Red Bull in Marketing

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Question 1
Marketing Research plays an instrumental role in all three phases of the marketing management process in: planning, implementation, and evaluation. 1. Discuss how Red Bull uses marketing research in the above three phases. The marketing research process as described by Kotler and Keller (2006:103) consists of the following steps: [pic]

The next sections detail an analysis of how Red Bull has been able to achieve planning, implementation and evaluation using the above marketing research process:

A. Planning

Red Bull’s Problem definition

The introduction of the case study describes the variety of energy drinks which is available on the South African market and the aggressive campaigns of Red Bull’s competitors. The challenges Red Bull had before entering the market are listed below: 1. Avoiding the trap of being perceived as a “sports” drink only. This is where others have failed previously. 2. Promote the product sufficiently so that awareness is well created within the South African market. 3. Avoid thinking bigger in terms of the potential consumers within the market category of energy drinks. 4. Product price

5. Ability to mix with alcoholic drinks.

The Research Plan

Red Bull designed its research plan as follows:
Data sources: Observation of current consumption of energy drinks within the South African market Research approaches: The research approach that was employed was mainly observation and surveys about customer perception about the product. Sampling staff would gather this information and try to convince consumers about the benefits of Red Bull. Research instruments: A questionnaire might have been employed by sampling staff while interviewing customers Sampling plan: Red Bull’s strategy is to market to specific targeted group which is not restricted to sports only. Contact methods: direct interviews

B. Implementation

Collecting Information

Primary data was collected as follows:
|Data Source |How did Red Bull proceed | |Observation |Red Bull does observation based on the feedback of the sampling people dedicated for educating the consumer. However, | | |observation is not the core of primary data collection mechanism used by Red Bull | |Focus groups |Not used by Red Bull | |Survey Research |This activity is the core of Red Bull’s data collection strategy. It has a dedicated team on the field who listens to | | |the customer and they gather fruitful info about: | | |Likes and dislikes | | |Misconceptions about the product | | |Complaints, e.g. high content of caffeine | | |Response to customer queries | |Behavioural |Red Bull puts much emphasis on the first impact the product has on the customer. They are encouraged to drink the whole | |data |to feel the effect. This will undoubtedly have a snowball effect and encourage new potential customers. | |Experimental |Red Bull targeted consumers who most likely would consume energy drinks, not restricted to sports only. Thus, it has | |Research |tried to strike two birds with the same stone by targeting most people who need physical...
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