Coursework 1 – Group presentation about:
Introduction of the company
Red Bull Ltd. is a very fast-paced company. Between the start of sales in Austria in 1987 and 2010 it has spread its activities to 162 countries worldwide (Red Bull, 2011a). It is present in all European countries, which enables this report to examine how Red Bull has to adapt its product and marketing to different cultures. The Austrian entrepreneur Dietrich Mateschitz founded Red Bull in 1984, realising that the trend of drinking “tonic water” in Asia could mean a market niche in Europe. He discovered the drink Krating Daeng in Thailand and made a license agreement with TC Pharmaceuticals to market the product in Europe (Pearson Education Canada, 2007). In 2010, the company’s turnover reached 3,8 bn. Euros by selling more than 4 bn. cans of Red Bull worldwide (Red Bull, 2011b). This is achieved by about 7,750 employees plus more than 5000 students promoting Red Bull in “Wing Teams”. The company is still led by the founder from its headquarters in Fuschl am See near Salzburg. It operates carefully on the one hand, usually financing growth with their cash flow (Red Bull, 2011a), on the other hand it invests 30 to 40 per cent in Marketing (Duff, 2010). Promotion
The Red Bull’s marketing activities can be divided into two main parts, one part for the younger (16-34) and the other part for the older (35-65) generations. The company's promotional activities are characterized by a certain advertisements or events are adapted in same way or some modification in each country just in different language. Promotion for younger generation
The company tries to avoid the usual methods of marketing, in their communication for young people. It uses buzz,- and viral marketing, word-of-mouth advertising (e.g. nick names: 'liquid cocaine' or 'speed in a can'), which places are for example YouTube and Facebook as well, and sponsorship in the extreme sports (Red Bull Air Race, Red Bull Crashed Ice etc.) The above mentioned advertising is very effective way of the brand and its drinks getting well known and liked in the group of younger generation. (Red Bull, 2011c) Promotion for older generation
In the 2011-2012 years they try to reach the older generations as well, so they put a bigger emphasis in the usual advertising places too (Media, PoS, Outdoor etc. look at more in the appendix). As several market research points out that people's lifestyle have been changed which reason is the today's accelerated world (Roaring Haus Studio). The company’s aim to increase interest among males and females age 35-65 and Red Bull is positioned as an alternative to coffee. “Agelessness is a consumer trend identified by Mintel Inspire that looks at how today’s middle-aged and seniors are refusing to “grow old gracefully” as previous generations were expected to do. They are living and working longer than any cohort before them and refusing to give up on so-called youthful pursuits such as music and motorcycles.” (Mintel, 2011) The busy adult people want to fit to all aspects of life that they need plus energy as the Red Bull tries to reach them with their products via usual advertising places (look at appendix). Red Bull’s marketing strategy
One of their strategies to focus on the younger generations and reach them with special events, mostly these are extreme sport events where their athletes wear eye-catching Red Bull branded clothes while they are doing their insane tricks. Special events
The company has world-wide series and nation-wide series as well (Red Bull, 2011d). Their aim is to keep the brand well-known for the youth with these events. One of these world-wide series is the Red Bull X-Fighters which was created in 2001 and now it has grown to become the biggest and most respected freestyle motocross tour on the planet (Red Bull, 2011e). Further there are other famous world-wide contests such as Red Bull Crashed Ice or...