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Consumer Behaviour and Marketing Psychology(Red Bull – Customer Loyalty Problem)Table of Contents1
SrParticularsPage1Executive Summary32Red Bull Overview43Critical Analysis44Strategic Recommendation95Reference List 10Executive Summary2
Red Bull an energy drink company, which focuses on brand awareness and content creation via social media, commercials and strategic sponsorship of events. A global giant uses its brand recognition to drive its marketing strategy with help of their Red Bull Media House company. They market their brand to target youth who prefers to live adventurous and exciting lifestyle.Although in recent past this strategy has worked perfectly, but now this big global giant facesa new challenge as their customer loyalty has declined over the last year and that repeat purchases are at a historic low. Customers are opting to buy their competitors product and Red Bull need to change or adapt to a new strategy to cope with this change.This report will give key recommendation to improve their current sales performance by making strategic changes in their marketing practices. This recommendation will be aligned to their current marketing position and will not have any drastic change as it can affect company adversely. Red Bull Overview3
Founded just 25 years ago, from an unlikely partnership between a Thai tycoon and an Austrian businessman, the energy drinks firm Red Bull had sold more than 5.2 billion cans of drink in 165 countries in 2012. This most popular energy drink sold as an energy drink to reduce fatigue from daily work routine and gives high energy to the consumers to continue their work in daily life. More than just another global brand, Red Bull opted to achieve their success by implementing unconventional marketing strategies. One of the notable strategies Red Bull has introduced in their early introduction phase in global market was their involvement with extreme sports and their participation in the F1 circuit through its eponymous team.Red Bull chose to use their marketing and advertising strategy to concentrate on the brand rather than the contents of their product. Some people chose to call it an ‘anti-brand’ strategy, because of their word of mouth marketing and creating a brand image for young and adventure lovers. This report will discuss the Red Bull’s current marketing strategy and marketing communication mix with the help of consumer decision making process from the recent purchase and the sample survey analysis. This report will provide the recommendations to address the issue of company’s customer loyalty, which has declined over the last year and that repeat purchases are at a historic low.Critical AnalysisOver last decade, Red Bull has managed to transform the perception about the conventional marketing strategies and started creating their own campaigns and strategies. Red Bull is currently dominating the industry and has managed innovate marketing practice in soft drinks industry. This report will pin point the most innovative and valuable ideas currently implemented by Red Bull.