Red Bull Case Study

Marketing case study


The marketing function is very important in linking sales, development, customers and prospects, and the company’s executive management. There are seven marketing functions. Distribution which is the process of deciding to get goods in customers hands, financing which is getting the money that is necessary to pay for setting up and running a business, pricing which dictates how much to charge for goods and services in order to make a profit, product/service management which obtains, develops, maintains, and improves a product or a product mix, promotion which is the effort to inform, persuade, or remind potential customers about a business’s products or services, selling which provides customers with goods and services they want, and last but not least marketing information management. Some people may believe that these are called the marketing mix.
The market analysis helps to meet the aims of the marketing functions because the research is very important and knowing what the consumers need and want and what the business needs to do. Marketing functions help businesses find out exactly how their company is working, what are the consumer’s needs, and what they need to do to meet their needs.
Red Bull has a clear leading market position and it has a 70% market share. It is on of the best energy drinks in the world and targets energy drink markets.
Red Bull’s marketing objectives are as follows:
To continually develop aggressively to become market leader through their own three products- Red Bull original, Red Bull sugar free, and Red Bull cola.
To increase and revitalize lost energy of its target audience – in the age group of 18-35 years old by stimulating concentration and enhancing the required boost.
Introduce to new category users and favorable brand switchers.
To capture a greater market share and be the leader in the energy drink segment.
The marketing strategy adopted by Red Bull has been very successful as it has been able to capture 70% of the market share of this energy drink in around 100 countries. In Qatar it has dislodged Power Horse and other energy drinks to become the number one energy drink. Its marketing strategy of getting people from the target audience to market to the target audience itself has been very successful supported by substantial advertising and sponsorship of sporting events. Students at CHN University are assigned by Red Bull to market its products in the campus as well as in the Qatari market.
The main market segments which Red Bull is aiming at are predominantly the youth in the age group of 18-35 years old. With its launch of the Red Bull Cola, the company is trying to target youngsters in school.
The market structure that the company operates within is by using unusual distribution methods, initially using established distributors and now rely more on contacting individual distributors to sell Red Bull preferably exclusively, giving them the opportunity to benefit within a time span of six months. The sales team also visits key places like popular clubs and trendy bars and use the marketing ploy of giving promotional equipments like coolers etc. This has affected their market strategy positively as more and more retail outlets are willing to stock and display Red Bull prominently beside the adequate support given by the advertising on the radio, television, and other types of media including sponsorship of sporting events.
Red Bull is supposed to have 65% market share of the energy drink. The implication of this is that in view of its marketing objective of being number one, it has to devise on strategies which will push it to the top spot. They can increase its world wide market share by becoming more global by establishing its operations in all the existing countries or even contemplate of expanding through franchising.