Red Bull's 4p and Swot Analysis
European Consumer Markets: Issues and Trends
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
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
References: Pearson Education Canada (2007) Red Bull Case. [Online] Available at: http://wps.prenhall.com/wps/media/objects/3357/3438371/chapter%20cases/tuckwell_case04.pdf [Accessed: 06 December, 2011] Red Bull (2011a) How it all started Red Bull (2011b) Company figures. Available at: http://www.redbull.co.uk/cs/Satellite/en_UK/company-figures/001243026264745?pcs_c=PCS_Product&pcs_cid=1242989363173 [Accessed: 06 December, 2011] Red Bull (2011c) Products Red Bull (2011d) World Series. Available at: http://www.redbull.com/cs/Satellite/en_INT/World-Series/001242745950198 [Accessed: 04.12.2011] Red Bull (2011e) All About Red Bull X-Fighters Red Bull (2011f) Athletes & Teams. Available at: http://www.redbull.com/cs/Satellite/en_INT/Athletes/001242745950144 [Accessed: 06.12.2011] Roaring Haus Studio (2011) Red Bull marketing plan 2011-2012