Brand Audit Report
2012
Submitted by: Farhan Farooq Ali
FA07-MB-0043
Submitted to: Sir Baber Wahab
Marketing Management
Market Audit
Sports and Energy Drinks UK Market
Focusing on the Microenvironment of Red Bull
Table of Contents 1.0 Introduction 4 2.0 Industry Analysis 5 2.1 Market Analysis 5 2.2 Growth 7 3.0 Market Focus: Red Bull 13 3.1 Red Bulls Strategy 13 3.2 Porter’s Five Forces 13 4.0 Conclusions & Recommendations 18 5.0 Reference 19
Executive Summary
Red Bull’s strength seems to be based on their strategy of concentrating on its 1 Main product; the company seeks to develop a strong brand image through sponsorship of important events while focusing on its core-competences of Red Bull drink and its sugar free variant. The use of such a strong international brand means that the company’s products have powerful recognition before they are even introduced to new international markets. Young people nationwide have developed a natural affinity with the brand, finding great utility in the core benefits of the product. Careful selection of appropriate distribution channels and the creation of a brand image created around extreme events and high profile sports have helped quickly establish a premium position within the market.
Energy and Stimulant drinks have settled themselves as a fixture in the non alcoholic drinks market, the continued popularity has boosted the market’s value and despite increasing sales and increased competition, prices are still at a premium. This sector is lucrative as consumers appear to be prepared to pay a relatively high price per litre for single-serve units of the convenient energy boosting drinks. Increasing numbers of ‘Cash Rich – Time Poor’ individuals has resulted in functionality becoming a key factor, new flavours, sugar free variants and bottle changes have all been attempted by the leaders in the market. Red Bull and GSK (Lucozade) account for a large percentage of sales in the energy market
Submitted by: Farhan Farooq Ali
FA07-MB-0043
Submitted to: Sir Baber Wahab
Marketing Management
Market Audit
Sports and Energy Drinks UK Market
Focusing on the Microenvironment of Red Bull
Table of Contents 1.0 Introduction 4 2.0 Industry Analysis 5 2.1 Market Analysis 5 2.2 Growth 7 3.0 Market Focus: Red Bull 13 3.1 Red Bulls Strategy 13 3.2 Porter’s Five Forces 13 4.0 Conclusions & Recommendations 18 5.0 Reference 19
Executive Summary
Red Bull’s strength seems to be based on their strategy of concentrating on its 1 Main product; the company seeks to develop a strong brand image through sponsorship of important events while focusing on its core-competences of Red Bull drink and its sugar free variant. The use of such a strong international brand means that the company’s products have powerful recognition before they are even introduced to new international markets. Young people nationwide have developed a natural affinity with the brand, finding great utility in the core benefits of the product. Careful selection of appropriate distribution channels and the creation of a brand image created around extreme events and high profile sports have helped quickly establish a premium position within the market.
Energy and Stimulant drinks have settled themselves as a fixture in the non alcoholic drinks market, the continued popularity has boosted the market’s value and despite increasing sales and increased competition, prices are still at a premium. This sector is lucrative as consumers appear to be prepared to pay a relatively high price per litre for single-serve units of the convenient energy boosting drinks. Increasing numbers of ‘Cash Rich – Time Poor’ individuals has resulted in functionality becoming a key factor, new flavours, sugar free variants and bottle changes have all been attempted by the leaders in the market. Red Bull and GSK (Lucozade) account for a large percentage of sales in the energy market