Understanding Red Bull's Marketing: Events, Mix, and Risk Management

This report provides a comprehensive analysis of Red Bull's marketing activities. It begins with an introduction to the company and its market share, followed by a definition and classification of the special events organized by Red Bull, categorized into pop culture, sports, youth culture, and dance events. The report explores Red Bull's marketing strategies, emphasizing their innovative approach to engage with target customers through communication channels, particularly through event marketing. The role of the marketing mix (product, price, promotion, and place) in Red Bull's marketing strategy is thoroughly examined. The report then delves into Red Bull's brand promotion strategies, including segmentation, targeting, and positioning, and the importance of outdoor events. Finally, it addresses risk management considerations when organizing outdoor events, including financial challenges, reputational risks, and the security of event personnel. The report concludes by summarizing the key findings and emphasizing the importance of considering all relevant factors when developing outdoor events.

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Running head: UNDERSTANDING MARKETING AND EVENTS
Understanding marketing and events
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UNDERSTANDING MARKETING AND EVENTS
Table of Contents
Introduction:....................................................................................................................................2
Findings and analysis:......................................................................................................................2
Definition and classification of special events:...............................................................................2
Marketing activities of Red Bull and role events in overall marketing strategy:............................3
Role of marketing mix:....................................................................................................................4
Brand promotion of Red Bull:.........................................................................................................5
Risk management considerations:...................................................................................................6
Conclusion:......................................................................................................................................7
References list:.................................................................................................................................8

UNDERSTANDING MARKETING AND EVENTS
Introduction:
The report is prepared to analyze the overall and key marketing activities undertaken by
Red Bull. Red Bull is an Austrian company selling energy drink by Red bull GmbH that was
established in year 1987. Red Bull captures 70% of market share for functional beverages and
energy drinks. Role of marketing mix for informing their marketing strategy is also demonstrated
in the report. The promotion of brand by this energy drink company is done using segmentation,
positioning and targeting (Ducarroz et al. 2016). For planning the event of marketing promotion
of company, considerations about risk management is taken into account. Report also
demonstrate how the outdoor events should be organized for brand promotion of Red Bull. Risk
management considerations while planning outdoor events have also been demonstrated.
Findings and analysis:
Definition and classification of special events:
The special events organized by Red Bull are in correspondence to theirprogressive
marketing strategy, distinctive approach to marketing and exciting communication channels.
Moreover, Red Bull was sold in Austria that is the home market for drink. Various events
organized by company can be classified into pop culture events, sport events, youth culture
events and dance events.All such marketing strategies are regarded as revolutionary approach
that helps organization in organization and creating extreme events around world. Red Bull is
regarded to have authentic ownership because of creating, inventing and branding events. Events
of company are all social that is a skill with increasing importance. Visibility of brand is
enhanced and brand credibility is facilitated by having organic strengthening of social media
(Adamopoulos and Todri 2015). Core elements of Red Bull campaigns are social and digital

UNDERSTANDING MARKETING AND EVENTS
media that helps in providing relevant and direct communication platforms with target audiences.
A pop culture event was also established by company that was help in different countries and
thereby increasing the awareness of brand at global level. In addition this, some new events are
also organized that helps in reinforcing brand elements for show casing their brand. Sports
events that are developed by company incorporate kite boarding, BMX biking, skydiving, free
and extreme snowboarding (Farris et al. 2017).
Marketing activities of Red Bull and role events in overall marketing strategy:
The marketing approach of Red Bull remains unsurpassed in their ability to innovate,
grow and adapt in content world. Marketing strategy has not only focused on energy drink
promotion but it has helped in creation of brand embodying a distinct audience and lifestyle.
Some marketing strategies used by Red Bull are progressive and distinctive approach that is
aimed at constantly developing the brand. Such approach helps company in getting engaged with
their target customers through exciting and new channels of communication. Imagery in events
such as sports events helps company in satisfying psychological needs of customers for vitalizing
their body and mind (Kotler 2015). Youth culture and sports events organized by company helps
in building a level of identification and build a strong relationship with customers. The core
brand elements or building brand equity are meaningfulness, memorability, adaptability,
likeability, protectable and transferability. Factors that are integral to market strategy of Red Bull
is social media and digital campaigns. Furthermore, the main focus of Red Bull is on developing
inventive below the line promotions for reaching their targeted customer groups. Creating
genuine relationship with athletes is the key aspect of promotion strategy of Red Bull (Galan et
al. 2015). Several innovative ways are adopted by organization to reach their targeted customers.

UNDERSTANDING MARKETING AND EVENTS
Red bull football- Red Bull football activity is a sport marketing activity that focuses on
sports promotion. Marketing initiatives undertaken by company falls into two categories that is
sponsoring of adventure events and sports and sponsoring teams through outright ownership
(Lemon and Verhoef 2016). Teams in football is sponsored by Red bull
Red bull motor racing- Red Bull bought the jaguar racing team when the team was set up
for sale in year 2004. The racing team was bought by the company and was re branded leading to
a three championship of constructor. Some other racing teams such as Formula one racing team
and Scuderia Toro Rosso are also owned by company.
It is indicated by such market activities that the company was able to bring social media
effectively for marketing their event and it depicts demonstration of a shift to a more powerful
channels of marketing from traditional ways. Red Bull was able to establish connect with the
youth by taking the ownership of events.
Role of marketing mix:
Every organization make uses of a distinctive marketing mix for meeting the needs of
their targeted customers using 4Ps.
Product-Red Bull develops high energy products with the specific product formula
inclusion. Development of such products is the main concentration of product development
process and makes use of active ingredients such as taurine, caffeine, amino acids and vitamin.
High priority is placed on customer health aspects. Portfolio of products of Red Bull involves
Red Bull sugar free, Red bull energy drink, Red Bull simply cola, Red Bull zero calories and
editions of Red Bull such as blue, tropical and orange editions. The products offered by Red Bull

UNDERSTANDING MARKETING AND EVENTS
are produced differently and come with different varieties that offer wide variety choice to
customers.
Price-Pricing strategy used by Red Bull is premium pricing and the price are charged for
the perception of consumers at psychological level and because of this, drinks of Red bull is
considered as most expensive. Several patterns of geographical and promotional strategies are
integrated in pricing of Red Bull. The fact that premium price can be sustained by great targeted
brand compared to mass market brand made Red Bull to take its pricing strategy to extreme and
charging three to six times more than brand Coca Cola (Teigeler and Hahne 2014). Red Bull was
in the first category for being number one choice for customers and the customers will always be
demanding such drink. People prefer buying such drinks in bulk rather than buying single.
Nevertheless, the costing structure of Red Bull is most expensive compared to its competitors
such as Cloud9, Rockstar, Monster and Gatorade.
Promotion-Marketing communication strategy that is used by Red bull is based on five
columns such as opinion leader marketing, above the line strategy, sport marketing, event
marketing, opinion leader marketing and sampling. The product of Red Bull is promoted by
sponsoring teams and sport events such as motocross, BMX, mountain biking, formula 1, Red
Bull cape fear, Red Bull battle ground. Using such platforms enable company to communicate
with the sports persona and youth. Such promotional activities helps customer in recalling their
brand whenever they hear and see the energy drink. This would help increasing the customer
base of product (Kotler 2015).
Place-Place is concerned with provision and distribution of goods and services and the
distribution policy of Red Bull involves all the planned measures for distribution and product

UNDERSTANDING MARKETING AND EVENTS
provision. Since beginning, strategy of Red Bull was place their image in mind of customers as
premium brand of beverage compared to its competitors (Galan et al. 2015). Moreover, the
placing strategy of Red bull is to seed the happening place such as clubs, shops, bars and stores.
Red Bull is available to customers at their convenient locations such as retail outlet, supermarket
chain, casinos, bar, night clubs and convenience store. Selling of the product comes with
different strategy in different place. At convenience stores and supermarket, product is placed
along with other competitive products that give customers a choice to select from range of
products (Farris et al. 2017). Selling of product at night clubs and bars enables people mixing
drink with alcoholic beverages. However, the target market is different when the product is sold
in different outlets.
Brand promotion of Red Bull:
 Segmentation-The outdoor events organized by Red Bull should be segmented into
demographic, geographic, psychographic and behavioral. Using outdoor events by
segmenting on geographical coverage should encourage customers to find and know
more about products. On other hand, using demographic segmentation would help
company to capture the attention of customers that are increasingly knowledgeable.
Psychographic segmentation criteria would help organization to target their products in
categorization of social class and lifestyles of customers. On other hand, behavioral
segmentation should include criteria such as personality, status of users and loyalty
degree. Usual methods of marketing should be avoided by company and outdoor events
should be framed in such a way that it helps in identification of different segments of
meaningful customers that would help in adding value to company as a whole (Farris et

UNDERSTANDING MARKETING AND EVENTS
al. 2017). Now a days, customers are seeking innovative techniques for marketing of
products by company as their expectations are higher than ever.
 Targeting and positioning- Outdoor events organized by Red Bull involves organizing
sport events that should be in particular targeted to athletes, pilots and famous riders.
Such events should be intended to create brand value of company. The target audience in
case of category of energy drink is millennial customers and position strategy selection is
considered critical for success of long-term. Strategy used for brand positioning helps in
creating competitive advantage for organizations. Outdoor events organized by
organization should be targeted to such audiences that have existing knowledge of core
products of Red bull along with targeting some new customers as well (Kotabe and
Helsen 2014). Such events should be created in a way that helps in attracting customers
who have not tried products of Red bull. Drinks of Red bull should be tried by customers
that have excelled features of adding value.
Risk management considerations:
Considerations of managing risk relating to organization of outdoor events by Red Bull
will help in mitigation of risks. There are several uncertainties related to event organization that
can instantly result in adverse impact on reputation, property and people. . Recognition of risk
management is done in several degrees and is regarded as key component of responsibilities that
is associated with outdoor events (Lemon and Verhoef 2016).
 Risk related to financial challenges-Such challenges relating to financial aspect might
arises due to unforeseen circumstances. Financial liabilities of organization also acts as
hindrance in organizing outdoor events

UNDERSTANDING MARKETING AND EVENTS
 Risk related to hampering reputation of organization-If all the situations before and
after events are nit handled properly, this can cause damage to organization’s reputation.
Moreover, existence of risks relating to legal issues might lead to potential loss for
business.
 Risk of volunteer and employees- There exist certainty that persons volunteering events
might become injured and thereby leading to damaging reputation of products.
 Risk related to event personnel’s security-Organization of risk can have risk related to
security of personnel’s (Kotabe and Helsen 2014). Therefore, in order to ensure that there
are no several risks security staffs should be assigned to ensure professional staffs
security.
Conclusion:
The report is prepared to identify and classify various events organized by Red Bull for
attracting its target market and make them well acquainted with their product lines. Analysis of
marketing mix as a part of their marketing strategy depicts that Red bull employs a premium
pricing strategy for selling their products. Moreover, promotion of product is done by using
appropriate promotional techniques. The outdoor events created and organized by Red bull
should be intended to target to customers that have not previously used the product line of
company. Segmentation should be done in such a way that it helps in capturing major share of
market. However, organizing events is associated with several risks that should be mitigated by
appropriate formulation of risk management strategies. Therefore, Red Bull should develop their
outdoor events by considering all relevant factors.

UNDERSTANDING MARKETING AND EVENTS
References list:
Adamopoulos, P. and Todri, V., 2015, August. The effectiveness of marketing strategies in social
media: Evidence from promotional events. In Proceedings of the 21th ACM SIGKDD
International Conference on Knowledge Discovery and Data Mining (pp. 1641-1650). ACM.
Ducarroz, C., Yang, S. and Greenleaf, E.A., 2016. Understanding the Impact of In-Process
Promotional Messages: An Application to Online Auctions. Journal of Marketing, 80(2), pp.80-
100.
Farris, P.W., Shames, E.R., Johnson, R.R. and Mitchell, J., 2017. Red Bull (Abridged). Darden
Business Publishing Cases, pp.1-8.
Galan Ladero, M.M., Galera Casquet, C. and Singh, J., 2015. Understanding factors influencing
consumer attitudes toward cause‐related marketing. International Journal of Nonprofit and
Voluntary Sector Marketing, 20(1), pp.52-70.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the
customer journey. Journal of Marketing, 80(6), pp.69-96.
Teigeler, J. and Hahne, A.K., 2014. Market Analysis of Red Bull based on the countries
Germany, Switzerland and Austria.

UNDERSTANDING MARKETING AND EVENTS