Red Bull's Marketing Mix

4931 Words Dec 6th, 2012 20 Pages
Introduction

Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it has since then entered and established a foothold in various key markets like United States, Germany and United Kingdom. Through its well developed network of local subsidiaries in these and other key markets, it manages to make its products
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It is imperative for the company to understand its target customer and its need as well. All these factors act as a determinant of the overall operations of the company. A good way of analyzing these factors is through the ‘12C Framework’ (see Appendix 2) which enables the combined analysis of factors operating at both macro and micro level.

1. Country

The screening process of gathering relevant information on each country and filtering out the less desirable countries is usually the starting point of global marketing opportunities assessment (Jeannet & Hennessey, 2004, p.139). This screening process is enabled through study of basic country information and the SLEPT factors giving an overall picture of the macro environment. Red Bull has decided to target the Asian market as it dominates the energy drinks segment with over 40% market volume. The concept of energy drinks is yet to catch up in the regions of Eastern Europe, Central and South America due to low disposable income levels.

2. Concentration

Red Bull’s global marketing strategy is governed through the key European markets like Germany, United Kingdom, US in North America and, Australia & New Zealand in the pacific region. These key markets around the world provide the company a good overall geographical spread.

3. Culture/Consumer

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