Globalization and Strategy of Red Bull Essay

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Strategy and Globalization of Red Bull

Red Bull is a global leader in an energy drink and operating in more than 167 countries. The company has been able to dominate the energy drink markets because it focuses on the emerging markets. Over the years, Red Bull has taken the advantages of rapid economic growth of emerging markets in Asia and Latin America to promote its brands and reap the superior market shares. The sporting events have been the major strategy that the company has employed to enjoy market advantages globally. For example, Red Bull uses unconventional marketing techniques that include guerilla marketing, stunt events, Street Luge Racing, Mountainbike competition, and Motocross Freestyle to promote its brand globally.

Introduction

Red Bull is an Austria multinational energy drink producing company operating in 167 countries. In 2014, the Energy Bull sold over 5.6 billion cans and employs more than 10,410 employees compared to 9,694 in 2013. Between 2013 and 2014, Red Bull increased the sales by 4.2% with the turnover from $5.5 billion to $5.6 billion. The internationalization strategy contributes to the market success of Red Bull in Turkey, India, South Africa, Japan, and Russia along with ongoing brand investment and efficient cost management. Typically, Red Bull has pioneered its brand globally, which has successfully made Red Bull brand to become synonymous to an energy drink. An on-going market success of Red Bull over the years has influenced other multinational soft drink companies such as Coca-Cola and Pepsi-Cola to launch their brand of energy drinks. Despite a rising competition from other companies, Red Bull remains ambitious and bullish in its corporate brand because the competitors are unable to take away market shares from Red Bull. Apart from energy drink business, Red Bull also manages and owns other businesses that include TV broadcasting, youth academies, online clothing, and construction business.

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The objective of this report is to explore the globalization strategy of Red Bull.

Main Body

The financial success of Red Bull over the years has made the company to face intense competition from other national and international energy producing drink companies. Typically, Monster Energy represents a biggest and dynamic threat to Red Bull because Monster's drink contains more natural ingredients that many customers consider desirable in taste. However, Red Bull has been able to maintain its leading position because of its unconventional global marketing strategies and guerilla marketing technique. The guerilla marketing is the technique of promoting the brand using events and stunts techniques related to sport (X-games), music, adventure, and parties. For example, the company has implemented different promotional events to enhance its market strategy and brand advantages in different countries. In Nepal, the company uses guerrilla marketing strategy to promote its brand. Moreover, Red Bull organized footballing competition globally and was one of the major sponsors of World Cup in South Africa. In the United States, Red Bull promotes two football team with the goal to promote its brands among soccer loving people across the United States.

The internationalization is another strategy that Red Bull has employed to achieve comparative market advantages. (McDonald, 2007).Typically, Red Bull has developed a broad geographic present in the emerging market to achieve a long-term growth. Fan (2008) defines an emerging market as a country that is rapid experiencing transition in the economic and political development. Thus, Red Bull takes advantages of a rapid economic growth in the emerging markets to launch its product in Asia, Latin American and Africa. Kotler & Keller (2009) point out that an emerging market represents a great opportunity for Red Bull. Between 1987….....

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