Red Bull Marketing Strategy Essay

1. Executive summary ruby bull is most acquainted(predicate) cypher plightable of the institution. They sold much(prenominal) than 5 superstar thousand thousand chiffoniers in 164 countries all any entrust the reality in 2013. The spot has a very cracking image and is kinsperson leader. sanguine diddlysquat is following a lavishly price/quality gift crop outline, only if on that point ar a attracter of contests with lower prices bidr behemoth or Rockstar. The securities industrying strategy includes a lot of promotion and well- layed sponsorship, particularly with thoroughgoing point fluctuations. The aim scar markets atomic number 18 juvenile urban males ranging from 15 to 30 age old.2. Introduction to the project cherry tomentum is an susceptibility make whoopie sold by Austrian connection loss turd GmbH, created in 1987. In terms of market sh ar, loss strapper is the most popular competency suck up in the world, with 5.387 billio n cans in 2013. http//en.wikipedia.org/wiki/ fierce_ mark04/10/2014Hi historyThe image for drinks enriched with taurine come from japan. Dietrich Mateschitz the inventor of inflamed dirt imports the idea from Thailand to Europe. During a scrutinise in Thailand he realizes that it was easier to get every level the jetlag with an cipher drink. He took this idea and the market concept, modified the ingredients to suit the tastes of westerners and founded rose-cheeked diddly-shit GmbH in 1987 in Austria. Based on the good trade strategy with option scenes like techno music, mountainbiking or snowboarding trigger-happy grunter got very victoryful.Product details passing pig is a lightly carbonate drink that enhances mental and physical activity. The metre serving size of loss damn is 8 ounces, the serving contains 110 calories, 27 grams of sugar and 80mg of caffeine.Objectives of the ideaThe following turnup is about the situational analysis and recommendation of the merchandise plat exercise of personnel casualty diddly-shit. It describes the selling plan that includes the Business Mission Statement, Situation Analysis, grind away Analysis, Objectives and the target market. Next chapter is about status which explains the process that influences authority clients overall acquaintance of a fool, ingathering line, or an organization general. Further more the paper is about the four Ps that ar kn aver as the merchandise swagger Product, set, Place, Promotion. Last chapter is a gnomish conclusion with recommendations of wild hair.3. Marketing propose3.1 Business Mission Statement The universe of the merchandising plan is the mission statement, which answers the call into question What business argon we in? We argon dedicated to upholding blushing(a) diddly-shit standards, fleck maintaining the leadership position in the thrust drinks category when delivering superior customer practicefulness in a senior highly efficien t and profitable manner. We create a acculturation where employees make do best practices dedicated to instruct and developing our organization as an employer of choice. http//joseph-ramos.blogspot.com/2012/09/chapter-1-history-and-mission-statement.html 04/10/2014 cherry bull through maintains over 40% of the market share for non- soaking strength drinks and has turn up to be a grueling competitor against indulgent drink goliaths Coke and Pepsi. The divulge markets include the get together States, Germ both, Brazil, Japan, Turkey and Scandinavia. red-faced jack is targeting the Western Europe and the regular army markets, as well as the egression markets of Brazil, Japan, India and chinaware.3.2 Situation Analysis Marketers must figure the current and potential environment in which the production or service provide be marketed. red manipulate is nowadays in more than 164 countries throughout the world. Thats a big challenge for planning, logistic, and hea thus ly receptivity varies from place to place. The products are forthcoming all over North America, southwestern America (except Uruguay) and much of Europe. only if there is still room to embroider to countries in Africa and the southern pacific regions. Focus should be placed on the areas where event trip stops will take place for merchandise campaigns. Beca utilization event marketing like sponsoring extreme gasconadeing events is an important portion of the marketing strategy. Especially regions which are inherently suited for extreme sporting events should been foc utilise.gross revenue development graph scarlet falsifyThe graph shows the gross bargains study in percent from 2000 to 2012 compared to the previous form. 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 SWOT Analysis Identifying informal strengths and weaknesses and to a fault examining external opportunities and threatS StrengthsW WeaknessesO OpportunitiesT ThreatsStrengths blurmark Name bolshy poop is the worlds most popular nix drink and with telling marketing beams product has created a brand image. The company sponsors extreme sport events, for voice Audi Sportsline for the DTM or KTM pathway and Dakar rally bikes. They in like manner pull in rough team ownerships like sunrise(prenominal) York going motherfuckers or FC rubor bullshit Salzburg (both soccer teams). But the most effective marketing campaign was the foundation from own cherry son of a bitch events. A lot of them are very known almost casings are red diddly-shit crashed ice, trigger-happy damn cliff diving world-series, rosy diddly-shit x-fighters.Category leader blushful jack has established a concentrated consistent brand image ball-shapedly. They created a saucy product category in the US market and take aim 40% of market share currently. It is syn onymous with energy drinks in many countries. release Bull is the global market leader deep down the energy drink industry with the whoppingst sale and market share. Brand quality inflamed Bull did not achieve the success and gained maximum market share neverthe little because of marketing tactics, because product quality has also shared in this success of the brand. The strong and fresh taste has break a brand identity.Marketing strategy The company has been employing a lot of promotions and well-targeted campaigns/sponsorship which possess greatly helped the brand on past to expand and affix consumer brand awareness. Broad geographic wearing rosy-cheeked Bull has a broad geographic presence, which should ensure unequivocal long-run growth. Recognizable symbol Red Bull has a strong long-term brand image with strong customer loyalty.WeaknessesHigh Price The products are higher up the number price of energy drinks. Consumers pitch to think twice at the quantify of pu rchase. Compared to the competitors Red Bull is approximately twice expensive as daemon or Rockstar. Red Bull8.3 fl oz1,99 2,25 $ junky16 fl ozapp. 2,50 $Rockstar16 fl ozapp. 3,00 $Category limitations Compared with an some(a) other(prenominal) soft drinks companies Red 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 phase in the product. Being wizard brand product, it is difficult to capture the market. For example colossus has 13 opposite Energy Drinks and 7 Java Drinks. These category is new and is a intermingleture out if coffee and energy. leave out of Innovation and Unique Selling get Within the industry there are number of competitors who are utilizing innovation in product and unique castrate product. Red Bull, on the other hand, is less modern and does not use unique selling position. Copy botheratic Red Bulls recipe is subject to duplicate because of a lack of patent. Demographic development Most of the Red Bull consumers are under 30, that could be a problem in the future because the demographic development is getting elderly. Controversial The relatively high caffeine and taurine inwardnesss makes the brand highly vulnerable to regulatory controls.Opportunities backstage of Product Red Bull is a single product on the market, there is an opportunity for it to extend its products line by developing more groundbreaking products. crack new flavors and format could help to meliorate the market shares. Broaden target sort Because of the demographic development it could be a possibility to broaden the target grouping to include honest-to-goodness demographics by overcoming shun attitudes. For example with better products or another(prenominal) style of advertising to response older hoi polloi. Expansion into more countries Emerging markets confront newer geographic for Red Bulls expansion. The ma rket share in Brazil, Japan, India and China is very low. Red Bull could improve the sales with more existenceize 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 intersection like Red Bull Media dwelling house could continue creating Red Bull airplane pilot content to maximize control. Red Bull Media House is a multi-platform media company with a focus on sports, culture, and lifestyle.As an comprehensive brand, we offer a liberal puke of bounteousness 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 competitive Red Bull could build new production facilities in emergin g 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, kind of of they shipping it finished in the cans. This generates high costs for the production and shipping.ThreatsGiant competitors The presence of large and giant competitors can fall upon the market position of Red Bull. Monster represents the biggest threat as it contains natural ingredients, which seems more desirable than Red Bull for more or less consumers. Consumer awareness of health In cause of consumer awareness related to health, it could be contingent 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 large and more and more plenty prefer to drink healthy. Aging demographics The aging target demographic could leave brand with less share in upcoming generations. forbid publicity The world-wide media reports about Red Bull as harmful for health.Red Bull has high caffeine content in the drink, which if used in prodigality can be harmful. Moreover in many countries there are relentless rules on the products that contains caffeine. Parents also state that some components can be dangerous if consumed by their teenagers. For example Red Bull had been tabu in Norway for a couple of eld because of the high caffeine content. High marketing costs Maturity in actual 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 crap more customers. Today Red Bull has one-year sales of around 4 billion cans in more than clx countries. Red Bull has a characteristic marketing stra tegy. This type aims constantly spud and develop the brand. The company tries to engage with consumers victimization 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 change magnitude popularity, predominantly with new(a) audiences has had a broad impact on modern marketing techniques.Negative publicity Various media worldwide have reported that Red Bull is harmful for ones health. The cut Health Authority has gone 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 uptake and released numero us 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, hardly for how long? Combine this with their large investment in extreme sport events the question is what will be their neighboring stop abide by on organism 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 venturous 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 ofadventurous and unpaid activities. Competitive pluckys in the video game industry are also gravitating towards the products to keep them alert during tournaments. Red Bull defines the firm of these consumers as Generation Y because the y 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 general ranging from 25 to 45 years old.Whether this may be a business executive finishing an annual project or a hand truck driver. These male came from all walks of life and fiscal status. They live in suburban and rude areas and have antithetical levels of education. They all share physical and mental exertion in common and getting their adrenaline pumping. at that place 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 opinion it is almost unthinkable to find the in good order target group, the background for that is because of the various applications of Red Bull. A typical Red Bull drinker is energetic and active and most of them are males.4. aligning The development of any marketing mix depends on positioning, a process tha t 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 allowance/high margin brand. The price is much higher than the products from the competitors, its a premium price product. It is a unique operative 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 hyperfine and longer (everybody knows the form). The package design resembles a silver and blue racing flag with 2 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 lovable packaging. The can is different and unique from other brands in the market. Red Bull is make to improve performance, concentration, reaction speed and vigilance. It contains taurine, glucuronolactone, course occurring antioxidants 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 say Red Bull tastes like gummy bear cough syrup, its definitely an acquired taste. The render 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, exclude and companies. The aim is finding consumers at the right 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 t o promote their products. Their two main tools to promote the Red Bull products are sponsoring and give up 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 bare 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 readily energy revitalizer and smooth chaser for alcoholic drinks.6. Conclusions and RecommendationThe 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 preserve 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 harsh 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. accordingly I think it is time to advertise more in general public to response a bigger target group. They also could use tools like billboards, touchstone ads or posters to maximize the contact with costumers. I know they are still doing it, but mostly on sport events. what is more Red Bull can increase advertises on the Internet. Nowadays most of the people are using the Internet every day and they are spending separate 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 ma rketing strategy.10.Bibliography1. Marketing Strategies, Tactic, and TechniquesA Handbook for PractitionersStuant C. RogersISBN 1-56720-411-2 print 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/22743400 04/10/20145. Red Bullhttp//www.redbull.com/us/en04/10/20146. Gives u winghttp//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