RedBullExampleAssessment4
RedBullExampleAssessment4
RedBullExampleAssessment4
REDBULL EXAMPLE
Assessment 2
Incorporating theoretical concepts
• Chapter 7-14
• Peer-reviewed theoretical sources
• Industry sources
• Product/service examples
• How many references/sources = as many as you need to
complete the task properly
Task
• The final stage of the marketing audit requires you to evaluate how
well or poorly the marketing mix of the organisation is performing for
your chosen organisation.
NB: As before focus on just one product or service (same as A2) and
you must use the same company.
Price – based on cost? Value? Competition? What will you recommended strategy be ? (p.346-354)
Promotion – IMC communication process, message appeals, awareness, demand, trial, marketing mix elements, promotion and ethical considerations .
Advertising, social media, digital technologies, product placement, public relations, sponsorship, personal selling, endorsements, sales, and much more
Distribution –channel(s) selection logistic considerations, location, vertical or horizontal channel integration
Processes – Customer orientation, timing, degree of automation/personalisation, payment systems, ‘educating costumers’ and finally Partnerships – formal and informal
Partnership - due to lack of resources, complimentary skills or assets.
Product
• A product item or a specific version of a product for this assessment is the Original Red
Bull energy drink.
• Products Category
• There are two major categories, consumer or business products (Pride et al., 2015). RedBull falls
into the consumer good category. RedBull falls under the Fast Moving Consumer Good or FMCG.
This convenience product, defined as a relatively inexpensive and frequently purchased item
(Pride et al., 2015) are readily available and would be considered a low risk purchase.
• Product Life cycle
• RedBull would be considered to be in the Growth/Maturity stage of the product life cycle. The
growth stage represents where sales rise and profitiability is maintained (Pride et al., 2015), while
the maturity stage is illustrated by a slower rise in sales. Typically at this stage sales have started
to reach their peak volume (Pride et al, 2015). RedBull sales predictions for Australia see modest
growth of 5-10% (Adams, 2016). This potentially impacts profits, as it is theorised that profits
diminish as it becomes harder to maintain sales (Pride et al., 2015).
PLC
Product
• Adoption
• In relation to the production adoption process, Australian consumers are at
the trial and adoption stage. The trial stage is where consumers are testing
and trying the product (Pride et al., 2015), this is typical with new users and
adoption is where the RedBull would be purchased again (Pride et al., 2015).
• To coincide with the adoption stage the organisation can see that the
consumer adoption category of late majority beginning to take effect. What
this means is that those purchasing RedBull now are either repeat consumers
or new adopters that feel it is necessary (Pride et al., 2015).
Product
• Product Quality
• Quality refers to the characteristics of a product that allow it to perform as expected and satisfy the
customer (Pride et al, 2015). Panadol for example is regarded to possess high quality as in many
people it gets rid of headaches quickly. RedBull in a similar fashion is designed to boost energy..
• Level of Quality is a perception derived from those who engage with the brand (Greyer, 2012). RedBull
has a mixed level of quality, some question its inclusion of taurine others believe it to be perfectly
safe. Nutritionist, such as, Donougher (2016) have questioned the amount people drink but
acknowledge limited amounts in moderation would not impact health long term.
• Consistency of quality, or the degree a product has the same level of quality (Pride et al, 2015) is also
high for RedBull. While there have been questions raised about their ingredients (this is in relation to -
level of quality) there has been little questioning the effectiveness of the product.
• Product Support Services
• In order to add value through support services (Pride et al, 2015). RedBull has offered a website to
answer common FAQs. This is not optimal, rather, a very basic level of support in 2017. See
http://energydrink-au.redbull.com/red-bull-energy-drink-facts
Product
• In relation to Packaging, the traditional can is designed to protect the product (Pride et al.,
2015) and stop tampering. The long lean look, gives the perception of volume and size (Gardner,
2012). A can is also a low cost option for production and reduce impact of the environment
(Gardner, 2012).
• The logo stands out and has become iconic to the brand (Adams, 2016). It is eye catching and
distinction from the competition (Taylor, 2013). This assist with brand recognition and product
differentiation when placed next to competition.
• Ethically, questions have been cast about the ingredients and health impacts of the drink.
RedBull has countered this by deploying a website
http://energydrink-au.redbull.com/red-bull-energy-drink-facts detailing facts about the product.
• Legally they also provide a food label at the back of the product, this is law if you are to sell a
product in Australia.
• Environmental: Its cans are 100% recyclable
Attempted CSR in relation to
Product
Product – Analysis & evaluation
• Determining if people are purchasing a product or your brand can be difficult at
times. People are consuming not just products but brands (Pride et al., 2015), this
may be for complex social reasons or due to contextual factors, such as,
workplace preferences or limitation in choice (Pride et al., 2015)
• The product is sort after and possesses strong consumer preference. There are
only a small amount of products in the product line (7 in fact, see Appendix 3).
This makes it easy to manage but potentially opens up for competition to gain
ground (e.g. sizes).
• Ethically it is a little weak, especially with the social push toward healthier eating
and drinking (particularly around stimulants to children)
• There is little scope for growth with current strategies, particularly as it moves
towards the mature stage
• Product support is also lacking with a basic webpage for FAQs
What Appendix 3 would look like
http://energydrink.redbull.com/red-bull-energy-drink
Price
• Pricing Strategy
• RedBull places high emphasis on price or the value exchange for products in a transaction (Pride et al.,
2015). However, it does not engage in price competition, using other factors aside from price to
differentiate itself from the competition.
• That being said, associated retailers and wholesalers will often provide specials, quality discounts, bundle
pricing and sales to push products out the door.
• Price setting
• In setting prices, RedBull has the objective of profit, that is to identify a price level that allows the
company to make money (Pride et al., 2015). This profit is often use for promotional items discussed in
the next section. Prices for RedBull are set not just based on cost but also based on value. Defined as
value-based pricing where prices are based on the level of benefit derived from the product (Pride et al.,
2015).
• Branding: Consumers will pay a higher price for a strong brand (Pride et al, 2015, p. 240). As
RedBull would classify as a strong brand, adopting this brand pricing strategy makes strategic
and financial sense.
The pricing strategy adopted by RedBull varies based
on the context
For example, for this report, contemporary issues may include, but are
not limited to, Corporate Social Responsibility, social media interactions,
advances in technology, ethical concerns, environmental concerns and
globalisation to name a few.
So…in order to answer this question
• Provide the recommendation(s) on the 8 p’s
• Justify why it will work. You can base this on
• Your own research (A1, A2, A3 –Q1)
• Theory/concept
• Industry examples
• Industry experts
It can be one or a combination of the these justifications. I use all four in this
example.
• Try and provide a cohesive idea and discuss in such a way.
Contemporary issues identified –
Australian Context
• Corporate Social Responsibility: Considering they do little in this space there is
opportunity for strategy exploration
• Social media interactions: Well they are fantastic in this space but are not fully
current with strategy in platforms like Snapchat
• Advances in technology: VR and AR are huge opportunities for RedBull
• Ethical concerns: A major issue that has potential to be leveraged for strategic
purposes
• Environmental concerns: Potentially but in reality not really an issue
• Social Issues: Sugar/caffine/Taurine and general stimulant concerns by nutritionists
• Political Issues: Pressure to put in a sugar tax
Recommendations - Product: Share
a Can
• The obvious recommendation to suggest would be a new flavour (product
extension) or the removal or Taurine to appease concerns over the potential for
illness.
• The concern I have for product extension is that it will potentially cannibalise
existing flavours and not really add to overall sales.
• Removing Taurine would almost look like an admission of guilt so I will leave
this active ingredient alone.
• However, size range is something we can play with
• Currently they have three basic sizes of Red Bull cans, the 250ml, which is the regular
can. Then you have the 355ml can, and finally, you have the 473ml can.
• What if we went with the 669ml share can option
Product: Share a RedBull
Add another hole. Facing
opposite directions for easy
opening
Transition colour to
slightly lighter and Add term
vibrant. Also share “Share”
colour evenly down
the middle. What two
colours would Keep logo the
work??? same
• Storytelling
• Much like their other messages. The Festival/Share a RedBull idea would revolve around storytelling, energetic
behaviour and imagery depicting people using the product is a specific way. Again it will maintain brand
cohesion and has been proven to work with the demographic and media choses (Page et al., 2015).
• This will set up consumer behaviour patters. Reason being people like to model behaviour after those they
admire (Ekman, 2007). This will come in the form of opening the can and sharing and placing the actors in
specific contexts that appeal to viewers.
• Instances where extreme sharing is experienced will also be exemplified.
Recommendations - Promotion -
Advertising
• Would not impact traditional forms currently being used, as they work
for the brand and I do not want to impact standing products simply
for a trial product.
• Considering the audience and place I would focus on digital
advertising –using native advertising techniques, particularly on
Snapchat, Facebook and Whatsapp.
• Recent Sensei (2016) study shows that for the specific demographic
Snapchat and to a lesser degree Facebook are the platform to focus
on.
Recommendations - Public Relations
- lobby
• One of the side recommendations I would make would be to connect
with Pepsi, V and CC Amatil (Coke) and lobby politicians, particularly
those in the National Party in North Queensland and NSW to avoid a
Sugar tax.
• I would donate to their elections and party funds to secure time with
key ministers. Upstreaming has a long history of influencing political
influence (Greyer, 2012). Case in point, alcohol and gambling lobbyist
in Australia.
Recommendations - Promotion –
Public Relations/Publicity
• In relation to the new campaign. I would use festival media connections
to inform the festival crowd of an upcoming unveiling by RedBull. This
create cohesion and consistency of message (Page et al., 2015).
• As event sponsor I would have this form of publicity as part of my contract with
the festival.
• I would get my team sponsored musicians and athletes to ‘accidently’ drop the
idea of a new product for festival season on their personal sites
• Also I would make their staff who are broadcasting out of the festival be seen
drinking the product with a fan/festival goer
• I would get space on the festival app in the month leading up to each festival to
create awareness of RedBull ‘Share’.
Recommendations - Promotion –
Digital and Social Media
• Precede launch at festival with branded content in social
• Use official sites (web, social, apps)
• Online publications
• Team personal sites – only those related to the event
• Festival, all displaying music related to festival. This is simply to create an
association of music + RedBull.
• Would not push the idea of a new product but would use term ‘share’ a lot –
to subliminally cement the idea of sharing and RedBull.
Recommendations - App
• The App would let each person organise their festival experience.
• Have Maps to where RedBull is sold
• Allow you to stream music from artist going to the festival
• Purchase RedBull to ‘pick up later’ – with special offer to encourage trial
• Introduce the new product and how it works – show target audience
team members using it and enjoying it.
• In app photos and shares to connect with Instagram, Facebook and
SnapChat with RedBull filter.
• Allow people to geo-locate to find someone to ‘share with’!!! Yes tinder
for RedBull.
Recommendations - Digital:
Augmented Reality
• The app would also allow people to find a RedBull station using AR,
this approach integrate two realities into one and enhance user
experience (Simmons, 2017).
• All these efforts impact positively (justification)
• Immersive
• Engaging
• Interactive
Recommendations - Digital: Virtual
Reality
• VR headset will be available and simulation machines at the Festival
so people can ‘share’ what it is like to be part of the RedBull team.
• Surfing
• Racing car
• Wingsuiting
• This would allow a user experience, and help associate sharing with
RedBull and fun etc. This has worked very well for Samsung/surfing
before (experimented on in Hawaii).
Recommendations - Promotion –
Social Media
• In accordance with recommendation in Heinze et al, (2017) and Pride
et al., (2015) I would push festival experience on specific RedBull pages
• Inform of VR to explore other RedBull associated things and promote AR
• Create hashtag #shareabull so people can tag who they shared a RedBull with
– these photos have a chance of making on RedBull’s sites e.g. Insta
• Encourage sharing of content
• Get team member to cross post using product
• Provide simulation online of VR
• Go Live (Fb, Insta, Snapchat) during the event and
• Live Stream using APP and social platforms for those who cannot make the
event feel like they are part of the event
Recommendations - Promotion –
Social Media
• Grewel et al., (2015, p. 50) also suggest to use influencers to get the
online spacing talking about the product/festival/experience – who
would you pick?
• Music bloggers
• Product bloggers
• Agitators
• Personal brand
Recommendations - People: Main
Five
• Staff: A mix of youthful yet relatable staff, varying demographics but all must be
physically appealing (will not official say that when interviewing). Understand the
festival culture and customer culture.
• Customer orientated culture + Interpersonal Behaviour: Have an outgoing nature
(flirty) and bubbly personality (playful and sexual attractive). Team orientated
mentality and happy to pose for photo’s.
• Appearance: Well groomed, varying types of good looking, dressed in branded
clothing and funky shoes, eyewear and other accessories
• Training: Short training session on how to open cans, present the product and push
the product.
• Attitude and Emotional labour: Positive feeling towards the brand, festivals and
trying new things. The RedBull is a team and we must all work together to achieve
success.
Recommendations - Physical
Evidence
• To maintain brand image established by RedBull and explored in
Appendix 3 (A.2), the servicescape would consist of a tent branded,
cars, staff, to give an atmosphere of fun, sharing, the brand and
ultimately mimic the vibe of the festival.
• It would have product displays, fridges, signs, billboards, decorations
(highlight teams) with music pumping, lights flashing and spaces to sit
and soak in the festival atmosphere and enhance mood. Page 519 is
gold.
• Explore Virtual Reality using headset and RedBull sponsored sports.
Recommendations - Processes
• What more can we offer to our consumers and what would they really appreciate?
(Pride et al., 2015). In the case of “share a RedBull” five major consideration would
need to occur
1. Customers would need to go through customer orientation. How to ask for the brand and
how to use it. This would be taken care on through
I. Promotion – would feature ads or social media messages from team to demonstrate how to use it
II. In store demonstrations by service staff and promotional staff
2. Redbull would need to consider interactions with customers (discussed in Physical
Evidence).
3. Timing (discussed in Place).
4. Flow and progress of customers would be managed using queues but music playing to
reduce the feel of waiting (saying that people expect to wait at festival)
5. Curated convenience: There is a possible to use an app, where people can purchase the
drink without cash and redeem a voucher (digital) when collecting merchandise. This
would reinforce the brand as cutting edge etc
Recommendations - Partnership
• RedBull would have to explore three types of partnerships
1. A VR supplier Apple or Samsung – two options
1. Everything included
2. RedBull branded headsets that people could place smartphones into and play
themselves
2. Festival
1. To secure space and potential naming rights
3. Straws