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Red Bull's Marketing Mix

In: Business and Management

Submitted By ameet747
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Introduction

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 markets, it manages to make its products available in more than 100 countries. The brand Red Bull has a reputation of unconventional marketing strategies, first mover in the energy drinks market and a strong player in the overall functional drinks market.

This report is based on Red Bull GmbH’s international development and is divided into four distinct sections. Firstly, the key strategic challenges that it faces internationally in the functional drinks sector would be identified and evaluated. Secondly, the existing product mix of Red Bull and any suitable changes to the same will be analysed and discussed. Third section of the report will talk about Red Bull’s existing market entry mode into non-domestic markets and relevant alternative strategies. The final section will cover the company’s existing approach to product promotion/advertising and distribution and if they can act as a source of competitive advantage in the future. The report will be concluded with a summary of overall assessment of the company.

Section 1: Key strategic challenges for Red Bull in the functional drinks sector

Red Bull is a major player in the functional drinks market which

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Outline:
Red
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 Marketing
Background
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and
Product
Review
 
 In
1982,
Dietrich
Mateschitz,
creator
of
Red
Bull
alongside
Chalerm
Yoovidhya,
saw
 1
 where
Japan
and
Thailand
were
heading
in
the
energy
drink
market
and
decided
they
 wanted
a
piece
of
the
pie.
By
1987,
Austria
proved
to
be
a
difficult
market
for
Red
Bull
to
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in
and
soon
Mateschitz
expanded
into
Hungry
and
the
rest
of
Germany.
After
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across
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with
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lot
of
trial
and
error
Red
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$12
million
in
the
hole.
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than
scrapping
Red
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as
a
loss,
Mateschitz
fired
all
his
staff
and
hired
a
marketing
 firm
to
help
him
target
nightclubs
and
students.
Buzz
marketing
became
the
main
focus
of
 Red
Bull’s
marketing
plan,
and
soon
students
were
pounding
campus
pavement
and
driving
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in
Mini
Coopers
with
a
big
Red
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can
strapped
on
top
with
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samples.
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the
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500
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