Task 3 of Marketing Mix for ‘Red Bull UK’
Marketing is a crucial aspect to the success of a business. Along with the focus on the quality, customer service and customer satisfaction, effective marketing is worth investing (Havaldar, 2010). Earlier than implementing a marketing strategy, it is critical to perform marketing mix analysis. Marketing mix is a marketing tool, which is employed to determine the choices an organization has to adopt the process of launching a product in the market (Richter, 2002). Marketing mix analysis is comprised of four components commonly known as 4 P’s including product, price, place and promotion (Bowman& Gatignon, 2010). Marketing mix combines these components for getting the output to achieve in the target market. In order to analyze the marketing mix for Red Bull for two chosen target markets in the UK, 4 P’s analysis is conducted surrounding the marketing objectives of Red Bull UK. We make the thesis writing task easy and simple for you through our easy to order thesis writing service.
4 P’s Analysis for First Target Market:
Product refers to the item that satisfies the customer needs. Product may refer to either product or service therefore it may be tangible and intangible both (Flaten, 2006). Product is concerned with the features and benefits offered to customers. The analysis of product before entering into new market or launching a new product helps in assessing the features that can be used to attract the customers (Chandrasekar, 2010). Referring to product of Red Bull UK, it offered energy drink with the label of Energy Shots in 2009. Later in 2012, it was sold with the label of Total Zero and Flavored Editions in 2013 (Taylor, 2012). It shows that Red Bull has been focusing on the flavors to offer to its potential customers. After the identification of health risk associated with the energy drink, Red Bull marketing objective are focused on making new brand identity of the product so that it can regain customer trust and increase its sale in next three years.
Referring to first target market of Red Bull, sports persons are in need of energy to become physically and mentally active. At the same time, they need a drink which does not harm their overall health condition. The main ingredients used in Red Bull is caffeine, sugar, taurine and glucuronolactone. These ingredients are claimed to energize the body especially before hard psychical activity such as sports and gym.
Considering sports persons as target market, Red Bull needs to be strategically involved in reducing the harmful ingredients from the drinks. These harmful ingredients may be sugar, caffeine as well as taurine. The presence of these ingredients in the energy drinks and particularly in Red Bull drinks are proven to have negative impact on the health. On account of incident of death of basketball player, Red Bull must consider revising its recipe by adding other healthy ingredients in the drink. Apart from the health effects of the drink, flavor is of great importance. The taste and flavor of the energy drinks for sports persons should be strong. It must be carbonated because most sport persons like to have strong drink rather than sweet sugary. An online platform that provides the best essay writing service for students around the world
To ensure the control over the product, customers’ feedback will be taken particularly at the sale point and social media pages. According to Trehan& Trehan (2013), customer feedback is related to customer satisfaction and therefore feedback is core of any successful marketing activity because it takes the brand name everywhere with either good or bad experience.
Price of the product is of great significance when launching a new product or entering into new market (Smith& Taylor, 2004). The decision of customers may largely be affected by the product price. Customer group from working class may not be able to afford an expensive product. Therefore, determination of price should take the socioeconomic class of the customers into account. Moreover, price can have considerable effect on the demand and supply of the product (Peng, 2010). Referring to price determination for the sports persons as target market in the UK, Red Bull is likely to face challenges related to increase rate of raw material and high tax imposed by the UK government. However, Red Bull must consider the price of other energy and sport drinks in the market. It can determine differentiated prices on the basis of quality and quantity of the energy drinks. It may offer energy drinks of various sizes and quality while at the same time offering different prices. Despite the fact that sports persons need energy drinks similar to Red Bull but due to availability of substitute they will not be ready to pay the high prices. On the other hand, the fact cannot be ignored that keeping the prices high will make Red Bull superior over other sport drinks. This will also help it to create unique brand identity. Adopting strategy of price according to quality and quantity will aid Red Bull to achieve its marketing objectives related to increasing the sale. Having various range of prices will not only be convenient and affordable for the customers but will also enhance the sale of the Red Bull.
Place is concerned with the location, which will be convenient for the customers to access the products. According to Bowman& Gatignon (2010), selection of place or location is significant in determining how easily customers will be able to access the products. Place of products can have considerable role in the creation of brand image of a product because place should not only be convenient for customers to reach but also compatible with the products attributes and target market (Peng, 2010). Different forms of places or distribution channels are sales force, franchise, supermarket, online stores, and display point. Considering the place selection for the Red Bull UK for the sports persons, choices are various. From general to specific places can be used for the make the product available for them. There are number of sports and leisure centers in urban areas of UK. Moreover, other fitness centers, gyms and sports stores are also the destination of sports persons. Therefore, best possible selling place for Red Bull for sports persons is sports, fitness centers, gyms and sports stores. An amazing online platform that offers all types of coursework writing to make it joyful for students.
Promotion of a product is concerned with the use of communications tools to advertise and market the products. Various forms of promotions are electronic and paper advertising, public relations, promotional offers, bill boards, hoardings and sports sponsorship (Ferrell& Hartline, 2012). Efficient and effective promotion of product can lead to extensive brand recognition and brand identity (Strydom, 2005). Red Bull has been engaged in aggressive marketing through sport sponsor and electronic advertising in past. It has been associated with attributes such as thrill, activeness, and fitness, therefore, most of the advertisement of Red Bull are based on adventurous activity. In order to promote the Red Bull for the sports persons in the UK, Red Bull should consider focusing on different aspects of sports. This can be carried out through advertising on the sale points of sports stores, sports centers, and sports events. On the same ground, sports sponsorship can be as effective as advertising on the sale points. Social media has been widely used UK by all age groups and genders. Online means can also be used for promotion of products including social media marketing and website marketing.
Measuring the effectiveness of the promotional activity is also significant along with the implementation so that control can be maintained. According to Shimp (2008), measuring effectiveness of promotion and advertisement ensures to ignore financial mistakes, assess alternative strategies, and grow the efficiency of the promotion campaign. Trehan& Trehan (2013) argued that sale growth is the most effective scale to measure the effectiveness of the promotion and advertisement activity. According to them, there is increase in the sale of the product as a result of effective promotion.
To make the promotion effective, in the first year, all three suggested means should be employed wherein advertisement should be more emphasized on the sale points throughout three years. According to Trehan& Trehan (2013), sale points are more effective for advertisement than other advertisement media. Its effectiveness can easily be measured and controlled. Moreover, online and paid social media marketing can be executed after every week for first six of three years. Paid online marketing can be expensive and can affect the overall marketing budget. The effectiveness of online and social media marketing can be evaluated by the traffic to website and user engagement on the social media pages. As far as sport sponsor is concerned, it is considerably costly but effective. Therefore, sponsorship should be adopted on particular sports events such as World cups, Champions trophy and Olympics.
4 P’s Analysis for Second Target Market:
Referring to the second target market of Red Bull UK, people living in urban areas are characterized with specific lifestyle regardless of gender and social class. These characteristics include working all day long, living stressed and hectic life. This all together results in stressed and tiredness. A can of Red Bull is likely to boost the energy level in these types of people to undergo substantially challenging jobs in the most reasonable and easiest way. However, there are number of energy drinks in the UK market. Red Bull to implement its marketing strategy must consider offering different flavors in the energy drinks. In this respect, to target this market, Red Bull should offer different flavors in the drink ranging from fruits to coffee flavor. This will not only make them sense of familiarity with the drink but also the thought that drink is safe.
Other health risk elements associated with Red Bull need to be addressed too. Sugar and caffeine are critical ingredient of Red Bull. General perception about the high sugar and caffeine intake is not related to healthy habit. Therefore, Red Bull should consider offering sugar free as well as caffeine free drinks. As people in UK are getting more and more health awareness they are more conscious about what they eat and drink. Presence of ingredients such as taurine and glucoronolactone can lead negative impact on the customer perception about Red Bull. Considering this perspective, Red Bull can go farther by including health related vitamins and minerals in the drink. This approach will not only assist in rebranding the product image but also in increasing the sale in next three years. Students who feel shattered while facing challenges in their dissertation writing can easily buy dissertation online from us.
Discussing the price of Red Bull energy drinks for the second target market, Red Bull has always adopted high price strategy. There is significant advantage of keeping high price of product. High price makes the product superior and significantly helps in creating brand image. However, high price may affect the return on investment. High price is likely to lead to decline in the sale growth resulting in decline in profit (Johanson, 2010). Keeping the high price, Red Bull will not be able to achieve its marketing objectives. The second target market of Red Bull UK is people who work all day long and they need energy boost to carry on their jobs. This indicates to the working class also known as middle class in the UK. Working class in UK may not be able to afford the high price of Red Bull due to their financial condition specifically when the same type of energy drink is available in lower prices.
Considering the prices of competitors in the UK energy drink market, Red Bull should set its prices equal to its competitors. Major competitors of Red Bull in UK are Monster, Rock star, and Lucozade. Their 100ml bottle price range from£1 to£1.30 whereas same 100ml can price of Red Bull is£3.99, which is twice double of competitors. In order to compete in the market and to achieve its marketing objectives, Red Bull should set its prices for second target market equal to its competitors for first year. The price strategy should be evaluated each year to determine whether or not price reduction has an effect on the sale.
Red Bull has been offering its energy drinks at different locations including vending machines, bars and clubs, restaurants, supermarkets and online stores. Supermarkets are destinations of many people in UK. People visit these supermarkets for buying grocery and other items of needs. There are number of supermarkets in the UK namely ASDA, Waitrose, Sainsbury’s, Marks& Spenser and TESCO. Moreover, night bars, clubs, restaurants are also important destination of many people in UK. In order to target people living in urban areas of UK, multi-location approach can be adopted. In this regard, supermarkets and bars can very be effective. Similarly, there is increasing trend of online shopping in the UK. Different energy drink brands have their own official websites such as RockStar Energy Shop and Lucozade Sport Shop. From these websites, users can order and buy energy drinks. Social media is another medium from where users can order and buy the products. Various social media websites used for providing customers a platform to get in touch with the brand. In today’s era, online medium for shopping is as popular as offline. Therefore, to achieve the marketing objectives, Red Bull needs to focus on both. In the first year, it must focus on offline medium as selling points. In the second year, it should focus on the online selling points. We aims to offer the flawless assignment writing service to all the students residing in the UK
Promotion of Red Bull for people of urban can be daunting task. Red Bull has been promoting the Red Bull brands through associating it with sports. Therefore, it is general perception that Red Bull is only made for sports persons. It has largely been sponsoring sport events such as auto racing and other adventurous activities. In addition, the famous slogan of Red Bull mainly focused on the similar aspect such as“It gives you wings”. In different advertisement of Red Bull different stunts are shown, which is hardly close to reality. To target common people, there is need for adopting different approach for promotion. Moreover, Red Bull has been limited in using channels for marketing and promotions in past. To target the large customers, it needs to be diverse. Multichannel marketing/promotion can be turned into an appropriate marketing solution for targeting the customers for Red Bull UK. Multichannel marketing refers to adopting various channels to reach targeted customers. According to Arikan (2011), today marketing has become more challenging than ever before. Number of ways to reach to customers where on one hand has formed convenience on the other hand it has become difficult and costly. Multichannel marketing may be costly however its return on investment is remarkably high (Arikan, 2011). Multichannel promotion and marketing can be crucial for the branding of Red Bull. With regard to multichannel, online and offline promotion medium can be chosen. Offline marketing, also known as traditional marketing, is concerned with sale promotional marketing, direct mail or newsletter marketing, bill board and hoarding marketing. Online marketing may involve web banner ads, floating ads, search engine marketing, search engine optimization and social media marketing. In offline marketing and promotion, street hoarding and bill boards can be very effective. These bill boards can be entrenched on busy streets of the towns and cities. Offline marketing can be pursued for first two years of the marketing plan periodically. Moreover, in online marketing, social media alone can be very effective. Social media marketing can be made effective by frequent communication with customers through answering their queries, posting new contents, and engaging customers. Social media marketing is not only cheap but its return on investment is higher. However, its return can be slow. Therefore, it is recommended to carry on social media marketing throughout the three years of the time. Effectiveness of social media marketing can be far-reaching so is the tool for measuring its effectiveness. Social media marketing can be used for creating brand image of product through constant communication with customers.