Red Bull's Marketing Mix
Introduction
Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it has since then entered and established a foothold in various key markets like United States, Germany and United Kingdom. Through its well developed network of local subsidiaries in these and other key markets, it manages to make its products available in more than 100 countries. The brand Red Bull has a reputation of unconventional marketing strategies, first mover in the energy drinks market and a strong player in the overall functional drinks market.
This report is based on Red Bull GmbH’s international development and is divided into four distinct sections. Firstly, the key strategic challenges that it faces internationally in the functional drinks sector would be identified and evaluated. Secondly, the existing product mix of Red Bull and any suitable changes to the same will be analysed and discussed. Third section of the report will talk about Red Bull’s existing market entry mode into non-domestic markets and relevant alternative strategies. The final section will cover the company’s existing approach to product promotion/advertising and distribution and if they can act as a source of competitive advantage in the future. The report will be concluded with a summary of overall assessment of the company.
Section 1: Key strategic challenges for Red Bull in the functional drinks sector
Red Bull is a major player in the functional drinks market which comprises of energy drinks and sports drinks. The market for functional drinks is dominated by both
Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it has since then entered and established a foothold in various key markets like United States, Germany and United Kingdom. Through its well developed network of local subsidiaries in these and other key markets, it manages to make its products available in more than 100 countries. The brand Red Bull has a reputation of unconventional marketing strategies, first mover in the energy drinks market and a strong player in the overall functional drinks market.
This report is based on Red Bull GmbH’s international development and is divided into four distinct sections. Firstly, the key strategic challenges that it faces internationally in the functional drinks sector would be identified and evaluated. Secondly, the existing product mix of Red Bull and any suitable changes to the same will be analysed and discussed. Third section of the report will talk about Red Bull’s existing market entry mode into non-domestic markets and relevant alternative strategies. The final section will cover the company’s existing approach to product promotion/advertising and distribution and if they can act as a source of competitive advantage in the future. The report will be concluded with a summary of overall assessment of the company.
Section 1: Key strategic challenges for Red Bull in the functional drinks sector
Red Bull is a major player in the functional drinks market which comprises of energy drinks and sports drinks. The market for functional drinks is dominated by both
References: Hollensen, S. (2004) Global marketing: a decision-oriented approach. 3rd ed. Essex, Pearson Education Limited. Jeannet, J.P. and Hennessey, H.D. (2004) Global marketing strategies. 6th ed. Massachusetts, Houghton Mifflin Company. Appendices Appendix 1: Porter’s prescription for international competitiveness [pic] Appendix 2: The 12C Framework [pic] Appendix 3: Red Bull’s Product Life Cycle(PLC) Sales & Profit