MBA Marketing Management Assignment Sample

Red Bull’s integrated marketing communications mix has been so successful that the company has created an entirely new drink category—functional energy drinks—and has become a multibillion-dollar brand among competition from beverage kings like Coca-Cola and Pepsi. In less than 20 years, Red Bull has become the energy drink market leader by skillfully connecting with the global youth. Dietrich Mateschitz founded Red Bull in Austria and introduced the energy drink into Hungary, its first foreign market, in 1992. Today, Red Bull sells 4 billion cans of energy drinks each year in over 160 countries.
So how does Red Bull do it? The answer: differently than others. For years, Red Bull offered just one product, Red Bull Energy Drink, in one size—a slick silver 250 ml. (8.3 oz.) can with a European look and feel. Red Bull’s ingredients—amino acid taurine, B-complex vitamins, caffeine, and carbohydrates—mean it’s highly caffeinated and energizing, so fans have called it “liquid cocaine” and “speed in a can.” Over the last decade, Red Bull has introduced three additional products: Red Bull Sugar-free, Red Bull Energy Shots, and Red Bull Cola—each slight variations of the original energy drink.

Since its beginning, Red Bull has used little traditional advertising and no print, billboards, banner ads, or Super Bowl spots. While the company runs minimal television commercials, the animated spots and tagline “Red Bull Gives You Wings” are meant to amuse its young audience and connect in a nontraditional, non-pushy manner.

Red Bull builds buzz about the product through grassroots, viral marketing tactics, starting with its “seeding program” that micro-targets trendy shops, clubs, bars, and stores. As one Red Bull executive explained, “We go to on premise accounts first, because the product gets a lot of visibility and attention. It goes faster to deal with individual accounts, not big chains and their authorization process.” Red Bull is easily accepted at clubs because “in clubs, people are open to new things.”

Once Red Bull has gained some momentum in the bars, it next moves into convenience stores located near colleges, gyms, health-food stores, and supermarkets, prime locations for its target audience of men and women aged 16 to 29. Red Bull has also been known to target college students directly by providing them with free cases of Red Bull and encouraging them to throw a party. Eventually, Red Bull moves into restaurants and finally, into supermarkets.

Red Bull’s marketing efforts strive to build its brand image of authenticity, originality, and community in several ways. First, Red Bull targets opinion leaders by sampling its product, a lot. Free Red Bull energy drinks are available at sports competitions, in limos before award shows, and at exclusive after-parties. Free samples are passed out on college campuses and city streets, given to those who look like they need a lift.

Next, Red Bull aligns itself with a wide variety of extreme sports, athletes, teams, events, and artists (in music, dance, and film). From motor sports to mountain biking, snowboarding to surfing, dancing to extreme sailing, there is no limit to the craziness of a Red Bull event or sponsorship. A few have become notorious for taking originality and extreme sporting to the limit, including the annual Flugtag. At Flugtag, contestants build homemade flying machines that must weigh less than 450 pounds, including the pilot. Teams then launch their contraptions off a specially designed Red Bull branded ramp, 30 feet above a body of water. Crowds of up to 300,000 young consumers cheer on as the contestants and their “planes” stay true to the brand’s slogan: “Red Bull gives you wings!”

Another annual event, the Red Bull Air Race, tests the limits of sanity. Twelve of the world’s top aerobatic stunt pilots compete in a 3.5 mile course through a low-level aerial racetrack made up of air-filled Red Bull branded pylons 33 feet apart and reaching 65 feet in height. In other words, pilots fly planes with a 26-foot wingspan through a gap of 33 feet at 230 mph. These Red Bull–branded planes crash occasionally, but to date no fatalities have ever occurred.

Red Bull’s Web site provides consumers with information about how to find Red Bull events, videos of and interviews with Red Bull–sponsored athletes, and clips of amazing feats that will be tested next. For example, Bull Stratos is a mission one man is undertaking to free-fall from 120,000 feet, or 23 miles high. The jump will be at- tempted from the edge of space and, if successful, it will mark the first time a human being has reached supersonic speeds in a free fall.
Red Bull buys traditional advertising once the market is mature and the company needs to reinforce the brand to its consumers. As one Red Bull executive explained, “Media is not a tool that we use to establish the market. It is a critical part. It’s just later in the development.”

Red Bull’s “anti-marketing” IMC strategy has been extremely successful connecting with its young consumers. It falls directly in line with the company’s mission to be seen as unique, original, and rebellious—just as its Generation Y consumers want to be viewed.

1. In your opinion, should Red Bull do more traditional advertising? Why or why not? 
2. Discuss Redbull’s segmentation strategy and analyze their target market
3. With evidence from the case, analyze how Redbull implemented a holistic marketing strategy. 
4. Analyze Redbull in terms of the traditional marketing mix and the modern marketing management 4Ps

Solution

In my opinion, Red Bull does not necessarily require additional traditional advertising for the sake of its continued success. Red Bull is a company that has made a name for itself by utilizing an “anti-marketing” strategy that focuses on being unique, original, and rebellious. Red Bull has been able to capture the attention of their target market by utilizing micro-targeting, with the majority of their consumers being youth aged 16-29. The company has positioned itself in key locations such as trendy shops, clubs and bars, college campuses, and health-food stores, which are frequented by its target market. 

This strategy has enabled the company to successfully connect with its young target market and build a strong brand image. Red Bull has found success by focusing its efforts on more creative and innovative tactics such as grassroots, viral marketing efforts, and its sponsorship of extreme sports, athletes, events, and artists (PV Vyshnavi 2022). Red Bull utilizes a holistic marketing strategy that combines product, price, place, and promotion. The company offers a variety of products, with pricing that is relatively low, making its products more affordable and appealing to its target market.

In summary, Red Bull should not invest heavily in traditional advertising, as it does not align with its brand identity. Instead, the company should continue to focus on its current marketing strategies. This includes their grassroots, viral marketing efforts, “seeding program” and sponsorship of extreme sports, athletes, events, and artists. All of these tactics have enabled Red Bull to effectively connect with its target market and build a strong brand image.

Red Bull's segmentation strategy appears to be based on targeting specific locations and demographics that are likely to be interested in its products. For example, Red Bull's targeting system primarily focuses on trendy shops, bars, stores, and clubs through its "seeding program", which then ventures into convenience stores near colleges, gyms, health-food stores, and supermarkets in order to reach its desired demographic of men and women aged 16 to 29, who are more likely to be accepting of new and creative products and appreciate the active and extreme lifestyles associated with the Red Bull brand (Moore 2022). 

In addition to targeting specific locations and demographics, Red Bull also uses event sponsorship and viral marketing tactics to reach and connect with its target market. For example, Red Bull promotes its brand as a leader in the energy drink market by sponsoring extreme sports, athletes, teams, events, and artists. By aligning itself with these types of events and personalities, Red Bull is able to appeal to the interests and values of its target market and create a sense of community and belonging among its customers.

3. With Evidence from The Case, Analyze How Redbull Implemented Holistic Marketing Strategy?

Red Bull has implemented a holistic marketing strategy by considering all aspects of its marketing mix and integrating them in a cohesive and consistent manner. For example, the company's marketing approach is centered around building an image of originality, authenticity, and community by utilizing grassroots and viral marketing strategies, event sponsorship, and targeted distribution (Fowlke 2021). These tactics help to create a unique and memorable brand experience for Red Bull's customers and to build a strong connection between the brand and its target market.

In addition, Red Bull's marketing mix is designed to create a cohesive and consistent brand image across all channels and touchpoints. For example, Red Bull's use of event sponsorship, viral marketing, and targeted distribution is aligned with its brand values and message and helps to create a seamless and integrated brand experience for its customers. Additionally, Red Bull's marketing efforts are designed to be flexible and responsive to the needs and preferences of its target market, which helps to build a strong and lasting relationship between the brand and its customers.
 
4. Analyze Redbull in Terms of The Traditional Marketing Mix and The Modern Marketing Management 4Ps.

In terms of the traditional marketing mix, the product strategy of Red Bull involves offering a single product, Red Bull Energy Drink, with slight variations of Red 
Bull Sugar-free, Red Bull MBA assignment expert.

Red Bull's pricing strategy is based on premium pricing, with a higher price point compared to other energy drinks in the market. This premium pricing strategy involves targeting specific locations and demographics that are likely to be receptive to its products. As mentioned previously, Red Bull initially targets trendy shops, clubs, bars, and stores through its "seeding program," and then targets convenience stores located near, gyms, health-food stores, supermarkets, and colleges. Its targeted distribution helps to reach the primary target market of people aged 16 to 29, as well as helps build brand recognition and loyalty.

In terms of promotion, Red Bull's marketing mix uses a combination of traditional and non-traditional techniques. Traditional advertising such as print, billboards, banner ads, or Super Bowl spots are not heavily utilized; however, Red Bull primarily relies on grassroots and viral marketing tactics, event sponsorship, and targeted distribution to promote its products. These tactics help to create a unique and memorable brand experience for Red Bull's customers and to build a strong connection between the brand and its target market (Niven 2014).

With regards to modern marketing management 4Ps, Red Bull's product strategy involves the provision of a single product, the Red Bull Energy Drink, in one size, with slight modifications such as Red Bull Sugar-free, Red Bull Energy Shots, and Red Bull Cola. Their pricing strategy is based on premium pricing, implying a higher price in comparison to other energy drinks available in the market (Kareh 2022). 

Red Bull's place strategy involves targeting specific locations and demographics that are likely to be receptive to its products, and its promotion strategy uses a combination of traditional and non-traditional techniques to build buzz about its products and build a strong connection with its target market. Overall, Red Bull's marketing mix is designed to create a cohesive and consistent brand experience for its customers and to build a strong and lasting relationship with its target market. 

References:

Fowlke, E 2021, Grow Your Brand With Holistic Marketing, BeNatural Media, BeNatural Media, viewed 25 December 2022, .

Kareh, A 2022, ‘Council Post: Evolution Of The Four Ps: Revisiting The Marketing Mix’, Forbes, 12 October, viewed 25 December 2022, .

Moore, K 2022, Red Bull’s approach to marketing: then and now, Hashtagpaid.com, viewed 25 December 2022, .

Niven, R 2014, Marketing strategies for achieving business growth, the Guardian, The Guardian, viewed 25 December 2022, .  

PV Vyshnavi 2022, Analyzing The Best Red Bull’s Marketing Campaign, StartupTalky, StartupTalky, viewed 25 December 2022, .