Marketing Plan for Red Bull Company Essay Example | Topics and Well Written Essays - 2500 words

Marketing Plan for Red Bull Company - Essay Example Cumulatively, the company sold over 35 billion cans worldwide to date. Red Bull is the brand name used by the Red Bull Company from Austriai. This energy drink contains several ingredients, which make it a super energy drink. These include glucose, glucoronolactone, caffeine, sucrose, taurine, and B-group vitamins (Red Bull GmbH, n.d.). This drink trades in two major brands i.e. R-B Energy Drink and R-B Sugar Free. The later is similar to the former, only that it lacks sugars. Aspartame and acesulfame K sweeteners replace this glucose and sucrose. Red Bull enjoys worldwide market coverage as well as global competition from established soft drinks players. Emerging markets for soft drinks and health concerns of consumers are some of the issues affecting the market growth and expansion of the drink. Obesity is also becoming a major threat in the soft drinks market due to the sugars they contain. This is even more challenging to this industry owing to the fact that most of its target ma rket ranges among children and the youth who are most vulnerable to obesity. However, Red Bull managed to maneuver though all these challenges to sit comfortably at the top of preferred energy drinks around the globeii. Current Marketing Situation For any firm that seeks to succeed, it is important to define a company product's position, target and segmentation. In terms of its position, Red Bull is an energy drink that increases concentration, reaction speed, and performance as well as improves people's emotional state. Consumers can find all these benefits when drinking Red Bull. During tiring days, long school days, and stressful work, people want to get a product that helps them to relax their bodies and minds. Moreover, Red Bull provides not only its regular style of beverage but also a sugar-free version for people who are concerned about their health. Red Bull's target market is active males and females between ages of 17 to 35. For this reason, Red Bull targets people in col lege, recent college graduates, and workers who also study. These types of people have active and busy lifestyles that make it hard for them to endure long days and nights. Especially for the workers who study, it is challenging to balance sports, education, clubs and jobs. Red Bull is the solution for people at the turning point in their lives because energy is important component that keeps individuals active to achieve their goals Objectives and Issues Marketing Strategy It is important for the company to have segmentation in order to market its product and have costumers. Red Bull segments its product by demographic, geographic and psychographic components. The main demographic of Red Bull is young males and females between 17 and 35 years old. The geographic component focuses on people who study at places where life is busy and rushed. Bars and clubs near or on these places are also a geographic segment, in which Red Bull concentrates. The psychographic segment includes young s tudents and professionals who have long days filled with study and work, so they get tired and stressed. They want to relax and have fun at night, enjoy the rest of the day and remain active by having energy drinkiii Distribution of Red Bull energy drink is through most gas stations, convenience stores and grocery stores in the U.S. Some of the stores include Safeway, Quick Trip, Conoco, SuperSaver, and 7-Eleven. The product is also available in supercenter stores such as

Report discussing Spotify's strategy Essay Example | Topics and Well Written Essays - 2000 words

Report discussing Spotify's strategy - Essay Example Spotify should use current technology to be stable and compete with the other companies. Introduction Spotify is a Swedish online streaming company offering online music service to the user that they can stream up to 15 million tracks on demand by using unique technology. It still lags behind after Pandora as a market leader. Spotify also introduced lightweight software, which allows an instant listening to albums and tracks without buffering delay. Consumers subscribe monthly premium to access the service. Spotify paid free subscriptions to everyone in order to expand the rate of service (Gammons, 2012). The company offered free accounts and opened free registration in United Kingdom. Spotify closed opened registration when Spotify mobile service was released. Technology is a growing necessity in all types of businesses. As time goes, people learn the importance of technology one by one. This make it impossible to separate technology from the people as it is necessary in day-to-day activities. Technology in Spotify has brought tremendous growth in the company through advertising. Sporty can post their new services online to create new revenue streams and new markets. Technology is also important in decision-making process leading business managers and chief executive officers to focus on innovation in business (Marshall, 2012). Spotify has divided the digital music industry into two submarkets; digital download market consisting of Amazon and iTunes and streaming market which has many competitors. According to the study conducted in 2011, the revenue of digital music industry has grown by 8%. The growth rate of streaming market is greater than that of the download market. Streaming market generates 10% of the revenue of digital music industry (Marshall, 2012). Many companies with similar business models operate in streaming industry leading to strong competition in the market. Companies can only be differentiated from each other by; features regions of operati ons, variations in packaging and licensing of music libraries. The costs of switching from one streaming service to another are very high. This has created a limited compatibility and transfer between the streaming services. The streaming companies are trying to include network effects in their services by introducing social components. Users are granted permissions to create collaborative playlists, they can follow what other people, and friends are listening on the network (Daft, 2011). Network effect adds value to the services leading to attraction of more clients. Streaming companies has essential partners and record labels are natural which creates ready market with strong indirect network effects. Availability of content is important to attraction of customers. When there is large music in the library, the streaming service will be much popular. The streaming industry is a two-sided market where companies should create virtuous circle between customers and record labels. When the subscribers and users are more in a service, there should be more labels having their music recorded on the services. This will lead to attraction of more customers to the larger library available. On the other hand, it is expensive to obtain streaming rights to a large library for successful streaming of services. The primary tactic on how to gain market share is