Redbull Is A Huge Global Brand Marketing Essay

Published Date: 23 Mar 2015

Mr mateschitz found the Austrian market trying and subsequently expanded into germany and hungary. This did not prove to be easy and set the Austrian back, $12 million. This was when mr mateschitz adopted the avant-garde ' Buzz marketing strategy ', the phenomenon that put the brand on a pedestal in the global market. He dispensed with his existing workforce and started targeting students and hotspots (places where the gen-next crowd thronged to). Then there were quiet a number of high-profile events with the best possible media coverage and the customers flocked towards them. Redbull was getting bigger and bigger. Redbull also started supporting huge sporting events and world class athletes and by 1997, became huge in the united states as well.

Redbull is a huge global brand today that began from a practically non existing environment. Redbull launched its own cola in 2008 and entered the gaming industry as playstation's first advertiser in the same year. The brand released redbull energy shots in 2009. Redbull has its own record label - redbull records and owns sporting teams like Red bull Salzburg(Austrian league club), red bull racing, ccuderia torro rosso to name a few."redbull isn a drink, its a way of life"(kumar, et. Al, 2004) echoes the brand's revolutionary advertising and marketing.

Marketing mix

When a marketing plan has to be devised, there are some tools that have to be chosen to effectively communicate and outline the marketing goals and objectives, the position and the target areas. These tools or instruments:

Product - features, design, benefits

Price - discounts, list price

Place - distribution channel, locations

Promotion - advertising, sales promotion constitute the marketing mix.

PRODUCT - product is an idea, service or anything that is offered in exchange for. It is the one that is at the heart of the marketing exchange. Analysis of a product is a firm indicator of how well an organisation caters to a customer's needs.

Redbull is a sweet tasting drink primarily brought to the market to give something of an adrenaline effect to the consumers. The drink shiefly contains taurine, caffeine, glucose, sucrose to name a few and is generally available in 250 ml cans. Redbull is a drink that is exclusive for high body and mind exertions. The drink improves the metabolism and enhances the overall performance.

The product is the same throughout the world. The brand's logo - two crimson coloured bulls charging against each other at the background of a yellow sun symbolises the tenacity and the high octane energy the drink allegedly provides. The original energy comes in one design and the recipe of the drink can be copied as it is not patented.

The company's branding is observed to be revolutionary by quite a few. Redbull had to endorse its brand differently in the uk due to stiff competition from lucozade. The company steered clear of the traditional marketing strategies and adopted the buzz marketing strategy ( word of mouth) targeting the youth and relating the brand with high adrenaline Sports - snowboarding, motorsports, etc.

Redbull have also released redbull cola(2008) and redbull energy shots (2009) along with a sugar free version of the original drink.

PRICING :

Price is the amount that the customer has to part with so as to receive his desired service or offering. It is also employed as a means to enhance the interest of a consumer in a product.

Redbull is probably the most expensive drink in whichever country it is sold. The brand has premium prices the world over. This premium pricing is used as the brand is unique and holds a competitive edge.

The prices of redbull can vary according to the distributor and also according to the products. For e.g.- since the sugar free drink is a new product in the French market, the sugar free drink costs more than the conventional energy drink in france. Price differences might also be there between buying a can and a case of the drink. An individual can of redbull might sometimes come at a higher price. The pricing for the retailers is the same throughout, but subsequently, the retailers set their own tariffs and sell the drink.

PLACE

Place refers to the availability of the product to the consumer at the desired time and location.

An organisation like redbull has to decide its variety of products to be released in the outlets and the different outlets in which the products should be released.

Brand redbull has an annual sales of 4 billion cans approximately in 160 countries.

The distribution channel of redbull in each country is the same. The distribution is intensive and the brand is available in all the places, where there is competition. It uses the majority of available outlets like gyms, supermarkets, coffee houses, fuel stations etc.

The energy drink was banned in france for twelve years and the ban was lifted only in 2008.six states in germany banned the redbull cola energy drinks and instructed the retailers to stop selling the drink after a test revealed traces of cocaine.

But the brand's market dominance as such in Europe along with the united states is immense.

PROMOTIONS

Promotions or marketing communications are one of the most perceptible tools of the marketing mix. They involve all the activities with which the organisation appeals to its target market.

Marketing communications reflect the sophistication and special, erotic atmosphere of the brand positioning.

Red Bull, the "energy" drink created by Austrian Dietrich Mateschitz, doesn't taste very good. Nor does it sound very appealing: The berry-flavored beverage is spiked with additives like taurine and glucuronolactone. And at $2 for an 8.3-ounce can, Red Bull's retail price is at least double what you'd pay for a 12-ounce can of Coke. Clever marketing helped Dietrich Mateschitz turn a so-so beverage into a billion-dollar brand

Brand redbull has always shunned the traditional methods of advertising. The brand adopts the practise of what is known as viral marketing. (this marketing technique passes on the message to scores of people by making use of the rapid multiplication similar to viruses).this kind of marketing when online is viral marketing but when offline it is called word of mouth or the famous buzz marketing. The firm looked at the youngsters primarily, hiring them to put empty cans in the trendy spots of the town, making sure that people cannot fail to notice it. Vehicles were driven on the streets with a huge can of the drink installed on top of them and there were humorous television ads bringing out the brand's personality. All this increased the brand's awareness and made it more visible.

Above the line advertising is another technique the brand employs to boost its image. One example is the redbull gives you wings marketing communication campaign that perfectly symbolises the brand's persona and individuality. Another example is the redbull stratus programme and felix baumgartner's journey to the edge of space.

In contrast with the other brands, redbull organises and creates innovative events rather than sponsor them. The brand's sponsorship and support of top atheletes and celebrities makes sure that it is always in the spotlight and puts it on top of the pile.

SEGMENTATION, TARGETING AND POSITIONING STRATEGY.

Choosing a target market includes a number of steps. The foremost step is categorising the market into various segments.

Segmentation - definition.

Brand redbull adopts a specific strategy in segmenting their market and divides them according to demographics, (age, gender, religion)psychographics,(interests, activities, opinions) geographics(locations) and according to behaviour patterns(benefits,status).

The most significant factors for redbull in demographics are income and age. Redbull is a product that thrives on the younger generation and targets both sexes between 17 and 23- people who are strongly driven and full of life. The income is significant as the brand has premium pricings and is more expensive in comparison with the other brands.

The people's way of life and personality are a few of the most significant variables in the firm's psychographics. The potential redbull users would be those who have a dynamic and vibrant personality, people who play hard and have impulsive, exciting lifestyles.

Factors like the status of the customers, their consumption rate and benefits expected are a few that need to be considered in the behavious pattern category as these are important for the firm to improve customer satisfaction.

TARGETING:

The next step is targeting.

Two lines.

Some of the various target marketing strategies that are generally used are:

Undifferentiated marketing

Differentiated marketing

Customised marketing

Focussed marketing

Brand redbull differs from other conventional brands in the respect that some consumers are targeted more than the others.

When redbull was launched, firm adopted the focussed targeting and worked towards offering the product to a more or less single segment - youngsters in the age group of 17-23. This gave the firm a grip on the market and formed the basis of its expansion and establishment. As the brand got bigger with its sporting events and sponsorships it chose the differentiated targeting strategy, offering its products to several other consumer groups. The brand's main target are sports addicts, party goers and hardworkers.

Redbull makes sure that every customer relates in some way to the product and developes its edgy image as well through a combination of its sponsorship, event marketing and above the line advertising.

POSITIONING

The final step in choosing the target market is positioning. Positioning is not associated with the product but with the minds of the target market and brand redbull does this. The products are always positioned according to the customer's perceptions - cool, trendy and over the edge.

Definition

Some important factors to be considered for successful positioning are

Consistency

Competitiveness

Clarity

credibility

Consistency:

Red bull has always been consistent in its marketing plan and mix for its target market with constant innovation in their branding and promotional strategies, the brand has been consistent over the years satisfying the expectations and perceptions of the target market.

The one consistent aspect of the brand that can actually bother the public is its constant high price.

Competitiveness:

As far as competitiveness is concerned the brand always holds an edge over all other energy drink brands. Largely because of their advertising techniques and marketing strategies the same ones that have endured them to the market. huge companies like pepsi and coca cola have entered their market with their own brands, but the brand is capable of holding its own to this threat.

Clarity:

The branding campaign of the brand is sleek and small just like its product. The brands emphasis on the fashionable and exhilarating side of its products is evident and clear from its positioning strategies.

Credibility:

Credibility has always been important to the brand.the brands perennial sponsorship of high profile sporting events and event marketing augurs well for the organisation.

It is necessary for the brand to be associated with the right events as it lends credibility in the eyes of the consumers.

One potential disadvantage the brand could have is that the youngsters may start looking for other products at lesser prices as time goes by.