Marketing Report: Red Bull's Brand Extension and Market Analysis

This report provides a detailed analysis of Red Bull's marketing strategies, focusing on its brand value, new product extensions (specifically Red Bull Wine), and market trends. It examines the company's background, including its origins and expansion. The report utilizes the Ansoff matrix to explain R...Read More

Principle of Marketing

Table of Content
• Introduction
• Background of the company
• Brand value
• Explanation of the new products
• Market Trends
• Brand Extension
• Conclusions
• References

Introduction
Principles of marketing help in the organisation to find out the new ways for the
product selling and if the products are being ignored by the consumers than use
different techniques of marketing to solve this type of issues. Leaders use the principles
of the marketing as the heart of the business strategies. These include the price,
product, place, promotions, packaging, positioning and people.

Background of the company
In 1987, an Austrian entrepreneur, was inspired by the existing energy drink and he
introduced a new energy drink in the chakkapong, Thailand. After this company
expand its market share in Hungary and Slovenia in 1992. Red bull started their own
slogan that Red bull gives you wings. And sometimes occasionally they change their
slogan to No red bull, no bulls.

Brand value
Red bull have a strong brand value with the help of good advertisement campaign,
different advertisement on the company's website and different sponsorship and different
sponsorship activities. They have strong brand value as they are focusing on the youth
generation from its foundation year.

Explanation of the new products
As the people are more conscious about their health and skin, and after making the
market research, it comes to know that most of the people are shifted towards the
consumption of the wine. So Red Bull started a new market segment which is Red Bull
Wine. As it provides the antioxidants, longevity, protect from the heart diseases and
harmful inflammation.

Cont...
It is aligned with the market, now decided to enter in the savoury market area of wine
industry. And this explain with the help of Ansoff analysis:
• Diversification: Red bull provides a new diversification in the new product line
with the new market segments. That is red bull wine, which is new in the product
industry of the company and enter into new market with the wine products.

Market Trends
In order to light the market analysis and determine the factors which are affecting the
company from its external market environment. For this pestle analysis is completed
and explain below:
• Political Factors
• Economic factors
• Technological factors
• Social factors
• Legal factors
• Environmental factors

Brand Extension
The competitors of the red bull are Coca-cola, monster beverages and many more like
this. But when the new market segment is used by the company which is wine industry
so the market competitors are increased and they are; Appellation Wines, Wilson wines
and Drink warehouse. So for this the company choose the different market strategies
which include the pricing technique, promotion tools, market place segment and many
more.

Conclusion
In the above presentation, it has been shown that Red bull is the Confectionery
company, which has a high market share and a pre-established brand image of the
company. It is for the every group and mostly affordable to average level of income.
And as the company introduced a new product market, which is new for the company's
production. So it is important to make all the market share, under there control a proper
research and techniques are used and implement the plan in order to gain the objective
of the company. For this ansoff and pestle analysis is considered for the internal and
external market analysis of the market.

References
• Diachok, N. and et.al., 2020. Practical-Oriented Concept as a Principle of Professional
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pp.272-282.
• Frederick, J. G. ed., 2020. Masters of Advertising Copy (RLE Marketing). Routledge.
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governance and local community.
• Luca, N. R., Hibbert, S. and McDonald, R., 2019. Understanding behaviour change in
context: examining the role of midstream social marketing programmes. Sociology of health
& illness. 41(7). pp.1373-1395.
• Palmatier, R. W. and Crecelius, A. T., 2019. The “first principles” of marketing strategy.
Ams Review. 9(1-2). pp.5-26.
• Ruml, A. and Qaim, M., 2019. Effects of marketing contracts and resource-providing
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858-2019-1875).

Thank You