BUS FPX 3030 Assessment 2 Place Analysis

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Introduction

In BUS FPX 3030 Assessment 2, the company has continued to seek new opportunities to expand the industry’s leading energy drink business. In order to market a new range of energy drinks with a coffee taste, the marketing manager has to make an evaluation of the placement strategy of the firm. Another of the four Ps of the marketing mix is place strategy courses through the producer’s supply chain and extends to the customer level, encompassing product placement and the routes via which products reach stores (Kotler & Armstrong, 2021). Thus, this paper will examine existing channels through which Red Bull sells its coffee-flavored drinks, identify other areas where Red Bull may expand, and analyze how these channels may be optimized.

Areas Where Red Bull Products are Sold and Potential New Outlets

You may get Red Bull energy drinks in many different places these days: Cafes, restaurants, supermarkets, petrol stations, small corner stores, nightclubs, and through the internet (Red Bull, 2021). said that purchasing the product is relatively simple to access customers at many places due to its wide network of distribution, which has boosted the success of the company. Red Bull might have wished to extend into the coffee shop, cafe, and breakfast restaurant market with their new range of coffee-flavored energy drinks. Any customer in a hurry to face an energy-demanding day as they take coffee will feel comfortable with these places given the product taste. The corporation may also consider partnering with companies that offer office products since many office-going people will find it easier to have an energy drink with a coffee flavor at a nearby store, together with other office requirements (Vanderhaegen, 2019).

Analysis of Red Bull’s Current Distribution Channels

BUS FPX 3030 Assessment 2 Red Bull operates a multichannel distribution system that targets its consumers directly or indirectly. As reported by Euromonitor International in 2019, the firm directly supplies wholesalers and mass merchandisers, who then offer the items in independent shops. In this way, Red Bull is able to target millions of people worldwide while maintaining a decent markup price and brand image.

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However, the major strategies employed by Red Bull that set it apart from its competitors include Red Bull, which also applies modern means of product distribution. Brand messengers give out free products at performances, parties, and other popular areas that are a component of the organization’s unique sampling strategies (Faits, 2021). Awareness with the targeted public, brand familiarization, and consumption promotion are some of the objectives of this strategy.

Place Strategy and Its Impact on Business Success

Red Bull’s company has benefited much from its location strategy. Market sales and shares have expanded due to the company’s focused attempts to reach the market and choose the most suitable distribution channels (Euromonitor International, 2019). BUS FPX 3030 Assessment 2 evaluated factors reveal that the distribution choices made in the context of the firm accurately fit the other elements of the marketing mix. Consumption at fine stores supports the augmentation of Red Bull’s high prices, and the distribution channel strengthens promotion, including events and samples (Faits, 2021). The following suggestions could help Red Bull’s new coffee-flavored energy drinks sell better:

BUS FPX 3030 Assessment 2 Place Analysis

1. The second objective is to maximize the contact points with the core target groups by building relevant distribution partnerships with coffee shops and cafés (Vanderhaegen, 2019).
2. Secondly, to create understanding and encourage new working professionals to try the product, make a “coffee break” sample in offices and co-working areas.
3. third, cooperate with popular meal delivery services to incorporate new product ranges into their offers due to the growing focus on home delivery (Euromonitor International, 2019).

Impact of Place Strategy on Red Bull’s Profitability

Red Bull’s business success cannot be discussed without the company’s placement strategy. This is because the corporation may be able to use direct methods of distribution as well as indirect means of distribution in a bid to increase the profit margins. This way,  Red Bull manages to maintain the price range stable and negotiate the best conditions as the company directly supplies the beverage to large supermarkets and wholesalers (Faits, 2021). Another advantage is the smart distribution decisions, such as putting the shops in better-populated regions and associating them with well-visited events. The end effect of this development is an increase in the company’s profitability (Euromonitor International, 2019).

Conclusion

Location strategy is one of the many factors that have made Red Bull the headline of the energy drink industry. It is essential to assess the company’s existing distribution channels and potential ones because it plans to launch a series of energy drinks with a coffee flavor. BUS FPX 3030 Assessment 2 Red Bull presents several opportunities for the development of the company and the subsequent growth of revenues. These are used to identify new markets such as cafés and office supply stores, launch targeted samples, and utilize meal delivery app programs. Therefore, the following must be achieved to ensure that the location strategy is in the right alignment with other elements of the marketing mix to sustain the competitive advantage and guarantee long-term firm growth.

References

Euromonitor International. (2019, October). Red Bull GmbH in Soft Drinks (World). Passport.

Faits, V. (2021, February 25). Red Bull’s marketing strategy: What you can learn from it. The Ambitious Marketer. https://www.theambitiousmarketer.com/red-bulls-marketing-strategy/

Kotler, P., & Armstrong, G. (2021). Principles of Marketing (18th ed.). Pearson Education.

Red Bull. (2021). Discover the world of Red Bull. https://www.redbull.com/

Vanderhaegen, R. (2019, August 15). Red Bull marketing strategy: Sampling and extreme sports. Referral Candy. https://www.referralcandy.com/blog/red-bull-marketing-strategy/