International Marketing Module Assignment Sample

Exploring International Marketing Strategies: Assignment Sample

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Introduction Of International Marketing Module

The Red Bull Company is taken as a case company for the report to analyze its various aspects which affect the company internally and externally

Background of Redbull Company

Red Bull was introduced around 35 years ago on 1st April, 1987, and is a privately owned company. The company's headquarter is situated in Austria. According toFarris, Gregg, Chinn, and Razuri, (2016) the company is a brand of the energy drinks of Red Bull GmbH Company which is located in Austria. In 2019, Red Bull energy drink become most popular and gain 38% market share. Excess to 100 billion energy drink cans of the company have been sold across the world since 1987. “Red Bull Gives You Wings” is a famous slogan of Red Bull Company which becomes the most memorable advertisement worldwide(as cited by Farris, Shames, Johnson, and Mitchell, 2016). In year 1976, the pharmacist name ChaleoYoovidhya introduced drink known as karting Daeng which inspire Red Bull to reinvent or formulate its energy drink.DietrichMateschitz who operated business in Thailand at that time, and after tasting the Yoovidhya karting Daeng drink, Mateschitz create partnership with the ChaleoYoovidhya. Both men together formulate new product which suit tastes of the westerners like as carbonating a product.

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And in 1984, Red Bull GmbH was founded by the two in Salzburg, Austria. The first can of a company was sold to the Red Bull in the Europe. Red Bull Company began its operations in the United States in 1996, with a steady progress ever since. US$500,000 was invested by each partner in the company and both held 49% share of a new company with a 2% share held by Yoovidhya'sson.In 1990s, the company expanded its business into Slovenia, United Kingdom, Hungary, United States, and Germany(as cited by Quincey, 2016). The product entered in the UK and Germany in 1994, and in 2000 it introduced in the Middle East. The company sponsored its 1st team in 1995 that was the Swiss Formula One and in 1999 the Flying Bulls that was a Czech aerobatics team started sponsoring the Red Bull. In 2021, the company sponsored the Hoang AnhGia Lai from V.League.

Overview of product or service of Red Bull

Red Bull mainly has 11 types of products with different tastes. According to Fuchs, Grundmann, and Fleisch, (2019, October) those products are energy drink, sugarfree drink, Red Bull zero, red edition, yellow edition, blue edition, green edition, peach edition, coconut edition, amber edition, and winter edition. The company has big sales in its first and foremost product name Red Bull energy drink. Red bull energy drinks are purchased all around the globe and the company has its many Branches in 165 countries which giving the employment opportunities to more than 13600 people in the society. In its commercial operations, Red Bull makes a special effort to ensure that all human rights are protected. This includes no forced labour and a multicultural workforce, among other factors. Red Bull cans are now 60% thinner than they were a few years previously, conserving substantial amounts of time and money. According to Vladimirovna, (2020)Red Cans are also 100 percent recyclable and need less energy to transport than plastic or glass bottles due to their form. Red Bull considered the demand of customer to make it healthy drink due to which it has launched the fruit beverages in the market. The ethical consideration in marketing of red bull is followed by the requirements and affordability of its customers. Red bull considering the health factors through launching the new fruit drinks in the market and also claimed that the beverages have no harmful chemicals. The product includes the various kinds of beverages like Red bull fruit drink and Red bull coke. The place used for marketing is the Red bull target market where the stores are available near the most of customer's area of living to purchase the product easily. The price introduced by Red bull is the return on investment for the product and decided according the quality of the beverages.When consumed, Red Bull energizes the body and mind, as well as aids in the fight against mental and physical exhaustion. In the same way, the jack of all trades can work at times feel like a drill-bit with a jar of Red Bull, he can have wings to nail any task.

The excellent composition of the Red Bull caffeinated drink conveys premium quality components which will give the customers energizing effect on mental abilities aiding in the development of focus and increasing alertness and sharpness.According to Falbe, Rojas, Grummon, and Madsen, 2015 the caffeine content of one can of Red Bull caffeinated drink (250 mL) is 80 mg. which is equivalent to one cup of coffee the same amount as in a cup of espresso. The other element which is used during the manufacturing of red bull drink is B-Group Vitamins. These are essential nutrients for maintaining normal physiological functions. Red Bull contains two types of nutrients like a fat which are solvent and can be easily dissolvable in water.Brand value of Red Bull includes "Individuals, thoughts, and culture" which are the Red Bull brand's main benefits.

Findings of the report

The report contains a deep understanding of various aspects of Red Bull Company. The situation analysis of a case company which is Red Bull is highlighted in the report. The study also includes a deep overview of a company's target customers which help the company to develop marketing strategies according to the market. Red Bull marketing strategies formulation methods and models are discussed in the report. It is also considered in the report that how the company is using a way of marketing tactics to bring larger market share. The report involves financial projection skills of the Red Bull Company. At last the study concludes about the implementation and controlling activities of a case company.

Situation analysis

As the case company is operating in around 165 countries of the world, each country has its own regional systems. In order to developa better understanding the situational analysis of the Red Bull Company is considering one country's part which is Red Bull New Zealand Ltd. The company got 20% market share of the New Zealand's energy drink market. A case company's main competitor in the country was ‘V' who detained 60% share of the energy drink market of the New Zealand. The case company focused on marketing its beverages to 15 to 30 years old generation through link with severe music and sports.

The case company provides the popular mixture of some alcoholic drinks that's why it is more influential in a night time market. Whereas, the company's competitor name ‘V' main target is on a day time market according to its energy drink type. Red Bull discovered very quickly that teens are normally very concerned about a social acceptance of any work which they are going to do. The popular work that all teens are want to do nowadays includes sports, listening music, going to partying and clubs, which they think is being socially accepted by society. After analyzing this type of teen's situation and thought towards the society, Red bull enhances its skill and prepares its slogan “Red Bull Gives You Wings” that attract teenagers.

Red Bull is a creator of ‘energy drink market' it is so called as the company first made energy beverages among its competitors which was definitely become most popular in history. At international level the company goes closure to the 70% share of its target market. However, the Red Bull New Zealand Ltd. Competes with the ‘V' that brags active ingredients containing guarana and taurine which is an influential source of a caffeine. The case company gets a lots of publicity through the media and also mainly with highlighting the health issues. The media caused controversy on the case company's drink and frequently report that the drink of a company is unhealthy and can damage a body. The parents also targeted repeatedly by the media and rumoring them that Red Bull drink is harmful for the children and teenagers. By this media controversy for Red Bull Company, there was a very negative impact on a case company along with its target market and the customers.

There is a huge threats possibility for a case company in future. As the generation Y which indicated between 15 to 30 years will grow older before long. This threats raises push the company in a high problematic situation. Along with this the company is focusing in only one product all the time with its full potential energy and time. On the other hand, a case company's competitors developing different type of drinks to attract customers. Talking about the opportunities for the case company it is extracted that Red Bull can perhaps develop another products for expansion. The company has opportunity of more exciting sports sponsorship to be formed in the future.

Target customers

The Red bull uses high quality beverage with a natural ingredients to offer customers a better concentration and focus, upgrade mental presentation during any competitions, improve metabolism and common health benefits due to low sugar levels in the drinks. Red Bull Company's target customers' age are usually defined in between 18 to 35 years. According to Nyström, 2022 the product of a case company is general targeting the younger generation. The college students and teenagers generally categorized into 13 to 21 years, and the young adults those are in 21 to 35 years age, or any working professionals, these are the demographic sectors that are targeted by the case company.

From the above mention demographic sectors of a RedBull customers includes the young adults and teenagers are the primary targeting audience of a company. As energy drinks of a company were invented to boost the energy and efficient working power for an individual that is more useful for the new generation. The effective ingredients composition that involves taurine, vitamins, caffeine, and herbal extracts are mainly used and highlighted by the company to attract large base of generation Y (13 to 30 years old persons). Mostly men between 18 to 34 years of age intakes energy drinks as they have to work continuously all day.

The craze of consuming energy drinks among youths aged between 12 to 17 years are increasing day by day and using them on the daily basis. The trends of buying and using energy drinks between 12 to 17 years old persons help the company to increase its sales and focusing on these consumers more. As energy drinks are most popular dietetic supplement amongst American young adults and teenagers the case company effectively placed its position in the United States. To effectively positioning the case company's brand in the international market, Red Bull uses different strategies to attract its targeted demographic audience.

From the starting, a case company focuses on young people by motivating them to accept the company's energy drink. By continuously targeting the young individuals in the case company's advertisements, people got attracted and start using the energy drink. The case company divided the population into different segments. The case company uses mono segment types of positioning. Based on the mono-segment type, Red Bull Company appeals to the needs and wants of a single buyer segment. The company targeting those customers who are busy in their day to day life and also overly active in their professional and personal lives. The one who are captivated by the extreme sports are also grouped as a targeting audience by the case company.

In geographic type of segmentation the company focuses on both domestic and international region along with urban and rural density. By segmenting in demographic areas, the case company focuses on single person not living at home and bachelor phase young people. The person who has employees, students, professionals' types of occupation are included in Red Bull's target audience(as cited by Vandor, and Franke, 2016). The high income group along with upper class and middle class with their explorer and reformer life style are involves in the psychographic segmentations of a case company.

Formulating marketing strategies

Developing best and suitable marketing strategies will lead a company to achieve high growth and profit. Red Bull promoting its product in relating the way of life somewhat than the simple energy drink product(as cited by Learning, 2020). After analyzing different areas which affect the marketing strategies of a case company, it is concluded that Red Bull examine seven different types of strategies to get effective bulk of marketing strategies(D?bi?ska, 2019). These marketing strategies of a case company includes STP analysis, marketing campaigns, social media marketing, SEO strategies, influencer marketing, E-commerce strategies, and content marketing strategies. These strategies are deeply discussed as follows:

  • STP analysis- STP stands for segmentation, targeting, and positioning. As already mentioned in the previous target consumers of Red Bull Company heading, the targets are highlighted and according to that targets various segments are done by a case company. The company segmentation is based on the geographic, psychographics, and demographics areas. A case company mainly focus on high income individuals and upper class but on the other hand company also addressing low income group and lower class as company's product is cost-effective drink. The company positioned itself as an affordable,trendy,superior quality,and upscale energy drink in all-over the world.
  • Marketing campaigns- The Company minimizes the way of using traditional ways of marketing platforms(Daly, Liou, and Brown, 2016). A case company uses sporting events and ownership of multiple sports team that includes music, celebrity endorsements, and stunts such as the Stratos space diving projects.
  • Social media marketing- Red Bull Company is actively performing on various platforms of social media which is highly used by youngsters in all over the world. The company presence on twitter, Facebook, LinkedIn, Instagram, etc. attracts more young people. On Facebook, the case company has 47 million pages likes. On LinkedIn, there are 887k followers of Red Bull. On Instagram, the company has 202k followers. And on twitter, company has 2M followers.
  • SEO strategies- For the case company SEO strategies are very important to develop its website which can offer more discernibility to the target and relevant audience. As the company's website has 3673610 organic keywords which reflects that digital marketing of a case company is achieving unanticipated number of insights.
  • Influencer marketing- It refers to the process of engaging, supporting, and identifying individuals who pledge conversations with the company's customers. According to Kunz, Elsässer, and Santomier, 2016 the case company collaborates with the several influencers that includes dancers, athletes, cricket players, Instagram influencers, and various sports persons who inspire company's content and bring loyal customers for Red Bull.
  • E-commerce strategies- Red Bull does not sell its products through its websites but the purchaser can buy a case company's products from third-party e-commerce websites such as Blinkit, Amazon Fresh, Zepto, etc. A case company's website only promotes its products and provide necessary information to its target audience.
  • Content marketing strategies- The case company covers various articles, and blogs to keep busy its target customers. The content articles of Red Bull contains advertisement extreme and sponsoring music festivals, concerts, and sports. A case company also focuses on publishing reels, videos, and another types of content on various channels and sites of social media marketing.

Marketing tactics

The case company uses different marketing tactics to bring the company's status at the top of the market and attract more customers(Hill, 2016). There are few points that reflect as a company's marketing tactics.

  • Memorable and inspiring slogan- “Red Bull gives you wings” is a powerful slogan of a case company which actively catches the mind of purchasers. According to Bustin, Jones, Hansenne, andQuoidbach, (2015) this slogan is created by the company in 1997 and hasn't changed yet. The customers also thinks that it is a false slogan and the company's product did not give them wings but the company's marketing style prove that its product actually have some different quality that give consumer those feelings as they have wings.
  • Sponsorship of extreme sports- To establish influential brand awareness the case company uses extreme sports sponsorship. A case company sponsored and organized a unique event known as Stratos in 2012. According to Melrose, and Bell, (2018) that event named Stratos has Felix Baumgartner of Austria who jumped from the edge of the space that was watched by millions of people from all over the world. That event was a huge boost for a case company marketing.
  • Brilliant advertising approach- A different and brilliant advertising approach attracts more customers towards the company. The unique ad which includes distinctive illustrations has always drawn an attention of target customers. According to SABATELLI, (2018) the company also uses its unique slogan into its advertisements to relate all its sayings and doings to the general public worldwide. It generally uses cartoons with a creative mind in their ads to give good impressions of the products on young as well as on professional persons.
  • Smart use of Guerrilla marketing-According to TALEBPOUR, and KhorsandiFard, (2018)Guerrilla marketing means the use of unconventional and clever methods to increase the sales and attracts more customers towards the business by making use of usually one environment. The case company focuses on certain environments while advertising its products. Environments that company covers are student's exam time as student start preparing for their examinations and Red Bull energy drink help them to stay concentrated and focused while studying and learning.
  • Strong and consistent branding- For better and easily recognizable in all over the world, the company perform outstanding work in formulating consistent and strong branding in the market(as cited by Brito, 2019). The company's branding policy is offering a simple message to its customers as they can easily boost their focus on performance after consuming the energy drink of Red Bull.
  • Word of mouth marketing- It means that the person trust their family and friends more than the conventional media. As the case company effectively positioned its products in the consumer's mind, this inspires some consumers to taste once the energy drink. According to Rambe, and Jafeta, (2017) when some people started buying the products then they also tell to their loved ones about it. The company also uses sponsorship and different influencers in their ads who are the idol one for some people in their life.
  • Focus on quality content- The Company also uses trendy things in their contents to make posts feels like it is relatable to their target audience. Contents of a case company may uses teasers, simple posting content, and memes to influence its consumers. The company's contents include inspirable social media posts through which the doers, risk takers, and people who are fascinated about adventures are affected.

Financial projection

Talking about the financial analysis of Red Bull Company, it has fine record of all financial management in the company. From 2009, the company has logged a high profit margin and even today also it is gaining high profits from its operations in all over the world. As comparing the financial losses and profits of the company it is extracted that company earned more profits after analyzing the actual financial position. Ahead of 2012, the company indicated a slight increase in the profit which is recorded as 67.5m at that time. According to Kothakonda, Kezirian, Clark, and Thompson, 2018 due to an offset by development of digital products sales the company faces 4% decreased revenues rate to 346 as there was a 22.3m print advertisements were declined.

As the basic earnings rose to 194.4p, Red Bull tax per share profit after tax and profit earnings are increased by 3 percent to 48.7 million(as cited by Waern, 2018). A case company's balance sheet remains stronger with the increase of 116.2 million in comparison with the last year. After comparing the last year it is concluded that company's gross liabilities had increased due to a lower corporate bonds. The company's yield and dividend was increased by 6.3% and 5 percent respectively over 2012(Schrøder, 2018). Red Bull Company has proper management of finances with the help of its boards, provisional of an efficient services to their customers, use of better planning of sourcing and allocating the finances lead a company to earn higher profits.

Implementation and control

Companies that sell caffeinated beverages, like Red Bull, target a certain customers that are primarily young, urban men between the ages of 16 and 29. These people frequently have a tendency or want to party all day, every day. Unexpected games and other challenging pastimes are well recognized among this specific group of buyers, suitable for the company's to be influenced through promotions in print and on television (as cited by Bremser, 2018). In the two countries of China and the UK, Red Bull participates in advertising through print and broadcast media. While Red Bull is occasionally advertised in local newspapers and stations in China, the organization has a close relationship with the Sunday Broadcast paper in the UK and distributes its own Red Notice magazine with the issue.

Red Bull makes severe use of inspection, which has been recognized as one of the best deal advancement tactics for the implementation and control of marketing. With the launch of Red Bull Cola in North America, the UK, China, and many other important commercial areas of the company, the organization began a critical analysis effort(as cited by Bytyqi, and Vardari, 2021). Other advertising strategies for Red Bull are available under the events and encounters category that is implemented through the inclusion of planning factory tours and company exhibition halls, launching road activities, etc. Red Bull can also look into optional exposure tools and techniques, such as starting discussions, classes, campaigns, and getting involved in neighborhood affairs. The key similarities in the use of promotional tools in the UK and Chinese business sectors relate to highlighting the benefits of the beverage and its ability to improve peoples' psychological and physical appearance, but there are also differences.

The organization's board intends to associate the brand with numerous "values" such as being extraordinarily vivacious, appreciating life to the fullest extent possible, and engaging in all activities with a higher level of expertise. Red Bull's marketing messages are intended to feature the aforementioned ideas and they don't contradict one another. For instance, the company controlled marketing that include supporting competitive events utilize the organization motto "Red Bull gives you wings" as a prominent promotional tool(as cited by Pontes, and Pontes, 2021). Red Bull's general showcasing system is perfectly matched with the restricted advertising strategy for the mission Harvest Time 2011. The following two statements support this assertion for the control in marketing of Red bull:

  • First off, by expanding the organization's target customer, the proposed marketing strategy will unquestionably raise Red Bull's level of revenues.
  • Second, due to the proposed plan's successful implementation, which complements the organization's lengthy points and targets, the Red Bull brand as a whole will advance.

Conclusion

From the above mentioned report it is concluded that Red Bull has strong and most popular brand in all over the world. The company uses very powerful marketing tactics which attract more customers towards its products and gave a company a good competitive advantage. It is also concluded that company has lots of opportunities as it is already operating in more than 165 countries in the world. A countable opportunities and their implementation can lead a company towards high growth and success. Like as opportunities, the company also has many threats which can pull back a case company from the market. But Red Bull has a strong dealing power against the various threats. As the company forecast threats and make planning according to it.

The financial projection of a company aid the good and bad effect of the company's financial planning based on the trends, costs and profits earning capability. An implementation and controlling implies the internal environment of a company which reflects the effective position in the market. This highlight defines the coordination of employees in the working space of Red Bull. The company uses different marketing strategies to enhance its brand name and products in the consumer market and to beat its competitors and gain competitive advantage. Target audience of a company also aligned to mainly focus and influencing them for purchasing the company's product. By this the company get large base of loyal consumers.

References

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