Principles of Marketing: A Comprehensive Analysis of Red Bull

This report provides a comprehensive analysis of Red Bull's marketing strategies, brand value, and market analysis. It begins with an introduction to the principles of marketing and then provides a background on Red Bull, including its founding and market position. The report explores Red Bull's brand value, highlighting its advertising campaigns and website strategies. The Ansoff analysis is then applied, examining market penetration, product development, market development, and diversification strategies. A PESTLE analysis is also conducted, evaluating the political, economic, social, technological, legal, and environmental factors affecting Red Bull. The report concludes by summarizing the key findings and emphasizing the importance of marketing principles for product development. The report uses references to support the analysis.

Principles of
Marketing

Content
Introduction
Background of Red Bull
Brand value
Ansoff analysis
Pestle analysis
Conclusion
References

Introduction
 Principles of marketing are the most common principles
that are used by businesses for decades.
 These are used for evaluation and re-evaluation of
business so that business can reach to its maximum
potential and growth.

Background of Red Bull
 Red bull is an Austrian company established in 1987. It is an
energy drink sold by Red Bull Gmbh.
 Dietrich Mateschitz an Austrian entrepreneur got inspired by an
drink Kratina Daeng, he took this idea and changed the
ingredients according to the taste of Westerners and in
partnership with Chaleo introduces Red bull in Thailand.

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 The drink is sold in a can of blue and silver with the flavours
of regular and sugar free and with different artificial flavours
of fruits.
 It has highest market share as compared to other energy
drinks in the world , as in 2019 it has sold 7.5 billion cans.

Brand value
 Red bull has gained its success not just because the quality
of the drink they provide but because of the strategy of
advertising campaigns.
 With the high quality drinks and their catching way of
advertising products attract large number of customers
which increases the sales of the energy drinks by Red bull
that ultimately increases the brand value in the market.

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 Company's website is the site where all the information of
the brand is seen.
 Red bull mentioned about their story or background,
focused on customer service, attractive consistent designs,
outreach to community, reviews from customers in their
websites which help in improving existing brand value in
the market.

 Red bull is planning to expand their product line with new
product that is healthy drink. It gives fresh packed juices
and nutritional drinks.
 For the growth strategy the brand is adopting Ansoff
process. It has four steps which are used by organisations
so they can plan for the expansion and growth in the
market.
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Ansoff analysis
 Market Penetration- It is a strategy focuses on existing market and
product . In this companies increase the market share by selling large
quantities of the existing product. Prices of the products are reduced,
aggressive promotional activities are done and so on.
 Product development- It is the strategy used to sell new product in
already existing market. In this company bring new features, functions
and versions of existing product.

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Market development- It is the growth strategy which focuses on new
market for already existing products. Firms enter in new market in
context of location as well as targetted customers to increase sales.
Diversification- It is the strategy focuses on introduction of new
product in the new market. With this company starts operating in
areas where they have never operated.

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 From the above explanation it can be understood that
Red bull uses the product development strategy as it is
bringing the new product that is healthy drink in the
existing market.
 It is promoted through aggressive advertising and
promotion activities for the large number of sales and to
attract more customers.

Pestle analysis
Political factors- The issue faced by Red bull in their brand
extension is involvement of corruption level which made
exports and imports costly, hence affecting the sales of
company.
Economic factors- The issue faced by Red bull is the inflation
rate because of that ingredients used to make healthy drinks
get high in prices which make the price of the product high.