Management Strategies Of Red Bull

Discuss about the Marketing And Management Strategies Of Red Bull.

 

 

The company under research on this is Red bull. It’s sold by an Australian company which was introduced in the year 1987. It has the largest market share in terms of energy drinks in the world having billions of cans being sold worldwide. It was started by an entrepreneur who went by the name Dietrich who was inspired by an existing drink that he found that was being sold in Thailand whereby he took this idea incorporated his own ideologies into it so as it would suit the avid tastes of the westerners who he had an interest in targeting, thus in partnership with Chaleo they founded the what is Red bull. Its slogan was Red bull gives you wings which were before a lawsuit related to the advantages of utilising the drink which was around the period of 2014. It has a different approach to marketing schemes whereby rather than taking the most used route of mass marketing it generated its awareness and attracted clients by virtue of having proprietary sports events such as cliff diving world series, the Red bull air race and the crashed ice  all these act as Red bulls arsenal in terms of commanding crowds and having customers enjoying the drink at such events thereby making it a force to reckon with as of here it breaks apart the norm that the energy drinks organizations have the capability to host and endorse events and also market its accessories properly with no problems Richter  (2012). 

Red bull’s strategy to be amongst the leading organisations is held by the fact that it associates itself with a lifestyle and a way of living in terms of having an adventurous spirit by doing so it puts an aggressive marketing process in play. This is so followed through by having their slogan Red bull gives you wings being a constant message broadcasted to the customers via many streams of communication in a broad integrated manner. Product differentiation is what sets aside Red bull apart from other energy drinks as it is a premium energy drink. The drinks are more expensive as compared to the other drinks in its categories like monster, NOS, Lucozade and Amp. This is because the customers are charged according to the benefits that they get by being able to lead a good functional lifestyle and also increasing physical performance by triggering mental strength Dobkin (2008).  The aspect of competitive advantages falls on these points.

Being the first to bring the energy drink to developed countries- this happened when the founder brought the idea of this by incorporating some ingredients to what they learnt from the drink Krating Daeng. This is vital as it shows it’s the first in west thus has a loyal consumer base as from where it started off from thus having an edge over others by this aspect Dobkin (2008). 

The sweet taste and uniqueness of the energy drink set it apart from others as it sticks to its originality where it is still produced in Bangkok and shipped to the processing plants Richter (2012).  This helps it maintain its authenticity by sticking to its roots of start and not changing the main moving parts.

It is an appealing product that is linked to extreme sports as it is involved in a number of teams that help its brand image as it endorses the teams and their occasions capitalising on the customers of the sports.

Lastly, effective marketing strategy which integrates it to an online TV channel that is used for marketing and also media strategy on how to capture a larger market size and how to expand conditionally. This strategy of having many acquisitions in the media numbers strengthens the brand image as it passes out the relevant marketing messages to the target segment.

Marketing mix

Marketing mix is putting the right produce at the right place and the right time I regard also to a favourable price, thus the four P’s used in the application of having the right mix are;

Product

This is the final product produced by the company that is sold to the consumers. The form can either be intangible or tangible as it may be in the classification of a good or service. In developing the right good the company must be able to know whether that’s what the client wants from the good or service, how will it be utilised, what name it has and what varieties does it entail and if the product has an attractive look. It is the specific features of a product and its benefits. In terms to Red bull its known as having a distinctive product where the taste of the good is not like the rest it stands out and has a functional effect when put in assessment to other soft drinks Doole and Lowe (2008). 

Price

This is the amount that a customer buys the product for.  It is a major factor in planning as it determines an organisation profit and survival. The setting of prices has a big impact on the market as if affects also the sales and demand of the services and the products. According to the Red bull strategies’ it uses a premium pricing plan in which the cost of its products is placed higher than those of its competitors as it targets the consumers who would prefer spending more money to buy a premium product and enjoy its benefits which are reflected by the products renewability as the world’s best-bought energy drink.

Place

It deals with putting the products and services in an attainable position in terms of place, this is useful as it ensures that the products are accessible to potential consumers. the placement of a company comes with the deep understanding of the target market where one tries to allow them inside out so as to discover the most efficient distribution channels and positioning that are in direct link with the market.

The most intriguing part of the Red bulls marketing mix is the promotional aspect as it embraces the activities thus giving it a boost in having a lasting impression on the consumers. Its slogan aspect of wings when translated to show what it actually aspires for is pushing one’s boundaries and helping them achieve their intended goals and dreams. Its aim is to grow consumer reach and increase market share Doole and Lowe (2008).  Most base their approach based on AIDA, awareness that is used to grasp the customers attention, Interest here is to stimulate their minds to want to view and see the product, desire this is creating a want for the product that makes the consumer long for the product and Action this is where a customer purchases a product due to the factors involved in marketing to them.

Marketing strategy is the way whereby a business is given a proper way forward to having an effective promotional skill targeted to improve the organisation's target market. They differ from organisations thus are to be customised to favour an organisations goals and workability so as to be fully functional. The development of the market strategy has some main factors which are setting clear cut goals, a decent research on consumers, and isolation of the market and pushing forward the ideas aimed at having the word out.

Target markets

This is those segments of populations that businesses deem to be of customers where if they implement and put up a branch at the place they shall get a good market for their products without much of a struggle as they have found an appropriate segment. These targets are chosen by looking at a variety of aspects that involve income level, age and geographic location. But all these rely on what products or services are being rendered, as a marketing strategy ought to be able to tackle the first and foremost problems and the areas where it doesn’t cover it can try to put up plots to offer some type of services so as not to leave any stone unturned. In a clarification of target markets, they're discerned through market research and experience not just jumping into a market stream.

Goals

These are very essential as they play a vital role where they ought to consist of distribution and financial mile markers which gauge the success or flop of one’s strategy and helps one know whether they have the right options to put in place. The ideologies and projections should be according to market and clientele, it starts off with checking past behaviours and putting into considerations the added market efforts and promotions that will be brought. In a situation where the strategy fails to reach set targets then one has to alter the plans and invest a bit more so as to set right the direction the company requires.

Research

In organisations carrying out studies and reviews on the market is detrimental as it is the best way a firm gets a good grip on the targets to be set. it helps erase wasted efforts and is used to set right organisations marketing skills so it attains its targets that it has set to help boost a company’s sales and image.

Evaluation and adjustment

The making of marketing strategies does not reach a halt once a company’s goals are set in motion to be achieved but it’s an ongoing process that requires constant critic and working so as to be properly functional. Also, when changing trends cause a slump in gains then the marketing ways can be altered so as to facilitate the change and kerb the slump from continuing to occur. This is something very positive and impactful as it brings about the quotient of the initiatives you produce are relevant to what is occurring as marketing strategies work with people and are always ongoing with them thus cannot be left to carry themselves as they are a constant evolution.

On analysis on Red bull in regards to politics and environment here are the aspects that fall in hand with the macroeconomics theorem.

Political factors

The government stability and instability, the level of corruption going around the country, home market lobbying events and freedom of the press. All this affect Red bull’s ability to function properly as they are external factors that can really cause heavy damage to the organisation. The company tries to avert such problems by trying to play a role in influencing political factors and also rules and regulations through its efforts to improve functionality angle.  Red bull hired a firm known as Podesta and partners to educate on its energy drinks in regards to their advantages and myths set up on it Codita (2011). 

Economic factors

 Macroeconomic factors are a major factor that affects businesses such as Red bull which has a premium segment. Another factor that affects it is the exchange rate between euro and the other monetary equations in other countries as they play straight implications on its revenues.

Technology

Its marketing techniques are referred to as unique and controversial it uses the internet to reach out to its wide consumer base to promote its products. This is a free way to some extent and offers a very large platform where it gets its targeted audience easily and excels from here Kotler and Keller (2012). 

The company serves the normal people but mostly focuses on those who want a boost in their system with a kick in the pumping of adrenaline in their blood thus it mostly targets athletes and those who want to do work that’s strenuous and tiring, and what they want most is something that if they partake would increase their momentum in finishing their task in regards to replenishing their strength back. A company has collaborators but their problem is that they are expensive and at times cannot deliver the companies message as appropriately as the own makers can thus in regards to Red bull it carries out some things with them and others carries out on its own so as to get direct feedback on things to do and what’s working for them also.

Customers often want a brand that understands them and treats them well enough that they feel as part of the team. The consumers want a product that is of high quality and that has an added advantage that offers itself as a better product as compared to its competitors Codita (2011).  The customers are always right as they are still the ones who will come and purchase a product.

Competitors for Red bull

Competitors for the Red bull energy drink range from the monster energy drink which is the second largest leading competitor. It differentiates itself by offering 34 different drink varieties. The other rival is the Rock star energy drink brand which has over 20 varieties and is known for its bright distinct coloured bottles according to the flavour. The context of business is changing drastically as now there are newer ways to market and sell products which are now online. Many companies are fighting to have an upper hand here as now the market is online as more traffic is on the devices thus the companies advertising here get an added advantage over the rest. Thus, more market share is improved by this as it is the broad angle of reaching clientele. The role that collaborators play is to ensure the goods are highly rendered and supplied to outlets and here they also gain an advantage as the organisations collaborating with them help and support them indirectly in managing and promoting them Kotler and Keller (2012).

Conclusion

Unlike many energy drink companies Red bull is a private company by so it avoids the shareholder pressure that occurs for short term profitability’s thus the company’s tactic is now directed towards achieving set goals and dreams for the growth and development of the business. But here we see that when companies do invest in proper marketing and align their goals and targets properly with what they want they can get what the aim for and succeed in them with no problems following them.

References

Kotler & Keller, (2012). Marketing management. Harlow, Pearson Education.

Swartz & Iacobucci, (2010). Handbook of services marketing & management. Thousand Oaks, Calif, Sage

Kazmi, (2007). Marketing management: text and cases. New Delhi, India, Excel Books.

Cant, (2011). Marketing management. Cape Town, South Africa, Juta.

Roberts & Berger, (2009). Direct marketing management. Upper Saddle River, N.J. [u.a.], Prentice Hall.

Codita, (2011). Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe. Wiesbaden, Gabler. 

Richter,  (2012). International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets.

50MINUTES.COM. (n.d.). Marketing mix;master the 4 ps of marketing. [Place of publication not identified], 50minutes Com.

Shankar & Carpenter,  (2012). Handbook of marketing strategy. Cheltenham, UK, Edward Elgar Pub.

Rogers,  (2001). Marketing strategies, tactics, and techniques: a handbook for practitioners. Westport, Conn, Quorum Books.

Paley,  (2006). The manager's guide to competitive marketing strategies. London, Thorogood.

Vass & Vass, (2008). Breakthrough network marketing strategies for the Internet age. New York, iUniverse.

Dobkin,  (2008). Direct marketing strategies. Merion Station, PA, Danielle Adams Pub.

Paley, (2007). The manager's guide to competitive marketing strategies. London, Thorogood.

Sandhusen, (2000). Marketing. Hauppauge, N.Y., Barron's.

Frain, (2009). Introduction to marketing. London, International Thomson Business.

Doole & Lowe, (2008). International marketing strategy: analysis, development and implementation. London, Cengage Learning.

Randazzo, (2014). Developing successful marketing strategies.

Webster, (2011). Industrial marketing strategy. New York, Wiley.