Bachelor of Business for Red Bull - MyAssignmenthelp.com

Question: Discuss about theBachelor of Business for Red Bull. Answer: Introduction This report will deal with the performance of Red Bull in the Australian market. It has been seen that in the recent years many people are inclined towards having the energy drinks that help them in replenishing their power and vitality, which helps them in keeping up with the pace of life. There are a large number of energy drinks that are available in the Australian market, which helps the customers to choose from a variety of products. The main aim of the report will be to identify the marketing plan of Red Bull in the Australian market with respect to the target market, positioning and the segmentation applied by the company. The product is sold in most of the supermarkets and Coles have been chosen for this report as it is one of the leaders in the supermarket business in Australia. The company implements many strategies in attracting the potential customers in the stores so that the product can be sold. This helps the company in increasing its profits to a large extent Coles Australia The company strives to deliver the best and quality standards products to its customers on a continuous manner. This helps the company to main its services with the customers in an efficient manner and also add value to its brand image. The long-term commitment that the company has maintained with its customers has helped them in working towards a better future, which in turn has helped the company in maintaining better relationships with the farmers as well and supporting the local community with respect to the food industry. The year 2014 saw the company celebrate its hundred years in the country by giving the people of the country happy and healthy life at very affordable prices. The company was established in the year 1914 by GJ Coles with the first store opening in Victoria. The founder had a vision that he needs to have proper staffs who would be happy in working within the store, which will help him in earning the respect from them. During the Great Depression that hit in 1930, the company decided to donate a part of their profit to the various hospitals and relief funds as a part of charity. This was the first social responsibility that the company undertook after it was established. After the end of the world wars it was seen that the company employed married women as staffs, which implied that their families were devoid of the time that they used to give. This resulted in huge purchasing of ready-made products and the sale of electrical appliances also increased. The company in 1948 launched its first range of cosmetics and included many stars for its marketing campaign. By the beginning of 2000, the company saw a rise in its online services and by 2003 the company became number one in the online food retailer industry. After being taken over by Wesfarmers in 2007, the company was led by a new management team that helped in delivering better services to its customers. Choice of Branded Product The reason for choosing this product is because Red Bull has helped people to rejuvenate their body and mind as it is one of the major products in the international beverage industry. The main factor for its success in the market is because of the huge customer base that the product has in the market. the product was first introduced by an Austrian who partnered with a person of Thailand, which helped in bringing the local drink in an international market. In the current market scenario, the company sells around a billion cans per year and has control over more than 70 percent of the market with respect to energy drinks. The ingredients of the products are manufactured synthetically in pharma companies, which ensures in the safety and the product being of high quality. The product helps in improving the performance of an individual as it helps in greater concentration and better reflexes. It also helps in stimulating the metabolic rates within the individual so that they can stay act ive for the period of time. Another major reason for the success of the product is the promotional activities that the company undertakes. It does not follow the conventional style of advertising and creates innovative ads for the print and television media, which helps in grabbing the attention of the customer. It uses the buzz marketing strategy with the help of extreme sports such as mountain biking and snowboarding to showcase its product to the customers. These ads portray a faster way of life, which helps in understanding the value that the product creates after it has been consumed by the customers. Segmentation Segmentation includes the division of the population that is targeted by the company to sell their products. The company uses a mono-segment type of segmentation, which appeals to the tastes and preferences and the needs of the individual customers present in the market. the segmentation is done by the company by dividing the market in to different variables such as gender, age, occupation and income. The target audience for the company are the youths and the bachelors as they would love this product. The company targets to sell their products to the age group between sixteen and thirty years as the younger generation would love to consume the energy drinks, which will increase their performance in their daily activities. For the middle and the elderly aged customers, the product has been made with zero calories so that they can remain healthy and continue their activities on a daily basis. The brand targets the male gender group as they are always looking to increase their metabolis m and are adventurous in nature. However, the females also constitute a part of their market segmentation. The product is directed for the students and the working class who have a certain income that they can spend on energy drinks. The psychographic segmentation is done on the basis of lifestyle, which the product manages to attract the business class people and the students. The customers are enthusiastic with respect to the attitude in consuming the product and the product fares in a medium usage rate in the supermarket. In the geographical segmentation area, the company limits itself to the urban and the semi-urban areas of Australia where the youth culture is very active and consists of a major customer base for the company. However, there is an availability of the product in the rural areas of the country as well though at a lower rate. Target Market The company targets the age group that is between sixteen to thirty years. The customers live in the cities and consists majorly of students, professionals and athletes. They consume this product as it helps them in increasing their concentration capacity. The product also targets the customers who are regulars in bars, night clubs and pubs where the product Red Bull is very popular as it can be mixed with alcohol and served to the customers as cocktails. The product also attracts people who are adventurous in nature and likes to live their lives on the edge. It is seen that most of the participants who participate in various adventurous sports need the adrenaline pump and consume the product, which helps them in getting motivated in performing the task. The company have used the clubber strategy, which means that the customers are from different backgrounds and have different means of earning because of their level of education in the Australian market. these people have some level of anxiety and physical exertion, which requires a boost physically. This is where the product has tried to capitalized on by supplying them as it will help them in relieving their stress levels. The product has adopted many marketing strategies by sponsoring the sporting events and giving the athletes a taste of the product. The company hosts many sporting events in major cities of Australia, which helps the company in spreading awareness and the recognition of brand among the customers. The company has a vehicle after the product, which is sent to the colleges so that the students get a sample of the product, which helps in promoting the brand. The supermarket offers the young customers a sample of the product so that they can benefit from it, which will help in increasing the profitability of the s tore by selling large number of the Red Bull products. Positioning/Price In order to develop in any market, positioning of the product plays an important role as it influences the perception of the customer with the brand and the organization with respect to energy drinks. The company has positioned themselves as a premium product in the Australian market, which has helped the brand gain a competitive advantage. Comparing with the competitors such as Monster and Rockstar, this product is priced at a higher rate so that it can dominate the market as it does not allow any substitutes to take its place. In terms of the competitors, the product occupies around 30 percent of the market share in Australia. The major competitor in the market is Frucor Beverages Limited, which has an intense level of rivalry with Red Bull. It also sponsors live musical events in Australia, which has seen a 15 percent increase in the sales of V Energy Drink by the company. Red Bull on the other hand has sponsored events such as Cliff Diving World Series Qualifier, which was held in Australia. This has helped in raising awareness of the product within the athletes as they have endorsed the brand, which will in turn increase the sale of the product as many fans may purchase it from the Coles store. Pricing plays an important factor in the marketing mix and Red Bull follows a premium price strategy as it helps the company to be affordable not only in the local Australian market but also in other international markets as well. The strategy of high pricing is used as it helps the company to provide various functions to the customers. It is seen that the product is set at a higher degree of price as it helps them in maintaining a competitive advantage in the local beverage industry. The supermarket has a provision of allowing the customers to purchase the product near the check-out counters as well. This strategy is used by the store because it influences the decision-making capacity of the customers before they leave the store. If the customers have a specific amount to be spent, then they will purchase the product before leaving the store. This helps the store to maintain its profits as the strategy of impulse positioning influences the buyers to purchase the product. Conclusion Thus, it can be concluded that the marketing strategy that is used by the product and the store is proving to be successful in the Australian market. it focuses on the target market, which includes the athletes and the students and those who are working professionals. It helps the customers to get active and increase their concentration capacity after consuming the product. The strategies that are applied in the country are generic in nature as these strategies for the product are used in every country where the product is available. The sale of the product has increased due to the packaging of the product as well as attractive packages helps in grabbing the attention of the consumers. The use of promotional activities such as intense advertising campaigns has helped the brand to be recognized all throughout the country. Sponsoring highly adventurous sporting events has helped the product to be associated with the athletes and their fans for a long time. The mentality of the customers before purchasing the product is that when they want to something adventurous they will require Red Bull as it will help them in improving their performance. This has helped the company in attaining great success throughout the country and being available in all the leading supermarket stores.