Red Bull Marketing Questions - Essay Example

Red Bull Marketing Questions Analysis of productive sales performance reveals that a sales team success is a significant facet in its tenure, in the customer groups. Red Bull’s sales force will hold duty to the different customer groups on the basis of sales potential and geography. Defining the territory of Red Bull’s sales force will balance its sales potential and work load. In Australia, the sales team will align the territories according to the potentiality of sales. This will be identified through the peoples ability to buy Red Bull products in the different regions across Australia. High income customers have high potential of consumption than low income customers. Therefore, the sales territories will be divided into high sales prospect and low sales prospects. According to the Australian Bureau of Statistics (2012), Australia has a high number of employed people. The employment rate increased by 0.1 percent and this will result to increase in consumer’s consumption. This provides a basis on identifying the sales team territory. The sales territory will be divided into high sales potential and low sales potential territories. The sales team will be allocated roles to seek and increase sales among the income earning people and the unemployment. The income generating individuals constitute the high sales prospects territory while the unemployment make up the low sales territory. Additionally, the sales territory will be determined geographically. The sales team will be allocated responsibilities in different geographical regions. Different sales representatives will be assigned Victoria, New South Wales, Queensland, South Australia, Tasmania, Western Australia, Australian Capital Territory and the Northern territory (Australian Bureau of Statistics, 2012),. In addition, most people living in urban areas have a higher income than the people living in the rural areas. The sales team will be allocated responsibilities in different rural and urban areas. The size of each territory will be determined to decide the number of sales staff to be allocated. This will ensure that the sales representatives are not given too much or too little to do. This can result to over or under servicing of consumers. The sales personnel will be allocated territories appropriately to avoid over servicing of consumers. This can cost the Red Bull since over taxed sales representatives take on suboptimality in their activities. They will take a remarkably small number of leads; spend less time with existing consumers and spot few potential consumers. The consumers will in turn take their business to substitute providers. On the other hand, appropriate allocation will aid in ensuring that consumers are not over serviced. This will result to increased costs and prices which will indirectly reduce sales. After defining the sales force territory, Red Bull will neither frequently redefine its territory nor change the sales force obligations every other month. This has the effect of damaging the company revenue and weakening prospect and customer relationship. Arguably, none of the consumers want a gyrating door of new sales representatives. This may create an environment of volatility that drags sales which competitors may exploit. When launching a new product or bringing a product to the market, managers frequently commences with an inkling of the profits they desire and enquire the sales levels required to attain it. While setting the sales target, Red Bull Company will also set its target output volume and target revenue. Red Bull sales team targets a total revenue growth of 4 percent for this year. Last year the company achieved total revenue of 57 million US dollars. The sales team targets to increase the sales revenue by 2.28 million US dollars. This is because the team has undergone trainings and coaching which will assist the sales representatives set competitive strategies. Each of the sales representatives will have a set goal that he or she will have to attain. In addition, the sales team has a monthly target of 4 percent per month. An observation of the previous sales trends reveals that the company has had an augmenting trend of sales. In addition, the increased employment rate indicated by Australian Bereau of Statistics (2012) implies that consumer consumption will increase. By increasing sales, the company will attain increased profits. The sales team targets a 5 percent increase in profits. Red Bull Company has experienced high cost, which reduced its profits despite high revenues recorded. The costs incurred by a company determine its profits. The sales costs are the manufacturing and distribution process-related costs of the company. These costs determine the overall costs of producing the products. The sales team will attain an increased profit by cutting down on variable expenses such as travelling, entertainment and lodging. In addition, the sales team plans to cover a large territory. Increased sales and profits go hand in hand with increased market share and product recognition. The energy drink industry is crowded with competitors who strive to attain a high market share. The sales team targets to increase Red Bull’s market share and brand recognition from the current 13 percent to 18 percent. A market share will determine the performance of the company compared to its competitors. The sales team plans to increase Red Bull’s market share through changing the product attributes to suit the preferences of the consumers such as improving quality, adding more distribution channels to make the products available to consumers, and through heightening advertising by increasing product promotion budgets. Good customer relation is an imperative facet that triggers increased market share. This creates a substantial rapport with the consumers resulting to increased sales. Through acquiring a high market share, Red Bull will attain a high product and brand recognition. The sales team plans to increase Red Bulls market share by first knowing its market and the consumers. This will assist the team identify the needs, problems, desires of the consumers. Since there are many competitor products in the market, Red Bull’s sales team may differentiate its products. Additional desirable and unique attributes make the consumers desire the products. Additionally, the sales team plans to inform and create awareness of the desirable attributes of products through extensive advertising. In order to attain high market share and reputation, the sales team plans to segment the Australian Market. Segmentation of markets assists organizations comprehend its consumer’s behavior and attitudes of consumers as well as their desires. References Australian Bureau of Statistics. 2012, September. National Regional Profile 2006-2010. Australian Bureau of Statistics. Retrieved October 2012, from http://www.ausstats.abs.gov.au/ausstats/nrpmaps.nsf/NEW+GmapPages/national+regional+profile?opendocument Read More

 

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