INTRODUCTION TO THE PRODUCT:

Red bull is an energy drink company which is an Austrian company introduced in 1987 red bull
is a drink it is inspired by a Thailand drinks which matches the taste buds of the western people.
Red Bull drink created a brand slogan saying that Red bull gives you wings which is a myth.
This drink contains caffeine, sugar and artificial flavors. This drink has an alcohol percentage in
it. Energy drinks generally consumed widely in western countries as it gives instant energy
which boosts the body which is in a dull state. Each Red bull container comes in the combination
of blue and grey body with a red company symbol on it. Each container of the drink gives 45
calories added with b plus vitamins, artificial preservatives etc.

VISION:
“Red Bull GmbH is dedicated to upholding Red Bull standards while maintaining the leadership
position in the energy drinks category when delivering superior customer service in a highly
efficient and profitable manner. We create a culture where employees share best practices,
dedicated to coaching and developing our organization as an employer of choice.”

MISSION:
Red Bull's mission statement encourages the belief that drinking Red Bull would allow people to
do something they never thought imaginable. The term "wing" is used to describe the strength
and resources that Red Bull provides to its customers. Drinking Red Bull, according to the
mission statement, will help you come up with new ideas.

CULTURE:
Bullying and embarrassment are not tolerated in the workplace. Employees are therefore
appreciated and admired by their peers; they regard others as though they were kin, and fairness
is cherished. Furthermore, since the corporate atmosphere is one of high openness, workers can
inform their managers about new ideas and developments, and they can interact freely and
without barriers.

INTERNAL OR MICRO ANALYSIS:

Red Bull is basically a Youth sporting energy drink where most of the customers are young and
can be used in sports which requires instant boosting at performance.

CUSTOMER:
The Customers of Red bull are Young people who are aged between 18-35. The drink can be
attracted by sport marketing and sports persons. Moreover, most of the targeted customers of the
energy drink play sports or follow sports or sports persons.

COMPETITORS:

The Major competitors of energy drinks are the Soft drink companies. Although they differ in
their nature of the products, brands like coca cola, Pepsi and other soft drinks are recommended
to the young people and regularly preferred. The other reason is the pricing of the product so the
soft drinks can be considered as competitors. Monster is a major and tough competitor for red
bull in the field of energy drinks. Red bull is listed second in the race with monster.
COMPANY:
The major strength of its company is its marketing strategies and funny slogans, advertisements.
And the major weakness is the pricing and limited availability of the drink. The production and
availability of the drink is comparatively to the tough competition of the soft drinks companies is
very low. Because if there are 10 soft drink bottles available in a store then there will be just 2-3
red bull drinks available. Moreover, the variants that are available are also limited which only
suits the western flavors. This discourages the Asian countries as their requirements will be
different.
Although the company has good profit sharing, due to the high pricing of the drink, the product
failed to reach the people as it should.

The company is popular in social media due to its innovation and satirical ads with its slogans.
Red bull is referred to as a synonym to energy and described in the social media platforms.

Comparioson with Monster Energy

Red Bull Monster Energy
Segmentation Business class, working class It maintains a morefolds value
executives, students. Proposition.

Target It usually targets in the younger Millennial males between the

ages 18-34
market

Differentiation It is an Energy Drink It is a Energy drink beverage

Positioning Position in all types of market Position in all types of market

Product Redbull Zero, Sugar Free, Monster Hydro, Low sugar,

Energy Drink etc. Watermelon etc
Price High price High Price
Place Everywhere Everywhere
Promotion Everywhere Everywhere

EXTERNAL MACRO ANALYSIS:

POLITICAL FACTORS:

Political factors, government policies always affect the businesses. The government framework,
government stability and encouragement towards the energy drinks plays a vital role in affecting
the sales of the product. If the government shows encouragement towards the energy drink,
people will show more interest or if the government resists the people showing the negative
impact like health threat or indicate any kind of illegal exploitation then the company sales,
imports and exports etc.

ECONOMICAL FACTORS:
The economic factors of the country like inflation, prices, availability of raw materials, cost of
production etc. affect the businesses. For example, if there is no availability of raw materials in
the country then the import cost of raw materials will increase the price of the product. High
priced products are tough to sustain in the markets of developing and under developing
countries. Since we know that the red bull product pricing is already a limitation, this factor may
have a negative impact if not managed properly.
SOCIAL FACTORS:
Society is a combination of rich, poor and middle-class sections. When the people in the country
are rich, they can afford the product which increases the sales. But what if it is the poor nation
then this product becomes a luxury good which discourages the sale overall.
But nowadays due to the modernization, the energy drinks are considered to be a new trend and
need for a busy modern world for instant energy in work.
TECHNOLOGICAL FACTORS:
Technology is the most important for any business. From production to marketing everything is
dependent on the technology. Better the technology better the product. Use of technology wisely
is also one of the marketing technologies to increase sales. Technology also helps the energy
drink to understand the local standards to curate the product based on their taste buds. Many
beverages have customized their products according to the country's needs, cultures and food
habits.

ENVIRONMENTAL FACTORS:
Availability of natural resources and raw materials for the production in the country has a major
impact on the beverage. For making a beverage, water is the important material so the factor
needs a water plant. If the country has a drought or is scarce in water then the government
discourages the business. Moreover, the cost of production will be high which increases the
product value also. Similarly, if the company don’t dispose of its waste in an appropriate way, it
may cause environmental pollution which spoils the brand value, name and fame of the product.

LEGAL FACTORS:

If any one of the above factors were violated, then it will raise legal issues in the nation.
Democratic nations take the rights of the people seriously, if the business implied any threat to
the nation, the business will fail in that country. Compliance with the local laws is mandatory for
international businesses. Inappropriate and false promises, dangerous or unapproved use of
chemicals in the food drinks raise serious issues in the courts.
SWOT ANALYSIS:
Strength
 Within the industry, they have a
certain level of respect and status.
 Player with the upper hand
 Massive net revenue and volume
growth
 A large regional footprint
Weakness
 Inability to compete in the broader
soft drinks industry
 Market share has shrunk over the past
five years
 Concentrated production facilities
 High shipping and production costs

 High sugar content

Opportunities Threats
 The Asian Pacific Market  Dominance of the Red Bull energy
drink brand is threatened by the entry
 The Chinese Market of Coca Cola into the industry

 Diversification of the basic product  Growing health concerns among the

portfolio public

MARKETING STRATEGIES (STDP):

1. SEGMENTATION:
The Segmentation of Red bull includes various of its flavors or variants which are
namely, Red Bull sugar free, Red Bull Flavored (fruity, tropical and other flavors), Red
Bull Energy Drink, Red Bull Simply Cola. Markets are segmented geographically by Red
Bull in the following ways:
 Red Bull's target market is semi-urban and urban areas, as this is where the
majority of their customers are.
 Class-A and Class-B cities, also known as major cities, are two types of cities.
 Red Bull is marketed throughout the different regions.
 2. TARGET:
Red Bull targets single based customers who are busy, workaholics, professionals and
have busy lifestyles. Customers age group differences but most of the personalities and
loyalties are constant as the customer needs instant energy, easily available, and stays
loyal to the product.

DEMOGRAPHIC:
Demographics include age, gender, income, occupation of the customers that enjoy this
product and buy regularly. According to the statistics, the people at the young age
between 18-25 enjoy the beverage widely. Income levels of the customers are high, and
occupations include students, employees and professionals.

3. POSITIONING:
Positioning implies the selection of marketing mix that the company wants to use in its
strategy. Red bull is famous for its positioning strategy where it uses psychiatric and
emotional uses of drinking the beverage. For example, as mentioned above it gives
instant energy, refreshing and makes the mind to revitalize itself. It surrounds the idea of
“Vitalization mind and body “which is the same idea that it uses in its slogan “Red bull
gives you wings

MARKETING MIX AND RECOMMENDATIONS:

PRODUCT:
Red bull is an energy drink which comes in limited flavors like cranberry, kiwi, blueberry,
tropical fruits etc. And one sugar free range. This is one of the major limitations that is discussed
above. Moreover, the variants match the taste buds of westerners and are not made with Asian
requirements. The product also comes in a sugar free range which is unique and can serve
diabetic patients.

PRICING:
The Pricing of the product is high compared to other dominated soft drinks. Since the pricing is
also disadvantaged, the company should think of other marketing strategies like cutting the cost,
discounted price, mini bottles, trial packs to make customers taste the product so that they can
buy regularly.
PROMOTION:
Among the promotional blend components used by Red Bull are public affairs, advertisement,
and product promotions. Red bull has its best of promotion and funny jokes. Its doodle
characters in the advertisements, the concepts and more importantly the slogan “Red Bull gives
you wings” is most popular in tele media and social media. So, Red Bull has the best of its
promotion.
PLACE:
Red bull is available in most of the supermarkets. The Red bull makes the packaging attractive,
safe and easy to use and store. Currently, according to 2018 statistics, Red Bull is established in
117 countries with over 60 Billion cans sold.
 x

Fig. PLC Curve for Redbull

Redbull is still an economically growing company pertaining to market factors and the current
market conditions.
PRICING AND STRATEGY:
The price approach is similar to that of a business leader, but it is dependent on the pricing of
competitors. They will easily charge a premium for their goods because they are at the top, and
consumers can purchase them for their standard. Since Red Bull was the first in its genre, it
would always be the customer's first preference, and demand will never dwindle. It is possible to
employ a premium price approach. The commodity is more expensive than its rivals. Because of
the product's consistency and advantages, consumers would pay a premium for Red Bull. The
fact that it is the world's best-selling energy drink reflects this.

DISTRIBUTION STRATEGY:
Extensive Distribution Strategy can be used because of its extensive distribution network, Red
Bull was able to distribute 5.9 billion cans worldwide in 2015. Red Bull can be seen in places
like supermarkets, convenience stores, drug outlets, and even nightclubs, pubs, and casinos. This
makes it very simple for a buyer to purchase the items. Additionally, Red Bull is often held in
Red Bull-exclusive refrigerators, enticing consumers to purchase an energy drink while out
shopping or at a pub.

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