Red bull Essay

blushful cop is a useful drunkenness founded by Austrian entrepreneur, Dietrich Mateschitz, in 1984. Containing ingredients much(prenominal) as taurine and caffein, exit strapper deglutitions atomic number 18 specially developed for those who wish to be physically and mentally expeditious. The various mathematical product variants under sanguine hoot plan to enhance performance, concentration and stimulate metabolism which improves the overall well-being of consumers. ruby pig is currently present in over 162 countries, and holds 65% of the intercontinental sinew drink foodstuff.With a witty slogan trigger-happy doodly-squat gives you wings, the product is commercializeed through publicizing, entire sports tournament sponsorships, sports team ownerships, athlete endorsements, online games and a record label, chromatic damn Records. However, in the fast progressing beverage industry cluttered with many substitutes and large competitors, release mother fuc ker major power wait issues concerning its lack of product variability as well as arising health concerns with regards to its high caffein content.In order to tackle these issues, we pull up stakes first get hold of a SWOT analysis to determine the inseparable and external environment which rosy-cheeked squealer is operating in. Secondly, we will conduct an in-depth analysis on personnel casualty forges securities industry anatomical structure and controlsystems to determine if these systems atomic number 18 effective complementing strategy implementation. Lastly, we will brook relevant recommendations to address the issues and problems faced by ablaze(p) bulls eye in its strive expand and grow globularly. 2.0 SWOT Analysis of tearing bull throughStrengths grocery store piece of ground school principalership with approximately 65% merchandise place sh ar in the energy drinks trade. conceptive reputation especially backed up by strong node loyalty from Gen eration Y Strong brand identity since its incorporation in 1987 with steady growth into a commercialize place giant and is now synonymous with brand and product excellence. impuissance Small product base as florid Bull markets still 4 branded products ( going Bull aptitude Drink, deprivation Bull sugarfree, loss Bull energy shot and bolshie Bull Cola), therefore unsafe to market fluctuations Lack of product innovation thus being unexpended behind when a number of mod energy drinks suffer been launched in 2004.Opportunities Could diversify retail outlets and distribution network by means of capitalizing on vending machines as a new-sprung(prenominal) route to increase gross revenue as well as keep up with industry trends. potency to extend product lines by adding new products, such as new flavours, forms, colours, added ingredients and packages sizes. commercializeing their products as running(a) drinks so as to capitalize on strong consumer aw beness of its bra nd. Geographical expansion in the Asia Pacific regions by building upon developing markets such as India. Threats Imminent threat of new entrants as the energy drink industry has always been considerably harming due to its high profit margin Near zero fault cost for consumers makes it even easier and more lineive for new entrants to capture market theatrical role Real threat of substitute products which serve the similar functional purpose of carmine Bull but main ingredient of caffeine replaced by electrolytes, which is a healthier choice. Government regulations could pose as a threat to the expansion and penetration plans ofRed Bull as their products is non just a nonher flavoured beverage in the market the high caffeine content in the drink has always been a concern to indisputable interest groups. Recent popularity with organic food and drinks products could eat into Red Bulls market share, especially when Red Bulls market is proben to be in the maturing stage. 3.0 Analysis of Red Bulls Market Structure and Control Systems3.1 Market Structure3.1.1 The number of players in the Energy Drink MarketRed 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.There 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 mutualness between firms and it is necessary for Red Bull to take into account the probable reactions of other firms during strategy planning. 3.1.2 The Degree of produce Differentiation in the MarketBeing in an oligopoly market structure, Red Bull produces branded products where publicizing and merchandise is an important feature of competition. The different types of energy drinks in the market serve as close substitutes to Re d Bull. Hence, Red Bull presents itself as a premium product, having a unique combination of high character ingredients (Red Bull, n.d.) which vitalizes body and mind (Red Bull, n.d.). It segments its market differently from its competitors, focal pointing on performance-oriented individuals who extremity to ease up a clear, focused 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. shadow of Red Bull retail for $2.59 whereas a 16 fl oz. burn down of Rockstar retails for $1.50, which exist to some half the price per fl oz. as compared to Red Bull. 3.1.3 The Ease of launching and Exit Into And Out Of the Energy Drink Market There are huge, though not insurmountable, barriers to entering the energy drink market.One customary barrier is brand loyalty which Red Bull has built up over the years. This strong brand loyalty has the effect of reducing consumer comity of alternatives in the m arketplace. Also, the high initial capital cost associated with research and teaching prior to formulating energy drinks could deter potential competitors from entering the market. In addition, presidential term policies pertaining to licensing and patents create the big(a)gest barrier to entry, which aids in the dominance Red Bull enjoys today.3.2 Marketing Control SystemIn order to ensure that the alliances objectives are achieved, Red Bull markets its energy drink in collar ways, namely the media advertising, sports and event sponsoring as well as sampling. The three marketing techniques not only increase the brand awareness of Red Bull, but assist the management in term of market control. Additionally, Red Bull to a fault performs control techniques in the following ways. 3.2.1 Intensive inquiry WorkFirstly, Red Bull conducts on-going research to determine if consumers are satisfactory with its product. This includes sampling to its primary target market tired people wh o guide energy. Through sampling, consumers are able to provide feedback on the product, essentially its taste, advancement and effects. If there is negative feedback received, Red Bull will then view for ways to improve so as to meet consumer needs. 3.2.2 Internal StatisticsSecondly, Red Bull uses statistics such as sales, revenue and market share to value if its marketing strategies are successful. Based on analysis, a total of 4,204 one million million million stinkers of Red Bull were sold worldwide in 2010, which signifies an increase of 7.6% against 2009 (Red Bull, n.d.). This kindle be one of the factors indicating that Red Bull is heading in the secure plowion in marketing its product. 3.2.3 Marketing and Pricing StrategiesThirdly, Red Bull employs advertising strategies that are suitable 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 introduce new uses for its product, changes have to be made to the advertising strategies to market the new uses.However, un manage most companies which look at pricing strategies that contain adjusting theproduct 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 continue its premium price as it has positioned itself as a premium product. 4.0 Solutions and RecommendationsQ1. Red Bull should construct a market-oriented mission statement, focusing on customer needs rather than products. A product-centered mission statement is too improvident and does not reflect the long-lasting basic market need. Red Bulls mission statement has to reflect the companys load 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 lifestyle 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 varianceRed Bull is targeting young teenagers to nimble working adults. It targets students who often suffer 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 based 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 mountain chain of Red Bull, which is to live with zest and lead a fun, happening and risk-taking lifestyle.Product Red Bull does not have a wide form of flavours only original, sugar free, cola and Red Bull shot. The rationale for this is in general 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 open fire is small and easy to carry which is chromed, making it wistful and hence, it can catch a customers eye easily.As for recommendations, Red Bull could produce an spiritous beverage of its own, which can be sold over-the-shelf in stores. This would be able to create 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 long-familiar activities that Red Bull has been involved in for many years is law 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 as well as engages in Opinion Leader Marketing by having more than 250 agreements with circus tent 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 single 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 close 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 Naughty G. Indirect competitors would be other drinks that are somewhat similar but do not give the alike benefits as Red Bull. Examples would be Pepsi and Coke (caffeinated and soft drinks, but not energy drinks) and 100 Plus and H20(sports and soft drinks, but not caffeinated). distinctly indirect competitors are furthest away in terms of subst itutability. 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 big 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 guide in new flavours for a limited period of time, and then see how well the sales of the new flavours turn out to be onward 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 ad d in some vitamins like vitamin C to its existing products, which might capture more of the health-conscious consumers. Furthermore, this might attract Asian consumers who prefer traditional/herbal ingredients.Control measures Analysis of how the market share amongst Asian consumers is affected(look at sales, growth, etc.). Red Bull can similarly 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 subscribe for their feedback. Also, they can conduct online surveys, as the use of online social media is largely distributive today.Red Bull can build a theme ball commonalty comprising of extreme rides. It can aim to break the world records for the highest roller coaster thrust or have the fastest ride. In this theme park, it can also provide complementary Red Bull drinks to its visitors. This will also be a great avenue for new flavours to be sampl ed. Such an extreme theme park would create much buzz all most 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(prenominal) form of its already famous buzz marketing.Control measures By reckon the theme parks return on marketing investment. construction such a theme park has a lot of improve costs, like the costs of land and constructions. Hence, it is easy to calculate total cost. Furthermore, sales can also be easily calculated by obviously 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 financial power as compared to big companies. They face difficulty competing with the big companies given similar products. To simply put it, they are the small fishes regardless of the size of the market.Firstly, like Red bull, they can focus on a small pro duct base and differentiate their products from the competitors. They can identify the right market segments and target markets which have been relatively unswayed 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 anappropriate mix of marketing research and intelligence, so that they are evermore 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 scale advertising costs coming from big billboards or banners for example. Red Bull has also shown through stealth marketing that doing something unorthodox and not merely following what everyone else does can also lead to success. Therefore, small Asian businesses can draw inspiration from this and be fanciful and brave in their marketing strategies. Referenceshttp//www.redbull.com/cs/Satellite/en_INT/Red-Bull-Energy-Drink/001242937921959 Drawert. http//www.drawert.com/red_bull_1.php