Red Bull: Environmental Analysis and Marketing Strategies Report

This report provides an environmental analysis and marketing strategy assessment of Red Bull Energy Drink. It begins with an executive summary and introduction, followed by a background on the company. The core of the report focuses on analyzing Red Bull's marketing environment through PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis, examining external factors influencing the business. It also conducts an internal environmental analysis, evaluating Red Bull's strengths, weaknesses, organizational culture, vision, mission, and values. The report then employs a TOWS matrix to identify strategic options, combining internal and external factors to formulate strategies for leveraging strengths, mitigating weaknesses, capitalizing on opportunities, and addressing threats. The report concludes by summarizing key findings and recommendations for Red Bull's continued success in a dynamic market.

Environmental Analysis and Marketing
Strategies
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Executive Summary
Environment analysis facilitate company to identify changes, threat, trends and opportunities
and further undertake advantage of marketing strategies accordingly, in order to conduct
business organisation operation and accomplish goals and objectives in an effective manner.
With the help of this company can not only gain significant growth opportunities but can also
maximize their competitiveness in respective industrial sector. Present report includes external
and internal environment analysis of Red Bull Energy Drink. Report includes findings on factors
prevailing in internal and external business environment and affects Red Bull organisational
operations. Along with this, findings is conducted with the help of PESTLE and TOWS analysis.
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Table of Content
Executive Summary.........................................................................................................................2
1. INTRODUCTION.......................................................................................................................5
2. Background..................................................................................................................................5
3. Analysis of Marketing Environment............................................................................................6
4. TOWS Matrix Strategies..............................................................................................................8
5. CONCLUSION..........................................................................................................................11
REFERENCES..............................................................................................................................12
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1. INTRODUCTION
Environmental analysis is defined as a strategic tool through which organisation can
significantly evaluate the factors that are prevailing in internal and external environment and can
have negative or positive impact upon organisation productivity and performance. With the help
of environmental analysis develop marketing strategies this will allow them to gain opportunities
through which they can assure competitive advancements and profitability (Pindar and Dhawan,
2021). It has been identified that environment analysis is important for organisation as it allow
them to develop organisational culture and policies and provide guidance to employees
according to the factors prevailing in the environment.
The Present report has been conducted on Red Bull energy Drink Company which is
operating their business services as an Australian organisation founded in the year 1987.
Organisation offer wide range of products and services to customers with extensive taste and
quality. Present report will include analysis of marketing environment in which PESTLE
framework is included along with TOWS Matrix strategies in order to identify potential
opportunities and counter disabilities.
2. Background
Red Bull energy drink was introduced in 1987 in Australia and is one of the highest market
share organisation comparatively to any of the energy drink company in the world. It has been
identified that Dietrich Mateschitz an Australian entrepreneur was significantly inspired by an
existing energy drink name Krating Daeng. This impression lead towards introduction of this
company to provide a tremendous drink to customer’s. Organisation offer wide range of products
for example, Red bull energy shots, Red bull total zero, Red bull Coca-Cola etc. and have
significantly created its own brand in an effective manner by generating awareness. However, it
has been identified by passing every there are some factors in internal and external environment
that have capability to 4. affect organisation operations. In this it is essential for organisation to
undertake significant measures and practices to overcome the threats in effective manner and
maximize their strength to enhance their competitiveness and profitability in industry.
3. Analysis of Marketing Environment
External analysis
PESTLE Analysis
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Political:
The number of political factors such as trade regulations, government agencies such as
joining free trade areas and more that can affect business operations of Red Bull Energy Drink
Company politically such as corruption level of market, government restriction on consumption
of energy drink based upon health and safety of consumers, press freedom and more. These
factors can affect overall sales of Red Bull. It has been identified that there is significant change
is government policies related to tax reform in Australia, which is required for this company to
abide (Leeman, 2021). However, it has been identified that country is politically stable that
provide good opportunity for Red Bull for their growth. In order to overcome tax reforms
challenges it is essential for company to implement effective strategies, for example trade policy
in order to make sure that their sales do not affect health of the population.
Economical:
It has been identified that economic condition can have significant impact on Red Bull
production as well as selling, as in some situations when Australia is facing high inflation rate
than in this case company may have to face high cost of raw material. This will significantly lead
them to increase price of their product for consumers (Li and Alvarenga, 2021). Furthermore, it
has been underlined that changes in interest rate in Australia and also make Red Bull to pay high
interest on the loans that are being undertaken by them. Along with this currency fluctuation can
also have major impact upon company. In this case it is essential for company to adjust their
costing in effective manner. However, Australia is a developed country in which company can
have each of resources and availability of raw material through which company can conduct their
operations in effective manner. Furthermore, it has been identified that approximate 20% of
households in Australia earn 48% of all income. This offers significant opportunity for Red Bull
to enhance their growth.
Social:
It has been identified that lifestyles of population are changing in a dynamic manner for
example, population growth, change in age structure and more. The modern culture is more
inclined towards consumption of energy drinks in Australian consumer segment (Paley, 2021).
This is a great opportunity for Red Bull that will allow them to make innovation in their products
and services in an effective manner. However, it has been identified that in Australia in which
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variety of population is health conscious that can significantly make less production or sales, in
this company is required to implement effective strategies to overcome this challenge.
Technological:
Technology is changing in a fast paced manner in which it is essential for modern
business is like Red Bull to implement (Purwadisastra and Priyana, 2021). It has been identified
that Red Bull is operating their business services in food and beverage industry. In this research
and development proves to be and significant opportunity in which company with the help of
taking advantage of internet can advertise their products and services with the help of promotion
and internet strategies. It has been identified that social media is one of the fastest growing
technological change which is disrupting organisation performance and productivity. In this it is
essential for Red Bull to undertake use of different types of social media technologies in order to
ensure more competitive growth. However it has been identified that due to the emergence of
artificial intelligence companies nowadays are taking advantage of attractive advertisements in
which Red Bull can face challenge for higher competition. For this organisation is required to
significantly implement attractive marketing strategies with the help of technology.
Legal:
It is essential for organisation like Red Bull to implement all the rules and regulation that
comes under food and regulation legislative for example, Australian Consumer Law (ACL)
Company follows the entire legal requirement applicable in Australia in order to make sure that,
their products are healthy and qualities for human consumption without any kind of side effects
(Wibowo and Ronggowulan, 2021). Furthermore, it has been identified that organisation make
sure that their ingredients are according to the health authority of country with correct labelling.
It is one of the most important aspects that help company to manage their brand image.
Environmental:
It has been identified that Red Bull has faced lot of issues in context with environmental
factors that affected organisation brand image. There was number of fines that have been
imposed on this company due to recycling problem (SLIMANE, 2021). In order to overcome this
challenge company is required to effectively take advantage of effective recycling system and
take advantage of efficient strategies for producing their cans. This is a major challenge that has
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significant impact upon business performance of Red Bull which is essential for organisation to
effectively overcome.
Red Bull is having significant opportunity to increase their performance and profitability
by investing on more social media platforms. In addition to this, company is also having
opportunity in relation of innovating in healthier option in order to gain opportunities for
attracting health-conscious consumer base. While in terms with weakness it has been identified
that new environmental laws may impose threat upon company operations.
Internal Environmental Analysis
It has been identified that Red Bull is having significant capabilities in terms of unique
strategies for product and undertake advantage of research based formula and displays
innovation in retail stores. Company is having strong distribution network and effective alliance
with other companies. For example, Red Bull develop close working bond and sign multi-year
global partnership for example strategies alliance of Red Bull with GoPro.
Organisational culture: There are some certain written as well as unwritten rules that include
company strategies, goals, approaches to labour, towards community, investors, consumers and
more. It has been identified that there is freewheeling culture in Red Bull that allow company to
have unique and innovative ideas.
Vision: To deliver superior consumer service in a highly profitable and highly efficient manner.
Mission: “To enable people to accomplish beyond their normal capabilities”
Values: Red bull is having significant values such as maintaining work life balance, offer career
advancement opportunities and innovation.
Long term strategic orientation: Company aim towards increasing their market share and profits
despite down-turn of economic situations and offer customers with number of choices. However,
it has been identified that company is facing threats from its rivals.
Products and services: Red Bull offer wide range of products such as Red Bull Total zero, Red
Bull Energy Shot, Red Bull Sugar-free and more.
Red Bull is having its strength in terms of innovating in more and more options in which
company have capability of offering something unique to customers. While if it is talked about
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weaknesses, it has been identified that company invest comparatively less in social media
platforms comparatively from other rivals.
4. TOWS Matrix Strategies
TOWS matrix is defined as an interpreter framework through which organisation can access,
develop, compare and further emphasize upon business strategy. With the help of this
organisation can effectively evaluate and select appropriate business strategy in order to
effectively accomplish organisational objectives and goals (Idrisova, 2021). With the help of this
company can significantly maximize their profitability base while enhancing their brand values
in effective manner.
TOWS Matrix for ( Red Bull Energy
Drink)
Internal Environment
Strengths Weaknesses
1. Brand loyalty 1. Health associated
risks
2. Own franchises 2. Athletes
3. Massive exposure in
market
3. Poor financial
management
SO Strategy WO Strategy
External
Opportunities
1. Energy food SO1 Use unique
marketing strategies for
advertisement
WO1 Having the
brand loyalty, if
red bull were to
circle energy food
people may just
buy it because it is
the red bull brand
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Environment 2. Different sports SO2 Sign up more
athletes within different
sports
WO2 Develop
strong costing
system
3. Expand by buying
other brands
SO3 Provide more
healthy options
WO3 Use 100%
recycled cans
Threats ST Strategy WT Strategy
1. The government ST1 Advanced drink WT1 Target young
people with more
healthy options
2. Environmental laws ST2 Collaborate with
small brand in order to
have more exposure
WT2 Contribute to
reduce Co2 emission
3. Competitors ST3 Use exposures to
compete against
competitors
WT3 Increase brand
awareness
According to the TOWS matrix of Red Bull energy it has been identified that company is facing
threats in terms of government rules and regulations such as tax reforms challenges,
environmental laws in which company is required to emphasize upon having less adverse impact
on environment due to their production process. Along with this significant increase in
competitors is also the major challenge (Elsayed Fayed, 2021). Furthermore, it has been
identified that company is facing weaknesses in terms of health associated risk, fluctuation in
currency. In this with the help of taking advantage of their strength such as brand loyalty,
massive exposure and own franchise company can significantly collaborate with small brands in
order to enhance their exposure by enhancing the strength. Organisation can significantly
overcome the threat of aggressive competition. In addition to this it has been underlined that in
terms of environmental law threats organisation with the help taking advantage of improved
recycling system can take use of aluminium cans which are 100% recyclable. This strategy will
allow organisation to overcome the challenges of environmental laws in effective manner.
Furthermore, it has been identified that company is having significant opportunity in terms of
providing more energy food to young generation, as they are more health conscious. In this
company by producing drink with sugar free version can significantly gain attention of this
consumer segment who is more health conscious (Mashari, 2021). With the help of this
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organisation can significantly overcome the challenges of competitors and can assured more
competitive advancements in industry. Furthermore, it has been identified that the other major
challenge is related to economic terms in which there is significant fluctuation in currency level
due to global economic condition. It is one of the most important aspect in which it is essential
for Red Bull to emphasize upon as global economic crisis have direct impact upon this company
sales. In this with the help of taking advantage of more effective costing system company can
significantly align their budget with the changes in environment. With the help of this company
can effectively overcome the challenge of fluctuation in currency in effective manner. However,
it has been underlined that this challenge cannot be fully mitigated but negative aspect of this can
be reduced at some extent to which company will not suffer major loss. Thus, according to the
above mentioned analysis it has been identified that there are a number of weaknesses and
threats that are being facing by Red Bull company (WOO, 2021). These can be effectively
overcome with the help of opportunities and maximizing the extent of strength. According to the
above conducted TOWS matrix it has been identified that with the help of taking advantage of
significant strategies company can have opportunity to maximize their growth and development
opportunity through which they can enhance their profitability and sales that great extent. These
strategies will also facilitate company to enhance their long-term sustainability in market while
managing the challenges prevailing in internal and external environment in effective manner.
5. CONCLUSION
According to the above mentioned report it has been concluded that environmental analysis
acts as a significant strategic tool that will not only allow organisation to identify threats,
opportunities and trends prevailing in internal and external environment but also facilitate them
to implement strategies accordingly. With the help of this organisation can examine all the
internal and external components that have influence upon organisation performance. With help
of this company can undertake various methods such as pestle analysis and TOWS Matrix that
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will aid organisation to determine the factors in an effective manner and further take advantage
of opportunities. With the help of this company can not only maximize the productivity and
performance but can also take advantage of significance strategies according to the factors
prevailing through which long term growth can be assured. This report states that pestle and
TOWS strategy act as an effective tools through which analysis of marketing environment can be
conducted in effective manner. With the help of this company can significantly identify their
competitiveness in industry while overcoming challenges.
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