Analysis of Marketing Strategies: Red Bull and Nike - MKT00720

This report analyzes the marketing strategies of Red Bull and Nike, two prominent organizations known for their innovative marketing activities. The report examines how these companies have achieved competitive advantages through their marketing efforts, including sponsorships, product positio...Read More

Running head: MARKETING
Marketing
Name of the student
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Author note

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Executive summary
The aim of this report is to analyze the strategies being initiated by these two organizations in
order to their competitive advantages. Moreover, the process or steps to garner the competitive
advantages had been discussed with the help from the information being gathered from business
today and Forbes. It has been concluded that they both have implemented an effective marketing
strategy which is helping them to maintain their competitive advantages over their competitors.

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Table of Contents
Introduction......................................................................................................................................3
Marketing strategies of Red Bull.....................................................................................................3
Marketing strategies of Nike...........................................................................................................4
Evaluation of the marketing strategies of Red Bull.........................................................................4
Evaluation of the marketing activities of Nike................................................................................5
Success of the marketing strategies for Red Bull............................................................................6
Success of the marketing strategies for Nike...................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
The current business scenario is quite challenging for the contemporary business
organizations. They have to maintain various aspects in order to stay ahead in the competition.
One of the key aspects to be maintained by them is the marketing of their products through
different channels. Marketing enables the organizations in increasing the identity and exposure
of their brand among the customers (Urde 2013). Majority of the large business houses gained
their brand identity and brand image from their Marketing activities. Red Bull and Nike are two
such organizations which are known for their innovative marketing activities (Armstrong et al
2015). They have being able to position their products in the mind of the customers more
positively due to their effective marketing strategies.
This report will analyze the strategies being initiated by these two organizations in order
to their competitive advantages. Moreover, the process or steps to garner the competitive
advantages will also be discussed. Articles gathered from Business today and Forbes is being
used to analyze their marketing activities (Sanusi 2017).
Marketing strategies of Red Bull
Though Red Bull operates in the market having various others competitors offering
energy drinks, however, they possess a unique and distinctive approach which makes them
different from their competitors (Pangarkar 2017). Majority of the advertisements of the
competitors in this sector comprise of loud and entertaining taglines and show structure. On the
other hand, Red Bull advertises their products in a more subtle manner. They even do not
provide any information about their products in the advertisement, rather than they just aware the

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customers about their presence. The more focus area of Red Bull in their marketing activities is
the sponsorships of various high octane sporting events which match with their brand identity.
They mainly position their products as a youth and sports oriented. Thus, customers get more
related with their products with the help of these events.
Marketing strategies of Nike
Nike is one of the prominent and leading footwear and sports accessories brand in the
world. In the case of Nike also, they operates in an intensely competitive market having various
large competitors offering similar products. Nike is also known for their innovative approach in
their marketing activities. Nike is having various products in their portfolio targeted for various
sections of the society. Thus, accordingly they market their products to attract the targeted
customers. Nike is also more concentrated on outside and event marketing rather than opting for
television commercials. They sponsor various large sporting events as well as sponsoring
different sports teams (Tuten and Solomon 2014). This helps them in enhancing their brand
exposure among the customers. As due to the reason that Nike is operating in sports accessories
market, thus the marketing activities with the help of the sporting events helps them to solidify
their brand identity among the customers. Moreover, the target segments of them can be
collectively attracted by marketing through sporting events.
Evaluation of the marketing strategies of Red Bull
Red Bull maintains a specific approach in designing their marketing activities. To
evaluate the marketing activities of them, segmentation, targeting and positioning model will be
used. According to this model, the first step is to identify the segments of the customers which
will be targeted. The customer segments for Red Bull are mainly the higher end customers who

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are inclined towards adventurous lifestyle. People having orientations towards sports are also
target segments for them. In addition, demographically, both genders are the targeted segments
of Red Bull. In the recent years, more female customers are attracting towards sports and sports
oriented activities. Accordingly, Red Bull has increased their brand presence in the events
targeted for the women sections. However, the pricing of their products are being done
considering the higher end customers (Ellickson, Misra and Nair 2012). Thus, they have opted
for premium pricing. It helps them to maintain a standard and exclusivity among their customers.
The next step in this model is targeting. It refers to the sections of the customers being
targeted and having product, price, place and promotional activities to attract them. Red Bull
implements their pricing strategies to attract their target customers which consist from the higher
end of the pyramid. The product is also being designed to attract the sports people and will act as
the complementary in their sporting activities. The advertisements are being aired mainly in the
sports channels where the target customers will be present.
The last step in this model is positioning the brand in the mind of the customers. Red Bull
designed their advertisements according to the taste and preference pattern of their target
customers. The advertisements and events for Red Bull are being designed in such a way that it
will position itself as a sports oriented product in the mind of the customers (Shakhshir 2014).
The events sponsored by them are mainly the high octane and adventurous sports which helps
them in positioning their products accordingly in the mind of the customers.
Evaluation of the marketing activities of Nike
As discussed earlier, Nike caters to various segments of the customers. They are having
diversified product portfolio ranging from footwear to other sports accessories (Kumar, Gaur and

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Pattnaik 2012). Accordingly they design their advertisements to cater to the targeted customers.
Nike promotes extensive marketing strategies involving celebrities from different fields. It helps
in increasing their market penetration and enhancing their brand identity among their potential
customers. The advertisements of Nike targeted in promoting the utility of the products and the
associated innovations with it. Nike mainly promotes their products in terms of their innovations
and thus their advertisements also portray the innovative ideas attached with the particular
products (Calin 2012). It helps them to aware the customers in having the knowledge about the
features that are distinctive from others. Thus, with the help of the marketing activities, their
competitive advantages get conveyed effectively to the customers. Moreover, association with
the various sports teams helps them to target the customers from the specific regions. The
goodwill and reputation associated with the teams helps them in penetrating their products more
effectively in the respective markets.
Success of the marketing strategies for Red Bull
The unique approach of the marketing activities of Red Bull helped them in creating a
unique brand image in the mind of the customers. Customers relate Red Bull with adventures and
sports. This has been made possible due to the effective and innovative marketing strategies
being implemented by them. Porter generic strategies will be used to determine the competitive
advantages being gained by them from their marketing activities. According to this model, the
first aspect is cost leadership (Valipour, Birjandi and Honarbakhsh 2012). The marketing
activities of Red Bull are not targeted for cost leadership in the market rather than the premium
pricing of their products is creating a separate entity in the mind of their targeted customers. The
second aspect is differentiation strategy. Red Bull maintains an effective differentiation strategy

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by implementing premium pricing, niche target segments and related marketing activities. It
helps them in creating a distinctive image in the crowded market of various other competitors.
The taste of their drinks, choice of sponsored events and design of the marketing
campaign helps them to create the distinctive image among the customers (Valipour, Birjandi
and Honarbakhsh 2012). Thus, having the close substitutes in the market, Red Bull is
maintaining their unique image among their customers. The last aspect is focus. Majority of the
competitors of Red Bull operates in the same market segments at the same price levels.
However, the marketing activities of Red Bull are being targeted towards the niche market where
they are operating (Yang 2012). The utility of their products along with the marketing channels
being used are being designed according to the preference pattern of their target segments. This
helps them in maintaining the customer loyalty among their targeted segments.
Success of the marketing strategies for Nike
Nike is also one of the most prominent organizations having successful and extensive
marketing activities. According to the porter generic strategies, the cost leadership is being
maintained by Nike with reducing the cost of production of their products by outsourcing their
manufacturing facilities to the countries having low labor cost. Moreover, the forward integration
by them also helps in controlling the retail price by their own. It helps them in competing with
the competitors in every price levels. The next aspect is differentiation strategy. The main
differentiation strategy being implemented by Nike is their innovations in their products (Wagner
III and Hollenbeck 2014). The products of Nike are being known for their innovative approach.
It helps them in creating a separate image in the mind of the customers. The last aspect is focus
strategy. The focus market for Nike is the sports people and people looking for higher end casual

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shoes. It includes both the genders. The marketing activities of Nike are being designed to target
this specific focus market (Baker 2014). Association with the sports teams and events helps them
in attracting their targeted customers. Brand identity further increased among them.
Conclusion
Having analyzed the marketing activities of Red Bull and Nike, it can be concluded that
they both have implemented an effective marketing strategy which is helping them to maintain
their competitive advantages over their competitors. Marketing strategies plays a huge role in
making their brand exposed to more number of customers. Moreover, the distinctive features of
their products are being properly communicated with the help of their marketing activities. Thus,
it can be said that maintaining these activities will help them to maintain their market leadership
position in the long run.

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Reference
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Călin, G., 2012. Strategies for increasing marketing flexibility: An application of the service
dominant logic. MB School.
Ellickson, P.B., Misra, S. and Nair, H.S., 2012. Repositioning dynamics and pricing
strategy. Journal of Marketing Research, 49(6), pp.750-772.
Pangarkar, N. (2017). Forbes Welcome. [online] Forbes.com. Available at:
https://www.forbes.com/sites/forbesasia/2013/06/24/the-wind-behind-red-bulls-wings/
#6161b9e67b79 [Accessed 9 Aug. 2017].
Sanusi, M. (2017). How Nike's marketing strategies helped it become a global brand. [online]
Businesstoday.in. Available at: http://www.businesstoday.in/magazine/lbs-case-study/nike-
marketing-strategies-global-brand/story/207237.html [Accessed 9 Aug. 2017].
Shakhshir, G., 2014. Positioning strategies development. The Annals Of The University Of
Oradea, 977, pp.416-437.
Tuten, T.L. and Solomon, M.R., 2014. Social media marketing. Sage.
Urde, M., 2013. The corporate brand identity matrix. Journal of Brand Management, 20(9),
pp.742-761.

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Valipour, H., Birjandi, H. and Honarbakhsh, S., 2012. The effects of cost leadership strategy and
product differentiation strategy on the performance of firms. Journal of Asian Business
Strategy, 2(1), p.14.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive
advantage. Routledge.
Yang, L.R., 2012. Implementation of project strategy to improve new product development
performance. International Journal of Project Management, 30(7), pp.760-770.