Category: Red Bull

Case Report on Red Bull: Marketing Analysis

1. Background

Executive summary:

Red Bull is a version of a Tai drink called Krating Daeng and now is a well-known energy drink market leader. The product has developed a unified advertising communication strategy to extend its target onlookers i.e. youth around the world. Value, product, employment, and elevation are the major parameters of this product’s marketing. Red Bull gives assurance to increase performance throughout the times of anxiety or tension. It will rise attentiveness and recover response speed and stimulate metabolic rate. This product refreshes the body and improves concentration levels.

Strengths: Market management, advertising struggles, durable, new and stylish product uniqueness, calm, flexible promotion throughout the world, and product selection method are the main strengths of this product.

Marketing Strategy: Red Bull is advertised via promotion, events, athletic club, proprietorships, and stars support. The catch line “Red Bull gives you wings” is the main purpose which astonished and fascinated the clients to purchase the beverage. Also with the help of star’s support this product gains publicity.

Competition: Pepsi-Cola and Coca-Cola are very active in the marketplace. Coca-Cola advertises two products under the Rock star and Full Throttle. 2 another competitive products are named as Monster and Lost that come under the Hansen Natural Corporation. Coca-Cola and Pepsi-Cola also gaining a reputation via their delivery network in North America. Their product accessibility in superstores, selling apparatuses and at universities where high-class delivery agreements are in effect proposal vital potential to gain market segment.

Challenges: Red Bull has gained unbelievable achievement, but now this product is facing many challenges. First one is market share has shortened over the last few years. Also, there are health worries due to the high amount of caffeine. Disappointment in the new facility or market classification. Control of the Red Bull is vulnerable by the coca cola into the business. This product is dropping the tight attention among the existing products and destroying the impression of the existing products.

Recommendations: Red Bull should follow some latest advertisement i.e. social media advertising that works superior for the product and will be very useful for them in future. Red Bull should focus on new methods such as free drinks to the students occasionally.

Case Introduction:

Red Bull is an Austrian company which was established in 1987 and marketed by Red Bull GmbH. It has the highest market share among all energy drinks in the world. Red Bull is the first product of its kind which gives the energy and boosts the metabolism. It revitalizes the body and mind. The key ingredients in 250ml can of Red Bull are taurine 1000mg, glucuronolactone 600 mg and caffeine 80 mg. It was introduced to the US in 1997 and to Canada in 2004. Red Bull should not be confused with other products like Gatorade as later only rehydrate the body while exertion during sports participation. In Canada its market share is estimated to 50 percent with $22 million worth of retail sales. Coca-Cola and Pepsi are the biggest competitors of Red Bull energy drink market. Red Bull uses buzz marketing strategies for advertising. Their target market comprises of young urban males from ages 16 to 29. Red Bull market its product using the theme and slogan “Red Bull gives you wings.”

2. Case Study Model

Problem Definition:

Research openly says that Red Bull comprises an extreme quantity of substances, certain journals, even compare it to extremely addictive medicines. Also Red Bull is following the traditional ways for their advertisement. Other brands are taking advantage and gaining popularity. A Measurable portion of the research has also identified that twenty five out of thirty members have purchased Red Bull. Remaining members stated that they did not like the taste of the product. Also, according to them it is harmful for health.

Situational Analysis:

The situational analysis of Red Bull is grounded on the interior and exterior environments.

• The strengths of Red Bull are marketplace headship position, advertising struggles, their familiar taste and the group of the stylish and popular packaging.
• The weaknesses are the cost and the shortage of the method patent as well as fewer range of the goods.
• It has opportunities for increasing the target marketplaces as well as product lines allowance. Red Bull faces certain threats which relate to the health concerns of the clients. Research openly says that Red Bull comprises an extreme quantity of substances, certain journals, even compare it to extremely addictive medicines. The objective is to maximize profits, improve the market segment and being the brand idol of the intense actions in target viewer’s opinion.
• The threats include the major competition from world leaders like Coca Cola and PepsiCo and as the people are getting more fitness conscious day by day, they have to think something different because of the large amount of sugar and other additives in their drinks.

Generation of Alternatives:

There are multiple ways that Red Bull can use to overcome their marketing issue.

The alternatives include Growing the product availability, Global extension, Expansion of product line.

• Growing the product availability.

Advantage: Expansion in the market share.

Increase productivity on account of market division.

Disadvantage: Costly

May not be successful in all section

• Global Extension

Advantage: Increment in market share.

Grow the brand awareness.

Disadvantage: Difference in government laws.

Cultural differences

• Expansion of product line.

Advantage: Compete with rivals.

Create niche markets.

Disadvantage: Introduction of new products may affect the sale of existing ones.

Expensive.

Marketing Objectives:

• Red Bull focus on a powerful content core by connecting their customers to themes like extreme sports, music, craftsmanship, move, nightlife and a ton more.
• Red Bull puts a significant sum in customary broad communications channels and content marketing to achieve a higher customer market.
• Red Bull focus on making a brand that exemplifies a distinct lifestyle and audience. Their advertising objective is to make a brand inclination for Red Bull inside Generation Y’s young dynamic guys.
• Red Bull wanted to create a massive brand awareness by providing excellent quality products with an easier reach of its products to the customers.

Marketing Communication Objectives:

• As Red Bull only uses buzz marketing strategy so now it should increase awareness through advertising in mainstream media to attract new audiences.
• Negative image of the brand should be corrected and need to be made a positive brand image.
• Increase the presence in the energy drink market and should be used to create brand loyalty.
• Increase the sales of Red Bull.

Assumption:

We assume that the available marketing communication plan budget will be $1.7 million, which mostly will be used to create awareness among new and young audience and also maintain and increase the market share.

3. Marketing Communication Plan Model

Market Analysis:

The Red Bull Market analysis is Manifold. Primarily for apportioning the advertising costs for the firm while using the market research to learn about market rivals and their grip on the Market .The information allows the Organization to look into options, to penetrate new markets. Red Bull primarily targets youthful and energetic members of the society .They promote at gaming conventions focusing on the extraordinary game members. Additionally, to focus their marketing on the enthusiastic onlookers Red Bull’s market position depicts the picture of being youthful, reliable, outrageous game sports necessities. They do this by promoting and supporting numerous Games and rivalries and target more similar youthful gatherings.

Red Bull showcasing destinations are to expand benefit, making an all the more universally known item and brand name to gatherings and to build deals.

Red Bull is presently boosting individuals around the world, marketing more than nations around the world. The Red Bull consumers are divided into two segments- Students who love to party and Workers. Every one of them utilize the caffeinated beverage in their own way. The primary focus for Red Bull is in maintaining the Top Brand status in the caffeinated drinks market. In order to achieve its Objectives, the company showcases its product at every available opportunity to its targeted market. The promotion activity is achieved by using the three main methods- Advertising, Sampling and Supporting.

Red Bull Marketing campaign isn’t just to sell the product, but to make a statement that it is in fact selling a way of life. Seizing on the belief that individuals are eager to be part of Red Bull’s amazing behavior towards life.

It is due to this belief and promotion that Red Bull maintains a significant portion of the Overall Energy Drinks Market. Considering that the advertising component in the energy drinks markets is as high as 70%, Red Bull continues to hold its own. This is not without Challenges. In order to maintain the lead and continue growth in Asian countries and Western Europe, the company will be producing new products and showcase unique target gathering.

External Influence:

Red Bull PESTEL (Political, Economic, Social, Technological, Environmental and Legal elements) investigation helps understand the influence on the product.

• The political components includes variables such as administration issues. The company itself should work exclusively to increase the product quality with introspecting the employee feedback and the surveys.
• The economic condition defines the Red Bull organization’s working and the entire brand. Red Bull as a brand should work on going on the international market and target those countries who are progressively growing so that Red Bull have a growth in their economy when they move their business in those countries. Moreover, they will also get a first mover advantage as well.
• The social components include the demographics part such as the locality, the population, the age group. For example, individuals in Florida are progressively inclined to caffeinated drinks because of the climate, the work culture; this culture helps Red Bull to grow their business.
• R & D influences on Red Bull Market positioning and alignment. Further innovations has been propelled by web based technologies and recent business research methods. This has created new avenues for the company to improvise on their marketing strategies.
• The evolving environmental legalities have created both advantages and disadvantages for the businesses and Red Bull is trying to position themselves in a place that is applicable to the changes in worldwide environmental situations.
• Food and beverage industries are constantly controlled by the market’s legal laws. Red Bull and its competitors are likewise affected by the prevailing legal conditions. Some market tend to be more beneficial for industries like Red Bull while some might create conditional opportunities.

Competitor Analysis:

• Monster Drink

The main marketing strategy goes on to build the loyal customer network which includes energy, excitement and emotional connection so that a customer can relate easily to the brand. The company does not do much of advertising because they are more of a performing brand rather than just the speaking brand. The company makes sure that a consumer experience a good life long memory with brand and in return they do a positive word of mouth for the brand.

• Product: Monster Drink

Advantage: Emerging brand.

Big Market Share

Loyalty of customers towards brand.

Keeping up with the latest trends in the market

• Price: Monster Drink – 473ml can for the price of $3.17 CAD whereas Red Bull costs $3.47 CAD for 355ml
• Distribution: Monster Beverage Corporation doesn’t actually manufacture and distribute its products rather it outsources them which helps in lower transportation and manufacturing costs but in Canada it does pack some of the products so that the beverages are produced in the market where it is going to get sold.
• IMC: As the tagline of Monster goes with “unleash the beast” which simply means that this drink has got something in it which gives you a boost while you drink it and provides you with the confidence of achieving something which seems impossible to you. Monster energy mainly endorses things which are fast and includes fun like racing teams.
• Image: There have been a lot of controversy regarding energy drinks because there have been reports that the energy drinks are addictive in nature and drinking it for the long term has negative hazards. Doctors and scientists have also claimed that when caffeine and alcohol are put their can create negative consequences. So all this has created a not so good image of energy drinks in front of consumers and eventually it has also degraded the monster drink.

Brand Analysis:

Energy Drink industry used to be dominated by Red Bull. Dietrich Mateschitz and Chaleo Yoovidhya in 1987 established the company Red Bull GmbH. The brand’s logo itself attracts a lot of customers in the young generation, two bulls facing each other neck’s down ready to fight looks kind of cool and itself provides the energy drink an X- factor. The brand has also managed to identify their target market as well which makes it easy for them to understand the customer need and desire of the product. The brand first introduced its drink in Thailand, Red Bull was inspired by the then existing brand called Krating Daeng.

Target Market Profile :

• Demographic Segmentation
• Age Factor: Attracts customer from 16 to 40 years old

Children (aged below 16) usually prefer Red bull soda rather than Red Bull energy drink

Adults ( over 30) prefer zero calorie and special edition

• Gender: Men has a major contribution than women

More men prefer Red bull than women

• Psychographic Segmentation

Red Bull has a brand image of rich quality so businessmen, executives, students have a great preference for it. It’s a drink people consume it daily to energize them. Loyalty is medium which shows not everybody consume it on a regular basis but also try to switch between brands.

• Geographic Segmentation

Red bull till today has served over 20 countries and irrespective of people income, they do prefer consuming it. Differentiating between urban and rural areas, for example in India, urban cities tend to consume it more as it is considered has a normal soda drink in some rural areas in India so education plays a major role too.

Positioning Strategy :

Red Bull has a positioning strategy of high price, high quality which shows they maintain the quality of the product but also maintain the brand image by putting good price. They have an upper hand in the market as they sponsor many events mostly are of racing events. Also it’s a premium brand so they keep their customer satisfaction to high level by providing products readily available and not only just by convenience store but also by providing vending machines at different places and also customer can acquire it at different events such as tennis matches, horse ride racing, car racing etc.

IMC Strategy:

Red Bull’s slogan “It gives you wings” is their main strategy as they link every marketing event to this slogan. This slogan means “you can do the impossible” so to prove that they sponsor sports or events which require a lot of hard work and intensity. By sponsoring these events they give their customer message about how can they achieve impossible by having red bull as their main drink. They also sponsor some non-sports events such as festivals from which they show creativity and also they want to enter the market other than sports which shows a non-sport person can also prefer red bull drinks over other. So they have linked every marketing strategy with each other.

IMC Execution:

From the analysis that we have conducted, it is evident that Red Bull have young generation in their target market. Therefore, the IMC strategy that Red Bull is using is helping them immensely.

Moreover, Red Bull also uses Social Media sites, TV advertisements, Radio to promote and advertise their products. Furthermore, Red Bull sponsors sports events such as Rugby Union, Snowboarding, Air Racing, Soccer and Motocross.Red Bull Soccer team- New York Red Bulls (USA), Red Bull Salzburg (Austria).

Red Bull F1 Team- Aston Martin Red Bull Racing.

5. References

1. Red Bull. (2019, May 30). Retrieved from https://en.wikipedia.org/wiki/Red_Bull
2. Red Bull GmbH. (2019, May 22) Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Gmb
3. Red Bull Gives You Wings. (n.d.). Retrieved from https://www.redbull.com/ca-en/
4. Joe Watts in Lagos @JoeWatts_. (2018, August 30). Shops to be banned from selling caffeine-packed energy drinks to teenagers, under new government plans. Retrieved from https://www.independent.co.uk/news/health/energy-drinks-ban-caffeine-under-16-government-theresa-may-a8513651.html
5. Warren. (2014, August 13). Toronto Public Health urges ban on serving energy drinks and alcohol on city property. Retrieved from https://www.thestar.com/news/gta/2014/08/13/board_of_health_urges_ban_on_serving_energy_drinks_and_alcohol_on_city_property.html
6. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positionin.html
7. New York Red Bulls. (2019, June 02). Retrieved from https://en.wikipedia.org/wiki/New_York_Red_Bulls
8. FC Red Bull Salzburg. (2019, May 25). Retrieved from https://en.wikipedia.org/wiki/FC_Red_Bull_Salzburg
9. Red Bull Racing. (2019, June 04). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Racing
10. Red Bull. (2019, May 30). Retrieved from https://en.wikipedia.org/wiki/Red_Bull
11. Red Bull GmbH. (2019, May 22). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_GmbH
12. Anderson, G. (2012, November 19). Red bull market analysis. Retrieved from https://prezi.com/l2_s84biuxbi/red-bull-market-analysis/
13. Red Bull Air Race World Championship. (2019, June 03). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Air_Race_World_Championship
14. Red Bull X-Fighters. (2018, December 21). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_X-Fighters
15. https://manansilawat15.wordpress.com/2013/10/05/segmenting-targeting-and-positioning/
16. Red Bull Gives You Wings. (n.d.). Retrieved from https://www.redbull.com/ca-en/
17. Joe Watts in Lagos @JoeWatts_. (2018, August 30). Shops to be banned from selling caffeine-packed energy drinks to teenagers, under new government plans. Retrieved from https://www.independent.co.uk/news/health/energy-drinks-ban-caffeine-under-16-govenment-theresa-may-a8513651.html
18. Warren. (2014, August 13). Toronto Public Health urges ban on serving energy drinks and alcohol on city property. Retrieved from https://www.thestar.com/news/gta/2014/08/13/board_of_health_urges_ban_on_serving_energy_drinks_and_alcohol_on_city_property.html
19. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positionin.html

Integrated Marketing Communication: Red Bull Case Study

Executive Summary

Red Bull is an adjustment of a Tai drink, presented and marketed in different nations by Dietrich Mateschitz, an Austrian business visionary. This item fundamentally settled the caffeinated drink market fragment in numerous nations and capacities to battle mental pressure and physical exhaustion. This item has been fruitful around the globe due to principally buzz marketing methodologies and verbal. The organization’s way to deal with fabricate the brand has for the most part depended on ‘hostile to mark’ based marketing. Red Bull has kept up its solid image personality as a result of its unwavering buyer base and extraordinary business strategies. After cautious analysis, the primary issues that exist for this situation is the absence of upgrades concerning a developing target market and the requirement for another repositioning procedure to rival more up to date caffeinated drinks. The organization has concentrated the majority of its publicizing efforts towards gutsy or hazard-taking game lovers. Along these lines Red Bull keeps away from mass marketing and has constantly endeavored to draw in buyers by limiting appropriation of their item. In the event that these issues are not unraveled they may potentially be the reason for a defeat, amidst confronting real contenders. There are four noteworthy open doors that Red Bull can exploit while being arranged at the most astounding point in the market. The organization can acquaint an augmentation with their product offering which may include: more up-to-date flavors to the present caffeinated drink or sports drinks. Red Bull could take advantage of item specialties, already unfamiliar to the organization. Likewise, to extend universally would intend to continue their status. The organization would probably build brand mindfulness in the wake of changing its ‘hostile to mark’ based marketed item. At long last, expanding accessibility of its items would build deals from faithful and more up-to-date clients. Alongside that, expanding broad communications advancements would enable them to just develop as an organization. There are some minor mishaps that include these options. New items could annihilate the offers of others, and money variances and additionally social contrasts may happen over the globe. What’s more, lawful commitments could be difficult to meet because of unfortunate allegations previously, costs and solid challenge could progress toward becoming obstructions to progress. So as to achieve an answer for Red Bull’s current issues, it is prescribed that the organization expands item accessibility in understanding to expanding broad communications advancements. This mix of thoughts will identify with a current target market profile and help accomplish marketing destinations. Red Bull will most likely keep awake to date with changing patterns and advances inside the present market. By encouraging a prescribed IMC procedure, directed crowds can be come to through standard commercial channels, for example, sports systems as well as music channels. A bigger statistic can be drawn through the radio, magazines, just as big-name supports. Ultimately, a situating procedure proclamation that would fit the organization’s present circumstance in the market would be Red Bull, a moderate method for picking up vitality and an encounter, in the meantime.

Case Introduction

Red Bull is an Austrian-produced energy drink that contends in a little specialty of the carbonated soda pop market. Dietrich Mateschitz, an Austrian business visionary moved toward the maker and was allowed a permitting consent to market the item in different nations. Red Bull is marketed universally by Red Bull GmbH, in 120 nations and is the pioneer in the caffeinated drink fragment, with worldwide deals being assessed to be around $2 billion. Red Bull’s inventive item made the caffeinated drink portion. The beverage is intended to help manage mental and physical exhaustion. Their blends of fixings collaborate with one another and give the vitality building advantage. The key fixings in a 250 ML jar of Red Bull are taurine (1000mg), glucuronolactone (600 mg) and caffeine (80 mg). Sugars, for example, glucose and sucrose are likewise included. Red Bull’s market share in the U.S. what’s more, Canada are genuinely high and amazing. Their U.S. market offer is evaluated to be around 46%, making it the pioneer in this market with about $240 million in deals. Their market share in Canada is evaluated to be about half, with $22 million worth of retail deals. Red Bull’s greatest dynamic rivals are Pepsi and Coca-Cola, which are depicted to be pioneers, not devotees. In contrast to its rivals, Red Bull utilizes conveyance in an alternate way. Rather than being promptly accessible it confines dissemination to pull in feeling pioneers, and rely upon the verbal system to bring issues to light. Their objective market is comprised of youthful urban guys from ages 16 to 29, who either live on the edge or possibly try to do as such and are normally intrigued by extraordinary games, undertakings and testing recreational exercises. Red Bull is additionally broadly known for their trademark ‘Red Bull gives you wings’ which fits directly in with their item.

Defining a problem

Red bull’s main problem involves targeting market and shift in market strategy for the positioning due to major competition faced by Red Bull which includes Hansen, Pepsi, and Coca-Cola’s latest energy drink. Major factors which faced by company is pricing factor which is currently double the price of the competitors other problem which company is facing is negative public image as it is unhealthy for consumer health. Red bull is aiming in repositioning market segmentation by not only including youth but also include older men and women. As Red bull stands first in market share its problem is distribution system since it doesn’t have good distribution system as compare to Coca-Cola. Red Bull need to setup their own strategic plan in order to stay in market so that they doesn’t lose Number one spot in market share.

Situational Analysis

Situational analysis means different ways through which managers examine an organization’s environment, both internal and external so as to get a clear picture of organizational environment.

Situational analysis mainly deals with the strengths, weaknesses, opportunity, and threats.

Strengths

• Holds good market share
• Exhibiting good performance in new markets
• Highly skilled workforce
• Return on capital expenditure is very effective

Weaknesses

• Products are expensive
• Less choice of products
• Investment made in R&D is less while compared to competitors
• Products are not considered to be healthy

Opportunities

• New trend in consumer behavior will help to acquire new markets which will ultimately help in generating more revenue
• By implementing new environmental policies, Red Bull can gain new markets
• Red Bull can introduce new flavors which attracts new revenue streams

Threats

• As products are considered to be unhealthy, it’s a main threat
• Paris agreement has implemented many environmental regulations which is a main threat
• Competitors has introduced products at subsidized price

Generation of alternatives

Red Bull can expand its product line by manufacturing various other drinks for other targeted group of audience.

Another alternative it can expand its manufacturing unit in different parts of world in order to cover the cost it will help the product to be cheap and completive. It can also help to increase distribution network.

As to remain number one it has to increase the awareness of product it can be done through increase in promotion media around the world and reach out target audience.

Marketing objectives

• To enhance sales
• To get more established in the industry
• To reach a certain limit of revenue which is already set
• To get more website visitors
• To increase market share
• To spread brand awareness
• To enter into new market
• To enhance relation with customers and stakeholders

Marketing communication objectives

• To retain existing customers
• To encourage existing customers to refer
• Every information passed to the customers should make a brand image
• To provide potential customers with information relating to the product
• To keep customers updated with the new things happening in business (E.g.: launch of new product)
• To create a mutual understanding
• To persuade customers about the product and service.

Identify missing information and assumptions you made

At the point when contrasted with Red Bull in angles, for example, caffeine and sugar content, Monster reliably wins out, and is by and large, a far greater can than the Red Bull.

Be that as it may, more vitality isn’t really something worth being thankful for, contingent upon what you’re doing – through a blend of fixings, these beverages make your cerebrum think you are wakeful when extremely, your body isn’t.

On the off chance that you chug an entire can of Monster in one go, you may much endure heart palpitations, tension or sleep deprivation, particularly on the grounds that your mind and body are out of adjust. That is valid for all caffeinated drinks, on the off chance that you savor them overabundance they can have dreadful wellbeing dangers related with them.

Market Analysis

Market Segments (and shares of market)

The market analysis enables Red Bull to meet the points of the marketing capacity by distinguishing rivalry in the market, and to perceive openings in this manner enabling them to fill the holes making them emerge from different organizations.

Red Bull centers on pitching to a specific market fragment. They point selling a high level of their benefits at more youthful, extraordinary game members. They additionally hope to sell at games, which they support, drawing in a functioning, enthusiastic group of spectators.

Red Bull’s market position depicts the picture of being youthful, sound outrageous game games necessities. They do this by promoting and supporting numerous outrageous games and rivalries, and target more youthful crowds.

Red Bull’s marketing targets are to build benefit, making an all the more universally known item and brand name, and to expand deals.

• Red Bull – The first, propelled in 1997, Red Bull appreciates about 43% of the market.
• Monster – A 39% market share. The organization plainly would like to outperform Red Bull with Coke’s assistance, however Monster officials noted in their income consider a week ago that both Red Bull and Rockstar have picked up offer as of late.
• Rockstar – A solid however distant No. 3, the independent Rockstar has about 10% of the market.
• NOS – This Coke-claimed brand is named after nitrous oxide, and is regularly sold in holders intended to look like nitrous tanks. Its market share is about 3%.
• Amp – Owned by Pepsi Co, Amp additionally has about 3% of the market.

External Influences

Economic

As Red Bull only manufactures in Austria and they exports to all countries major factor which get affected is exchange rate as it is long term effect in order to investment made by Red Bull. Increasing liberalization has benefited further Red Bull to invest more freely. There is no major economic issue faced by Red Bull since it serves to niche market.

Environment

In 2009, there was a natural office distributed a rundown which about the best ten of organizations granted the greatest fines for waste action and Red Bull was one of them. Red Bull was granted fine of £260,000. Red Bull understood their obligation and improved their reusing framework as of late. By making cans with recyclable aluminum.

Social

The beverage itself has been addressed as of late in America, with Red Bull being accused for an instance of startling passing by heart hurt after a ball player devoured one of the cans, which has prompted Red Bull being sued for $85million. Red Bull perceived and followed up on to forestall the loss of custom. The preference for this item, just as the first, is another significant social factor that Red Bull need to control.

Demography

Red Bull target market incorporates sportsmen/ladies just as dedicated individuals. The primary purchasers of the item are Athletes, night clubbers, move specialists, administrators, and long-separate drivers. In spite of the accessibility of few substitutes, the offers of Red Bull are expanding through their all-around situated promotions. This factor has low impact on Red bull.

Technology

With Red Bull’s advertising systems being perceived as very questionable and one of a kind, they are required to pay out a lot of cash to their stand-ins/ladies because of the risks they face. Caffeinated drink Red Bull, utilizes electronic point of sale (EPOS) information. This framework permits clients’ examination groups to check the dissemination of Red Bull. This framework calls attention to the holes that can be come back to the retailers.

Red Bull Competitor Analysis

Product

Red bull is considered as an extraordinary caffeinated drink as it have numerous competitors like Monster drink, PepsiCo, and Dr.Peper, etc. red bull is considered as the prime items. G dink or Gatorade and PowerAde is likewise commonplace among Canadians yet the majority of the general population lean toward red bull as essential decision in light of the taste and obviously the brand picture as well. Clients are increasingly faithful to red bull items.

Price (average and without tax are mentioned subject to change)

• Red bull – $ 4.69
• Monster – $ 2.00
• Rock star – $ 2.00
• Gatorade – $ 1.60
• PowerAde – $1.20

When we looked at the cost in standard size there will be almost 3 dollars of distinction yet at the same time what number of substitutes come red bull have the most astounding interest. What’s more, it’s from students to office workers to heavy load workers prefer red bull.

Distribution

Significant competitors of red bull are Monster and Pepsi Co they have their dissemination everywhere throughout the world demigod is likewise recognizable among many. Their interest can be viewed as s all inclusive. The greater part of the general population in USA is devouring most elevated rate of utilization of red bull in late examinations.

Positioning strategy:

Red bull utilizes the positioning strategy relying upon the picture or separation of product. One of the most upper hand of Red bull is its image. Red bull supports distinctive number of games including dashing and subsequently the brand is related with mental just as physical performance. Over an extensive stretch of time, red bull has accomplished the brand picture of reviving, cool and stylish drink which is appropriate for feverish and occupied way of life of the present world. Advertising media utilized by red bull passes on message that ‘Red bull vitalizes body and psyche’. With the assistance of solid brand picture it is likewise ready to spread the points of interest and advantages f the item and makes separation of item as premium item and furthermore with premium price. But a top notch item additionally needs a top notch organization and circulation. Consumers are not just ready to purchase Red bull in comfort stores, treat machines, markets or supermarkets yet in addition it is accessible in the clubs, sports arenas, bars, etc. Red bull has masterminded and secluded itself as the market manager in juiced refreshments market, fitting they are encouraging to achieve their arranged premium social event and development high ground. The accomplishment of Red bull as a remarkable animated drink perhaps, figuratively speaking subject to how the brand has orchestrated and segregated itself from contenders.

IMC Strategy:

Integrated Marketing Strategy alludes to the joining of different diverts of marketing such that the unmistakable and exact message identified with brand picture contact the intended interest group. The slogan of Red bull expresses that ‘It gives you wings’ and it has its primary spotlight on youthful crowd. A portion of the procedures utilized by Red bull are as per the following:

While publicizing or advancing the item they for the most part make associations with the extraordinary games, for example, mountain biking, diving, and so on as a strategy to pull in consumer’s consideration that it is the sort of beverage that bring moment vitality and is particularly focused to the youthful crowd. Additionally in games as well as it’s picking up prevalence by supporting huge occasions and music celebrations since they know that in such occasions individuals move and appreciate the music and subsequently is the most ideal approach to advance Red bull as the vitality drink. They likewise advance the beverage by giving it for nothing in schools, universities, etc. focusing on the youthful understudies by utilizing the motto ‘It gives you wings’ to acquire notoriety and to build more associations.

Red bull puts great benefit in the IMC methodologies and along these lines it is driving in the market for caffeinated drinks and is accomplishing prominence in this day and age.

Red Bull company slogan is “Red Bull gives you wings”. To identify their target customer, Red Bull Company should divide its market into different segments. Such as:

Demographic Segmentation: In demographic segmentation, Red Bull Company divided its market on the basis of age, gender, income, occupation, etc. Different people of different ages could select a drink from their wide range. Red Bull offers drinks, both for male and female. Their main target should be students, athletics, professionals, and travelers.

Psychographic Segmentation: Red Bull Companies psychographic segmentation should include social class and lifestyle. Their main target should be the middle class and upper-class people. Red Bull lifestyle segmentation is based on explorer, reformer, and successor.

Geographic Segmentation: Geographic segmentation is done using the geographical location, which is segmented by region and mass of the population. They should provide different scheme according to the region, cities, and locations. Markets are mainly divided into urban and rural areas. In some of the countries, Red Bull limits itself to semi-urban and urban areas. It should also target a Class A and Class B city that is metro politician cities.

IMC Execution (Action Plan)

The Red Bull should give more focus on its IMC execution. The major focus point should be branding, corporate image, advertising, and media selection, and promotional tools, public relation. The promotional plan should be executed over the year around and, it should be continued such as advertisement or promotion in magazines and newspapers.

1. Media Action Plan
2. Media
3. Time
4. Practices
5. newspapers
6. weekly
7. Widely used by customer, help in daily promotion
8. magazine
9. 3 months
10. Will get recognition more easily
11. Radio
12. 1 year
13. Students can be attracted
14. Contest
15. Special Occasions
16. More people attracted
17. publicity
18. Continuous
19. Keep customer to remember the product
20. Personal selling
21. 6 months
22. Help to create public relation
23. Social Media Platforms
24. Daily
25. Widely used by youth, students and professionals

Communication Plan:

• All of the department should inform about the tactics
• Brand manager should explain about market segmentation and 4Ps.
• Sales manager should coordinate with retailer, distributers, and suppliers.
• Marketing director should collect report from all the sectors.

Budget:

The estimated budget for Red Bull Company will incurred 1.7 million. The details are:

1. Media
2. Estimated Cost
3. Social Media Platform
4. Advertisement on social media will cost approximately $1.5 million
5. Newspaper
6. Estimated Cost $40000/-
7. Magazine
8. Estimated cost for magazine advertisement will be $75000/-
9. Contest
10. Estimated Cost $50000
11. Publicity
12. Radio
13. Estimated cost $50000/-
14. Continuous Publicity
15. Estimated Cost $35000

Evaluation:

• Company should check their achievement according to their goals and objectives.
• Comparing the estimated growth with the actual growth.
• Checking ongoing planning with the annual plan
• Try to found out weaknesses and strength and more work on weaknesses
• Calculate and compare the profitability of the product
• Marketing audit should be done by timely.

Case Conclusion

Red Bull’s Canadian Market holds a great potentiality in terms of Energy Drinks Market. Although it is just 8% of the US Market, the market is growing at very high rate. More and more people are trying Energy Drinks, attracted mostly to the uniqueness of the brand image. At the same time, the competitors are growing in their size and share, which puts a high pressure on them to run ahead of the competitors. The proposed Marketing Strategy and Communication Plan presents the ideas to enhance customer base, strengthen loyalty, and achieve an impressive brand image. We have allocated around 10.62% of the retail sales budget for IMC Execution, to implement strategies through employee involvement, and efficient distribution networks. Some of the theoretical concepts used here are as follows:

• Identifying the USP to formulate the IMC Strategy
• Brand Building through Marketing Communication Objectives

References

1. (n.d.). Retrieved from http://researchwikis.com/Energy_Drinks_Market
2. Do you know your Communications Objectives? – Well Said. (2014, September 16). Retrieved from http://www.wellsaidcommunications.ca/communications-objectives/
3. MACRO (PESTEL) AND MICRO ENVIRONMENT. (2013, November 06). Retrieved from https://mattwhittaker715.wordpress.com/2013/10/14/macro-pestel/
4. Mang2369387. (2013, October 08). Red Bull’s Integrated Marketing Communication. Retrieved from https://loyoladigitaladvertising.wordpress.com/2013/10/08/red-bulls-integrated-marketing-communication/
5. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positioning/
6. Red Bull SWOT analysis. (n.d.). Retrieved from https://www.ukessays.com/essays/business/redbull-swot-analysis-business-essay.php
7. Red Bull SWOT Analysis – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-swot-analysis/
8. SWOT Analysis of Red Bull. (2015, November 20). Retrieved from http://marketingdawn.com/swot-analysis-of-red-bull/
9. Tan, K. A. (2019, May 23). Monster vs Red Bull – What’s the Difference? Retrieved from https://reizeclub.com/monster-vs-red-bull/
10. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positioning/
11. RED BULL MARKETING STARTEGY. (n.d.). Retrieved from https://www.linkedin.com/pulse/red-bull-marketing-startegy-swapnil-jadhav/
12. Red Bull Imc Plan. (n.d.). Retrieved from https://www.scribd.com/doc/56492665/Red-Bull-Imc-Plan

Analytical Essay on Brand Management of Red Bull

Industry Overview:

Red Bull is a premium brand of energy drinks with a niche market sector, however, it falls under beverages industry.It is an industry that consist of a wide range including packed water, milk, tea, coffee, soft drinks, alcoholic drinks etc. Red Bull comes under the umbrella of Non-alcoholic carbonated drinks.

The market of energy drink is very small in this industry need category it serves is SEC A and B+ but this is where the company sees a chance to grow and they have high potential for growth. Factually this is only 0.6% of the total industry but the brand is a premium brand and the market is niche.

Company History and Overview:

The Can Explained:

When Dietrich Mateschitz was attempting to launch Red Bull, it was clear that this unique product would require unique packaging.

The bulls & sun

It was clear from the beginning that the two bulls fighting in front of the sun would be the logo. They represent power, vigor and energy. The red color also stands for energy, power, and passion.

“Red bull”

The Red Bulls reflect the power and energy represented by the bulls and the sun, and to better position ourselves globally, we chose the English name “Red Bull”

“Energy drink”

The western world had never seen a product like ours! Hence, we were the very first to use the designation “energy drink”.

An entirely new product category was born

The blue rhombus

To reinforce the bold look, we avoided soft lines in the can’s design, opting instead for the edgy lines of blue. The blue shape itself also projects a dynamic look symbolizing speed and progression.

The can’s blue and silver color combination completed the masculine appeal.

“Vitalizes body and mind.”

Red Bull works! On the front of every can we clearly communicate this product promise.

The Can Explained:

Today, the Red Bull can is instantly recognized by consumers all over the world. Amazingly, it hasn’t changed from its original iconic design.

Brief History:

Dietrich Mateschitz establishes a company called Red Bull in Austria. The rest, as they say, is history. Working with his friend Johannes Kastner, Dietrich Mateschitz approves the official brand positioning of Red Bull: “Red Bull verleiht Flüüügel”—Red Bull Gives You Wings! The product was finally ready for market. In 1998 the Red Bull Music Academy starts in Berlin as the first real music initiative from Red Bull. The Academy is a world-travelling series of music workshops and festivals, a platform for those who make a difference in today’s music, by bringing together upcoming and aspiring artists with music icons and legends. In 2001, for the first time, Red Bull surpassed 1 billion cans sold in one year. Since 2001, Red Bull now sold over 40 billion cans. When a consumer buys a Red Bull, they’re not just buying our product—they’re buying into our brand. The product and its functionality is the foundation of Red Bull. People drink Red Bull because they expect and have experienced that it works!

Mission:

The mission of Red Bull is straight forward and short. They want to be the leading beverage and media brand around the globe and give wings to ideas and people. By giving wings they mean increasing the consumption of Red Bull as they say Red Bull gives you wings. Also, they don’t want to restrict themselves by being a beverage brand they also want to establish themselves as a media brand which they are currently.

Red Bull-The Brand:

Product vs. Brand:

Red Bull believes that why sell only a product when you can offer a way of life. When a consumer buys a Red Bull, they’re not just buying our product—they’re buying into our brand. But what is a brand? And how does that differ from the product?

Product

Brand

Benefit: Functionality

Vitalizes body and mind.

Benefit: The subjective expectation of product efficacy

Gives you wings. In different moments of need–sports, work, study, driving, playing video games, going out–consumers expect different benefits.

Role:

Foundation

Our product and its functionality is the foundation of Red Bull. People drink Red Bull because they expect and have experienced that it works!

Role:

Associations

Our image creates associations–the desires and emotions that come into the consumer’s mind whenever they see a can of Red Bull. People also drink Red Bull because they identify with these associations!

Promise: PRODUCT

Positioning

Promise: BRAND

Reason Why

Brand Personality Traits:

If Red Bull was a person, what personality would he have? As a new employee, it’s important to know the brand traits as they are reflected in pretty much everything we do.

1. Innovative: He likes to invent new things and is always one step ahead.
2. Self-confident: She knows what she is good at and doesn’t show off.
3. Non-conformist: He is rebellious and doesn’t follow society’s conventions. He isn’t always politically correct!
4. Anti-authoritarian: He challenges the status quo and does not always obey rules to the letter.
5. Self-ironic: Because he is self-confident he can laugh about himself and doesn’t take himself too seriously.
6. Professional: He strives for 100% perfection and refuses to compromise on quality. He never settles on the second best option.
7. Ingenious: He has an intelligent humor, never at other people’s expense. He is not a clown—his humor has style.
8. Polarizing: Either you love him or you hate him.
9. Mystic: He always keeps a secret. Nobody can fully grasp him, which is the key to becoming a myth.
10. Genuine: People like him for what he is; Straightforward and a real friend.
11. Relaxed: He is laid-back and never pushy.
12. Creative: He does things differently and has unexpected approaches.
13. Loves life: He enjoys life to its fullest and likes to have fun.He enjoys sport, music and art as long as it’s top-quality.
14. Unpredictable: He is full of surprises. He is interesting, exciting and spontaneous.
15. Individual: We celebrate and embrace individuality, always having in mind ‘I do it my way’.

Brand Pyramid:

The Red Bull Logo: The Face Of The Brand

Red Bull’s approach to using the logo is truly unique compared to other brands. Because we’re a premium brand, we are restrictive and very selective on how the logo is used. We never “over-brand”—we always use the logo with purpose, connected to one of our projects or initiatives. This makes our brand appear more desirable, credible and premium.

Red Bull Branding:

How We Use Our Logo: the can

The can always remains our most important branding tool, authentic integration with opinion leaders or in a specific environment is key (e.g. can in hand, on a DJ desk, drinking scene, etc.).

The Product:

Red Bull Energy Drink

Red Bull Energy Drink is a functional beverage that provides various benefits, especially in times of increased performance.

Red Bull Gives You Wings-Red Bull Energy Drink is appreciated worldwide by top athletes, students, and in highly demanding professions as well as during long drives.

Ingredients

The formula of Red Bull Energy Drink contains a special combination of high quality ingredients.

• Caffeine: Caffeine has already been known for its stimulating effects on the human body by ancient civilisations who consumed it from natural sources like tea, coffee, cacao beans & cola nuts.

To this day caffeine is naturally present in more than 60 plants and contained in many foodstuffs such as coffee, tea and chocolate. In fact, the caffeine in Red Bull and the caffeine in coffee has an identical chemical structure. So, your body processes the ingredient the exact same way.

One of caffeine’s primary sites of action in the human body is its stimulating effect on cognitive functions. Caffeine helps to improve concentration and increase alertness.

One 250ml (8.4 oz) can of Red Bull Energy Drink contains 80 mg of caffeine—about the same amount of caffeine as a cup of coffee!

• Taurine: Taurine is an amino acid, naturally occurring in the human body and present in the daily diet. It is involved in a wide range of biological processes.

Taurine is found in high concentrations in muscle, brain, heart and blood.

Taurine is also contained in different foodstuffs like scallops, fish, poultry and most infant formulas.

• B-Group Vitamins: Vitamins are essential micronutrients that are required for maintaining normal body functions.

There are two types of vitamins: fat soluble and water soluble. Red Bull contains water-soluble vitamins. Water-soluble vitamins do not get stored as much in the body as fat soluble vitamins. Instead they circulate through the blood plasma, whatever the body does not use will be released. Water soluble vitamins include the group of B vitamins, e.g. niacinamide (vitamin B3), pantothenic acid (vitamin B5), vitamin B6 and vitamin B12, which are contained in Red Bull.

These B-group vitamins contribute to normal energy-yielding metabolism, such as the build-up and break-down of carbohydrates and proteins and contribute to normal mental performance (B5) and the reduction of tiredness and fatigue (B3, B5, B6, B12).

Moreover, B-group vitamins play a central role in the brain; they contribute to the normal functioning of the nervous system.

B-group vitamins in Red Bull

• Sugars: Red Bull Energy Drink contains 11g/100ml of sugars. This total amount of sugars is comparable to the sugar level in an equivalent amount of apple or orange juice.
• Alpine Water: The water used for Red Bull is fresh Alpine water of the highest quality, which comes from springs nearby the production sites in Austria and Switzerland. This region, the Alps, is known as one of the world’s biggest fresh water reservoirs, where water is available in abundance and is constantly replenished.

Red Bull Sugarfree

Red Bull Sugarfree is Red Bull Energy Drink without sugar. It is a functional beverage with only 3 calories per 100 ml

When to drink

Red Bull is a functional beverage that provides various benefits, especially in times of increased performance.

1. On the road: Every driver knows that the most important factor for a safe journey is an alert state of body and mind. Red Bull is the ideal fuel for those who cover many kilometers. Whether it’s a stressful business trip, a spontaneous excursion or while on vacation, take a break and reach out for a cold can of Red Bull.
2. During lectures & study sessions: For university students all over the world, the blue and silver can is as important to their lectures and study sessions as pencil and paper. They appreciate Red Bull Energy Drink after a challenging day between the auditorium and study, or in leisure time with their fellow students and friends.
3. At work: The world is spinning at great speed, so professional life is certainly a daily challenge. For all those who have to fully focus on their jobs, a chilled Red Bull gives additional support. Whether it’s during intense meetings, conference calls or creative brainstorming sessions.
4. While doing sports: Whenever athletes are in need of wings they turn to Red Bull. Red Bull Energy Drink is appreciated by sports enthusiasts and top athletes all over the world.
5. While playing video games: Good skills and constant training are half the battle. If you want to keep the pace up with your teammates or competitors make sure you have a can of Red Bull at your side to take your game to a higher level.
6. While going out day and night: Red Bull is a self-evident guest at every party, club session, festival and concert. Like many djs, B-boys and other artists you can benefit from Red Bull to ensure you get the most out of your days and nights.

The can lifecycle:

A big company doesn’t have to have a big carbon footprint. We’re always looking for ways to reduce our environmental impact. Learn more about what we’re doing by checking out our Can Lifecycle.

Fact: 80% of the energy used it the production processes of Red Bull comes from renewable resources.

Other things to know:

• Red Bull does not cause dehydration. Red Bull Energy Drink cannot lead to dehydration (and nothing within Red Bull Energy Drink has a dehydrating effect).
• Red Bull Energy Drink is a functional beverage and not a sports drink for rehydration.
• Although normal consumption of Red Bull Energy Drink also provides water to the body, it has not been formulated to deliver rehydrati, therefore,refore encourage people who engage in sports also to drink lots of water during intense exercise.
• Red Bull has never been banned in any country. There are, however, places where it has not been authorized yet. No authority in the world has ever discovered or proven an unhealthy effect in or from Red Bull.
• Red Bull is not addictive. Red Bull is not addictive and does not contain any addictive substances. Ingredients such as taurine are natural constituents of the human body and present in foods such as scallops. Caffeine is an ingredient in common foods such as coffee, tea or chocolate, and there is scientific consensus that caffeine is not addictive.
• Red Bull is vegan-friendly, gluten-free, wheat and dairy-free, kosher and halal. Red Bull does not contain any animal by-products and is certified as kosher and halal.

Marketing Mix:

Red Bull’s unique approach to marketing begins with the Marketing Mix. It features six pillars –each with a different objective, each equally important.

1. On-Premise (Push): Refers to outlets where Red Bull is consumed at the place it’s purchased (e.g. clubs, bars, restaurants, etc.). Is crucial for establishing an aspirational brand image. In addition, it is the first place of contact for many consumers.
2. Off-Premise (Pull): Comprised of grocery stores, convenience stores, gas stations and more. It is where consumers pick up a Red Bull for later. A strong in-store presence, the right pricing and adequate promotion support are crucial.
3. Event Marketing: To bring the brand world to life and create content others talk about.
4. Communication: To position the brand, create awareness and image.
5. Consu mer Collecting: To win new consumers and introduce different consumption occasions (eg. working, studying, driving, sports, party) but also to increase brand loyalty amongst students.
6. Opinion Leader Programmes: To reinforce the credibility of the product effectiveness and build the brand image.
7. WOM: A combination of all activities in the marketing mix produces word of mouth, the most credible and convincing form of marketing.

Business Strategy:

Red Bull’s business strategy is product differentiation and focus mainly. They are not towards cost leadership because the brand itself is a premium brand and they do not need cost leadership currently. However, their product is totally different, valuable, rare, and non-imitable and created its own culture. Western world never saw anything as an energy drink when Red Bull was launched. It was a unique formula to Vitalize mind and body and it became successful. Now the mixture of its ingredients is a secret and this is only produced in Austria and then it’s distributed globally. Moreover, Red Bull created a culture of adventure and sports so now when you see or think about adventure and sports, you think about Red Bull due to its heavy engagements.

Points of Parity & Points of Difference:

Points of Parity

Points of Difference

• Sweet and carbonated taste like cola
• Energy Drink-it was initially a POD of Red Bull; however it has been negated by competitiors
• Functional Drink
• Credible brand history
• Medicinal taste
• Premium price
• Exclusive imagery

Situation Analysis:

Strengths:

• Category leader – Red Bull has established a strong, consistent brand image globally. Red Bull is synonymous with energy drinks in many countries.
• Marketing strategy – The promotional activities engaged by Red Bull throught extreme sports sponsorships have helped the brand to build a strong identity and to increase consumer awareness/loyalty.
• Broad geographic presence – Red Bull has a broad geographic presence, which should ensure positive long-term growth even if certain markets reach maturity

Weaknesses:

• Category limitations – In overall soft drinks, Red Bull has a limited product portfolio compared to the rising number of competitors bringing many other flavour variants and categories.
• Pricing – Red Bull products are above the energy drinks average price. Consumers tend to think twice at the time of purchase.
• Copy problematic – Red Bull’s recipe is subject to copy be cause of a lack of patent.
• Controversial – The relatively high caffeine and taurine content of Red Bull makes the brand highly vulnerable to regulatory controls.
• Local relevance

Opportunities:

• 0.6% share in Global beverage market which means high potential of growth
• 9% growth in value where coke and Pepsi are in negative
• Emerging markets – Emerging markets represent newer geographies for Red Bull’s expansion. Accelerating the marketing and sponsorships in these markets is a wise move.
• New production – Red Bull’s new production facilities in emerging countries are likely to make its retail price more competitive. The brand should also consider building production sites in Asia.
• ·Product line extension – Offering new flavours and formats should help Red Bull to keep/improve its market shares.

Threats:

• Competition – Monster represents the biggest threat as it contains natural ingredients, which seems more desirable than Red Bull for some consumers. Competition is becoming more and more dangerous in term of marketing actions (copying Red Bull).
• High marketing costs – Maturity in developed markets makes promotion harder than in the past, inducing higher marketing costs.
• Negative publicity – Media worldwide report Red Bull as harmful for health. Parents also state that some components can be dangerous if consumed by their teenagers (who are the product’s target audience).

SMART Objectives:

Red Bull uses the acronym SMART to set objectives for their strategies and plans. The SMART objectives are: Specific, Measurable, Achievable, Realistic, and Time based.

• Specific

Red Bull sets its objectives in precise numerical terms such as numbers, percentages, or even frequencies.

• Measurable

Red Bull monitors and records the data based on behaviours and actions. It measures the effectiveness of the objectives by evaluating consumers’ response.

• Achievable

Red Bull managers invest a reasonable amount of effort and application into achieving their main objective.

• Realistic

Red Bull sets its objectives based on the inputs they have in order to be realistic to reach their goals.

• Time-Based

When planning a Red Bull campaign, the company sets specific dates and times for when the implantation, process and evaluation will take place.

Macro (pastel) and microenvironment

Political

Red Bull dominates the energy drinks market. Due to this, they will be continuously watched and monitored to ensure that they are meeting the required legal standards. The company has many different departments within their organization that specialize in certain aspects, combined, their efforts keep the business running smoothly. To avoid complexities, each department will ensure they are carrying out their own procedures legally.

Environmental

There is a environmental factor that can affect the image of Red Bull, which is pollution. In 2009, there was an environmental agency published a list which about the top ten of companies awarded the biggest fines for waste activity and Red Bull was one of them. Red Bull realized their responsibility and improved their recycling system in recent years.

Social

The drink itself has been questioned multiple times. It has been well documented that the energy drink is high in caffeine, with many critics suggesting it shouldn’t be consumed, something that France, Norway and Denmark have all taken into consideration. The social implications of this are obvious, giving the company a bad name for continuing to produce their drink with the given recipe.

To ensure they are reaching out to a wider market, Red Bull produced the sugar free version of their energy drink. This would appeal to people that are more conscious of the health issues, which is something that Red Bull recognised and acted on to prevent the loss of custom. The taste in this product, as well as the original, is another important social factor that Red Bull need to control.

Technology

With Red Bulls marketing techniques being recognised as highly controversial and unique, they are required to pay out large amounts of money to their stunt men/women due to the dangers they face. This being the case, the internet is something that Red Bull heavily rely on in order to promote their product. Websites such as YouTube, as well as social networking sites such as Facebook and Twitter will play an important role in helping their adverts become recognised. Not only is this a free way of advertising, it is also perfect for their target audience of active sports persons between 15-30, something that matches Facebook’s target market of active mobile phone users.

Economic

The first economic problem is inflation will be happening when there is too high supply of money in the economy, and it is not appeared by the goods and services. As a result of inflation, Red Bull might increase the price to sustain the business, also the costs of raw materials which for production will be increased as well. The interest rates that are provided by banks will affect Red Bull’s loans should they need one. Should the current economic situation continue to get worse, interest rates will rise.

Legal

To ensure their product can be sold in stores, the Red Bull energy drink will need to meet legal requirements applicable to the countries the product is available in, in order for trading to commence. The drink needs to be safe for humans to consume, meaning the customer doesn’t receive any adverse side effects, i.e. vomiting. In conjunction with this, the ingredients, along with the quantities they use, need to be clearly stated on each can or pack. This is a legal requirement to avoid consumers having a reaction, potentially leading to them filing a law suit generating bad press.

Micro

There are different factors that effect Red Bull from the micro environment, such as the suppliers, the customers, competitors and other substitute products. Red Bull will have an agreement in place in which their regular and trusted suppliers will provide their ingredients needed to create the products. The customers, most of which Red Bull will have specifically targeted, are the ones that the product is obviously designed for. They are, effectively, in charge of the success or failure of the product. The competitors in the market, which are all currently behind Red Bull in market share, will effect them via pricing differences, content differences and taste difference. These are some of the things Red Bull are required to consider when manufacturing, marketing and pricing their drink. Any substitute products that are on the market will need to be recognized and acted on. Cheaper drinks, such as supermarket branded energy drinks, are often packaged in a dull and less appealing way, giving Red Bull the advantage here.

Conclusion: Market Overview

Red Bull is the strongest brand in non-alcoholic beverages behind Coca-Cola and Pepsi, and is growing faster than them. Our brand value has also skyrocketed—in 2010 research company Millward Brown, calculated Red Bull’s brand value at $10.4 billion. After Red Bull Stratos, they valued it at $15 billion.

Red Bull is ready to compete with Coke and Pepsi all over the world.

But how?

Red Bull’s use of unconventional marketing tactics has enabled the company to uniquely position itself in the functional beverage industry. Although the company’s financial information is not released to thepublic; it appears that Red Bull’s unique positioning and marketing strategies have been successful in terms of market share, units sold, and revenue. We believe that these tactics will continue to prove successful in future.

Analysis of Senior Management and Corporate Strategy of Red Bull

Further research into one presentation topic to critically evaluate the implication of the topic for senior management and corporate strategy.

Red Bull was established by Dietrich Mateschitz in the mid 1980’s, propelled by utilitarian beverages from the Far East. He made the recipe of Red Bull Energy Drink and built up the novel promoting idea of Red Bull in 1987 (Red Bull, 2019). Everything happened when Dietrich was working for ‘Blendax’ as the supervisor (Forbes, 2019). When he visited the store to buy a beverage that is the point at which he understood that there was no market in that capacity for caffeinated or energy drinks. Red Bull Energy Drink was sold for the specific first time in its home country Austria in 1987 on April 1st. Today Red Bull is accessible in 171 nations and more than 68 billion cans of Red Bull have been devoured up until this point (Red Bull, 2019).

Mr. Mateschitz recognized the requirements of the clients, accordingly, the brand was exemplified by the market. Red bull is known to fabricate an identity, not a brand which is the methodology used to pull in the market and viewed as a brand that should be available (Forbes, 2018).

Red Bull is a utilitarian energy beverage containing caffeine, B-Group nutrients, Taurine, Sugars, and Alpine water. Notwithstanding the customary Red Bull, the organization has ‘ Red Bull Total Zero, Red Bull Sugar-free’ and ‘Red Bull Red, Blue and Silver Edition’ in its collection (Red Bull, 2019).

In 2017, an aggregate of 6.302 billion cans of Red Bull were sold worldwide, speaking to an expansion of 4.0% against an effectively exceptionally fruitful in 2016 (Red Bull, 2019). Considering cost variances, organization turnover display as 4.2% expansion from EUR 6.029 billion – EUR 6.282 billion in 2017. The following graph shows the Red Bull income globally from 2011 to 2017 in billion.

Figure 1 – Red Bull income globally from 2011 to 2017

Source: Statista (2019)

As far as incomes, profitability, sales, and working benefit, the figures were high and speak to the best in the organization’s history until now (Red Bull, 2019). The fundamental explanations behind such positive figures incorporate exceptional deals in the Red Bull market in India (+15%), UK (+13%), Northern Europe (+13%), The Netherlands (+15%), and Turkey (+34%), joined with amazingly effective cost the board and progressing brand venture (Red Bull, 2019).

According to the industry talk done on Red bull, the marketing mix of Red Bull includes occasions, media, and coordinate contracts with competitors and VIPs, and sentiment pioneers. Every one of these components are interconnected where the occasions are communicated on media, though the immediate contracts are the buyers who give input on the beverage through inspecting and finally the assessment chiefs who are the specialists, for example, Madonna, Britney Spears and competitors who show up on adverts that are broadcasted on media which considers the marketing mix.

Red Bull is devoured are organized for a more drawn out timeframe. Events such as, parties, studying, work, electric gaming and sports. The aftereffect of the different utilization techniques are because of the manners by which Red bull has been promoted. Red bull has spread brand love, brand loyalty among consumers, done trail entrance, presented p4w usage and brand and item confirmation.

All Red Bull cans are 100% recyclable cans, when they’ve been gathered and achieved the recycling departments, not the most diminutive piece of aluminium is lost. They can be softened down and reused an unending number of times with definitely no misfortune in quality. Utilizing recovered aluminium involves a 95% sparing in vitality contrasted with utilizing new aluminium (Red Bull, 2019).

There are some outstanding methodologies behind Red Bull’s prosperity incorporating its contribution with extraordinary games, for example, hang floating and bungee hopping and its cooperation in the F1 circuit through its eponymous group, which helps to attract consumers performed successfully. Its motto ‘Red Bull gives you wings’ has seen the firm join its image to some high hazard experiences on the planet (Pangarkar & Agarwal, 2013). This insatiable atmosphere is an impression of Red Bull’s freewheeling corporate culture that has empowered the organization to construct a fortunate execution record in the course of the most recent 25 years (Pangarkar & Agarwal, 2013).

Red Bull formula one group Red Bull racing is maybe the best utilization of the auto dashing arrangement as a rapid marketing for the organization as the utilization of the game so as to obtain to the client while enabling the brand to trap the buyers into purchasing the energy drink (Sylt, 2018). Red Bull utilizes F1 for advancement where the races gives the brand introduction which makes the income into the organization (Sylt, 2018).

According to the Red Bull’s newest finance statement, in 2016, Red Bull gave 35.1% of its $304.8 million (£247.8 million) income. Red Bull was still left in the red despite the fact that the organization made a $10.3 million (£8.4 million) net benefit which was the most astounding in F1 as we as of late announced (Sylt, 2018).

The organization ought to be a prevailing business paying little heed to the challenge and the contenders inside the market. Most astounding piece of the overall industry ought to be claimed by the commanding business. Red bull has a couple of rivals in the market to be specific, Nestle, the coca-cola organization, Dr Pepper Snapple group, and PepsiCo (Sylt, 2018). The organization was rich enough to purchase the Red bull Racing group (F1 races) from Jaguar which means that Red bull isn’t just a prevailing brand yet additionally is an essential partner (Sylt, 2018). The organization has put more than $1.4 billion in Red bull racing and has figured out how to spend more than $239 billion together with the organization group and in addition another group (Sylt, 2018). Along these lines, it could be portrayed that Red bull is making enough to stay inside the market (Sylt, 2018).

As opposed to partners, the organization’s development has been contributed by the organization’s own benefits (Pangarkar & Agarwal, 2013). The strategy utilized is very shrewd and it had empowered to enhance the organization further as the offers of Red bull won’t be offered to outer gatherings and the general population who might make issues the organization bringing about a moderate development in the achievement (Pangarkar & Agarwal, 2013).

In conclusion, Red Bull differentiate their products and brand positioning has demonstrated effective as defended by overall development and expanded deals turnover over years. Red Bull interesting and imaginative products required a remarkable correspondence and marketing procedure and the overall methodologies that Red bull has embraced have been a success.