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Red Bull Business Marketing Techniques Report

Red Bull is a prominent brand, especially amongst the functional beverage segment faced severe issues because it lost some market shares regionally to the competitors. The company management was by then unsure on the future advancement, growth, and diversification of Red Bull. The whole administration consisting of the board of directors even attempted to keep the premium brand name image and credibility of Red Bull. The brand name was more diluted, specifically in the circulation channel. Therefore, our opinion in this report is that the whole service of this Red Bull problem lies in the hybrids of numerous marketing methods. Marketing techniques and management is a concept that has actually earned a fundamental interest in the nature of the marketing program otherwise, the mix in ideas of marketing. Inning accordance with the Journal of Marketing, which was released by Yoram Wind and Thomas S. Robertson, marketing establishes a method that depends upon the analysis of the rivals, customers, and numerous environmental forces which are supposed to be integrated together with numerous tactical inputs consisting of the personnel and financial. The main objective of this combination is to achieve the total integrated service technique (Wind, & & Robertson, 1983)

. The whole product development, market penetration as well as the diversification methods are capable of paving the method for the Red Bull Business to obtain competitive benefits over the regional market. According to the Theoretical Elements of Marketing Technique, a Journal that was released by Mykolas Romeris University in 2009, it is clear that the selection of marketing strategy does not end at the business. This is due to the fact that it is a vital concept to keep an eye on and evaluate the chosen marketing strategies regularly. Additionally, in the evaluation, assessment, and active monitoring of the marketing strategies, the journal adds that even well-selected technique for brand marketing might be inadequate if it does not have several adjustments that are carried out, taking into consideration evaluations, advancement and monitoring (Mykolas Romeris University., 2016).

Introduction to the Company

Red Bull is an energy drink brand that is in your area offered by the Austrian Business called Red Bull GmbH and was established back in 1987. Being the highest-selling energy beverage as well as a famous brand name all over the world, Red Bull have actually collected enough reputation on the planet market. It was founded by Dietrich Mateschitz, who customized a practical tonic he discovered on his see to Asia to match the western taste. He did all this given that he wished to establish a beverage, which did quench not the only thirst but also had some functional benefits (Red Bull, 2013). It was with the core foundation of this drink that Mateschit developed a company which is now the world-known for producing the very best energy beverage and worth Billion dollars (Zenith International, 2012). Red Bull is a titan of energy drink market and have actually managed to develop, grow and control into a lucrative new niche in the drinks market right under the conventional sector like Coca-cola.

The business has actually significantly targeted the growing and competitive market for energy beverage because their market has actually begun to decrease (Zmuda, 2014). The drink brand itself is extremely fascinating and naturally, established upon associating itself with the myriad of teams’ individuals and occasions, makings it more recognized for its value rather of its product. This triggers the need to explore and execute numerous marketing methods, a with a primary objective of increasing the whole sales of the brand name. Currently, the company has a choice to endeavor this brand into diversified regional markets, and this report presents different appropriate marketing tools, using the PESTEL and Porters Five Forces. The report will be offered to the board of directors who need to make a concrete tactical decision on the branding to a regional market-segment, regarding the target and positioning.

Analysis of the Scenario

The Industry Analysis: The Porter’s Five Forces.
ForcesLevels of ThreatDescription
Buyers PowerModerateProducts with low changing expenses and experience oriented, minute volume of purchases, tiny size of purchasers, irregular purchases, more competitors or competing items with low or nor functional difference.
Competitors HazardHighEstablishing business with improving the market share for each competitor. Switching expenses are extremely low, with lots of gamers in the industry so every industry have smaller sized share of the pie.
Entry ThreatModerateThe majority of beginners are discouraged if there is stronger brand name in the market e.g Monster or Red Bull. No federal government or authority limitations on entrance and item function does not have any patent. The company is growing and profitable, for that reason, drawing in new investors to the market.
Threat ReplacementHighHigh cost of energy drinks, low switching cost, and health concerns. There is brand name commitment as well as experience that replace the absence.
Provider PowerLowProduction requires undifferentiated raw products and we presume that purchase are made in bulk.

Figure 1.0

(Mykolas Romeris University., 2016)


As quickly as the entire regional market reaches the maturity state or the growth rate reduces, competitiveness amongst the companies is going to increase. For that reason, if Red Bull can offer alternative items that have the same functional benefits at lower health dangers will increase the overall prosperity to substitute out of the energy beverages. Also, with the objective of improving the determination of the buyer in the region of expansion, to buy in the present competitive circumstances, the organization is supposed to offer the experience of their brand name in addition to its practical benefits.

Action Plan/Marketing Techniques


In a brief duration, around one to three months in the location of expansion, Red Bull is expected to offer 2 sizes of the can, that is, a 16 Oz and 8Oz. We are extremely recommending the large 16 Oz. can size, since it has been a sort of the company practice. We have the understanding that Red Bull wishes to preserve its premium image and credibility in the brand-new area. However, offering the big can with a little increment in the rates can protect the existing design as well as, give the customers exceptional value for their cash. In the medium run of the company branch, approximately 4 to 6 months, it must think about extending their line of item and add more flavors as well as new attractive product packaging. Bearing in mind that there are health concerns about energy beverages, it is the obligation of the business to ensure production of top quality product through different tests and try as much as possible to offer healthy energy drinks as a part of their line extension. Within a long-term operation, about a year, it would be best if Red Bull introduce their energy beverages under the elixir segment like veggie or fruit beverages with the extension practical advantage both recovery and health sensible. With the goal of securing the brand name image, these brands need to be under different branding. For example, the Herbal Tea, branded as Carpe Diem. Finally, for the Worldwide market, Red Bull need to present a brand-new variation of Canned-Coffee drink, particularly in the Scandinavian Nations, where coffee development and intake possibility is significant compared to the United States.


The circulation channel that is readily available currently for Red Bull beverages is not producing more outstanding outcomes. According to analysts, they criticize the exposure of the business’s cans everywhere to prevent the destruction of the premium image and reputation of Red Bull. In this report, we concur with the experts in that aspect. In the same case, to perfectly execute pull method of marketing, we advise elimination of Red Bull from the Mass Merchandisers. The company must have access to practical stores compared to the Mass Merchandisers. Hassle-free places of the shops ought to be located near the main road junctions, schools, and even high methods (In Kessler, 2013). These stores will provide the company the needed direct exposure to the broad target audience while naturally, keeping the limited availability. In reality, Hansen Natural has actually tapped into an open shop refrigerator. Therefore, such places will be an excellent source of competitive parity rather of a competitive advantage.


The entire activities for advertising in this company are expected to focus on creating appeal or promotion in addition to marketing the Red Bull’s items. Red Bull can have an effective implementation of the pull method by developing a strong base of viewpoint leaders such as professional athlete recommendation or utilizing celebrities. We are expected to be more included with the regional and local sports and music scenes, even prior to we go into the market. Through the regional activities support, the company will also be able to produce a specific cult that follows to the young population. Red Bull might sponsor the regional academies training or local UFC athletes. Another way of promotion and advertisement that can make the business generate a buzz and obviously, raise the demand for the product is through Internet advertisement. Through loan investment on the web marketing, the brand name will bring in attention and get ultimate exposure (Ackerman, 2013).


The rates of the Red Bull products in the region of expansion is expected to vary from events. In locations where the need for such drinks in reasonably inelastic, such as in clubs and bars, making the price of a single can of Red Bull at about $3.50 can be sensible, presuming that the large can of drink is cost $3.0 on other ordinary shops. On the other hand, the little cans ought to be offered as a worth pack. For instance, if it is $1.5 for each can, it can be offered in a pack of 16 cans with a cost of $24. This technique can correctly work, especially to those customers with less purchasing powers and make the company permeate the marketplaces. The target for the management is to offer an average of 20 cans for every single individual in the region. The attempt of providing little discounts on the initial value loads aid in causing more sales and naturally, promote the entire purchaser’s habits. Young grownups and teens will favorably respond to this discounts and price modifications by buying more cans. As part of the marketplace penetration strategy, the company, on the other hand, will recover market share.

Distribution Channel Analysis

The Red Bull Business disperses through selective circulation methods. The process appears at preferred on-premise locations and makes the brand name to get more attention and presence in such areas. It is also excellent that in the cells that Red Bull disperse, we handle the private shops as well as retailers, instead of big chains to significantly decrease expense and time. Red Bull has some distribution channels through blades stores, clubs, bars, underground disco, and clubs. However, the number of such circuits are kept minimal as an attempt of the business to induce attention and of course, prevent damages on the premium image (Red Bull, 2013). We recommend accreditation or licensing of more circulation channels compared with what we have now, especially in the brand-new area of expansion, where many individuals do not have any knowledge of our product. With a main objective of increasing the brand exposure and likewise to make the product readily available and easily available, Red Bull must add a number of channels and outlets.


In this report, we have actually talked about numerous marketing method along with the diversification techniques that will enhance the item attention of Red Bull Business and offered multiple actions that should be taken to fulfill the strategy. The main thing Red Bull need to concentrate on is getting their market share in the new area and establishing the local market opportunities. Through this aspect, we recommend the business to follow a combination of item development, penetration of the market, and diversification strategy. The business will use the item development and market penetration methods to acquire the competitive parity as well as achieve their market share. Furthermore, the diversity technique will be used by Red Bull Company in the attempt of sustaining future development. Note that diversity depends upon the whole combination and sharing of resources and likewise, the core abilities of the services. The set of motivations looks at how the resources of numerous business can be suitably linked in the diversification mode and identify the basic conditions that can assist corporate executives in the formulation of an effective diversification technique.

Also Study: Red Bull Event Management– Air Race Events References: Ackerman, J.,(2013). New York Times. [Online] Obtained From: http://www.nytimes.com/2013/01/26/sports/ice-cross-blends-hockey-gear-and-high-speed-at-red-bull-crashed-ice-world-championship.html [Accessed 28 October 2017] In Kessler, E. H.(2013). Encyclopedia of management theory. Thousand Oaks, Calif: SAGE. Mykolas Romeris University. (2016). Theoretical Elements of

  • Marketing Method. Journal Marketing Techniques, 114-125. [Online] Recovered From: http://www.su.lt/bylos/mokslo_leidiniai/ekonomika/09_01_14/isoraite.pdf [Accessed 28 October 2017] Wind, Y., & Robertson, T. S.( 1983). Marketing Method: New
  • Instructions & for Theory and Research study. Journal of Marketing,47 (2). [Online]. Obtained From: https://www.researchgate.net/profile/Jerry_Wind/publication/235361236_Marketing_Strategy_New_Di rections_for_Theory_and_Research/ links/0c960530252f705e3a000000/Marketing-Strategy-New-Directions-for-Theory-and-Research. pdf [Accessed 28 October 2017] Red Bull,(2013). Business: Red Bull. Zenith International.(2012 ). Zenith International: Press
  • Release. [
  • Online] [Accessed 28 October 2017] Zmuda, N.,(2014). Marketing Age: Articles. [
  • Online] Obtained From: http://adage.com/article/cmo-strategy/soft-drink-sales-decline-accelerates/292409/ [Accessed 28 October 2017]
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