Red Bull's Marketing Strategies and Brand Extension Report

This report examines the marketing strategies and brand extension process of Red Bull, an Austrian beverage company. It begins with an introduction to marketing's importance and the report's focus on Red Bull. The main body includes a discussion of the methodologies used, particularly qualitative and quantitative research. It analyzes Red Bull's brand value using Kapferer's prism and describes the target market using the STP model (segmentation, targeting, and positioning). The report further delves into market analysis using PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors, and applies Ansoff's matrix to explore market penetration, product development, and market development strategies. It then discusses Red Bull's new sugar-free energy drink and addresses competitive challenges in the Irish beverage industry. The report concludes by emphasizing the importance of a strong marketing function for successful brand extension, referencing several academic sources.

MG412 PRINCIPLES OF
MARKETING

TABLE OF CONTENTS
INTRODUCTION
MAIN BODY
CONCLUSION
REFERENCES

INTRODUCTION
 Marketing is the most important and valuable function to different
companies and businesses, and this is why currently top-level
management of each business tries to make its marketing function very
effective for gaining huge benefits and advantages in the market place.
 This report discusses the brand extension process and marketing
function of Red Bull company.
 Basically, Red Bull is an Austrian beverage business which currently
serves in many nations.
 This business generally offers energy drink products different
customers in market place. This report discusses different strategies of
marketing as well.

MAIN BODY
 Methodology
 Currently there are different methodologies available to a person or a business for
researching new data and information about the chosen topic, in which qualitative
method and quantitative method are considered as two key research methods in the
market place.
 In this situation, the research and development team of Red Bull can choose any
method for gaining data relating to different market places and their existing trends.
 Basically, qualitative method of research helps in gaining data and information
through interviews, meetings, books & journals and observation, etc.

CONTINUE…
 Findings
 Existing brand and brand values
 Current brand value of Red Bull is very effective in the market place, and this
is why it is gaining huge competitive advantage in market place.
 The Kapferer’s prism tool has been used below for showing the effectiveness
of brand value of Red Bull in global beverage industry.
 Physique: Red Bull is currently a multinational beverage business which
currently serves in more than 172 countries. Business expansion strategy of
this venture is very excellent, because management of this business has
succeeded in expanding own business operations many countries in its just 33
years of business operations.

CONTINUE…
 Description of the Target Market
 STP model
 STP model is mainly considered as the marketing strategy which includes three key stages
of targeting customers, in which these all three stages have been discussed below;
 Segmentation: Segmentation is one of key stage in this model, in which upper
management of Red Bull have to order its marketing team for dividing the whole large
market into small segments of market. It can divide market according to demographically
and geographically.
 Targeting: Targeting is the second and one of key stages in this model which can
encourage to company for targeting people or customers of Ireland on the basis of their
personal background.

CONTINUE…
 Analysis of the New Market, Including Trends
 PESTEL Analysis
 PESTLE analysis enables businesses for knowing impact of their six key
external business environment factors.
 Political factors: Currently political factors of Ireland very positively affect to
existing MNCs of nation, in which this will positively affect to Red Bull as well,
because it has imposed very low rate of taxation.
 Economic factors: Economic factors of country will negatively affect to this nation,
because its current economic conditions are suffering from slowdown due to corona
virus pandemic.

CONTINUE…
 Ansoff’s Grid Matrix
 Ansoff matrix is a set of four marketing strategies, in which all four strategies have to
be considered by this company while brand extension.
 Market penetration: This strategy contributes in using existing products and services
for selling them within present market segments.
 Product development: This strategy can encourage to business for producing a quality
product to launch it in existing market place.
 Market development: Market development strategy is helpful to Red Bull for
extending its brand in new market place.

CONTINUE…
 An Explanation of the New Product
 Recently the management of Red Bull has developed a new product, named;
sugar free energy drink which was developed with different natural ingredient.
According to management, this product will make customers very enthusiastic
and energetic in their daily live.
 Competition
 Currently there is huge competition in the beverage industry of Ireland, and
this factor will become threat to Red Bull. In this situation, marketing team of
company will require to use different strategies to systematically deal with this
market competition.

CONCLUSION
 It can be concluded that in this dynamic world, if
upper management of a business plans to extend its
brand in international market, then it will be highly
required to consider its marketing function properly,
because there is no venture can successfully extent its
brand in any new market place without considering
its marketing function.
 By following all mentioned strategies, the
management of Red Bull will be succeeded in
expanding own brand in new decided market place.

REFERENCES
 Books & Journals
 Dixon, H., Lee, A. and Scully, M., 2019. Sports Sponsorship as a Cause
of Obesity. Current obesity reports. 8(4). pp.480-494.
 Lopez, S., 2020. Value-based Marketing Strategy: Pricing and Costs for
Relationship Marketing. Vernon Press.
 Ghoshal, N. D., 2020. Digital marketing: the opportunity and the
imperative. International Journal of Public Sector Performance
Management. 6(2). pp.246-259.
 Kumar, N., 2016. How to Protect Your Brand When Your Endorser Goes
Rogue. Managing Intell. Prop. 259. p.20.