Year 12 IB Extended Essays 2018

3 Marketing Strategy Analysis

3.1 Growth potential in terms of market and product

In applying the Ansoff’s Matrix both Red Bull and Dare have an

existing product within an existing market and therefore in terms

of planning for growth both are using a market penetration

strategy to gain market share over their competitors.

Red Bull, being the original energy drink found itself in an

uncommon market position when entering the Australian market,

behind V Energy. Red Bull has used content marketing (James,

Obrien, 2012) by the use of story-telling within the market

campaign to create a lifestyle brand that is not focused on the

Ansoff Matrix (Oxford College of Marketing, 2018)

product but on consumers. The brand has used multiple platforms

to grow a publishing empire of extreme sports content, from wind gliding to cliff diving, Red Bull

distributes content that its consumers are more inclined enjoy. Along with the hosting of sporting

events such as the Red Bull Flug Tag, an event which sees competitors build their own homemade

flying machines and attempt to fly the furthest. The event attracts up to 300,000 spectators (Red Bull,

2018) and serves as an invaluable marketing event for Red Bull so they are able to positively interact

with customers, regularly offering free samples of their drinks along with branded promotional

products with their company logo. This method of marketing is effective as it doesn’t focus on the

product, which has been under threat recently by health critics and high-profile chefs such as Jamie

Oliver due to the high amount of caffeine contained in the drink

(The West, 2017) but on the lifestyle it creates.

Evidence of the success of this marketing can be seen in Red

Bulls gain in market share within the impulse buying market

(Effie, 2017). I have referenced the impulse buying market

statistics instead of the energy drink market as I was unable to

Red Bull Flug Tag 2018 (Red Bull, 2018)

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