Red Bull Marketing Strategies: A Comprehensive Analysis

Desklib provides solved assignments and past papers to help students succeed.

Unit 2: Marketing Essentials
Red Bull
Student Name:
Student Id:
0

Table of Contents
Introduction:....................................................................................................................................3
Discussion........................................................................................................................................4
1. Explain the role of marketing as a function of business, opposed to marketing as a
department in a company.............................................................................................................4
1. Explain the structure of the marketing department of your selected organisation, and
succinctly explain a minimum of two different marketing roles (e.g. Chief Marketing Officer,
Marketing Manager, and the Social Media Manager).................................................................7
2. Provide an overview of the marketing process, and analyse the importance of the
marketing environment to the marketing function......................................................................9
3. Analyze how the marketing function influences and interrelates with other departments in
the organisation (a minimum of 2 departments)........................................................................11
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14
1

Introduction:
Different techniques are often used in order to introduce and sell products, which can be either
physical or virtual in the form of a service refers to the marketing. The way value is created
amongst the consumers with the help of internet ads, commercials, and different blogs, directly
impact on the consumer. International marketing for Multinational Corporations is based on
large-scale operations, three-faced competitions and advanced technology. This paper will
discuss about the Red bull, an Australian Company that has the highest share in the international
market of energy drinks. The paper will evaluate and analyze the techniques that red Bull uses in
order to achieve its marketing goals in the international markets.
2

Discussion
1. Explain the role of marketing as a function of business, opposed to marketing as a
department in a company.
Marketing refers to the necessary process into the functions of the business. Marketing is not
only considered as the department where the teams or group of individuals is working together in
order to create the brand awareness among the customers (Baker, 2016.). Marketing is the
fundamental function of the business without which a company cannot run for long because
when the company fails to create the awareness among the customers the customers will not buy
the products of that particular company (Krush et al., 2016). The company strategizes towards
marketing.
Figure 1: Red Bull Marketing Strategy
(Source: Energydrink.redbull.com. 2019)
The below stated are the nature of marketing:
Process of Management: Marketing is been considered as the process of management.
Multinational Corporations have huge assets and since they operate in almost all the major
countries and with huge amount of wealth and investments – advertisement, marketing and
promotional campaigns are focused that ultimately can help expand and sell products globally. In
order to have greater collaboration – Marketing and Finance goals can be aligned in order to
3

drive business success. Financial driven goals are measured with the help of marketing and sales
forecasting process is also dependent on the marketing strategies. In a survey, 190 people at
director level were asked if marketing was critically important and 31% agreed, whereas 47%
emphasized it was important for the greater good of any organization
Anticipating the customer requirements: Marketing budgets are developed in order to get a
clear workflow and to manufacture the determined such cost that fulfils the customer’s
requirements (Fetahu 2014). Once finance is aware of the goals – perception can be changed.
Marketing is more of a growth centre. Moreover, marketing performance can easily be measured
in the financial metrics. Brand awareness can increase sales’ volume, perceived differentiation
can help identify sales trend whereas perceived and relative quality can help an organization
identify the market trend in order to spend finances accordingly (Jeffery 2010). Likewise,
marketing strategies and promotional campaigns majorly focused on customer retention can
further help finance do the profitability and cost analysis. Behavioral customer results like
number of transactions and share of wallet can ultimately let one focus on cash flow, return on
investment and customer gross margin. Marketing is more of a function than just an activity to
increase sales through promotional campaigns. Profits are supposed to be marginalized since
discounts are often offered to the customers when image building is the main focus by the
marketing department. Metrics like Return on Marketing Investment specifically classify the
marketing activities and techniques like Point of Purchase Marketing, Paid Digital Marketing etc.
can help figure the impact through analytical algorithm for increased rate of return and sales’
volume for the company (Jeffery 2010).
Satisfying Customers: The brand Red Bull is more focused on the promotional events – like
making mini websites Red Bull Stratos (Promotion of Felix Baumgartner’s jump) which is
perfect depiction of bold and daring. Sales were also stimulated with the help of Buzz Marketing.
Many students were hired to drive Minis (Naude 2012). Red Bull cans were also strapped while
students drove through the campus. Free samples were given to all the students and so this
marketing campaign was such a success.
Fulfills cost effective requirements of the customers: The brand has been bold and daring
enough to keep the control over media all over the world. More than 300 photographers,
cameramen and editors are dedicated to amazing videos, pictures, stories and reports. More than
4

$70 million was spent on Red Bull Stratos – live coverage in more than 50 countries. In the
following months, more than 1.5 billion dollars were earned. The marketing strategies actually
help boost the sales. More than 5 billion cans were sold in Japan, Saudi Arabia, South Africa,
Germany and France. Red Bull earned more than 6 billion Euros’ market share in 2016 by
keeping the brand for distinct audience as well as lifestyle. The advertisement objective for Red
Bull has been to create brand a major preference for Generation Y (active young males) that can
invigorate mind and body. Red Bull eliminates fatigue and exhaustion into the current generation
to enlighten and keep the focus towards the active lifestyle.
Process of Exchange: The Dragonfly effect model and The Athlete Machine were the major
campaigns that really helped with volume of sale. The first campaign involved Felix
Baumgartner’s jump – to highlight life is exciting even for people in their 40’s with the example
given (Naude 2012). The Athlete Machine, on the other hand – involved a number of athletes
with drifting sports cars and bikes. In just a couple of years, sales increased 6% whereas turnover
was 20% with operating income more than 85% for Red Bull. Major chunk of sales from Turkey,
South Africa, India and Poland is acquired. This is without any doubt due to the marketing and
advertisement campaigns Red Bull managed to ace.
Figure 2: Process of Exchande
(Source: Energydrink.redbull.com. 2019)
5

1. Explain the structure of the marketing department of your selected organisation, and
succinctly explain a minimum of two different marketing roles (e.g. Chief Marketing
Officer, Marketing Manager, and the Social Media Manager).
Red Bull uses Divisional organisational structure, which provides its business to gain advantages
and opportunists by achieving its organisational goals effectively and efficiently.
Figure 3: Red Bull organizational structure
(Source: Energydrink.redbull.com. 2019)
The structure of Marketing Department of Red bull states that there are specified roles and
principles for the marketing department. It helps in defining the job roles of the individuals
working in the department. Marketing strategies and channels are not just only important to drive
the business through finance department but also the Human Resource. Any organization can
only be as good as it is described to others. There are many communication verticals like social
media and website where the company’s reputation is maintained. For a single department like
Marketing, this sure is a lot of work and hassle to look after the reputation, implement any
necessary changes required, help spread the word and keep up as well. The marketing roles of
the department of marketing are been stated below:
6

Figure 4: Structure of Marketing Department of Red Bull
(Source: Energydrink.redbull.com. 2019)
The different marketing roles of the department of marketing are been stated below:
Wings Programme Leader: wings programme leader plans upon different marketing strategy that
should be implemented in the strategies for the successful marketing (Jobs.redbull.com. 2019).
Area Field Manager: The area field manager focuses upon the diversifying customers and
focuses upon extracting information of the needs of the customers. Several groups work under
the Area field manager of Red bull such as Glasgow Wings Team, Newcastle wings Team,
Leeds wings Team and Aberdeen wings Team.
The red bull team are dynamic, charming, entrepreneurial and fun loving by which they enjoy
the marketing of the product with different trials of the product among different events and
occasion to enhance the brand awareness among the customers (Wings Team Member. 2019).
7

Most Efficient
Least Efficient
Least
Expensive
Most
Expensive
2. Provide an overview of the marketing process, and analyse the importance of the
marketing environment to the marketing function.
Red bull have an unbeatable marketing process. If the talent within the company is substandard,
no marketing campaign can help better a company’s business. In the same way, HR practices
may fail if the marketing content is not up to the mark. With so much competition in the market,
brands need to create awareness so the potential employees can have an idea if they are the best
fit for the employer brand. Employee Value Proposition is focused by the Branding and
Marketing Department in order to communicate meaningful and authentic brand experience.
Without Branding and Marketing, right talent that can be taken in the longer run is hard to
attract. It is more about communicating regarding the cultural values of that company with the
right kind of differentiation than other competitors out in the market.Red Bull also believes in
value based assessment as mentioned by Mr. Walsh: “In every business that we see, character
trumps talent. You always select for character”(Gschwandtner 2012). The marketing process
helps the company to gain a competitive advantage over its competitors.
8

Figure 5: Competitive Advantage of Red bull
(Source: Created by the learner)
The marketing strategy of Red bull helps the company to gain a competitive advantage over its
rivals companies by increasing its quality and keeping its pricing strategy such that it attracts the
customers.
9

3. Analyze how the marketing function influences and interrelates with other departments
in the organisation (a minimum of 2 departments).
There’s variety of ways in which Marketing and R&D can be involved. Research and
Development department usually involves product technology and strategy planning, market
analysis, data collection, evaluation and screening. Now in order to make the innovation process
successful – companies need to ensure marketing for idea generation and evaluation for new
products. Product and technology specifications, product strategy, and project review can only be
done once competitors’ offerings’ trends are analyzed. Research and Development department
can always quantify the work to help the customers. The cross-functional teams usually help
discover the customer needs based on which reports for Marketing can be made. Marketing
Department can help people experience all the critical benefits through right marketing strategies
after R&D department is done with their contributions. Company can only turn into a
competitive one once these two departments are aligned for customer needs’ fulfillment. Red
Bull has been focused towards product innovation, market segmentation, and channel innovation
with the ‘pull’strategy. Red Bull’s R&D is majorly focused on product innovation as many soft
drinks already had paved way to the market. Mental energy, sports’ energy and thirst quenching
are the main factors that could have only been satisfied with Red Bull and could replace the
already existing beverages and cola drinks (Naude 2012). Not only was the product innovation
became the main focus – awakening effect for Generation Y also turned out a plus in this. With
all the marketing and promotional campaigns previously mentioned, this became the main focus
for product innovation. Young consumers, sports fanatics and media fans were included with
respect to market segmentation for Red Bull. Sports ‘efforts and collaborations ultimately paved
way to brilliant marketing campaigns. Formula 1 car racing and other motorsports’ number 1
sponsor choice has been none other than Red Bull for all these years for a reason. Entrance to
market has been ensured with the help of different distribution channels as well as the media
pages and commercials. Retail distribution channels were also persuaded to keep and promote
Red Bull Energy drinks (Ambler et al 2004).Guerilla marketing was the main focus until public
was not fully aware of the brand. Bars and clubs were meanwhile the focus and WTP
(Willingness to Pay) spoke volume for the brand. With new formula, and packaging – brand
represented and marketed itself very well with right kind of distribution.
10

Red Bull has been one of the very successful brands just because all the departments are well
interlinked. Marketing department keeps all the operations in a smooth flow. From ideation and
innovation to execution is the recruitment approach when it comes to Red Bull(Donaldson
2019).This is worth mentioning here that the description has such clarity that it aligns perfectly
with employee value proposition and brand positioning. Red bull products are bold and active to
take risks and enhances teh creativeness among customers. Word of mouth marketing and
networking really play vital role when it comes to recruitment as well. Potential employees not
only pick Red Bull but Red Bull welcomes them just as much with the right approach.
11