Analysis Of Red Bull Essay.

Analyze the overall and key marketing activities undertaken by Red Bull.

The report is prepared to analyze the overall and key marketing activities undertaken by Red Bull. Red Bull is an Austrian company selling energy drink by Red bull GmbH that was established in year 1987. Red Bull captures 70% of market share for functional beverages and energy drinks. Role of marketing mix for informing their marketing strategy is also demonstrated in the report. The promotion of brand by this energy drink company is done using segmentation, positioning and targeting (Ducarroz et al. 2016). For planning the event of marketing promotion of company, considerations about risk management is taken into account. Report also demonstrate how the outdoor events should be organized for brand promotion of Red Bull. Risk management considerations while planning outdoor events have also been demonstrated.

Definition and classification of special events:

The special events organized by Red Bull are in correspondence to theirprogressive marketing strategy, distinctive approach to marketing and exciting communication channels. Moreover, Red Bull was sold in Austria that is the home market for drink. Various events organized by company can be classified into pop culture events, sport events, youth culture events and dance events.All such marketing strategies are regarded as revolutionary approach that helps organization in organization and creating extreme events around world. Red Bull is regarded to have authentic ownership because of creating, inventing and branding events. Events of company are all social that is a skill with increasing importance. Visibility of brand is enhanced and brand credibility is facilitated by having organic strengthening of social media (Adamopoulos and Todri 2015). Core elements of Red Bull campaigns are social and digital media that helps in providing relevant and direct communication platforms with target audiences. A pop culture event was also established by company that was help in different countries and thereby increasing the awareness of brand at global level. In addition this, some new events are also organized that helps in reinforcing brand elements for show casing their brand. Sports events that are developed by company incorporate kite boarding, BMX biking, skydiving, free and extreme snowboarding (Farris et al. 2017).

Marketing activities of Red Bull and role events in overall marketing strategy:

The marketing approach of Red Bull remains unsurpassed in their ability to innovate, grow and adapt in content world. Marketing strategy has not only focused on energy drink promotion but it has helped in creation of brand embodying a distinct audience and lifestyle. Some marketing strategies used by Red Bull are progressive and distinctive approach that is aimed at constantly developing the brand. Such approach helps company in getting engaged with their target customers through exciting and new channels of communication. Imagery in events such as sports events helps company in satisfying psychological needs of customers for vitalizing their body and mind (Kotler 2015). Youth culture and sports events organized by company helps in building a level of identification and build a strong relationship with customers. The core brand elements or building brand equity are meaningfulness, memorability, adaptability, likeability, protectable and transferability. Factors that are integral to market strategy of Red Bull is social media and digital campaigns. Furthermore, the main focus of Red Bull is on developing inventive below the line promotions for reaching their targeted customer groups. Creating genuine relationship with athletes is the key aspect of promotion strategy of Red Bull (Galan et al. 2015). Several innovative ways are adopted by organization to reach their targeted customers.

Definition and Classification of Special Events

Red bull football- Red Bull football activity is a sport marketing activity that focuses on sports promotion. Marketing initiatives undertaken by company falls into two categories that is sponsoring of adventure events and sports and sponsoring teams through outright ownership (Lemon and Verhoef 2016). Teams in football is sponsored by Red bull

Red bull motor racing- Red Bull bought the jaguar racing team when the team was set up for sale in year 2004. The racing team was bought by the company and was re branded leading to a three championship of constructor. Some other racing teams such as Formula one racing team and Scuderia Toro Rosso are also owned by company.

It is indicated by such market activities that the company was able to bring social media effectively for marketing their event and it depicts demonstration of a shift to a more powerful channels of marketing from traditional ways. Red Bull was able to establish connect with the youth by taking the ownership of events.  

Role of marketing mix:

Every organization make uses of a distinctive marketing mix for meeting the needs of their targeted customers using 4Ps.

Product-Red Bull develops high energy products with the specific product formula inclusion. Development of such products is the main concentration of product development process and makes use of active ingredients such as taurine, caffeine, amino acids and vitamin. High priority is placed on customer health aspects. Portfolio of products of Red Bull involves Red Bull sugar free, Red bull energy drink, Red Bull simply cola, Red Bull zero calories and editions of Red Bull such as blue, tropical and orange editions. The products offered by Red Bull are produced differently and come with different varieties that offer wide variety choice to customers.  

Price-Pricing strategy used by Red Bull is premium pricing and the price are charged for the perception of consumers at psychological level and because of this, drinks of Red bull is considered as most expensive. Several patterns of geographical and promotional strategies are integrated in pricing of Red Bull. The fact that premium price can be sustained by great targeted brand compared to mass market brand made Red Bull to take its pricing strategy to extreme and charging three to six times more than brand Coca Cola (Teigeler and Hahne 2014). Red Bull was in the first category for being number one choice for customers and the customers will always be demanding such drink. People prefer buying such drinks in bulk rather than buying single. Nevertheless, the costing structure of Red Bull is most expensive compared to its competitors such as Cloud9, Rockstar, Monster and Gatorade.

Marketing Activities of Red Bull and Role Events in Overall Marketing Strategy

Promotion-Marketing communication strategy that is used by Red bull is based on five columns such as opinion leader marketing, above the line strategy, sport marketing, event marketing, opinion leader marketing and sampling. The product of Red Bull is promoted by sponsoring teams and sport events such as motocross, BMX, mountain biking, formula 1, Red Bull cape fear, Red Bull battle ground. Using such platforms enable company to communicate with the sports persona and youth. Such promotional activities helps customer in recalling their brand whenever they hear and see the energy drink. This would help increasing the customer base of product (Kotler 2015).

Place-Place is concerned with provision and distribution of goods and services and the distribution policy of Red Bull involves all the planned measures for distribution and product provision. Since beginning, strategy of Red Bull was place their image in mind of customers as premium brand of beverage compared to its competitors (Galan et al. 2015). Moreover, the placing strategy of Red bull is to seed the happening place such as clubs, shops, bars and stores. Red Bull is available to customers at their convenient locations such as retail outlet, supermarket chain, casinos, bar, night clubs and convenience store. Selling of the product comes with different strategy in different place. At convenience stores and supermarket, product is placed along with other competitive products that give customers a choice to select from range of products (Farris et al. 2017). Selling of product at night clubs and bars enables people mixing drink with alcoholic beverages. However, the target market is different when the product is sold in different outlets.

Brand promotion of Red Bull:

• Segmentation-The outdoor events organized by Red Bull should be segmented into demographic, geographic, psychographic and behavioral. Using outdoor events by segmenting on geographical coverage should encourage customers to find and know more about products. On other hand, using demographic segmentation would help company to capture the attention of customers that are increasingly knowledgeable. Psychographic segmentation criteria would help organization to target their products in categorization of social class and lifestyles of customers. On other hand, behavioral segmentation should include criteria such as personality, status of users and loyalty degree. Usual methods of marketing should be avoided by company and outdoor events should be framed in such a way that it helps in identification of different segments of meaningful customers that would help in adding value to company as a whole (Farris et al.2017). Now a days, customers are seeking innovative techniques for marketing of products by company as their expectations are higher than ever.
• Targeting and positioning- Outdoor events organized by Red Bull involves organizing sport events that should be in particular targeted to athletes, pilots and famous riders. Such events should be intended to create brand value of company. The target audience in case of category of energy drink is millennial customers and position strategy selection is considered critical for success of long-term. Strategy used for brand positioning helps in creating competitive advantage for organizations. Outdoor events organized by organization should be targeted to such audiences that have existing knowledge of core products of Red bull along with targeting some new customers as well (Kotabe and Helsen 2014). Such events should be created in a way that helps in attracting customers who have not tried products of Red bull. Drinks of Red bull should be tried by customers that have excelled features of adding value.

Risk management considerations:

Considerations of managing risk relating to organization of outdoor events by Red Bull will help in mitigation of risks. There are several uncertainties related to event organization that can instantly result in adverse impact on reputation, property and people. . Recognition of risk management is done in several degrees and is regarded as key component of responsibilities that is associated with outdoor events (Lemon and Verhoef 2016).

• Risk related to financial challenges-Such challenges relating to financial aspect might arises due to unforeseen circumstances. Financial liabilities of organization also acts as hindrance in organizing outdoor events
• Risk related to hampering reputation of organization-If all the situations before and after events are nit handled properly, this can cause damage to organization’s reputation. Moreover, existence of risks relating to legal issues might lead to potential loss for business.
• Risk of volunteer and employees- There exist certainty that persons volunteering events might become injured and thereby leading to damaging reputation of products.
• Risk related to event personnel’s security-Organization of risk can have risk related to security of personnel’s (Kotabe and Helsen 2014). Therefore, in order to ensure that there are no several risks security staffs should be assigned to ensure professional staffs security.

Conclusion:

The report is prepared to identify and classify various events organized by Red Bull for attracting its target market and make them well acquainted with their product lines. Analysis of marketing mix as a part of their marketing strategy depicts that Red bull employs a premium pricing strategy for selling their products. Moreover, promotion of product is done by using appropriate promotional techniques. The outdoor events created and organized by Red bull should be intended to target to customers that have not previously used the product line of company. Segmentation should be done in such a way that it helps in capturing major share of market. However, organizing events is associated with several risks that should be mitigated by appropriate formulation of risk management strategies. Therefore, Red Bull should develop their outdoor events by considering all relevant factors.

References list:

Adamopoulos, P. and Todri, V., 2015, August. The effectiveness of marketing strategies in social media: Evidence from promotional events. In Proceedings of the 21th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining (pp. 1641-1650). ACM.

Ducarroz, C., Yang, S. and Greenleaf, E.A., 2016. Understanding the Impact of In-Process Promotional Messages: An Application to Online Auctions. Journal of Marketing, 80(2), pp.80-100.

Farris, P.W., Shames, E.R., Johnson, R.R. and Mitchell, J., 2017. Red Bull (Abridged). Darden Business Publishing Cases, pp.1-8.

Galan Ladero, M.M., Galera Casquet, C. and Singh, J., 2015. Understanding factors influencing consumer attitudes toward cause?related marketing. International Journal of Nonprofit and Voluntary Sector Marketing, 20(1), pp.52-70.

Kotabe, M. and Helsen, K., 2014. Global marketing management.

Kotler, P., 2015. Framework for marketing management. Pearson Education India.

Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), pp.69-96.

Teigeler, J. and Hahne, A.K., 2014. Market Analysis of Red Bull based on the countries Germany, Switzerland and Austria