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Marketing Red Bull in Pakistan.

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Introduction

Background of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting who are backed up by Pepsi and Speed who comes from the house of Shezan. Introduction of Red Bull in Pakistan Born in Thailand, developed in Austria and sold throughout the world, Red Bull is now a global and leading brand for the energy drink category with a 70% share in the world market to date. The Red Bull story started in 1982 where an Austrian by the name of Dietrich Mateschitz tried and tested the idea of an energy drink and transformed that idea in a phenomenon now known as Red Bull. ...read more.

Middle

Celebrity endorsements to increase associations New ventures: Permanent Association with entities (facebook, resorts, Go Aish, Hot Spot etc) Financially support student projects Threats Competitors (New entrants like Sting, Speed etc) Strong International Brands may launch their drinks in Pakistan As youth become working adults, consumers are lost and the process of acquiring new customers never guarantees you success. Potential campaigns against Red Bull Ingredients Increase in import duty and taxes Red Bull's assumed false association with alcohol Increase in consumer awareness of health and increasing preference of pure water Red Bull's ban in some countries Risk of holding high budget promotional events because of bleak nature of terrorism Major chunk of market prefers substitutes to Red Bull like tea and coffee for energy Internal Factor Evaluation Analysis1 The internal factor evaluation analysis comprehends that Red Bull has an average of 2.74, which is fairly high as compared to the industry average (2.5). Thus indicating that the company has a strong internal functioning and can use it to strengthen their position & help them work above optimum levels. External Factor Evaluation Analysis2 The external environment analysis shows a low average for Red Bull i.e. 1.95, as compared to the industry average (2.5). This shows that Red Bull is fairly slow in building new strategies to overcome the factors that may turn out to be major threats for the Company. It has to become more responsive towards competitor action. However the strong brand equity & well captured market share has promised a lot of opportunities for Red Bull in order to outstand against its competitors & diversify its portfolio. Competitor Analysis3 We identified Pepsi's Sting as Red Bull's only big threat as a competitor and have analyzed both of them against all relevant industry factors. Although Red Bull was first mover of energy drink product category in Pakistan and enjoys a substantial market share, it still is second best to Sting when analytically compared. ...read more.

Conclusion

For short term, they plan to invest more in improving their current distribution system. Mr. Ali Hyder admitted that their current distribution network is bleak and resulting in lack of sales. Hence, they are planning to get distribution agencies on board who can make sure that Red Bull is being made available in all parts of the city. Also, the will be improving their ware house facility as well as their own transportation by buying new carriers. This way they can ensure they are taking adequate care of its distribution themselves. Talking about the biggest issue of Red Bull in Pakistan, he said that they do realize they need to start using mass-media to promote Red Bull and not rely on BTL promotion completely. However he said that they have to stay in line with marketing strategies of Red Bull around the world. On discussion he told us that they are currently in talks with Mohammad Amir, the young sensation of Pakistan cricket for official endorsement of Red Bull. Not just that, but they also are making long term plans of churning out new communication strategies. They are planning out ways of promoting through mass-media and how advertisements can be customized to match the Pakistani consumers. His honest admission of the stiff competition is a clear indication in itself that they are concerned about their current strategies and what they will have to do in future to sustain and perhaps enhance their position in the market of energy drinks in Pakistan. At one glance, the figure below gives you a snapshoot at the results we have obtained by applying the matrices, our marketing mix learning's and strategy derivation for Red Bull in Pakistan. The Strategy -Formulation Analytical Framework 1 Table 1: Internal Factor Evaluation 2 Table 2: External Factor Evaluation 3 Table 3: Competitor Profile Matrix 4 Figure 2: Grand Strategy Matrix 5 Table 5: Space Matrix 6 Table 6: QSPM Matrix 7Figure 1: BCG Matrix ?? ?? ?? ?? Case Study Solution 1 | Page ...read more.

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