Red Bull's Distribution Strategy

This assignment examines Red Bull's distribution strategies, highlighting the company's reliance on intermediaries and its focus on sustainability. It explores various marketing channels used by Red Bull, including direct selling, partnerships with retailers, and dual distribution models. The analysis also delves into challenges faced in managing these channels, particularly in a global market, and addresses potential conflicts that may arise between different parties involved. The assignment concludes by emphasizing the importance of strategic distribution for maximizing sales and reaching target customers effectively.

Running head: PLACE AND DISTRIBUTION IN MARKETING MIX
Place and Distribution in Marketing mix: Analysis of Red Bull’s Distribution strategy
Name of the Student
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Author’s note

1PLACE AND DISTRIBUTION IN MARKETING MIX
Title: Distributed With Wings
Introduction
It is hard to miss the Red Bull mini fridge on the counter if you have ever visited a super
market or a hyper market. The iconic Red Bull logo and the grey colour of the fridge is
something you cannot miss. Red Bull GmbH is an Austrian energy drink company that has
been established in 1987. In this article we are going to be discussing about the marketing
mix which is fundament to the concept of strategic management. In order to cater to the needs
and requirement of the target market the organisation should make sure that the products
reaches to the end customer. This is where the place and distribution section of the marketing
mix gain importance (Energydrink.redbull.com 2018).
Image: Red Bull in a store
Source: (Energydrink.redbull.com 2018)

2PLACE AND DISTRIBUTION IN MARKETING MIX
Types of marketing Channel
The marketing channels are the ways in which a product or service reach the end
customer. This is done by a number of means depending on the type of product, the
feasibility of the organisation. Scale of operation nature of the business etc. the channels can
be divided in four sections which can further be divided as per the requirement of the
company. The four basic marketing channels are: direct selling, selling with the help of third
parties of intermediaries, dual distribution and reverse channels (Khan 2014). The purpose of
each of these channels is to ensure the product or service reaches the right person at the right
time. Red Bull has a sustainable business model where the company employs strategic
management decision based on a sustainable approach, In order to commit to the purpose of
reduction of Co2 emission the company uses train and ship to distribute the products. The
shapes of the cans are made in an ergonomic style in order to make it easy for transport
packaging (Energydrink.redbull.com 2018). The company has been involved in using
intermediaries to distribute the products. The products are made available various other
organisations where Red Bull is sold to the end consumers (Olsson 2013).
Challenges faced in managing appropriate channels
The process of distribution of the product depends on the profitability of the
organisation. Red Bull is available in 171 countries and the company has to keep up and
adhere to the business dynamics of each of the countries in order to ensure hassle free
availability. For a multinational company this is the biggest challenge in managing the
channels of distribution (Khan 2014).
Channel conflict and solution

3PLACE AND DISTRIBUTION IN MARKETING MIX
When there are third parties involved in distributing the products there are bound to
be conflicts and grievances. The types of conflict are: horizontal or vertical conflict,
multichannel conflict and inter type culture and the reason can be of various type. One of the
most frequent reasons for conflict is miss communication or communication gap in between
the company and the third parties involved. In order to resolve a conflict it is important to
locate the issue and then analysis it to understand the nature and intensity, the source and the
impact of the conflict should also be analysed. Based on the understanding a plan of action is
required to be drawn (Olsson 2013).
Importance of place and distribution strategies
In the traditional concept of 4Ps of marketing mix place or distribution plays a very
important role. It is the strategies that will ultimately enable the company to reach out to the
target customers. This is important as this will ensure a large amount of sales volume and it
has to be strategic because it is no point making a product or service available in a place
where there is no demand for it. One of the many objectives of an organisation is to maximise
profit and increase the sales and it is very important to make the product or service available
at the right time and right place in order to do so. For example: Red Bull has distribution in
gyms and fitness centres where the demand of the product will be high and there will be an
availability of the target market. It can be said that Red Bull has an intensive distribution
strategy so that they can make the product available at maximum spots (Khan 2014).
Conclusion
The Red Bull mini fridge at the local grocery shop or the supermarket has surely
allured you to buy a can one or more times. The company has an indirect method of
distribution and the company focuses on being sustainable and environment friendly.

4PLACE AND DISTRIBUTION IN MARKETING MIX
Reference list:
Energydrink.redbull.com 2018. Home Page. [online] energydrink.redbull.com. Available at:
http://energydrink.redbull.com/ [Accessed 17 Jan. 2018].
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Olsson, R., Gadde, L.E. and Hulthén, K., 2013. The changing role of middlemen—Strategic
responses to distribution dynamics. Industrial Marketing Management, 42(7), pp.1131-1140.