Red Bull

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What is their field of operation? Red Bull operate within the energy drinks sector of the soft drinks market. The product is an example of a 'functional ' drink. Functional foods respond to consumer interest in well-being and performance. The major multinational soft drinks companies are investing in the area of functional drinks, developing their own brands and buying up existing ones. This is seen as being important, given that their traditional soft drinks markets are at the maturity stage in many countries. For these multinationals, new functional drinks offer opportunities for renewed business growth. (Can talk about Cash cow and stars) What are their main products? The company was set up to market just one product, Red Bull…show more content…
Part of this idea involved recruiting 'student brand managers ' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties (as if encouragement was needed!) at which cases of Red Bull would be distributed. The brand managers would then report back to the company, giving the firm a low cost form of market research data. The use of this kind of marketing strategy has become known as 'viral ' marketing. It is as if a company sees no need for traditional informative or persuasive communications, rather in Red Bull 's case it used the youth 'underground ' to spread the popularity of the drink. So the firm would rather restrict the drink 's supply and not advertise it, expecting that growing numbers of target consumers 'catch the bug ' and its reputation spreads. Red Bull was a spectacularly successful example of the strategy working even though as we see later, its branding was aided by state intervention in countries like France and Denmark. By 2004, the worldwide energy drinks market was worth an estimated £1.6 billion; Red Bull had achieved a clear market leading position, with a 70% market share. The lure

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