The success of a business majorly depends on the marketing plan, which plays an important role in focusing on to the goals and objectives of a company depending on the business type.
The Red Bull Company is an energy drink company, which was founded in 1987 by Mr. Dietrich Mateschitz. It originated from Austria and has served over 166 countries. The company has its headquarters in Fuschlamsee, Austria. A research conducted revealed that red bull company has the highest selling in the market share recording a sale of 5.387 billion cans. Dietrich mateschitz created the product after being inspired by existing energy drink named Krating Daeng, which was created and sold in Thailand. He decided to modify the ingredients used to come up with his brand that suits the western people. The product is marketed through advertisement. The product expanded to the international market in 1992 and the United States in 1997.The Company recorded revenue of $3427.501 and a net income of $502.185.
The country portrays a simple but a strong brand image with its famous slogan Red Bull You Wing and Ideas. It has built its image brand name on both traditional and non-traditional ways like sponsoring various events and sporting activities worldwide. Wall to wall production is a strategy initiated by the company with the aim of saving transport expenses and resources. This has helped save 7,000,000km truck travel. The company has recorded an increase in its sales of the cans between 2012 and 2013. The company sold 5.3 billion cans more compared to 2012. It also recorded an increase in its turnover from EUR 4.930 to EUR 5.040. The outstanding sales in the year 2013 attributed to the great performance in terms of revenues, operating profits, and productivity. The Red Bull Company uses the buzz marketing strategy as its main marketing strategy. The companys market share sales and demand have tremendously increased over the years and the company expects a more positive increase in the upcoming years. In the recent years, Red Bull Company has recorded a great performance but has received strong competition from companies with emerging products and claims of high caffeine levels in the drink. Coca-cola is a major competitor who has sold its products over 200 countries in the world. This is because of its marketing techniques and principles, which have helped, achieve its higher market share in the world.
The Pestle Analysis
According to the PESTLE analysis carried out by the company, it evaluated the external factors and the environmental factors that influence the economic, political, social, technical, environmental, and legal factors. The political and legal factors have a great impact on the brands image. For instance the implementation of restrictive laws, pressure of high caffeine ant taurine rates; the health risk associated with the consumption of this product has tarnished the brand image and even led to the product being banished from country like Hungary. The public had a positive attitude towards the brand and increased consumption habits have been noted over years. The company has been facing little exposure to the economic cycle due to its high prices of the product as compared to other energy drinks. Improved technology innovations do not negatively affect the manufacturing of the energy drink. The ecological factor has a great impact on the product. This is because of the increase in the need for natural ingredients by most people.
The Swot Analysis
The SWOT analysis conducted on the red bull company was summarized as follows; the company has its strengths on the fact that it has good leadership from the board managing the company, the strong brand name which is popularly known, a great success in promoting its products through the different methods; the little cans are much more convenient in terms of size and also convenient to carry and affordable to all the people. It recorded great opportunities in producing the product in new countries; they can have a chance to partner up with other companies in order to strengthen its brand. The company has also faced stiff competition from emerging products, high marketing costs that led to the inflammation of its prices and the critics on health concerns of the product from other countries. The company offers its product at an expensive price compared to other products thereby reducing its sales. The company can overcome these threats by adopting the word of mouth campaign to promote their product. This will help increase the popularity of its brand in different areas. It should aim at offering its product at a much cheaper price as well as coming up with new brands to meet the needs of its consumers. It should promote positive marketing campaigns against claims on the health issues to overpower its competitors.
Red Bull Company aims at upholding its standards and maintains good leadership positions and deliver efficient customer services in a profitable in the future. The company targets to increase the market share by 6% in three years through leader pricing strategy and penetration pricing. It also targets to meeting its customers satisfaction more efficient by 10% in 2016 through the use of the IT department and customer services. The company targets to expand its geographical operations area by opening up new manufacturing units in different countries. It also aims at reducing the price of its product by 10% by implementing some cost reduction techniques. The company can achieve its objectives using the mix Ansoff Matrix Strategy and innovations.
It should aim at producing the local and business markets through innovation. It should focus on changing and delivering the product to the local market in Austria. It should aim at producing more energy drinks and distributing it to the world. Creation of new products that are caffeine free to cater for the young kids age between 8-17. The industry can motivate, advertise and reward the public to encourage the purchase of their products. They can produce and sell their products at a much lower price at a local market.
The company needs to come up with a new context in which to product is manufactured and adopt a suitable pricing strategy to defend its volume, value and market shares lost on the health issues. The company can establish a partnership with the emerging competitors so as to reposition the establishment in a specific context. They can also rebrand their product due to the claims of high levels of caffeine and instead use low caffeine levels. The company should encourage more consumption to its customers by using promotion activities like buy one, get one free. This will help uphold the good name and image of the brand in its customers minds.
The company can also boost a mass marketing campaign to develop the new market through innovation. This can be established by repackaging its products and creating it into a new face to the public as well as reducing the cost. They can also target different geographical market by using billboards, banners and posters to create awareness to the public and to maximize its contact with its customers thereby increasing its popularity.
They should penetrate the market and diversify their product through product innovation. This involves entering a new market with an existing product. They should introduce and produce energy drinks with different flavors. This will show their creative and innovative skills to the customers. The company should expand their geographical territories of their existing product. They can also adopt the reverse engineering concept by analyzing its competitors products and design features to develop their product. The products produced should have different flavors and low levels of caffeine; this will help to create a good brand image as well as create an entry barrier against their competitors. This will increase their market share.
Red Bull Company should also intensify their popularity by advertising their products through advertisement. The company can also sponsor sporting activities in major countries where their product image and name has lost popularity. They should advertise their products on the internet by opening websites in Facebook and Twitter that are familiar social sites among the youth. They should also create videos that can stream on YouTube to create a wider market to redeem its brand position and image. The company wants to re-position its current image by producing products of low caffeine levels and required health status to increase its share markets.
Over the years, the company has recorded a high-profit margin from 2009 and ongoing in the years. Looking at the financial position of the company has earned more profits as compared to its losses. The company recorded a profit of 67.5m indicating a slight increase ahead of 2012. The revenues decreased by a 4 percent rate to 346. The print advertising declined by 22.3m.This was due to the offset by growing sales of digital products. Costs decreased by 5% during the year. Profit before tax fell by 1% to 64.0m, with net finance costs increasing by 0.9m to 3.5m. Finance income from defined-benefit pension scheme, calculated using FRS 17, fell by 0.7m. Net bank and other interest costs increased by 0.2m in part because of higher levels of debt in 2012-13, associated with the three acquisitions made since March 2012. The profit earnings and tax per share profit after tax increased by 3% to 48.7m, as the basic earnings rose to 194.4p. The companys balance sheet remains strong with an increase of 116.2m compared to last year. The gross liabilities have increased due to lower corporate bonds. There was an increase in the dividend of 5% over 2012 and a yield of 6.3%.
Over the years the Red Bull company has recorded a great performance as illustrated in the financial statement above, this is due to proper management of the board, provision of efficient services to its customers, use of...
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