Case study assignment marketing PDF

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Q.1 what are Red Bull's greatest strengths and risks as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drink category and gain market share? Answer: Red bull has established itself as a Strong, fresh and fashionable brand identity and within the energy drinks market Red Bull is the industry leader throughout the world. It describes a unique energy drink which helped for health creating a market space and brand image The Company has also been able to establish the connection of its product with the youth. Unlike other company they focus on viral marketing based on word of mouth and a “seeding program” focused on getting Red Bull products into trendy shops, clubs, and bars. This can be considered as their strength. But they too have weakness; the sole product that is red bull energy drink may go obsolete if the product gets a competitor. Like Coca-Cola, Pepsi and Monster they do not have varied product. Red Bull hasn’t been able to create a line extension offering either a diet drink to appeal to the recent trend of health conscious consumers or a new flavor while also changing their price point to be more sensitive to the consumer. Q.2.Should Red Bull do more traditional advertising? Why or why not? Answers: I believe that red bull should do traditional advertising and no print because the basis of any marketing strategy is to know who your consumer is. They have an intimate understanding of who their target market is (young men), what they watch (sports), and what they like (adventure, danger, pushing the limits).They always tend to push the limit like the time they sent a man to break sound barrier by jumping from edge of space. See its likes who needs billboards banner ads when you can sent people to jump form space. The Whole world was cheering for that event .the try to make you feel that you are a part of something bigger and besides this their creative tag line “red bull gives you wings!” really captures the thought of a person Q.3. Discuss the effectiveness of Red Bull's sponsorships. For example, Bull Stratos. Is this a good use of Red Bull's marketing budget? Where should the company draw the line. Answers: The sponsorship transcended sports and entertainment into popular culture, hitting new consumers that Red Bull does not usually capture, on a global scale. It reaffirms that Red Bull doesn’t just sponsor events, it creates them. A record 8 million people watched YouTube's live stream on Sunday 14th October, as Felix Baumgartner became the first person to break the sound barrier with a free fall Besides YouTube, the jump was also broadcast on more than 40 TV stations across 50 countries and 130 digital outlets. Red Bull's Facebook post-jump photo of Baumgartner gained almost 216,000 likes, 10,000 comments and over 29,000 shares within 40 minutes, and half the worldwide trending topics on Twitter were related to Red Bull Stratos. The video has since been watched over 10 million times on YouTube and the event has been front page news worldwide. So we can see the effectiveness of their strategy .It has created a good brand image and value. So I believe that the company shouldn’t draw line. They should take calculated risk.

Q.4. Southwest has mastered the low-price model and has the financial results to prove it. Why don’t the other airlines copy Southwest’s model? Answers: Southwest airlines is ranked United the most admired airline since 1997, the motto of the company was LUV airline, they featured a bright red heart as its logo and relied on outrageous antics t generate word of mouth. They served Love Bites (peanuts) and Love Potions (drinks). It is acknowledged by its unique market niche for serving only over 35 states in United States especially in cities that has fewer airports and lower gate fees and less congestion. Southwest is a low-cost airline that focuses on fast, no frills service. It has never served meals, does not have advanced seat reservations, and flies only specific type of Boeing airplanes. These decisions have helped them to be flexible. Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burned airlines may not be able to imitate. Following are the steps taken by Southwest to save money and pass to customers through low fares;Flies over 3100 short and point to point trips in a day, Fast turnaround service, Unique boarding pass. Southwest Airlines is also well-known for having a very productive a loyal workforce. Such loyalty and productivity among the employees were brought by the way Southwest’s management treats them. The company also plans for the future and is not afraid to take risk necessary to stay ahead of the competition. Q.2. What risks does Southwest face? Can it continue to thrive as a low- cost airline when though economic times hit? Answers: So far we have in that Southwest is ahead in the competition because of the decisions they have taken to minimize their cost so that passengers are benefited. But there are certain risk factors that Southwest may face; firstly Southwest Airlines have to run their flight even if only half of the seats are full. In such situation the airlines have a risk of earning really low revenue. Secondly, South West Airlines is at constant price wars with its competitors. In such price wars, sometimes South West is forced to keep the prices of tickets really low. Thus in this case to the airline runs a risk of eventually earning low revenue which could hurt its overhead and affect scheduling and workers.The fear of an oil hike remains. The price of the oil fluctuates and Southwest Airlines is trying to keep up with this fluctuation of oil prices over the past couple of years, locking in fuel prices well under $40 per barrel. That spared Southwest Airlines the squeeze from higher energy prices that hit other carriers. Unfortunately, those hedges are ending, so Southwest faces higher energy costs even though crude prices have fallen....