Redbull Marketing Case Analysis

CASE ANALYSIS No. 4: RED BULL

12 January 2018

By:         Liezel Salera

Roberto Marco Samson

Joyce Quiachon

Featured Company:      Red Bull Company

1. INTRODUCTION

1. VISION AND MISSION STATEMENT

The company’s vision statement focuses on 5 aspects of their company values: People, Portfolio, Partner, Profit and Productivity. It was further elaborated as:

“People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage that anticipate and satisfy people’s desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization. “1

The mission statement of the company is as follows:

“To be the premier marketer and supplier of Redbull in Asia, Europe and other parts of the globe.” 1

They will achieve this mission by building long-term relationships with the people who can make it become a reality.”1

1. CURRENT STRATEGY 

The strategy of Red Bull is to focus on specific target market. They identify the target market and focus their strategy and resources in introducing their product to the said market share. The 2 specific target markets include students in colleges and urban professionals.

For college student, the “Red Bull girls” hands out free drinks to college students and the strategy is effective specially for those who are cramming for exams. Red Bull helps the students stay focused all night. This strategy was widely successful resulting to rapid increase in sales. 2

Red Bull also targets professionals by connecting through sports and entertainment. The company owns various pro sports teams such as Red Bull Racing, Scuderia Toro Rosso, New York Red Bulls, FC Red Bull Salzburg, RB Leipzig, Red Bull Brasil ,EHC Munchen, EC Red Bull Salzburg and Red Bull Ghana. 2

1https://www.ukessays.com/essays/commerce/red-bull-company-description-commerce-essay.php2 2https://artplusmarketing.com/red-bull-stomps-all-over-global-marketing-7642c2647401

RELEVANT HISTORY OF THE COMPANY 3

• 1976: Chaleo Yoovidhya introduced a drink called Krating Daeng in Thailand, which means “red gaur” in English
• 1982: Dietrich Mateschitz travelled to Thailand and met Chaleo, owner of T.C. Pharmaceutical.
• 1984: Mateschitz co-founded Red Bull GmbH with Yoovidhya and turned it into an international brand.
• 1992: the product expands to international markets: starting with Hungary and Slovenia
•  2016: It became the highest market share of any energy drink in the world with 6.06B cans sold

3 https://en.wikipedia.org/wiki/Red_Bull

1. COMPANY PROFILE

• Financial Analysis

Red Bull seems to refused to publish their financial statements in public. However, based on write ups, and articles, its clear that they are increasing their profits and earnings for the past few years. In 2011, Red Bull sold 4.631B cans worldwide. It represents an increase of 11.4% against 2010. Company turnover increased by 12.4$ from 3.785B Euros to 4.253B Euro.  The main reason for such progressive figures include exceptional sales, especially in key markets such as the USA, Germany, Turkey, Japan, France and Scandinavia combined with cost management and ongoing brand investment. The effective marketing plan plays a vital role in achieving and increasing their financial standing in the past few years. 4

https://www.ukessays.com/essays/commerce/red-bull-company-description-commerce-essay.php 4

• Marketing Audit

The following are the existing marketing strategies implemented by Redbull, to wit:

1. Product Development was strategically made to cater specific clientele. The unique formula of Red Bull that includes health benefits is first of its kind. It was initially strategized to cater teenagers and young people. It was being address by developing the sugar free and the total zero Red Bull.

1. Marketing Mix  of the company incorporates the following: continuous product development and diversification, high price product believing that their product deserves it due to its high quality, targeted market promotions, and effective and convenient distribution channels.

1. Distribution network of Red Bull is impeccable. In the US alone, it includes 250 distributors dispersed from north to south so that customers will be able to get hold of the products. It was then able to capture 60% of the market of energy drink due to the effective and efficient network of distributors, dealers, agents and retailers.

1. High Pricing is reflected in its consistency on high price since they are selling high quality products. It remains higher than its competitor because they have prestigious products and already have customer loyalty.

1. Promotion Mix Strategy was evident with Red Bull by deploying several advertising strategies to target their  specific customers and build the image of the energy drink. Red Bull has a wide range of advertising such as television ads through the “No Red Bull, No Wings” advertisements, sponsorship of sports teams, dance competitions and air race.

• Management Capabilities

The founder of Redbull Dietrich Mateschitz , is focused more on the highly ingenious “Buzz-marketing” strategy that herds consumers to exclusive and exciting events that get high media coverage. In his mind, he dedicates himself in embarking product enhancement and development to suits the consumers needs. As he had further stated out that “We don’t bring the product to the consumer, we bring consumers to the product”.