Principles of Marketing: Red Bull Case Study

This case study explores the principles of marketing through the example of Red Bull. It covers topics such as existing brand values, target market, new market analysis, new product description, and competition.

PRINCIPLES OF
MARKETING

Executive summary
The below study is presented on basis of certain principles of marketing that define combination
of marketing mix . The aim of this report is to identify the market scenario in which new product
category of Red Bull can be introduced. This can be done through PESTEL analysis and Ansoff
framework that help to define certain challenges that are exist in market.

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Methodology...............................................................................................................................4
Findings.......................................................................................................................................4
Existing brands and its values: .............................................................................................4
Target Market Of Red bull.....................................................................................................5
Analysis Of New Markets including Trends .........................................................................5
Description of new products...................................................................................................6
Competition............................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing refers to a process of producing goods ans services to potential clients. And its
principles based on some ideas that can use for making effective marketing strategy that helps to
enhance product reach(Wanda and Razak, 2018). This report is based on Red bull, it is a energy
drink company that spread across world and its headquarters is in Austria. Basically it a leading
U.S organisation that owned 24.9% market share. In this report topics that can be covered is
existing brand values,discuss about target market,new market analysis, description bout new
product and their competition level in market.
MAIN BODY
Methodology
For conducting a research survey marketer can use methods such as primary in which they can
fill questionnaire on basis of target customers and identify their taste, nature and preference
related to respected brand. Researcher also use secondary procedure to analyse other things like
market share, existing and upcoming trends, effects of external environment on business and
many more things that derive value in business. Increasing their market share through helps on
brand image in market.
Findings
Existing brands and its values:
Red bull is a leading company that deals in variants of energy drinks in terms of edition such as
red, pear, peach, green, blue orange etc. Company can generate their brand values by identify
consumers and their taste and preference. Organisation can use advertising, company website
and sponsorship activities and also use brand identify prism model( Kapferer) was introduced by
Jean-Noel in 1996. This matrix considers following elements that helps of identify value:
◦ Brand Appearance: IT define physical characteristic of items which includes l0ogo,
iconography, labelling, packaging etc(Taylor, 2020). Red Bull can use form of
symbol in shape of energy drink. And its logo is in red colour that define energy level
of bull that helps attract customer.

◦ Personality: A brand has courageous, outgoing and hyper energetic personality that
grabbing attention of athletes. This product include precise and clear words for
connecting about item.
◦ Culture: It refers to vision and mission. Red bull introducing campaign related to
increase energy level of customers through which most of gym trainer and athlete are
highly influenced.
Target Market Of Red bull
The Red Bull's targeted clients are highly aspire young males that live on edge. It is highly
interested in sports ans challenging activities. For identify desired customer company can use
STP process which are discusses below;
◦ Segmentation: It involves dividing population on basis of income, age, gender etc.
of consumers. Red bull use monotype segment for identify certain characteristic of
their clients.
◦ Targeting: This method is based on customer segment after segmentation
organisation can target those customers who are highly busy persons and highly
passionate about sports. Because they provide energy drinks which assist to influence
those kinds of customers.
◦ Positioning: Red Bull use strategy for positioned brand in markets. It comprise high
benefits of products for customer that gives them wings to fly with high level of
energy. As this strategies arising high competitive edge of brand in market.
Analysis Of New Markets including Trends
This defines assessment related to qualitative and quantitative terms that helps to define market
volume and values on basis of customer segment, buying patterns etc(Kotler, 2017). This
procedure includes PESTEL analysis and Ansoff matrix.
◦ Political : The intra governmental policies can affects imports and exports of red bull.
This is a opportunity for business.
◦ Economical: An availability of raw material and resources can influence overall sale
of Red Bull.

◦ Social: This affect lifestyle of person, strategies in drink production with sugar free
help to enhance market growth.
◦ Technological: Red Bull pay high amount of money to stunt man as a technology
sources this helps in grabbing customer attention
Thus, these factor affect new product extension in market as customer are changing their needs
and preference with changing trends and in extrinsic environment.
ANSOFF Matrix
This matrix refers to a strategic tool that helps to guide organisation for taking right decision that
generate growth (Hopkins and et.al., 2020). It includes market penetration, market development,
product enhancement and diversification. Company can use product development strategy as it
try to extend their market with generating new categories such as milk shake. Basically this
strategy is used to seeking growth opportunity by producing new products in existing market.
Red Bull uses research and development of finding and understands about views of customer
demand that helps in generate competitive benefits in organisation through creativity and new
innovation.
Description of new products
The existing product line of Red Bull can expand through introducing new category of brand
such as Red Bull Milk Shake (Dimitriadis, Dimitriadis and Ney, 2018). A main goal of
establishing this new product is to target those consumers who are highly concerned about they
physique and health who needs high protein to do work or for survival. The positioned of brand
is helps to differentiate it from other rivalries. A high competitors of this new product is Hershey
and Danone. Packaging, labelling and entire outer appearance of this product help to grab
attention of clients. Company can focuses on targets most of crowd through this new product
taste and quality.

Competition
Red bull introducing new variety in their brand such as milk shake that may faced high
competitors in market like Hershey and Danone. Market size of organisation is depend on
geographical area and demand of customers. Company can use top down and bottom down
strategy to identify their target audience.
Red Bull Hershey Danone
The market share is 24.9% This can lead market share is
43.3%
It has increased its market
share with 30 percent.
It has sold 7.9 billion cans in a
year.
This can sales products six
billions dollars in every year.
The sales of company is 12.82
billion euros.
CONCLUSION
It is being conclude from above report that development of new product can be successful
if they can attract most of crowd. Company can use product development strategy as they try to
extend new products in existing market. This assist to increase reputation of company and its
market share by providing satisfaction to customer with this new product segment. This items
improvement can enhance competitive benefits in business.

REFERENCES
Books and Journals
Dimitriadis, N., Dimitriadis, N.J. and Ney, J., 2018. Advanced Marketing Management:
Principles, Skills and Tools. Kogan Page Publishers.
Hopkins, C. and et.al., 2020. Self-Efficacy, Locus of Control and Engagement as Determinants
of Grades in a Principles of Marketing Class. Marketing Education Review. 30(4).
pp.236-251.
Kotler, P., 2017. Philip Kotler: some of my adventures in marketing. Journal of Historical
Research in Marketing.
Taylor, R., 2020. Reframing Delivery of Principles of Marketing: Moving Bored Students to
Board Room Employer-Needed Kick-Ass Skilled Grads. Academy of Business Research
Journal. 2. pp.52-66.
Wanda, M.N.M.S. and Razak, F.Z.A., 2018. Cultural influence and international marketing: A
review of dimensions and market entering. EXCEL International Journal of
Multidisciplinary Management Studies. 8(7). pp.12-27.