Place Analysis
Place analysis in product marketing refers to assessing the retail locations and distribution routes through which a product is sold. Determining the most effective and efficient ways to reach the target audience includes studying various aspects, including consumer behavior, market trends, and competition. In product marketing, place analysis examines the placement and usability of brick-and-mortar storefronts, online platforms, and other distribution channels.
BUS FPX 3030 Assessment 2 Place Analysis
It also entails assessing the effectiveness of current distribution channels and looking for chances to increase or improve distribution. Marketers can better understand their target market’s shopping habits and ensure that their products are offered in the most practical and accessible locations by analyzing places (Penke, 2020). As a result, there may be an uptick in sales and consumer happiness, as well as an increase in brand recognition and loyalty.
Areas of Red Bull Large-Scale Consumption and Sell
Around 171 countries around the world sell and consume Red Bull. Nonetheless, certain areas have higher levels of consumption and sales than others. Red Bull was initially made available in Austria in 1987, and it is still quite well-liked across Europe but is particularly well-liked in Germany, Austria, Switzerland, and the UK. Red Bull is a well-known energy drink brand in the United States, where it was first made available in 1997. Red Bull is much-liked in Asia, particularly Thailand, where it was initially made public, and in other nations, including Japan, South Korea, and Indonesia. In Australia and New Zealand, it is also commonly consumed. Convenience stores, gas stations, supermarkets, and online shopping sites, are just a few retail outlets where Red Bull is offered for sale (Benjawan Promrueang, et al., 2021). Also, it is frequently observed in pubs, clubs, and music festivals. Red Bull also sponsors various sporting events and extreme sports competitions to promote its brand further and boost sales.
Red Bull may target coffee shops and cafes to sell its energy drink with a coffee flavor instead of more traditional coffee beverages. Those seeking an instant energy boost without compromising the taste of their preferred coffee drinks may find this appealing. With the growth of e-commerce, Red Bull might use online marketplaces like Amazon, Alibaba, and other local online merchants to increase their reach and focus on online shoppers who like to buy from the comfort of their homes. Red Bull might advertise their coffee-flavored energy drink at concerts, sporting events, and other sizable gatherings that draw a younger audience interested in energy beverages (Simulescu et al., 2019).
As more people become health-conscious, Red Bull might consider putting its coffee-flavored energy drink on the shelves of these shops to appeal to people who want a more organic and natural energy boost. Red Bull may target workplaces and offices where workers frequently require an energy boost to get through long hours or demanding work periods. Giving the coffee-flavored energy drink instead of regular coffee or soda may be a pleasant change. However, Red Bull may consider this when releasing their energy drink with a coffee flavor (Simulescu et al., 2019). Ultimately, the product’s success will be determined by its pricing, marketing plan, and how effectively it appeals to its intended market.
Red Bull Current Distribution Channels
Red Bull energy drinks are distributed in numerous ways, some of which are mentioned below:
Retail Stores: Red Bull energy drinks are typically available at retail establishments such as supermarkets, convenience stores, petrol stations, and pharmacies. These stores give consumers a convenient spot to purchase products while conducting errands.
Food Services: Red Bull is also sold in food service establishments like restaurants, cafes, and bars. Customers are frequently provided the product as a mixer for alcoholic beverages or an energy boost during meals (Benjawan Promrueang et al., 2021).
Online Marketplace: Red Bull is distributed via online marketplaces like Amazon, Walmart, and other e-commerce sites. This enables clients to purchase the goods from the convenience of their homes and has them delivered directly to their doorstep.
Sponsorship and Events: Red Bull promotes their brand and products through sponsorship deals and events. Red Bull supports numerous sporting events, extreme sports competitions, and music festivals where their products are sold. Red Bull maintains its web store where consumers may purchase products directly from the firm (Thomas et al., 2019). This allows the organization to develop a direct interaction with its clients, bypassing traditional distribution channels.
Direct to Consumer: Red Bull’s distribution channels are intended to provide consumers with simple access to their products in various contexts. The company reaches clients through traditional and creative distribution channels, including physical retail stores, online marketplaces, sponsorship, and events (Thomas et al., 2019). This diversified distribution approach has led to the company’s market domination and success in the energy drink business.
Getting their Product to Market
Red Bull uses a multi-channel strategy to bring their products to market, which combines conventional and creative means. Red Bull has partnered with distribution businesses to ensure their goods are available at traditional retail locations, such as supermarkets, convenience stores, and gas stations. These distribution relationships allow Red Bull to reach a large audience and make their products accessible to consumers (McIntosh et al., 2023). Red Bull maintains its web store where consumers may purchase its products directly from the corporation. This allows the organization to develop a direct interaction with its clients, bypassing traditional distribution channels.
BUS FPX 3030 Assessment 2 Place Analysis
In addition, Red Bull offers an online subscription service via which users may sign up to get their favorite items regularly. One of the activities undertaken by Red Bull, a well-known brand, is to provide sponsorship for various events that involve sports, particularly those that are considered extreme, as well as music festivals. Red Bull can promote their products to a big audience and strengthen the relationship between their brand and extreme sports and music in this manner. Red Bull is renowned for its innovative marketing initiatives, which have helped the company establish a strong brand identity and connect with its target demographic. For instance, the corporation sponsors extreme sports athletes and events and has produced movies featuring stunts and tricks that have gone viral. Red Bull leverages various social media platforms, including but not limited to Facebook, Instagram, and Twitter, to enhance the visibility of its products and foster an interactive relationship with its target market (Penke, 2020). The company’s social media channels include photos and videos of extreme sports and music events.
Place Analysis Strategy and Impact on Economic Success
Location or distribution strategy refers to the means and channels utilized to distribute a product to consumers. Red Bull’s success has been substantially influenced by its placement strategy. Red Bull’s location strategy has centered on establishing a global distribution network to ensure its products are accessible to consumers everywhere. Red Bull’s location strategy has significantly emphasized strategic partnerships and collaborations (McIntosh et al., 2023). For instance, Red Bull has collaborated with convenience stores, supermarkets, pubs, and restaurants to guarantee that its products are offered in as many locations as possible. They have partnered with sporting and musical events to advertise their products and reach a broader audience. Red Bull’s location strategy has also centered on establishing a robust internet presence. The company has enhanced its e-commerce platform, making its products more accessible for online purchasing. This has enabled businesses to access faraway clients and those who want to shop online (Pérez et al., 2019).
Red Bull’s location strategy has contributed significantly to its overall commercial success. By establishing a vast distribution network, they have made their products more accessible to consumers, increasing the likelihood that they will choose Red Bull over other energy drink brands. In addition, through partnerships with various businesses, pubs, and restaurants, Red Bull has increased brand visibility and expanded its client base (Thomas et al., 2019). In an increasingly digital age, their excellent internet presence has also helped them to remain relevant and accessible.
Recommendation to Improve Business Success
Red Bull should determine the most important distribution channels for its new coffee-flavored energy drink, such as convenience stores, supermarkets, and coffee cafes. Then, they should establish strong partnerships with these channels to ensure that the product is clearly displayed and easily accessible for purchase. Red Bull’s energy drinks are distributed globally through an established distribution network. Using this network, they may introduce their new coffee-flavored energy drink to existing markets and expand into new ones (Avelar et al., 2020). Red Bull should do market research to comprehend consumer preferences and demand for coffee-flavored energy drinks in various countries and marketplaces. This will assist companies in adapting their distribution strategy to the needs of their target clients.
Red Bull should create targeted marketing campaigns to sell its new energy drink with a coffee flavor. For instance, they may engage with coffee shops to offer samples and promotions or with social media influencers to generate attention. As e-commerce continues to grow, Red Bull should invest in online distribution channels to make their new product more available to consumers. This may involve connecting with internet businesses or creating their e-commerce platform. Red Bull should regularly monitor and evaluate the effectiveness of its distribution channels to find areas for improvement and make the required adjustments to increase commercial success (Avelar et al., 2020).
Conclusion
The strategic placement of Red Bull’s products in various locations has been a crucial factor in the company’s overall triumph and accomplishment. The company has developed a global distribution network that makes its items readily available to clients around the globe. This has enhanced their products’ visibility, raised sales, and helped them maintain market dominance. Red Bull has also successfully formed relationships with retailers and other companies, which has allowed them to increase their distribution channels and establish a strong brand image. By investing in e-commerce, Red Bull has made its products readily available for online purchasing, enabling them to reach a broader audience. Red Bull’s place strategy has centered on providing customers with a seamless and convenient purchasing experience. Red Bull has remained ahead of the competition and maintained their market domination in the energy drink industry by making their products accessible in several locations and employing technology to extend distribution channels. Overall, Red Bull’s location strategy has been crucial to the company’s success, and the company’s emphasis on building a robust distribution network will continue to be a significant driver of future development and profitability.
References
Avelar, M., Sousa, Á., & Menezes, A. (2020). The impacts of sport tourism events: The red bull cliff diving world Series case in the Azores islands. Advances in Tourism, Technology and Systems, 64–80. https://doi.org/10.1007/978-981-33-4256-9_6
Benjawan Promrueang, & Jaruporn Tangpattanakit. (2021). How corporate social responsibility (CSR) impacts on corporate image and consumers’ trust with the social trend as an extraneous variable: A case study of red bull beverage co., Ltd. UBRU International Journal, 1(3), 31–39. https://so04.tci-thaijo.org/index.php/ubruij/article/view/256620
Campos-Pérez, J., & Cámara-Martos, F. (2019, January 1). 10 – Influence of substances present in energy and sports drinks in improving athletic performance (A. M. Grumezescu & A. M. Holban, Eds.). ScienceDirect; Woodhead Publishing. https://www.sciencedirect.com/science/article/pii/B9780128158517000103
BUS FPX 3030 Assessment 2 Place Analysis
McIntosh, E., Ferguson, S. A., Dorrian, J., Coates, A. M., Leung, G., & Gupta, C. C. (2023). “Mars bar and a tin of red bull kept me and my patients alive”: Exploring barriers to healthy eating through Facebook comments of shift workers. Nutrients, 15(4), 959. https://doi.org/10.3390/nu15040959
Penke, L. (2020). Red bull gaining momentum in European club football: The competitive advantage of rasen ballsport leipzig e.V. Bibliotecadigital.fgv.br. https://bibliotecadigital.fgv.br/dspace/handle/10438/29358
Simulescu, V., Ilia, G., Macarie, L., & Merghes, P. (2019). Sport and energy drinks consumption before, during and after training. Science & Sports, 34(1), 3–9. https://doi.org/10.1016/j.scispo.2018.10.002
Thomas, C. J., Rothschild, J., Earnest, C. P., & Blaisdell, A. (2019). The effects of energy drink consumption on cognitive and physical performance in elite League of legends players. Sports, 7(9), 196. https://doi.org/10.3390/sports7090196
