Red Bull
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Executive Summary
Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic. Thus I conducted some analysis to look at Red Bull’s strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example, they have the advantage of the customer loyalty and the production cost; however, they are in the territory of major players in the beverage industry which put them at risk. To understand the big picture forces of change, I employed PEST Analysis to analyze the Political, Economic, Socio-Cultural, and Technological changes in Red Bull’s macro business environment. The tool can help to reveal the direction of change within the macro business environment that they are exposed to, and, from this, take advantage of the opportunities that they present. Through the internal analysis, we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. By the value chain model, we observed that Red Bull’s internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, because they are young and know the young target market exactly. The norm is that any kind of differentiated products target few selected customers; however, Red Bull did become selective but became massively popular among the youth; as a result of this, they produce over 5 billion cans each year. In order to clarify the elements of marketing (Product, Price, Place and Promotion) set for those target groups, Marketing Mix was optimized and expressed what roles each element plays in promoting Red Bull’s products and services and delivering those
Executive Summary
Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic. Thus I conducted some analysis to look at Red Bull’s strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example, they have the advantage of the customer loyalty and the production cost; however, they are in the territory of major players in the beverage industry which put them at risk. To understand the big picture forces of change, I employed PEST Analysis to analyze the Political, Economic, Socio-Cultural, and Technological changes in Red Bull’s macro business environment. The tool can help to reveal the direction of change within the macro business environment that they are exposed to, and, from this, take advantage of the opportunities that they present. Through the internal analysis, we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. By the value chain model, we observed that Red Bull’s internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, because they are young and know the young target market exactly. The norm is that any kind of differentiated products target few selected customers; however, Red Bull did become selective but became massively popular among the youth; as a result of this, they produce over 5 billion cans each year. In order to clarify the elements of marketing (Product, Price, Place and Promotion) set for those target groups, Marketing Mix was optimized and expressed what roles each element plays in promoting Red Bull’s products and services and delivering those