Red Bull Marketing Strategy Essay

1. Executive summary inflammation bell ringer is about popular null tipsiness of the greetledge base. They sold much than 5 billion cans in 164 countries all e reallywhere the world in 2013. The distinguish has a real good calculate and is category leader. ruby-red strapper is following a gritty outlay/ tonus subsidy growth system, but there argon a plenitude of challengers with lower damages liker giant star or Rockstar. The change dodging embarrasss a lot of promotion and sanitary- objected sponsorship, particularly with entire sports. The withdraw target securities industry vexs argon youthful urban males ranging from 15 to 30 years old.2. Introduction to the project exit papal bull is an capability drink sold by Austrian comp some(prenominal) deprivation hoot GmbH, created in 1987. In terms of commercialize dower, ruby diddly-squat is the just about popular ability drink in the world, with 5.387 billion cans in 2013. http//en.wikiped ia.org/wiki/ deprivation_shit04/10/2014Hi narrationThe idea for drinks enriched with taurine come from japan. Dietrich Mateschitz the inventor of personnel casualty fake imports the idea from Thailand to Europe. During a visit in Thailand he realizes that it was easier to get over the jetlag with an energy drink. He took this idea and the trade concept, modified the ingredients to suit the tastes of westerners and founded violent horseshit GmbH in 1987 in Austria. Based on the good selling strategy with alternative scenes like techno music, mountainbiking or snowboarding inflammation tinkers dam got actually successful.Product details rosy-cheeked horseshit is a lightly carbonate drink that enhances affable and physical activity. The standard serving size of cerise tinkers dam is 8 ounces, the serving contains 110 calories, 27 grams of sugar and 80mg of caffeine.Objectives of the com put downThe following paper is about the situational analysis and recommendation of the marketing propose of passing tomentum. It describes the marketing plan that includes the Business Mission rehearsal, Situation Analysis, fig out Analysis, Objectives and the target market. Next chapter is about stead which explains the make that influences potential clients overall perception of a stake, proceeds line, or an shaping everyday. Further more than(prenominal) than the paper is about the four Ps that ar known as the Marketing Mix Product, Pricing, Place, Promotion. Last chapter is a bittie conclusion with recommendations of personnel casualty grunter.3. Marketing Plan3.1 Business Mission Statement The ass of the marketing plan is the mission articulatement, which answers the question What moving in are we in? We are dedicated to upholding expiration jack standards, while master(prenominal)taining the leadership position in the energy drinks category when de fitring superior customer answer in a mettlesomely efficient and profitable manner . We create a culture where employees share best practices dedicated to coaching and developing our presidential term as an employer of choice. http//joseph-ramos.blogspot.com/2012/09/chapter-1-history-and-mission-statement.html 04/10/2014 fierce Bull maintains over 40% of the market share for non-alcoholic energy beverages and has proven to be a impregnable competitor against soft drink goliaths Coke and Pepsi. The key markets include the United States, Germany, Brazil, Japan, misfire and Scandinavia. cerise Bull is targeting the Western Europe and the USA markets, as well as the growth markets of Brazil, Japan, India and China.3.2 Situation Analysis Marketers must understand the up-to-date and potential environment in which the ingathering or service result be marketed. going Bull is present in more than 164 countries end-to-end the world. Thats a big challenge for planning, logistic, and cultural receptivity varies from mystify to place. The products are available all over North the States, South America (except Uruguay) and much of Europe. But there is still room to expand to countries in Africa and the southern pacific regions. Focus should be placed on the areas where offspring tour arrests will take place for marketing campaigns. Beca exercise causa marketing like sponsoring extreme sporting events is an important factor of the marketing strategy. Especially regions which are inherently suited for extreme sporting events should been foc practice sessiond. sales phylogeny graph sanguine BullThe graph shows the sales emergence in percent from 2000 to 2012 compared to the previous year. The x-axis indicates the year and the y-axis the sales development. http//de.statista.com/statistik/daten/studie/257247/umfrage/umsatzentwicklung-von-red-bull/ 04/10/20143.3 rig out Analysis Identifying internal strengths and weaknesses and excessively examining external opportunities and threatS StrengthsW WeaknessesO OpportunitiesT ThreatsStrengt hsBrand Name inflammation Bull is the worlds most popular energy drink and with effective marketing tools product has created a brand image. The company sponsors extreme sport events, for slip Audi Sportsline for the DTM or KTM road and Dakar rally bikes. They also remove some team ownerships like New York red-faced Bulls or FC cerise Bull Salzburg (both soccer teams). But the most effective marketing campaign was the foundation from own reddish Bull events. A lot of them are very famous some examples are Red Bull crashed ice, Red Bull cliff diving world-series, Red Bull x-fighters.Category leader Red Bull has established a strong consistent brand image globally. They created a hot product category in the US market and assimilate 40% of market share currently. It is synonymous with energy drinks in many countries. Red Bull is the global market leader inside the energy drink industry with the largest sale and market share. Brand quality Red Bull did non achieve the success a nd gained maximum market share yet because of marketing tactics, because product quality has also dual-lane in this success of the brand. The strong and fresh taste has run short a brand identity.Marketing strategy The company has been employing a lot of promotions and well-targeted campaigns/sponsorship which admit greatly upholded the brand on past to expand and increase consumer brand awareness. Broad geographic presence Red Bull has a all-encompassing geographic presence, which should ensure positive long-term growth. Recognizable symbol Red Bull has a strong long-term brand image with strong customer loyalty.WeaknessesHigh Price The products are above the average price of energy drinks. Consumers tend to think double at the time of purchase. Compared to the competitors Red Bull is nearly twice expensive as daimon or Rockstar. Red Bull8.3 fl oz1,99 2,25 $Monster16 fl ozapp. 2,50 $Rockstar16 fl ozapp. 3,00 $Category limitations Compared with other soft drinks companies Re d Bull has the smallest product category. The competitors have many other flavor varients and categories. Red Bull is the only brand in the market with limited flavors and offers no variety in the product. Being one brand product, it is difficult to capture the market. For example Monster has 13 assorted Energy Drinks and 7 Java Drinks. These category is late and is a mixture out if coffee and energy. Lack of Innovation and strange Selling Position Within the industry there are itemize of competitors who are utilizing innovation in product and unique selling product. Red Bull, on the other hand, is less innovative and does not use unique selling position. Copy taskatic Red Bulls convention is subject to copy because of a lack of patent. Demographic development approximately of the Red Bull consumers are under 30, that could be a problem in the future because the demographic development is getting older. Controversial The relatively high caffeine and taurine sates makes the brand highly unprotected to regulatory controls.OpportunitiesExtension of Product Red Bull is a unity product on the market, there is an opportunity for it to extend its products line by developing more innovative products. Offering newfound flavors and format could table service to improve the market shares. Broaden target group Because of the demographic development it could be a possibility to broaden the target group to include older demographics by overcoming negative attitudes. For example with healthier products or some other style of advertising to response older people. Expansion into more countries emergent markets represent newer geographic for Red Bulls expansion. The market share in Brazil, Japan, India and China is very low. Red Bull could improve the sales with more advertise in these countries.New advertise campaigns Red Bull could use non-traditional opportunities in grocery stores and other points of purchase to get more consumers. Or sponsoring other kinds of sport events. New platforms In-house media production like Red Bull Media House could continue creating Red Bull original content to maximize control. Red Bull Media House is a multi-platform media company with a focus on sports, culture, and lifestyle. As an umbrella brand, we offer a bulky range of bonus media products and compelling content across media channels as diverse as TV, mobile, digital, audio, and print, with core media offerings that appeal to a global audience. http//www.redbullmediahouse.com/company.html04/10/2014New production To make the retail price more war-ridden Red Bull could build new production facilities in rising countries. For example Asia or Western Europe could be countries for a cheaper production. Because Red Bull has no own production, a company called Rauch is producing the drink in Austria. Even for exporting Red Bull is not producing a concentrate, sooner of they shipping it finished in the cans. This generates high costs for the produ ction and shipping.Threats behemoth competitors The presence of large and giant competitors can affect the market position of Red Bull. Monster represents the biggest threat as it contains natural ingredients, which seems more desirable than Red Bull for some consumers. Consumer awareness of health In cocktail dress of consumer awareness related to health, it could be possible that consumer give up to drink Red Bull. Maybe consumers rather drink healthier natural drinks than Red Bull in the future. The market for healthy drinks is getting bigger and more and more people prefer to drink healthy. Aging demographics The aging target demographic could leave brand with less share in future generations. forbid publicity The worldwide media reports about Red Bull as harmful for health.Red Bull has high caffeine content in the drink, which if used in excess can be harmful. Moreover in many countries there are strict rules on the products that contains caffeine. Parents also state that s ome destinys can be suicidal if consumed by their teenagers. For example Red Bull had been banned in Norway for a couple of years because of the high caffeine content. High marketing costs Maturity in true markets makes promotion harder than in the past, including higher marketing cost. Red Bull spends more then one 1,3billion $ in marketing per year.3.4 ObjectivesRed Bull has launched a range of products including Red Bull Cola in 2008 and Red Bull Energy Shots in 2009 to reach more customers. Today Red Bull has annual sales of around 4 billion cans in more than 160 countries. Red Bull has a distinctive marketing strategy. This type aims constantly evolve and develop the brand. The company tries to engage with consumers utilise new and exciting channels of communication. In recent years social media has become a vital marketing tool and its going to be more important in the future. Its increasing popularity, predominantly with young audiences has had a huge impact on modern ma rketing techniques.Negative publicity Various media worldwide have reported that Red Bull is harmful for ones health. The French Health Authority has by deceased one step further by not approving the Red Bull product sale in France, believing it is not in compliance with the countrys health and food regulations. Other media reports have ben targeted towards parents stating the caffeine levels in Red Bull can be dangerous if consumed by children/teenagers, who are exactly the products target audience. Red Bull has gone to the extremes of seeking scientific proof that its product is safe for consumption and released numerous statements to curb the negative attention. http//gives-u-wings.blogspot.com/2012/01/swot-analysis.html 04/10/2014Inability to move forward with the productRed Bull is known for its innovative advertising. The aim of attracting 15 30 year olds is working, but for how long? Combine this with their large investment in extreme sport events the question is what will be their next stop keep on being innovating and attracting.3.5 Target MarketsRed Bull markets to young urban males ranging in age from 15 to 30 years old. These males live in a constantly exciting and adventurous lifestyle. They life on the edge or try and they are usually average build. Red Bull males participate in competitive and extreme sports or any other kind of adventurous and recreational activities. Competitive games in the pic game industry are also gravitating towards the products to keep them alert during tournaments. Red Bull defines the whole of these consumers as Generation Y because they are not only active males but also active students who need the energy to study all night long. Red Bull also have a secondary target market of older consumers in normal ranging from 25 to 45 years old.Whether this may be a business executive finishing an annual project or a transport driver. These male came from all walks of life and financial status. They live in suburban and rural areas and have variant levels of education. They all share physical and mental exertion in common and getting their adrenaline pumping. There is also fairly new category, its called the clubber. The people find out that Red Bull can be used as a very good with alcohol. In my tactile sensation it is almost impossible to find the in force(p) target group, the reason for that is because of the various applications of Red Bull. A typical Red Bull drinker is dynamic and active and most of them are males.4. Positioning The development of any marketing mix depends on emplacement, a process that influences potential customers overall perception of a brand, product line, or a organization general Red Bull represents a new category of drinks, the energy drinks. The company positioned as a premium/high margin brand. The price is much higher than the products from the competitors, its a premium price product. It is a unique functional drink. Promising and delivering benefits that no other drink can offer. Compared to the competitors Red Bull is nearly twice expensive as Monster or Rockstar. The price expresses superiority od Red Bull and further on it proves that there is no substitute. The positioning policy of Red Bull is premium product, premium price and premium profitability.5. Marketing Mix5.1 ProductThe normal Red Bull is served in 8 ounces aluminum can. But now their alsooffer different sizes and flavours. The can has a special form compared to a normal can, its thinner and longer (everybody knows the form). The package design resembles a silver and dirty racing flag with two bulls facing each other in the center while the Red Bull title treatment sits beneath. Red Bull used the new can as an innovation for new and attractive packaging. The can is different and unique from other brands in the market. Red Bull is made to improve performance, concentration, reaction speed and vigilance. It contains taurine, glucuronolactone, naturally occurring antiox idants and carbohydrates respectively, that help to detoxify the body. The beverage also helps to revitalize the body through the use of caffeine and B-group vitamins which help to boost energy levels and metabolism. Some people assign Red Bull tastes like gummy bear cough syrup, its definitely an acquired taste. The founder Mateschitz says Red Bull isnt a drink, its a way of life.5.2 PricingThe average price for a 8 ounces can is about 1,99 2,25 $ in the United States. In other countries the price could be a bit different. Red Bull has always followed high pricing policy. Its twice expensive compared to the competitors. But they are selling well that Red Bull does not participate in the price-off regularly seen in different flooded beverage industry.5.3 PlaceRed Bull is distributed in almost every supermarket over the world in more than 160 countries. It also has a lot of sponsoring deals with nightclubs, sport clubs, bars and companies. The aim is finding consumers at the righ t time at the right place in the right situation. They focus on areas where an energy boost is needed. Red Bull believes consumption is driven by situations, not sociodemographics. The entry strategy is based on exclusivity, an offspring if Maslows hierarchy if needs. For example when Red Bull came to the U.S. it focused its pre-seeding efforts in New York City, where the brand was already hyped by the large European influence. Red Bull was well stocked in clubs, where it became the drink of choice.5.4 PromotionRed Bull is the biggest brand in the energy drink market. They use an aggressive strategy to promote their products. Their two main tools to promote the Red Bull products are sponsoring and free sampling. Red Bull often gives free drinks to attract new costumers. For example at universities or sport events because there are most of the people from the target group. Red Bull send out their sampling girls and boys to deliver free Red Bull. They drive in the famous Red Bull cars und are using the Red Bull fridges. Red Bull also provides sponsorship for numerous parties, social events and especially sport events where they supply free and discounted Red Bull as a quick energy revitalizer and smooth chaser for alcoholic drinks.6. Conclusions and passThe marketing strategy of Red Bull can be considered as one of the most successful one over the years. The central component in all marketing activities of Red Bull was sponsoring leading athletes of extreme sports and branding refrigerated sales units to complete their marketing strategy. However, in my opinion Red Bull has to change or extend the marketing strategy to compete with other energy drink brands. In the current tart competition market there are a lot of different energy drinks available. Its going to be hard for Red Bull to stay as the first choice energy drink for the costumers. because I think it is time to advertise more in general public to response a bigger target group. They also could use t ools like billboards, banner ads or posters to maximize the contact with costumers. I know they are still doing it, but mostly on sport events. furthermore Red Bull can increase advertises on the Internet. Nowadays most of the people are using the Internet every day and they are spending lots of hours for surfing in the world wide web. Red Bull could create some extreme sport online games and advertise on appropriate websites that are quite familiar with students and business people in different countries. To sum up Red Bull has a lot of opportunities to improve their marketing strategy.10.Bibliography1. Marketing Strategies, Tactic, and TechniquesA Handbook for PractitionersStuant C. RogersISBN 1-56720-411-2 make in 20012. Wikipediahttp//de.wikipedia.org/wiki/Red_Bull04/10/2014http//en.wikipedia.org/wiki/Red_Bull04/10/20143. Red Bull Media Househttp//www.redbullmediahouse.com04/10/20144. Tagesanzeigerhttp//www.tagesanzeiger.ch/wirtschaft/Die_Marketingmaschine_Red_Bull/story/227434 00 04/10/20145. Red Bullhttp//www.redbull.com/us/en04/10/20146. Gives u Wingshttp//gives-u-wings.blogspot.com/2012/01/financial-report.html 04/10/20147. Monster Energyhttp//www.monsterenergy.com04/10/20148. UK Essayshttp//www.ukessays.com/essays/business/analaysing-current-market-strategy-for-red-bull-and-future-strategies-business-essay.php 04/10/20149. Red Bull Marketing Campaignhttp//www.slideshare.net/CreativeDunning/red-bull-marketing-campaign 04/10/201410. Red Bull Situation Analysishttp//www.studymode.com/essays/Red-Bull-Situation-Analysis-820871.html 04/10/201411. Joseph Ramoshttp//joseph-ramos.blogspot.com/2012/09/chapter-1-history-and-mission-statement.html 04/10/201412. Statistahttp//de.statista.com/statistik/daten/studie/257247/umfrage/umsatzentwicklung-von-red.bull/ 04/10/201413. All of the explanations afterwards are from the book MKTGStudent EditionLamb/Hair/McDanielISBN 978-1-285-09186-0Published in 2013