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Unit VII Case Study
Name of Student
Institution Affiliation
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Unit VII Case Study
This paper aims to analyze the case of the Red Bull, world’s largest company with the
biggest market share of an energy drink in the world. According to different statistics, this
company is proved to be one of the most profitable business enterprises in its respective niche
of the market, possessing the great marketing strategies (Sterling, E., 2015). Consequently, it
is vital to examine in a comprehensive way the techniques and methods pursued by the Red
Bull company in the fields of advertising and promotion as they are the impeccable examples
of the driving force of the success in the business field.
Being one of the top-performing companies among those engaged in the production of
the energy drinks and the other types of beverages, Red Bull possesses a wide range of the
strengths that ensure the intractable high position in the market. Having such production
tycoons as Coca-Cola, Pepsi, and Monster as its competitors, Red Bull still enjoys a great
customer flow and the brand loyalty (Kotler & Keller, 2012, p.498). First of all, one of the
pre-requisites of its dazzling success is the viral marketing tactics and innovative brand
strategies implemented by the company (Gorse, Chadwick & Burton, 2010). It is crucial for
Red Bull to amaze its potential customers with the media buzz about the product and thus to
spark the attention of the buyers. The other feature that differs the company from its rivals is
the direct determination of its target audience. While the other producers aim at the great
masses of people, Red Bull discerns only the youth aged 16-29 as its potential customers
(Kotler & Keller, 2012, p.498). Consequently, the niche in the market that is covered by the
company is narrower than those that are controlled by such giants as Coca-Cola and Pepsi,
positioning themselves as the brands for the whole family. It is a proved fact that in the
modern business the success comes with the right targeting of the product, and this is
certainly the case of the Red Bull that takes into account the crucial socio-demographic factor
(Friis, Lyng, Lasgaard & Larsen, 2014). Also, it follows the policy of the right promotion,
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avoiding the aggressive advertising, being rather concentrated on the direct sampling and the
cooperation with the bars and restaurants. However, this strategy might once impede the
progress of the company as today a lot of other producers win ground with the internet
marketing and online advertisements, reaching their target customers massively.
Nevertheless, the position of the brand is extremely strong as it attracts the attention
of the potential consumers of the beverage with its promotional events. The traditional
advertising might not work as powerfully as the strategies pursued by the Red Bull company.
One of the key drivers of its successful advancement in the field of the market that is
concerned with the distribution of the beverages is the “anti-marketing strategy” that is based
on the decision to fuel the interest of the buyers in a non-traditional way. It is predominantly
engaged in the organizing of the sports events that allow the guests to enjoy the extreme
sports and modern culture. Thus, it creates a sense of unity of the young people who attend
these venues. The promotion of the product is done in a natural way as it is served at the
respective events. Moreover, the brand loyalty is boosted by the emotional excitement of the
participants of the events, making an impact through the non-conscious channels (Brasel &
Gips, 2011). Therefore, this approach proves to be even more powerful than the traditional
advertising. However, the brand management does not neglect it at all, sticking to the policy
of advertising the beverage if there is a need to reinforce the product to its consumers.
The Red Bull’s sponsorships are also the example of the efficacious marketing of the
energy drink. It engages its potential clients in the extreme competition that is characterized
by the exciting activities and contests, thus creating a sense of the vividness of life. Its contest
that aims to establish a person who designs the most powerful handmade flying machine is
well-known around the globe. Flying is associated with the wild energy and the opportunities
to transcend the boundaries of the ordinary life. It is a great booster of the attention of the
youth as the college students are known to be active and enthusiastic.
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Consequently, these events are the significant tool of involving the youth in the
activity that is concerned with the brand and thus prove that the concept of the rebellious and
energetic people can be attractive and has to be enforced with the sales of the Red Bull drink.
This is a greater investment of the funds of the company than the traditional advertising as it
serves as the unusual marketing campaign that is recognized by many people.
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References
Brasel, S. A., & Gips, J. (2011). Red Bull “Gives You Wings” for better or worse: A doubleedged impact of brand exposure on consumer performance. Journal of Consumer
Psychology, 21(1), 57-64.
Friis, K., Lyng, J. I., Lasgaard, M., & Larsen, F. B. (2014). Energy drink consumption and
the relation to socio-demographic factors and health behaviour among young adults in
Denmark. A population-based study. The European Journal of Public Health, 24(5),
840-844. Retrieved from:
http://eurpub.oxfordjournals.org/content/eurpub/24/5/840.full.pdf. Accessed 17
January 2017.
Gorse, S., Chadwick, S., & Burton, N. (2010). Entrepreneurship through sports marketing: A
case analysis of Red Bull in sport. Journal of Sponsorship, 3(4), 348-357.
Kotler, P., & Keller, K. L. (2012). Marketing Management (14th ed.). London: Pearson.
Sterling, E. (2015). Red Bull: An analysis of the success of Red Bull and their international
marketing strategy. Bachelor of Commerce. Best Business Research Papers, 8, 1-107.