Marketing report on Red Bull and its global opportunities Essay

Marketing report on Red Bull and its global opportunities - Essay Example .................................................................................... 5. Conclusion................................................................................................................... References EXECUTIVE SUMMARY Red Bull has found considerable success internationally by giving consumers the impression that it is an exclusive and premium energy drink brand. This market report assesses the current marketing environment in the UAE, an environment with adequate consumerist values and attitudes that could, theoretically, support entry for Red Bull into this market. The UAE is currently becoming saturated with competitors offering different energy drinks, thereby establishing a brand presence. What conflicts market entry is that the UAE is a very risk averse culture where innovation might be rejected, making it difficult for Red Bull, as a new market entrant, to outperform many other competitors already with a brand presence and recognition in this nation. Ch allenges to finding profit success are not just a rapidly saturating market, but also include fiscal concerns with low exchange rates that could significantly raise the pricing structure, per can, with a product that is already highly priced compared to competition. Due to cultural, fiscal and social aspects of the UAE market environment, it is recommended for Red Bull to attempt a direct exporting market entry strategy to avoid high costs and reduce risks to the business. With recurrent promotions, Red Bull can establish brand recognition and work toward building brand loyalty post-entry. Marketing report on Red Bull and its opportunities for launch in the UAE 1. Introduction Founded in 1987, Red Bull GmbH is an Austrian beverage company that, in today’s global marketplace, produces Red Bull, the world’s most popular energy drink. A whopping 4.6 billion cans of Red Bull were sold worldwide in 2011, which represented a significant increase of 11.4 percent from 2010 (Re d Bull 2012). Red Bull currently maintains a 70 percent market share in the energy drink market, hence outperforming even major brands that compete in this industry such as Coca-Cola (Field 2006). Red Bull has managed to create what is referred to in marketing literature as brand recognition, or the extent to which a brand becomes familiar to consumer segments and where consumers are able to effectively link a brand (or logo) to a product successfully (Farris, Bendle, Pfeifer and Reibstein 2010). Red Bull, globally, spends an enormous volume of its revenues on the marketing process, a total of 25 percent of corporate revenues (Boome 2011). Red Bull, through this high capital expenditure on marketing, has managed to build a brand personality domestically and in many foreign nations where Red Bull has entered, which makes it stand out to many different international energy drink producers. This report focuses on the potential for Red Bull to enter the United Arab Emirates and achieve the same consumer loyalty the brand has managed in many other nations whilst also achieving appropriate revenue growth upon entry. A market analysis, including emphasis on consumer behaviour and attitudes in the UAE, supports whether Red Bull will find success in this new market or hinder advancements of this brand. Research indicates that the UAE might be an ideal environment for gaining consumer loyalty and building brand preference based on socio-cultural aspects of UAE buyer markets. 2. The marketing environment in the UAE The United Arab Emi