Value Creations in Organisations

Managing Operations and Marketing (Part A& B)

Table of Contents
Part A: Peas Case Study..................................................................................................................2
Introduction:....................................................................................................................................2
Critical evaluation and analysis of relevant theory and practice related to the case study:.............2
Objectives and constraints of the production processes considering the specific variables and
attributes involved:.......................................................................................................................2
Capacity management issues and capacity constraints arising during the operation of the peas
processing factory:.......................................................................................................................5
Conclusions:....................................................................................................................................9
Part B: Red Bull Case Study..........................................................................................................10
Introduction:..................................................................................................................................10
Impacts of the current marketing environment on developing growth of organization using
different frameworks:....................................................................................................................10
Marketing recommendations by considering the situational analysis:..........................................14
Conclusion:....................................................................................................................................17
References:....................................................................................................................................18
Appendix 1: For Part B – Red Bull Case Study.......................................................................22
PESTLE analysis:..........................................................................................................................22
TOWS matrix:...............................................................................................................................24

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Part A: Peas Case Study
Introduction:
The effective operations management plays the significant role in managing and producing final
products to meet the expectations and demands of the customers for long term basis. As per the
given case study it has been observed that the production manager of a large pea factory based in
coastal region of eastern England has been facing a number of challenges in maintaining the
production processes for meeting the needs of the customers. The different difficulties including
bad weather, supply-demand forecasts, supply chain demands etc. mainly creates challengesin
managing factors processes and customer services. Therefore, this particular section of the report
mainly focuses upon the detailed objectives and constraints of the production processes within
the large pea factory considering the specific variables and attributes involved. This section also
highlights the detailed capacity management issues and capacity constraints arising during the
operation of the peas processing factory.

Critical evaluation and analysis of relevant theory and practice related to the case study:
Objectives and constraints of the production processes considering the specific variables and
attributes involved:
As per the given case scenario it has been observed that the large factory of Peas in the fertile
coastal region of eastern England is facing a number of difficulties during the entire production
process. The major processes that are included in the production process of Peas are harvesting,
transportation to the factory, cleaning processing, frozen and packaging of the peas for the end
customers. In order to cope up with the weather to meet the increasing supply and demands, the
factory manager had to manage the overall process from last years. As per the given case study it
has been also assessed that the operational processes was always a great headache of the
production management because the harvesting period is usually less than the normal period of
processing time. In addition due to limited daily processing capacity, the operations manager of
the peas harvesting factory is also facing challenges to deliver quality of products for the end
customers (Schonberger and Brown, 2017). It is also observed from the case study that the Peas
factory was mainly designed and developed for producing a range of frozen vegetables such as
cauliflowers, carrots, sprouts, broccoli, and petit pois and peas. These vegetables are harvested

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and packaged in the factory for supplying it in the large retail stores and other specialized
customers to meet the specific requirements of the customers. Therefore, the operations
management should consider the various objectives and constraints of the production processes
to develop operations of its factory. The different objectives of the production processes are as
summarized below;

Producing a large amount peas to meet the different requirements of the retailers and
customers:

From the overall case study analysis it is found that the operations management of the Peas
factory is facing a number of difficulties to produce a large number of peas to meet the
requirements of the retailers and customers of UK. Therefore, the operations management should
increase its capacity by introducing different technologies so that the organization can produce a
large of peas. In addition, the other objective of the organization is to increase the demands of
the peas among the customers to develop long term relationships with them.

Producing standard quality of peas at right pricing strategy:

From the given case study it is also observed that in recent days the management team of the
Peas factory is facing immense competitions over its competitors. Therefore, producing standard
quality of peas is another significant objective of the factory (Hitt, Xu and Carnes, 2016). By
producing standard quality of peas, the organization can maintain long term relationships with
the large retailers across the UK. Moreover, this particular objective also can help the operations
manager to maintain the right pricing strategy by delivering the quality of products for the
customers.

Improving technologies for managing the production processes:

Improvement of the equipment by increasing technology is another important objective of the

organization. By adopting different types of advanced technologies, the operations management
team can effectively manage the overall process of production. From harvesting to delivery of
the products, the technology would make the entire process easier. The technologies also would
help the marketing the team of the Peas factory to identify and forecast the sales growth and
operations in future. In addition, the advanced technology also can help to maintain long term

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sustainability of operations by improving packaging of the products. Therefore, this is one of the
most important objectives of the Peas factory.

Introducing a wide range of frozen vegetables:

From the given case study it is identified that the different competitors of the Peas factory offers
a range of frozen foods including pies, pizzas, gateaux etc. to attract long term relationships with
its targeted customers. From the given case study it is identified that there is increasing demands
of frozen vegetables across the globe which also can increase organizational sustainability and
profitability across the UK (Walters, 2014). Therefore, in future the Peas factory also aims to
produce a wide range of frozen vegetables for increasing its market share and profitability.

Improving quality of output to increase profitability:

From the overall given case study it is also identified that the attributes of quality output is
another important factor of the Peas factory through which the organization can recruit a number
of skilled resources for understanding the market. By improving the quality of output
incorporating the different marketing operations and promotions, the organization can increase
profitability. Therefore, improving quality of output is another important objective of the Peas
factory through which the organization can increase profitability.

On the other hand, the different constraints that can pose difficulties in managing the process of
production are as summarized below;

Limited capacity of the productions:

The limited capacity of the production is one of the significant constraints of the production
process for the Peas factory. From the entire case study it is observed that that the Peas factory of
east England is facing a number of difficulties in managing the entire operations including
harvesting, transporting, cleaning, processing, frozen and packaging due to limited capacity in its
production process (Sterman, Linderman and Bendoly, 2015). The increasing demands with the
limited production capacity can create constraint for the Peas factory to meet the increasing
demands of the customers across the UK.

Weather:

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From the overall analysis of case study it is observed that bad weather also be a significant
constraint of the production process. Due to bad weather, the demands of the products cannot be
forecasted. In addition, the bad weather also affects the operations of the process of Peas factory
such as cleaning transporting and packaging of the products for customers. It is also identified
from the case study due to bad weather, the harvesting period is become sorter thus, it create
pressures on the limited number of labors to accomplish the entire process in an limited
timeframe.

Cooperation between factory and marketing:

The poor coordination and cooperation between the operations manager and the marketing team
can be considered as another significant constraint which also have created problem for the
production process. It has been observed from the given case study that the lack of coordination
between the operations management team and the marketing team has affected the organization
to meet the increasing demands and requirements of the large retailers across UK (WOLNIAK,
SKOTNICKA-ZASADZIEN and ZASADZIEN, 2017). It is also found from the report that the
due to lack of communication, the production manager and operation management team cannot
forecast the appropriate demands and its future to meet the need of the customers.

Planning of pea business:

Improper planning of the Pea business is another significant constraint of the production process
which also may affect the entire profitability and performance of the organization. The
organization should consider a number of advanced technologies with different equipment
through which it can help to assess the different situations of weather. The advanced marketing
tools and techniques also can increase the performance and capacity of the Peas factory to meet
the requirements and demands of the different largest retail sectors of UK. The organization also
should involve the marketing team in the planning process through which the marketing
managers can identify the scopes and opportunities of producing the frozen foods to maintain
long term relationships with the customers of UK.

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Capacity management issues and capacity constraints arising during the operation of the peas
processing factory:
The effective capacity management planning plays the critical role within organization for
determining the requirements of resources to meet the demands of the customers. The capacity
planning is broadly categorized into three types such as long term capacity planning, medium
term capacity planning and medium term capacity planning. The capacity management planning
mainly includes the plans with plant capacities, planning with production technologies,
operations mode and method of productions and supplier’s plan and their integration. In addition,
the capacity planning also includes planning on inventory policy, labor-employment level, and
facility modifications and outsourcing planning. However, the operations management of the
organization also may face a large number of difficulties in managing capacity of the
organization (Slack and Brandon-Jones, 2018). The operations management of the Peas factory
also have identified different capacity management issues that have created many problems for
the Peas factory to deliver quality of output for the organization. The different capacity
management issues faced by the operations manager during the operations of Peas factory
processing in factory are as summarized below;

Limited daily processing capacity:

From the given case study it is observed that the Peas factory is facing issues with the limited
daily processing capacity. During the harvesting period, the operations manager mainly had to
face a lot of challenges to manage the entire process of harvesting, transporting, cleaning, frozen
and packaging. This particular capacity management issues have large impact on meeting the
demands and needs of ten customers during that period. In addition, the limited daily processing
capacity also could not meet the targets of the capacity of the organization. This also may impact
on producing quality output to meet the increasing demands of the customers.

Limited number of skilled workers:

From the overall case study analysis it is also observed that limited number of skilled workers
also can create difficulties for the organization to harvest and produce a wide number of Peas to
meet the increasing demands of the customers. The lack of appropriate skilled and efficient
workers cannot affect the organization to meet the target objectives of the organization (Zhou,
Secomandi and Smith, 2019). In addition it is also identified that due to limited number of

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human resources, the management cannot develop proper planning to produce maximum quality
output from the production process.

Lack of advanced technologies and tools:

This is one of the most significant capacity management issues that have been faced by the
operations management of the Peas factory. From harvesting to cold storage and delivering of
the quality Peas to customers required a number of advanced technologies and tools. The lack of
appropriate technologies have affected the management to produce a large number of quality
output. The performance and capacity of the production process also can be increased by
adopting different new advanced technologies in production process.

Coordination between the suppliers and the factory:

The capacity management of an organization also depends upon the coordination between
suppliers and factory. The forecasting of the demands and peas planning should be prepared by
the marketing team by maintaining appropriate coordination with the suppliers. The overall
coordination between the operations management, marketing management team and suppliers
can maximize the output from the production process (Gao, Zhou and Chen, 2016). However, the
operations management of the Peas factory has been facing the capacity management issues due
to poor coordination between the marketing management and the suppliers. Therefore, effective
coordination between the operations management and suppliers can increase capacity of the
organization.

Lack of appropriate market forecasting for identifying the customer demands:

It is also identified from the given case study that poor market forecasting is another significant
capacity management issue faced by the operations management of Peas factory. It has been also
identified that lack of market forecasting has affected the organization to maintain it quality of
output. Appropriate market forecasting can enable the production manager top produce a wide
number of products to meet the requirements of the customers. The lack of appropriate market
forecasting also increases capacity management issues due to poor coordination between supply
and demands of the quality products for the large number of retailers across the England.

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However, the given case study also shows a number of capacity constraints arising during the
operation of the Peas processing factory. The different capacity constraints in the operational
process of Peas processing factory also have strong impact on meeting the quality expectations
for the large retailers across the UK. The different capacity constraints that are arising during
the operations of Peas processing factory are as summarized below;

Weather constraints:

From the overall given case study it is observed that the summer rainfall is one of the significant
factors of managing operations of the peas processing within factory. The weather of east of
England is mainly pleasant in terms of summer rainfall in comparison to other parts of England
to harvest and cleaning of the crops. However, the amount of rainfall is not same in every year
which largely impacts on the harvesting and cleaning of the crops (Martínez-Costa, Benedito and
Corominas, 2014). The rainfall less than 75 mm during the July and August in the east England
region may hamper the overall operational process of peas. Therefore, the weather for growing
peas and proper planning of the peas are very important. Sometimes, the weather constraints may
largely hamper the Peas factory.

Hygiene constraints:

As per the given case study it is observed that the operations management team of Peas
factorymaintains stringent quality checks in every batches of peas processing. The quality checks
are done in three different places of the operational process which are in-process quality check,
quality checking at the freezer output and quality check after repackaging. Due to capacity
constraint, more than 30% peas can be quarantined into the cold storage. Therefore, the hygiene
of maintaining possible capacity and quality also can be recognized as another important
constraint arising within the operations of peas processing factory.

Equipment and machinery constraints:

It is also observed from the given case study that due to lack of appropriate equipment and
machinery for harvesting, processing and cold storage, the operations management of the Peas
factory is facing a number of difficulties. It is also observed from the case study that adequate
equipment and machinery can increase capacity of the organization to produce quality of peas for
the large retailers of UK (Zschorn, Müller and Ivanov, 2017). Therefore, the inadequate

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equipment and machinery products are also the significant constraints of the operations
management to process the operations.

Skilled resources constraints:

From the given case study it is also observed that the production management had admitted that
by increasing skilled resources, the organization can produce a large number of quality output
within the limited time frame. The limited capacity is one of the significant problems faced by
the Peas factory to produce a wide number of quality products for the customers of UK. The
operation management has hired different contractual and permanent skilled staffs to handle the
pressure during the period of harvesting time. Therefore, the lack of skilled and efficient
personnel during the harvesting period time may create another constraint for the organization
which may hamper the productivity and growth of the Peas factory.

Packaging constraints:

From the overall analysis of the case study it has been identified that different customers have
different types of demands regarding packaging of the products. The packaging of the products
also helps in attracting a number of customers. However due to lack of coordination between the
marketing team, supplier’s departments and operations management, the organization cannot
analyze the demands and expectations of the customers regarding packaging of the products
(Lagemann and Meier, 2014). In addition, the unskilled resources also may create difficulties to
make packaging constraints for the organization to deliver quality of Peas products for the
customers.

Cold storage constraints:

From the overall case study analysis it is also observed that due to huge pressures during the
summer session 30% of the peas are quarantined due to poor quality or other reason. However
due to lack of adequate cold storages, the operations management had to face difficulties in
managing the process of operations. Therefore, it can be said that the capacity of cold storage
constraints also may create problems for the organization to produce quality of Peas for the
customers.

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Conclusions:
From the entire analysis it is evident that operations manager plays the critical role within any
organization to manage the quality and quantity of products to meet the requirements of
customers. As per the given case scenario, the Peas factory has faced a number of capacity issues
to maintain quality of the peas for the large number of customers. This particular report has
critically analyzed the detailed objectives and constraints of the production processes. This report
also has identified the capacity management issues and capacity constraints during the operations
of Peas factory.

Part B: Red Bull Case Study

Introduction:
This particular part of report mainly illustrates the current situational analysis based upon the
given case study of ‘Red Bull’. Considering the current marketing environment, PESTLE and
TOWS matrix, the impacts of both negative and positive environmental factors on managing
operations of Red Bull in different market also will be discussed in this part of the report. This
report also highlights the potential marketing recommendations based upon the findings from the
current situational analysis of Red Bull by considering proper justification. This report also
highlights the overall summary of findings from the marketing operations of Red Bull.

Impacts of the current marketing environment on developing growth of organization using

different frameworks:
According to the given case scenario of Red Bull it is observed that over the last few decades,
the company has experienced a number of challenges in expansion of its business in different
countries like Austria, Germany, Hungary, US and UK. The licensing issues, regulatory issues
and branding issues etc. have affected the brand image of Red Bull in different countries.
Howeverby overcoming the different challenges in different market, the Red Bull has gained the
market leader in the energy drink industry producers across the globe. As per the given case
scenario, the modern formula of Red Bull was established in 1984 in Austria but later in 1962s, it
was the energy drink sold by pharmaceutical company to boost the energy of truck driver and to
treat jetlag. Mateschitz was one of the partner to formulate the modern Red Bull who faced a lot
of challenges to develop appropriate slogans, logo and branding (Kunz, Elsässer and Santomier,

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2016). Later the company expanded its business in Europe, UAE, Australia, Portugal, US, UK
along with 130 countries across the globe. Howeverusing current market analysis, PESTLE and
TOWS, the different positive and negative impacts of marketing environment on the business
operations in different countries are as explained below;

Facing challenges in making food and beverage license and regulations in different
countries:

From the given case scenario of Red Bull it is observed that the company has faced a number of
challenges in getting licenses of selling high energy drinks in different countries like Austria.
Most of the countries did not allows the Red Bull to sell its products without any scientific tests
of nutritional value and its impacts on the human health. Moreover, in recent days the different
types of government regulations on selling the energy drink products also may create negative
impact on operations of the organization across the global market.

The stability and instability governed policies in different countries:

It is also identified from the given case study thatdifferent stable and instable government
policies of the emerging markets like US, UK, India, Russia and China have created large
positive or negative impact of sales and growth of the Red Bull. For example, the stability
ofpress freedom, advertising policies and government restrictions on health and safety of
consumershave affected the operations of Red Bull in different countries in positive and negative
way (Chionne and Scozzese, 2014). Moreover, the stable policies of the countries also have
created positive impact on managing operations of Red Bull in different countries.

Increasing demands of energy drinks in different countries:

As per the given case study it is observed that in 2010, around 4.2 billion of Red Bull cans were
sold across world which represents the increasing of 8% from previous year. The increasing sales
figures in different countries including Turkey 86%, Brazil 32%, Germany 13% and US 11%
have showed the increasing demands of energy drinks across the globe (Vásquez and Escamilla,
2014). Therefore, the increasing demands of the energy drinks across the countries have
increased positive impacts on operational growth of Red Bull.

High inflation rate and high costs of raw materials in different countries:

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From the overall given case scenario it is also identified that the economic ups and downs across
the also has affected the operations of Red Bull across the globe. It is evident from the given case
study that the high inflation rates with high costs of raw materials in some countries have
significant affected the operations of Red Bull. On the other hand, the stable economic growth
and high interest rates in different countries have increased the sales of energy drinks in most
developed countries. Therefore. By analyzing the current economic factor analysis using
PESTLE it has been observed that the economic factors have both positive and negative impacts
on sales and operations of Red Bull.

Global economic crises in 2009:

From the given case study it is evident that the sales growth, profitability and company
performances have largely affected by the global economic crises in 2009. Based upon the
stability of economicfactors in different countries, the company also has
achieveddifferentopportunities to achieve growth and success of the company (O’Neil, 2014).
However, from the given case study it is observed that economic crisis in 2009 had directly
affected the sales in different countries. Therefore, the global economic crises have brought
many changes in organizational operations in different countries.

Premium pricing energy drinks:

From the overall given case study and by assessing the internal factors of the company using
TOWS matrix it is observed that the premium pricing strategy is one of the greatest weaknesses
of the company. Due to higher pricing strategy, the company cannot achieve much growth in the
developed countries. The premium pricing strategy also has negatively affected the company to
increase its sales among the different types of customers. On other handby setting the premium
pricing strategy, the Red Bull also has been able to maintain its quality of products to attract the
number of customers.

Increasing lifestyles and modernization across the globe:

Using the given information and PESTLE analysis of the Red Bull it is observed that social
status and lifestyles are closely associated with the sales and operations of Red Bull in different
countries. For example, the countries with high income, rich culture and high social status can
afford the premium pricing energy drinks like Red Bull (Andreea and Anca, 2014). On the other

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hand, the developed countries have lower social status which has negative impact on sales of the
energy drinks.

Changing tastes of the customers and increasing competitors across the globe:

As per the given case study and TOWS matrix analysis of Red Bull it is observed that changing
tastes and increasing health conscious peopleare creating significant threats for the Red Bull in
the global market. Though in order to meet the rapid changing tastes of the customers, the Red
Bull has introduced different flavors in energy drink such as original, sugar free, simply cola and
Red Bull energy shot but the increasing rate of competitors in the energy drink industry have
affected the operations of Red Bull in different developed and developing countries. The
increasing health consciousness among the people has created positive impact on increasing
popularity and sales of the Red Bull across the global market.

Appropriate targeting strategy for Red Bull:

According to the case study it is evident that the Red Bull has used different viral marketing
strategies to target the young adults between the age group 16 and 29 including urban
professionals, club goers and post-secondary school students (Bremser, Walter and Goehlich,
2018). This particular target marketing strategy has supported the marketing manager to expand
the operations and sales of Red Bull across the global market. Moreover, this appropriate target
marketing strategy has created positive impact on operational growth of the Red Bull.

Strong social media promotions can increase sales:

By analyzing the market industry using PESTLE analysis it has been identified that the
marketing manager of the Red Bull uses hybrid marketing strategy inclusive of different types of
marketing strategies to attract the target customers. The use of both offline and online marketing
strategies using social media promotional messages have helped the Red Bull to convey clear
message with the consumers. The different types of cartoons with red bull logo also can increase
the brand identity among the customers across the globe.

Failed to produce sustainable packaging:

As per the given case study and PESTLE analysis of Red Bull, it is observed that the company is
failing to meet the regulations and laws of sustainability in different countries which have

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affected the expansion strategy of the organization. Moreover, failing to follow the legal
requirements in different countries also has damaged the reputations of the company (Measham,
O’Brien and Turnbull, 2016). It is also observed from the given case study that the company also
has failed to mention in the label about number of ingredients and their nutritional value. This
also has created a bad image for the company in the world.

Facing the challenges with recycling issues:

From the TOWS matrix analysis and current situation of Red Bull, it is observed that waste
disposal and recycling issues are most issues for Red Bull. The different environmental agencies
across the globe has fined the company due to these recycling problems. After 2010, the
company started to use aluminum cans which are 100% recyclable also can reduce the different
recycling issues. However, the highest number of fines due to failing in meeting the recycling
acts also has damaged the brand image of the company in the competitive market.

Marketing recommendations by considering the situational analysis:

The prime purpose of the current situational analysis is to identify the current industry,
competitions in the market and opportunities for the companies to grow further in the
competitive market. The previous section has critically analyzed the different findings based
upon the current situational analysis on the case study using PESTLE and TOWS matrix. Both
the positive and negative impacts of such situational factors have been analyzed in the previous
section. This particular section will analyze the recommendations and justification of the
recommendations through which the Red Bull can improve its marketing strategies in achieving
growth, performance and success in the current competitive market. Therefore, the different
recommendations based upon the findings on situational analysis are as explained below;

Increasing product line to develop hybrid energy drink products for the customers across
the globe:

From the given case study of Red Bull and the current situational analysis of the company it is
observed that the company is facing challenges with its limited number of products. This has
directly affected the sales growth and performance of the company in the international market.
The competitors in the sports drink and energy drink industry provides a wide range of varieties

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with different flavors and tastes. Although the Red Bull has introduced different flavors for
attracting the customers but the product line of the company is limited (Elitok, Ayaz and Atıcı,
2016). Therefore in order to achieve competitions over the other energy drinks and sports drinks
across the globe, the company should increase its product line by developing the hybrid energy
drink products. There are a range of energy boosting hybrid drinks such as fruit juice, tea, coffee,
bottled water etc. so the company should increase its product line by launching new hybrid
products for attracting different level of customers. Moreover, the organization also can alternate
the nutritional value by changing the amount of caffeine, taurine and ginsengin their energy
drink products.

Expansion of the business operations in the emerging markets of the world:

From the given case study analysis of Red Bull it is observed that the company has faced a lot of
challenges to get license of selling energy drink products in the developed countries like Austria,
US, UK etc. This also has affected the brand reputation and brand image of the company in the
international market. It is also observed from the overall findings that the marketing manager of
Red Bull has faced a number of challenges in terms of regulations and taxation policies in
different developed countries (Quinlivan, Leverittand Desbrow, 2015). Therefore, the
management team of the Red Bull should focus upon expansion of its product in the emerging
markets including Russia, India, China, Mexico etc. to increase the emerging demands of
theenergy drink products in such countries. The emerging markets of such countries also can
help the Red Bull to increase its further product line by assessing the customers. Based upon the
demographics, disposal incomes and demands, the Red Bull also have opportunity to expand
their operations in such countries. This also can increase the business operations for Red Bull in
the emerging markets.

Developing production infrastructures in the international market:

From the given case scenario and current situational analysis of the Red Bull it is observed that
the company is facing different issues in supplying its products across the international market.
In some cases, the increasing costs of shipping and fluctuation of exchange rates have impacted
on the pricing strategy. This has strong impact on business operations of Red Bull across the
international market. In order to avoid such problem, the marketing management of the
organization can develop their production infrastructures in different international

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countries(Cavka, Martinovic and Drenjancevic, 2015). This can help the business organizations
to source product from local market which also can reduce the price of products. By developing
the product infrastructures across different international markets, the organization can achieve
greater flexibility on price which also can provide opportunities for the organization to expand its
operations across the international market.

Developing strategic alliances with different international distributor:

It is also observed from the case study analysis that Red Bull is also facing issues with
developing its business across the international market due to poor distribution network and
issues in policies.From the given case study it is also identified that the company also has faced a
number of challenges in developing partnerships and agreements with the different distributors
of international countries. However in order to overcome the problems with engaging a number
of partners across different international countries, the management of the Red Bull can develop
strategic alliances with the different international distributors to produce the different types of
energy drinks for the potential customers. The company already has developed strategic
partnerships with different multinational companies such as Cadbury-Schweppesin Australiato
expand its business in the international market. However, the international marketing team
should more focus upon developing strategic alliances with different international companies of
the world to avoid the issues in entering into the new competitive market.

Improving marketing strategies to build long term relationships with the international
customers:

Over the past few years, the Red Bull has improved its marketing strategies to attract a number
of targeted people across the international market using different latest technologies and
tools.From the given case study of Red Bull it is identified that in most of the countries due to
strict regulations, they could not even marketing and advertising of their energy drink products.
It is also observed from its marketing strategy that the marketing manager mainly has targeted
the young people between 16 to 29 years to boost their energy (Costa,Hayley and Miller, 2014).
The club goers, post-secondary school students are the potential customers of Red Bull but this
particular targeted strategy did not work for the potential people of emerging countries.
Therefore, the marketing manager should change the targeting strategy for targeting the
customers of different countries. Furthermore, the marketing manager of Red Bull also should

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introduce different innovative ideas in improving marketing strategies to attract more customers
to develop long term relationships with them.

Increasing more focus upon social media marketing strategies:

It is evident from the given case study that the marketing manager of Red Bull has devised
different types of hybrid marketing strategies inclusive of viral marketing strategies, online,
offline, PR etc. which have successfully increased the brand value of the company in the
competitive international market. However, it is also observed from the given case that the
company faced a lot of challenges in developing promotions of its energy drink products.
Therefore, the adoption of effective social media marketing strategies can help the organization
to increase its brand image by reducing the negative image across the globe (Prins, Lovalekar
and Welton, 2016). The social media marketing strategies also can help the organization to
directly interact with the customers based upon their needs and expectations. In recent days, the
company has introduced different promotional programs through cartoons and videos to promote
their products for the potential customers.

Increasing more focus upon environmental sustainability by improving packaging:

Sustainability issue is one of the biggest challenges faced by the Red Bull in different
international market which has affected its brand images. Different environmental regulation
agencies have fined lot of times for not maintaining the sustainability issues. Therefore, the
marketing manager should more focus upon development sustainable packaging for reducing
negative impacts on environment. The marketing manager should more focus upon developing
different ethical and environmental policies to avoid licensing issues. Though the company
claimed that aluminum cans are 100% recyclablebut also may pose risks for the environment and
ecosystem. Therefore, the Red Bull should more work on developing its packaging of products to
mitigate the environmental sustainability issues.

Redeveloping the pricing strategy for targeting the emerging market:

This is one of the significant weaknesses that have been found throughout the case study. The
premium pricing strategy of the Red Bullhas negatively affected in different countries by
reducing its numberof sales in different countries. However in order to more focus on the
emerging markets like India, Russia, China, the marketing management of Red Bull should

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redevelop its pricing strategy by revising its price. The redevelopment of the pricing strategies
also can help the organization to target a wide number of young population across the different
emerging market (Ali, Stapleton and Joshi, 2015). In order to improve the product line, the
company also should enter into the food and beverage industry. The wide number of healthier
product variants can help the organization to enter into different emerging markets.

Conclusion:
From the entire analysis it has been observed that Red Bullhas achieved a significant market
positions in the current energy drink market but the company can grab more opportunities in the
emerging international market through adopting appropriate marketing strategies. This particular
report has critically analyzed findings from current market of Red Bull using case study,
PESTLE analysis and TOWS matrix. This report also has analyzed how the company can
improve its operations in the international market using different recommendations.

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Appendix 1: For Part B – Red Bull Case Study

PESTLE analysis:
Political factors:

The political instability of any country may create large impact on operational growth and
expansion of any organization like Red Bull across the globe. From the given case study it has
been observed that the different types of government restrictions, regulations on selling energy
drinks, policies on consumption of energy drinks and food and beverage acts of different
countries have restricted the operations of Red Bull in different countries. The policies and
regulations on disclosing of nutritional value and recycling acts also have affected the company
in different developed and developing countries. On the other hand, the countries with stable
policies like UK, US and Russia etc. have given licensed to Red Bull for selling their products in
those countries.

Economic factors:

From the given case study it is observed that the Red Bull has witnessed different ups and downs
from 1982s with the stable and unstable economic turbulences in different developed and
developing countries. The increasing inflation rates and rising costs of the raw materials have
affected the company to develop their operations across the globe. In accordance with the case
study, the company witnessed a decline sales of 1.5% due global economic crisis in 2009. The
economic growth in the developed countries during the recessions have saved the company.

Socio-cultural factors:

The increasing growth and operations of the company strongly depends upon the social status,
culture and lifestyle of the people. The changing tastes, improving lifestyles and increasing
health conscious people are increasing the demands of energy drinks across the globe. This has
created opportunities for the Red Bull to increase its sales and operations in different countries.

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On the other hand, the increasing health conscious also has developed threats for the
organizations in increasing operations across the different countries.

Technology factors:

As per the given case study it is observed that the Red Bull has adopted the hybrid advertising
and promotional strategies by utilizing both online and offline market channels. The extensive
use of social media technology has increased the brand image of the company among different
potential customers across the globe. Moreover, the use of websites, ecommerce channels, CRM
system, database management system and ERP also has increased opportunities for the
organization to develop its growth across the globe.

Legal factors:

From the given case study it is identified that the Red Bull faced a lot of legal issues in selling
the energy drinks in different countries. Even the company also cannot meet the legal food safety
guidelines of some companies which have increased threats for the organization to manage its
operations across the different countries.

Environmental factors:

As per the findings from the case study it is also observed that the Red Bull has faced a number
of waste disposal and sustainability issues in different countries. Different environmental
agencies have fined the company many times which has damaged the brand reputation of the
company. The company should more work on its sustainability development strategy to improve
its recycling system.

TOWS matrix:

Internal strengths: Internal weaknesses:

 Strong global image.  Increasing issues in
 Strong PR and licensing in different
marketing team countries.
 Effective suppliers  Facing a number of
and delivery channels sustainability issues.

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 across the globe.  Premium pricing
strategies
External opportunities: SO: WO:
 Increasing market  Increasing global  The company should
demands of energy market share with the more on improving its
drinks. application of strong nutritional value to
 Increasing opportunity brand image and avoid licensing issues
to expand its increasing demands. in different countries.
operations across the  Expanding its market  The organization can
globe. operations and adopt joint venturing
 Increasing lifestyles increasing product partnership strategies
and increasing young lines by the help of to enter into the new
population across the strong marketing team market by overcoming
globe. and PR team. the sustainability
 Improving social issues.
media marketing  Focus on developing
strategy by different product lines
considering the with different pricing
strategies to meet the
demands of different
range of young
population across the
globe.
External threats: ST: WT:
 Rising competitions in  Improving target  Follow the
the energy drinks marketing strategy government
market. through strong PR guidelines and
 Rising price of the and marketing regulations to avoid
raw materials team to get rid of licensing issues in
 Increasing rising different countries.
complexities in competitions.  Introduce more than

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 taxation, regulations  Developing strong one product lines to
of different countries relationships with avoid sustainability
a number of issues and pricing
suppliers to avoid issues of raw
the issues of rising materials.
prices of the raw
materials.

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