Question 1
I believe that the description of Red Bull’s distribution as “savvy” is correct. This is because Red Bull has employed a distribution strategy that is specific to its target market. It is intelligent and canny at the same time. The distribution strategy has focused on hotspots that are frequented by its target market, individuals between the ages of 16 and 29 years.
The distribution strategy has endeavored to introduce new consumers to its products every year, consumers at the age of 16. It has achieved this through rigorous distribution to outlets that are visited by its target customers.
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Part of the distribution strategy involves distribution to bars and night clubs. This has focused on the young consumer who is preoccupied with status, style and class. The bars and the night clubs are the kid of places the hold events that provide the platform for individuals to show off. In doing so, it is inevitable that the young consumers would mix Red Bull with alcohol, something the company allegedly discourages. This is a savvy or canning way of distribution.
The distribution strategy also involves the sponsoring of sports events. These sports events are considered extreme as they embody risk and danger. By sponsoring and distributing product this way, the company has managed to project an image of risk and danger onto its product by association with extreme sports. Furthermore, individuals who take part or spectate in such events are predominantly young consumers between the ages of 16 and 29.
Red Bull also distributes in colleges and universities targeting the young energetic consumer. By employing student Red Bull brand managers, the company is able to quickly get its product into the hands of its target consumer as its product carries an image appeal to the target market. By employing student brand managers who understand how their peers think, they can quickly market and distribute the product by virtue of the image that the brand carries with it.
Question 2
The integration of the distribution, selling and promotion functions are vital to the success of Red Bulls Selling Strategy. This is because all these components in themselves, each embody the brand of Red Bull.
The distribution strategy of Red Bull merchandize embodies the strategy the company has chosen to reach its target market. Only through a valid distribution channel can merchandise reach consumers. Red Bull has integrated this by selecting a distribution channel that is short and effective and one that embodies the Red Bull brand. When entering a new market, Red Bull selects a maximum of up to 5 hot spots or distribution points where Red Bull merchandise would be available. This serves to create an element of class and prestige that is associated with the Red Bull brand. This is essential in creating the platform for the rest of the functional areas of the Red Bull selling strategy. By creating a limited supply in Red Bull drinks, the company creates an increase in demand due to the limited supply of Red Bull.
Selling the Red Bull energy drink in integrated into the distribution strategy. This is because Red Bull only sells its product at a premium price. This premium pricing serves to create an image of class, style and status to be associated with the Red bull brand.
Through promotion of extreme sport events, Red Bull manages to create an image of risk and danger and reflect it on its brand. This allows for the creation of sense of mystery that is engrained in the brand giving it a considerable edge when it comes to its target market. By targeting all facets of the 16 to 29 age spectrum, it has managed to create a successful and effective selling strategy.
- Phan, M., 2008. Red Bull or Black Devil. 1st ed. s.l.:ESSEC Business School.
- Rosenbloom, B., 2013. Marketing channels: a management view. 8th ed. Cincinnati: South-Western/Cengage Learning.
- Winer, R. S. & Dhar, R., 2011. Marketing management. 4th ed. Boston: Prentice Hall.
