Red Bull is an energy drink manufactured, distributed, and marketed by Red Bull GmbH, which is a company in Austria. The company was established in 1987 in Austria and hit the global markets in 1996. Red Bull is the most popular energy drink across the world selling an estimated 5.2billion cans in 2012 as reported by Symphony IRI. The company commands a 50% and 46% market share of energy drink industry in Canada and United States respectively. The brand is also marketed in Europe, Asia and has recently ventured the African market with the establishment of a distribution depot in South Africa. Further, the company generated approximately $400 million in sales in America and Canada alone in 2012.
Since inception, the company has always embraced aggressive promotions and marketing campaigns that have enabled the company to remain competitive in its energy drink industry. The company targets active males in the age bracket 18-35 years according to O’Brien (2012) as its target market. Over time, the company has developed various slogans to market their products though their logo has remained unchanged. The most famous slogan “Red Bull gives you wings” has been used to market the Red Bull brand in various English and German speaking countries over the last decade.
The company has continued to expand its marketing strategy through innovation to reach new markets and retain its current customers. Recently the company has sponsored various sporting events like the World Rally Car Championships in the US. The company has also purchased some sporting clubs in the world in the efforts to establish their brand further. The company bought SV Austrian Salzburg, and renamed it Red Bull Salzburg in Austria, and New Jersey Soccer Team renaming it to Red Bull New York.
The marketing mix
The marketing mix has been defined by marketers as the tools firms use to successfully pursue their marketing objectives. Professor Jerome McCarthy described a 4Ps model which has long been modified to 7Ps in the current marketing models. However, on this paper the Red Bull marketing strategy will be analyzed against only three of the seven Ps. They will include; People, place and physical evidence.
This marketing mix tool refers to distribution channels employed by companies to ensure their products are available to customers. According to Lancester and Reynolds (2004), distribution channel analysis is very important especially to intercontinental marketers. A sound choice needs to be made on whether the company sells its products through direct representation or strategic distributors. Distribution channel involves various activities the company undertakes in ensuring availability of their products to their customers. Such activities include identifying, recruiting and linking various middlemen and other market facilitators with an objective of ensuring effective and timely delivery of products to the clients.
Prior to the entry of Red Bull, the soft...