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 Red Bull

The Anti-Brand Brand

 

BY: NAWAF ALTAMIMI

 

Introduction

 

Some say it’s too sweet. Others say, “No.” Its contents are not so pleasant. Yet Red Bull has a 70 to 90 percent of the energy drink market in over 100 countries worldwide. During the past 15 years, the drink has been copied by more than 100 competitors, but such companies as Coca-Cola and Anheuser-Busch have failed to take market share away from Red Bull. Says Red Bull founder Dietrich Mateschitz, “If we don’t create the market, it doesn’t exist.” Mateschitz’s secret to creating a $1.6 billion worldwide stampede for Red Bull lies in a highly ingenious “buzz-marketing” strategy that herds consumers to exclusive and exciting events that get high media coverage.

Red Bull supports close to 500 world-class extreme sports athletes that compete in spectacular and often record-breaking events across the globe. Mateschitz explains, “We don’t bring the product to the consumer, we bring consumers to the product.”

 So, what is the marketing communication strategy Red Bull follow? How such controversial product and be so “strong” and dominate the energy drink market for so long time? Is still seeing as energy drink or – as Mateschitz like to see it- became “away of life”. Also, how long Red Bull would survive in a very competitive market with very big names Such as Coca Cola?

 

       I.      Background:

 

Red Bull did not exist at all until 1984, when Mateschitz poured his life savings of around €400,000 into the venture, alongside his partner, Chaleo Yoovidhya, a Thai entrepreneur he knew from his work as a toothpaste and cosmetics marketing director for a German company controlled by Proctor & Gamble.

The product is an energy drink with ingredients drawn from Japanese tonic syrups, including metabolic transmitters like taurine and glucuronolactone, as well as caffeine, carbohydrates and vitamins, was launched in his native Austria in 1987.

While waiting for the official license to be issued by the Austrian Authorities, Mateschitz asked his old school friend Johannes Kastner, who use to run an advertising agency in Frankfurt, Germany, to design the can and logo. Kastner’s “Red Bull – gives you wings” slogan turned into a prophecy for the Red Bull brand, which continues to soar around the globe.

Finally, Roman Rauch, the leading soft-drink bottler in Austria, joined the team, and soon the shiny silver cans rolled off the production line.

 

    II.      Integrated marketing communications (IMC) strategy:

 

Revolutionary, Anti-brand, or Nonconformist, these are all terms that have been used to describe Red Bull's marketing approach’[1]’. Going against research negativity, Matescheitz followed what was called “buzz” marketing in colleges, universities and student ghetto areas.’[2] Red Bull’s strategy designed around the IMC practice as the foundation of all human relationships (Duncan, 2002) and concerns exchange of information, ideas, or feelings. By doing so Red Bull marketing team realized that the purpose of using marketing communications mix is to add persuasive value to their product. Yeshin (1998) defined marketing communications as “the process by which the marketer develops and presents an appropriate set of communications stimuli to a defined target audience with the intention of eliciting a desired set of responses”.’[3]

Kotler and Keller (2006,p.24) stated that:

“Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things”. Kotler and Keller (2006, p.24) identified the six major modes of IMC as:’[4]

1. Advertising

2. Sales promotion.

3. Events and experiences

4. Public relations and publicity.

5. Direct marketing -

6. Personal selling-

 

Fig.1. Communications mix. From Kotler and Keller (2006, p.19) 

 

  1. Advertising:

 

While mass media communication, especially advertising, has been criticized internationally over a long period of time for being deceptive, manipulative, offensive, and for influencing people to buy‘[5]‘, Johannes Kastner, founder of international advertising network Kastner & Partners, the agency has been working on Red Bull’s account since 1984, stated that “Red bull don't push people to do anything, do not give them ideas, but give them a product…in TV clips we never ask them to say things or give them logos. We're there to give them experiences they can't buy.”[6] More over Kastner believes that “tell people what to do or think would be aggressive, olds style marketing. It's always better to let others say how great we are”.[7]

Kastner emphasises that the Red Bull replaces its normal above the line ads with pictures or footage of previous competition participants and the branding is incidental to the main message that focuses on encouraging performers to take part.

Text Box: Fig.2. word of mouth. From Trench and Yeomans 2006, p.428.
 
Because the person-to-person channel of word of moth, particularly among friends and family, has grown in importance in recent decades (Trench and Yeomans 2006,p.428).(Fig 2) Mateschitz believed that “the rules for creating buzz (word of mouth) are astonishingly simple. Marketers need to reach the “alpha bees,” and if they like the product, they will tell other people about it”.[8](see Fig.2)

Marketing buzz and bull machine spun tales that were picked up by the press. Red Bull’s slogan “gives you wings” led newspaper reporters to print quotes from consumers like “You can get drunk and stay wide awake,”or “It’s the poor man’s cocaine.”[9]

That's not to say, Red Bull does not do traditional marketing. In the antithesis of any major's marketing plan, Red Bull buys traditional advertising last. “Only when a market is deemed mature does the company begin a media push to reinforce, not introduce, the brand. "Media is not a tool that we use to establish the market," said vp-marketing David Rohdy.

Between 2003/2004 Red Bull has invested £3m in advertising and pos in service stations and it says work will continue with category management trials using the Red Bull brand as signposting in store to drive consumers to the soft drinks and energy drinks fixtures.[10]

 

  1. Sales Promotion:

 

For a long time sales promotions have been regarded as a short-term tactical tool whose prime purpose is to encourage customers to try a brand or to switch brands. (Fill 2002, p.569). Red Bull employed the sales promotion tools intensively and directly to Youth and students. Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed. In the same ways, the sales team visits key on-premise accounts: hot clubs and trendy bars. When owners begin buying a few cases, they receive a Red Bull branded cooler and other POP items. The appeal of point-of-purchase advertising lies in the fact that numerous studies show that in many product categories consumers make the bulk of their final brand decisions in the store. One study suggested that 70 percent of all buying decisions are made in the store. In-store advertising is designed to increase the number of spontaneous buying decisions.[11]

3.  Events and Experiences:

While Red Bull relies heavily on bars night clubs and universties’ campases for its sampling events, alternative sports have also proven to be a successful product-trial arena. Part of Red Bull's strategy to target opinion formers is extreme sports. As Soft Drinks International magazine's features’ editor Annette Sessions says: ‘Red Bull has become almost synonymous with speed sports. Its much sponsorship has given it a high profile in activities as diverse as motor racing, bobsleds and aerobatic flying.[12]

Red Bull supports close to 500 world-class extreme sports athletes that compete in spectacular and often record-breaking events across the globe. Mateschitz explains, “We don’t bring the product to the consumer, we bring consumers to the product.”[13]

Today, special Red Bull events take place in Australia, Asia, Africa, North America, South America, Russia and all over Europe. The pre-event parties include professional DJs, appetizers, photogenic women and plenty of Red Bull. Some events, like Red Bull’s Flugtag, draw crowds of 50,000 people or more.

The five principal objectives of sponsorship (Jobber 2001.p 505.Fig 3) are gaining publicity, creating entertainment opportunities, fostering favorable brand and company associations, improving community relations, and creating promotional opportunities.

From his side, Kitchen (2004) pointed out that all sponsorship activity requires a marketing support budget. But the most important element Kitchen highlighted (P.95) and it might be very possible in Red Bull’s case, is that a sponsored athlete that behaves badly, or a theatre play that is not a success, may have a negative impact on the sponsor of the event.

4        . Public Relations:

When Jobber (2001, p 500) identify the PR as the management of communications and relationships to establish goodwill and mutual understanding between an organization and its public (Fig.3). Johannes Kastner agrees by saying “Red Bull is all about making friends. Not buying people. Because Red Bull became a friend, a real personality, people feel emotional towards it”.

In 2000 Mateschitz created a Red Bull subsidiary, named it Flying Bulls and purchased and restored such planes as two Corsair fighter- bombers, a twin-engine DC-6 that belonged to former Yugoslav Communist ruler Tito, a T-28-B trainer, four seaplanes, and a Bell 47 helicopter – 16 planes in all to date.

At the opening party of Hangar-7, more than 2,000 VIPs paid $600 each to walk on a 100-foot red carpet, flirt with the press, tour the hangar, enjoy a fabulous reception and witness a spectacular air show that contained 15 different aerial scenes that followed themes from Greek mythology.

At Red Bull events, journalists tend to come away with the impression that the PR team's attention is clearly on the participants for whom the event is being thrown, rather than the peripheral media types.

Kotler and keller (2006 , p32) find that many companies are turning to marketing public relations (MPR) to support corporate or product promotion, image making and accomplish many objectives (pp.500-501.Fig 3 ).

Thus, while marketing focuses on exchanges with customers, public relations extend beyond marketing to build and maintain successful relationships with stakeholders or publics.

 

  1. Direct Marketing

 

Red Bull’s distribution strategy is go-to-market principles. They slowly and deliberately open up to the main market over time, dividing each country into individual, autonomous cells. They start building small distributorships that can focus exclusively on their brand. Another important paradigm shift is the company’s focus on conceptual distribution vs. weighted distribution (figs.4 and 5 shows the difference). In other words, Red Bull views distribution as a branding tool, not just a volume outlet.[14]

Fig.4 shows the short channels Red Bull adapted in its distribution. (From lancaster,p.265)

 Fig.5 shows the long channels Red Bull avoided in its distribution.From( lancaster,p.264)

 

Kitchen (2004) see the direct marketing (Fig.4) as an interactive system forming a basis for creating and further developing an ongoing direct relationship between an organization and each of its customers individually.

In its direct marketing strategy Red Bull deploy Volkswagen Beetles with huge Red Bull cans strapped to their backs to beach, colleges, gyms, office buildings or construction sites with free samples where people might need a boost. Then Red Bull sales reps contact a small distributor and insist that he or she sell only Red Bull. The company's consistent battle plan has been to "open up" a market by securing unusual distribution, direct distribution with no intermediaries being used[15]. it piggybacked on established distributors. [16]

By using the direct marketing Red Bull aims at creating one-to-one personalized and therefore persuasive interaction with (potential) customers. In that respect direct marketing can be used as a complementary tool to other marketing communications mix tools to generate leads for personal selling, but it can also be used as a sales channel in its own.

As direct marketing has much strength, it also has limitations (Kitchen 2004, p.66). In its down side, direct marketing is perceived as obtrusive and pushy as well as the cost per prospect can be high.

6.      Personal selling

Red Bull avoided usual methods of marketing and adopted the Personal selling as the most important tool of the marketing communication mix. Fill (2002, p.377). Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed. Additionally, Red Bull work to ensure that their brand was visible on the street by:

·                 Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle

·                 Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful.

·                 Cans of the drink were also given out free to people on the street who had been identified as being in need of energy

·                 Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs.

By using the personal selling as part of the IMC, Red Bull has achieved the three distinctive qualities (Kotler and Keller 2006,p 29).

1. Personal interaction - Personal selling involves an immediate and interactive relationship between two or more persons.

2. Cultivation - Personal selling permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship.

3. Response - Personal selling makes the buyer feel under some obligation for having listened to the sales talk.

 

 III.      Marketing communication strategies:

 

To build a marketing communications strategy that reaches and influence the wider range of its stakeholders and public, Red Bull applies three main marketing communication strategies identified by (Fill 2006 p 341) as Pull, Push and Profile.

 

Red Bull used the Pull strategies to influence end-user customers, while used the Push strategies to influence trade channel buyers; finally and most importantly used the Profile strategies to influence a range of stakeholders and maintain its brand, position and image.

 

1.      Pull Strategy:

Text Box: Pull, Push and Profile strategies. From (Fill 2006 p.341) 
 
By using pick-up trucks as mobile displays, given out free cans to people on the street and given empty cans to club DJs, Red Bull’s intention is invariably to generate increased levels of awareness, change and/or reinforce attitudes, reduce risk, encourage involvement and ultimately provoke a motivation within the target group.

This approach is aimed to encouraging customers to pull products through the channels. That mean consumers go into retail outlets (shops) to enquire about a particular product and/or buy them. (Fill 2002 .p286).

 

2.      Push strategy:

 

A push communication strategy involves the presentation of information in order to influence trade channels and encourage them to take stoke. (Fill 2006, p .337). This strategy aims to push the product down through the channels towards the end-user.

Red Bull’s “decentralised” sales units were responsible for sales, marketing and distribution in their own area. Its distribution strategy contributed to the perceived exclusivity of Red Bull. When contacting small distributors, sales reps insisted that Red Bull be distributed exclusively by a dedicated sales force. If refused, they set up their own Red Bull warehouse, bought vans, painted them with the Red Bull logo, and hired their own deliverymen to distribute the cans of Red Bull.

Push strategy rely also on personal selling, trade ads, trade sales promotions and public relations.( Fill 2006 p 337).

 

3.      Profile strategy:

 

Fill (2006) say that Profile refers to the presentation of the organisation as a whole and therefore the identity is said to be profiled to various other target stakeholder audiences. Relied on a strategy of word-of-mouth or “buzz” marketing, Red Bull brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports, such as motor sports, mountain biking, snowboarding and dance music.

Red Bull also created brand experiences around other art forms, such as the Red Bull Creative Contest for which entrants created a work of art from an empty Red Bull can. Well-known contemporary artists such as Tracey Emin and fashion designer Wayne Hemmingway had been on the judging panel of the contest. In the words of event planner Adam Comey, “Red Bull is willing to invest a lot in making sure people become believers in the brand through hands-on experiences.”[17]

Normally, profile strategies do not contain or make reference to specific products or services that the organisation offers. This may be blurred where the name of a company is the name of its primary (only) product. At Red Bull events, journalists tend to come away with the impression that the PR team's attention is clearly on the participants for whom the event is being thrown, rather than the peripheral media types.[18]

The best example of that accrued On May 20, 2001 (Mateschitz’s birthday), the first Taurus World Stunt Award show was held in LA. As a politically correct gesture to his Austrian buddy, Mateschitz handed Schwarzenegger his own Honorary Taurus Award. Few people watching the star-studded award show on national television noticed the clever and subtle visual connection between the huge wings of the Taurus statue and the catchy Red Bull slogan “gives you wings.” It was Mateschitz, the subliminal image maker, who pulled the greatest Hollywood stunt.[19]

 

IV.      Is it energy drink or “way of life”?

 

Through out its marketing and communication strategy, Red Bull’s positioning was not about the product but what the buyer thinks about the product or organisation. Fill (2002 P321-322) says that positioning is not about the physical nature of the product that is important for positioning, but how the product is perceived that matters.

Mateschitz believed mystique was important to the brand identity of Red Bull. Described as “the Porsche of soft drinks,”[20] Red Bull had nicknames like “liquid cocaine”, “speed-in-acan.” Mixed with vodka, it became known as “liquid viagra” purported to have ecstasy-like properties. Similarly, a rumour that taurine was made from bull's testicles simply added to its popularity. “The rumours never hurt,” said Mateschitz. He joked, “I always have to fly to Pamplona to source bull’s testicles.”[21] The company addressed such rumors on its website, possibly helping to reinforce the product mythology.

"Mystique" comes up a lot when Red Bull is discussed by marketing experts, who seem to adore it. Red Bull's rise has also come against a backdrop of strange rumors and sinister speculation. The controversy stems from a handful of deaths in which an overload of Red Bull (sometimes in concert with alcohol) allegedly played a role.[22]

 

Marketing buzz and bull machine spun tales that were picked up by the press. Red Bull’s slogan “gives you wings” led newspaper reporters to print quotes from consumers like “You can get drunk and stay wide awake,”or “It’s the poor man’s cocaine.” One rumor even claimed that the drink contains bull testicles.[23]

 

It's all in the can. Gobé says that the sleek, silver can is Red Bull's "anti-Pepsi statement." He calls it slim, sexy, and powerful, and says that its diminutive size only bolsters Red Bull's reputation as a concentrated experience.

This myth-building strategy – and the latent uncertainty about Red Bulls’ ingredients and effect -- still works today. In his article “Liquid Cocaine”, Salon journalist Jeff Edwards concludes that “the more rumors of Red Bull’s potentially dangerous, over stimulating effects spread, the more the drink sells.”[24]

A person has many needs at any given time (Kotler,p 184) part of those needs is arise from psychological states of tension such as the need for recognition, esteem, or belonging. Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious.

Consumer decisions are also influenced by core values, marketers who target consumers on the basis of their values believe that by appealing to people's inner selves; it is possible to influence their outer selves-their purchase behavior.

Since the first stage, Red Bull designed its brand (name, term, sign. symbol, package or design) (Kotler 2006,P.274) around the psychological needs and values of its targeted costumers. Nancy F. Koehn, professor of business administration at Harvard Business School and author of Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell (Harvard Business School Press, 2001), Says: that consumers are looking for authenticity, self-identity, and community in the brands they endorse. And for Red Bull's target audience, being authentic means being a bit irreverent, a bit antiestablishment, and every bit different from your parents, says Marc Gobé, president and CEO of the desgrippes gobé group, a New York-based branding firm.[25]

Red Bull brand was introduced as “away of life” for three targeted audiences; youth, extreme sports’ fans and VIPs or celebrities. (Jobber 2001, p.192) says that psychographic segmentation involves grouping people according to their lifestyle and personality characteristics.This form of segmentation attempts to group people according to their way of living as reflected in their activities, interests and opinions.

 

1-     Youth and students:

 

 Through its sponsorship of youth culture and extreme sports events, Red Bull developed a cult following among marketing-wary Generation Y-ers, (18- to 29-year olds) who perceived it as an anti-brand.

"The beauty of Red Bull is that it's the anti-brand brand," says Marc Gobé [26], "Red Bull doesn't have any of the commercial trappings of a traditional, off-the-shelf product. It's underground, even when it's above ground, and that appeals to the young people who drink it."[27]

‘Red Bull is all about making friends. Not buying people. Because Red Bull became a friend, a real personality, people feel emotional towards it. They do things for us that they wouldn't do for Coca-Cola,’ says Johannes Kastner, founder of international advertising network Kastner & Partners. The agency has been working on the account since 1984.[28]

In other words, as Lars Emilson, the chief executive of the brand's can company Rexam said in September 2005 when it delivered its 10 billionth unit to Red Bull: ‘The can has become a symbol for a way of life’. This symbol is Red Bull's capital. Mateschitz saying, “The motivation to have a Red Bull at night is the same as during the day, to wake up, be at your best, and have fun.”[29]

 

The idea that brand choice may be related to personality is intuitively appealing. Indeed. Personality (and lifestyle) segmentation is more likely to work when brand choice is a reflection of self-expression and an aspect of personality: 'I choose this brand to say this about me and this is how I would like you to see me.' (Jobber 2001, p.192).

Kastner says that the strong bond has been created between consumers and Red Bull, that when they walk down the street clutching their can they are using it to identify themselves: ‘They want to express something by holding this can. They want to say “I am like the personality of this can”. They want to say we are professional. We are smart. We are good at sport. We first kissed a girl when we were twelve. We smoked cigarettes very early. Maybe we've spent a night in prison before because of a big party we had. But we are smart, we don't spend all our time getting drunk.’[30]

 

2-     Extreme sports:

 

Another fundamental part of Red Bull's strategy to make its product as “way of life” is extreme sports. As Soft Drinks International magazine's features’ editor Annette Sessions says: ‘Red Bull has become almost synonymous with speed sports. Extreme sports suit the brand because they accentuate the product benefits; when athletes are pushed to the limits of their endurance, whether they're base jumping, kayaking, free skiing, mountain-biking or cliff diving, Red Bull is there to stimulate body and mind.[31] However, the more Red Bull is associated with danger, the more its popularity grows, as if kids say to themselves, “Hey, look, this stuff is the real deal.” [32]

"People are using products to provide things that they think traditional institutions no longer can, like social progress, a sense of community, and a sense of public good," . "Companies that want to claim consumers' votes will have to implement branding strategies that represent something." Koehn Says.[33]

They've been particularly good at linking with high profile, potentially dangerous events that have grabbed attention, like speed skiing,’ says Matt Hales, planning director at sports marketing agency Octagon.[34] Collings says “ Mateschitz turned his drink into a brand that made a lifestyle statement”. [35]

 

3. VIPs and Celebrities:

 

The company positions Red Bull as a part of the celebrity lifestyle. For example, they regularly gave product to studio production staff during the early days of the US launch. In this way, some celebrities became acquainted with the brand and the relationship becomes genuine and reciprocal. Madonna has had Red Bull on stage at quite a few concerts, but the company has never paid an endorsement fee for it.[36]

Mateschitz believed in the importance of context for consumption of Red Bull. Therefore, the marketing focussed on sampling and event sponsorship that embodies the spirit of Red Bull.Mateschitz invested 35% of turnover in marketing and sponsorship in events.13 In his words, “we don’t bring the product to the people, we bring people to the product. We make it available and those who love our style come to us,”14 adding, “Red Bull isn’t a drink; it’s a way of life.”[37]

For example, the Red Bull Music Academy (RMBA) brought together aspiring musicians and DJs for two weeks to attend workshops and studio sessions, and listen to guest lecturers. Red Bull also created brand experiences around other art forms, such as the Red Bull Creative Contest for which entrants created a work of art from an empty Red Bull can. Well-known contemporary artists such as Tracey Emin and fashion designer Wayne Hemmingway had been on the judging panel of the contest. In the words of event planner Adam Comey, “Red Bull is willing to invest a lot in making sure people become believers in the brand through hands-on experiences.[38]

 

   V.      Future and Challenge:

The Challenges that Red Bull now faces is how to build on its incredible sales growth, as it has become a mature brand within a saturated market. The following are some of the most serious challenges that Red Bull faces:

1.      The loss of its original consumer base, as the ‘Y’ becomes working adults. How should the firm attract a new group of “Y” consumers?

2.      Health concerns that have emerged in several countries over problems associated with high intake of caffeine. Red Bull was banned in France and Denmark following the publication of these concerns. it would only take one or two public catastrophes to send Red Bull’s legitimacy into a downward spiral.[39]

3.      Red Bull’s life cycles: 

The product life cycle (PLC) is a concept that has been used exhaustively to explain and predict sales patterns of products through time. Underpinning the concept is the belief that products move through a sequential logical pattern similar to the path that life forms follow: from birth through growth to maturity, before decline and inevitable death occur. (Fill, 2002, p.138)(Fig.6)

A company's positioning and differentiation strategy must change as the product, market, and competitors change over the product life cycle (PLC). To say that a product has a life cycle is to assert four things: (Kotler and Keller. 321)

    • Products have a limited life.
    •  Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller.
    • Profits rise and fall at different stages of the product life cycle.
    • Text Box: Fig.6.Sales and profit life cycle.from Kotler and Keller (2006 .p 322)
Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life-cycle stage.

4.      Being over-reliant on a single brand. Until 2003, the company only produced one version of Red Bull. A sugar-free version was introduced in that year. But if Red Bull continues to amass consumers and increase its profits every year, Koehn predicts that the company will introduce related products "carefully, tightly linked to Red Bull's core offering." [40]

The real challenge here that, meaningless extensions and over-proliferation can be serious threats to a brand's future. [41]

Kotler and Keller say (2006, p. 47) that assessing growth opportunities should consider three options (Fig.7). The first option is to identify opportunities to achieve further growth within current businesses (intensive opportunities). The second is to identify opportunities to build or acquire businesses that are related to current businesses (integrative opportunities). The third is to identify opportunities to add attractive businesses that are unrelated to current businesses (diversification opportunities).

 

Randall (1997, p. 56) says that extensions may help the parent product, but they may weaken it - in four ways.

  •  

    Extensions that fail may damage consumers' faith in the parent.
  • The extensions may merely take sales away from the parent, leaving it weaker.
  • Both managerial time and the total budget will be split between the original brand and the new lines
  • Retailers have only limited space; they may be reluctant to accept all extensions. [42]
  1. The mature market for energy drinks has attracted some of the global firms, such as Coca Cola, Pepsi as well as Asda / Wal-Mart, with their own  brands seeking to gain a competitive advantage over the market leader.

Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment: industry competitors, potential entrants, substitutes, buyers, and suppliers.

 

   6. Credibility: The credibility of the organisation initiating the communication process is important. An organisation should seek to enhance its reputation with its various stakeholders at every opportunity. However, organisational credibility is derived from the image, which in turn is a composite of many perceptions. Consumers recognise the name and make associations that enable them to lower the perceived risk and in doing so provide the platform to try the new product. (Fill 2002, p.514)

The trouble for Red Bull is that the brand exists in a world of smoke and rumors and urban legends.[43] A study of 136 clubbers revealed one in four thought mixing it with alcohol boosted their energy.[44]

 

Conclusion SWOT analysis.

 

To conclude, the work would outline overall evaluation of Red Bull's strengths, weaknesses, opportunities, and threats using the SWOT analysis model.

 

 

Strengths

Weakness

  • Market pioneer
  • High share of the energy drink market
  • Strong brand
  • Strong MARCOMM
  • Ageing product
  • Single product
  • Credibility

 

Opportunities

Threats

  • Brand extention
  • New markets
  • New MARComm tools (Social media)
  • Strong compititors
  • Health concerns
  • Bann or restrections
  • Negative impact from extreme sports

 

 

 

Bibliography:

 

Jobber,D (2001) . Principles and Practice of Marketing.3ed.Berkshire:McGraw-Hill publishing co.

Duncan, T. (2002), IMC: Using Advertising and Promotion to Build Brands, McGraw-Hill, New York, NY, International edition.

Fill,c (2002) . marketing communications context, strategies and applications.FT/Prentice Hall(3ed Edition).

Fill,c (2006) .marketing communications engagement, strategies and practice.FT/Prentice Hall(4th Edition).

Lancaster,G., Massingham,  L. and Ashford, R. (2002) Essentials of Marketing. Berkshire: McGraw – hill education.(4th Ed).

Geoffrey Randall (1997, p. 56) Branding, A practical guide to planning, organizing and strategy. London: Kogan Page Ltd.

Kotler,Philip and Keller L.Kevin (2006) marketing management, Twelfth ed. New Jersey:Pearson Prentice Hall.

Philip J. Kitchen, and Patrick De Pelsmacker, (2004) Integrated Marketing Communications:  A Primer .New York: Routledge. P 38

Theodore N. Beckman. and William R. Davidson.(1967) Marketing .New York: Ronald Press Co.

Tench, R .Yeomans,L (2006) Exploring public Relations. practice.FT/Prentice Hall.

Yeshin,T. (1998).Integrated marketing communication the holistic approach.Oxford:Butterworth Heinemann.

 

 


 

[1] - [Case study- Red Bull- a bull market] (2005) .contagious magazine, quarter 4, Available from .http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[Accessed 24December 2007].

[2] - Timothy Collings.( 2006 ) what red bull did next. Available from http://cnbceb.com/2006/04/01/red_bull/.[Accessed 30 January 2008].

 

[4] - Kotler,Philip and Keller L.Kevin (2006) marketing management, Twelfth ed. New Jersey:Pearson Prentice Hall.

 

[6] - [Case study- Red Bull- a bull market] (2005) .contagious magazine, quarter 4, Available from .http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[Accessed 24 December 2007].

[7] - Ibid

[10] http://www.forecourttrader.co.uk/news/fullstory.php/aid/393/A_refreshing_change.html 01 September, 2004 .[Accessed 30 Jan 2008[ . ACNielsen is a leading marketing information company. Offering market research and services in more than 100 countries http://www2.acnielsen.com/site/index.shtml

 

[11] - Kotler and Keller, p 30

[13]-Ibid

 

[14] - Wipperfürth, a. (2003) “speed-in-a-can: the red bull story,”

Available from <www.plan-b.biz/pdf/speed_in_a_can.pdf> [accessed 11, Feb. 2008].

[15] - Geoff Lancaster , Lester Massingham, Ruth Ashford. (2002) Essentials of Marketing.Berkshire:McGraw– hill education.

[16] - The company has divided the u.s. into eight decentralized sales units, each of which is handled on a city-by-city basis. one regional office in new york, for example, services maryland, new jersey pennsylvania and virginia. the boston office handles the new england states and upstate new york.each unit is responsible for creating distribution, making sales calls and developing targeted marketing plans. the mission: to find out where the target demo (men and women age 16-29) hangs out and what interests them. it's their job to get the message out to the right clubs and at the right events. kenneth hein (2001) a bull's market - the marketing of red bull energy drink. brandweek,  may 28, 2001 .available from http://findarticles.com/p/articles/mi_m0bdw/is_22_42/ai_75286777. accessed on 27 / 12/2007

[17] - [Case study- Red Bull- a bull market] (2005) .contagious magazine, quarter 4, Available from .http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[Accessed 24December 2007].

[18] - Wipperfürth, A. (2003) “Speed-in-a-Can: The Red Bull Story,” San Francisco: Plan B.

Available from .www.plan-b.biz/pdf/Speed_In_a_Can.pdf> [Accessed 4 June 2004].

[19] - Ibid

 

[20] - Chaundy, B. (2001) “Red Bull: Raging Success,” BBC News online,

Available from http://news.bbc.co.uk/2/hi/uk_news/1437154.htm [ Accessed 2 June 2004].

[21] - The Murketing of red bull. Available from .http://robwalker.net/html_docs/redbull.html.[ accessed 28 january 2008].

[22] - Ibid

[24] - wipperfürth, a. (2003) “speed-in-a-can: the red bull story,” san francisco: plan b.

<www.plan-b.biz/pdf/speed_in_a_can.pdf> (accessed  11 feb 2008).

[25] - Anni Layne Rodgers.it's a (red) bull market after all. available from http://www.fastcompany.com/articles/2001/10/redbull.html.accessed on 30 jan 2008

[26] - President and CEO of the New York- based branding firm desgrippes gobé group (which does not work with red bull) and author of “emotional branding: the new paradigm for connecting brands to people” (allworth press, 2001).

[27] - Anni Layne Rodgers.it's a (red) bull market after all. available from http://www.fastcompany.com/articles/2001/10/redbull.html.accessed on 30 jan 2008

[28] - Case study / red bull / a bull market / contagious magazine, quarter 4, 2005. . available from http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[accessed on 28,december 2007]

[30] - Case study / red bull / a bull market / contagious magazine, quarter 4, 2005. available from http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[accessed on 28,december 2007]

[31] - Case study / red bull / a bull market / contagious magazine, quarter 4, 2005. available from http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[accessed on 28,december 2007]

 

[32] - abram d. sauer, red bull all the rage. available from available from http://www.brandchannel.com/features_profile.asp?pr_id=44. [accessed on 28 december 2007[.

[33] - Anni Layne Rodgers.it's a (red) bull market after all. available from http://www.fastcompany.com/articles/2001/10/redbull.html.accessed on 30 jan 2008

[34] - Case study / red bull / a bull market / contagious magazine, quarter 4, 2005. available from http://www.little-miss-copywrite.co.uk/portfolio_media.htm.[accessed on 28,december 2007]

[35] - Timothy Collings , what red bull did next.april 2006. available from http://cnbceb.com/2006/04/01/red_bull/ . [accessed on 30 jan 2008[

[36] - Wipperfürth, a. (2003) “speed-in-a-can: the red bull story,” san francisco: plan b.

Available from <www.plan-b.biz/pdf/speed_in_a_can.pdf> [accessed  11, feb 2008].

[37] - Wipperfürth, A. (2003) “Speed-in-a-Can: The Red Bull Story,” San Francisco: Plan B.

<www.plan-b.biz/pdf/Speed_In_a_Can.pdf> (Accessed  11, Feb 2008).

[38] - Wipperfürth, A. (2003) “Speed-in-a-Can: The Red Bull Story,” San Francisco: Plan B.

Available from .www.plan-b.biz/pdf/Speed_In_a_Can.pdf> [Accessed 11, Feb 2008].

[39] - Abram D. Sauer, Red Bull all the rage. Available from . http://www.brandchannel.com/features_profile.asp?pr_id=44. [Accessed 28 December 2007].

 

[40] - Anni Layne Rodgers (2001) It's a (Red) Bull Market After All Available from

http://www.fastcompany.com/articles/2001/10/redbull.html

[ Accessed 30 Jan 2008]

[41]- Geoffrey Randall (1997, p. 55) Branding, A practical guide to planning, organizing and strategy. London: Kogan Page Ltd.

 

[42] - Geoffrey Randall (1997, p. 56) Branding, A practical guide to planning, organizing and strategy. London: Kogan Page Ltd.

[43] - Abram D. Sauer, Red Bull all the rage. Available from. http://www.brandchannel.com/features_profile.asp?pr_id=44. [Accessed 28 December 2007].

 

 

 
 
 
 
 
 

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