Risk Management in Red Bull's Event and Marketing Activities

The assignment discusses the need for Red Bull to manage risks associated with its event and marketing activities. This includes ensuring sufficient security procedures are in place, packing beverages in non-breakable containers, educating leaders about potential risks, monitoring production stages, and developing a contingency plan. The company must also design a risk management policy that aligns with its vision and resources.

Running head: EVENT AND MARKETING
Event and Marketing
Name of the Student:
Name of the University:
Author note:

1EVENT AND MARKETIING
Table of Contents
Introduction................................................................................................................................2
Finding and Analysis..................................................................................................................2
Definition and classification of events...................................................................................2
Marketing activities of Red Bull and their role......................................................................3
Role of Marketing Mix...........................................................................................................4
How Red Bull uses Marketing Mix to inform its marketing strategy....................................4
STP Red Bull..........................................................................................................................5
Risk management consideration to be taken..........................................................................7
Conclusion..................................................................................................................................8
References:.................................................................................................................................9

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Introduction
There are several types of events organized by different authorities in different parts
of the world. The main aim of any event organized is to implement the sense of brotherhood
and togetherness among the different set of people ranging from different type of cultural and
social groups. This paper will elaborate on the subject of events and marketing. It will focus
on the definition and classification of special events. It will shed light on the key marketing
activities that are undertaken by Red Bull and their role in their overall marketing strategy.
Furthermore, it will also discuss about the role of marketing mix and the company is using
the marketing mix to inform their marketing strategy.
Finding and Analysis
Definition and classification of events
Events are described as public assembly for the purpose of education, reunion,
marketing or celebration. The special events are the phenomenon that arises from the non-
routine occasions that have leisure, personal, cultural and organizational objectives sets apart
from normal day-to-day activities, whose primary purpose is to celebrate, challenge, entertain
or enlighten the experience of a group of people (Brown 2014).
Events are classified in terms of their size and type.
1. In terms of types:
Festival events: They are organized traditionally after a specific time interval for a
year or more, but the time and dates of these events are fixed.
Business events: They are organized by different business organizations for their
business needs. Example- business seminars and meetings

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Sports events: These events are comprised of sports. Example- Olympic events and
football world cups
Political events: They are organized by the governments and are associated with
national and political environment. Example- election program
2. In terms of size
Hallmark events- The events which have large brand value and legacy among the
audiences are called hallmark events. Example- Rio carnival in Brazil (Herstein and
Berger 2014)
Mega events- The events that are benchmarks in the international event standards and
have the potential to draw large number of crowds at any time are called mega events.
Example- Olympic games (Grix and Houlihan 2014)
Community events- The events that are limited only to the local areas along with very
limited popularity or publicity are called community events. Example- Easter age
parade
Major events- These types of events are organized on a national level and have the
interest and recognition of the foreign audiences as well. They are usually organized
by local institutions and communities. Example- Ocean race stopover
Marketing activities of Red Bull and their role
The secret behind red bull’s success is that the company supports near about 500 top
class sports athletes which compete in record-breaking events worldwide. The founder of the
company- Dietrich Mateschitz says that the Company does not bring its products to the
customer; instead it brings customers to its products (Cnossen et al. 2017). Red Bull invests
in extreme sports as well. It has long been helping to fund several events itself and then later
the funding team of the major events like ESPN’s X-Games (Davis and Hilbert 2013). It has
also been a sponsoring member in the NASCAR for many years. Furthermore, it owns

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several sports team including Scuderia Toro Rosso, EHC Munchen, FC Red Bull Salzburg,
New York Red Bulls, Red Bull Brazil etc. It makes its revenues from these brands. Red Bull
also owns several media properties including Red Bull bulletin, Red Bull TV, Redbull.com,
Red Bull mobile apps, Red Bull Cinema and Red Bull records. Its Red Bull Media House
integrates social media marketing into each of its projects. It is highly efficient and
experienced in creating successful and innovative media strategies.
Role of Marketing Mix
Marketing Mix is very important for the marketers. It has a great affect on the
customer’s decision to buy the products or not (Tapp and Spotswood 2013). The 4ps of the
marketing mix stands for Product, price, place and promotion. The marketing mix help in a
clean mix creation and helps in the development of new products and services. They also help
in increasing the product portfolio and they act as a guide to improve a business.
Furthermore, it also helps in differentiation and lifts the organization in being a dynamic one.
How Red Bull uses Marketing Mix to inform its marketing strategy
Product- The drink is aimed to give the consumers a high energy kick. It is available in 250ml
cans and 350ml bottles, in only two flavors. It contains glucuronolactone, taurine, B vitamins
and caffeine (Elitok et al. 2016). It has now become the leading energy drink in the world and
is a staple in the life of numerous active people.
Pricing- the Company puts its pricing above the other energy drinks due to its quality. The
quality of their drink is really great as compared to the other energy drinks. Drinks like
Rockstar and Monster though have tried to compete, but they have not been worthy
competitors.

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Place- the Company place its products in the areas where it is convenient for the consumers
to purchase them. Not only through stores and groceries, Red bull also places its products in
the casinos and night clubs.
Promotion- The promotion of the company is the most interesting part. Their world famous
slogan- “Red Bull gives you wings”, the company take their connection with their customers
to a new level (Meier 2013). Right from hosting a wide array of extreme sports event, to
forming a magazine named ‘extreme sporters’, Red Bull is effectively making efforts to
become a major part of its target customers.
STP Red Bull
Types of
segmentation
Segmentation
Criteria
Target customer segment of Red Bull
Red Bull
Simply Cola
Red Bull Zero
Calories; Red
Bull Sugar
free
Red Bull
Energy Drink
Red Bull
Editions: lime,
tropical fruits,
cranberry,
blueberry
Geographic Density Urban and
Rural
Urban and
Rural
Urban and
Rural
Urban and
Rural
Region Domestic and
International
Domestic and
International
Domestic and
International
Domestic and
International
Demographic Age 16 to 40 26 to 45 16 to 30 18 to 36
Income High High High High
Occupation Students,
professionals
and employees
Professionals
and employees
Students,
professionals
and employees
Students,
professionals
and employees
Life cycle Newly
married
Newly
married
Bachelor Bachelor

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couples couples people people
Behavioral Personality Easygoing Ambitious Ambitious Determined
Degree of
loyalty
Switches Hard core
loyal
Hard core
loyal
Soft core loyal
User Status First time
users
Non-users;
regular users
Non-users;
regular users
First time
users
Benefits
sought
Sense of
belonging
Sense of
belonging
Enhanced
performance
Sense of
belonging
Enhanced
performance
Sense of
belonging
Enhanced
performance
Psychographic Life Style Succeeders,
explorer,
Succeeders,
explorer
Explorer and
reformer
Succeeders,
explorer
Table 1: STP of Red Bull
Segmentation- Red bull avoids the use of usual or traditional methods of marketing,
depending on what is called as buzz marketing or word of mouth marketing (Freeman et al.,
2014). It advertises directly to the Y generation who are the so called people who born after
the year of 1091. It uses the mono segment kind of positioning.
Targeting- The company targets the customers who are between the years 15 to 30. It is very
image conscious (Teigeler and Hahne 2014). Its energy drinks that consists of high sugar
level and are therefore, more popular among the women and children, while the energy drinks
that are with strong flavor and taste are more preferred by the male customers. In fact,
according to the recent study, 65% of the market of energy drink consists of male customers
(Bunting, Baggett and Grigor 2013).
Positioning- Red bull is positioned in the list of premium category of beverages because of it
unique taste. It is relevant to the targets. As mentioned above, Red bull has also sponsored

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several games such as Golf (Farris et al., 2017). Furthermore, the company arranges rallies in
several countries like that in Pakistan’s Jhal Maksi rally and Thar Desert rally. Its perception
is of a lifestyle and inspirational brand.
Risk management consideration to be taken
 Proper handling and preparation of the beverages is very important. The people who
are hired for the process involved in the manufacturing and production to the
packaging of the beverage needs to have a health permit
 The workers need to comply with the health related laws and regulations in order to
ensure that the prepared drinks are safe to consume.
 The ingredients that are use must be listed in the patron along with food allergies and
dietary requirements.
 The place for the production of these drinks must have sufficient security procedures.
 The beverages must be packed in non-breakable containers.
 Educate the leaders of the company regarding the potential and existence of risk
 Monitor each of the manufacturing and production stages through using the
technology effectively
 It must develop a contingency plan
 Red Bull must also design a policy for risk management which supports the vision
and policies of organization and with the same, it must be in tune with the resource
capabilities
 The company must perform internal audit of long-term as well as operational
strategies and activities.

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Conclusion
From the above discussion, it is to be concluded that Red Bull is demonstrating a
novel approach for its event and marketing activities. It has introduced several products in the
market that has spawned a whole new category of products. Due to its efficient activities and
actions, the company has achieved a great success in the current market and has become one
of the great market leaders in its sector. The present position of Red Bull is strong in the
market sector. However, there are several risks management considerations mentioned above
that red bull must always take into account in order to remain in the top position in the
coming year as well.

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References:
Brown, S., 2014. Emerging Professionalism in the Event Industry: A Practitioner's
Perspective. Event Management, 18(1), pp.15-24.
Bunting, H., Baggett, A. and Grigor, J., 2013. Adolescent and young adult perceptions of
caffeinated energy drinks. A qualitative approach. Appetite, 65, pp.132-138.
Cnossen, C., Li, Y., Sampath, N., Taylor-Maisano, W. and Tsonev, V., 2017. What gives Red
Bull wings: Creating a successful market-oriented organization.
Davis, J.A. and Hilbert, J.Z., 2013. Sports marketing: creating long term value. Edward Elgar
Publishing.
Elitok, A., Öz, F., Panc, C., Sarıkaya, R., Sezikli, S., Pala, Y., Bugan, Ö.S., Ateş, M.,
Parıldar, H., Ayaz, M.B. and Atıcı, A., 2016. Acute effects of Red Bull energy drink on
ventricular repolarization in healthy young volunteers: a prospective study. Anatolian journal
of cardiology, 15(11), p.919.
Farris, P.W., Shames, E.R., Johnson, R.R. and Mitchell, J., 2017. Red Bull
(Abridged). Darden Business Publishing Cases, pp.1-8.
Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T. and King, L., 2014.
Digital junk: food and beverage marketing on Facebook. American journal of public
health, 104(12), pp.e56-e64.
Grix, J. and Houlihan, B., 2014. Sports mega-events as part of a nation's soft power strategy:
the cases of Germany (2006) and the UK (2012). The British journal of politics and
international relations, 16(4), pp.572-596.