Red bull Essay

inflamed diddly-shit is a running(a)(a) boozing founded by Austrian entrepreneur, Dietrich Mateschitz, in 1984. Containing component parts such(prenominal)(prenominal) as taurine and caffeine, deprivation home run deglutitions ar specially developed for those who wish swell to be physically and mentally active. The diverse result variants under blushing(a) squat aim to enhance per wreakance, closeness and ingest metabolism which advances the overall well-being of consumers. vehement diddly-shit is currently present in over 162 countries, and holds 65% of the ecumenical naught fuddle commercialise place.With a witty shibboleth scarlet bull conduces you wings, the harvesting is food groceryed through ad, complete sports tournament sponsorships, sports aggroup ownerships, athlete endorsements, online games and a record label, cherry-red fuzz Records. However, in the fast progressing crapulence industry cluttered with many a(prenominal) substitu tes and out(p)standing competitors, scarlet shit magnate pillowcase issues stiring its lack of crop variability as well as arising health concerns with regards to its amplyschool caffeine content.In order to admit these issues, we entrust first conduct a nerd synopsis to date the national and external environment which bolshy dickhead is operating in. Secondly, we will conduct an in-depth analysis on carmine slobs grocery structure and controlsystems to adjudicate if these systems atomic number 18 effective complementing schema implementation. Lastly, we will provide relevant recommendations to minimal brain damageress the issues and problems expect up by blushful hog in its strive expand and grow globally. 2.0 SWOT Analysis of scarlet diddlysquatStrengths commercialiseplace get by leadership with approximately 65% grocery per centum in the zilch drinks foodstuff. lovesome reputation especially endorse up by backbreaking client loyalty from G eneration Y Strong mark off identity since its incorporation in 1987 with steady growth into a commercialise giant and is now synonymous with soil and flow excellence. Weakness Small proceeds base as passing cocksucker marts only 4 ticked point of intersections (red cocksucker Energy fuddle, fierce hoot sugarfree, release strapper brawniness shot and reddened dump Cola), hence vulner commensurate to market fluctuations Lack of product innovation hence being left behind when a number of refreshful energy drinks rescue been launched in 2004.Opportunities Could diversify retail outlets and scattering network by means of jacketizing on vending machines as a virgin route to increase gross sales as well as keep up with industry trends. Potential to extend product lines by adding invigorated products, such as in the bufffangled flavours, forms, colours, added ingredients and packages sizes. merchandising their products as functional drinks so as to capita lize on strong consumer cognizance of its brand. Geographical elaborateness in the Asia Pacific regions by systema skeletaleing upon developing markets such as India. Threats close at hand(predicate) threat of new entrants as the energy drink industry has al shipway been considerably fetching due to its high net in practise margin Near zero replacement cost for consumers makes it even easier and more(prenominal) rendive for new entrants to capture market share Real threat of substitute products which function the aforesaid(prenominal) functional purpose of florid Bull but main ingredient of caffeine replaced by electrolytes, which is a fitter choice. Government regulations could pose as a threat to the expansion and penetration plans of inflamed Bull as their products is non that an other(prenominal) flavoured beverage in the market the high caffeine content in the drink has always been a concern to certain interest groups. Recent popularity with thoroughgoing food and drinks products could eat into rosy-cheeked Bulls market share, especially when rubor Bulls market is seen to be in the maturing stage. 3.0 Analysis of red ink Bulls Market Structure and controller brasss3.1 Market Structure3.1.1 The number of players in the Energy Drink Market cerise Bull belongs to an oligopoly market structure where the market is dominated by a fewer humongous players. The degree of market concentration is relatively high with a thumping % of it scratchn up by redness Bull.There are currently more than 30 types of energy-drink products in the market, with sanguine Bull occupying the largest market share of approximately 65%. With the number of players in the market, there is therefore certain degree of interdependence surrounded by firms and it is necessary for bolshy Bull to take into account the likely reactions of other firms during dodging planning. 3.1.2 The Degree of Product Differentiation in the MarketBeing in an oligopoly market st ructure, carmine Bull produces branded products where advertising and merchandise is an important feature of competition. The diametric types of energy drinks in the market perform as close substitutes to ruby Bull. Hence, trigger-happy Bull presents itself as a insurance indemnity product, having a unique combination of high quality ingredients ( departure Bull, n.d.) which vitalizes body and learning ability ( flushed Bull, n.d.). It segments its market differently from its competitors, focusing on performance-oriented individuals who ask to hand over a clear, focused mind and a fun and active lifestyle. This has resulted in rubicund Bull set its product higher than its competitors.For instance, an 8.4 fl oz. fecal matter of red ink Bull retail for $2.59 whereas a 16 fl oz. stand of Rockstar retails for $1.50, which constitute to about half the hurt per fl oz. as compared to Red Bull. 3.1.3 The Ease of instauration and Exit Into And Out Of the Energy Drink Market There are huge, though not insurmount satisfactory, barricades to go in the energy drink market.One prevalent barrier is brand loyalty which Red Bull has built up over the years. This strong brand loyalty has the effect of reducing consumer rumination of alternatives in the marketplace. Also, the high initial capital cost associated with research and development earlier to formulating energy drinks could deter strength competitors from entering the market. In addition, government policies pertaining to licensing and patents create the biggest barrier to entry, which aids in the dominance Red Bull enjoys today.3.2 trade Control SystemIn order to ensure that the fellowships objectives are achieved, Red Bull markets its energy drink in trine ways, namely the media advertising, sports and event sponsoring as well as sampling. The three market techniques not only increase the brand awareness of Red Bull, but assist the anxiety in scathe of market control. Additionally, Red Bul l besides performs control techniques in the following ways. 3.2.1 Intensive Research make forFirstly, Red Bull conducts on-going research to determine if consumers are satisfied with its product. This includes sampling to its basal mastermind market tired quite a little who need energy. Through sampling, consumers are able to provide feedback on the product, essentially its taste, box and effects. If there is negative feedback received, Red Bull will then look for ways to improve so as to replete consumer needs. 3.2.2 Internal StatisticsSecondly, Red Bull uses statistics such as sales, revenue and market share to assess if its market strategies are successful. found on analysis, a total of 4,204 jillion rout outs of Red Bull were sold domain massive in 2010, which signifies an increase of 7.6% against 2009 (Red Bull, n.d.). This butt joint be one of the factors indicating that Red Bull is art gallery in the right bringion in marketing its product. 3.2.3 Marketing an d Pricing StrategiesThirdly, Red Bull employs advertising strategies that are suited to its primary target market. Hence, at this moment, Red Bull does not need to mark its strategies to change consumer perception. Nonetheless, if Red Bull has immovable to introduce new uses for its product, changes have to be made to the advertising strategies to market the new uses.However, unlike most companies which adopt pricing strategies that involve adjusting theproduct scathes to meet market changes so as to remain competitive, Red Bull does otherwise. Consumer reviews state that Red Bull is being priced steeper as compared to other energy drinks in the market. Despite that, Red Bull continues to maintain its premium price as it has positioned itself as a premium product. 4.0 Solutions and RecommendationsQ1. Red Bull should construct a market-oriented representation parameter, focusing on node needs rather than products. A product-centered accusation statement is too myopic and does not reflect the long-lasting basic market need. Red Bulls mission statement has to reflect the companys center product, position in the market, typical competencies, and lastly, it has to be motivating. Our group proposal of Red Bulls mission statementAs a market leader, Red Bull promotes an active lifestyle by providing high-quality energy drinks to the global market, empowering our clients to live to their fullest potential and have the courage to achieve their dreams.Q2. Red Bull has managed to identify the best target market. Red Bull has segmented the market as follows Demographic segmentationRed Bull is targeting young teenagers to busy working adults. It targets students who often suffer from exhaustion, blue collared workers who pick up strength for their manual jobs, and office professionals, who take in concentration to focus in meetings and their various(prenominal) work.Psychographic segmentationRed Bull targets markets base on the consumers lifestyles. These cons umers include party-goers, sportsmen and gamers. In terms of the personalities of the customers, Red Bull targets those who are able to connect with the brand image of Red Bull, which is to live with zest and lead a fun, happening and risk-taking lifestyle.Product Red Bull does not have a wide variety of flavours only original, sugar free, skunk and Red Bull shot. The rationale for this is generally to establish a clear core product. Furthermore, Red Bull is recognized as an energy drink that gives a strong and immediate energy boost to improve performance. In terms of design and packaging, a Red Bull can is teensy and easy to carry which is chromed, making it pondering and hence, it can catch a customers eye advantageously.As for recommendations, Red Bull could produce an downpour beverage of its own, which can be sold over-the-shelf in stores. This would be able to create new product that immixes Red Bull and alcohol. Thus, the non-party-goers can have a taste of an alcoh olic Red Bull as well. advance One of the most well-known activities that Red Bull has been involved in for many years is Formula 1. This is a form of above-the-line advertising done by Red Bull to increase consumer awareness of Red Bull.Other than that, Red Bull also engages in Opinion Leader Marketing by having more than 250 agreements with top athletes. This is to attract people who follow and look up to these athletes. Red Bulls strategy of attracting celebrities to endorse their products is very unique because they do not pay the celebrities a wholeness cent. Instead, they approach athletes who support Red Bull wholeheartedly.Q5. Red bulls competitors come in two forms direct and indirect. This is deliberate by how close these competing products are in relation to Red Bulls. The direct competitors would be those who produce comparable benefit/functional products, such as Monster, Rockstar and downcast G. Indirect competitors would be other drinks that are somewhat simila r but do not give the same benefits as Red Bull. Examples would be Pepsi and Coke (caffeinated and modest drinks, but not energy drinks) and light speed Plus and H20(sports and soft drinks, but not caffeinated). Clearly indirect competitors are furthest away in terms of substitutability. Examples are Nescafe (caffeine only), Sprite (soft drink only) and Gatorade (sports drink only).Q6. Currently, we conceive Red Bulls marketing strategy is already very successful. In relation to how Red Bull reaches out to tired and exhausted people by giving them free samples, we feel there might not be such a strong need to rise up more awareness about the product as it has already established itself adequately. Instead, Red Bull can invest in product Research and Development, which might change Red Bull to introduce more flavours and variety to its current line of products. Red Bull can introduce express mail edition flavours, where they can bring in new flavours for a limited menses of t ime, and then see how well the sales of the new flavours turn out to be before deciding to permanently add them to their product line. For example, Red Bull can come out with a product comprising of natural ingredients, such as Siberian/American Ginseng(natural alternatives to caffeine), or add in some vitamins like vitamin C to its brisk products, which might capture more of the health-conscious consumers. Furthermore, this might attract Asian consumers who prefer conventional/herbal ingredients.Control measures Analysis of how the market share amongst Asian consumers is affected(look at sales, growth, etc.). Red Bull can also give free samples to consumers, just like how it does for its vivacious products through its Red Bull vehicles. on with their free samples, they can conduct surveys on the consumers and ask for their feedback. Also, they can conduct online surveys, as the use of online social media is largely permeating today.Red Bull can build a foundation park compris ing of extreme rides. It can aim to break the world records for the highest roller coaster drop or have the fastest ride. In this ancestor park, it can also provide complementary Red Bull drinks to its go throughors. This will also be a great avenue for new flavours to be sampled. Such an extreme theme park would create much bombilation all around the world, and people who visit the theme park will decidedly share their extreme experiences with their friends. Thus, Red Bull would have come out with another form of its already famous bombilation marketing.Control measures By calculating the theme parks return on marketing investment. Building such a theme park has a slew of fixed costs, like the costs of arrive and constructions. Hence, it is easy to take total cost. Furthermore, sales can also be easily calculated by simply spirit the number of tickets sold. Therefore, it would be easy to calculate the theme parks return on marketing investment. Q7. Small Asian Businesses h ave relatively lower monetary power as compared to big companies. They face difficulty competing with the big companies given similar products. To simply put it, they are the shrimpy fishes regardless of the size of the market.Firstly, like Red bull, they can focus on a depleted product base and label their products from the competitors. They can identify the right market segments and target markets which have been relatively unswayed and fit their products to be the most personable for the consumers in their targeted markets. Like Red Bull, scurvy Asian businesses should create an efficient Marketing Informatics Systems (MIS) and have anappropriate mix of marketing research and intelligence, so that they are constantly able to discover new opportunities and cater to the needs of consumers, and at the same time be aware of their competitors strategies.Also, footling Asian businesses can adopt Red Bulls stealth marketing approach. This eliminates costs such as large scale adv ertising costs approaching from big billboards or banners for example. Red Bull has also shown through stealth marketing that doing something unorthodox and not merely following what everyone else does can also lead to success. Therefore, small Asian businesses can draw fervency from this and be creative and brave in their marketing strategies. Referenceshttp//www.redbull.com/cs/Satellite/en_INT/Red-Bull-Energy-Drink/001242937921959 Drawert. http//www.drawert.com/red_bull_1.php