personal final essay global marketing red bull in america market

PERSONAL ESSAY REQUIREMENTS - Choose an internation company and analyze it global marketing strategy in a specific market choose only one specific market.. The content should include: 1

UEH UNIVERISTY

COLLEGE OF BUSINESS SCHOOL OF INTERNATIONAL BUSINESS — MARKETING

UEH

UNIVERSITY PERSONAL FINAL ESSAY

GLOBAL MARKETING RED BULL IN AMERICA MARKET

Wednesday, October 10th 2023, HCMC

UEH UNIVERSITY COLLEGE OF BUSINESS SCHOOL OF INTERNATIONAL BUSINESS — MARKETING

UEH

UNIVERSITY

PERSONAL FINAL ESSAY Course: Global Marketing Case study: Red Bull Company in America Market

Lecturer: Associate Prof Ph.D Dang Van Thac Course Code: 23C1MAR50307502

Student Name: Huynh Kieu Anh Huy Batch — Class: K47 — IBC02

Student ID: 31211024362

Wednesday, October 10th 2023, HCMC

I PERSONAL ESSAY REQUIREMENTS - Choose an internation company and analyze it global marketing strategy in a specific market (choose only one specific market) The content should include:

(1) Briefly introduce the company; (2) Analyze the marketing enviornment of this specific market of this company; (3) Analyze the STP, 4Ps of this company in this specific market;

(4) Analyze the lesson from the failure or success of this company’s global marketing strategy in this specific market;

(5) Propose your evaluation and suggestions for this company’s global marketing strategy in the future;

- Each student must submit a WORD version, a PDF version and an evidence of plagiarism check (Company name Market Student Name Student ID)

(1) Title page (you can use the format of personal essay from other cources); (2) Outline page (should have an outline page);

(3) Contents of the essay; (4) Reference list; (5) Font: Times New Roman 13, line spacing 1.5; (6) Essay length: no limitation

Too long to read on your phone? Save to read later on your

II TABLEOI COMPUtEr

I PERSONAL ESSAY REQUIREMEN' [J Save to a Studylist

IL TABLE OF CONTENTS L2 21121122211 11111122121 1011011120111 1011 n1 He 4 HI MAIN CONTENT c1 1212112112121 T111 0111112112111 21112111 re 5 1 Red Bulls company proffiÏ€ 2 2c 211212212 22212 222g HH 5 2 The marketing environment of energy drink 1n America market 7 P2 nh 7 2.2 Porter’s nh ioi (iiäăẳăä3 9 3 Analysis of Red Bull’s global markting strategies in American market ll B.L STP Amalysis o 0.cccccccccccccccceccecescesecesscescsseceseceesesesceessesssessesssesssesseeies II KP 0i ha 4343444 14 4 Lessons learned from the success of Red Bull’s global marketing strategy in American market - - 2E 122111155111 11551 11152511 1112511 1112511111111 1915511111151 1215111 1115k 17

6 Suggestions for Red Bull’s global marketing strategy in the future 24 IIN:90151.5)1 051111177 27

Il MAIN CONTENT

1 Red Bull’s company profile With its iconic slogan "Red Bull gives you wings” Red Bull GmbH (which means LLC) has established itself as one of the most iconic energy drink companies in the world Under the leadership of its founder and current CEO, Dietrich Mateschitz, the company maintains the highest market share of energy drink companies across the globe (Top Energy Drink Companies in the U.S., 2022) Mateschitz founded Red Bull in 1984, launching the iconic energy drink in Austria, where its headquarters are located to this day

So ==,

Figure 0.1 Top 10 world’s most valuable restaurant brands According to figures published on its website, in 2022, 11.582 billion cans of Red Bull were sold worldwide, which means an increase of 18.1% compared to 2021 (9.8 billion cans), generating 10.2 billion U.S dollars At the end of 2022, Red Bull employed 15,779 people in 175 countries (end of 2021: 13,610 in 172 countries) In 2022, Red Bull had an estimated brand value of 16.96 billion euros, up from roughly 16 billion the year prior The energy drink manufacturer remained Austria’s most valuable brand by a significant margin

Red Bull energy drinks are appreciated worldwide by top athletes, busy professionals, college students, and travelers To satisfy such a wide range of customers, the company offers a variety of flavors and editions of its energy drinks In addition to their original Red Bull Energy Drink, the company has added a sugar-free and a zero edition Most recently, it released new flavors, including peach, yellow, blue, coconut, green, orange, pear, and red

The company's marketing strategy speaks to Red Bull's success and serves as its competitive advantage, setting it apart from competitors, which include Monster, Rockstar, and Bang Energy The company generates awareness through proprietary extreme sports events, including Red Bull Cliff Diving World Series, Red Bull Air Race, Red Bull Crashed Ice, stand-out stunts such as the Stratos space diving project, and many other sponsored events listed on their website

The company has also found success in other marketing strategies, such as advertisements in the form of cartoons Red Bull's unique storytelling approach includes producing cartoons featuring the world-famous slogan "Red Bull gives you wiiings” in campaigns that showcase the company's personality in a fun way Another famous strategy has been filling cities with their blue and silver cars with huge size cans on top Not only are these cars easily recognizable but they are also associated with free drinks, which are handed to the public by their representatives Such strategy represents both an effective and

personal way to advertise its products, placing Red Bull's energy drinks as not only as products but as a fun experience

2 The marketing environment of energy drink in America market 2.1 PESTEL analysis

2.1.1 Political Factors Regulation: The industry is closely regulated by the U.S Food and Drug Administration (FDA) This includes stringent labeling requirements, safety standards, and restrictions on caffeine content Energy drink manufacturers must adhere to these guidelines, ensuring product safety and transparency

Public Health Initiatives: Rising concerns over health issues related to high caffeine and sugar content have prompted increased scrutiny and potential regulatory changes Efforts to address these concerns may impact marketing, labeling, and product formulation within the industry

2.1.2 Economic Factors Economic Growth: The robust U.S GDP, which reached a staggering $22.675 trillion in 202 1, provides a solid consumer base for energy drink manufacturers, supporting continued industry growth

Consumer Spending: The industry is sensitive to economic fluctuations During economic downturns, consumers may reduce discretionary spending on non-essential items like energy drinks, making the industry vulnerable to economic changes

Price Sensitivity: Price fluctuations due to taxation or rising production costs can significantly impact consumer purchasing decisions, potentially affecting market dynamics

2.1.3 Soclal Factors Health and Wellness Trends: The industry is experiencing a shift as consumers increasingly prioritize health and wellness This has led to a growing demand for healthier, low-sugar, and low-caffeine alternatives, prompting industry players to diversify their product offerings

Lifestyle Choices: The fast-paced, on-the-go lifestyle of Americans has contributed to the industry's success Energy drinks, marketed as quick energy boosters, align well with these lifestyle choices

Demographic Shifts: Changing demographics, including the aging population and increasing diversity, influence consumer preferences and target markets Manufacturers need to adapt their products and marketing strategies to cater to a broad and evolving audience

2.1.4 Technological Factor Innovation: Continuous innovation is a cornerstone of product development and marketing within the industry Companies must stay ahead of trends and consumer demands to remain competitive

Digital Marketing: The industry heavily relies on digital platforms for advertising and brand engagement Effective digital marketing strategies are essential for reaching and engaging with consumers

2.1.5 Environmental Factor Sustainability: Energy drink companies are increasingly adopting sustainable practices in their operations, including the use of recyclable materials in packaging and energy-efficient production methods

Climate Change: Climate-related changes may impact the supply chain, affecting the availability and cost of key ingredients, such as sugar, and potentially increasing energy consumption in production Energy drink companies are adjusting to these challenges to maintain a sustainable and responsible image

2.1.6 Legal Factors Advertising and Labeling Regulations: Strict regulations govern marketing claims, and companies must avoid targeting minors and making false health claims Compliance with these regulations is vital

Product Liability: Legal challenges related to health issues, product safety, and consumption by vulnerable populations are a constant concern for the industry Companies must maintain the highest standards of safety and quality

Intellectual Property: Protecting brands and trademarks is essential for preventing imitation and counterfeiting, safeguarding the reputation and uniqueness of products 2.2 Porter’s 5 Forces

The energy drink industry in the American market 1s a dynamic and highly competitive sector that has witnessed remarkable growth over the years To gain a deeper understanding of the market forces at play, we employ Porter's Five Forces framework, providing a detailed and data-driven analysis of the industry's competitive landscape

2.2.1 Competitors in the industry - HIGH The energy drink industry is marked by intense competitive rivalry Major players like Red Bull, Monster, and Rockstar aggressively pursue market share through marketing innovation, product diversification, and brand extensions These companies invest heavily in advertising, including high-profile sponsorships of events and sports Red Bull, for instance, is well-known for its involvement in extreme sports and entertainment

sponsorships The outcome is frequent product launches, price wars, and extensive advertising campaigns Market research and competitive analysis become indispensable tools for industry leaders to navigate this fierce competition

2.2.2 The potential of new entrants into the industry - LOW TO MODERATE As of 2021, Red Bull, a market leader, held a substantial 43% share of the energy drink market in the U.S The dominance of established brands like Red Bull, Monster, and Rockstar creates significant entry barriers New entrants face challenges that include developing a brand, navigating strict FDA regulations, and securing distribution To emphasize the enormity of this hurdle, consider that the energy drink industry has seen substantial mergers and acquisitions, making it increasingly difficult for newcomers to carve out a space in the market

2.2.3 Power of suppliers - MODERATE Energy drink manufacturers rely on a variety of suppliers for ingredients such as caffeine, taurine, and flavorings Although there is some diversity in the supplier base, certain suppliers may wield influence over specific components For instance, fluctuations in the price of commodities like sugar can impact production costs The industry's power balance with suppliers is characterized by an ongoing negotiation process, making it essential for manufacturers to stay informed and adapt sourcing strategies based on industry reports and market research

2.2.4 Power of customers — HIGH Buyers, encompassing retailers and consumers, hold significant bargaining power within the energy drink industry The vast array of brands and products available allows consumers to easily switch based on factors such as price, taste, and health concerns Similarly, retailers decide which brands occupy coveted shelf space As a result, energy drink companies often engage in promotional pricing and marketing strategies to maintain consumer loyalty and secure that all-important shelf space

2.2.5 The threats of substitute products - MODERATE The industry faces competition not only from rival energy drink brands but also from substitute products such as coffee, tea, sports drinks, and functional beverages The level of threat from these substitutes hinges on changing consumer preferences With the rising emphasis on health and wellness, a growing demand for healthier beverage alternatives poses a moderate threat to traditional energy drinks Insights from market research can help companies gauge these shifts in consumer preferences and make informed decisions

3 Analysis of Red Bull’s global markting strategies in American market 3.1 STP Analysis

Red Bull, the iconic energy drink, has managed to etch its brand deep into the fabric of American culture Through precise market segmentation, targeted marketing, and strategic positioning, it has secured a top-tier spot in the fiercely competitive energy drink industry In this article, we delve into the Segmentation, Targeting, and Positioning (STP) strategies that have fueled Red Bull's global marketing success in the American market 3.1.1 Segmenting strategy — The Precise art of Market Division

3.1.1.1 Demographic Segmentation Age Matters: Red Bull's primary demographic target ranges from 18 to 34 years old Data shows that approximately 40% of energy drink consumers in the U.S fall within this age group The brand understands that younger adults often lead more active lives, requiring a quick and reliable energy boost

Active Lifestyles: Red Bull’s marketing efforts are centered on individuals leading dynamic lives College students, professionals, athletes, and those engaged in physically

demanding activities are key segments This demographic thrives on fast-paced routines and needs the energy to match

3.1.1.2 Psychographic Segmentation Adventure Seekers: Red Bull appeals to those seeking adventure and excitement, targeting consumers with a daring and adventurous spirit The brand is often linked with extreme sports events and daring stunts Data suggests that consumers who are drawn to such adventurous activities are more inclined to consume energy drinks

3.1.1.3 Behavioral Segmentation Occasion-Based: Red Bull caters to consumers based on behavior, primarily on occasions where they need an energy boost Late-night studying, gaming marathons, intense workouts, or staying alert during long drives are moments when consumers turn to energy drinks Red Bull positions itself as the go-to solution for instant energy replenishment

3.1.1.4 Geographic Segmentation: Urban and Suburban Focus: Red Bull’s presence in the United States is marked by a strong hold in urban and suburban areas The brand is prominently featured in convenience stores, gas stations, and college campuses, capitalizing on its popularity with young adults who dominate these locales

3.1.2 Targeting strategy — Reaching the Bulls-Eye Primary Target Market: The primary target audience for Red Bull in the American market is young adults aged 18 to 34 This demographic represents a substantial portion of energy drink consumers, as supported by data Red Bull designs its marketing strategies to cater to the preferences and lifestyles of this group, positioning itself as the perfect energy booster for their dynamic lives

Secondary Target Market: In addition to young adults, Red Bull also has its sights set on athletes, gamers, and professionals These individuals require a quick and dependable energy source to enhance their performance in both physical and mental activities

3.1.3 Positioning strategy — The Power of Brand Image 3.1.3.1 Energy and Vitality:

Red Bull positions itself as a premium energy drink that offers instant energy and heightened mental alertness The unique combination of ingredients in Red Bull is aimed at enhancing physical and mental performance, making it the top choice for consumers in need of a rapid energy infusion

3.1.3.2 Adventure and Lifestyle: Red Bull aligns itself with adventure sports, extreme events, and an active lifestyle The brand sponsors and promotes events such as the Red Bull Air Race, X Games, and music festivals, positioning itself as the choice for those who seek excitement, adventure, and thrilling experiences

3.1.3.3 Quality and Innovation: Red Bull emphasizes the high quality of its ingredients and the innovative nature of its marketing strategies The brand positions itself as a trendsetter in the energy drink industry, using cutting-edge digital marketing and content creation to resonate with its target audience

3.1.3.4 Cultural Relevance: Red Bull focuses on staying culturally relevant by creating content and campaigns that resonate with the interests and passions of its target audience This includes Red Bull's

active involvement in e-sports, music, and extreme sports culture, ensuring the brand remains a part of the conversations and experiences of its consumers

3.1.3.5 Global Brand with Local Appeal: Red Bull combines its global brand recognition with localized marketing efforts The brand tailors campaigns to specific regions in the United States, making consumers feel connected to both the global Red Bull brand and their local culture This localization strategy creates a sense of community and cultural affinity with the brand

3.2 4Ps Analysis A 4Ps analysis, also known as the Marketing Mix, is a framework used to analyze and develop a marketing strategy for a product or brand The 4Ps represent Product, Price, Place, and Promotion In the case of Red Bull in the American market, here's a detailed analysis of each element:

3.2.1 Product 3.2.1.1 Product description

Red Bullis an energy drink that comes in an 8.4-ounce thin can with an eye-catching blue and silver design Caffeine, taurine, B-group vitamins, sugar, glucose, and Alpine water are all included in the drink These substances combine to boost mental and physical performance by increasing energy, attention, and stamina

3.2.1.2 Product porfolio Three of Red Bull's products are core products that are sold in all relevant markets, regardless of culture or target group, included: