Essay Example on Promotional Strategies: Red Bull vs Coca Cola

Companies use promotion as a strategy of selling their goods and services in the market. Ideally, 'promotion' means advancing an idea or product by advertising or publicizing it (Boisen et al., 2018). This strategy carries the repercussion of raising the product's demand and sale volume hence leading to a rivalry between competing firms. For instance, red Bull and Coca Cola are employing promotional strategies by sponsoring sporting events, putting them in a stiff competitive milieu for their energy drinks. Still, Red Bull appears to be in the lead since it has a competitive advantage over its competitors, and the product remains the top energy drink throughout its progress because of its marketing strategy.

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Red Bull makes a big name globally for its modernism. Initially, the product was Asian based, although an entrepreneur from Australia personalized it to fit the tang of the western market. Its innovation hence rose from a copyright transfer from Thailand, which influenced its transformation into a carbonated drink with a firm Westernized charm.

Several entities influence the popularity of Red Bull as an energy drink, but above all, its market innovation sparks its resilience in a competitive arena (Heckman et al., 2010). Although, its primary operational challenge arises from lacking a patent for the firm's product formula. Accordingly, several other enterprises have employed Red Bull's furtive agent to make competing goods.

Right now, potential rivals of Red Bull are soft drinks organizations that can deliver caffeinated drinks without including bubbles. At the point when the hindrances of access are high, it is hazardous for potential rivals to thrive in the market. Thus in today's energy drink market, Red Bull faces primary completion from companies including Monster, Pepsi, and Coca Cola, among others.

Red Bull appreciates a legal situation in the perspectives on its customers, its fan following and adversary inclinations are additionally like what Coca-Cola, Monster, and Pepsi enjoy. For example, the contrast between them is not tangible as far as taste; nonetheless, the buyers who much of the time consume the drinks can observe the preferences from one another.

As different brands, both Monster and Red Bull energy drinks have received unique product guidelines up until this point, for instance, Red Bull advertises basing on its validity and quality. It aims individuals whose desire is for creativity in items, and therefore, it never changed its look in the previous twenty or so years. It has likewise kept its unique taste and image to take into account the majority based on their 'innovation.'

Nevertheless, Monster caffeinated drink has never received a similar procedure as of Red Bull as it never falters in making new plans for its clients. Along these lines, Monster likewise attempts to pull in new purchasers by offering an assortment of flavors, which Red Bull does not.

The most conspicuous comparison between these brands is that Red Bull never changes its logo. In any event, when it presented its sugar-free form, the trademark's logo never changed (Logman, 2007). Although Monster's logo and catchphrases for each can, changes as need be. For instance, Monster assault shows a red paw rather than a fluorescent green one, Monster zero ultra appears in smooth silver and dim can rather than the signature one.

As referenced over, the structure of Red Bull is slick and oversimplified. The silver and blue hues painted on a smooth can are presently conspicuous for their innovation (Logman, 2007). Whereas, the Monster can is more prominent, thicker than the previous brand and comes in different hues depending on what it is offering to its clients.

Unlike other drink enterprises, which depend on traditional media to market their goods, Red Bull takes a different approach by supporting sports events and offering free drinks to athletes (Kunz et al., 2016). Its principles bases on the sale of a 'lifestyle' hinged on trademark cognizance.

Even though Red Bull briefly constrains the value focuses, the competitors regularly wind up turning out to be supporters as far as their estimating strategies, the drink with the notorious smooth blue and silver can, in any case, draws in more consumers mainly due to its nutritional advantages, quality, and refined taste. Hence, the product has accomplished the most elevated client steadfastness and has gotten a sort of 'brand religion' in light of which, buyers eagerly follow through no matter its cost.

Additionally, organizations by employing cost preferences might compete and shatter their rivals rapidly because it usually is hard for new participants to coordinate their organizations with minimal cost creation. Hence, Red Bull, due to its unrivaled conception and tasks, involvement with the beverage business, and control of its data sources compared with its participation in delivering red bull drinks, gains the favorable value circumstances with keeping its quality in the elevated level. Even though there is a broad scope of vitality refreshments existing available with the low price contrariwise than Red Bull, in terms of quality, they have no cost benefits, so Red Bull is ventures ahead of its rivals in such cases.

Because of the challenges in the energy drink market, Red Bull centers on non-cost competitive strategies, including giving sponsorships and high quality products. Conversely, with diverse adversaries, Red Bull pulls in new consumers to its business by creating a bigger market share (Heckman et al., 2010). Therefore, the company has a critical effect on its adversary's presentation available because Red Bull is a pioneer in the energy drink business, and various establishments try to do the same by using Red Bull as a benchmark.

Generally, all through its market innovation, the product has been capable of upholding a prevailing market spot in the universal market for energy drinks. The significant factors contributing to Red Bull's success is its apparent societal advantages of taking the product (support for sports), focus on a market forte, and its depiction of a subculture (Kunz et al., 2016). Given that the devotion of Red Bull's customer following is faltering, since the time it came into the market; because of its innovation and because it is viewed as the pioneer of the caffeinated drinks, it is hard to perceive whether it will be overwhelmed totally by other brands or not.

Nevertheless, with the interest of enhancement in items emerging with time, Monster caffeinated drink with its propensity to put out new flavors and structures to pull in new clients, could have the option to take into account all classifications of clients later on. Even though there is stiff competition, the brands can draw in their fan following as needs be currently with online networking and as evident through Facebook and other media platforms; Red Bull despite everything has twice the same number of adherents than Monster and other brands when it comes to preference of energy drinks.

References

Boisen, M., Terlouw, K., Groote, P., & Couwenberg, O. (2018). Reframing place promotion, place marketing, and place branding-moving beyond conceptual confusion. Cities, 80, 4-11. https://doi.org/10.1016/j.cities.2017.08.021

Heckman, M. A., Sherry, K., & De Mejia, E. G. (2010). Energy drinks: an assessment of their market size, consumer demographics, ingredient profile, functionality, and regulations in the United States. Comprehensive Reviews in food science and food safety, 9(3), 303-317. https://doi.org/10.1111/j.1541-4337.2010.00111.x

Kunz, R. E., Elsasser, F., & Santomier, J. (2016). Sport-related branded entertainment: the Red Bull phenomenon. Sport, Business and Management: An International Journal, 6(5). https://doi.org/10.1108/SBM-06-2016-0023

Logman, M. (2007). Logical brand management in a dynamic context of growth and innovation. Journal of Product & Brand Management, 16 (4), 257-286. https://www.researchgate.net/profile/Marc_Logman/publication/242023565_Logical_brand_management_in_a_dynamic_context_of_growth_and_innovation/links/543320f40cf20c6211be4207.pdf