. Brand Equity – the firm and its products are quite popular in the country and region

 STP Analysis of the company

The company is mainly engaging in the differentiation strategy whereby it seeks to position its products differently from other brands in the energy drinks market. First and foremost, their pricing strategy dictates higher prices in the market relative to other brands. Another differentiation strategy is the quality that they offer. With this approach, they use their high financial performance as the strength to push this agenda. They hire high quality production teams to ensure that the quality is upheld to justify its higher-than-average prices. They also use their competent personnel to drive sales and conquer new and emerging markets such as the youth in Singapore. To beat the nightmare of competition, the company facilitates reinforcement of there distribution system. The distribution system is part of the strength which makes them stronger in influencing the brand market. Also, the company engages in intensive advertisement which continuasly rebrands themselves according to the market of Singapore. The company also engages in promosional activities that helps in making people in country to know about the product. The promotion is achieved through road-shows which is scheduled after every six months hence leading to increased market share held in the company. Finally, introduction of new variants of Red Bull in the market the company undertakes research of the market. There exists five variants currently and at end of the year the Red Bull company wishes to introduce extra brand. More research are being carried out by the company to make Red Bull product more healthier to consumers. The increase of quality is enhanced by reducing caffeine amount in the drink and also retaining the energy effects which the consumer expects from the products.

External Analysis

MACRO: PESTLE Analysis of company

Political

The political atmosphere in Singapore is quite calm. It is very difficult to hear of political unrest in the city and country. This is the reason that has led to several investors opting to establish their businesses in Singapore. Elections and other political activities are not significantly controversial to raise the attention of international players. This environment is suitable for business establishments such as the one held by Red Bull Company (Jamison 2005, p.290).

Economic

Economic indicators are also good as they favor the business that Red Bull Company is doing at the time. There is high demand during peak season which is mostly throughout the year. The incomes of the populations are said to be high enough the locals to afford the products offered by the firm. Corporate clients also are profitable enough to consider the special products that are provided by the firm (Verhoef, et al. 2009, p.334).

Social

The community of Singapore is one that is tidy and loves packaged products. This culture of organization and tidiness makes Red Bull an attractive product to consume. It makes them feel good due to the high quality packaging that it has (Demishkevich 2015, p.104).

Technological

Singapore has quite advanced technological infrastructure that is at the disposal of businesses such as Red Bull Company. It helps businesses to be more efficient in the production and marketing of the goods and services that they offer to customers (Laszlo 2015, p.1037).

Legal

The legal environment is favorable to the packaging industry. The only requirements are that such firms need to obtain business licenses from relevant authorities and more importantly from environment regulatory authorities (Mathews, et al. 2015, p.77). The other important requirement is to file tax returns in good time and also pay such liabilities within the stipulated timeframe. Red Bull Company fulfills all these requirements in totality (Camillo, et al. 2013, p.183).

Ecological

As indicated above, there are environmental obligations that packaging companies need to observe. The rules require firms to ensure that their operations do not compromise the integrity of the environment. For instance, there are rules that...