...Contents Stakeholders Analysis 2 Customers 2 Competitors 2 Company 2 Red Bull's key internal stakeholders 2 Red Bull's Strengths and Weaknesses 3 Red Bull's brand appearance, personality and reputation 3 Community 3 Marketing Mix 3 Product 4 Price 4 Place 4 Promotion 4 Positioning 5 Bibliography 6 Reference Material 6 Internet Resources 6 Appendix 7 Stakeholders Analysis Customers Athletes – Red Bull is targeted at athletes serious about their sport and personal performance. Red Bull increases athletes performance, concentration and reaction speed. A good example of Red Bulls support of athletes can be seen with the many extreme and high adrenaline events they are sponsoring, such as the F1 Grand Prix, Moto GP, NASCAR, and FIS Ski Championships. Red Bulls support of athletes shows in their slogan of when to drink Red Bull. “Sport is Red Bull’s natural grazing ground. Whenever athletes are in need of wings you can find Red Bull” (Red Bull, 2011) Students – Red Bull is targeted at students looking to gain that additional performance during challenging days in the auditorium. Red Bull increases students’ concentration, improves vigilance, and stimulates metabolism. Students find these qualities appealing and useful when studying hard or playing harder with fellow students and friends. Competitors Red Bull’s main competitors are Monster and Rockstar. All three are market leaders in the energy drinks market, differentiating themselves with taste...
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...2: Introduction Page 3: 4 P’s Marketing Mix: Product Page 4: 4 P’s Marketing Mix: Price Page 5: 4 P’s Marketing Mix: Place Page 6: 4 P’s Marketing Mix: Promotion Page 7: Works Cited Introduction Red Bull is one of the biggest energy drink successes, created in 1987 by Austrian company Red Bull GmbH. The slim blue silver can has developed a following among those who claim that it helps them with virtually everything to work better and play better. Red Bull is sold in over 165 countries globally. In terms of market share, Red Bull is the most popular energy drink in the world, with 5.2 billion cans sold in 2012. Over the years, the drink has been copied by more than 100 rivals, but such companies as Anheuser-Busch and Coca-Cola have been unable to take market share away from Red Bull. In 1982, Dietrich Mateschitz, the founder of Red Bull became aware of products called “tonic drinks” which enjoyed extensive popularity in Thailand. He took this idea, modified the ingredients to suit the tastes of westerners, and, in partnership with Chaleo Yoovidhya, founded Red Bull GmbH in Austria. Energy drinks containing taurine, glucuronolactone, caffeine and important vitamins and carbohydrates are claimed to help with physical endurance, improved reaction, speed and concentration and a feeling of well being. In the present days more than a billion cans of Red Bull are consumed each year around the world. The company slogan is "Red Bull gives you wings", and the product...
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...BUS 306-02 Professor Davis November 10, 2013 Red Bull Case Study 1. List all the ways that Red Bull’s promotional efforts are unique from those of the mainstream. Red Bull’s promotional efforts are unique from those of the mainstream for a variety of reasons: • It reaches smaller groups of consumers in more interactive and engaging ways • It forms deep relationships with customers through emotional experiences • It uses a progressive endorsement and sponsorship strategies • It aims to constantly evolve and develop the brand • It engages with consumers using new and exciting channels of communication • It enhances the customer’s brand experience • It leaves lasting impressions • Creates positive feelings and conviction by nurturing its target’s talents • It embraces innovation • It utilizes digital and social media to drive consumer engagement and loyalty 2. Which promotional mix elements does Red Bull use? What grade would you give Red Bull on integrating these elements into a core marketing communications campaign? Today, Red Bull’s promotion mix consists a blend of advertising, public relations, and directmarketing tools that it uses to communicate customer value and build customer relationships (Kotler & Armstrong, 2012, p. 406). Red Bull provides Grade A efforts on integrating these elements into a core marketing communications campaign. Red Bull utilizes the powerful tool of advertising. Through advertising...
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...MKTG 11 – PRINCIPLES OF MARKETING Second Semester, AY 2013 - 2014 Name: Regine A. Soriano Block No. 31 Company Case #1 – Red Bull: Charging into the Future (Chapter 2) 1. How do you thing Red Bull would write its mission statement? How would you write it? The company will show what their product has to offer to their targeted customers. Just like saying, for example, “Helping people experience to be the best, the strongest, and the fittest.” 2. Has Red Bull identified the best target markets for its product? What other market segments might the firm target? Yes, such as athletes worldwide, engaging in a diverse range of extreme sports, collage students cramming for exam, all night disco dancers, cosmopolitans, etc. Other than that, company could also target some workers (construction workers, etc.) 3. How had the company positioned Red Bull relative to the chosen target market? Could it position the product in other ways? The company positioned its product to its target market by using trendsetter. Instead of big, splashy ad campaign or buying a massive coast to coast distribution, the company use street teams to spread a word to important trend setting Generation Y types to be able to set off a grass roots marketing wave which is for me is a very bright idea. 4. Describe the current marketing mix for Red Bull. Going forward, do you recommend any changes to it? An energy drink at a premium price that is available on supermarkets, for order in the internet...
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...Red Bull Gives You Wings: Red Bull’s promotional efforts are unique in a variety of ways when compared to it’s mainstream competitors. Instead of promoting the quality of Red Bull’s taste, they emphasized the effect it had on the drinker such as “increased performance, concentration, reaction time, speed, vigilance, and emotional status” (428). The company gained brand recognition by giving away free samples from a fleet of “logo-bearing off roaders” operated by young attractive operators and word of mouth (429). The company also agreed not to say anything in response to the rumors that flourished about the product ingredient taurine which was said to be a derivative of bull testicles or even bull semen. Instead of trying to put out the rumors, Red Bull used them to their advantage. It attracted attention and increased customer’s interest. Compared to other products such as Coca Cola and Pepsi, Red Bull never focused its advertising on TV commercials. Instead, the goal was to create an experience around the product. Red Bull founder, Dietrich Mateschitz, wanted the brand to hit young people right in the face in a way that they experienced Red Bull to the fullest. They sponsor and promote sporting events and athletes, and even musical events. They also create original programming on their YouTube channel and even have their own music and entertainment production company. Promoting Red Bull through these unique methods helped Red Bull catch the eyes of consumers and established...
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...To start off this presentation, its important to understand that ever since Red Bull was founded in 1987, word of mouth marketing has been at the very core of the company’s marketing mix and this strategy has evolved into four pillars. However, based on our research, its interesting to see that when Red Bull would enter a new market the company won’t use all four pillars at once even though they had mastered the practice of each in previous markets. Instead each pillar would be implemented in the follow manner First, Red Bull would enter a market solely through the nightlife channel and at this time the company would began to invest in their consumer collecting pillar with the objective of winning new users and trade up existing users to different consumption occasions. This was achieved with sampling performed by their wing teams and Red Bull’s student brand managers which are actually full-time college students employed by Red Bull to ensure product availability and visibility on campus as well as provide Red Bull with youth trends Once the consumer collecting teams were in place and product was beginning to expand from the nightlife channel into the FC channel, the next pillar which formed was the Opinion Leader Programs with athletes and culture icons. The main role of these individuals was to reinforce the credibility of the product’s effectiveness and build brand image in a more cluttered and competitive environment Next once distribution channels had been established...
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...Marketing Plan Outline: Red Bull Marketing Background Company and Product Review In 1982, Dietrich Mateschitz, creator of Red Bull alongside Chalerm Yoovidhya, saw 1 where Japan and Thailand were heading in the energy drink market and decided they wanted a piece of the pie. By 1987, Austria proved to be a difficult market for Red Bull to survive in and soon Mateschitz expanded into Hungry and the rest of Germany. After expanding across Europe with a lot of trial and error Red Bull was $12 million in the hole. Rather than scrapping Red Bull as a loss, Mateschitz fired all his staff and hired a marketing firm to help him target nightclubs and students. Buzz marketing became the main focus of Red Bull’s marketing plan, and soon students were pounding campus pavement and driving around in Mini Coopers with a big Red Bull can strapped on top with free samples. His buzz marketing proved to be not only cost effective, but the very thing that gave Red Bull its appeal. Although Red Bull was not welcomed with open arms in all countries, such as France, Denmark and Norway, it was growing and expanding. Mateschitz soon realized that an extreme sporting event was a profitable avenue to take Red Bull down. Red Bull started supporting approximately 500 extreme sports athletes and hosting exclusive parties for these rock star competitors. By 1997, Red Bull’s buzz marketing strategy proved successful in the U.S. as well. Events are now hosed throughout the world ranging from B...
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...Red Bull Marketing Plan Introduction Red Bull, the iconic pioneer of the late 20th century energy drink movement, is enormously successful and popular. Everyone has had days where a cup of coffee seems woefully inadequate, and beverages such as Red Bull “give you wings”, as their slogan promises, and offer a refreshing lift to help people conquer their overfilled schedules and endless meetings. However, with only one flavor and a seemingly narrow target demographic, is Red Bull really capitalizing on their significant brand equity? In this marketing plan, we will discuss the possibilities that lay ahead for Red Bull, including modifications to product, pricing, distribution, and promotional strategies. Since Red Bull is such a polarizing drink, the marketing plan will take a dual approach of increasing the rate and profitability of sales from existing loyal customers, while addressing the needs of potential new customers who have not recently found their needs met by Red Bull’s current offerings. Situational Analysis A classic SWOT analysis of Red Bull reveals many positive attributes that make the drink a strong product upon which to build a successful marketing campaign, but also show that there are negative aspects of the product that lead to a wealth of opportunities for improvement in marketing and product design. The product’s strengths are numerous, but the primary strength of the product is its strong brand recognition. Because Red Bull was the first energy...
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...Red Bull incorporates an extreme marketing mix to create an adventurous image for their consumers. Red Bull’s unique selling position is the ability to bring out the emotions associated with speed, adventure, daring, and power with promotion and aggressive sponsorships in extreme sports like moto-cross, enduro-cross, downhill mountain biking, paragliding, sky-diving etcetera using social media, and heavy advertising. This helped the company to create a vigorous campaign with high energy and high action winning over millions of young people who actively seek and easily identify with those qualities. Red Bull’s profits and financial approaches have allowed them to spend millions a year on promoting events such as the Red Bull Flugtag, Rampage, and Hard Enduro. Each one of these events is revamped each year to push the envelope further than any other similar event to surpass its predecessor. Not only do they continue these events but constantly are looking to fund the next big thing to keep their name at the top of the extreme sports industry. By sponsoring events like the Stratosphere Jump, this set a new world record for the highest free fall jump and was world news. The international company sponsors events around the world, and are recognized by followers worldwide. This is due to the fact that Red Bull incorporates their advertising, sales teams, sales promotions and PR to create events that appeal to all of their consumers and are publicized throughout the world and...
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...Background of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting...
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...Statement Problem Red Bull GmbH faces many challenges in the functional drink market. RUFTS Marketing Consultancy will take a closer look at these challenges with a particular focus on the SWOT and PESTLE analysis as it pertains to the current market challenges as described in the Bahria University case study. Objective The objective is to provide a clear strategic recommendation to the Red Bull executive committee on the best course of action for the company based on the current market challenges with strong consideration of theories as outlines and described by marketing scholars and academics. Contents: CAGR (Compound Annual Growth Rate) - The year-over-year growth rate of an investment over a specified period of time. Competitive Advantage - a condition or circumstance that puts a company in a favorable or superior business position Corporate Planning Tool - A variety of analytical tools and techniques are used in strategic planning Coup A quick, brilliant, and highly successful act; a triumph. Crux A critical point of discussion or situation. Dire Worst possible case scenario. Disposable Income Group - The amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy Domestic market A domestic market, also referred to as an internal...
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...Case Study: The Red Bull GmbH Marketing Strategy Prepared For: Prof. Dr. Christian Schuchardt GLOBAL MARKETING STRATEGIES IMBA 2014/15 International Graduate Center (IGC) Hochschule Bremen University of Applied Sciences Prepared By: Bakaa Chkeir Sahil Sabharwal Eric Branson Smith Khandaker Nazmul Alam Table of Content Part – 1: Introduction Part – 2: Red Bull’s General and International Strategic Approach By Sahil 1-2 3-6 Sabharwal 7-10 Part – 3: Red Bull’s Branding & Segmentation Strategy By Eric Branson Smith 11-15 Part – 4: Red Bull’s BCG & ANSOFF MODEL By Bakaa Chkeir By Bakaa Chkeir Part – 5: Market entry and distribution strategy By Khandaker 16-24 Nazmul Alam 25-26 Part – 6: Bibliography PART 1: INTRODUCTION A Brief History of Red Bull from Red Bull Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in more than 166 countries and around 40 billion cans of Red Bull have been consumed so far. As of the end of 2013, Red Bull employed 9,694 people in 166 countries - compared to the end of 2012 when we had 8,966 employees...
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...international market selection process? Red bull has consistently worked on growing international sales. Red bull has a well developed network of local subsidiaries set up in key markets to oversee distribution in any given region. Instead of targeting largest distributors with greatest reach, red bull targets small distributors who often become exclusively red bull distributors. Small independent venues are also the first targets. Red Bull does not use traditional market the local subsidiaries are responsible for local marketing content such as oral marketing, bill boards and radio. Q2.Which changes would you suggest for red bull’s future global marketing mix in order to make future challenges? Have an ability to gain new customers and retain current customer loyalty: With Red Bull’s target market currently aimed at the Generation Y’s (15 – 30 year olds) there is the question of whether this generation will continue to drink Red Bull as they grow older. And will the next upcoming generation accept this product as their own. They should segment the market in two difeernt ways, one relating to the youth. Second to the older generation Have Health and Social Implications: Due to growing pressure on organisations in society, Red Bull now promotes their product with current societal and health issues in mind. Childhood obesity and type 2-onset diabetes has become a major issue across western developed nations. By introducing ‘sugar free’ Red Bull will open up a new opportunity...
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...RED BULL – MARKETING CASE STUDY INTRODUCTION Red Bull Gmbh was founded in 1984 by Dietrich Mateschitz after having been amazingly impressed by Far East functional drinks properties. Strongly convinced of the incredible market opportunity for such a drink category, he developed the formula of Red Bull Energy Drink and in 1987 the first Red Bull can was sold for the first time. This was not only the launch of a completely new product, but it was the birth of a totally new product category. The launch of Red Bull has been the most successful beverage launch of the last decade and drinking Red Bull has become a sort of fashion phenomenon. Today Red Bull is available in more than 165 countries and more than 35 billion cans of Red Bull have been consumed so far. Today Red Bull is the world’s leading energy drinks producer and it has approximately 70% of the market share in the worldwide energy drink market. Red Bull is privately held and therefore does not report its financial results but reliable data ensure that the company is an increasing and continuously growing profitable business nowadays with an average increase in sales of 10-12 % each year. Its motto is "Red Bull Gives You Wings". 1) RED BULL’S MARKETING STRATEGY SEGMENTATION Red Bull has a distinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. First Red Bull has segmented the market according to age (demographic variable), personality...
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...Red Bull strategic marketing evaluation Introduction The sports and energy drink sales is predicted to reach a mark of around £1.3 billion in the UK in 2014 (Dailymail, 2014). Mintel predicts that the market share of energy drinks will likely see a sturdy development from a mere 78% in 2014 to around 85% by the end of this decade. Red bull is stated to be one of the leading energy drink producers in the world (Mourdoukoutas, 2014). The company states to have 9694 employees in around 166 countries worldwide with a total sale of 5.3 billion cans just alone in 2013 (RedBull, 2014). Moreover, the brand stated to “give you wings” is identified to be one of the most successful energy drink companies in the world (Mourdoukoutas, 2014). Furthermore, the success of Red Bull brand led to the creation of an entirely new category of the energy drink in the food and beverage market of the world. This essay will look to critically analyse the strategies used by Red Bull and argue to what extent the differentiation strategy has aided the company in gaining competitive advantage. Furthermore, it will examine the company’s environment will also look to explore the positioning of the brand in the market. Additionally, it will analyse its route to gaining competitive advantage. Finally, it will assess how successful the company has been in implementing their strategies. Kotler (1984) cited in Gilbert and Kapur (1990) defines strategic marketing as the process through...
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