This website uses cookies to ensure you have the best experience. Learn more

Red Bull's Marketing Mix Essay

4994 words - 20 pages


Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it has since then entered and established a foothold in various key markets like United States, Germany and United Kingdom. Through its well developed network of local subsidiaries in these and other key ...view middle of the document...

The market for functional drinks is dominated by both specialized manufacturers like Taisho Pharmaceuticals and Extreme Beverages, as well as large beverage companies like Pepsi, Coca Cola etc. Red Bull’s market leader position in the functional drinks market and, more specifically in energy drinks segment is being constantly challenged by new innovative brands. In order to not only survive but maintain its leadership position, it must have a clear focus for international competitiveness.

Red Bull’s International Competitive Focus (Porter’s Prescription for International Competitiveness)

According to Porter’s prescription (see Appendix 1), first consideration should be given to the most demanding customers. Perhaps the most common reason to expand globally is the recognition of opportunity existing in the foreign markets (Jeannet & Hennessey, 2004, p.253). Originating from Austria, Red Bull needed to expand due to the limited size of the Austrian market. Despite initial hiccups in the domestic market and loss of market share at the hands of ‘me too’ competitors in Germany, Red Bull has now a got stronghold in the markets like United States, United Kingdom & Germany where the demand for functional drinks is largely driven by the modern hectic lifestyle and thus, the concept of energy drinks is established and accepted by the consumer. The persistence, perseverance and unconventional approach to marketing displayed by the company’s leadership ensured the success of its global expansion strategies. The company’s innovative marketing strategies have been developed keeping in mind the nature of the product which has a niche market and its target consumers who are young urban professionals, people aged between 16 & 29, college and university students. Finding the right location is an important consideration, hence the company has set up a network of local subsidiaries in certain key markets with great potential in distribution and efficient logistics.

Factors in international markets as a determinant of competitiveness

It is very important to analyse the marketing environment from the company’s perspective in order to assess the risk factors like threat of existing and new competitors, political and economic environment of the country, commercial and financial risks. It is imperative for the company to understand its target customer and its need as well. All these factors act as a determinant of the overall operations of the company. A good way of analyzing these factors is through the ‘12C Framework’ (see Appendix 2) which enables the combined analysis of factors operating at both macro and micro level.

1. Country

The screening process of gathering relevant information on each country and filtering out the less desirable countries is usually the starting point of global marketing opportunities assessment (Jeannet & Hennessey, 2004, p.139). This screening process is enabled through study of basic country information and...

Other Papers Like Red Bull's Marketing Mix

Redbull's Marketing Technique Essay

331 words - 2 pages Red Bull incorporates an extreme marketing mix to create an adventurous image for their consumers. Red Bull’s unique selling position is the ability to bring out the emotions associated with speed, adventure, daring, and power with promotion and aggressive sponsorships in extreme sports like moto-cross, enduro-cross, downhill mountain biking, paragliding, sky-diving etcetera using social media, and heavy advertising. This helped the company to

Sports Marketing Essay

1357 words - 6 pages marketing activities that consumers can actually participate in; this can result in stronger, measurable marketing effectiveness. Sports should therefore be part of the mainstream marketing mix, especially for aspirational brands that are still seeking their audience. Marketers are recognizing this. Global spending on sports sponsorships is rising 11 percent a year, to about $32 billion in 2009. The 2006 World Cup in Germany charged $55 million

Отправить «подарок-сюрприз» своим друзьям

690 words - 3 pages sports marketing using the Infiniti Red Bull Racing F1 team and World Champion Sebastian Vettel. The elements of the marketing mix should be integrated. For example, Infiniti’s luxury cars are sold in state-of-the-art Infiniti Centres that complement the premium quality of the vehicles. Having the right marketing mix enables an organisation to achieve its business objectives. Infiniti’s business objectives include increasing brand awareness

What Roles Does a Marketer Do

586 words - 3 pages differences are a factor, communication could be an issue (Brian Hill, “What Are Some Challenges That Firms Face for International Marketing?”). The key principles of marketing are known as “The Four P’s” also the “Marketing Mix” it’s a classification of the basic principles of marketing know throughout the world used by many companies and agencies. The first “P” is product, wether the product be a good like selling a bottle of water or be it a service

Operations and Marketing Working Together

927 words - 4 pages needs and tries to fulfill those needs by standardization where operations make identical products. Another approach is asking operations to design customized products for specific market segments. Planning coordination between marketing and operations is a key component of success, as the company has to be able to supply the needs of a specific market in a given period of time. The example of energizer drink Red Bull illustrates the concept. The

Marketing Plan

2352 words - 10 pages MARKETING PLAN FOR BIG RED By Name Course Professor Institution City/State Date Marketing plan for Big Red I. Background Big Red a small soft drink company in the United States. It started in 1937 as a manufacturer of cream soda with almond used as flavour. Big Red is popular in Southern United States for its unique taste and flavour. The company uses carbonated water, sugar, caffeine and natural flavourings in the

Andre Restaurant

5105 words - 21 pages best fit to your client’s marketing mix, resources, capabilities, image etc. * Who is the customer (demographics & psychographics) * What the customer needs (are the benefits sought, the importance of each) * Where the customer expects to find product (channels used to buy product or service currently, importance of each) * When the customer buys (frequency of the purchases) Andre Ristorante Consumer Profile

Introduction of Adidas

2228 words - 9 pages not seem like a lot, within those product lines are an extensive product mix, where products come in different sizes, colors and features (differentiated between female and male). For example, under apparel, there are both male and female clothing (jackets, shirts, pants) and within that the products come in many different colors and sizes. Source: Source: Marketing Mix For most organizations the marketing function is

Market Assessment Seminar

978 words - 4 pages of the marketing mix Consistent with the firm’s overall direction , goals and strategies Includes the development of strategic alliances 17 1-13 Track progress, control plan, implementation Comparing actual vs projections of the plan Making changes as needed Mechanisms and methods – Sales forecasts – Budgets – Schedules 18 The Marketing Mix 19 Product – Can be more than just the tangible good or an intangible service

Promotional and Legel

1157 words - 5 pages Promotional & Legal Task 1: Apple & Sony Purpose of the Promotion Mix The purpose and objectives of the promotion mix. Apple and Sony’s purpose of using the promotion mix is to blend different methods and tools of communication you use in presenting your company, products or services to target customers. Effective promotion is a key component of the marketing mix, as it is the element that helps you attract customers, persuade


2221 words - 9 pages concerned with customer satisfaction. The marketing concept relies upon marketing research to define market segments, their size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix. An organization that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer needs. The

Related Essays

Redbull Marketing Essay

1003 words - 5 pages response to stimulus. Red Bull's consumers are aroused by their want to feel the rush and excitement that is associated with the brand through its effective use of brand personality. Red Bull has also been able to arouse and activate the consumer decision making process through the use of it's seemingly unconventional advertisements. Red Bull makes use of increasingly audacious marketing tactics in order to arouse its consumers want for its

Why Is Red Bull One Of The Most Successful Energy Drinks In The World?

3069 words - 13 pages is desperately needed to overcome a challenge. (Pearson Case Study 4. 2006. p.69). Red Bull strategically used “buzz marketing” and word of mouth to create a favourable brand image (A look at a key feature of Red Bull's business. n.d). The company did this by targeting the “hot spots” of the target market, that is the trendy shopping centers, sports locations, nightclubs and shops where the young, active and hip urban adults are likely to be

Giving Wings To The Red Bull Market

3195 words - 13 pages of their product on human’s health. This would also help target older generations. Additionally, it could sponsor or organize new events in countries where the energy drinks industry is promising. Issues in the Case Red Bull was an energy drink pioneer that started its business in Austria in 1987. Since then, it has remained as one of the leaders in the market. With its famous slogan “Red Bull gives you wings”, it has created a marketing

Marketing Mix Elements Essay

1733 words - 7 pages Starbucks Marketing Mix Paper Aiza Ashley Starbucks Marketing Mix Paper A good marketing plan must possess a strong marketing mix strategy. Organization uses marketing mix strategy modeling to estimate causal relationships and measure how marketing activity affects outcomes. The Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion