Marketing and Red Bull free essay sample

Who are Red Bull? s greatest strengths and risks as more companies (like Coca-Cola, Pepsi and Monster) enter the energy drink category and gain market share? Strengths There are six marketing lesions from Red bull which gives them competitive advantage 1. Embrace a sense of purpose 2. Beyond Big Society: do more than grow your bottom line 3. Move beyond ROI: pitch for emotional impact 4. Embrace ‘extreme marketing’ 5. Behaviour trumps brand values 6. Place commitment above all things Also Red Bull follows ADIA model: A= Attention: To acquire our attention, Red Bull launches a series of promotional strategies; their marketing is mainly based on the â€Å"3 pillars of Red Bull; Sampling, Advertising, Sponsoring†. This means that next to normal advertisements, they drive around in Red Bull –modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle. We will write a custom essay sample on Marketing and Red Bull or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I= Interest: To maintain consumer interest in the product Red Bull host or sponsers many customer friendly events D= Desire Red Bull’s smart use of social media and branded content Red Bull is playing a smart game. Branded content is a huge area in social media at the moment but most brands get it so wrong by focusing on peppering their logo and branding on everything but Red Bull understand the subtle nature of this medium. The key to branded content is creating something that people want to watch and share but at the same time that fits in with the core values of your brand. A= Action As for actually implementing on market share Red Bull is the most popular energy drink in the world, with over 3 billion cans sold every year. In 2010, more than 4. 204 billion cans were sold in over 161 countries. 7,758 employees generated 3. 78 billion euros in turnover! Risks * Strong brands in other industry segments with strong marketing strategies * Expensive promotion costs (Kotler amp; Keller, 2012) * How they could attract new markets (take advantage that their consumers are getting old) 2. Should Red Bull do more traditional advertising? Why or why not? No, because Res Bull? IMC (Integrated Marketing Communications) strategy is effective and accurate. Red Bull does not do direct advertising, they promote sports and extreme events in order to attract their main target (young people from 16 to 29 years old). According to (Kotler amp; Keller, 2012) theory, Red Bull is using an emotional appeal message due to it is trying to create emotions to motivate a purchase. Non-personal communication channels (Kotler amp; Keller, 2012): This means that Red Bull does not use personal contact or feedback; conversely, they create atmospheres (sports events) and events (Bull Stratos) to stimulate buyers. . Discuss the effectiveness of Red Bull? s sponsorships, for example, Bull Stratos. Is this a good use of Red Bull? s marketing budget? Where should the company draw the line? Red Bull? s sponsorships have created good public opinion and goodwill. In addition, these kinds of events are directed to Red Bull? s market target: young people. Red Bull? s promotion mix is accurate due to the combination between promotion tools.