Exploring Red Bull's Global Marketing - Free Essay Example

Introduction

Identifying a gap, creating a brand new brand, and installing it in a market that never existed before could be the hardest and the most significant achievement that any business can aim for. Creating the idea of a drink like Red Bull is the success story behind the world's best energy drink beverage company (Bergstrom & Bergstrom, 2020). Through its powerful leadership, Red Bull has created a market channel that no one can get into a considerate competition. The marketing strategies are the raw pillars that maintain the company’s position. Having more than 60 million cans of consumption within the 169-country market range is an achievement (Bergstrom & Bergstrom, 2020). Red Bull performs through a unique marketing system to youths who are the target group through marketing flexibility. This case study discusses the various issues revolving around Red Bull energy drinks global marketing.

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Question one

Elements of Red Bull marketing strategy

The company engages the marketing strategy in a series of actions. The four primary features include:

Initiation Element

The strategic action involves the formulation of the marketing strategy is the involvement of stakeholders in the approval of the aims and goals set for the company (Long, 2020). New approaches are evaluated by a board of directors led by the CEO where risks, market gaps, and consumer considerations are made (Bergstrom & Bergstrom, 2020).

The Element of Strategy Reconstruction

For this element phase, the marking of fields that the company will engage in is made. Majory, Red Bull participates in sporting activities as the target group ranges from 20 to 35 years, and therefore gaming is crucial in covering market disbursement (Bric, 2020). Professionalism and engagement of salespersons are done in all sports fields, where Redbull is the dominant brand (Long, 2020).

Element of Institutionalization

Red Bull orients how it inducts the new strategic culture into the market (Long, 2020). This way, the company develops excellent attention in the market. Using taglines and special activities gives the company recognition in the market. "Red Bull gives you wings" It is among the most popular tags that Red Bull utilizes in sporting activities (Bric, 2020).

Element of Maintenance

This is the last phase of evolving marketing strategies for Redbull. The element ensures that the marketing workers are incorporated into the formulated plan through welfare considerations. At this point, the company evaluates extra resources applicable in strategy implementation- the support may include the branding of billboards, p[rinting cars, and sporting kits.

Factors Influencing Red Bull's Global Success

The company has a smooth global channel in marketing. Through the use of social media, the company has found a way to reach international markets in more than 169 nations and target more- the company uses social media consumers to market the brand better. The sport-sponsoring that RedBull does necessitates the company's name going viral (Bric, 2020). Making a moon journey enabled the company to have the world watch it and Redbull beverage was noticed by everybody (Bric, 2020). Besides, RedBull branding a unique [rouct ensures recognition- for years RedBull has utilized the red and blue can as a logo of the product, making it a global viral product.

Question 2

Red Bull Standardization versus Adaption

The company is multinational and deals with different people having different cultural perspectives. To ensure that the product's acceptance in all these markets, Red Bull puts the cultural norm in the issue of standardization and adoption. Standardization is simple, but the effect of adoption complicates the standardization (Digital Innovaions, 2015). For standardization, the production of the initial consumption product, which is the Red Bull drink are made the same in all the branches of production. However, adaption involves the incorporation of cultural marketing experience (Patabendige, 2019). For example, Red Bull ensures that the beverage component is similar, but it can differ. In the United Kingdom and a more significant majority of the company's market, Red Bull uses silver and blue cans, while these cans are changed into red and golden colors. The reason for the change in color is for adoption purposes. Red is taken as the right luck color in China, matching the golden glow of wealth (Patabendige, 2019). The North American Red Bull can concentrate on silvers' cultural perspective, a maturity symbol, and blue as youth morale, spirit, and peace.

According to standardization and adoption postulations, a single product can be differentiated in appearance and make it different in various markets. This differentiation is meant to attain administrational policies, effects brought by new entrants to the market, competition, cultural standards, usage factors, climate, and technical speciation (Patabendige, 2019). Therefore Red Bull manages the standardization by ensuring the quantity and quantity of the product, which matches the scale packaging, can sizes, and colors of marketing (Patabendige, 2019).

Global and Local Marketing Relations

Redbull is a company that utilizes the criteria for thinking locally. The reason behind this strategy is that Red Bull targets having a significant output from a minimal local market (MBA, 2020). For example, when Red Bull was introduced into the Chinese market, the marketing issues considered in thinking of the strategy were the beverage's performance in other countries. This thinking helped project the targets for the marketing branch. However, in the implementation, cultural and community-based marketing issues were considered (MBA, 2020). Thinking globally and acting locally has demerits. Red Bull had to incur new costs of designing cultural-based cans, and at first, the change of the box was viewed as a new brand of beverage and not the global dominating Red Bull product. Therefore, like in many other companies, this strategy affects Redbull. Yes, Red Bull also applies the approach of thinking locally and acting globally. At the beginning of the business, the idea was only started in Thailand, and developing the locally- formulated ideas was implemented in the global market (MBA, 2020). To date, Redbull utilizes the factors that necessitate success in one nation to the rest of the world. Also, weaknesses experienced locally are used in formulating precautions and risk management in the global market.

Question 3

Current Red Bull Communication Mix

The term Communication mix suggests that the way information is relayed to the customers is essential in the increase of sales and perhaps the introduction of inventories in the market for a company's product (Dudovskiy, 2016). Redbull utilizes a communication mix that entails sponsoring events and advertisements- this mix also integrates into other strategic components. First is the online television channels owned by Redbull, and therefore, the content is only for Redbull marketing purposes (Dudovskiy, 2016). The use of magazines and related publications is essential for Redbull communication to the targeted audience by indirectly influencing the lifestyle and the culture of youths (Watkin, 2017). Sporting engagement is also a tactic of communicating. Sponsoring sporting teas, like FB Leipzig, Salzburg, Brasil, New York Redbull, and Redbull Racing is an excellent communication medium. In addition to these platforms, Redbull has more than 150 professionals responsible for communication media (Watkin, 2017). In the advertisement, the media releases advertising opportunities but with a B2B basis of approval (Digital Innovation, 2015). Therefore, the company funds its communication through the same media. Billboards, placement of adverts in newspapers, other television stations, and youth-based organizations are excellent strategies in the communication mix (Dudovskiy, 2016).

Recommended Communication Mix

Sales Promotion and Direct Marketing Communication Mix

For sales increment: Red Bull is wise to utilize sales promotion strategies to enter new markets, and domination into the demand exists. The sales promotion communication mix entails the activities that a company should do to promote sales (Kashika, 2020). For Redbull to acquire new customers, the company has to get into the field and relate to the customer's needs. This way, Redbull can get into deals with large retailers like Walmart, where coupons and money off will be used to relate Redbull's message of customer care to the target market. Organizing loyalty programs will promote the sale where the existing customers will gain gifts, and this way, attention to Redbull products will be attained and attract more customers (Digital Innovaions, 2015). This type of communication mix is appropriate for Red Bull sales increase (Kashika, 2020). Examples of coupons, brand loyalties, and direct marketing will encourage more wholesalers, retailers, and customers to purchase the product through a push-and-pull strategy. The push will come from communication channeling offered via the retailer shops and customer referrals to the brand loyalties. Pull will be from direct marketing, which will include the use of sales promoters in the field, selling the products as they respond to customers' interest, and introducing and informing new customers about Redbull beverage (Kashika, 2020). Offering more marketing gadgets, like labeled fridges to retailers or pacing Redbull fridges at institutions with youths, will increase sales.

Question 4

Red Bull Marketing Mix

Among the strategies applicable by global companies, is the 4Ps marketing mix strategies. This is a combination of the most particulars for a business. In essence, the 4Ps is an abbreviation of product, price, promotion, and place. The place element represents the distribution and locality of the market (nmladenoska, 2020). This includes the warehouses and machinery used in the company's practices. The product is generally the same material that the company engages in. Price is determined by the market factors and the company's goals. Promotion incorporates the customers, market approach, and strategies for familiarizing the market gaps

Red Bull is a successful company due to the best application of the 4Ps. In this company, the four elements of the marketing mix are dependent on each other. Therefore an effect on one of the Ps affects the others. Since 2015 when Redbull installed this marketing mix, there has been an excellent monopolistic market performance (nmladenoska, 2020). The marketing mix's product strategy is related to customers' preferences, competitors' weaknesses, and environmental concerns. Bearing that Redbull product is a beverage, there is a significant concern for the customer's health. Therefore, the ingredient input in the product is attractively smart for customer satisfaction. On this point, Redbull has looked into every part of the customer group by having two products. one which contains caffeine, taurine, vitamins, sucrose, and glucose, and the other one is sugar-free for diabetic and health-sensitive clients. The cans are also attractive to customers. The product is made unique by considering storage, which is a place element – Redbull owns refrigerators. The products are produced in timely sessions to avoid expiry or market overload (nmladenoska, 2020).