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Market Environment and Customer Needs - Red bull

University: London School of Business and Finance

  • Unit No: 8
  • Level: High school
  • Pages: 7 / Words 1720
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 517
Question :

This assement will cover the following questions:

  1. Generate an ability to effectively analyse the current situation of a market in the context of Red bull.
  2. Make Alignment in organisational competencies and behaviours with market requirements and opportunities.
Answer :
Organization Selected : red Bull


Micro environments can be defined as an environment that has direct contact with the business organization and can impact on the routine activities and operations of business (Fiasconaro and et.al., 2016). It is made up of several elements such as: customers, suppliers, competitors, marketing intermediaries etc. This present study is based on red Bull which is Australian company formed in the year of 1987. This company sold approximate 6.790 billion energy drink cans in a year. This present study is going to show some micro and macro environmental factors such as: like suppliers, competitors and other macro environment like political, social, economic etc. All these factors have direct positive and negative impacts on the operations and performance of the company. By analysing all competitors factors, customers needs factors, company make itself beneficial and make an effective decision.

Market environment analysis

Market environment analysis us an effective tool that can help Red Bull company to analyse all internal and external factors that impacts negatively and positively on its performance. After identifying each factors it makes modifications in its strategies and policies with the main aim of taking competitive advantages.

Macro environmental factors

  • Political: Red bull offers energy drinks to people and for that it is important to monitor that it fulfils all legal requirements. Red Bull has several departments within its organization which separately specialize in their departmental function and work collaboratively in order to keep the business running smoothly (Analysis of Red Bull,2019). For avoiding complexity of laws each department make sure that they are performing their work in an efficient manner. It is stated that this company tried to influence some rules via its lobbying efforts which impacted it in negative manner.
  • Technological: Red bull has a strong financial; stability which makes it able to take competitive advantages by investing in technology. It mainly relies on internet and Websites such as: YouTube, Facebook, Twitter and other for promoting its products. It all marketing techniques are considered unique from other which is an opportunity for this company.
  • Environmental: In this context, it is analysed that some environmental factors and laws related to this factor impacted on its image. In the year of 2009, top 10 companies were awarded the biggest fine by environmental agency because of waste activities and red bull was one of those 10 companies. It was fined of approximate £260,000. Now, it has promised to fulfil all requirements and makes its business sustainable (Widya Yudha, Tjahjono and Kolios, 2018).

Micro environmental factors

There are several other factors rather than macro which can also impacts on its performance which are discussed as below:

  • Employees: Employees are the main key and an important resource which helps the company in accomplishing their all pre-determined goals. Demotivated and dissatisfied employees can become the reason of the failure of the business as they do not focus on their work and leave the company. So, it is important for Red bull to focus on employing skilled employees and providing them training and development opportunities.
  • Customers: The main reason of the company of existence is to satisfy needs of potential customers and make money. The ultimate aim is to provide qualitative products,Paper help and services to customers and make profit in return. For this purpose, company needs to focus on listening queries of customers, solved out them, build strong relationship and providing products at affordable prices (Saridakis, Lai and Cooper, 2017).
  • Shareholders: Shareholders are those people who buy shares of the company and behave as like the owner of the company. They seek their company to earn more profit or demand a return on investment. For satisfying them and making a good image in the eyes of them, Red Bull needs to make effective policies which can make them beneficial.

Consumer analysis

Segmentation and targeting is an effective marketing strategy which helps the company in identifying its target and potential customers. After targeting a segment, company needs to analyse and identifying their needs for satisfying and attracting them (Fetscherin and Heinrich, 2015). Red Bull focus on demographic segmentation in which the market is being divided into a group on the basis of age, gender, occupation etc.

  • Age: The main target of this company on the basis of age are 16-30 age group of people. For middle age group of people, red bull has come up with 0 calorie and special editions.
  • Gender: Mainly target are males as females are a part of their customer base (Red Bull marketing strategy,2017).
  • Income: It is associated with a certain luxury under its brand name which shows Well off segments in this factor.
  • Occupation: Target on this basis are students, sports enthusiasts and working professionals. So, it can be said that the main target on demographic segmentation is 13-21 years of college students and young adults with the age of 21-35 years as well as athletes.

Behaviours of target market

  • Fun: Target market changed from athletes to teenagers because it is identified that teenagers and students of nowadays wants to take risks and have fun. They spent their lot of time outdoors and it is also reported that college students consumes at least 1 energy drink in a month in the hope to increase their energy level.

So, it can be said that it is important for the company to understand needs and demands of customers for providing them products as per their requirements. In marketing strategies, It identified that most of the teenagers wants to boost their stamina and energy level and that is the main reason of targeting this market. Behaviours of teenagers shows that products of Red bull are efficient for them (Carlucci and et.al., 2015).

Competitor analysis

Red Bull offers its products in approximate 171 countries and has sold approximate 6.3 billion cans in the year of 2017. But there are several competitors in this industry that has string financial stability and position in the market which gives intense competition to this company (Clements and Hay, 2015). Some direct competitors of Red Bull are described as below:

  • Coca-Cola: It is one of the leading soda beverages company in the world that offers wider range of products. Its all brand portfolio generates approximate 1 billion USD. It does not only sell energy drinks but also provides bottled water, low calories' soda drinks in almost 200 countries. Its effective marketing strategies and range of products give the highest competition to red Bull.
  • Pepsico: Pepsico is also one of the biggest player in the soda industry as it has approximate 20 billion dollar brands. It also generates great revenue as approximate 63.5 billion dollars. It also competes with Dr. Pepper Snapple across the energy drinks category and it is the reason it is the main competitor of Red bull (Gaidelys and Dailydka, 2016).
  • Monster energy drinks: This player sells its products across 128 countries and has made gross sells in the year of 2016 is approximate 3.5 Billion dollars. It several energies drinks products have characteristics which can compete with Red Bull energy drinks products across the U.S. Some of its leading energy drinks include: burn and full throttle and NOS.

Rather, direct competitors that are several products are available in the market who have almost same features of Red bull energy drink. On of the main indirect competitor of Red Bull energy drink is defined below:

  • Lucozade: It is a soft drink which is manufactured by Japanese company as a range of sports and energy drinks. The main feature of this drink is it helps with rehydration after diarrhoea. This feature is the main reason that it is a competitor of Red Bull energy drinks (Ainsworth, 2016).


  1. As per the above study it is analysed that company analysis internal and external factors in which some factors have negative impacts on its performance. It can be recommended to this company that it should focus on new profiles and other target along with its existing target because young people sometimes can be risky as their needs keep changing continuously.
  2. It can also be recommended to this company that it should now enlarge its products range. By enlarging range of products as like Coca-Cola, it can secure its position in competitive market and also increase sales.
  3. There is high intensity in competition and, this company has faced many criticism so, it can be recommended to Red Bull that it should focus on adopting a clear and an effective speech about bad uses of its drinks. By providing speech and telling features of characteristics of its products it can promote and attract wider range of customers.

You may Read Aslo - Key Roles and Responsibilities of the Marketing Function


From the above study it has been summarized that business environmental analysis played a vital role as it includes all external and internal factors. Some macro environmental factors that have great impacts on the performance of the company includes: environmental, economic and political conditions of the country in which it operates etc. It has also shown importance of competitors analysis as it helped an organization in analysing and identifying its position in the market and factors that give highest or lowest intensity power and threat. Further, this study has discussed the importance of analysing and understanding needs of customers as customers are the main key of the success of the company. Without customers, organization cannot accomplish its goals. By analysing all needs, problems and characteristics of different types of customers, organization accomplished its goals.

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