BUS FPX 3030 Assessment 2 Place Analysis

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Capella University

BUS-FPX3030 Fundamentals of Marketing and Sales

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Place Analysis

Place analysis in product marketing involves evaluating retail locations and distribution methods to optimize how products reach the target audience. This process includes examining consumer behavior, market trends, and competition to determine the most effective ways to distribute products. It also considers the use of physical stores, online platforms, and other distribution channels to enhance product visibility and accessibility. A well-executed place analysis can lead to improved sales, customer satisfaction, and brand loyalty (Penke, 2020).

Additionally, marketers assess the effectiveness of current distribution channels and explore opportunities to expand or improve them. Understanding consumer shopping habits helps ensure that products are available in the most convenient locations for customers. This ultimately boosts brand recognition and loyalty by making the product more accessible and desirable.

Areas of Red Bull Large-Scale Consumption and Sell

Red Bull is consumed in over 171 countries worldwide, with notable popularity in certain regions. Red Bull was first introduced in Austria in 1987 and continues to be popular in Europe, particularly in Germany, Austria, Switzerland, and the UK. In the United States, where it was launched in 1997, Red Bull has become a well-established brand. The brand is also popular in Asia, especially in Thailand, where the product originated, and in countries like Japan, South Korea, and Indonesia. Red Bull is widely consumed in Australia and New Zealand as well (Benjawan Promrueang et al., 2021).

Red Bull products are sold in various retail outlets, including convenience stores, gas stations, supermarkets, and online platforms. The drink is also frequently seen in bars, clubs, and music festivals. To further promote its brand, Red Bull sponsors various sporting events and extreme sports competitions, which help drive sales and enhance brand visibility.

Red Bull Current Distribution Channels

Red Bull employs multiple distribution channels to ensure its products are accessible across various locations. Some of these include:

Retail Stores: Red Bull products are available in supermarkets, convenience stores, gas stations, and pharmacies, providing consumers with easy access to the product during routine shopping.
Food Services: Red Bull is also sold in restaurants, cafes, and bars, often as a mixer for alcoholic beverages or as an energy boost during meals (Benjawan Promrueang et al., 2021).
Online Marketplaces: Platforms like Amazon, Walmart, and other e-commerce sites allow consumers to purchase Red Bull products online, delivering them directly to their homes.
Sponsorship and Events: Red Bull promotes its products through sponsorship of sporting events, extreme sports competitions, and music festivals. Additionally, Red Bull maintains an online store, allowing customers to purchase products directly from the company (Thomas et al., 2019).

Getting their Product to Market

Red Bull uses a multi-channel distribution strategy, combining traditional retail partnerships with online sales and creative marketing initiatives. By working with distribution companies, Red Bull ensures its products are available in supermarkets, convenience stores, and gas stations. Additionally, Red Bull operates its own web store, offering customers the option to purchase products directly from the company (McIntosh et al., 2023).

The brand also leverages social media platforms to enhance product visibility and engage with its target audience. Platforms such as Facebook, Instagram, and Twitter feature content related to extreme sports and music events, promoting Red Bull’s brand identity and energy drink offerings (Penke, 2020).

Place Analysis Strategy and Impact on Economic Success

Red Bull’s distribution strategy has been pivotal to its commercial success. By building a global distribution network, Red Bull has made its products widely accessible, which increases the likelihood that consumers will choose Red Bull over competitors. The company has formed strategic partnerships with convenience stores, supermarkets, and restaurants to ensure broad product availability. Moreover, Red Bull’s sponsorship of sports and music events has significantly increased brand visibility (McIntosh et al., 2023).

Red Bull has also established a strong online presence, enabling the company to reach distant customers and cater to the growing trend of e-commerce. This diverse approach to distribution has contributed significantly to Red Bull’s market dominance in the energy drink industry (Pérez et al., 2019).

Recommendations to Improve Business Success

To further improve its business success, Red Bull should focus on determining the most effective distribution channels for its new coffee-flavored energy drink. This could include convenience stores, supermarkets, and coffee cafes. Establishing strong partnerships with these outlets will ensure the product is easily accessible and prominently displayed for purchase.

Moreover, Red Bull should conduct market research to understand consumer preferences and demand for coffee-flavored energy drinks in different regions. This would allow the company to tailor its distribution strategies to specific markets. Red Bull should also invest in targeted marketing campaigns, utilizing social media influencers and collaborating with coffee shops to increase product awareness (Avelar et al., 2020).

Conclusion

Red Bull’s global distribution network and strategic partnerships have been crucial in its success. By ensuring wide availability of its products, forming partnerships with retailers, and embracing online sales, Red Bull has maintained market dominance in the energy drink industry. Continued investment in e-commerce and innovative distribution methods will ensure Red Bull remains competitive and profitable in the future.

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

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