Verified Document

Globalization And Strategy Of Red Bull Essay

Strategy and Globalization of Red Bull Red Bull is a global leader in an energy drink and operating in more than 167 countries. The company has been able to dominate the energy drink markets because it focuses on the emerging markets. Over the years, Red Bull has taken the advantages of rapid economic growth of emerging markets in Asia and Latin America to promote its brands and reap the superior market shares. The sporting events have been the major strategy that the company has employed to enjoy market advantages globally. For example, Red Bull uses unconventional marketing techniques that include guerilla marketing, stunt events, Street Luge Racing, Mountainbike competition, and Motocross Freestyle to promote its brand globally.

Introduction

Red Bull is an Austria multinational energy drink producing company operating in 167 countries. In 2014, the Energy Bull sold over 5.6 billion cans and employs more than 10,410 employees compared to 9,694 in 2013. Between 2013 and 2014, Red Bull increased the sales by 4.2% with the turnover from $5.5 billion to $5.6 billion. The internationalization strategy contributes to the market success of Red Bull in Turkey, India, South Africa, Japan, and Russia along with ongoing brand investment and efficient cost management. Typically, Red Bull has pioneered its brand globally, which has successfully made Red Bull brand to become synonymous to an energy drink. An on-going market success of Red Bull over the years has influenced other multinational soft drink companies such as Coca-Cola and Pepsi-Cola to launch their brand of energy drinks. Despite a rising competition from other companies, Red Bull remains ambitious and bullish in its corporate brand because the competitors are unable to take away market shares from Red Bull. Apart from energy drink business, Red Bull also manages and owns other businesses that include TV broadcasting, youth academies, online clothing, and construction business.

Typically, Monster Energy represents a biggest and dynamic threat to Red Bull because Monster's drink contains more natural ingredients that many customers consider desirable in taste. However, Red Bull has been able to maintain its leading position because of its unconventional global marketing strategies and guerilla marketing technique. The guerilla marketing is the technique of promoting the brand using events and stunts techniques related to sport (X-games), music, adventure, and parties. For example, the company has implemented different promotional events to enhance its market strategy and brand advantages in different countries. In Nepal, the company uses guerrilla marketing strategy to promote its brand. Moreover, Red Bull organized footballing competition globally and was one of the major sponsors of World Cup in South Africa. In the United States, Red Bull promotes two football team with the goal to promote its brands among soccer loving people across the United States.
The internationalization is another strategy that Red Bull has employed to achieve comparative market advantages. (McDonald, 2007).Typically, Red Bull has developed a broad geographic present in the emerging market to achieve a long-term growth. Fan (2008) defines an emerging market as a country that is rapid experiencing transition in the economic and political development. Thus, Red Bull takes advantages of a rapid economic growth in the emerging markets to launch its product in Asia, Latin American and Africa. Kotler & Keller (2009) point out that an emerging market represents a great opportunity for Red Bull. Between 1987 and 2010, the company has expanded into…

Sources used in this document:
Reference

Asiedu, E. (2016). How to Create and Sustain a Strategic Marketing Plan through the 4p's of Innovation: With reference to Red Bull Energy Drink Company.

Canadean (2014). Red Bull GmbH: Consumer Packaged Goods - Company Profile & SWOT Report. Canadean Company Reports.

Euromonitor International (2013). Passport: Red Bull GMBH in Soft Drinks [pdf].

International Journal of Commerce and Management Research. 2(1): 28-30.
Cite this Document:
Copy Bibliography Citation

Related Documents

Business-Level and Corporate-Level Strategies: The Coca-Cola Company...
Words: 2066 Length: 6 Document Type: Essay

Business-Level and Corporate-Level Strategies: The Coca-Cola Company Business level and corporate level strategies This paper analyzes the business-level and corporate-level strategies of the Coca-Cola Company in order to identify the most important strategies which have contributed to its success in the past and can help it in competing effectively in the long run. An analysis of its competitive environment has also been done in a view to assess and compare the strategies

Strategic Marketing Plan for Lemon Thirst Energy Drink
Words: 3288 Length: 11 Document Type: Research Paper

Introduction The American soft drink market has been gradually shrinking over the last two decades due to health concerns. Many health experts are warning against sugary and carbonated drinks, so the sales have naturally reduced. And several reports are showing that those who are no longer taking sugary and carbonated drinks are turning to alternative drinks such as teas, natural juices, water, and so on. This has resulted in the steady

Branding Barbie Brand Introduction Barbie Is a
Words: 1711 Length: 5 Document Type: Essay

Branding Barbie Brand Introduction Barbie is a well-known style doll brought to existence by the U.S. toy-company called Mattel, Inc. And was started in 1959. The brainchild behind Barbie is Ruth Handler who happened to be American businesswoman. She has been recognized for coming up with the doll through an inspiration of a German doll known as Bild Lilli. Barbie has turned out to be the figurehead of a brand of Mattel dolls

Product Life Cycle, or Indeed
Words: 791 Length: 3 Document Type: Essay

In developed or developing markets, more competition will exist, decreasing demand for the company's specific product and also increasing the marketing struggle, as brand loyalties and simple recognition will be higher for companies already established in the market (Foley 2010). Beginning entry into such a market with simple exporting is advisable, as it has reduced costs and lower risks than other entry methods (provided that manufacturing in the country

Interventionism From the Perspective of Realism Vs.
Words: 13409 Length: 44 Document Type: Case Study

interventionism from the perspective of realism vs. idealism. Realism is defined in relationship to states' national interests whereas idealism is defined in relation to the UN's Responsibility to Protect doctrine -- a doctrine heavily influenced by Western rhetoric over the past decade. By addressing the question of interventionism from this standpoint, by way of a case study of Libya and Syria, a picture of the realistic implications of "humanitarian

Hip Hop Culture in Saudi
Words: 4627 Length: 15 Document Type: Research Paper

Saudi Arabia is known as the home to the hip hop group, Dark2Men, who competed in MTV Arabia's Hip Hop Na reality show. Break dancing has also become popular as a pastime in the region. Though the exact music distribution and sales numbers are difficult to establish, there is huge listenership especially in satellite TV and radio Gana 45() Hip hop culture in the U.S. Hip hop has been a part

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now