Promotion Impact On Red Bull

Introduction

This report aims to review the marketing mix theory topic of Promotion and how it relates to Redbull. For the purpose of this essay Promotion is defined as a marketing tool that helps disseminate information, encourage the purchase and affects the purchase decision process (Išoraitė, 2016).This essay refers on the use of secondary information from a variety of academic and non-academic sources.

Short Literature Review on Promotion

This case study will use Promotion as a theoretical tool of Marketing mix theory among seven Ps. Kotler’s marketing communication mix tools; advertising, direct marketing, sales promotion, public relations and publicity, and personal selling are useful and relevant to the following case study of Red Bull.

Case Study Discussion on how Promotion impacts on Redbull.

The fundamental factor to be success of every business organisation is the marketing. Marketing or promotion is the main channel or bridge between the organisations and the customers. The company can apply various marketing strategies to promote its business and its only ultimate goal is to increase its sales and satisfaction of the customers. This paper aims to study the Redbull as a brand through marketing mix theory. The most important strategy of marketing in our modern era is marketing mix which developed through time from one element to multi elements. It is a conceptual framework not just a scientific theory that clarifies the main decision making managers' efforts to configure the offerings to the needs of suit consumers. It can be defined as the most important marketing terms. It is the operational part of marketing, it is also named the 4Ps; Product, Place, Product, and Promotion (Raewf & Thabit, 2015)

Red Bull was first created energy drink in 1987 in Thailand and later upgraded and marketed by Austrian entrepreneur in Europe. Red Bull as a successful and pioneering brand of the energy drink sector has developed a coherent, dominant and persistent idea embedded in all its communication; ‘Red Bull gives you wings’ (Kumar at al., 2005). Red Bull has been seen as fastest growing market of energy drink. It has given high emphasis on improving its marketing efforts. Marketing strategies of has been upgrading according to time and the changing business environment and requirements of the market as well as the customers. Red

Bull has been a synonymous with energy drink today. It is not only because of the quality of drink but also its marketing strategies.

In its marketing practices, the company should give importance to the different elements of marketing mix. First, product refers to goods and services offered by the organisation for sale. The company’s main focus is to produce the product in such a way that it can be positioned as a unique and different among other existing products in the market. Red Bull gives its importance in producing the high energy products and it remains on the first choice of the customers. Similarly, Price is the amount charged for a product or service. In this mix, the main focus is to keep price of the products affordable for the customers in comparison to other competitors. In case of Red Bull, it has used premium pricing strategy and makes its products affordable for the global customers. In all the international markets, the company sets its prices on equal level in order to attain high degree of competitive position in the global beverage industry (Kelvin 2008). Likewise, Place is another significant factors that influences consumers to buy the products. Red Bull has made a distribution of its products on international level. The company has developed network of local subsidiaries to make the distribution of its products worldwide. Lastly, Promotion is the most important tool of marketing mix as it goes through the process of informing, persuading and influencing a consumer to make choice of the product to be bought. It is important to find out what customers want and develop products or services to satisfy those wants. Promotion is done through means of personal and individual selling, advertising, publicity and sales promotion.

Among these four marketing Ps this essay will use promotion as a tool to study Red Bull and its marketing strategies used by the business. Red Bull has given highest emphasis among all Ps on promotion of its brand. Kotler (1994) saw the Promotion as a marketing mix consisting of five major tools; advertising, direct marketing, sales, promotion, public relation and publicity and personal selling. For the promotional purpose, Red Bull organises several kinds of activities in its marketing process to promote its products on the global level. Red Bull organises different marketing campaigns for the purpose of product promotion. The company also does event marketing and sport marketing to do promotion of the sales of its products among the young age customers (Futterman 2010). The Company uses unconventional marketing strategies when Red Bull was out, energy drinks did not exist and the traditional way of advertising was too expensive. The unique and direct way of promoting the product has been used by the Red Bull. For instance, they simply went straight to their target audiences of the age of people between eighteen and thirty-five at colleges, parties, libraries, coffee shops, bars and others places. They offered the free sample to their target customers directs to their hand. This marketing strategy is far more effective than any other advertising tools. Red Bull always tried to reach its target market by focusing the active and unique promotional strategies like; Publishing awesome content, colossal publicity stunts and sponsoring or creating events. For instance, Red Bull sent a man up 128,000 fit above the earth in a small ship and helium balloon and had him free fall out of this. This strategy attracted the focus of audiences and make them try Red Bull once to know what it is. Red Bull has organised several sport events and sponsoring team as its main target audience sports and young man. More importantly, Red Bull created content around what their audiences love, for instance, the company’s slogan ‘Red Bull gives you wings’ created awareness as well as motivates young people to carry on. The slogan means to say that Red Bull gives you extra push in whatever you want to peruse in your life.

Conclusion

Given the above research findings on promotion and the Case Study of Red Bull, it can be seen that all Ps are significant for any company to promote its products in the market. However, Promotional strategies can make a big difference on the sales, market value, consumption, consumer satisfaction of any products. It is found that Red Bull has given great emphasis on promoting its brand through sports and events than pricing or place. In conclusion, the perfect combination of seven Ps; product, price, place, people, physical evidence, process, promotion is required for the success of the company and products.

Reference list

1. Kotler, P. (1994). Marketing Management, Prentice-Hall. Eaglewood Cliffs, NJ.
2. Kumar, N., Tavassoli, N. and Coughlan, S.L. (2005). Red Bull: the Anti-Brand Brand. London: London Business School.
3. Margarita Išoraitė, (2016). Marketing Mix Theoretical Aspects, International Journal of Research – Granthaalayah, 4(6), 25-37.
4. Thabit, T. & Raewf, M. (2015). The Evaluation of Marketing Mix Elements: A Case Study, International Journal of Social Sciences & Educational Studies, 4, 100-109. doi:10.23918/ijsses.v4i4p100
5. Vignali, Claudio (2001). McDonald’s: Think global, act local- The Marketing Mix, British Food Journal, 103, 97-111. doi:10.1108/00070700110383154