Download BUS306-90 Red Bull Case Study

BUS 306-02
Professor Davis
November 10, 2013
Red Bull Case Study
1. List all the ways that Red Bull’s promotional efforts are unique from those of the
mainstream.
Red Bull’s promotional efforts are unique from those of the mainstream for a variety of reasons:
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It reaches smaller groups of consumers in more interactive and engaging ways
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It forms deep relationships with customers through emotional experiences
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It uses a progressive endorsement and sponsorship strategies
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It aims to constantly evolve and develop the brand
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It engages with consumers using new and exciting channels of communication
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It enhances the customer’s brand experience
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It leaves lasting impressions
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Creates positive feelings and conviction by nurturing its target’s talents
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It embraces innovation
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It utilizes digital and social media to drive consumer engagement and loyalty
2. Which promotional mix elements does Red Bull use? What grade would you give Red
Bull on integrating these elements into a core marketing communications campaign?
Today, Red Bull’s promotion mix consists a blend of advertising, public relations, and directmarketing tools that it uses to communicate customer value and build customer relationships
(Kotler & Armstrong, 2012, p. 406). Red Bull provides Grade A efforts on integrating these
elements into a core marketing communications campaign.
Red Bull utilizes the powerful tool of advertising. Through advertising, the company provides a
nonpersonal presentation and promotion of its goods or services by an identified sponsor (Kotler
& Armstrong, 2012, p. 407). Red Bull has taken advantage of multimedia production, as it
provides network spans of TV, print, mobile, digital, and music. This allows Red Bull to promote
its lifestyle brand at the center of companies, brands, and artists (Kotler & Armstrong, 2012, p.
429).
Red Bull also utilizes public relations to build good relations with its publics by obtaining
favorable publicity and building a strong corporate image (Kotler & Armstrong, 2012, p. 407).
Public relations activities have enabled Red Bull to influence their target audience. Today, Red
Bull sponsors and supports more than 500 athletes. Besides sponsoring and hosting many
sporting events, Red Bull even expanded its endorsements and events to include artists, teams,
and events in music, dance, film, and video games (Kotler & Armstrong, 2012, p. 429). Through
support and sponsorship, Red Bull encourages these individuals and teams to join the Red Bull
family and aspires them achieve their dreams.
Lastly, Red Bull utilizes direct marketing to create direct connections with its carefully targeted
individual consumers to obtain an immediate response and to cultivate lasting customer
relationships (Kotler & Armstrong, 2012, p. 407). Through mobile marketing, direct response
TV, and digital and social media, Red Bull’s marketing directs to a targeted group of prospects
and customers, rather than to a mass audience, in order to drive consumer engagement and
loyalty.
3. Will Red Bull eventually need to embrace more traditional media marketing techniques
in order to keep growing? Why or why not?
Ultimately, the goal of both traditional and modern media marketing techniques is to
communicate the brand message and enhance the customer’s brand experience (Kotler &
Armstrong, 2012, p. 409). Red Bull has acknowledged the changing major factors in marketing
and has taken appropriate and successful measures to direct its modern marketing efforts. The
company reaches smaller groups of consumers in more interactive and engaging ways, as it
embraces innovation and utilizes digital and social media to drive consumer engagement and
loyalty. However, as the marketing communications environment is in constant flux, Red Bull
should commit its message to customers through all available platforms, whether it is traditional
or new, controlled or not controlled.
4. Describe Red Bull’s target audience. Are Red Bull’s promotional techniques consistent
with that audience?
Red Bull’s target audiences are teens and young adults (Kotler & Armstrong, 2012, p. 428).
Typically, this audience includes individuals that are involved in extreme sports, music, art
entertainment, or other recreational endeavors. Red Bull’s promotional techniques have been
consistent with its target audience. The company has launched marketing campaigns that not only
connect with its audience, but also made the Red Bull brand as a part of their lifestyle. As Red
Bull built relationships with consumers, the company began hosting and sponsoring individuals,
professionals, teams, and events as well (Kotler & Armstrong, 2012, p. 428). For example,
during the past few years, Red Bull has hosted several campaigns, which featured professional
athletes performing daring stunts, including wing suit flying, bike and car tricks, and even space
jumping (Kotler & Armstrong, 2012, p. 430).
5. At some point, will Red Bull have to branch out beyond its target market? Will it need to
alter its promotional strategy in order to do so?
At some point, Red Bull will have to branch out beyond its young male target market. As stated,
Red Bull did not only target customers extreme sport enthusiasts; it extended its strategy for
endorsements and events to the world of music and entertainment (Kotler & Armstrong, 2012, p.
429). To cast an even wider net, Red Bull may include its marketing efforts towards students and
working individuals, as well. Red Bull not only serves as an energy drink, it is a utility drink that
may give one energy from physical weariness. Red Bull products may be ideal for students that
are up late studying or for working individuals that are up late covering their night shifts.
Therefore, Red Bull may need to slightly alter its promotional strategy by setting the target
market as a behavioral segmentation. This will identify and establish individual’s relationship
with the product and the use and benefit sought from the product as well. In addition, Red Bull
may begin creating and organizing events that provide a platform for students and workers. This
may further promote the brand values and begin the AIDA process with the participants and
audiences for these events.
References
Kotler, P., & Armstrong, G. (2012). Principles of marketing. (15th ed.). Pgs. 404-430.
Upper Saddle River, NJ: Pearson Education, Inc.