Red bull Essay

release darn is a service subject drunkenness founded by Austrian entrepreneur, Dietrich Mateschitz, in 1984. Containing ingredients much(prenominal) as taurine and caffein, redness darn beverages be specially developed for those who wish to be physically and mentally active voice. The various result variants under passing diddlysquat estimate to enhance performance, concentration and commence metabolism which improves the overall well-being of consumers. personnel casualty damn is currently break in over 162 countries, and holds 65% of the worldwide energy suck up food trade.With a witty slogan blushful prick gives you wings, the waxth is commercialiseed by means of advertize, extreme sports tournament sponsorships, sports team ownerships, athlete attestments, online games and a record label, going cook Records. However, in the fast progressing beverage industry cluttered with many an(prenominal) substitutes and large competitors, rose-cheeked mani pulate strength face issues concerning its lack of point of intersection variability as well as arising health concerns with regards to its higher(prenominal) caffeine content.In order to tackle these issues, we will first conduct a SWOT analysis to monishmine the internal and external environment which rosy-cheeked Bull is operating in. Secondly, we will conduct an in-depth analysis on blood-red Bulls grocery store structure and securesystems to determine if these systems atomic number 18 effective complementing strategy implementation. Lastly, we will provide relevant recommendations to lendress the issues and problems confront by inflammation Bull in its strive expand and grow globally. 2.0 SWOT abbreviation of wild BullStrengths commercialise share leaders with approximately 65% market share in the energy swallows market. stiff reputation curiously backed up by strong client loyalty from Generation Y Strong taper identity since its internalization in 1987 wi th steady growth into a market giant and is flat synonymous with brand and mathematical product excellence. Weakness Small product animal as inflamed Bull markets save 4 branded products (Red Bull efficiency Drink, Red Bull sugar sinless, Red Bull energy breeze and Red Bull Cola), on that pointfore vulnerable to market fluctuations Lack of product innovation thus being left behind when a hail of late-fashioned energy presents eat up been launched in 2004.Opportunities Could diversify retail outlets and dissemination network by means of capitalizing on vending machines as a smart route to increase sales as well as keep up with industry trends. Potential to extend product lines by adding new products, such as new flavours, forms, colours, added ingredients and packages size of its. Marketing their products as functional crapulences so as to capitalize on strong consumer certifiedness of its brand. geographical expansion in the Asia Pacific regions by building u pon developing markets such as India. Threats Imminent little terror of new entrants as the energy drink industry has always been considerably attractive due to its high wampum margin Near zero switching cost for consumers makes it even easier and to a greater extent attractive for new entrants to capture market share Real threat of substitute products which serve the same functional purpose of Red Bull scarce main ingredient of caffeine replaced by electrolytes, which is a healthier choice. Government regulations could pose as a threat to the expansion and sixth sense plans of Red Bull as their products is not barely another flavoured beverage in the market the high caffeine content in the drink has always been a concern to certain interest groups. Recent popularity with radical food and drinks products could eat into Red Bulls market share, especially when Red Bulls market is seen to be in the maturing stage. 3.0 Analysis of Red Bulls Market Structure and Control r emainss3.1 Market Structure3.1.1 The number of players in the Energy Drink Market Red Bull belongs to an oligopoly market structure where the market is dominated by a few large players. The degree of market concentration is relatively high with a large % of it taken up by Red Bull.thither are currently more than 30 types of energy-drink products in the market, with Red Bull occupying the largest market share of approximately 65%. With the number of players in the market, there is therefore certain degree of interdependence between firms and it is necessary for Red Bull to take into account the likely reactions of other firms during strategy planning. 3.1.2 The power point of Product Differentiation in the MarketBeing in an oligopoly market structure, Red Bull drives branded products where advertising and merchandise is an important induce of competition. The different types of energy drinks in the market serve as wet substitutes to Red Bull. Hence, Red Bull presents itself as a premium product, having a unique combination of high quality ingredients (Red Bull, n.d.) which vitalizes body and mind (Red Bull, n.d.). It segments its market differently from its competitors, focusing on performance-oriented individuals who want to have a take a shit, center mind and a fun and active lifestyle. This has resulted in Red Bull pricing its product higher than its competitors.For instance, an 8.4 fl oz. discharge of Red Bull retail for $2.59 whereas a 16 fl oz. thunder mug of Rockstar retails for $1.50, which constitute to about half the wrong per fl oz. as compared to Red Bull. 3.1.3 The Ease of Entry and Exit Into And Out Of the Energy Drink Market There are huge, though not insurmountable, barriers to go in the energy drink market.One prevalent barrier is brand loyalty which Red Bull has built up over the years. This strong brand loyalty has the effect of reducing consumer consideration of alternatives in the marketplace. Also, the high initial capi tal cost associated with research and development prior to formulating energy drinks could deter potential competitors from entering the market. In addition, government policies pertaining to licensing and patents attain the biggest barrier to entry, which acquired immune deficiency syndrome in the dominance Red Bull enjoys today.3.2 Marketing Control SystemIn order to ensure that the companys objectives are achieved, Red Bull markets its energy drink in three ways, namely the media advertising, sports and way out sponsoring as well as sampling. The three market techniques not only increase the brand awareness of Red Bull, but assist the attention in terms of market control. Additionally, Red Bull also performs control techniques in the copying ways. 3.2.1 Intensive Research WorkFirstly, Red Bull conducts on-going research to determine if consumers are satisfied with its product. This includes sampling to its primary scrape market stock(a) people who film energy. Through sa mpling, consumers are able to provide feedback on the product, essentially its taste, packaging and effects. If there is negative feedback received, Red Bull will then look for ways to improve so as to meet consumer pauperisations. 3.2.2 Internal StatisticsSecondly, Red Bull uses statistics such as sales, revenue and market share to assess if its marketing strategies are successful. establish on analysis, a total of 4,204 billion baths of Red Bull were exchange worldwide in 2010, which signifies an increase of 7.6% against 2009 (Red Bull, n.d.). This can be one of the factors indicating that Red Bull is heading in the right direction in marketing its product. 3.2.3 Marketing and Pricing StrategiesThirdly, Red Bull employs advertising strategies that are capable to its primary target market. Hence, at this moment, Red Bull does not need to adjust its strategies to change consumer perception. Nonetheless, if Red Bull has decided to participate new uses for its product, changes ha ve to be made to the advertising strategies to market the new uses.However, irrelevant some companies which adopt pricing strategies that involve adjusting the product prices to meet market changes so as to remain competitive, Red Bull does otherwise. Consumer reviews state that Red Bull is being priced steeper as compared to other energy drinks in the market. Despite that, Red Bull continues to maintain its premium price as it has positioned itself as a premium product. 4.0 Solutions and RecommendationsQ1. Red Bull should construct a market-oriented thrill pedagogy, focusing on customer needs rather than products. A product-centered mission statement is too myopic and does not reflect the undestroyable basic market need. Red Bulls mission statement has to reflect the companys core product, position in the market, distinctive competencies, and lastly, it has to be motivating. Our group proposal of Red Bulls mission statementAs a market leader, Red Bull promotes an active l ifestyle by providing high-quality energy drinks to the global market, empowering our customers to live to their fullest potential and have the courage to achieve their dreams.Q2. Red Bull has managed to identify the best target market. Red Bull has segmented the market as follows Demographic divisionRed Bull is targeting young teenagers to busy working adults. It targets students who often set up from exhaustion, blue collared workers who require strength for their manual jobs, and office professionals, who require concentration to focus in meetings and their respective work.Psychographic segmentationRed Bull targets markets establish on the consumers lifestyles. These consumers include party-goers, sportsmen and gamers. In terms of the personalities of the customers, Red Bull targets those who are able to connect with the brand image of Red Bull, which is to live with gusto and lead a fun, happening and risk-taking lifestyle.Product Red Bull does not have a wide variety of fla vours only original, sugar free, dope and Red Bull shot. The rationale for this is mainly to establish a clear core product. Furthermore, Red Bull is recognized as an energy drink that gives a strong and immediate energy boost to improve performance. In terms of design and packaging, a Red Bull can is elegant and easy to carry which is chromed, making it reflective and hence, it can catch a customers eye easily.As for recommendations, Red Bull could produce an alcoholic beverage of its own, which can be sold over-the-shelf in stores. This would be able to take a leak new product that mixes Red Bull and alcohol. Thus, the non-party-goers can have a taste of an alcoholic Red Bull as well.Promotion One of the most well-known activities that Red Bull has been knotted in for many years is Formula 1. This is a form of above-the-line advertising done by Red Bull to increase consumer awareness of Red Bull.Other than that, Red Bull also engages in Opinion attracter Marketing by having more than 250 agreements with top athletes. This is to attract people who follow and look up to these athletes. Red Bulls strategy of attracting celebrities to endorse their products is very unique because they do not pay the celebrities a exclusive cent. Instead, they approach athletes who support Red Bull wholeheartedly.Q5. Red bulls competitors come in two forms direct and indirect. This is measured by how scraggy these competing products are in relation to Red Bulls. The direct competitors would be those who produce similar utility/functional products, such as Monster, Rockstar and risque G. Indirect competitors would be other drinks that are somewhat similar but do not give the same benefits as Red Bull. Examples would be Pepsi and Coke (caffeinated and soft drinks, but not energy drinks) and 100 sum and H20(sports and soft drinks, but not caffeinated). Clearly indirect competitors are uttermost(a) away in terms of substitutability. Examples are Nescafe (caffeine only), Sprite (soft drink only) and Gatorade (sports drink only).Q6. Currently, we think Red Bulls marketing strategy is already very successful. In relation to how Red Bull reaches out to tired and exhausted people by giving them free samples, we feel there might not be such a strong need to raise more awareness about the product as it has already established itself adequately. Instead, Red Bull can invest in product Research and Development, which might enable Red Bull to introduce more flavours and variety to its current line of products. Red Bull can introduce limited edition flavours, where they can bring in new flavours for a limited period of time, and then see how well the sales of the new flavours turn out to be before deciding to permanently add them to their product line. For example, Red Bull can come out with a product comprising of natural ingredients, such as Siberian/American Ginseng(natural alternatives to caffeine), or add in some vitamins like vitamin C to its existing p roducts, which might capture more of the health-conscious consumers. Furthermore, this might attract Asian consumers who prefer conventional/herbal ingredients.Control measures Analysis of how the market share amongst Asian consumers is affected(look at sales, growth, etc.). Red Bull can also give free samples to consumers, just like how it does for its existing products through its Red Bull vehicles. Along with their free samples, they can conduct surveys on the consumers and ask for their feedback. Also, they can conduct online surveys, as the use of online social media is largely pervasive today.Red Bull can build a prow park comprising of extreme rides. It can aim to break the world records for the highest roller coaster drop or have the windy ride. In this typography park, it can also provide complementary Red Bull drinks to its visitors. This will also be a great route for new flavours to be sampled. Such an extreme theme park would create much buzz all around the world, and people who visit the theme park will definitely share their extreme experiences with their friends. Thus, Red Bull would have come out with another form of its already storied buzz marketing.Control measures By calculating the theme parks return on marketing investment. Building such a theme park has a lot of fixed costs, like the costs of repose and constructions. Hence, it is easy to calculate total cost. Furthermore, sales can also be easily calculated by simply looking the number of tickets sold. Therefore, it would be easy to calculate the theme parks return on marketing investment. Q7. Small Asian Businesses have relatively lower fiscal power as compared to big companies. They face difficulty competing with the big companies precondition similar products. To simply put it, they are the polished fishes regardless of the size of the market.Firstly, like Red bull, they can focus on a small product base and differentiate their products from the competitors. They can identi fy the right market segments and target markets which have been relatively untouched and fit their products to be the most attractive for the consumers in their targeted markets. Like Red Bull, small Asian businesses should create an efficient Marketing Informatics Systems (MIS) and have an appropriate mix of marketing research and intelligence, so that they are constantly able to discover new opportunities and cater to the needs of consumers, and at the same time be aware of their competitors strategies.Also, small Asian businesses can adopt Red Bulls stealth marketing approach. This eliminates costs such as large eggshell advertising costs coming from big billboards or banners for example. Red Bull has also shown through stealth marketing that doing something unorthodox and not save following what everyone else does can also lead to success. Therefore, small Asian businesses can draw inspiration from this and be creative and brave in their marketing strategies. Referenceshtt p//www.redbull.com/cs/Satellite/en_INT/Red-Bull-Energy-Drink/001242937921959 Drawert. http//www.drawert.com/red_bull_1.php