Redbull Case Analysis

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The International UNO
Summer School 2012

Red Bull: Case Analysis
Daniel Mader Andreas Mair Jennie Walker
Ellie Walker Macon Blount

Marketing Principles
Jeffrey R. Foreman, PhD
MKT 3501.1

Table of Contents
Company Overview 3
Corporate, Business, and Marketing Strategy 5
Market Orientation 6
Marketing Macro Environment 7
Consumer Behavior and Psychology 8
Porter’s Five Forces 12
Pricing Strategies 14
Integrated Marketing Communications 17
Social Media Press Release 19
Future Problems for Red Bull 20

Company Overview
I. Mission Statement and Slogan
A. Mission Statement * No official mission statement could be obtained, since Red Bull is not a
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* The shift from focusing on the underground youth scene to extreme sports sponsorship is probably the most drastic change in marketing strategy Red Bull has executed. * Red Bull is today priced as a premium energy drink (see Pricing Strategies). * The company often organizes free trial distribution to attract new customers. This seems rational especially considering the reluctance a potential consumer might feel when pondering the purchase of the expensive drink for the first time.

Market Orientation I. Target Market * Young urban males ages 16 to 29 * Risk takers * Young consumers and athletes II. Positioning * Alcoholic drink mixer * Extreme Sports * Sky diving * Formula 1 sponsor * Spends 30 to 40% of revenues on hard core marketing * Buzz marketing * Guerilla marketing * Mixed marketing

Macro Environment I. Political * Bans from EU countries * No regulation on labeling of such drinks * Age limits should be set on purchasing * Health risks associated with Red Bull II. Economic * Rising disposable incomes encourage premium purchases * Major soft drink manufacturers have been attracted to the sports and energy drink market partly by the premium prices that currently exist for these market products. III. Social *
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