Red Bull Essay

979 WordsNov 17, 20114 Pages
Red Bull:The Anti-Brand Brand Red Bull’s Sales & Distribution Tactics Red Bull’s decentralised sales units were responsible for sales, marketing and distribution in their own area. Its distribution strategy contributed to the perceived exclusivity of Red Bull. When contacting small distributors, sales reps insisted that Red Bull be distributed exclusively by a dedicated sales force. If refused, they set up their own Red Bull warehouse, bought vans, painted them with the Red Bull logo, and hired their own deliverymen to distribute the cans of Red Bull. Sales reps had a selective sales strategy. They identified five key accounts in their area—hotspots such as clubs and bars popular with the “in-crowd”—where they approached key individuals including DJs, bar tenders, and other trendsetters. They provided these accounts with Red Bull as well as branded promotional items to enhance the brand visibility. If other establishments asked to buy Red Bull, they were at first refused. Sales reps then targeted shops near universities and gyms. Dealing with individual accounts rather than big retailers had the added advantage of being fast. In 2003, an estimated 64% of volume was generated by consumption in bars, clubs and petrol stations—accounting for 79% of the value due to the price premium—while retail outlets made up the remaining 36% of volume. Red Bull was facing strong competition in the retail space, not only from beverage heavyweights such as Coca-Cola and Pepsi, but also from private labels. For example, the retailer Asda (part of Wal-Mart) launched its own energy drink branded Blue Charge in the UK. Recently, Red Bull had started to experiment with the distribution mix. For example, it had been highly successful in a distribution alliance with Cadbury Schweppes in Australia, where expanded distribution contributed to a 40% up-tick in sales between the

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