Red Bull’s Case Study

Running Head: MANAGEMENT 0
ADVANCE MARKETING -
REDBULL

MANAGEMENT 1
Red Bull’s Case Study
Red Bull’s was established in 1987, as a beverage company where the company
specialization is their unique marketing strategy and coordination with the distributors (Byun,
2010). Red Bull’s focuses on one segment of the market i.e. caffeinated drinks and build up a
stronghold on the market. Later on, other soft drinks producers like Pepsi, Coca-Cola, and
Monster come up with their specific energy beverages and this progress will certainly impact
on the market share of Red Bull’s. However, the unconventional promotion methods help
Red Bull’s to expand its business with increasing brand awareness.
Red Bull’s Success
It can be said that Red Bull’s greatest strength is in its unique marketing approach in
extent with integrated marketing communications mix. In energy drink category, the
company gain first mover advantage (Alford, Hamilton-Morris, & Verster, 2012). Unlike
other brands, Red Bull’s does not depend on distribution partners as they have implanted
their own distribution channel and this also help company in offering unique distribution
touch points (like events and bar). The major risks linked with market saturation comprising
reduce shelf space in traditional retail formats, lower margins and rising sales cost. Other
risks are related to legal aspects related to health concerns with the consumption of energy
drinks mainly among children. Being a market leader, the company may be targeted by
consumer advocacy groups in extent with legal actions.

MANAGEMENT 2
Red Bull’s Nontraditional Marketing Tactics
The benefits of company nontraditional marketing strategies include their strong
brand image as rebellious, unique and original and also the active social presence. These
nontraditional marketing strategies help Red Bull’s to position out of the crowd. In addition,
their strong personality endorsement helps the company to position as exceptional brand and
their sports events sponsorship turns as ancillary income generator. The cons will be its
premium products that are being sold to the customer at higher price than the competitors are.
Moreover, the company has limited portfolio.
It can not be said that Red Bull should embrace upon more of traditional marketing
approaches as traditional advertising should be only adopted when reinforcing the company
brand in the mature markets. In addition, if Red Bull’s adopted this traditional marketing
strategy, it will lose its uniqueness. With regards to this, using “buzz marketing” and
sponsored events benefit the organisation to make its product perceived unique in the market.
Hence, it is suggested that Red Bull’s to sustain with their non-traditional marketing
approach.
Effectiveness of Red Bull’s Marketing Methods
It can be said that Red Bull is doing well at sponsoring events as their sponsorship
programs are expanded over a range of extreme athletes, sports and artists. This has appealed
various present and prospective product customers as the above events range from dancing to
great sailing.
Demir & Soderman (2015) defined sponsoring events as a form of advertising for the
organisation where participant, generally young adults and teenagers get to familiarize with