Business Market of Red Bull - Research Paper Example

Objective 1- Critically analyzing the changing environment within which Red Bull is operating and understanding implications for marketing management in the macro-environment appraisal. In such a context, the U.K. market has been selected for environmental appraisal analysis. Objective 2- Identifying two new target markets appropriate to Red Bull in the U.K. market and justifying the choice. Objective 3- Develop differentiated marketing mixes for each target market identified and design marketing objectives and control mechanisms for each marketing mix.

The story of Red Bull is similar to the above discussion of the entry of emerging market multinationals (EMM) into developed nations. However, Krating Daeng was rejected by the upper class in Thai society due to three situations, 1- the brand is associated with blue-collar workers, 2- health concerns regarding the chemical contents of the product, and 3- lack of marketing effort by the company create brand awareness (Farris, 2010). Dietrich Mateschitz was amazed by the potential of Krating Daeng in Thailand and introduced the product in Austria as Red Bull Energy Drink in 1987.

Dietrich Mateschitz rebranded the product so much that people started thinking that Red Bull was an Austrian company. With the introduction of Red Bull as an energy drink in Austria, the company established a new product category and further expanded it. Today, Red Bull Energy Drink is available in more than 160 countries while more than 2 billion cans are being sold annually (Red Bull, 2014a). At present product portfolio of Red Bull offers variants like Cola, Red F1 Edition, Total Zero (calorie-free), Silver Edition, Red Bull Energy Shot, Red Bull Racing, etc (Red Bull, 2014b).

 As Red Bull has already operating in the UK for more than 15 years it is expected that they have adjusted their business strategy in accordance with macro-environmental factors. Therefore, doing an in-depth PEST analysis will be a redundant activity (Hrebiniak, 2006; Homburg, Krohmer, and Workman, 2004).