ELECTRONIC ASSIGNMENT COVER SHEET Course/Unit Information Course Girne American University MBA Program Unit Name Strategic Management Unit Code GB7032 Unite Type Mandatory Module Instructor Information Name Dr. Soofi Anwar Email Assignment Information Full/ Part Assignment Assignment Issued Assignment Due Student Information (To be filled by the student prior submitting the assignment) Name Student ID Email STUDENT DECLARATION I hereby confirm that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced as per Harvard Referencing format. I further confirm that I have read and understood the Westford rules and regulations about plagiarism and copying and agree to be bound by them. Declaration □ Tick the box to agree Date of Submission Click or tap to enter a date. GENERAL GUIDELINES (Please read the instructions carefully) 1. All assignments must be submitted as an electronic document in MS Word to the LMS. 2. Use Font Tahoma 10 with line spacing 1.5 and justified alignment. 3. Assignment submissions are subject to the University Policy. Only one REDO attempt is allowed. Non submissions are subject to fines. 4. A mandatory attendance requirement of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified by the Academic Director. 5. The assignment should not contain any contents including references cited from websites like www.ukessays.com, www.studymode.com, www.slideshare.net , www.scribd.com. 6. Learners can refer Wikipedia as a source of information, but the references cited in Wikipedia has to be mentioned. 7. Submit the assignment in a MS Word document with the file name being: First Name Abbreviation of the module_First Name Second Name Example: MP_Charles Smith QUICK CHECKLIST BEFORE SUBMISSION □ Cover page duly filled. □ Adherence to the deadline of submission date. □ Original cover sheet and format retained. □ Student information and signature intact. □ Font style and size used as instructed. □ Harvard Referencing Style is strictly followed. The following grading criteria will be applicable for the course. Marks Grade 90 to 100 Distinction 80 to 89 Merit 70 to 79 Credit 60 to 69 Pass ASSESSMENT CRITERIA Module Code Master’s & Title Level MK7051 International Marketing Management Learning Outcomes Demonstrate a clear understanding of the process of strategic management within the business context. A.C 1.1 -Understand the various principles and models used for strategy formulation LO 01 A.C 1.2 -Apply the tools and techniques for analyzing the external and internal environment of the organization. A.C 1.3 -Develop awareness of the various steps for strategy implementation Analyze and evaluate business situations and develop creative solutions, using a strategic management perspective. A.C 2.1 – Develop an understanding of creating and sustaining competitive LO 02 advantage in the marketplace A.C 2.2 – Identify ways to develop innovation and create a learning organization Assessment Type Portfolios Marks Task 01- Report 70 Task 02- Presentation 30 Overall Marks 100 Overall Grade Marks Achieved Pass/Credit/Merit/Distinction Summative Feedback Overall Feedback on current work with emphasis on how the student can further improve in future. Task 01- Report Task 02- PPT ASSIGNMENT BRIEF Red Bull’s Strategic Plan The Middle East’s energy drinks sector is at its peak with unprecedented sales in the retail and hospitality sectors. Yet competition is fierce as international players strive to cash in on the trend. “The margins are so high in this sector that many companies come to take a piece of the pie and then disappear. Most of them are not surviving, as success is dependent on how long brands have been in the market,” says Omar El Banna, Power Horse’s regional marketing manager, Middle East. “Looking at Saudi Arabia, it is almost over-congested with energy drinks brands, with hotels and restaurants accounting for around 20% of our regional business this year, but Egypt holds potential and the entire energy drinks sector grew by 9% last year,” he adds. Egypt is currently Power Horse’s strongest emerging market, with rising numbers of clients in the hospitality sector including Marriott, The RitzCarlton Hotels & Resorts and InterContinental Hotels and Resorts. With ingredients including taurine, glucuronolactone, caffeine, and inositol, Power Horse first entered the region in Saudi Arabia in 1997, followed by the UAE, but it is now seeing demand from emerging markets like Qatar, Bahrain and Oman. While energy drinks routinely combine methylxanthines, B vitamins, inositol, carnitine, creatine, glucuronolcatone, ginkbo biloba, taurine, ginseng, and maltodextrin, El Banna says Power Horse informs customers not to mix the drink with alcohol, however there are no strict regulations in place against the move, so it has become a regular feature on drinks menus. But is not just Power Horse that is popular in the market, with Red Bull taking the greatest share of the energy drink market in the region. A far cry from the modern packaging and dynamic marketing of today’s brands, Japanese-based Taisho Pharmaceutical first introduced Lipovitan back in the 1960’s. One of the earliest known energy drinks; the brown 100ml bottles became widespread in East Asia. However, it was Red Bull in its silver and blue bullet-can format – initially developed by Thai businessman Chaleo Yoovidhya as a drink called Krating Daeng – that really activated the presence of energy beverages on a global scale. Red Bull kickstarted marketing campaigns for its namesake drink in Austria in 1987, and distribution expanded to Hungary, Slovenia, Germany, the UK and the US by 1997. The company achieved sales of 300 million cans in the following year, and boasted availability in more than 50 countries by 1999.Since its UAE launch in 1998, Red Bull has maintained its status at the top of the country’s energy drink leader board, yet Raed Gerges, its director of communications, is confident the brand will continue to surpass rivals, due to its premium image and significant presence in the foodservice sector spanning every country in the Middle East. “The sales growth in the UAE has been rising in strength since its launch, so we are expecting further growth in this dynamic country for Red Bull, which created the category and has been leading since,” comments Gerges. Breaking down its content, each 250ml can contains ingredients including 27g of sugar, 1000mg of taurine, 80g of caffeine, as well as sodium citrates, caramel and riboflavin colors and inositol, believed to serve as a source of metabolic regulators and as membrane anchors for certain proteins. Although a practice advised against on the labelling of most brands, the onset of the 21st century marked the commencement of energy components being added to alcoholic beverages, which continues to ramp up sales today. One-Armed Scissor, JägerBomber, Night Bandit and Black Bull have emerged as attention-grabbing names for mixtures of energy beverages combined with vodka, Jägermeister, whiskey and Guinness respectively. Responding to whether Red Bull is promoted for use with alcoholic beverages, Gerges refutes the suggestion, saying it is sold solely for consumers to deal with the “daily demands of life”. Red Bull, however, issues a warning that the products are not recommended for people sensitive to caffeine, pregnant women, children and diabetics. Dubai-based bars Après and Left Bank, however, which combined see 1600 covers weekly, have also reaped dividends from the growing shift towards energy drinks among customers. However, Francesco Leoni, executive bar development manager for Emirates Leisure Retail, is quick to emphasise that bar staff should monitor customers’ intake of energy mixes. “They should be consumed in moderation as they automatically pump you up, whereas alcohol does the opposite, so I would stay away from mixes of simply spirits and energy drinks, and rather rely on more skilful recipes,” Leoni says. Saying this though, Leoni highlights that energy drinks have become a ‘must’ in mixology sessions, as they create different chemistries with tastes, aromas and textures, and in turn are big sellers. Away from the bright lights of Red Bull, other brands have set their mark in the Middle East in a bid to capture a share of the lucrative market. New-Zealand based manufacturer Frucor Beverages, for example, launched V in 1997, designed specifically for daytime use. Spurred by the success of other energy drinks, the market also continues to witness a surge of new launches. Another newcomer in the region is Effect from German-based MBG International Premium Brands, which joined forces with its UAE distributor Emirates Snack Foods (ESF), in June 2006, fuelled by its success in markets such as India, Europe and South America. With the hospitality sector now accounting for 25% of the brand’s turnover and having captured the potential in bars and sports sponsorships, the brand’s development of cocktail menus for bars using its core product have played a critical role in its turnover, with the future now looking bright. “We plan to continue growing, and aim to be a credible alternative to the leader, and our share of the hospitality segment is growing by the day as more outlets become convinced of our value proposition,” comments Anusha Prabhakar, food service account manager, Effect. Margins in the energy drinks category can double those of other carbonated drinks, so the category has become appealing for smaller producers, with the UK, Ireland and Germany currently positioned as the biggest markets in Europe. The global response to energy drinks has not always been positive, and in response, brands including Energy69 have emerged with alternative, healthy alternatives. Richard Horwell, the company’s marketing director describes the reaction to the ‘non fizzy’, Dutch-produced energy drinks as “nothing less than staggering”. With ingredients including maltodextrin, which has a slower release than most other sugars, the range is set to debut in the UAE in the coming months. In the meantime, the energy drinks market continues to grow from strength to strength, as an energy booster, mixer or simply as an alternative to alcoholic drinks Scenario You are hired as a strategy consultant by Red Bull who intends to launch a new range of Energy Bars in the UAE. You are required to come up with a background of the market dynamics of the industry in the UAE. Discuss a feasibility and viability analysis for the launch of the Energy Bars into the UAE market which will be done with the help of analysis as suggested below. Your outcomes must be presented to your faculty in a maximum of 10 slides. You will then individually present a report on the presentation in not more than 2500 to 3000 words. The assignment is divided into 2 parts to justify both practical as well as theoretical requirements of the module. Task 01- Report [70 Marks] [2500-3000 words] Executive Summary: You should summarize your strategic plan (no more than one page of A4 paper). This should outline the key messages and be prepared in a format that would be suitable for presentation to the senior management team for Red Bull. [5 Marks] 1. Energy Bars Market: Critically evaluate the scope of the Energy Bars market in the UAE for Red Bull. Analyse the market with examples and data in form of graphs/charts/tables highlighting market size, CAGR, top players, investments etc. to support the analysis. [10 Marks] 2. Strategic Plan: With the use and application of relevant strategic models; critically discuss and present a feasibility and viability for the launch of the Red Bull’s Energy Bars into the UAE market in 3 distinctive section as below. [30 Marks] a. Strategic Positioning b. Strategic Choice c. Strategy in Action 3. Recommendations and Conclusion: Finally, summarize and discuss all the acquired findings and analysis and provide a conclusion. Communicate the recommendations for Red Bull to launch their Energy Bar in the UAE. [15 Marks] 4. References and Appendices: Adhere to Harvard Referencing Style only. Make use of the additional resources provided and cite credible academic sources. Alternatively provide citations from credible commercial sources like PWC, Deloitte, KPMG, CB Insights, and/or Annual Reports to support your work. Use the section of appendices wisely to provide your analysis when using and applying the PESTLE, SWOT, Porter’s Framework, BCG Matrix, Ansoff Growth Matrix, etc. Captions should be provided for all insertions- tables/charts/diagrams/pictures/graphs etc. You can also provide screenshots of the PowerPoint Presentation if needed. [10 marks] Task 02- PPT [30 Marks] [Max of 10 slides] PPY to present your strategic plan. ELECTRONIC ASSIGNMENT COVER SHEET Course/Unit Information Course Girne American University MBA Program Unit Name Strategic Management Unit Code GB7032 Unite Type Mandatory Module Instructor Information Name ************* Email ************* Assignment Information Full/ Part Assignment Full Assignment Issued Assignment Due Student Information (To be filled by the student prior submitting the assignment) Name *********** Student ID ************** Email ************* STUDENT DECLARATION I ****** hereby confirm that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced as per Harvard Referencing format. I further confirm that I have read and understood the Westford rules and regulations about plagiarism and copying and agree to be bound by them. Declaration X Tick the box to agree Date of Submission 13-03-2021 GENERAL GUIDELINES (Please read the instructions carefully) 1. All assignments must be submitted as an electronic document in MS Word to the LMS. 2. Use Font Tahoma 10 with line spacing 1.5 and justified alignment. 3. Assignment submissions are subject to the University Policy. Only one REDO attempt is allowed. Non submissions are subject to fines. 4. A mandatory attendance requirement of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified by the Academic Director. 5. The assignment should not contain any contents including references cited from websites like www.ukessays.com, www.studymode.com, www.slideshare.net , www.scribd.com. 6. Learners can refer Wikipedia as a source of information, but the references cited in Wikipedia has to be mentioned. 7. Submit the assignment in a MS Word document with the file name being: First Name Abbreviation of the module_First Name Second Name Example: MP_Charles Smith QUICK CHECKLIST BEFORE SUBMISSION x Cover page duly filled. x Adherence to the deadline of submission date. x Original cover sheet and format retained. x Student information and signature intact. x Font style and size used as instructed. x Harvard Referencing Style is strictly followed. The following grading criteria will be applicable for the course. Marks Grade 70 to 100 A – Distinction 60 to 69 B – Merit 50 to 59 C- Pass 40 to 49 Fail with Resubmit 0 to 39 Fail with Retake ASSESSMENT CRITERIA Module Code Master’s & Title Level MK7051 International Marketing Management Learning Outcomes Demonstrate a clear understanding of the process of strategic management within the business context. A.C 1.1 -Understand the various principles and models used for strategy formulation LO 01 A.C 1.2 -Apply the tools and techniques for analyzing the external and internal environment of the organization. A.C 1.3 -Develop awareness of the various steps for strategy implementation Analyze and evaluate business situations and develop creative solutions, using a strategic management perspective. A.C 2.1 – Develop an understanding of creating and sustaining competitive LO 02 advantage in the marketplace A.C 2.2 – Identify ways to develop innovation and create a learning organization Assessment Type Portfolios Marks Task 01- Report 70 Task 02- Group Presentation 30 Overall Marks 100 Overall Grade Marks Achieved Pass/Merit/Distinction Summative Feedback Overall Feedback on current work with emphasis on how the student can further improve in future. Task 01- Report Task 02- Group PPT ASSIGNMENT BRIEF Red Bull’s Strategic Plan The Middle East’s energy drinks sector is at its peak with unprecedented sales in the retail and hospitality sectors. Yet competition is fierce as international players strive to cash in on the trend. “The margins are so high in this sector that many companies come to take a piece of the pie and then disappear. Most of them are not surviving, as success is dependent on how long brands have been in the market,” says Omar El Banna, Power Horse’s regional marketing manager, Middle East. The margins are so high in this sector that many companies come to take a piece of the pie and then disappear. Most of them are not surviving as success is dependent on how long brands have been in the market. “Looking at Saudi Arabia, it is almost over-congested with energy drinks brands, with hotels and restaurants accounting for around 20% of our regional business this year, but Egypt holds potential and the entire energy drinks sector grew by 9% last year,” he adds. Egypt is currently Power Horse’s strongest emerging market, with rising numbers of clients in the hospitality sector including Marriott, The Ritz-Carlton Hotels & Resorts and InterContinental Hotels and Resorts. With ingredients including taurine, glucuronolactone, caffeine, and inositol, Power Horse first entered the region in Saudi Arabia in 1997, followed by the UAE, but it is now seeing demand from emerging markets like Qatar, Bahrain and Oman. While energy drinks routinely combine methylxanthines, B vitamins, inositol, carnitine, creatine, glucuronolcatone, ginkbo biloba, taurine, ginseng, and maltodextrin, El Banna says Power Horse informs customers not to mix the drink with alcohol, however there are no strict regulations in place against the move, so it has become a regular feature on drinks menus. But is not just Power Horse that is popular in the market, with Red Bull taking the greatest share of the energy drink market in the region. A far cry from the modern packaging and dynamic marketing of today’s brands, Japanese-based Taisho Pharmaceutical first introduced Lipovitan back in the 1960’s. One of the earliest known energy drinks; the brown 100ml bottles became widespread in East Asia. However, it was Red Bull in its silver and blue bullet-can format – initially developed by Thai businessman Chaleo Yoovidhya as a drink called Krating Daeng – that really activated the presence of energy beverages on a global scale. Red Bull kickstarted marketing campaigns for its namesake drink in Austria in 1987, and distribution expanded to Hungary, Slovenia, Germany, the UK and the US by 1997. The company achieved sales of 300 million cans in the following year, and boasted availability in more than 50 countries by 1999.Since its UAE launch in 1998, Red Bull has maintained its status at the top of the country’s energy drink leader board, yet Raed Gerges, its director of communications, is confident the brand will continue to surpass rivals, due to its premium image and significant presence in the foodservice sector spanning every country in the Middle East. “The sales growth in the UAE has been rising in strength since its launch, so we are expecting further growth in this dynamic country for Red Bull, which created the category and has been leading since,” comments Gerges. Breaking down its content, each 250ml can contains ingredients including 27g of sugar, 1000mg of taurine, 80g of caffeine, as well as sodium citrates, caramel and riboflavin colors and inositol, believed to serve as a source of metabolic regulators and as membrane anchors for certain proteins. Although a practice advised against on the labelling of most brands, the onset of the 21st century marked the commencement of energy components being added to alcoholic beverages, which continues to ramp up sales today. One-Armed Scissor, JägerBomber, Night Bandit and Black Bull have emerged as attention-grabbing names for mixtures of energy beverages combined with vodka, Jägermeister, whiskey and Guinness respectively. Responding to whether Red Bull is promoted for use with alcoholic beverages, Gerges refutes the suggestion, saying it is sold solely for consumers to deal with the “daily demands of life”. Red Bull, however, issues a warning that the products are not recommended for people sensitive to caffeine, pregnant women, children and diabetics. Dubai-based bars Après and Left Bank, however, which combined see 1600 covers weekly, have also reaped dividends from the growing shift towards energy drinks among customers. However, Francesco Leoni, executive bar development manager for Emirates Leisure Retail, is quick to emphasise that bar staff should monitor customers’ intake of energy mixes. “They should be consumed in moderation as they automatically pump you up, whereas alcohol does the opposite, so I would stay away from mixes of simply spirits and energy drinks, and rather rely on more skilful recipes,” Leoni says. Saying this though, Leoni highlights that energy drinks have become a ‘must’ in mixology sessions, as they create different chemistries with tastes, aromas and textures, and in turn are big sellers. Away from the bright lights of Red Bull, other brands have set their mark in the Middle East in a bid to capture a share of the lucrative market. New-Zealand based manufacturer Frucor Beverages, for example, launched V in 1997, designed specifically for daytime use. Spurred by the success of other energy drinks, the market also continues to witness a surge of new launches. Another newcomer in the region is Effect from German-based MBG International Premium Brands, which joined forces with its UAE distributor Emirates Snack Foods (ESF), in June 2006, fuelled by its success in markets such as India, Europe and South America. With the hospitality sector now accounting for 25% of the brand’s turnover and having captured the potential in bars and sports sponsorships, the brand’s development of cocktail menus for bars using its core product have played a critical role in its turnover, with the future now looking bright. “We plan to continue growing, and aim to be a credible alternative to the leader, and our share of the hospitality segment is growing by the day as more outlets become convinced of our value proposition,” comments Anusha Prabhakar, food service account manager, Effect. Margins in the energy drinks category can double those of other carbonated drinks, so the category has become appealing for smaller producers, with the UK, Ireland and Germany currently positioned as the biggest markets in Europe. The global response to energy drinks has not always been positive, and in response, brands including Energy69 have emerged with alternative, healthy alternatives. Richard Horwell, the company’s marketing director describes the reaction to the ‘non fizzy’, Dutch-produced energy drinks as “nothing less than staggering”. With ingredients including maltodextrin, which has a slower release than most other sugars, the range is set to debut in the UAE in the coming months. In the meantime, the energy drinks market continues to grow from strength to strength, as an energy booster, mixer or simply as an alternative to alcoholic drinks Scenario Your team is hired as Market Strategists by Red Bull who intends to launch a new range of Energy Bars in the UAE. As a part of the group you are required to come up with a background of the market dynamics of the industry in the UAE. The team is required to discuss a feasibility and viability analysis for the launch of the Energy Bars into the UAE market which will be done with the help of analysis as suggested below. Your group work outcomes must be presented to your faculty in a maximum of 15 to 17 slides. You will then individually present a report on the presentation in not more than 2500 to 3000 words. The assignment is divided into 2 parts to justify both practical as well as theoretical requirements of the module. Task 01- Report [70 Marks] [2500-3000 words] Executive Summary: You should summarize your strategic plan (no more than one page of A4 paper). This should outline the key messages and be prepared in a format that would be suitable for presentation to the senior management team for Red Bull. [5 Marks] 1. Energy Bars Market: Critically evaluate the scope of the Energy Bars market in the UAE for Red Bull. Analyse the market with examples and data in form of graphs/charts/tables highlighting market size, CAGR, top players, investments etc. to support the analysis. [10 Marks] 2. Strategic Plan: With the use and application of relevant strategic models; critically discuss and present a feasibility and viability for the launch of the Red Bull’s Energy Bars into the UAE market in 3 distinctive section as below. [30 Marks] a. Strategic Positioning b. Strategic Choice c. Strategy in Action 3. Recommendations and Conclusion: Finally, summarize and discuss all the acquired findings and analysis and provide a conclusion. Communicate the recommendations for Red Bull to launch their Energy Bar in the UAE. [15 Marks] 4. References and Appendices: Adhere to Harvard Referencing Style only. Make use of the additional resources provided and cite credible academic sources. Alternatively provide citations from credible commercial sources like PWC, Deloitte, KPMG, CB Insights, and/or Annual Reports to support your work. Use the section of appendices wisely to provide your analysis when using and applying the PESTLE, SWOT, Porter’s Framework, BCG Matrix, Ansoff Growth Matrix, etc. Captions should be provided for all insertions- tables/charts/diagrams/pictures/graphs etc. You can also provide screenshots of the PowerPoint Presentation if needed. [10 marks] Task 02- PPT [30 Marks] [Max of 15 to 17 slides] Present your strategic plan as part of a Group Presentation. This would be conducted during the final phases of the course on a mutually agreed time slot (between the learner and the faculty). The time allotted for the presentation is 30 minutes (20 minutes presentation followed by 5 minutes Q&A) and would be evaluated based on content, presentation skills and interaction. Before final submission, provide evidence of the presentation by pasting the screenshot of the presentation. Students could make any assumptions with reasonable justifications for the above tasks. The Report (Task 1) and the Group Presentation (in PPT format for task 2) should be submitted on the LMS on or before the specified submission deadline. Table of Contents 1. 11 2. 12 2.2. 12 2.3. 12 3. 13 3.1. 13 3.2. 14 14 3.3. 15 3.3.1. 15 3.3.2. 16 3.3.3. 17 3.3.4. 18 3.3.5. 19 3.4. 20 3.4.1. 3.5. 20 21 3.5.1. 21 4. 21 5. 22 6. 24 6.1. 24 6.2. 25 6.3. 27 6.4. 28 1. Executive Summary This paper will outline the development of a new product, energy bars, by Red Bull that will be targeted for the UAE market. This is a strategic plan that the team at Red Bull will use in analysis of the market, competition, and other factors that will lead to a recommendation and conclusion on the way forward. Firstly the team will look at energy bars markets at the global level where there has been a steady growth led by the USA but now rapidly increasing in Asia, Middle East and Africa, ranging from 3-5% continuous annual growth. This includes both organic and conventional energy bars though more is being seen in the organic types because of worldwide health and wellness drives. The paper will then review UAE energy bar markets where rival companies are already existing offering wide range of products via different distribution channels. In analyzing the UAE markets, demographic and other factors will also be evaluated. Secondly a strategic plan will be developed using the most appropriate models that suit the company. Red Bull company profile is highlighted showing the strength this organisation has since starting off in 1987. The growth is shown through billions of cans sold per year, the total employees and the number of countries where Red Bull is operating. The vision, mission and values of the company are mentioned. The strategic planning models are then reviewed and discussed in detail to prepare for Red Bull’s introduction of the energy bar in UAE. The STP model looks at who and how the customers will be targeted. External macro environmental forces are evaluated using the PESTEL model and Porters Five forces. A detailed competitors analysis is the conducted to pave way for entry that will give advantage to the company. The SWOT analysis and ANSOFF are then applied in strategic choice and action plans. Finally a recommendation will be made that supports the plan to introduce Red Bull energy bars in the UAE. References to the paper are included and detailed appendices for the chosen models of this strategic plan will also be attached. Key Words: Strategic plan. Red Bull. Energy Bars. UAE. STP. PESTEL. SWOT. ANSOFF 2. Energy Bar Markets 2.1. Introduction Many people all over the world, particularly professional and busy people are becoming healthconscious and making serious choices when it comes to food. The use of energy bars as a source of food and calories for these people has opened big markets for companies that are producing and selling them. Across the world companies are competing for, and expanding their markets for energy bars. It is therefore very important for a company entering or expanding into this market to strategize and formulate a framework that has an upper advantage over competitors (Research, n.d.). 2.2. Global Energy Bar markets Globally, the market for energy bars is on the rise with an increase in annual growths ranging between 3 and 5% depending on type, region and other Figure : Energy Bars by type factors (Research., 2021). The report by Allied Market describes the different types of energy bars as supplemental bars made up of cereal and proteins coming as organic or conventional. They are increasingly being used by those aged 18 – 40 years of age, whether it is the busy office people or sports person (Research., 2021). The highest consumption is in the USA while upcoming markets include Asia-Pacific as well as the Middle Adapted from EMR (2021) East (Research, n.d.), and growth in the market continues to project upwards of 4.8% between 2019 and 2026 (Research., 2021). The increasing urban population coupled with more disposable income, busy schedules and the younger generation’s health/wellness awareness has been driving growth of energy bar markets, fueling the use of online shopping as a channel for distribution (Research., 2021). 2.3. UAE Energy Bar Markets Figure 2: UAE market summary 20202025 Middle Eastern markets are also opening up an increase in the energy bars market, with UAE as a possible strategic target market. The demographic distribution of the UAE will ultimately favour the increase of energy bars; with a population whereby 63% are already obese and 50% of them being below the age of 30 years preferring snacks, it is a ripe market that can be tapped into (Intelligence., 2020). There was a cumulative annual growth rate (CAGR) in energy bar sales of 6.3% between 2014-2019, strongest in 2018, while a huge gross intake of 53.64 AED was realized in 2019. The forecast growth is set at a good 4.46% between 2020 and 2025 (Intelligence., 2020). The government of UAE is also behind this increase in use of energy bars as they are promoting more and more health and wellness programs among citizens. The energy bar market is not new to the UAE as there already many companies in the business. These include Rise Bar, General Mills Inc, Adapted from Mordor Intelligence (2020) Power Crunch, Cliff Bar & Company. Many channels are being used to distribute energy bars in the UAE, and according to the report by Mordor Intelligence, convenience stores and supermarkets are still the main channel, making up more than 50% of sales, while online retailers are picking up pace in sharing the pie (Intelligence., 2020). A strategic framework that looks critically at these market forces and dynamics will Figure 3: UAE distribution channels for energy bars devise a successful way to penetrate and gain competitive advantage on the energy bars business in the UAE. 3. Strategic Planning 3.1. Introduction Adapted from Mordor Intelligence (2020) Strategic planning is broadly and simply a process where an organization puts in place a scope and direction that will give the organization a competitive advantage in meeting customer needs and fulfilling stakeholders expectations (Shah, Syed Tanveer Hussain; Jamil, Raja Ahmed; Shah, Tazeem Ali; Kazmi, Anees., 2015). The writers contend that a strategic plan should have 3 core areas that cover strategic analysis, development and implementation. Micro- and macro-environmental forces are key and contextual in any strategic plan whether it will be prescriptive (a deliberate and intentional step by step procedure) or emergent (adaptive process developed during the course of the plan) (Shah, Syed Tanveer Hussain; Jamil, Raja Ahmed; Shah, Tazeem Ali; Kazmi, Anees., 2015). Andrew & Patrick (2004) argue that for strategic planning to be successful these steps must be followed; “conducting an assessment, identifying business objectives, developing strategy, conducting an impact analysis, and developing an implementation plan’’ (Bachrodt, Andrew K; Smyth, J Patrick., 2004). The market analysis involves in-depth study of the target market; demographics, economic forces, technology, and others, while business objectives must be realistic, attainable and within a given timeframe. Developing the strategy will be focused on coming up with clearly defined and supported action steps, whereas implementation refers to “a Figure 4: Strategic Planning Model realistic, time-sensitive implementation plan that addresses timing, resource requirements, and responsibility” (Bachrodt, Andrew K; Smyth, J Patrick., 2004). Strategic planning as a prescriptive process allows the organization to realize increased costs, plan for any risks, while in a mode prepared to deal with missed opportunities (Mariton, 2016). This paper will lay out a plan for Red Bull company to strategize a market entry into UAE with energy bars Adapted from Jeremie Mariton (2016) as a supplement to other snacks available to mostly the younger, busy and health-conscious professional. 3.2. Red Bull Company Profile Figure 5: Red Bull Logo Red Bull, a company founded in 1987 in Fuschl Austria, is in the food, soft beverages, alcohol and tobacco industry. The Figure 6 Expected Growth in energy bars market in UAE CEO is Dietrich Mateschitz, headquartered in Fuschl, and has over 12 000 employees worldwide in 171 countries (Bull, 2021). It is ranked as the 69th most valuable brand in the Adapted from RedBull.com world, selling 7.9 billion cans in 2020 alone with top growth markets including India (+30%), Brazil (+22%) and Eastern Europe (+22%) (Forbes, 2021). Their marketing drive, built on extreme events, focuses on use of sleek marketing strategies targeting young urban professionals, through sports and entertainment-based adverts has been resonating all over the world with their slogan “Red Bull Gives You Wings since 1987” (Wikipedia, 2021) (Forbes, 2021). Red Bull is not an unknown entity in the UAE having presence through their energy drink product. With a huge following on social media (Instagram, Facebook, Twitter, YouTube) redbulluae commands over 38 thousand followers on Twitter, with over 2300 posts in 2019 (GulfNews, 2003). Having 70 per cent market share in energy drink markets globally, Red Bull grew by four times in the last three years in the Middle East, UAE being the most mature and key Middle East market despite more than 25 competitors sharing the market (GulfNews, 2003). This market presence and global strength will make entry of energy bars into the same market a strategic move for Red Bull, with projected growth at over 4 per cent in coming years. 3.3. Strategic Positioning 3.3.1. Red Bull Mission, Vision and values Adapted from Google.com Red Bull has been on the upward trend of business growth ever since it started operations in 1987. This has been based on sound organizational culture and vision/mission/values aimed at always satisfying customers while competitively edging other players and making profits (Bull, 2021). Every company must always have a vision – the aspirations of what an organization wants to become in the future; a mission statement – details of the steps taken to achieve the vision; as well as values or code of ethics/conduct – what the company believes in and how employees are expected to behave (Learning, 2020). Red Bull has the following: • Red Bull Mission • • “Giving wings to people and ideas” Red Bull Vision • “Red Bull is dedicated to upholding standards while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices, dedicated to coaching and developing our organization as an employer of choice.” • Red Bull Values • People, Ideas, Culture (Bull, 2021). 3.3.2. STP Figure 7: Red Bull Energy Bars STP Model Adapted from self-made, Google.com (2021) In the whole strategic plan for Red Bull’s entry into UAE with energy bars, an STP model is of primary importance. This addresses how the company will use market analysis data to pave way for an entry strategy that can maximize on gaining a huge sustainable customer base that will compete profitably against rivals (Hassan, Salah S; Craft, Stephen., 2012). They contend that segmentation and targeting should not only be based on geographical variables but include consumer behaviors and other individual variables. Given the vast global cultural differences, it is prudent that red Bull’s positioning strategy be as standardized as possible but at the same time taking into cognizance the local conditions in UAE that can be different and challenging compared with other markets (Hassan, Salah S; Craft, Stephen., 2012). Therefore, the main segment of the UAE energy market to reach out will be the young professionals who are busy with lots of activities at work, the sportsperson, as well as the working professional who is health & wellness conscious. In this group are the working class that may not have a lot of time to prepare normal meals but will be fine when given an option of a supplemental energy bar that is able to provide essential calories and protein to help with their busy schedules. However amongst these broad groups the main target will be the young professional and sporty generation, 20-35 years of age. These are the so called “millennials” who are trying by all means to mimic western type of lifestyle, preferring snacks over whole meals, being career-wise focused and busy. To reach them the positioning of energy bars will be done according to where they are spending most of their time. This includes convenience stores in hotels, workspaces, gyms, train/bus stations, airports, as well as general supermarkets and shops. Online availability of energy bars is another channel of distribution that Red Bull will use, partnering with other courier and delivery companies so that the snacks are brought to the customer’s convenience without need to travel to the physical store. The lock-in effect based on the well-known Red Bull energy drink will be also be used in targeting and positioning the new energy bars so that customer loyalty is assured through rewards and “providing value beyond the actual product or service itself” (Venture, 2020). See appendix 6.1 for more. 3.3.3. PESTEL Analysis Figure 8: PESTEL Analysis Self-made (2021) In order to assess the advantages and disadvantages of Red Bull’s strategy entry into the energy bars market in UAE, the use of the PESTEL Analysis model will help understand the external environment, clearly laying out opportunities and risks associated with the move (Coporate Finance Institute, 2021). This analysis looks at the Political, Economic, Social, Technology, Environmental and Legal forces that can affect a business in one way or the other. As Red Bull strategizes on energy bars market entry into UAE it is imperative to evaluate these forces and determine how they will affect its competitive advantage. Appendix 6.2 will give a detailed analysis but below is a snapshot of these factors about UAE in relation to energy bars market. Political – the UAE introduced the “sin” tax on sugar products and tobacco that discourages against unhealthy foods, with as high as 50% tax levies (Insider, 2021). With 60% obesity in UAE and high rates of diabetes, the government has been on a drive for healthy living and wellness awareness programs to try and curb this. This implies that as Red Bull plans for an introduction of energy bars then they have to think along the organic, sugar free and healthier snacks if they are going to realize successful and profitable market entry. Economic – one of the most stable and growing economies in the Middle East is UAE, with a negative inflation rate (-2.6%), dropping interest rates at 1.5%, GDP growth rate of 1.6%, and unemployment at 2.64% (Economics, 2021). This will be an opportunity that Red Bull will use to have a share of the market. Social – with a population made up of 50% younger generation, mostly professionals, busy and healthy conscious, looking at copying the western type of lifestyle; the introduction of Red Bull’s energy bars will be another option from a worldwide brand (Intelligence., 2020). Technology – the presence of energy bars online shopping, though still low, is an opportunity for growth given the target customers who are busy, tech-savvy millennials who prefer online channels. Red Bull social media accounts have a huge following in UAE that can be used to their advantage. UAE has been on a high drive in technology R&D activity as well. Figure 9: Red Bull can recycling Environmental – Red Bull has a go-green policy that supports environmental preservation and “on reducing our carbon emissions and energy use in their production and supply” (RedBull, 2021). This gives the company a big advantage in entering the energy bars market in UAE. Legal – the UAE laws are mostly friendly to businesses and industry Adapted from RedBull (2021) regulation, licensing & permits as well as labour laws which are efficient and make ease of work (Resources, 2021). This will give Red Bull a good platform to establish an energy bars market in UAE 3.3.4. PORTER’s Five Forces In strategic management, a company needs to analyze and understand the risks and competition that is involved, especially for new products/markets. This can be achieved by using the Porters (or Competitors) Forces Model (Coportae Finace Institute, 2021). The threat of potential for the UAE energy market for ed Bull is low because of the advantages that they already have such as brand loyalty, economies of scale, production capacity and good government regulations. With many other products available, huge industry competitors and a medium volume of buyers, Red Bull will face a high bargaining power of buyer. The bargaining power of suppliers is not too high since Red Bull already controls a huge part of the energy product markets. The power of substitutes is medium to low since competitors have higher prices and even though they may have better quality, Red Bull’s brand superiority and loyalty in other products will dampen this. According to this porters forces model, Red Bull can actually challenge and edge current energy bar rivals in the UAE. 3.3.5. Competitive Analysis Figure 10: Porters Five Forces Figure 11: Energy Bars rivals in UAE Adapted from CFI (2021) The energy bars market in the UAE is not virgin or untapped as many established companies already offer these. Red Bull will be facing competitive challenge from such giants as Rise Bar, General Mills Inc., Cliff Bar a nd Company, Natural Balance Foods, among others. All these companies have vast advantages including decades in the business, environmentally friendly approaches, products that cater for various groups of people (pregnant & children) as well as using natural & wholesome ingredients (Intelligence., 2020). This gives Red Bull a tough challenge in which investment in sugar free, broad products with variety of choices and transparency will be of importance if they will make a niche in the market. Appendix 6.3 will detail more on this competitive rivalry and analysis. 3.4. Strategic Choice 3.4.1. SWOT Analysis Figure 12: SWOT Analysis Adapted from Mordor Intelligence Self-made (2021) More details on this SWOT Analysis are in the appendix 6.4 Strengths – Red Bull is well established company that has been in the energy markets for decades, with a well-recognized brand associated with the younger energetic people. As a market leader with many loyal customers in the UAE through its energy drinks, the energy bars will have a good entry using a lock-in effect. Weaknesses – with no history in the energy bars market, Red Bull may not be able to come up with a competitive alternative to what others are already offering Opportunities – UAE is an open market, ready with huge following of younger professional, health & wellness awareness will favour a well-known product Threats – the huge ‘sin’ tax on sugary products, unknown customer response and well established energy bars companies in UAE 3.5. Strategy in Action 3.5.1. ANSOFF Matrix The Ansoff matrix is a very useful business strategy tool that Figure 13: ANSOFF Matrix a company uses to “better understand the risks inherent in growing their business” whether it is the product or new market expansion (Coporate Finance Institute, 2021). With Red Bull energy bars this is under product development where a new product will be introduced in an already existing market. This comes with increasing risks. The UAE energy bars market already exists with other competitors that Red Bull, who are also known for their energy drink product, will be attempting to get a share of the same customers with a new product range of their Adapted from CFI (2021) energy bars, something in the form of related diversification as well (Coporate Finance Institute, 2021). 4. Recommendations and Conclusions Based on the above analysis and strategic planning, Red Bull should go ahead and do product development in energy bars and enter the UE market. The STP model demonstrates that targeting the young professionals who are busy, active and inclined to sport will give Red Bull a good starting point given their presence with energy drinks and brand recognition. The macro environment of business in UAE is mostly favourable with the PESTEL analysis showing good governance and tax laws that can be profitable to Red Bull. The energy bar market in UAE is very competitive since other well-known rivals are already operating but Red Bull’s strengths in brand power and economies of scale should take advantage of the opportunities that the UAE market offers while addressing the few weaknesses and external threats already foreseen. The ANSOFF Model shows that this new product of energy bars in UAE will be of medium risk but energy bar market will still thrive in UAE in coming years as projected CARG and inflation rates are quite good. It is therefore the recommendation of the team that Red Bull develop energy bars and enter this highly competitive but lucrative UAE market 5. References Bachrodt, Andrew K; Smyth, J Patrick., 2004. strategic business planning linking strategy with financial reality. Healthcare Financial Management, Nov, 58(11), pp. 60-2, 64, 66.. Bull, R., 2021. Red Bull Company. [Online] Available at: https://www.redbull.com/us-en/energydrink/company-profile [Accessed 23 02 2021]. Coporate Finance Institute, C., 2021. What is a PESTEL Analysis?. [Online] Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/ [Accessed 10 03 2021]. Coporate Finance Institute, C., 2021. What is the Ansoff Matrix?. [Online] Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/ [Accessed 11 03 2021]. Coportae Finace Institute, C., 2021. What is the Competitive Forces Model?. [Online] Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/competitive-forcesmodel/ [Accessed 11 03 2021]. Economics, T., 2021. United Arab Emirates – Economic Indicators. [Online] Available at: https://tradingeconomics.com/united-arab-emirates/indicators [Accessed 11 03 2021]. Forbes, 2021. Red Bull. [Online] Available at: https://www.forbes.com/companies/red-bull/?sh=2d529af961ce [Accessed 23 02 2021]. GMI, 2021. Demographics of the United Arab Emirates. [Online] Available at: https://www.globalmediainsight.com/blog/uae-populationstatistics/#:~:text=Age%2Dwise%20population%20of%20the,for%20Dubai%20is%2033.5%20years . [Accessed 11 03 2021]. GulfNews, 2003. Red Bull plans to set up Dubai plant. [Online] Available at: https://gulfnews.com/uae/red-bull-plans-to-set-up-dubai-plant-1.352597 [Accessed 23 02 2021]. Hassan, Salah S; Craft, Stephen., 2012. Examining world market segmentation and brand positioning strategies. The Journal of Consumer Marketing;, 29(5), pp. 344-356.. Insider, B., 2021. A 50% ‘sin’ tax on soda in Dubai could have global consequences. [Online] Available at: https://www.businessinsider.com/uae-dubai-sugar-diabetes-tax-soda-energy-drinkstobacco-2017-10 [Accessed 10 03 2021]. Intelligence., M., 2020. UAE ENERGY BAR MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 – 2026). [Online] Available at: https://www.mordorintelligence.com/industry-reports/uae-energy-bar-market [Accessed 01 03 2021]. Learning, L., 2020. Mission, Vision, and Values. [Online] Available at: https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/readingmission-vision-andvalues/#:~:text=The%20vision%2C%20mission%2C%20and%20values%20statements%20form%2 0the%20foundation%20for,will%20become%20in%20the%20future.&text=The%20values%20 [Accessed 10 03 2021]. Mariton, J., 2016. What is Scenario Planning and How to Use It. [Online] Available at: https://www.smestrategy.net/blog/what-is-scenario-planning-and-how-to-use-it [Accessed 25 02 2021]. RedBull, 2021. SUSTAINABILITY: A can has more than one life. [Online] Available at: https://www.redbull.com/int-en/energydrink/red-bull-can-lifecycle [Accessed 10 03 2021]. Research., A. M., 2021. Energy Bar Market. [Online] Available at: https://www.alliedmarketresearch.com/energy-bar-market [Accessed 10 03 2021]. Research, T. M., n.d.. Energy Bar Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2025. [Online] Available at: https://www.transparencymarketresearch.com/energy-bar-market.html [Accessed 10 03 2021]. Resources, H. L., 2021. Business Laws & Regulations in Dubai, UAE. [Online] Available at: https://www.hg.org/legal-articles/business-laws-and-regulations-in-dubai-uae-40337 [Accessed 11 03 2021]. Shah, Syed Tanveer Hussain; Jamil, Raja Ahmed; Shah, Tazeem Ali; Kazmi, Anees., 2015. Critical Exploration of Prescriptive and Emergent approaches to Strategic management: A review paper. International Journal of Information, Business and Management, August, 7(3), pp. 91-100. UAE, 2021. Taxation. [Online] Available at: https://u.ae/en/information-and-services/finance-andinvestment/taxation#:~:text=The%20UAE%20does%20not%20levy,majority%20of%20goods%20an d%20services. [Accessed 11 03 2021]. Venture, W. a., 2020. Business Model Inspiration #7: Next-Level Customer Loyalty: The Lock-In Effect. [Online] Available at: https://www.whataventure.com/business-model-inspiration/customer-loyalty-locked-in [Accessed 25 02 2021]. Wikipedia, 2021. Red Bull. [Online] Available at: https://en.wikipedia.org/wiki/Red_Bull_GmbH [Accessed 23 02 2021]. WTO, n.d.. UAE – TRADE POLICY REGIME. [Online] Available at: https://www.wto.org/english/tratop_e/tpr_e/s262_sum_e.pdf [Accessed 11 03 2021]. 6. Appendices 6.1. STP for Energy Bars in UAE SEGEMENTATION TARGETTING POSITIONING UAE energy bars have these main segments of target customers ● ● Young generation of The best way to channel the energy bars is through The young professional who millennials who are excited ● convenience stores is usually busy and active. about following western type ● in hotels, These actually make the of lifestyles ● workspaces, majority (50%) of the UAE ● The main target is the The busy professionals and ● gyms, population, ie 30 years old sports person (20-35 years ● train/bus stations, and below old) ● airports, ● general supermarkets and ● The sportsperson – requiring lots of energy but very shops cautious about their body ● Online shape and tone ● Other professionals and people who are health 7 wellness conscious continuously watching their weight and diets – UAE actually has obesity in the range of 63% and diabetes up to 10% ● General people who are following government regulations on good diets and exercises whilst imitating western lifestyles (Intelligence., 2020). 6.2. PESTEL Analysis Category Factors Political Government – the UAE is a very open and free trade country where the country actually encourages innovation, advance and competitive business. UAE introduced the “sin” tax on sugar products and tobacco that discourages against unhealthy foods, with as high as 50% tax levies (Insider, 2021). Tax Policy – very good tax policies that many investors from outside find attractive, low excise tax, no individual income taxes, as well as VAT on goods (UAE, 2021) Trade Restrictions – the country does not have any trade embargos as long as businesses abide by the law with mostly 49% foreign ownership except in free trade zones where it is 100% (WTO, n.d.) Tariffs – very low tariffs and custom duties pegged at 5% Bureaucracy – not very common as the laws of the country are very strict on corruption as well Economic economic growth – one of the most stable and growing economies in the Middle East is UAE, with a negative inflation rate (-2.6%), dropping interest rates at 1.5%, GDP growth rate of 1.6%, and unemployment at 2.64% (Economics, 2021). disposable income of consumers and businesses – with most citizens having disposable incomes and tax exemptions, buying power is increased Social population growth – 1.4% annual growth with total of 9.771 million (2019) Fertility rate – 1.41 births per woman (2018) Life expectancy – 77.81 years (2018) age distribution – majority 25-54 years with a median age of 33 years (GMI, 2021) health consciousness – very much on the increase with government taking the lead on exercise, wellness and diets career attitudes – interaction of technology with health, wellness, work and life Technological The country has been on the forefront of advancement in technology, R&D and innovation, boasting some architectural splendour and recently space science Legal health and safety – international labour laws adapted, summer breaks at work equal opportunities – employment fairness, equal salaries for men and women, protection of women’s rights (UAE, 2021) UAE laws are mostly friendly to businesses and industry regulation, licensing & permits as well as labour laws which are efficient and make ease of work (Resources, 2021). Environmental Strict environmental laws and penalties associated, including; ● banning private ownership of dangerous animals ● sea dumping & other pollution ● preserving plant species ● reducing use of plastics ● implementing policies and legislations in line with climate change, ● environmental awareness and protection programs ● making efforts towards sustainability and more (UAE, 2021) 6.3. Competitive Analysis Major Players ● Rise Bar – The company produces high-quality protein bar that would help people achieve their goals, by the nature of its simple ingredients and outstanding nutrition. The Rise Energy Bars available are almond honey protein bars, lemon cashew protein bars, amongst others ● General Mills Inc. – The company offers several kinds of energy bars under various brands, like Annie’s, Cascadian Farm, Fiber One, LÄRABAR®, and Nature’s Valley, across its global markets. Products include sustainable energy bars, granola bars and cereal bars. ● Cliff Bar and Company – The company produces a variety of energy bars and snacks tailored to women, children, and other markets, a sports drink, and fruit-based items such as fruit ropes. ● Natural Balance Foods – Natural Balance Foods, is best known for the Nakd and TREK brands. We are devoted to making delicious, genuinely healthy snacks. Competitive Rivalry Major competition from the above players, diversified products, Various distribution channels including online and physical stores Brand identity and packaging is of importance Labeling the composition of ingredients in the product package. • Different varieties, composition and qualities of energy bar products . Competitive Edge The following give Red Bull a competitive advantage over others ● strong global brand accepted and well-known by consumers. ● The brand for instant energy to many consumers. ● Top brand in energy drinks with billions of volume sales annually. ● Health & wellness conscious with introduction of zero sugar and limited caffeine (Bull, 2021). 6.4. SWOT Analysis To develop a new energy bar and enter the UAE market Strengths ● Red Bull is well established Weaknesses ● company that has been in the energy markets for ● No history in the energy bars market, ● Red Bull may not be able to decades, come up with a competitive Well-recognized brand alternative to what others associated with the younger are already offering energetic people. ● Market leader with many loyal customers in the UAE through its energy drinks, the energy bars will have a good entry using a lock-in effect. ● Economies of scale as they enter UAE Opportunities Develop energy bar and enter UAE Use advantage of decades in the ● UAE is an open market, markets. energy drink markets ● Ready with huge Red Bull Offer competitive prices Offer variety of energy bars with following of younger health & wellness approach professional, ● Health & wellness awareness will favour a well-known product Threats ● ● ● Cooperate social responsibility the huge ‘sin’ tax on sugary Reduce sugar content to acceptable products, levels Unknown customer response Invest in massive marketing and and advertising campaign Well established energy bars competitors in UAE Invest in online sales ELECTRONIC ASSIGNMENT COVER SHEET Course/Unit Information Course Girne American University MBA Program Unit Name Strategic Management Unit Code GB7032 Unite Type Mandatory Module Instructor Information Name *********** Email *********** Assignment Information Full/ Part Assignment Full Assignment Issued 14/02/2021 Assignment Due 13/03/2021 Student Information (To be filled by the student prior submitting the assignment) Name ******** Student ID ******** Email ******** STUDENT DECLARATION I ******* hereby confirm that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced as per Harvard Referencing format. I further confirm that I have read and understood the Westford rules and regulations about plagiarism and copying and agree to be bound by them. Declaration  Tick the box to agree Date of Submission 09/03/2021 GENERAL GUIDELINES (Please read the instructions carefully) 1. All assignments must be submitted as an electronic document in MS Word to the LMS. 2. Use Font Tahoma 10 with line spacing 1.5 and justified alignment. 3. Assignment submissions are subject to the University Policy. Only one REDO attempt is allowed. Non submissions are subject to fines. 4. A mandatory attendance requirement of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified by the Academic Director. 5. The assignment should not contain any contents including references cited from websites like www.ukessays.com, www.studymode.com, www.slideshare.net , www.scribd.com. 6. Learners can refer Wikipedia as a source of information, but the references cited in Wikipedia has to be mentioned. 7. Submit the assignment in a MS Word document with the file name being: First Name Abbreviation of the module_First Name Second Name Example: MP_Charles Smith QUICK CHECKLIST BEFORE SUBMISSION  Cover page duly filled.  Adherence to the deadline of submission date.  Original cover sheet and format retained.  Student information and signature intact.  Font style and size used as instructed.  Harvard Referencing Style is strictly followed. The following grading criteria will be applicable for the course. Marks Grade 70 to 100 A – Distinction 60 to 69 B – Merit 50 to 59 C- Pass 40 to 49 Fail with Resubmit 0 to 39 Fail with Retake ASSESSMENT CRITERIA Module Code Master’s & Title Level MK7051 International Marketing Management Learning Outcomes Demonstrate a clear understanding of the process of strategic management within the business context. A.C 1.1 -Understand the various principles and models used for strategy formulation LO 01 A.C 1.2 -Apply the tools and techniques for analyzing the external and internal environment of the organization. A.C 1.3 -Develop awareness of the various steps for strategy implementation Analyze and evaluate business situations and develop creative solutions, using a strategic management perspective. A.C 2.1 – Develop an understanding of creating and sustaining competitive LO 02 advantage in the marketplace A.C 2.2 – Identify ways to develop innovation and create a learning organization Assessment Type Portfolios Marks Task 01- Report 70 Task 02- Group Presentation 30 Overall Marks 100 Overall Grade Marks Achieved Pass/Merit/Distinction Summative Feedback Overall Feedback on current work with emphasis on how the student can further improve in future. Task 01- Report Task 02- Group PPT ASSIGNMENT BRIEF Red Bull’s Strategic Plan The Middle East’s energy drinks sector is at its peak with unprecedented sales in the retail and hospitality sectors. Yet competition is fierce as international players strive to cash in on the trend. “The margins are so high in this sector that many companies come to take a piece of the pie and then disappear. Most of them are not surviving, as success is dependent on how long brands have been in the market,” says Omar El Banna, Power Horse’s regional marketing manager, Middle East. The margins are so high in this sector that many companies come to take a piece of the pie and then disappear. Most of them are not surviving as success is dependent on how long brands have been in the market. “Looking at Saudi Arabia, it is almost over-congested with energy drinks brands, with hotels and restaurants accounting for around 20% of our regional business this year, but Egypt holds potential and the entire energy drinks sector grew by 9% last year,” he adds. Egypt is currently Power Horse’s strongest emerging market, with rising numbers of clients in the hospitality sector including Marriott, The Ritz-Carlton Hotels & Resorts and InterContinental Hotels and Resorts. With ingredients including taurine, glucuronolactone, caffeine, and inositol, Power Horse first entered the region in Saudi Arabia in 1997, followed by the UAE, but it is now seeing demand from emerging markets like Qatar, Bahrain and Oman. While energy drinks routinely combine methylxanthines, B vitamins, inositol, carnitine, creatine, glucuronolcatone, ginkbo biloba, taurine, ginseng, and maltodextrin, El Banna says Power Horse informs customers not to mix the drink with alcohol, however there are no strict regulations in place against the move, so it has become a regular feature on drinks menus. But is not just Power Horse that is popular in the market, with Red Bull taking the greatest share of the energy drink market in the region. A far cry from the modern packaging and dynamic marketing of today’s brands, Japanese-based Taisho Pharmaceutical first introduced Lipovitan back in the 1960’s. One of the earliest known energy drinks; the brown 100ml bottles became widespread in East Asia. However, it was Red Bull in its silver and blue bullet-can format – initially developed by Thai businessman Chaleo Yoovidhya as a drink called Krating Daeng – that really activated the presence of energy beverages on a global scale. Red Bull kickstarted marketing campaigns for its namesake drink in Austria in 1987, and distribution expanded to Hungary, Slovenia, Germany, the UK, and the US by 1997. The company achieved sales of 300 million cans in the following year and boasted availability in more than 50 countries by 1999.Since its UAE launch in 1998, Red Bull has maintained its status at the top of the country’s energy drink leader board, yet Raed Gerges, its director of communications, is confident the brand will continue to surpass rivals, due to its premium image and significant presence in the foodservice sector spanning every country in the Middle East. “The sales growth in the UAE has been rising in strength since its launch, so we are expecting further growth in this dynamic country for Red Bull, which created the category and has been leading since,” comments Gerges. Breaking down its content, each 250ml can contains ingredients including 27g of sugar, 1000mg of taurine, 80g of caffeine, as well as sodium citrates, caramel and riboflavin colors and inositol, believed to serve as a source of metabolic regulators and as membrane anchors for certain proteins. Although a practice advised against on the labelling of most brands, the onset of the 21st century marked the commencement of energy components being added to alcoholic beverages, which continues to ramp up sales today. One-Armed Scissor, JägerBomber, Night Bandit and Black Bull have emerged as attention-grabbing names for mixtures of energy beverages combined with vodka, Jägermeister, whiskey and Guinness respectively. Responding to whether Red Bull is promoted for use with alcoholic beverages, Gerges refutes the suggestion, saying it is sold solely for consumers to deal with the “daily demands of life”. Red Bull, however, issues a warning that the products are not recommended for people sensitive to caffeine, pregnant women, children, and diabetics. Dubai-based bars Après and Left Bank, however, which combined see 1600 covers weekly, have also reaped dividends from the growing shift towards energy drinks among customers. However, Francesco Leoni, executive bar development manager for Emirates Leisure Retail, is quick to emphasize that bar staff should monitor customers’ intake of energy mixes. “They should be consumed in moderation as they automatically pump you up, whereas alcohol does the opposite, so I would stay away from mixes of simply spirits and energy drinks, and rather rely on more skillful recipes,” Leoni says. Saying this though, Leoni highlights that energy drinks have become a ‘must’ in mixology sessions, as they create different chemistries with tastes, aromas, and textures, and in turn are big sellers. Away from the bright lights of Red Bull, other brands have set their mark in the Middle East in a bid to capture a share of the lucrative market. New-Zealand based manufacturer Frucor Beverages, for example, launched V in 1997, designed specifically for daytime use. Spurred by the success of other energy drinks, the market also continues to witness a surge of new launches. Another newcomer in the region is Effect from German-based MBG International Premium Brands, which joined forces with its UAE distributor Emirates Snack Foods (ESF), in June 2006, fueled by its success in markets such as India, Europe and South America. With the hospitality sector now accounting for 25% of the brand’s turnover and having captured the potential in bars and sports sponsorships, the brand’s development of cocktail menus for bars using its core product have played a critical role in its turnover, with the future now looking bright. “We plan to continue growing and aim to be a credible alternative to the leader, and our share of the hospitality segment is growing by the day as more outlets become convinced of our value proposition,” comments Anusha Prabhakar, food service account manager, Effect. Margins in the energy drinks category can double those of other carbonated drinks, so the category has become appealing for smaller producers, with the UK, Ireland and Germany currently positioned as the biggest markets in Europe. The global response to energy drinks has not always been positive, and in response, brands including Energy69 have emerged with alternative, healthy alternatives. Richard Horwell, the company’s marketing director describes the reaction to the ‘non fizzy’, Dutch-produced energy drinks as “nothing less than staggering”. With ingredients including maltodextrin, which has a slower release than most other sugars, the range is set to debut in the UAE in the coming months. In the meantime, the energy drinks market continues to grow from strength to strength, as an energy booster, mixer or simply as an alternative to alcoholic drinks Scenario Your team is hired as Market Strategists by Red Bull who intends to launch a new range of Energy Bars in the UAE. As a part of the group, you are required to come up with a background of the market dynamics of the industry in the UAE. The team is required to discuss a feasibility and viability analysis for the launch of the Energy Bars into the UAE market which will be done with the help of analysis as suggested below. Your group work outcomes must be presented to your faculty in a maximum of 15 to 17 slides. You will then individually present a report on the presentation in not more than 2500 to 3000 words. The assignment is divided into 2 parts to justify both practical as well as theoretical requirements of the module. Task 01- Report [70 Marks] [2500-3000 words] Executive Summary: You should summarize your strategic plan (no more than one page of A4 paper). This should outline the key messages and be prepared in a format that would be suitable for presentation to the senior management team for Red Bull. [5 Marks] 1. Energy Bars Market: Critically evaluate the scope of the Energy Bars market in the UAE for Red Bull. Analyse the market with examples and data in form of graphs/charts/tables highlighting market size, CAGR, top players, investments etc. to support the analysis. [10 Marks] 2. Strategic Plan: With the use and application of relevant strategic models; critically discuss and present a feasibility and viability for the launch of the Red Bull’s Energy Bars into the UAE market in 3 distinctive section as below. [30 Marks] a. Strategic Positioning b. Strategic Choice c. Strategy in Action 3. Recommendations and Conclusion: Finally, summarize and discuss all the acquired findings and analysis and provide a conclusion. Communicate the recommendations for Red Bull to launch their Energy Bar in the UAE. [15 Marks] 4. References and Appendices: Adhere to Harvard Referencing Style only. Make use of the additional resources provided and cite credible academic sources. Alternatively provide citations from credible commercial sources like PWC, Deloitte, KPMG, CB Insights, and/or Annual Reports to support your work. Use the section of appendices wisely to provide your analysis when using and applying the PESTLE, SWOT, Porter’s Framework, BCG Matrix, Ansoff Growth Matrix, etc. Captions should be provided for all insertions- tables/charts/diagrams/pictures/graphs etc. You can also provide screenshots of the PowerPoint Presentation if needed. [10 marks] Task 02- PPT [30 Marks] [Max of 15 to 17 slides] Present your strategic plan as part of a Group Presentation. This would be conducted during the final phases of the course on a mutually agreed time slot (between the learner and the faculty). The time allotted for the presentation is 30 minutes (20 minutes presentation followed by 5 minutes Q&A) and would be evaluated based on content, presentation skills and interaction. Before final submission, provide evidence of the presentation by pasting the screenshot of the presentation. Students could make any assumptions with reasonable justifications for the above tasks. The Report (Task 1) and the Group Presentation (in PPT format for task 2) should be submitted on the LMS on or before the specified submission deadline. Table of Contents Executive Summary ………………………………………………………………………………………………………11 1 ENERGY BAR MARKET …………………………………………………………………………………………………12 1.1 The Global Energy Bar Market……………………………………………………………………………………..12 1.2 The UAE Energy Bar Market………………………………………………………………………………………..14 2 STRATEGIC PLAN ………………………………………………………………………………………………………15 2.1 Strategic Positioning …………………………………………………………………………………………………15 2.1.1Strategic Intent……………………………………………………………………………………………………..16 2.1.2 Macro-Environmental Analysis …………………………………………………………………………………..18 2.1.3 Competitors Analysis………………………………………………………………………………………………20 2.2 Strategic Choice ……………………………………………………………………………………………………..22 2.2.1 SWOT Analysis …………………………………………………………………………………………………….22 2.2.2 Porter’s Generic Strategy …………………………………………………………………………………………23 2.2.3 Value Proposition ………………………………………………………………………………………………….23 2.3 Strategy in Action ……………………………………………………………………………………………………23 2.3.1 ANSOFF Matrix …………………………………………………………………………………………………….23 3 Recommendations and Conclusion ………………………………………………………………………………….24 4 References ………………………………………………………………………………………………………………25 Appendices ………………………………………………………………………………………………………………..28 Appendix A: Energy Bars ………………………………………………………………………………………………..28 Appendix B: PESTLE Analysis …………………………………………………………………………………………..29 Appendix C: PORTER’S Five Forces ……………………………………………………………………………………33 Appendix D: ANSOFF Matrix…………………………………………………………………………………………….34 Executive Summary Strategic Management according to Ansoff and McDonnell constitutes a systematic approach to the management of changes comprising positioning the organization through strategy and planning, real time strategic response through the management of problems and the systematic management of resistance during strategy implementation. Stead and Stead, in turn, defined strategic management as an ongoing process involving the efforts of strategic managers to adjust the organization to the environment in which it operates while developing competitive advantages. These competitive advantages enable the company to seize opportunities and minimize environmental threats. More generally, strategic management is a broad term that includes determining the mission and objective of the organization in the context of its external and internal environments. (Mainardes, et al., 2014) In this report, the framework used to strategically plan the new product development of Red Bull in the UAE market is – Strategic Positioning, Strategic Choice, and the Strategy in Action. These strategies critically analyze both the external and internal factors that could either limit or promote the success of the new product. Also, the models were designed to evaluate the business situations and develop creative solutions for the success of the new product. Strategic Positioning focuses on the strategic intent of Red Bull, the macro-environmental factors which includes data from the global market, the new market it wants to penetrate and the competitive landscape of the industry. Strategic Choice uses models like the SWOT Analysis to evaluate the basis on which choices should be made and how decisions taken can be well implemented. The Strategy in Action helps to affirm the uniqueness of the move Red Bull decides to make by using the ANSOFF Matrix. Based on the strategies and models used, the energy bar will be a good move for Red Bull as it supports the expansion of product portfolio and brand innovation, however, Red Bull needs to focus more on product differentiation and quality of product because the energy bar market is competitive and less differentiated. The major focus should the health-conscious consumers because they hold the largest consuming share in the market. 1 ENERGY BAR MARKET 1.1 The Global Energy Bar Market o Market Overview • The increasing health complexity and the growing number of the health-conscious population are expected to drive the Energy Bar Market over the predicted years. Also, the rising demand for energy foods, drinks, and other variety of products is impelling the growth of the market. Moreover, the rising sports nutrition industry and the growing interest in health & wellness are anticipated to impose a positive outlook on the market growth. There are certain restraints and challenges faced which can hinder the market growth. The high price of energy bars in comparison to conventional snack bars is likely to hamper the market growth Figure 1:Global CAGR (Research, 2021). • Global energy bar market is forecasted to grow at a CAGR of 4.9% during the forecast period of (2019-2024). (Intelligence, 2020) • The market study of the global energy bar market is segmented by type into organic and conventional; and by distribution channel, as supermarkets/hypermarkets, convenience stores, specialist retailers, online retail, sports nutrition stores, vending machine, and other distribution channels. It also provides an analysis of the market studied in the emerging and established regions, including North America, Europe, South America, AsiaPacific, and Middle East & Africa. (Intelligence, 2020) • The United States dominates the sales of energy bar products, globally, due to the increased consumer preference for energy-based products (energy drink, bar, etc.). The growing interest in health and wellness, owing to the product promotions in Asia-Pacific, is providing an opportunity to the market. (Intelligence, 2020) o Global Market Size Energy and nutrition bar continued its growth during the forecast period with the US and Mexico the largest market. Energy Bar market size in the US grew at a significant rate. Increased consumer demand for the nutritious product and rising clean label claims on product accelerated the market growth in the region. Product launch with various label claims, such as “no artificial additive”, “high or added fiber” and “reduced Figure 2: sugar” achieved strong growth in the past five years. Expensive brands offering product composed of natural and organic ingredient is expected to increase sales. Targeting emerging countries with a larger young population, such as China, India is the potential energy bar market opportunity. (Intelligence, 2020) Key Market Trends o Increasing Expenditure on Product Innovation and Marketing Health-conscious consumers, with a busy lifestyle, levy a high impact on the snack bar-consumption pattern, across the world. On-the-go, the eating pattern is prominent among the Americans and Europeans, as they prefer to ready-to-eat healthy food, such as energy snack bars. Therefore, the convenience form of product, packed with nutritional and energy-boosting composition, accelerates the market. Manufacturers attract Figure 3: consumers through ample options of flavors, tastes, and health benefits, therefore, boosting the sales and revenue segments. Furthermore, companies are launching innovative products to cater to consumer concentration. The global energy bar product launches have nearly doubled, in the past few years, with the European market dominating the new product launches. The focus on an organic source, along with a new variety of products with rich flavor and texture in the energy snack bar category, is a prominent strategy adopted by the company. (Intelligence, 2020) o Major Players in the Global Market • The Kellogg Company. • GlaxoSmithKline Plc. • General Mills Inc. • Clif Bar & Company. Abbott Nutrition Manufacturing Inc. (Intelligence, 2020) o Consumers of Energy Bars Figure 4: • Health pros • Fitness experts • Young professionals • Athletes • On-the-go consumers, etc. o Why People Consume Energy Bars • Energy bars offer easy-to-consume nutritional gains (i.e., protein boost or extra fiber). • The convenience of energy bars makes them a perfect grab-and-go bite. • Energy bars are exceptionally portable: you can take them anywhere. • At just a few dollars apiece, they are an affordable “mini-meal.” • Some energy bars taste good enough that they can act as a substitute for a sweet treat. (Morris, 2019) 1.2 The UAE Energy Bar Market o Market Overview • Increased influence of westernization on-the-go healthy convenient packs size, Figure 5: UAE CAGR and the growing demand for health and wellness products are among the various factors driving the market. The energy bar market includes sports nutrition bars and snack bars designated to meet both the daily and sports nutrition needs. Busy lifestyle demanding nutritional packaged products also fueled the market demand. • The UAE energy bar market is projected to register a CAGR of 4.46% during the forecast period, 2020-2025. • Moreover, as the UAE government develops initiatives to increase health awareness, there is a high scope for products, which have health benefits, particularly about obesity and diabetes. Figure 6: • The UAE energy bar market is segmented by type and distribution channel. Based on type, the market is segmented into organic and conventional. Based on distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, specialist retailers, online retail, and other distribution channels. (Mordor, 2020) o Key Market Trends Health & Wellness Snacking on Rising Consumers are developing a western-style snack trend, demanding healthier products for munching during breaks. The appetite for health-related packaged food recently started to take off in the country. The younger people are becoming health conscious, influenced by international food culture. The rising obese population is another major factor accelerating the demand for healthier packaged products. Around 66% of men and 60% of women in the country are overweight and are looking for healthy snacking. High per capital income import dependency population, and for food, obese potential demand for Figure 7: healthy snacks offer potential opportunities to manufacturers. About 50% of the population in the United Arab Emirates is below 30 years who prefer snacking for fun and enjoyment. The large young population is shifting snacking consumption, thereby, driving the sales. Consumers are always on the move due to a growing busy lifestyle, which has also given rise to energy bar sales. (Mordor, 2020) o Major Players in the UAE Market • Rise Bar • General Mills Inc. • Clif Bar and Company. • Natural Balance Foods, among others. (Mordor, 2020) 2 STRATEGIC PLAN The concept of strategic planning originally became popular in the 1950s and 1960s and enjoyed favor in the corporate world up until the 1980s, when it somewhat fell out of favor. However, enthusiasm for strategic business planning was revived in the 1990s and strategic planning remains relevant in modern business. (Institute, n.d.) 2.1 Strategic Positioning Explicit strategic positioning is the most important factor to motivate the development of an enterprise. Based on the specific condition for an enterprise, a unique strategy could be one competitive advantage for it. (Jia, 2015) 2.1.1Strategic Intent 2.1.1.1 Strategic Positioning Statement for Red Bull Energy Bar To young, sporty, health-conscious, and on-the-go consumers who want the healthiest and best quality energy bar, Red Bull is the leader of the beverage energy industry with products that revitalizes the body and mind so they can help individual stay energized and refreshed because Red Bull is gives you wings to fly in the healthiest possible way. 2.1.1.2 Red Bull Company Overview – Mission, Vision, Value Statement and Values Figure 8: Red Bull Logo Dietrich Mateschitz founded Red Bull in the mid-1980s. He developed not only a new product but also a unique marketing concept and launched Red Bull Energy Drink in Austria on April 1, 1987. By the end of 2020, Red Bull employed 12,618 people in 171 countries. In 2020, 7.9 billion cans of Red Bull were sold worldwide. This represents an increase of 5.2% compared to the already successful year 2019. Group sales grew by 4.0% from 6.067 billion euros to 6.307 billion euros. Sales quantity, turnover, productivity, and operating profit were further increased and represent record figures in the Source: Google Images history of the company. (Bull, 2021) Red Bull’s marketing includes multiple sports team ownerships, celebrity endorsements, music, through its record label Red Bull Records, gaming, television shows, cartoons and bulletin. (Wikipedia, 2021) • Mission: Giving Wings to People and Ideas (Bull, 2021) • Vision: Red Bull GmbH are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices, dedicated to coaching and developing our organization as an employer of choice. (Comparably, 2021) • Values ▪ People ▪ Ideas ▪ Culture (Comparably, 2021) 2.1.1.3 Segmentation, Targeting and Positioning (STP) Framework • Segmentation: Segmenting, at its most basic, is the separation of a group of customers with different needs into subgroups of customers with similar needs and preferences. By doing this, a company can better tailor and target its products and services to meet each segment’s needs (Gavett, 2014). The Red Bull Energy Bar will be segmenting consumers based on the below: ▪ Psychographic Variable: This variable segment consumers according to the theory that lifestyle choices directly influence product purchases. ▪ Behavioral Variable: By grouping individuals according to the outcome they want since consumers seek different benefits from the product. ▪ Demographic Variable: By segmenting consumers by age, studies can be made to group common needs, wants and spending patterns by different age groups. (Fernanbriana, 2017) • Targeting: Energy bars are usually targeted toward people who require quick energy as a meal replacement. Energy bar is a convenient way for supplementing proteins, which increases muscle mass and keep fats off. The Red Bull Energy Bar will be targeted at the below: ▪ Health-conscious individuals ▪ Fitness experts ▪ Young professionals ▪ Athletes ▪ On-the-go consumers, etc. • Positioning: Figure 9: STP Model- Positioning Frame The Red Bull Energy Bar will have an emotional appeal. It will position itself as a hunger satisfier meal and as an energy bar rather than a candy bar. Based on the diagram, the Red Bull Energy Bar will be: ▪ Product – Basic ▪ Promotion – Fun ▪ Price – Value ▪ Distribution – Intensive. Source: Google Images It will be positioned in supermarkets/hypermarkets, convenience stores, specialist retailers, online retail, sports nutrition stores, vending machine, and other distribution channels. 2.1.2 Macro-Environmental Analysis Macro-environmental analysis is an integral part of systematic strategic planning. This section will study macro-environmental factors and analyze the impact of those factors on the product development of Red Bull energy bars. 2.1.2.1 PESTLE Analysis PESTEL analysis has two basic functions for a company. The first is that it allows identification of the environment within which the company operates. The second basic function is that it provides data and information that will enable the company to predict situations and circumstances that it might encounter in future (Dockalikova & Klozikova, 2014). The image below is an in-depth PESTEL Analysis of the new product – Red Bull Energy Bar. Table 1: PESTLE Analysis External factors to consider Factors affected within the industry Importance to the Organization POLITICAL • Governmental business regulations. • Bureaucracy. • ‘Sin” Tax • Government HIGH • Level of corruption. increased health initiatives. ECONOMIC • Inflation rate • Unemployment rate • Currency rates fluctuations. • Labor costs. HIGH • COVID-19 SOCIAL TECHNOLOGY • Health consciousness • Class and power structure. • Demography • Behavioral attitude. • Innovation. • Impact on cost structure • Social networking. • Impact on product offering HIGH MODERATE • Production and distribution. LEGAL • Business law and regulation. • Anti-trust law. • Food regulation law. • Consumer protection. ENVIRONMENTAL • Corporate Social Responsibility • Sustainable resources Source: Adapted from (CIPD, 2017) • Recycling. • Waste management. MODERATE MODERATE The above Red Bull PESTLE Analysis highlights the various elements which impact the entrant of the new product into the energy bar market in UAE. This understanding helps to evaluate the criticality of external business factors for the brand. The political, economic, and social factors are of high importance to the brand because: • if the government succeeds in imposing health and safety restrictions on energy bars products, it will affect the production, purchases, and introduce import and export charges on the energy bar market. • inflation being a major economic issue will influence Red Bull’s selling price increase to maintain sustain their business and cost of raw materials for production. This will might scare consumers from the brand. • taking the needs of the consumers is important. Majority of energy bar consumers are health conscious, therefore, all energy bar products from Red Bull must be healthy. The technology, legal and environmental factors are moderate because Red Bull is an existing global brand in the UAE market and thus, catered to those factors prior to this new product development. However, new tactics will be needed moderately for this new product. 2.1.2.2 PORTER’S Five Forces Model Figure 10: PORTER’S 5 Forces Model WEAK STRONG STRONG MODERATE WEAK Source: Google Images The highly competitive energy bar market due to the entrants of foreign players has made the competitive rivalry and bargaining powers of the buyers strong. Buyers have different products to choose from which serve the same function. However, Red Bull being a global brand with good consumer loyalty has made thee threat of substitutes moderate and Red Bull will scale in the energy bar market by capitalizing on this factor. Red Bull needs to focus on differentiating its products so that the actions of competitors will have less effect on its customers that seek its unique products. 2.1.3 Competitors Analysis The UAE energy bar market is competitive with many foreign players occupying a major share. Innovative product launches and clean label ingredients are the various strategies adopted by these players. 2.1.3.1 Major Energy Bar Competitors in the UAE Market o General Mills • Founded in 1928 Minneapolis, Minnesota, United States. • The company offers several kinds of energy bars under various brands, like Annie’s, Cascadian Farm, Fiber One, LÄRABAR®, and Nature’s Valley, across its global markets. • The company manufactures its products in 13 countries and markets them in more than 100 countries. (Intelligence, 2019) o Rise Bar • Founded in 2010 by Pete Spenuzza. • The company produces high-quality protein bar that would help people achieve their goals, by the nature of its simple ingredients and outstanding nutrition. • The Rise Energy Bars available are almond honey protein bars, lemon cashew protein bars, amongst others. (RiseBar, 2020). o Natural Balance • A young British food and beverage company founded in 2006. • Natural Balance Foods is best known for the NAKD and TREK brands. We are devoted to making delicious, genuinely healthy snacks. • Products are made with natural and wholesome ingredients; are free from gluten, wheat and dairy, are vegan. Products include TREK protein energy bars, TREK protein energy chunks, etc. (Foods, n.d.) o Clif Bar & Company • Founded in 1992 in Emeryville, California, United States. • The company produces a variety of energy bars and snacks tailored to women, children, and other markets, a sports drink, and fruit-based items such as fruit ropes. • The Clif Bar company has instituted policies intended to make it more green-friendly. It switched to organic ingredients and eliminated shrink-wrap, saving 90,000 pounds of plastic and $400,000 annually. (contributors, 2021) 2.1.3.2 Competitive Edge of Red Bull • Red Bull enjoys a strong early mover advantage in the energy beverage industry. (International, 2021) • The brand is synonymous with energy drinks in the minds of many consumers. (International, 2021) • Red Bull remained the top brand in energy drinks in off-trade value and volume sales terms in 2020. • Use of health- oriented products like Red Bull Zero, Red Bull Sugar Free and Organics by Red Bull (Bull, 2020) to gain more popularity (International, 2021). • Red Bull being a critical player in the beverage industry, the firm must ensure that it continues to build significant competitive edge over other energy beverage manufacturers. The competitive advantage the company has will help the new energy bar scale effortlessly 2.1.3.3 Perceptual Map the Healthy UAE market regardless of the competitors. in Figure 11: Perceptual Map Expensive Cheap Tasty (pricena.com, 2021) Source: Self-made The map uniquely shows the various energy bar products in their different segments. This focuses on qualitative data that can help us identify subjective feelings and opinions customers have toward each brand. Based on the price information and reviews on the UAE online store- pricena.com, the rise bar, clif bar and Nature Valley bar are made from healthy organic ingredients, however, the rise bar is more expensive than the other products. The Red Bull energy bar will also be in the healthy and cheap category because the brand wants to capture as many consumers as possible and have the highest market share in the UAE energy bar market. 2.2 Strategic Choice Strategic choice theory provided an alternative that emphasized the agency of individuals and groups within organizations to make choices, sometimes serving their own ends, that dynamically influenced the development of those organizations. These strategic choices formed part of an organizational learning process that adapted to the external environment as well as the internal political situation. (Wikipedia, 2021) Figure 12: SWOT Analysis 2.2.1 SWOT Analysis STRENGTHS • Global brand. • Existing distribution channels. • Highest brand equity. • Customer loyalty. THREATS •Strong competitive market. •”Sin” Tax •Consumer response •Market fluctuations. WEAKNESSES • High price • Unknown customer response. •High cost of labour (manufactures in Europe) OPPORTUNITIES •Increasing demand for healthy living and weight loss. •Product development •Market expansion. Source: Self-Made The major strength of Red Bull is in its global brand and existing brand equity. This shows that the new product will be accepted if properly positioned and advertised. However, the weaknesses of the brand like the high price of the existing products needs to be considered because the energy bar market is a competitive one in UAE. The brand must ensure that cheap price for the new product will be a good competitive advantage. The opportunities of growth in the market are wide and the brand must ensure that these opportunities are utilized to the maximum. Establishing this new product in the UAE will also open the brand up to further opportunities in new and existing markets like Africa and other continents. 2.2.2 Porter’s Generic Strategy Figure 13: Porter’s Generic Strategy Source: Google Images Focusing on the Porter’s Five Forces model for the energy bar industry, it is apparent that Red Bull has intense competition with other energy bar brands. As a global brand, Red Bull’s expansion of product portfolio, market growth and repositioning to offer healthy products is vital to sustainable competitive advantage. Therefore, implementing varied strategies in the UAE market for the new product will be necessary. Additionally, as consumers …

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