Sales management

 

Sales management involves how well you penetrate into the market and increase the sales of your product. Red Bull excels in managing its sales. In 2013 it sold more than 5.3 BILLION cans.

A total of 5.387 billion cans of Red Bull were sold worldwide in 2013, representing an increase of 3.1% against an already very successful 2012. Company turnover exceeded the five billion euro mark for the first time, increasing from EUR 4.930 billion to EUR 5.040 billion. In terms of sales, revenues, productivity and operating profit, the figures were up once again and represent the best in the company's history so far. Such positive figures can be attributed to outstanding sales in the Red Bull markets in India (+55%), Japan (+32%), Turkey (+18%), Scandinavia (+16%), Russia (+13%) and Brazil (+12%), efficient cost management and ongoing brand investment.

 



holistic and sustainable marketing

HOLISTIC ANG SUSTAINABLE MARKETING

 



Red Bull is very aware of its environmental responsibility and is constantly striving for improvement.

Red Bull is going to great lengths to ensure its carbon footprint stays as small as possible across the entire lifecycle of the can.

The Red Bull Cans are light in weight and 100% recyclable:

 

Red Bull has made a conscious decision to use aluminium cans. Today Red Bull cans weigh 60% less than a decade ago, which saves precious raw material. Once they are collected they are fully recyclable over and over again without any loss in quality.

All cans are 100% recyclable: once they've been collected and reached the recycling facilities, not the tiniest bit of aluminium is lost. They can be melted down and reused an infinite number of times with absolutely no loss in quality. Using reclaimed aluminium comprises a 95% saving in energy compared to using new aluminium. 

Today, Red Bull cans weigh 60% less than only a decade ago. The reduction of the can's weight also makes a difference: the less aluminium goes into cans in the first place, the smaller the carbon footprint. 

Aluminium cans are oxygen-proof and neutral in taste, so the drink stays in fresh, top quality for a long time. This means it tastes as good at the source as at its destination. 

The beverage can is the world's most recycled drink packaging. Of course, this is only possible if the cans are collected and (re-)introduced into the recycling loop. If a can is left carelessly littering the landscape, naturally it can't fulfill its recycling potential. Unfortunately, littering is still a problem in some regions. Making sure that the can ends up in a waste or recycling bin helps keep the landscapes pristine, increases recycling rates and reduces energy consumption as well as the drain on natural resources.

 

Red Bull Saves resources through short distances :More than 7,000,000km of truck travel are saved each year thanks to Wall-to-Wall Production.

Apart from using 80% of our energy from renewable sources, Red Bull implemented what's called 'Wall-to-Wall' production at the production site. This means their cans are manufactured and filled on the same site - helping them save many miles of transport. Since they don't have to transport empty cans to the fill up plant, this reduces the footprint significantly.

Wall-to-Wall production saves more than 5,313 tons of CO₂ emissions each year.

 

 

Approximately two billion cans annually need no further transport until they're ready to leave the facilities for their final destination. This saves the equivalent emissions of more than 10,000 truck journeys of 700 kilometres each or more than 7 million kilometres per year. 

More than 5,313 tons of CO2 emissions are saved each year, thanks to Wall-to-Wall production. 

 

Red Bull's manufacturing base in central Europe has a lot of advantages:

Red Bull guarantees that the same premium product quality is enjoyed around the world, thanks to its state-of-the-art production process and the use of high quality ingredients, such as locally-sourced alpine water. 

New efficiency-enhancing technologies - which, in turn, help preserve natural resources - can be implemented immediately. 

The energy used for production comes from the region; around 80% is sourced from renewable energies - and Red Bull's working to improve this figure however possible. 

 

Six Can Coolers use only as much energy as a single 100 watt light bulb:

Red Bull Energy Drink tastes best when ice cold. That's why they developed  environmentally friendly Red Bull ECO-Coolers which use up to 45% less energy than conventional refrigerators.

Red Bull has installed 313,000 ECO Coolers instead of conventional coolers already. 

Thanks to their natural refrigerant, ECO-Coolers are considerably more environmentally friendly than conventional refrigerators and use up to 45% less energy. The use of ECO-Coolers and refrigerants is an effective way to avoid greenhouse gases, that's why Red Bull has made a commitment to distributing ECO-Coolers in the future, whenever local infrastructure allows.

As of 2012, there were 313,000 ECO-Coolers in use worldwide, representing 35% of Red Bull’s entire fleet of cooling equipment.

Analysing business markets

ANALYSING BUSINESS MARKETS

compared to customer markets, business markets generally have fewer and larger buyers, a closer customer supplier relation and more geographically concentrated buyers. Demand in the business market is derived from demand in the customer market and fluctuates with business cycle. Business marketers need to be aware of the role of the professional purchasers and their influencers, the need for multiple sales calls and the importance of direct purchasing.

 

Like the buying process for the customer, B2B also has its own buying decision making process.

It consists of eight stages as follows :

1. problem recognition
2. general need description
3. product specification
4. supplier search
5. proposal solicitation
6. supplier selection
7. order routine specification
8. performance review

 

Red Bull caters to both customer and business market.

 

Business to business (B2B) : Red bull supplies to food chains, Restaurants, hotels, clubs, bars, and juice shops. It is used mostly as a mixer, so one can always find it in the clubs and bars.

 

 

 





analysing consumer markets

ANALYSING BUSINESS MARKETS

 

 

Consumer behaviour is influenced by three factors: cultural(culture, sub-culture, and social class), social(reference groups, family, and social roles and statuses) and personal (age, stage in the life cycle, occupation, economic circumstances, lifecycle, occupation, economic circumstances, lifestyle, personality, and self-concept).  Research into these factors can provide clues to reach and serve consumers more effectively.

 

To understand how consumers actually make buying decisions, marketers must identify who makes and has input into buying decision, people can be initiators, influencers, dealers, buyers, or users. Different marketing campaign might targeted to each type of person.

 

 Consumer Purchase Decision Model for Red Bull Energy Drink

A. Problem Recognition

 Red Bull is mainly marketed to people who feel the need for an extra energy boost in their lives, e.g. athletes, but also stressed-out business people, students, etc.

B. Information Search

Since Red Bull is a relatively low involvement product, value is accessed primarily through an internal search.

C. Alternative Evaluation

 Evaluative criteria for Red Bull Energy Drink include:

o   Red Bull has the image of being a premium product , and will thus best satisfy the consumer’s need for additional energy when compared to the competition.

o   Recent controversy over the possible negative side effects of Red Bull may also impact the evaluation process .

o   The traits associated with the brand personality of Red Bull – speed, power, and recklessness - may also factor favourably into the evaluation process, given that they are similar to the traits of the potential consumer.

 

 

 



FELIX BAUMGARTNER

"Sometimes you have to go up really high to see how small you are."( Red Bull Stratos)

PROMOTIONS:-

 

Red bull has always been on top when it comes to promotions. It promotes heavily through sport events and competitions. Red Bull's integrated marketing communications mix has been so successful that the company has created an entirely new energy drink category and has become multimillion dollar brand among competition from beverage kings like Coca-Cola and Pepsi. In less than 20 year, Red Bull has become the energy drink market leader by skilfully connecting with the global youth.

 

Since its beginning Red Bull has used traditional advertising and no print ads, billboards, banner ads, or super bowl spots. while the company runs the minimal television commercials, the animated spots and tagline " Red Bull gives you wiings" are meant to amuse its young audience.

 

Red Bull marketing efforts strive to build its brand image of authenticity, originality and community in several ways. First, Red Bull targets opinion leaders by sampling its products, a lot. Free Red Bull energy drinks are available at sports competitions, in limos awards shows and exclusive after parties Free samples are passed out to college campuses and city streets, given to those who like they need a lift.

 

Red Bull aligns itself with wide variety of extreme sports, athletes, teams, events, and artists. From motor sports to mountain biking, snowboarding to surfing, dancing to extreme sailing, there is no limit to the craziness of red bull event or sponsorship. A few have become notorious originality and extreme sporting to the limit including annual Fulgtag . At Fulgtag contestants build homemade flying machine that must weigh less than 450 pounds, including pilot. Another annual event the red bull air race tests the limits of sanity.

Red Bull web site provides consumers with the information about how to find red bull events, videos, of  and interview with red bull sponsored athletes and clips of amazing feats that will be tested next.

 

 

 

Some of the major events that red bull sponsors are :-

 

 

 RED BULL THRE3STYLE WORLD FINLALS, 2014

 

 

 

 

 

 RED BULL DISTRICT RIDE

 

 

 

 

 

RED BULL KING OF THE ROCK

 

 

 

 

 

RED AIR RACE : FORT WORTH

 

 

 

 

 

UCI MTB WORLD CHAMPIONSHIPS 2014

 

 

 

 

BRITISH GRAND PRIX, 2014

 

 

 

 

 

 

 

 

 

 

 

 These are just a sand grain in the whole island of promotions done through various sport events .

This association with sport and athlete creates an image of exhilaration, energy and adrenal rush whenever they see a red bull can.

 

 

TV Commercials also makes an important part of the promotional mix:-

 

 

red bull print ads:

 

 

 

BUYING DECISION PROCESS

What a customer buys ultimately depends on the various factors. As there are number of substitutes available, deciding which brand to choose becomes a question that every marketer aims to answer.

Kotler gives five stages through which a customer reaches his final decision.

 

NEED RECOGNITION:

The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli. marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers. they can develop marketing strategies that spark consumer interest.

 

INFORMATION SEARCH :

After the need is recognised, customer starts to search information about the product which will have the potential to satisfy his/her need and has the potential of giving maximum value. He/She will start looking for reading material, talking to friends, searching online and visiting stores to learn about the products.

 

EVALUATION OF ALTERNATIVES :

Once he gathers all information about the product, he will list down the alternatives and evaluate them on the basis of maximum value proposition.

 

PURCHASE DECISION :

After evaluating the alternatives, he will select the one with the potential to satisfy all he needs better that the others. 

 

POST PURCHASE :

Buying process does not get over on purchasing the product. Marketers are always interested to know whether the product is giving value to the customer or not. If the customer is dissatisfied, then the chances of him never buying the same product again is very high, and this exactly what brands want to avoid. On the other hand if the customer likes the product, he will become the evangelist and tell others about the same.

 

RED BULL buying decision :

1. A need for energising body and surviving sleep will give rise to urge for a product satisfying these needs. The customer know why he wants an energy drink, but he still does not know which brand to buy.
2. He will begin his search by asking around and through various online sites.
3. He will list down names of the brand which promise he potential to provide value. Red Bull, Monster, Burn, Tzinga, Glucose-D, Chilly Willy, Cloud-9, Tang etc. from these he will start to narrow down the one alternative.
4. After thorough evaluation, he will decide to buy Red Bull because of the high perceived value attached with it.
5. If Red Bull satisfies him completely, he will buy it again and will also tell others about it.

 



BRANDING

 

The intense promotion of Red Bull has not only established the brand but also driven the growth of the market of energy drinks as a whole. Within its target group the brand awareness is significant. 
The brand equity has developed during a number of years and is very hard to copy. They have managed to build an authentic, credible and qualitative brand which consumers have been willing to pay a premium for. Their advertisement through extreme sport events and similar opportunities has through its unexpected and outstanding approach established the Red Bull brand awareness.  

 

A pioneer in energy drinks three decades ago, Red Bull is now the world sales leader.

Red Bull’s unique approach to brand building:

• Red Bull’s brand building is largely based on associating its brand with an amazingly wide range of people, teams and events.

• Red Bull believes in owning teams and events rather than being one of several sponsors.

• Because of this ownership model, they can and have turned this buzz machine into a profit centre.

• Their on-brand activities reflect two very different personalities that live side by side.