Red Bull Marketing Strategy In Egypt

Red Bull Energy Drink

Question:

Discuss about the Concepts in Business and Management.

A brand is combination of name, fame, term, signature, logo with which the consumers are familiar. A product is turned into a brand when it is able to accomplish consumers’ requirements and expectation. Therefore, perception of the consumers about a product is necessary to take into account in order to consider a product as brand. In this context, Red Bull is considered as the best selling brand of energy drink at the global context. However, this particular assignment is mainly focused in looking into the marketing strategy of Red Bull in the Egyptian market. Hence, this particular marketing essay discusses Red Bull brand briefly with the four pieces of marketing (product, distribution, promotion and price).

Red Bull is a 33 years’ old company, which is expanded throughout the World (White 2012). Red Bull has a growing market in Egypt. It is basically an energy drink product which helps to boost mind, brain and physical performance. The founder of Red Bull energy drink is Dietrich Mateschitz. He initiated this business along with Chaleo Yoovidhya (Energydrink-sg.redbull.com, 2017). Red Bull has started to expand from Australia. Gradually Red Bull acquired the market of energy drink throughout 171 countries (White 2012). In the last year 2016, Red Bull has made 6.3 billion sales (Ahmad et al. 2016). In the same year, world widely 6.0662 billion cans of Red Bull are consumed (Ahmad et al. 2016). At the present, the Red Bull company has more than 11,865 numbers of employees across the World (Ahmad et al. 2016). The tagline of the company is “Red Bull gives you wings” (White 2012). This tagline conveys a clear message for the consumers that Red Bull is a highest level of energy drink in terms of the highest level of performance. Red Bull targets sportsmen, athletes, students, youngsters and workaholic people around the world. Red Bull has been started to be consumed by the labors and drivers in the Thai. Gradually, sportsmen throughout the World have become obsessed in consuming Red Bull energy drink. The most favorable markets of Red Bull are Chile, Scandinavia, Poland, Netherlands and South Africa (White 2012). At the present Red Bull concentrated on which countries in order to increase their market share among them Egypt is one of predominant countries. Egypt is one of the largest populated countries in the Africa and the Middle East. In addition, it is beside of river Nile through which it is well connected with Africa, Arab and Asia. Hence, in order to strengthen the distributive channel of Red Bull, Egypt is considered one of the premium hubs. In 2006, Red Bull entered into the market in Egypt (Racela and Racela 2015).

Figure: Worldwide Sale Growth of Red Bull

(Source: Visram and Hashem 2016)

Red Bull energy drink is founded by the joint collaboration by Dietrich Mateschitz and Chaleo Yoovidhya (Schlegelmilch 2016). However, Krating Daeng is the main innovator of Red Bull product (Schlegelmilch 2016). With his innovation, Red Bull has been developed as a non-carbonated energy drink. This innovation first took place at Thailand and became successful in securing a large percentage of market shares. With which ingredients Red Bull is made are - Caffeine, Taurine, B-Group Vitamins, and Sugars (Schlegelmilch 2016). Caffeine is excellent ingredient to stimulate human body and mind since the very primitive of ages. On the other hand, Taurine contains amino acid, which is highly effective to stay present in the daily diet of the human beings. Taurine has a major contribution in a various kind of biological processes. Red Bull energy drink contains B group of vitamin, which is highly effective in order to keep human bodies in excellent running condition like a well-oiled machine. Vitamin B group is  considered in turning food into fuel. That is why in orders to energize the human being; the B group of Vitamin has no exception. The important specialty of Red Bull energy drink is that it is originated byte real sugars. Hence, this energy drink is also a calorie drink. A Red Bull can of 16-ounce hold 220 calorie (Schlegelmilch 2016). Red Bull has range product segmentation. Among them the sugar free Red Bull and zero calorie Red Bull are mainly preferred (Schlegelmilch 2016). It is necessary to note hereby that Red Bull cans are completely biodegradable.

Red Bull’s Marketing Strategy in Egypt

Distribution channel is highly responsible for the success of Red Bull. In order to ensure adequate availability of product in the market, distributive channel plays a major role. In order to lead distributive channel, Red Bull considers Pull Strategy (Thomas et al. 2016). Red Bull does not depend on intermediaries in order to develop distribution process. As per the principles of Pull strategy, Red Bull considers a wide range of advertising, promotion, marketing campaign in order to communicate with the target customers.

Figure: Pull Strategy in Terms of Distributive Channel

(Source: Allender and Richards 2012)

In terms of effective distributive channel, Red Bull follows direct channel. Hence, products of Red Bull directly distributed to the customers from the factories (Thomas et al. 2016). Hence, customers of Red Bull can directly communicate with the Red Bull company executives. Thus, Red Bull Company can know the expectation of the consumers in the most possible way. It is extremely helpful in terms of product innovation. Therefore, transportation system matters a lot to the Red bull company in fostering their distributive channel. Through the delta of Nile, Egypt is easy accessible to the major states of Africa, Arabia and Asia. Hence, for the Red Bull company taking a large percentage of market shares in Egypt will be highly effective in terms of fulfilling Red Bull business mission, vision and objectives.

Red Bull sponsors various kinds of sports events in terms of product promotion (Kim et al. 2012). It considers event marketing and sports marketing in order to draw the attention of the young age population (Kim et al. 2012). Moreover, Red Bull considers television media widely in terms of product promotion. In order to develop their brand image the Red Bull company is too focused in hiring the high profile celebrity as brand ambassador. This promotional strategy is extremely effective in order to promote the sale growth of Red Bull globally. On the other hand, Red Bull is too connected with their consumers through social networking channel (Wilson and Grant 2013). Red Bull considers to host a wide range of advertisement on the social networking sites. It helps Red Bull in approaching to the maximum number of population. The connection of Red Bull with sports and the most contemporary celebrities helps Red Bull to increase its level of popularity. Social media marketing is one of the core success factors of Red Bull business in terms of developing sales growth (Wilson and Grant 2013). Content marketing is also necessary to take into account in terms of Red Bull product promotion (Freeman et al. 2014).

The business of energy drink is high competitive in all parts of the world. In terms of winning competitive advantage, the pricing strategy of Red Bull plays a premium role. The Red Bull believes in cost effectiveness in terms of production purpose (Kim et al. 2012). Cost effective product manufacturing technique helps the Red Bull to keep their product price as the most reasonable and affordable for the larger population group in the world. Red Bull targets the customers within the age group 16 to 30 (Kim et al. 2012). Hence, product price of Red Bull needs to support pocket money of the youngsters. The minimum pricing strategy helps Red Bull in order to compete with the beverage industry like Coca Cola and Pepsi at international level (Kim et al. 2012).

Thus, it concludes that Red Bull marketing strategy is extremely effective in terms of fulfilling customers’ requirements. The Red bull company is focused in maintaining equal balance between supply and demand. In this context, the Red Bull company considers Pull Strategy and direct selling. In order to develop the brand image, Red Bull hooks with celebrity and various kinds of sports events. The high engagement of Red Bull with social networking sites is fruitful in order to draw the attention of the larger population of the world. The most affordable price range of Red bull products is effective in terms of winning the highest level of competitive advantage in the global market.

Reference list

Ahmad, N.S., Musa, R. and Harun, M.H.M., 2016. The impact of social media content marketing (SMCM) towards brand health. Procedia Economics and Finance, 37, pp.331-336.

Allender, W.J. and Richards, T.J., 2012. Brand loyalty and price promotion strategies: an empirical analysis. Journal of Retailing, 88(3), pp.323-342.

Energydrink-sg.redbull.com. 2017. Red Bull Energy Drink - Official Website of all products :: Energy Drink :: Red Bull Singapore. [online] Available at: https://energydrink-sg.redbull.com/ [Accessed 21 Dec. 2017].

Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T. and King, L., 2014. Digital junk: food and beverage marketing on Facebook. American journal of public health, 104(12), pp.e56-e64.

Kim, S.H., Fowler, J.W., Shunk, D.L. and Pfund, M.E., 2012. Improving the push–pull strategy in a serial supply chain by a hybrid push–pull control with multiple pulling points. International Journal of Production Research, 50(19), pp.5651-5668.

Racela, O.C. and Racela, O.C., 2015. Bangkok beer & beverages: in pursuit of growth. Emerald Emerging Markets Case Studies, 5(2), pp.1-10.

Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer International Publishing.

Thomas, L.J., Burchill, A., Rogers, D.J., Guest, M. and Jenkins, N., 2016. Assessing distribution network hosting capacity with the addition of soft open points.

Visram, S. and Hashem, K., 2016. Energy drinks: what's the evidence. Briefing Paper. London: Food Research Collaboration.

White, C.L., 2012. Brands and national image: An exploration of inverse country-of-origin effect. Place Branding and Public Diplomacy, 8(2), pp.110-118.

Wilson, J.A. and Grant, J., 2013. Islamic marketing–a challenger to the classical marketing canon?. Journal of Islamic Marketing, 4(1), pp.7-21.