Red Bull Marketing Strategy Essay Essay
1. Executive sum-up
Red Bull is most popular energy drink of the universe. They sold more than 5 billion tins in 164 states all over the universe in 2013. The trade name has a really good image and is category leader. Red Bull is following a high price/quality premium merchandise scheme. but there are a batch of rivals with lower monetary values liker Monster or Rockstar. The selling scheme includes a batch of publicity and well-targeted sponsorship. particularly with utmost athleticss. The aim mark markets are immature urban males runing from 15 to 30 old ages old.
2. Introduction to the undertaking
? ”Red Bull is an energy drink sold by Austrian company Red Bull GmbH. created in 1987. In footings of market portion. Red Bull is the most popular energy drink in the universe. with 5. 387 billion tins in 2013. ” ? hypertext transfer protocol: //en. wikipedia. org/wiki/Red_Bull
The thought for drinks enriched with taurine come from Japan. Dietrich Mateschitz the discoverer of Red Bull imports the thought from Thailand to Europe. During a visit in Thailand he realizes that it was easier to acquire over the jetlag with an energy drink. He took this thought and the selling construct. modified the ingredients to accommodate the gustatory sensations of westerners and founded Red Bull GmbH in 1987 in Austria. Based on the good selling scheme with alternate scenes like techno music. mountainbiking or snowboarding Red Bull got really successful.
Merchandise inside informations
Red Bull is a lightly carbonated drink that enhances mental and physical activity. The standard functioning size of Red Bull is 8 ounces. the helping contains 110 Calories. 27 gms of sugar and 80mg of caffeine.
Aims of the paper
The undermentioned paper is about the situational analysis and recommendation of the selling program of Red Bull. It describes the selling program that includes the Business Mission Statement. Situation Analysis. SWOT Analysis. Aims and the mark market. Following chapter is about Positioning which explains the procedure that influences possible customer?s overall perceptual experience of a trade name. merchandise line. or an organisation general. Furthermore the paper is about the four P?s that are known as the Marketing Mix: Merchandise. Pricing. Topographic point. Promotion. Last chapter is a small decision with recommendations of Red Bull.
3. Selling Plan
3. 1 Business Mission Statement
> The foundation of the selling program is the mission statement. which answers the inquiry “What concern are we in? ” ? “We are dedicated to continuing Red Bull criterions. while keeping the leading place in the energy drinks class when presenting superior client service in a extremely efficient and profitable mode. We create a civilization where employees portion best patterns dedicated to training and developing our organisation as an employer of pick. ” ?http: //joseph-ramos. blogspot. com/2012/09/chapter-1-history-and-mission-statement. hypertext markup language 04/10/2014
Red Bull maintains over 40 % of the market portion for non-alcoholic energy drinks and has proven to be a strong rival against soft drink Goliaths Coke and Pepsi. The cardinal markets include the United States. Germany. Brazil. Japan. Turkey and Scandinavia. Red Bull is aiming the Western Europe and the USA markets. every bit good as the growing markets of Brazil. Japan. India and China.
3. 2 Situation Analysis
> Sellers must understand the current and possible environment in which the merchandise or service will be marketed. Red Bull is present in more than 164 states throughout the universe. That?s a large challenge for planning. logistic. and cultural receptiveness varies from topographic point to topographic point. The merchandises are available all over North America. South America ( except Uruguay ) and much of Europe. But there is still room to spread out to states in Africa and the southern Pacific parts. Focus should be placed on the countries where event circuit Michigan will take topographic point for selling runs. Because event selling like patronizing utmost featuring events is an of import factor of the selling scheme. Especially parts which are inherently suited for utmost featuring events should been focused.
Gross saless development graph Red Bull
The graph shows the gross revenues development in per centum from 2000 to 2012 compared to the old twelvemonth. The x-axis indicates the twelvemonth and the y-axis the gross revenues development. ?
? hypertext transfer protocol: //de. statista. com/statistik/daten/studie/257247/umfrage/umsatzentwicklung-von-red-bull/ 04/10/2014
3. 3 SWOT Analysis
> Identifying internal strengths and failings and besides analyzing external chances and menace
S ? Strengths
W ? Weaknesses
O ? Opportunities
T ? Threats
Brand Name: Red Bull is the world?s most popular energy drink and with effectual selling tools merchandise has created a trade name image. The company sponsors utmost athletics events. for illustration Audi Sportsline for the DTM or KTM route and Dakar mass meeting motorcycles. They besides have some squad ownerships like New York Red Bulls or FC Red Bull Salzburg ( both association football squads ) . But the most effectual selling run was the foundation from ain Red Bull events. A batch of them are really celebrated ; some illustrations are Red Bull crashed ice. Red Bull drop plunging world-series. Red Bull x-fighters.
Category leader: Red Bull has established a strong consistent trade name image globally. They created a new merchandise class in the US market and have 40 % of market portion presently. It is synonymous with energy drinks in many states. Red Bull is the planetary market leader within the energy drink industry with the largest sale and market portion. Brand quality: Red Bull did non accomplish the success and gained maximal market portion merely because of selling tactics. because merchandise quality has besides shared in this success of the trade name. The strong and fresh gustatory sensation has become a trade name individuality.
Marketing scheme: The company has been using a batch of publicities and well-targeted campaigns/sponsorship which have greatly helped the trade name on past to spread out and increase consumer trade name consciousness. Broad geographic presence: Red Bull has a wide geographic presence. which should guarantee positive long-run growing. Recognizable symbol: Red Bull has a strong long-run trade name image with strong client trueness.
High Monetary value: The merchandises are above the mean monetary value of energy drinks. Consumers tend to believe twice at the clip of purchase. Compared to the rivals Red Bull is about twice expensive as Monster or Rockstar. Red Bull8. 3 fl oz1. 99 – 2. 25 $
Monster16 Florida ozapp. 2. 50 $
Rockstar16 Florida ozapp. 3. 00 $
Category restrictions: Compared with other soft drinks companies Red Bull has the smallest merchandise class. The rivals have many other spirit varients and classs. Red Bull is the lone trade name in the market with limited spirits and offers no assortment in the merchandise. Bing one trade name merchandise. it is hard to capture the market. For illustration Monster has 13 different Energy Drinks and 7 Java Drinks. These class is new and is a mixture out if java and energy. Lack of Innovation and Unique Selling Position: Within the industry there are figure of rivals who are using invention in merchandise and alone merchandising merchandise. Red Bull. on the other manus. is less advanced and does non utilize alone merchandising place. Copy debatable: Red Bull?s formula is capable to copy because of a deficiency of patent. Demographic development: Most of the Red Bull consumers are under 30. that could be a job in the hereafter because the demographic development is acquiring older. Controversial: The comparatively high caffeine and taurine contents makes the trade name extremely vulnerable to regulative controls.
Extension of Merchandise: Red Bull is a individual merchandise on the market. there is an chance for it to widen its merchandises line by developing more advanced merchandises. Offering new spirits and format could assist to better the market portions. Broaden mark group: Because of the demographic development it could be a possibility to broaden the mark group to include older demographics by get the better ofing negative attitudes. For illustration with healthier merchandises or another manner of advertisement to response older people. Expansion into more states: Emerging markets represent newer geographic for Red Bull?s enlargement. The market portion in Brazil. Japan. India and China is really low. Red Bull could better the gross revenues with more advertise in these states.
New advertise runs: Red Bull could utilize non-traditional chances in food market shops and other points of purchase to acquire more consumers. Or patronizing other sorts of athletics events. New platforms: In-house media production like Red Bull Media House could go on making Red Bull original content to maximise control. ? Red Bull Media House is a multi-platform media company with a focal point on athleticss. civilization. and lifestyle. As an umbrella trade name. we offer a broad scope of premium media merchandises and obliging content across media channels every bit diverse as Television. Mobile. digital. sound. and print. with nucleus media offerings that appeal to a planetary audience. ? hypertext transfer protocol: //www. redbullmediahouse. com/company. hypertext markup language
New production: To do the retail monetary value more competitory Red Bull could construct new production installations in emerging states. For illustration Asia or Western Europe could be states for a cheaper production. Because Red Bull has no ain production. a company called “Rauch” is bring forthing the drink in Austria. Even for exporting Red Bull is non bring forthing a dressed ore. alternatively of they transporting it finished in the tins. This generates high costs for the production and transportation.
Elephantine rivals: The presence of big and elephantine rivals can impact the market place of Red Bull. Monster represents the biggest menace as it contains natural ingredients. which seems more desirable than Red Bull for some consumers. Consumer consciousness of wellness: In instance of consumer consciousness related to wellness. it could be possible that consumer give up to imbibe Red Bull. Maybe consumers instead drink healthier natural drinks than Red Bull in the hereafter. The market for healthy drinks is acquiring bigger and more and more people prefer to imbibe healthy. Aging demographics: The aging mark demographic could go forth trade name with less portion in approaching coevalss. Negative promotion: The world-wide media studies about Red Bull as harmful for wellness.
Red Bull has high caffeine content in the drink. which if used in surplus can be harmful. Furthermore in many states there are rigorous regulations on the merchandises that contains caffeine. Parents besides province that some constituents can be unsafe if consumed by their adolescents. For illustration Red Bull had been banned in Norway for a twosome of old ages because of the high caffeine content. High selling costs: Maturity in developed markets makes publicity harder than in the yesteryear. including higher selling cost. Red Bull spends more so one 1. 3billion $ in selling per twelvemonth.
3. 4 Aims
Red Bull has launched a scope of merchandises including Red Bull Cola in 2008 and Red Bull Energy Shots in 2009 to make more clients. Today Red Bull has one-year gross revenues of around 4 billion tins in more than 160 states. Red Bull has a typical selling scheme. This type aims invariably evolve and develop the trade name. The company tries to prosecute with consumers utilizing new and exciting channels of communicating. In recent old ages societal media has become a critical selling tool and it?s traveling to be more of import in the hereafter. It?s increasing popularity. preponderantly with immature audiences has had a immense impact on modern selling techniques.
? Assorted media worldwide have reported that Red Bull is harmful for one?s wellness. The Gallic Health Authority has gone one measure farther by non O.K.ing the Red Bull merchandise sale in France. believing it is non in conformity with the country?s wellness and nutrient ordinances. Other media studies have ben targeted towards parents saying the caffeine degrees in Red Bull can be unsafe if consumed by children/teenagers. who are precisely the merchandises mark audience. Red Bull has gone to the extremes of seeking scientific cogent evidence that its merchandise is safe for ingestion and released legion statements to control the negative attending. ? hypertext transfer protocol: //gives-u-wings. blogspot. com/2012/01/swot-analysis. hypertext markup language 04/10/2014
Inability to travel frontward with the merchandise
Red Bull is known for its advanced advertisement. The purpose of pulling 15 – 30 twelvemonth olds is working. but for how long? Unite this with their big investing in utmost athletics events the inquiry is what will be their following halt support on being introducing and pulling.
3. 5 Target Markets
Red Bull markets to immature urban males runing in age from 15 to 30 old ages old. These males live in a invariably exciting and adventuresome life style. They “ life on the edge” or attempt and they are normally mean physique. Red Bull males participate in competitory and utmost athleticss or any other sort of adventuresome and recreational activities. Competitive games in the picture game industry are besides gravitating towards the merchandises to maintain them alert during tourneies. Red Bull defines the whole of these consumers as Generation Y because they are non merely active males but besides active pupils who need the energy to analyze all dark long. Red Bull besides have a secondary mark market of older consumers in general ranging from 25 to 45 old ages old.
Whether this may be a concern executive completing an one-year undertaking or a truck driver. These male came from all walks of life and fiscal position. They live in suburban and rural countries and have different degrees of instruction. They all portion physical and mental effort in common and acquiring their epinephrine pumping. There is besides reasonably new class. it?s called the clubber. The people find out that Red Bull can be used as a really good with intoxicant. In my sentiment it is about impossible to happen the right mark group. the ground for that is because of the assorted applications of Red Bull. A typical Red Bull drinker is dynamic and active and most of them are males.
> The development of any selling mix depends on positioning. a procedure that influences possible customer?s overall perceptual experience of a trade name. merchandise line. or a organisation general Red Bull represents a new class of drinks. the energy drinks. The company positioned as a premium/high border trade name. The monetary value is much higher than the merchandises from the rivals. it?s a premium monetary value merchandise. It is a alone functional drink. Promising and presenting benefits that no other drink can offer. Compared to the rivals Red Bull is about twice expensive as Monster or Rockstar. The monetary value expresses high quality Doctor of Optometry Red Bull and farther on it proves that there is no replacement. The placement policy of Red Bull is: premium merchandise. premium monetary value and premium profitableness.
5. Selling Mix
5. 1 Merchandise
The normal Red Bull is served in 8 ounces aluminium can. But now their besides
offer different sizes and spirits. The can has a particular signifier compared to a normal can. it?s dilutant and longer ( everybody knows the signifier ) . The bundle design resembles a Ag and bluish racing flag with two bulls confronting each other in the centre while the Red Bull rubric intervention sits beneath. Red Bull used the new can as an invention for new and attractive packaging. The can is different and alone from other trade names in the market. Red Bull is made to better public presentation. concentration. reaction velocity and watchfulness. It contains taurine. glucuronolactone. of course happening antioxidants and saccharides severally. that aid to detoxicate the organic structure. The drink besides helps to regenerate the organic structure through the usage of caffeine and B-group vitamins which help to hike energy degrees and metamorphosis. Some people say Red Bull gustatory sensations like gluey bear cough sirup. it?s decidedly an acquired gustatory sensation. The laminitis Mateschitz says: “ Red Bull isn?t a drink. it?s a manner of life.
5. 2 Pricing
The mean monetary value for a 8 ounces can is approximately 1. 99 – 2. 25 $ in the United States. In other states the monetary value could be a spot different. Red Bull has ever followed high pricing policy. It?s twice expensive compared to the rivals. But they are selling good that Red Bull does non take part in the price-off on a regular basis seen in different afloat drink industry.
5. 3 Topographic point
Red Bull is distributed in about every supermarket over the universe in more than 160 states. It besides has a batch of patronizing trades with cabarets. athletics nines. bars and companies. The purpose is happening consumers at the right clip at the right topographic point in the right state of affairs. They focus on countries where an energy encouragement is needed. Red Bull believes ingestion is driven by state of affairss. non sociodemographics. The entry scheme is based on exclusivity. an offspring if Maslow?s hierarchy if demands. For illustration when Red Bull came to the U. S. it focused its pre-seeding attempts in New York City. where the trade name was already hyped by the big European influence. Red Bull was good stocked in nine. where it became the drink of pick.
5. 4 Promotion
Red Bull is the biggest trade name in the energy drink market. They use an aggressive scheme to advance their merchandises. Their two chief tools to advance the Red Bull merchandises are patronizing and free sampling. Red Bull frequently gives free drinks to pull new costumiers. For illustration at universities or athletics events because there are most of the people from the mark group. Red Bull direct out their sampling misss and male childs to present free Red Bull. They drive in the celebrated Red Bull autos und are utilizing the Red Bull electric refrigerators. Red Bull besides provides sponsorship for legion parties. societal events and particularly sport events where they supply free and discounted Red Bull as a speedy energy revitalizer and smooth pursuer for alcoholic drinks.
6. Decisions and Recommendation
The selling scheme of Red Bull can be considered as one of the most successful one over the old ages. The cardinal constituent in all selling activities of Red Bull was patronizing taking jocks of utmost athleticss and branding refrigerated gross revenues units to finish their selling scheme. However. in my sentiment Red Bull has to alter or widen the selling scheme to vie with other energy imbibe trade names. In the current rough competition market there are a batch of different energy drinks available. It?s traveling to be difficult for Red Bull to remain as the first pick energy drink for the costumiers. Therefore I think it is clip to publicize more in general public to response a bigger mark group. They besides could utilize tools like hoardings. streamer ads or postings to maximise the contact with costumiers. I know they are still making it. but largely on athletics events. Furthermore Red Bull can increase advertises on the Internet. Nowadays most of the people are utilizing the Internet every twenty-four hours and they are passing tonss of hours for surfing in the universe broad web. Red Bull could make some utmost athletics online games and advertise on appropriate web sites that are rather familiar with pupils and concern people in different states. To sum up Red Bull has a batch of chances to better their selling scheme.
1. Selling Strategies. Tactic. and Techniques
A Handbook for Practitioners
Stuant C. Rogers
Published in 2001
hypertext transfer protocol: //de. wikipedia. org/wiki/Red_Bull
hypertext transfer protocol: //en. wikipedia. org/wiki/Red_Bull
3. Red Bull Media House
hypertext transfer protocol: //www. redbullmediahouse. com
hypertext transfer protocol: //www. tagesanzeiger. ch/wirtschaft/Die_Marketingmaschine_Red_Bull/story/22743400 04/10/2014
5. Red Bull
hypertext transfer protocol: //www. redbull. com/us/en
6. Gives u Wingss
hypertext transfer protocol: //gives-u-wings. blogspot. com/2012/01/financial-report. hypertext markup language 04/10/2014
7. Monster Energy
hypertext transfer protocol: //www. monsterenergy. com
8. UK Essays
hypertext transfer protocol: //www. ukessays. com/essays/business/analaysing-current-market-strategy-for-red-bull-and-future-strategies-business-essay. php 04/10/2014
9. Red Bull Marketing Campaign
hypertext transfer protocol: //www. slideshare. net/CreativeDunning/red-bull-marketing-campaign 04/10/2014
10. Red Bull Situation Analysis
hypertext transfer protocol: //www. studymode. com/essays/Red-Bull-Situation-Analysis-820871. hypertext markup language 04/10/2014
11. Joseph Ramos
hypertext transfer protocol: //joseph-ramos. blogspot. com/2012/09/chapter-1-history-and-mission-statement. hypertext markup language 04/10/2014
hypertext transfer protocol: //de. statista. com/statistik/daten/studie/257247/umfrage/umsatzentwicklung-von-red. bull/ 04/10/2014
13. All of the accounts after “>” are from the book MKTG
Published in 2013