Red Bull’s overall marketing strategy
How will you characterize Red Bull‘s overall marketing strategy (global, global or local)? Globalization is the deviation of businesses, philosophies, or technologies to propagate throughout the world, as well as the process of making this happen (Searchers, 2014). Globalization is the Idea that In a global market, when It Is customized for the local or culture In where It Is sold, a service or product Is more likely to succeed (Rouse, 2013). Localization refers to the adaptation of a product, application or document content to meet the language, cultural and other needs of a pacific target market (Said, WAC, Miller, Boeing, 2005).
It Is to believe that Red Bull Is using globalization strategy In overall marketing strategy based on Red Bull had built an Image as a trendy energy drink where approaching target are young adults and young professionals aged between 16 to 29 worldwide. Red Bull claims that they are not selling beverage but selling ‘a way of life’ which catches younger generation attention. Strategy such as promote Red Bull on university campuses by recruiting Student brand manager obviously shown that their main target audience. Red Bull sees the same marketing strategy throughout the world, there is no individual strategy in another country.
Red Bull only uses grassroots, guerilla, word of mouth, viral marketing, underground and buzz-marketing for advertising.
There is no print media advertising in any country as Red Bull thinks it’s too flat and dull to express the product. Red Bull believes in keeping one brand image all over the world and does not conform to local considerations. Red Bull only have two varieties throughout the world as well as the packaging and label. 2. Argue for the most relevant segmentation (screening) criteria to be used by Red Bull in the process of international market selection (M’S).
In order to segment criteria for Red Bull in the process of international market selection, the primary segment Red Bull concern is age group. Age group in between 16 to 29, where most of the younger generation that needs Red Bull to boost energy. Red Bull has classified its drink as a Way of life’ energy drink and youngster will seek for energy booster drinks and it can only be successful In this age group. Hence, Red Bull will be seeking country that the overall population In this age group Is more before entering the market. Besides, Income per capita Is also segmentation criteria.
Red Bull will seek for people In the certain age group In a country as well as the Income per capita of the group In the country. Red Bull Is at premium price point compared to others energy drink, It Is also 5 times the cost of other branded soft Arles. Income per capita Tort a country needle Rear Bull to analyze Is ten rural salable in the country since its priced premium. On the other hand, another relevant segmentation criteria is life style in the country. Red Bull is sold as energy drink where usually only people that play sports or workout consume and need it.
People drink Red Bull to boost up energy especially people whom plays sports.
Red Bull will be more concern in country that people are going for healthy life style. People need a fast boost up energy after sports as well as maintain a healthy life style. Instead of carbonated drinks, people that are in healthy life style will go for an energy drinks or shots. 3. Was it wise decision of Red Bull to : Launch Red Bull Cola and Red Bull Energy Shots? Red Bull launch Red Bull Cola and Red Bull Energy Shots as a new product and a sub brand.
Yes it is wise to launch both Red Bull Cola and Red Bull Energy Shots in the racket.
The Cola claimed contains natural flavoring as well as caffeine and it has less caffeine than Diet Coke. Cola is a carbonated soft drink where already existing in the market Coca Cola, is also one of the top carbonated drinks. It will be something to expect from energy drink company Red Bull to come out with that is flavored carbonated drink. Red Bull Energy Shots claimed its provides the same energy power in a smaller version of regular drink.
It’s to expected great crowd as Red Bull is a well known experts in energy drink in market.
The energy shots can be another choice in he market wherever people needs a boost of energy other than the normal Red Bull. Launch Red Bull Cola and Red Bull Energy Shots in many markets at the same time? Launch Red Bull Cola and Red Bull Energy Shots in many markets at the same time was a wise decision is because Red Bull have considered about the impact of the product. This is known as shower approach where seeks for efficiency. The sprinkler strategy is introducing in all countries at the same time for new products (Stretchers, Tells, 2003). Within a short time period the strategy were implemented in lots of target market.
The sprinkler strategy generates first-mover advantage (UK Essay, 2014). If Red Bull introduced the drinks country by country, it will took times as well as people will felt the product is not new anymore. The impact will be high when launch at the same time where viral about the products may occur. Furthermore, this will prevent piracy issues where competitors might take advantage of it and take action to sells product or launch the same product at another market. However, cost is higher if launch these products all at once including branding, advertising for new product, awareness campaign and many more. .
Should Red Bull counteract the new marketing initiatives to its US competitor, Monster? If yes, what should Red Bull do in response? Red Bull should counteract the new marketing initiatives in order to be on top of their competitor in US. Firstly, Red Bull should launch similar product at a cheaper cost. This can ensure Red Bull priced at average price point of competitor to compete. Red Bull should launch their drinks in other market that Monster have not reach In order to compete wilt n Monster. Wilt Tanat, Rear Bull wall Decode market leader faster than Monster.
Besides, develop a new product is a necessity to compete. New product enable Red Bull to recapture consumer attention and people may think Red Bull is different from others. It expands your consumer exposure and makes your company and product names recognizable in the marketplace (Root, Media, 2014). On the other hand, Red Bull can stay at their premium image by innovative, creating new products and not to mention this is impressed consumer and differentiate both brand as premium brand and average brand. In order to compete with Monster, Red Bull should increase promotional budget and advertising in U.
S. Awareness campaign can be done to increase awareness as well as promote Red Bull to the market. Not only uses the only ways for them to promote but also go out of the box will surprise the market. Sponsoring TV shows in encouraged to have more exposure of the brand with celebrity drinking the Red Bull drinks. Sponsorship allows you to reach specifically targeted niche markets without any waste and also creating positive publicity (Friedman, 2014).
Red Bull should change the size of the drinks. Red Bull only sells one packaging size, 8. -ounce can worldwide while their competitor Monster launched a larger 16-ounce can whereby Red Bull should comes up with at least 2 packaging size for consumer to choose from. Red Bull has only 2 flavors, more flavors is recommended for consumer to choose from. More flavors will also satisfied the consumer need that is energy boost and also the taste. 5.
Which of the five strategic options would you recommend for Red Bull’s future strategy? Present arguments in support of your suggested priority list. According to the case study, priority hybrid products Red Bull future strategy is recommended.
Develop hybrid products such as combine energy-giving properties with other drink categories, such as tea, fruit or vegetable Juice and other bottled water is innovative for Red Bull to develop. One trend is hybrid drinks with functional and sensory benefits such as thirst quenching ability with daily dosage of vitamins or other nutrients (Roberts, 2009). Red Bull can make some researches to find out popular flavored drinks such as blackcurrant and add in with energy-giving properties.
The idea that a product resides solely in one category is no longer true in consumers’ minds. People are more experimental than ever before (Young, 2013).