.0. Introduction 1.1. Background and Academic Context Prehistorically, Globalisation is defined as an emerging network that belongs to economical and social systems (Online etimologi etymology dictionary, non non-paginated) . Roland Robertson (1992) was the first person to define globalisation globalization as \\\"the understanding of the world and the increased...
.0. Introduction
1.1. Background and Academic Context
Prehistorically, Globalisation is defined as an emerging network that belongs to economical and social systems (Online etimologi etymology dictionary, non non-paginated) . Roland Robertson (1992) was the first person to define globalisation globalization as "the understanding of the world and the increased perception of the world as a whole”. .” However, later definitions have varied as there were many more complexities associated to with the word globalisation globalization (Dr. Nayef R.F. 2006). Thompson Larsson (2001) states that globalisation globalization as a process that condenses the world’s size to promote mutual wellness. Although Kenichi Ohmae (1992), Robert Cox (1994), Anthony McGrew (1999), Thomas Friedman (1998) and David Henderson (2004) suggests that globalisation globalization is about taking down borders and breaking barriers around the world, Herman E. Daly (1999), Anthony Giddens (1998), Teitel (2005) and Majid Tehranian (1998) contradicts this by stating that this may not always have a positive impact on the economy of developing countries. These researches suggest that it is insecure for a nation as an individual to liberalise liberalize their migration laws and border security control for several safety, national security reasons. Globalisation Globalization at large aims to promote trade and break these barriers, however in doing so, a country can get subject to unwanted threats. Therefore in a wider perspective, Jan Aart Scholte (2002) claims and modern researches a such as Dr. Nayef R.F. (2006), Larry Ray (2007), Jim Sheffield et al. (2013) and Usman Riaz Mir et al. (2014) agree that the nature of the word globalisation globalization is relative and has no definite clear definition but. Still, its definitions is are contextual to the situation that the word is applied at.
1.2. Rationale The rationale for the Research
Globalization has facilitated the evolution of marketing, and it impacts the strategies used by corporations. Imperatively, marketing strategies are started domestically in the central offices of a firm and, thereafter after that, shift international by extension. Subsequent toAfter going international, the companies are forced to alter their marketing mix and adapt to multinational strategies. In additionAlso, the global markets can be opportunistic but, at the same time, largely unpredictable. This necessitates well- thought out strategies. This is for the reason that when marketing globally, the company increases the number of players into the mix. In this regard, the inference of global marketing is that these strategies must provide for susceptible international markets and also be at par with acquisition and logical prospects that impact the marketing mix (Hosmer, 2018).
Globalization has also facilitated the diffusion and adoption of technology across borders. This has impacted marketing strategies as it has forced companies to incorporate technological aspects such as social media channels and “omniOmni-channels “into their marketing strategies. Cook (2014) outlines that the present-day consumers have accessibility to a more extensive range of technologies compared to generations in the past, with numerous consumer segments having being brought up with or largely swayed by technology. Changing lifestyles imply that “consumers in the contemporary “wish to conduct the purchasing process at a period and time that is suitable to their individual needs, utilizing technology that they actually have. Furthermore, this is an effective strategy for the reason that research also demonstrates that, in an event thatf these consumer segments are completely engaged by means ofthrough online and social media channels, they can end up being very loyal consumers. Cook (2014) delineates that behaviourally, these consumer segments insist on having a suitable and gratifying setting in which to conduct product research at a place and time that is suitable to them.
Globalization, characteristic by declining trade barriers, economic integration, and new global markets, has resulted in significant changes in the global marketing landscape, presenting both contemporary opportunities and threats (Agarwal & Wu, 2018). As an outcome of globalization, companies now cancan now produce goods and services for diversified international markets, while consumers can reach suppliers worldwide. With globalization, the global market place has transformed into a borderless village due to the explosive growth of the internet. Exponential growth in innovation and technological advances has fostered the production of new products and services across markets and countries. Consequently, electrotonic commerce is dominating the retail market, transforming the approach to marketing. This evolution, therefore, necessitates a review of marketing strategies to incorporate new methodologies that addresses brand management and positioning in a global arena.
The literature identifies that traditional advertising, such as traditional printed advertisements that target the mass market as opposed to the target audience, is more costly to a brand (Arora, Bacouel-Jentjens & Edmonds, 2018). According to Kresh et al., (2018), marketing strategies tailored to specific demographic audiences and targeting consumer connection is more cost cost-effective and efficient. Social media platforms are one of the fastest fastest-growing platforms for digital marketing. Social media platforms are one of the fastest fastest-growing platforms for digital marketing. Agarwal & Wu (2018) notes that contemporary research on global marketing research focuses on conventional marketing strategy with minimal focus on the changing marketing strategy landscape of the twenty-first century.
1.3. Significance of Topic
As it can be seen above, the application of globalization in marketing is influenced by various factors, not limited to digital technology, culture, an international platform, and trade. Hence, since globalisation globalization evolves by its nature with time, it is significant to understand its method of change. Thus, this study lays a specific emphasis on the events of the 20th century as its objectives is are to understand the nature of how globalisation globalization evolves and to understand how globalisation globalization drives changes in marketing for Red bull in order to understand the nature of the evolution of globalisation globalization and thus the adaptation of marketing as a response to the evolution of globalisationglobalization.
1.4. Aim of the Study
This research is aimed at exploring the extent to which globalisation globalization has impacted the core marketing principles of Red Bull with regards to the change of time, technology, socio – -cultural interconnectedness leading to an overall evolution of globalisation globalization across time from the 20th century to the 21st century and as a result, which could lead to a change in the effectiveness of the product and promotional strategies as a response to customer expectation adopted by Red Bull with a future prospect.
1.5. Research Objectives
1. To Critically analyse analyze knowledge on different marketing strategies in response to globalization by reviewing relevant academic literature.
2. To critically explore the extent to which globalisation globalization has changed since the 20th century with regards to Red Bull.
3. To critically evaluate the benefits and drawbacks of globalisation globalization on Red Bull’s core marketing principles.
4. To understand the link between the evolution of globalisation globalization between fundamental principles of marketing adopted by Red Bull.
5. To discover optimum ways in which Red Bull can adapt to global scenarios via modification of existing marketing strategies with an emphasis on customer expectations.
1.6. Research Questions
1. How does the evolution of globalisation globalization since the 20th 20th-century impact and evolve the efficiency of core marketing principles of Red Bull?
2. How does understanding the past trends and the nature of the evolution of globalisation globalization since the 20th century predict relevant future prospects with regards to promotional strategies for Red Bull?
3. How has globalisation globalization driven a change in customer expectations in the soft drink industry?
4. What trends since the 20th century caused due to globalisation globalization has have negatively impacted the product and brand Red Bull?
5. How has Red Bull overcome any obstacles caused via by globalisation globalization with regards toconcerning customer expectations since the 20th century?
1.7. Research Outline
This research is aimed at exploring the extent to which globalisation globalization has impacted the core marketing principles of Red Bull with regards to the change of time, technology, socio – -cultural interconnectedness leading to an overall evolution of globalisation globalization across time from the 20th century to the 21st century and as a result, which could lead to a change in the effectiveness of the product and promotional strategies as a response to customer expectation adopted by Red Bull with the future prospect.
To do this, the reports starts with a research proposal that outlines a detailed plan. This plan induces aims, objectives, reasons for choosing the research project, l. Literature sources searched, Gantt chart to show activities and timescales, the philosophical standpoint of the researcher with a pragmatic approach, methodologies of conducting primary research, and research ethics approval form. The research then demonstrates a Critical Literature Review that entails the introduction of literature in terms of the history of globalisationglobalization; then it moves on to assess the evolution of globalisationglobalization. Lastly, to address the research question more clearly, the literature review discusses the impact of globalisation globalization on marketing and marketing strategies. Next, the research proceeds to collect primary data using a questionnaire. Using the data collected from the questionnaire, a semi semi-structured interview format was constructed to interview a marketing professional. After this, the research adopts a timeline from a secondary source as an extension of cCritical lLiterature rReview and critically analyses the marketing strategies of Red Bull since the 20th century using quantitative data collected from questionnaires and qualitative data collected from interviews. In doing so, the research was able to provide an answer to the aforementioned research question, simultaneously providing recommendations for Red Bull. Lastly, this report conducts a reflection in order to account for any biases and researcher reflexivity so that this report becomes more reliable.
2.0. Literature Review
2.0. Introduction to Literature
Globalization has caused remarkable changes to business practices all over the world. Globalization considers the practice of increasing social and cultural interconnectedness, political autonomy, in addition to economic, financial, and market assimilations that are steered by progressions in communication and transportation know-hows and trade liberalization (Orozco, 2002). In turn, globalization has led to major changes in business conduct and marketing activities in companies across the globe. Moreover, these changes have given rise to impacts in marketing activities and marketing strategies of firms across the globe (Mann and Gotz, 2006). Although the literature cited above have has been written by not more than two authors which who suggests that there could have been possible errors when accounting for researcher reflexivity, the book was edited and published by a reliable source called “Greenwood publishing group”. .” While the contents within this book may be historic as it was written before the past decade, it is essential to understand the prehistoric setting in order to apply the concept of globalisation globalization in the contemporary setting with modern definitions as follows.
In the present-day setting, the notion of globalization has come to be one of the most significant ones impact the operations of numerous organizations across the world. The transformations taking place in the society, encompassing the alterations in terms of technology and communication, have given rise to the modification of business and marketing practices and strategies, with the objective of dealingto deal with such changes (Pride and Ferrell, 2016). The 7th edition of this book was used, which suggests this source is fairly relevant and strives to stay up to date. Many concepts within this literature seems to be an improvement of the prehistoric literature. Since no independent researches with in the book was were cited, and owing to the reason that the book takes a comprehensive approach as the book cites over 500 sources of literature, the inferences made from this book could be generalised generalized in the contemporary setting.
Furthermore, this literature could be argued as a very relevant source in academia because it was published by Cengage Learning, who has operates operated in 20 different countries providing educational content. Bearing this in mind, multinational companies incessantly develop and enhance their marketing programs and initiatives to meet the standards of consumers and provide them with satisfactory products and servers across national boundaries (Dibb et al., 2005). Since this literature is written by 4 authorsfour authors write this literature, it considers a balanced approach as it accounts for possible biases, reflexivity via peer review. This improves the credibility of this source. Although this is a relatively old piece of work, this literature is known to have been cited in over 1000 articles (googlescholar.com, 2019, non-paginated), which suggests that this source is reliable as well. Page number 850 from this literature considers to taketaking a global approach as it cites multiple researches, improving the generalisability. Furthermore, there are several editions of the same literature that were released after this book, h. However, for the purpose of this assignment, the 5th edition had the most access comparatively.
2.1. Theoretical Framework
A comprehensive review of contemporary literature on marketing strategy identifies two pertinent theoretical underpinnings; 4P marketing theory and the 4C marketing theory. In general, these two theories emphasize either a product cantered strategy or a customer customer-centered strategy.
2.1.1. 4P Marketing Theory
Known also as the Marketing Mix Theory, The 4P marketing theory was put forward by Professor Jerome McCarthy (1964) as an approach to making marketing plans actionable. The conceptual framework of the 4P theory entails an optimal combination of product, price, place, promotion. According to Dang (2015), the product is the foremost and pivotal marketing element. Product is defined as the actual product or service on offer for acquisition by the customer. Price is defined classified as the amount charged for a product or service or a product. The price elements generate income, h. Hence it’s a key competitive tool. In establishing the price, a brand needs to maximize profits, expand the sales and market share, and stand out from the competitors. It’s also one of the flexible marketing mix elements enabling adaption to constant changes. The place, also referred to as a distribution, is defined as the process and methods through which the products or services reach customers. This element entails actions related to the shipping of goods and services from producer to consumer. Promotion is a n element of variable in the marketing mix that entails product information dissemination. Promotion entails actions that seek to establish a smoother relationship between the brand and the consumer.
Scholars have adapted adopted the 4P theory to include other Ps with Booms and Bitner (1980) incorporating new 3Ps-Process, participants, physical evidence to the marketing mix conceptual framework. In addition to Booms and Bitner (1980), Goldsmith (1999) proposed personalization as an addition to the marketing mix conceptual framework. Kent and Berman Brown, (2006) argue that since the additional Ps do not promote converge in the application, the 4Ps remain the primary marketing mix. The 4P theory has been critiqued its production-oriented definition of marketing, which enterprises from cultivating a long-term relationship with customers (Gummesson, 1999; Hyman,2002; Grönroos, 2004). The theory emphasis on one-to-more communications between customers and enterprises that limits the marketing strategy from tailored products addressing the differences in customers. The 4P’s theory considers customers as passive elements of marketing, h. Hence it doesn’t promote the personification of marketing activities.
2.1.2. 4C Marketing Theory
Schultz, Tannenbaum, and Lauterborn, (1993) proposed the customer customer-centric 4 Cs classification as a response to the changing paradigm that shifts in the marketing strategies with the focus to the customer relational viewpoint. The conceptual framework of the 4C theory entails an optimal combination of consumer, cost, convenience, and communication strategies. The theory proposes a transformation from a product product-centric 4Ps strategy to a customer customer-centric 4Cs strategy. This transformation is accomplished by converting the product into customer solution, price into a cost to the customer, place into convenience, and promotion into communication, or the 4C’s (Chaffey and Smith, 2017). The 4C framework advocates for consumer’s perspective in marketing and proposes an adaption of the 4Ps into 4Cs by converting products to customer solutions, place into convenience, price into a cost to the customer, and promotion into communication.
The theory advocates that brands need to integrate the suggestions of customers to meet their demands. The customer customer-centric approach holds that customer demand satisfaction, customer satisfaction improvement, customer purchase costs reduction, convenience in the process of purchase as the top priority of a winning marketing strategy. The 4C theory holds that effective marketing communication as the center of marketing strategy. Therefore, the strategy enables the brand to understand its audience prior tobefore developing a new product.
2.2. Evolution of globalisation
Globalization considers the increasingly associations of culture, persons, and economic activity. As a whole, it encompasses the international distribution of the production of goods and services by means ofusing reducing or eradicating barriers to international trade such as import quotas, tariffs as well as import quotas (Fischer, 2003). This review amalgamates is an amalgamation of a personal longitudinal study and a review of multiple researches. The literature often uses words such as “I” and “me” that portrays a biased approach to assessing globalisationglobalization. Furthermore, this work was not peer peer-reviewed nor edited, which suggests that this source lacks credibility. However, the reviewer uses both quantitative and qualitative data to draw out a meaningful conclusion. Therefore, this researcher has a pragmatic approach which improves the reliability of the review. Since most of the personal claims made by the researcher is are backed up with an empirical research that travels across the timelines of the 19th century, this review condenses the evolution of globalisation in a compact mannermpactly condenses the evolution of globalization and hence was used for the purpose of this report, ignoring the fact that it was written in 2003.
The evolution of globalization is linked to the modern era that is deemed to be its foundation. In this epoch, extensive development took place in the field of infrastructure and connectivity. This has resulted to in progressively more interaction between countries and the sharing of notions and ideas and culture (Gander, 2017, Pg: 168). This is a modern source which that makes the conclusions up to date with the contemporary setting as the literature considers the scenario in an ever so changing environment. However, the chapter used had only cited a single source from the institute for development and international relations. While the cited source can be as a reliable source, the conclusions are made from a single point of view which could decrease the credibility of the work however the publisher, “Taylor and Francis Group” is known for publishing “quality peer – -reviewed journals” (taylorandfrancis.com, 2019, non – paginated) which justifies the credibility of the literature. The industrial revolution during the 19th century was a key epoch in the evolution of globalization. Imperatively, owing to the industrial revolution, there was a major rise in the quality and quantity of the products. This resulted in greater exports and enhanced trade and business associations (Ferreira, Pessoa, and Dos Santos, 2013). This research is fairly modern and can be applied to the contemporary setting. The research methodology uses qualitative data. The researchers hence use a positivist approach. Although, it is very difficult for a positivist to explain social phenomena such as globalisation globalization as it is notoriously hard to mould the concept of globalisation globalization into numbers. However, in this case, the researchers were able to successfully establish solid “t” values and devise certain formula thereon that directly proves the claim that the researchers made as a positivist approach establishes a cause and effect relationship. In this case, the cause was globalisationglobalization, and the effect were was trade. This research could be replicated under the same conditions and therefore is generalisablegeneralizable. The research is reliable as it cites over 30 relevant sources. The source is credible because it uses a positivist approach.
The period of pre-globalization perchance came to a culmination subsequent toafter the First World War. In From a modern perspective, globalization came into manifestation after the Second World War. A key aspect that brought this about is the objective of leaders of the world to break down the different borders for cultivating trade associations between countries. Furthermore, it was at this particular point in time that numerous other nations attained their independence and begun having their own economic systems and instituted trade relations with the rest of the globe (Horowitz, 2004). Although this literature is an old source and could be deemed out of date, this research only comments about world war one which was a prehistoric event and, therefore, relevant in this context. The journal uses constructivism as it uses qualitative data. However, while this interpretivist interpretive approach does not establish a cause and effect relationship, it critically examines the WW1 in much greater detail and in context to globalisationglobalization. .
Furthermore, this journal cites over 60 credible sources that backs up all the claims which improves the credibility of the research. This research is published by the sage publication, which is a reliable publication, h. However, the contents within this research can never be replicated as WW1 was an event that will never repeat. T and therefore, no comments can be made regarding the generalisability of this research.
Globalization in the 21st century has facilitated a contemporary form of globalization helped by the speed and scope of global assimilation emanating from unparalleled advancements and reduction in the cost of technology, communications, science, industry, and transportation. In the present day, markets have grown to be more intertwined, and the process has been made more efficacious by the ability to create products whose constituents are manufactured in various locations across the globe (McLellan, 2005). Furthermore, the capability to move information and products in a simple mannersimply and cost-effectively from one nation to another and locate the manufacturing process where labour and work practices are less costly has transformed the production pattern and consumption as well. Globalization in the 21st century is embodied by enhanced technology in transportation and telecommunications, the grown growth of multinational corporations, and the movement of people and capital (Nederveen Pieterse, 2012). This source is a peer peer-reviewed journal which that suggests that the researcher has accounted for all their biases and taken that into considerationconsidered that before making any recommendations which that makes this paper reliable. This literature was published by Wiley Publication, which has been established about 200 years ago hence making this literature credible. Lastly, the researchers use a pragmatic approach as it amalgamates positivism to establish cause and effect relationship and interpretivism to justify meaningful conclusions drawn from quantitative data and other literatures accordingly. This, to a certain extent, improves the generalisability of this research as the quantitative part of this research can be replicated.
2.3. Impact of globalisation globalization on Marketing and Marketing Strategies.
Globalization has increased radically in the 21st century. One of the major impacts of globalization is that companies have been able to expand their business operations beyond local borders in the endeavour for new consumers, greater revenues, and new sources of capital. Globalization in the business realm significantly impacts a company’s marketing, especially its advertising strategies and the manner in whichhow messages are conveyed or delivered to consumers (Kotabe and Helsen, 2014). Globalization largely affects marketing in terms of the investment necessitated. To begin with, companies have to incur additional costs in the production of advertisements in numerous nations. Secondly, the acquisition of both advertising times and spaces for ads for products and services in numerous nations has become costly. Furthermore, international advertising is progressively more difficult, necessitates more time and determination in marketing strategy, which is costly (Lee and Carter, 2011). The books cited above are fairly recent and relevant to the contemporary marketing practisespractices. .
Moreover, both the literature have has been edited and published by trustworthy publishers, which suggestss that the literature is credible. The contents within this literature amalgamates a mixed mixed-method as the authors quote a multitude of independent studies that are both: quantitative and qualitative to justify the points that they make. Additionally, both the books have 2 two authors which who suggests that the literature is not from a single point of view, which advocates that this literature is reliable. Overall within this literature, the authors have explored globalisation globalization and marketing in several diverse demographics such as Hongkong, Singapore, USA, India, China, UK, Spain, etc., which makes the recommendations generalisablegeneralizable.
Globalization has a significant impact on international marketing activities, owing to the reason that it enforces firms to make their marketing activities considerably more culturally diverse and efficaciousproductive. Basically, gGlobalization is impelling urging firms to market their products and services to international consumers in a wide range of various languages in addition to contexts that respect the cultural beliefs of the consumers. Several instances of information faux pas has have come about when messages in advertisements end up getting lost in translation (Kokemuller, 2018). This is the reason as to why corporations more often than not utilize local people in every market who speak and understand the language. Imperatively, to sway consumers with advertising, it is imperative to be knowledgeable of the culture and values inherent in a specific market. Therefore, as globalization has made it possible for companies to expand their businesses, it has also forced them to ensure their marketing activities and strategies are respectful of the cultures and properly understood by the consumers (Kokemuller, 2018). This source is a very modern sourcevery modern and can be widely applied to the contemporary business setting. Although it is published in a website which that could potentially damage the reliability of the information, the author of this source is Neil Kokemuller, who is known to have published a book and who is a well-respected content media developer, which improves the credibility of the information. However, the source fails to cite literature to back up the claims made. .
Furthermore, the source is from a single point of view and has not undergone any sort of edit or peer review. This downgrades the validity of the source and showsn a certain unaccounted bias. However, the source was used as it fits well with the point that is being made, and it connects certain gaps.
Numerous organizations and benefits have benefited from globalization due to the fact thatsince they are able tocan take part in and lay emphasis on international marketing. This is in line with the aspiration for greater sales, revenues, profits, and acknowledgment from consumers. In additionAlso, international marketing facilitates business prospects for these organizations for further development and enhancement, in terms of their strategies, products, and services (Lamb, Hair and McDaniel, 2011). Through globalization, firms gain accessibility to international markets that offer massive business prospects for companies with a product or service that is largely in demand. Therefore, through marketing, companies are forced to gain information and become proficient in cultural adaptation, newness, and being is suitable and apply the right marketing strategies. The literature cited above is in between moderately new and old. However, its contents are still applicable to the contemporary business setting. Although the source mentions several key classic studies such as Maslow’s Pyramid and consumer behaviour model, it does not cite sufficient sources to justify all the claims made, which suggestss that the source is fairly reliable. However, there are 3 authors which three authors recommends that the work is not from a single point of view. Furthermore, this book has been published by Cengage Learning (as discussed above), which improves the credibility of the source. In addition to this, since the authors to classical studies that could be generalised generalized as a foundation to the claims made, it could be stated that this literature is overall generalisablegeneralizable.
Globalization has significantly impacted marketing strategies employed by companies across the globe. The development and implementation of a marketing strategy is a huge undertaking for global corporations. A key strategic predicament is whether to utilize an international, universal communication approach or to personalize o tailor market advertising to every individual market. Progressively more companies utilize a multi-domestic or global approach since a small number of products have actually universal use and message context. Globalization also impacts marketing practices in terms of branding. This is the utilization of promotions to portray a picture for the firm and the products. Globalization impels corporations to make a decisiondecide as to whether it is sensible to create a consistent international brand, or to develop various brand images for every nation (Agarwal and Wu, 2018). The book cited above is very recent, which makes it highly applicable to the contemporary marketing practisespractices. .
Moreover, the literature has been edited and published by springer Springer publishers which who makes the contents within the book credible. In addition to this, the author cites work across a mixed mixed-method owing to the reason that, within this literature, there are vast amounts of independent studies that are both: quantitative and qualitative to justify all conclusions made. Furthermore, the book has 2 two authors which who suggests that the literature is not from a single point of view, which advocates that this literature is reliable. Overall within this literature, the authors have explored globalisation globalization and marketing in several diverse demographics, which makes the findings generalisablegeneralizable.
Globalization has facilitated the evolution of marketing and impacts the strategies used by corporations. Imperatively, marketing strategies are started domestically in the central offices of a firm and thereafter after that shift international by extension, more often the than not, for the reason that the company decides to export the products or services rendered. Subsequent toAfter going international, the companies are forced to alter their marketing mixes and adapt to multinational strategies. In additionAlso, the global markets can be opportunistic but, at the same time, largely unpredictable. This necessitates well- thought out strategies. This is for the reason that when marketing globally, the company increases the number of players into the mix. In this regard, the inference of global marketing is that these strategies must provide for susceptible international markets and also be at par with acquisition and logical prospects that impact the marketing mix (Hosmer, 2018). This source is a very modern sourcevery modern and can be applied to the current business environment at every stage. However, this information was obtained from a website, which means that the work has no academic standards. Additionally, the work does not go through a review process. These 2 two factors combined damages the credibility of the source. .
Furthermore, the website does not cite any published authors as evidence to back up any of the claims made, which damages the reliability of the information. In addition to this, this literature cannot be generalised generalized as it does not employ any research methodology for the statements made. However, the statements made by his sources aligns well with modern modern-day business practises practices and is similar to reliable sources. Lastly, since it fits well within the context of this report, the source was used.
Globalization has also facilitated the diffusion and adoption of technology across borders. This has impacted marketing strategies as it has forced companies to incorporate technological aspects such as social media channels and onmi-channels into their marketing strategies. Cook (2014) outlines that the present-day consumers have accessibility to a more extensive range of technologies compared to generations in the past, with numerous consumer segments having being brought up with or largely swayed by technology. Altering lifestyles imply that consumers in the contemporary wish to conduct the purchasing process at a period and time that is suitable to their individual needs, utilizing technology that they actually have. What is more, this is an effective strategy for the reason that research also demonstrates that, in the event thatf these consumer segments are completely engaged by means ofusing online and social media channels, they can end up being very loyal consumers. Cook (2014) delineates that behaviourally, these consumer segments insist on having a suitable and gratifying setting in which to conduct product research at a place and time that is suitable to them. This source is fairly recent and is still applicable to the contemporary business setting. The journal employs a mixed mixed-method approach by using quantitative data to establish cause and effect relationships and then following up by using qualitative data to apply the findings to marketing and globalisationglobalization. This pragmatic approach is supplemented by the fact that this is a peer peer-reviewed journal which that advocates that the author has accounted for their biases. All of this combined makes this source very reliable. Furthermore, this journal was published by Icono 14, which makes the work very credible. Lastly, the journal follows a thorough methodology, and if replicated under the same circumstances, would lead the researcher to find similar results, making this literature generalisablegeneralizable.
3.0. Research Methodology
3.0. Philosophical Standpoint
Saunders, Lewis, and Thornhill (2009) define research philosophy as knowledge development and the nature of the knowledge. Research philosophy is a representation of the researcher’s implicit or explicit philosophical assumptions about the nature of the world, which Burrell and Morgan (1979) note that the assumptions guide the objectivity of research. tThe objectivity of research. The philosophical assumption about research includes ontological assumptions, epistemological perspective, and methodological perspective (Burrell and Morgan 1979).
3.0.1. Ontology
According to Saunders, Lewis, and Thornhill, (2009), ontology is the study of reality and enables differentiation of perception and reality. Ontological assumptions shape the researcher's view of the research objects and entail two contrasting views, objectivism and subjectivism of reality. The objectivism view incorporates the assumptions of natural science and holds that the social world as a natural and concrete world existing independent of physical world human appreciation of cognition. Ontologically, objectivism adopts realism implying that social entities are similar to the physical entities of the natural world. An objectivist approach detaches research from the researcher’s values and holds that values contribute to bias in findings. Objectivist seeks to uncover the discover universal laws and facts governing social behavior. Incorporating the assumption of humanities and arts, the subjectivism view asserts that social reality is the product of social phenomenon orchestrated by social actors. Ontologically, Subjectivism adopts nominalism, implying that social reality is constructed through social interaction, and social phenomena are in a constant state of change. Subjectivists seek to understand the divergent narratives and opinions of a social phenomenon, implying that the researcher cannot detach research from individual values while analyzing data (Burrell and Morgan (1979).
The ontological standpoint of this research is outlined by in the rationale section. The ontological standpoint is crucial to this research because identifying it will assist the researcher to distinguishin distinguishing the researches reality from the social and subjective reality (Sanders. M et al. 2009).
3.1.2. Epistemology
Epistemology is the philosophical perspective assumptions about human knowledge (Saunders, Lewis and Thornhill, 2009) Epistemology concerns what constitutes, valid legitimate and knowledge acceptable, and the approaches of communicating the knowledge. Unlike the ontology perspective that seeks to uncover the knowledge, the epistemology perspective refers to the how of acquiring the knowledge. There are two contrasting epistemology perspective; positivism and interpretivism. A positivism approach holds the view that social phenomena can be studied as facts by establishing relationships and regularities. A positivist approach entails gaining new insights and knowledge by developing prediction tools and testing hypotheses that would then evolve into a theory and generalization of results. A central tenet of positivism is that researchers undertake an objective analysis and scientific perspective when observing social behavior. Interpretivist/constructivist perspective, on the other hand, perceives the world as a wider social system that is constructed, interpreted, and experienced by the social actors. Unlike the positivist perspective that seeks to generalize a phenomenon to the population, the interpretivist interpretive perspective seeks to understand a particular phenomenon, h. Hence it’s unobtrusive, non-manipulative, or non-controlling real-world situations (Burrell and Morgan 1979).
It is the researches researcher's view regarding what constitutes and fits in as acceptable knowledge (IBID). The epistemological standpoint of this research acknowledges that there has been a drastic evolution of globalisation globalization since the 20th century because the Globalization considers the increasingly associations of culture, persons, and economic activity. As a whole, it encompasses the international distribution of the production of goods and services by means ofthrough reducing or eradicating barriers to international trade such as import quotas, tariffs as well as import quotas (Fischer, 2003). Globalization in the 21st century is embodied by enhanced technology in transportation and telecommunications, the grown growth of multinational corporations, and the movement of people and capital (Nederveen Pieterse, 2012).
Identifying the epistemology allows the researcher to the true truth from the false and hence accounts for possible biases, conducting reflexivity and improve the reliability of the report.
3.1.3. Research Paradigm
The research paradigm enables clarity in the inquiry structure and the methodology choice. The various paradigms discussed in the context of business literature are Realist and Pragmatism, positivism, interpretivism/constructivism A positivism paradigm asserts that there exists a single truth about a social phenomenon and that social reality is objective and external. Positivists adopt quantitative research methods, and by using an ample sample size, they generalize their outcome to the population. The underlying approach of positivism is establishing causal relationships in research and adopting the fundamental laws. A positivist perspective calls for objective as opposed to subjective research methods (Saunders, Lewis and Thornhill, 2009).
An interpretivism/constructivism constructivist perspective asserts reality is socially constructed, and the researcher, research objects, or methods are interlinked. The interpretivism approach implies that the process of research is value-laden and reflects the background, skills, values, beliefs, and interests of the researcher. Interpretivist adopts qualitative research methods and aims at developing theories as opposed to resulting generalization. The interpretivist interpretive posit that social phenomena are in constant revision, hence establishing a causal-effect relationship is pointless and its value-adding to understand a social phenomenon in their contextual settings. G, given that it’s impossible to disaggregate the researcher’s values and beliefs from the research, removing bias, and scientific objectivity is impossible.
The principle underlying the realism perspective is that there is no perfection in scientific methods implying the need for an open mind, adoption of new different methods while undertaking research (Saunders, Lewis and Thornhill, 2009). According to realists, there exists no fixed causal impact of social events due to their fragility in nature, calling for contextual settings of observed social phenomenon. The realist researcher holds the position that there exist no moderating factors that influence the relationships of social events. Realism focuses on understanding and explaining social phenomenon as opposed to prediction. The realist approach, therefore, results in multiple interpretations for several unpredictable contexts.
A pragmatism paradigm holds the view that positivism and interpretivism are both valid philosophical assumptions, h. Hence a researcher can adopt one or both approaches while exploring a social phenomenon. Pragmatism argues that real decisions are made in the context of practical uncertainty. A pragmatist position explores theories, ideas, concepts, hypothesis, and research findings as instruments of actions or thoughts in specific A pragmatism perspective advocates for the use of a method or methods that allow for reliable, credible and relevant data to be collected to inform research (Kelemen and Rumens 2008).
Pragmatism is an approach that amalgamates interpretivism and positivism in order to best answer the research question (Sanders. M et al. 2009). For this reason, this research uses a pragmatic approach since it collects both quantitative and qualitative data across primary and secondary researches, as outlined below.
3.1. Research Method: Mixed
This research used a mixed mixed-method approach. The methodology included collecting, analyzing, and integrating quantitative and qualitative data across the research. Hence this research used a pragmatic approach as it it amalgamates interpretivism and positivism in order to best answer the research question (Sanders. M et al. 2009). “To what extent does globalization impact marketing strategies of Red bull since the 20th Century?”. The pragmatism is explicitly seen through the mixed methodology outlined below as it incorporates both quantitative and qualitative data across primary researches delineated below and secondary research via the critical literature review. The pragmatic approach was used instead of a positivist or an interpretivist interpretive approach because it well in hand with the mixed method. Furthermore, the philosophical standpoints, including the ontology and the epistemology, remains the same as mentioned in the research proposal because most of the procedure was in the same lines of what was earlier discussed in the proposal.
The reason for using a pragmatic approach and a mixed method is that, the evaluation can be viewed from multiple angles. Since the weakness of qualitative data are the strengths of quantitative data and vice versa, the researcher is allowed to present a more comprehensive and balanced argument relative to using a single method alone (Eaton. D, Ihuah. P, 2013). However, a pragmatic approach is more time consuming, expensive, complex Jiboye (2004). Although a pragmatic approach could use much many more resources, A positivist approach alone would only deal with numbers and hence becomes inflexible in nature(Eaton. D, Ihuah. P, 2013). Whereas an interpretivist interpretive approach alone tends to involve a lot of emotion, bias, personal involvement, hence the reliability can be undermined (IBID). Therefore a pragmatic approach combines the accuracy of quantitative data and the ecological validity of qualitative data, allowing the research to present a balances balanced argument, improving its overall reliability, which will ultimately assist the researcher to meetin meeting the aims and objectives.
The primary research commenced with by distributing questionnaires (Appendix 1). T and then a semi semi-structured interview (Appendix 2) was conducted with a marketing professional that has already done a dissertation on Red Bull and marketing. It was done in this order because the researcher collected perspectives of the general population, which was not in the epistemology or the ontology of the researcher. The researcher believed that Red Bull (RB) had a thorough corporate social responsibility (CSR) however, Respondent 11 (Attached as appendix 3) of the questionnaire pointed out that RB has had an issue in the past with their slogan “Red Bull gives you wings” and then using this new information obtained, the research moved to collecting and collating secondary data about “the slogan issue” (Quoted by respondent 11 on page 5) as outlined on Appendix 4. This secondary data (Appendix 4) was shown to the interviewee during the semi semi-structured interview as outlined on the question, “What are your comments on this ?”. The word “this” referred to Appendix 4. .
Moreover, the questionnaire had one-word answers and multiple-choice questions on sections “Globalisation” and “Red Bull” this was an effective way to receive the majoritarian views on these subjects, h. However, these questions were repeated in detail during the semi semi-structured interview to get an in-depth analysis and to verify if there was a difference of opinion. Therefore, the sequence of conducting a athe questionnaire at the begging and then moving on to the interview could be justified, since a questionnaire in this case, in this case, gave a broad perspective of matters regarding globalisation globalization in a quantitative form and the validity of this information was scrutinised scrutinized by conducting a qualitative data collection method via the semi semi-structured interview as it repeats question from the questionnaire by adding “To what extent” in order to collect rich data for the purpose of this research.
The primary research methods are as follows;
3.2. Data Collection Methods
The international marketing research process framework entails setting the research objective, developing the research design, data collection, and data analysis (Omalaja, Eruola, and College, 2011). A systematic analysis of literature on marketing strategies by (Omalaja, Eruola, and College, 2011) identified surveys as the popular model of data collection methods in marketing literate. Other methods of data collection identified through the meta-analysis include secondary data analysis, case studies, content analysis, experiment and modeling, and interviews.
3.2.1. Questionnaire
The primary data collection tool adopted for this study was a questionnaire. Using a questionnaire, the researcher saved time, and the data was easy to process (Le.ac.uk, 2018, non non-paginated). However, owing to the reason that a questionnaire is not flexible in nature, a comprehensive understanding could not be made (IBID). This is shown in this questionnaire, as most of the answers are in a multiple multiple-choice format. Although the answers are quantifiable, every sample had a unique background, and a questionnaire does not account for the impact of bias to on the answer (IBID). This was explicitly seen as the participants ranged were from 6 different nationalities. There could have been a lot of cultural and social implications that impacted the reliability of the answer as well (Bandura, 2018 and Bartlett 1932). Owing to this, although a questionnaire can sometimes lack validity as there is no accurate way to measure its reliability, a questionnaire can be replicated by anyone, with a limited affect effect to on its reliability (Le.ac.uk, 2018, non non-paginated).
Although, the sample size was only 20 which is the a relatively small sample size for a research project, the respondents were from different nationalities, which directly relates to globalisation globalization as it would give the responses from the questionnaire a more comprehensive global approach, which is in direct line with answering the research question. However, there was a possible risk of participants misunderstanding the question and answering it out of context (IBID). One such example was that the participants were confused with the question “Rank in order of preference. (1 - 5, 5 being the highest preference rating, and 1 one being the least)” attached in Appendix 5. This was confusing for the participants because normally ranking 1st is perceived the best, and 5 five is the least. Also, in addition to this, the participants got even more confused when they were not allowed to select 2 two brands in the same rank. This part was not made clear to the participants. However, a questionnaire can be analysed analyzed more scientifically and objectively than other forms of research, such as focus groups and observation(Le.ac.uk, 2018, non non-paginated).
However, this questionnaire had a minute error for the first 13 respondents because, for the section “At an average, for the past 5 five years, how many cans of Red Bulls did you buy/ consume ?” The options that was were initially put in google forms was were only for the years 2015, 2016, and 2019 as attached in Appendix 6. The researcher missed out to put in the years 2017 and 2018. Although , the researcher then made the edit and added these 2 two years only after 13 responses, it would not crucially impact the findings because only the relative percentages would be taken for analysis and discussion (for further analysis refer to Appendix 9). It is therefore relatively easier for the researcher to correct a mistake in a questionnaire as opposed to other methods of data collection; hence it could be justifies justified that questionnaire was an appropriate means of data collection for this project. At a push, since since the drawbacks of the questionnaire includes the inability of the researcher to gather rich data (Le.ac.uk, 2018, non non-paginated), this research was complemented with a semi semi-structured interview.
3.3.2. Semi – -Structured Interview
Interview a professional that has already done a dissertation on RB and marketing. The interview was semi semi-structured. Doing a semi semi-structured interview allowed the interviewer to be prepared and appear competent during the interview while allowing the interviewee the freedom to express their views in their own terms (Stefanie Keller and Katharina Conradin, 2018, non non-paginated). Since the participant was an expert on this topic, there are high chances that the interviewee is more knowledgable than the researcher in this area. Therefore, the interviewee needs to be given the freedom of expression, whilst while the researcher should just guide and moderate the discussion. However, in order to make a general conclusion, many number of people have to be interviewed. This can be time time-consuming and resource resource-intensive (IBID). This was precisely the reason why a questionnaire was done. Since the interview and questionnaire compliment complement each other, and at some points have various differences, this research encompasses a mixed mixed-method approach with a justified rationale. One of those notable difference was a flaw in the prep of the interview questions. The preparation must be carefully planned to notnot to make the questions prescriptive or leading (IBID). This requires a certain amount of skill. Appendix 7 shows the researcher's notes during the interview.
Although in some parts, the questions were perceived to be leading, it can be justified due to the fact thatsince the in-depth discussion went out of context at certain points of time. Furthermore, the prescriptive customary format of this semi semi-structured interview was deemed to be ineffective towards the end of the interview because the interviewee states that the dissertation “does not cover CSR” and that “I would like to research more about that” so the entire aspect on CSR discussion outlined on the interview questions was just based on personal opinion and not professional knowledge. Although the semi semi-structured interview is more or less stuck to the broad guidelines of the lines and stayed within the scope of this topic, the the participant stated that “This is way more formal than I expected it to” which shows that the participant could have been made more comfortable at the start. This also suggests that the participant could have been hesitant because the participant saw the audio recording and the researcher with a pen and a paper. However, the participant was guaranteed his safety via the informed consent (Appendix 8). Although after the first minute the participant seemed fine as the interviewee was given the platform to take the discussion in the direction the interviewee wanted, which is again one of the benefits of using a semi semi-structured interview as it more or less stuck to the broad guidelines and stayed within the scope of this topic.
Although the interviewer has a potential of over or under analyzing the data (Stefanie Keller and Katharina Conradin, 2018, non non-paginated), semi semi-structured interviews can provide reliable and comparable qualitative data (IBID). Additionally, a semi semi-structured interview owing to the fact that it confirms what is already known but also provides the opportunity for learninglearning opportunity. Often the information obtained from semi-structured interviews will provide not just answers, but the reasons for the answers (IBID). This is the reason why many questions from the questionnaire was were repeated in the interview by stating, “to what extent” to extrapolate rich and comprehensive data. Lastly, the research uses a semi -structured interviews as opposed to a focus group discussion because, there is a constraint of time and resources to do both these methods and s. Since semi semi-structured interviews can be directed to a certain extent, it is a better fit for this research.
3.3. Research validity and reliability
Reliability and validity tests are critical in ensuring the quality of any conducted research (Saunders et al., .2016). Internal validity implies that the research is devoid of the researcher’s bias and that the findings are a true representation of the research (Pannucci and Wilkins, 2010). Comprehensive coverage of the research questions in the questionnaire ensured the internal validity of the research. Pannucci and Wilkins, 2010) notes that external validity implies that a research finding is generalizable to the population. To ensure external validity, the current study interviewed twenty respondents in different geographical locations worldwide. To ensure the reliability of the study findings was adopted in the current study. Data triangulation implies the use of multiple case studies, which is realized through by interviewing multiple persons (Yin 2014).
4. EMPIRICAL FINDINGS AND ANALYSIS
The empirical findings entail a synthesis of primary data collected through a questionnaire and literature review. The results obtained from the secondary data has have been processed and condensed into timelines, tables, graphs, and charts.
4.1. Red Bull Overview
Introduced in the Australian market in 1987 by the Red Bull GmbH under the leadership of Austrian entrepreneur Dietrich Mateschitz, Red Bull is an energy drink with a worldwide presence. As of July 2020, Red Bull had a Brand Value of $11.1B emerging #69 on the Forbes List of World’s Most Valuable Brand 2020 and #2015 in America’s Best Midsize Employers 20`9. It’s the leading share of the global energy drink market with a global reach in 171 countries and an average of 7.5 billion calls sold in 2019, increasing by 10.4 percent compared to 2018. Red bull demand and market share have grown over the years since inception reporting $4.8billion net sales in 2008 and recording a 7.9 percent growth of net sales compared with 2007. Whereas in the US, Red Bull enjoys 47 percent of the market share of energy drinks, ; it commands up to 90 percent in over 100 countries worldwide. The product has over direct 100 competitors in the market such as Rock Star Energy, 5-hour energy drink, among others. The red bull target market includes young people of the age bracket 18-35 who have active lifestyles, lead a social nightlife, or enjoy extreme sports. Worldwide, Red Bull is a popular energy drink among top athletes, university students, busy professionals, and travelers on long trips. There are four red bull products in the market; Red Bull Energy Drink, Red Bull Zero Calories, Red Bull Sugarfree, and Flavoured Red Bull Editions, with each having a distinguishing motto. Red bull is distributed mainly ion convenience stores, grocery stores, gas stations, supercenter stores in the US (Red Bull, 2020).
4.2. Descriptive Analysis
20 Twenty respondents replied to the questionnaire are distrusted from five countries, Indian (70%), Thailand (15%), South Africa (5%), America (5%), and Yemen (5%). 100 One hundred per cent of the respondents reported having heard of Red Bull. A significant proportion of the respondents identified that they had first heard about Red Bull from adverts. 65 percent of the respondents replied that they were aware of Red Bull’s Slogan
4.3. Timeline
A timeline approach is adopted in the current study to demonstrates the evolution of Red Bull since the 20th Century. The analysis of the major achievement of Red Bull identifies the marketing strategy as a key contributing factor. This is an extension to the critical literature review, wherein this research in encompassing results gathered across secondary data collection (Red Bull, 2020). Furthermore, this research incorporates a timeline to coherently and logically communicate the outcomes of the secondary research to the intended audience, demonstrating to meet the following set objectives;
1. “To combine and contrast the acquired knowledge with practical examples from Red Bull.” As aforementioned.
2. “To classify and develop information gathering skills.” The classification occurs by constructing a timeline using the information gathered from secondary sources.
3. “To demonstrate the ability of extrapolatingto extrapolate and collating specific data in relation toconcerning the research question.” The specific data that is collected is fromorm the internet, and the collation to the research question occurs via this timeline because it directly addresses the question of RB and marketing “since the 20th century”.
The timeline is taken from a secondary source (energydrink-uk.redbull.com , n.d. , 2019, non non-paginated).
4.4. Critical Analysis of Timeline using Primary Data
1. In 1987 Red Bull was not just created as a product but also as a “unique marketing concept” (Red Bull, 2020). This is reinforced due to the evidence gathered from collecting primary data via by conducting the interview (Appendix 2). The interviewee did a dissertation on marketing and RB, which aimed at finding the “bandwagon effect” on RB (Appendix 2). What this means is that whether people buy RB because of the “taste” and the “product” or whether “customers buy RB” because of “trends or behaviours” (IBID). This was exactly the concept of the creation of RB, as explained by the timeline, i. It shouldn’t be considered just as an energy drink but as a phenomenon or a lifestyle. Understanding the vision of the founder is very important for an organisation organization as large as RB is because,, with this, it can be stated that unique marketing to reach a global audience is one of the first first-ever business objectives designed RB. This is extremely important for RB in the future because;
a.
2. Only 20% of the sample is not interested in working for RB in the future. 25% of the sample is definite that they want to work for RB and, the majority of the sample is not sure whether they want to work for RB. One of the reasons to want to work for RB is “Am a marketing professional and would like to work with them”. .” Hence it is recommended to RB that they give constant appraisals, and learning and development to their current employees. These sessions should focus on creative marketing as marketing is the core of this company. S since this will enable personal development as the employees receive an improved set of skills at marketing and therefore push professional development of the organisation organization as these employees will apply these sets of skills to boost the productivity of RB. This way, RB will be more widely known for its marketing than it already is. Once RB does this, they will attract more talent into their organisation organization, and chances are people from “Maybe” would change their option to a certain “Yes,” which can assist RB in becoming an employer of choice.
3. In the year 1988, RB created a unique marketing strategy never done before in the history of marketing. They introduced “Dolomitenmann” (Red Bull, 2020), which is a marketing campaign which that combined mountain running, paragliding, kayaking, and mountain biking at an event. In this event, fans, consumers, or audiences of RB would come to participate to showcase their sportsmanship. This directly links to the motto of the company, which states that “Red Bull gives you wings” because these events are scary events that gives a people a huge rush of adrenaline. However, the interviewee disputes this by stating that the motto of RB, while being relevant is not a huge driver of its marketing campaigns. Furthermore, the interviewee says, “I think what RB does very well is creating those experiences,” which means that the experience gained from an event such as “Dolomitenmann” as a whole is the “creation of lifestyle”. .”
4. Like this, RB has managed to create unique marketing events regarding athletics, free sports, and adventure during the years 1992, 1995, 1997, 1999, 2001, 2003, 2004, 2005, 2007, 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017. These campaigns have contributed to building a global audience which that RB has today. The campaigns could be critically analysed analyzed the pie chart shown below;
5. 75% of the respondents reported that they were aware of RB marketing campaigns. Although the small size was quite small in number, it ranged across 6 six different nationalities. Therefore, it could be suggested that RB has a reach of a global audience via campaigns, as mentioned above. Although the respondents seemed to like the idea of these campaigns, the majority would not like to be a part of these campaigns.
6. 68% of the participants did not want to be a part of the campaign, despite being aware of it. This is the point of RB, ; their motto states that “Red Bull gives you wings,” which suggests that a consumer must drink RB for them to obtain a sense of freedom (described as “wings” of a bird) to try things one would never have dared to. Hence, despite the results from the pie chart above, it is recommended that RB continues to aggressively promote their its brand via campaigning with adventures ports and creating events with unique experiences that gives viewers a certain adrenaline rush.
7. Avast majority of the respondents identified an evolution of Red Bull strateg75 per cent of the respondents identified that Red Bull marketing strategies had evolved with 10 per cent responding that they’re not aware of changes in Red Bull marketing strategies since inception.
8. 95 Ninety-five percent agreed that healthy competition among the brands in the food and beverage industry triggered by globalization had resulted in increased brand options to the consumers. While 70 percent of the respondents agreed that globalization had played a role in the Red Bull marketing strategies, 25 percent of the respondents were of the contrary opinion.
9. Although a vast majority of the respondents agree that Globalization has led to exploitation of the workforce, only a minority of 10% states that they are aware of such incidents with RB.
10. Respondent No. 11 (Appendix 4), who is a part of the minority that thinks RB has committed man practice with CSR and marketing, states that RB has had “the slogan issue”. .” The details of this lawsuit is are attached on in Appendix 4. However, the interviewee strongly objects to view this as malpractice or a lack of CSR. The way RB means “by giving you wings is that it gives you energy. It should not be taken literally”. “There are so many companies using lots of words in their slogan, if you really need to each and every company slogan, the world will find so many more examples like this. And that this should not be taken seriously”. These are 2 two different quotations from the interview, wherein the marketing professionalprofessional marketing interviewee felt that the general population sometimes misunderstands the meaning of phrases at on a global scale. Hence, it is recommended that RB lay an important focus on adapting adopting a more socially responsible “ethical” approach to marketing. RB can do this by educating consumers on how to dispose of their cans in a more recyclable manner in the campaigns that they host.
11. In the year 2000, RB was able to launch in the middle east. The way that they were able to do this was because the Aladdin spot resonates resonated with the famous Arabic fairy tale and proved to be the perfect copy for the Red Bull launch. The success of RB in the middle east could be validated, taking into consideration the answer of Respondent No. 17 (attached on in Appendix 11), who is from Yemen. This respondent rates the “marketing strategies of RB” 10/10, “The influence of globalisation globalization of marketing strategies” on RB 10/10, and How much does "RB adapt to culture” 8/10. This suggests that audiences are very satisfied with the cultural adaptability of RB. .
12. Moreover, companies that tend to be global must be well equipped and culturally aware to enterof entering the market of conservative countries in the middle east. The fact that this respondent stated 10/10 for “How easy/convenient is it for you to buy a Red Bull ?” Shows that RB has become accessible in the middle east at on a large scale as well.
13. The year 1989, RB pushed their product range to a global audience via endorsements. Gerhard Berger was a Formula 1 driver. This is explicitly supported by the response of Respondent No. 4 (Appendix 14). The participant was asked the question, “What is it about Red Bull you like the most ?” And the participant has responded, stating, “Formula 1”. This is a testimony to the fact that consumers sometimes consume RB not because of the product but due to these global events that they are a part of. Using this marketing strategy, RB was able to obtain a global audience, as explained below.
14. Like this, RB has managed to obtain several endorsements from celebrities ranging from athletes to movie stars that puts them on top of the global platform during the years - 1994, 1995, 1998, 2007, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017. This is an excellent marketing strategy because because Bandura (2018) explains that individual peers can serve as a major source of social influence, leading one to adopt conforming habits or behaviors. The reason for this is that humans are social creatures, and they look to others to help develop their own patterns of thought, reinforce stereotypes or develop behaviors that are accepted and allow them to get along well with others. Individuals create relationships with one another, but in order for those relationships to be successful, there are codes and norms of behavior that are expected in order for two people to share a common space. Disruption of those codes or not meeting expectations results in a destabilization of the space—a kind of cognitive dissonance within the relationship that has to be addressed or else the two individuals will repel one another. Therefore, people naturally look to influencers to make decisions regarding purchasing a product. The product is RB in this case. This could be backed up with the answer of Respondent No. 9 attached on (Appendix 13). When asked, “How did you first hear about Red Bull?”, the participant responded by stating that “Saw a friend drinking Red Bull’s energy drink”. .” This clearly shows the influence that society or the environment around us influences consumers at a global level to purchase RB, as explained by Bandura (2018). Hence it is recommended that RB continue to advertise with celebrities. It could be further recommended that RB taps into the idea of receiving endorsements from the football industry as it has a large number of following and has had an enormous growth in the 21st century. It could also be recommended that RB obtains endorsements from pop culture artists to promote their brand to the younger demographic in order to increase brand awareness and, in turn, boost sales.
15. Another important strategy that RB has strived to maintain was brand awareness to a global audiences. In the year 2005, RB is known to have co co-branded their brand with other famous brands such as Jaguar and BMX, Mercedes, in 2006. One of the most unique marketing strategies that RB has employed due to globalisation globalization was in 2006. HIGHER, FASTER, FURTHER. Red Bull Paper Wings is a unique event where a sheet of paper, lots of ideas, and some upper arm strength can help you go down in sporting history. The 2005/6 season saw over 10,000 competitors from 50 countries take part in 260 qualification rounds across the world with the aim of soaringto soar into the main event. Winners were crowned in the categories Longest Airtime and Longest Distance and Aerobatics. It is due to these strategies that RB benefits from such overwhelming brand awareness across a global platform. It was measured in the questionnaire.
16. 100% of the respondents has have stated that they are aware of the brand RB, which means that globalisation globalization has a positive impact of on RB in terms of Brand Awareness. All things considered, tThe marketing strategies seem to have played a pivotal role in spearheading RB achieving growth, however, the results from the questionnaire seems to show a decline in the consumption of RB. 30 percent of the respondents agreed that the benefits of Red Bull in your Country outweigh the drawbacks, with 40 percent responding that the brand drawbacks outweigh the benefits of the brand's presence in their respective countries. One of the benefits identified is the creation of jobs, with 60 percent of the respondent agreeing that Red Bull had created jobs in their respective countries.
17. While 100 percent of respondents identified that they were aware of the Red Bull product, only 20 per cent of the respondents had ever used social media to post content about Red Bull. 55 Fifty-five percent of the respondents suggested the need for a new price point for Red Bull, implying that the brand is considered pricey. 20 Twenty percent of the respondents USD1 is the suggested price of the Red Bull products.
18. With In the recent years, there has been a change in the global attitude towards the consumption of soft drinks as a whole. Graph 1 below shows the consumption of RB for the past 5 five years. The mathematical analysis and procedure of the graph has have been done on in Appendix 9.
Since For the past few years, there has been a global trend in a leading a healthier lifestyle. The interviewee states that “I used to drink a lot of Red Bull, but now I stop,” and when asked, the reason to for this is that, there is a global phenomena phenomenon of leading a healthier lifestyle, which condemns 90% of the soft drink industry. These statements are in alignment with the results because, it can be seen that there is a decline in the consumption of RB since 2015. Hence it is recommended that RB diversify its product range into healthier soft drinks, with reduced sugar and caffeine contents.
To answer the research question more clearly, although there is empirical evidence that globalisation globalization has indefinitely assisted RB in reaching a global audience via unique marketing strategies, invariably, globalisation globalization has also negatively impacted the sales of RB due to increasing awareness in consumption of sugar and caffeinated drinks such as RB. All in all, to a great extent, globalisation globalization positively impacts the marketing strategies of RB since the 20th century; however, it has also negatively impacted it.
4.5. Globalization and Red Bull Marketing Strategies Evolution
Theme 1: Literature Review of Marketing Strategies in Response to Globalization
Regarding the firm’s research question in analyzing the different marketing strategies in response to globalization, there’re varied potential streams of literature on marketing strategies research. Metanalytic literature analysis by (Omalaja, Eruola, and College, 2011) identifies that the literature on marketing strategies focuses on trends on firm characteristics, international market selection, globalization, global branding, global competition, liberalization policies, competitive positioning, international direct marketing, customer and supplier relationship, and international marketing behavior.
Susan & Craig (2010) define a marketing strategy as a strategy that seeks to develop customer value creation through the identification of the target customer interest and needs while integrating the firm’s distinctive capabilities and skills. Susan & Craig (2010) assert that a firm’s marketing strategy is based on upstream and downstream elements of the product value chain, such as logistics, design, production, and sourcing.
A global marketing strategy (GMS) , on the other hand, entails a strategy that integrates different regions and countries across the globe with the objective of implementingintending to implement a coordinated marketing strategy in diverse markets (Johansson, 2010). Developing a global marketing strategy entails a dynamic continuouscontinuous dynamic process that is constantly evolving as the firm ventures in new markets segments and countries. Susan & Craig (2010) highlight that the success of a GMS is dependent on the firm’s ability to evolve, adapt, and respond to the changing dynamics of the global market place.
Zou & Cavusgil (2002) point out that global marketing strategy is considered as an avenue of capitalization on the comparative advantage as well as synergies that exist between countries, necessitating the need for spreading a firm’s value chain to other countries to meet the needs of global customers. Zou & Cavusgil (2002) observes that the integrated and interdependent nature of markets across different countries shape how competitive marketing strategies are planned and executed globally.
In the context of globalization, there exist different approaches adopted in the global marketing strategies evolution that differ in conceptual underpinnings or theoretical underpinnings (Susan & Craig, 2010; Zou & Cavusgil, 2002). According to Susan & Craig (2010), the approaches have evolved from the include transaction cost perspective, standardization perspective, global configuration perspective, global integration perspective to the evolutionary perspective. A transaction cost perspective accounts for the earliest strategy of global marketing and is premised in the view that there exists a trade-off between resource commitment and control that then shape the returns. The standardized perspective holds that marketing standardized products word wide as opposed to adopting localized strategies would stimulate the success of multinationals as they can exploit economies of scale in management, marketing, distribution, and production (Levitt, 1997). Standardization of the product or service entails uniformity in design and styling of products or services and helps in quality improvement, cost reduction, and enhanced customer preference
The global configuration perspective calls for value chain activities’ coordination across different markets and countries to enhance competitive advantage. The perspective advocates that value chain activities need to be undertaken in markets/counties where the firm enjoys the cost efficiency and effectiveness. The global integration perspective that perspectives the world markets as an integrated whole. The perspective calls for operations to be undertaken in all major markets globally and advocates for recourses shifting across markets for effective competition. The last perspective is the evolutionary perspective that holds that firms ought to be viewed as evolving as the firms venture in international markets. The perspective calls view internationalization as a sequential decision?making process. The evolutionary perspective is the broadest perspective integrating the other approaches (Susan & Craig, 2010; Zou & Cavusgil, 2002). According to Susan & Craig (2010), some firms go through the above marketing approaches to realize global internalization while others are “born global” implying they adopt the global perspective targeting global customers at inception in the market. The “born global” firms have been facilitated by the international communications infrastructure advancement and are able to adopt as targeted market entry marketing strategies.
Levit (1983) highlighted that globalization promoted a “convergence of tastes,” presenting the advantage of the economics of simplicity. Levit (1983) noted that such a revolution implied that the succeeds of global corporations was significantly influenced by their approach convergence of taste as opposed to local tastes. Globalization and information technology advancement have diminished the importance of location, with the world becoming a unified global village. In an era of globalization, new technology, communication, and infrastructure advancement, particularly the interconnectivity promoted by the internet, the convergence of consumer tastes has revolutionized the marketing strategies of global brands such as Red Bull.
Schlegelmilch's (2016) and Kotabe and Helsen's (2010) analysis of marketing strategies identify identify stepwise developmental trajectory. The precursors for global marketing include marketing, export marketing, and international marketing. Schlegelmilch (2016) notes that as brands undergo internationalization, they engage initially exclusively to home markets, followed by marketing abroad where the brands entail minimal adaptions. International marketing is characterized by the development of business in other countries but with minimal utilization of cross-country synergy opportunities. Global marketing, on the contrary, leverages, experience, assets, and products in the global markets with the products having adaption to the local market needs (Kotabe and Helsen, 2010) Kotler (2009) notes that global marketing strategies seek to maximize homogenization, standardization, and integration of marketing activities across markets worldwide. However, “born global” brands such as Red Bull do not undergo the stepwise developmental trajectory that internationalizes rapidly from their inception (Schlegelmilch 2016). Red Bull adopted a homogeneous marketing principle in its internationalization strategy. Globally, its marketing strategy is multi-faceted, revolutionary, and non-conformist.
Theme 2: Evolution of Globalization since the 20th Century with the Context of Red Bull
It’s undeniable that globalization has created a borderless world. It’s triggered a drastic change in business practice and environment across the globe and has evoked interdependence economically, politically, socially, and culturally (Eden and Lenway, 2001; Molle, 2002). It has cultivated the emergence of new opportunities such as increasing resource availability, an increasing number of potential markets, and increasing investment potential (Fawcett, Calantone, and Smith, 1997; Molle, 2002). Globalization has also yielded threats such as unprecedented intensification of competition, and increased challenge in predicting the business environment Jones, 2002; Molle, 2002). Given the dynamic nature of the marketing domain and its strong interconnection with the world, it’s directly affected by the globalization process. Globalization has contributed led to the emergence development of global products implying that the marketing strategies are faced with the challenge of fierce competition at a global scale, necessitating the setting up of global marketing structures and frequent revisions of marketing strategies (Naghi & Para, 2013). External globalization conditions impact a firm's ss global marketing strategy. One key condition is the advancement of ICT, which by capitalizing on the advantage of the ICT evolution Phenomenon, Red Bull has developed a global orientation and a solid foundation for the brand.
When it comes to engaging, listening, and responding to clientele through social conversation, Red Bull embraces it excellently. Red Bull adopts a platform-agnostic and holistic approach to content distribution. Red Bull marketing channel is characterized by an internet-based and social media strategyAn internet-based and social media strategy characterizes the red Bull marketing channel. Cognizant of the fragmented and complex digital media ecosystem, Red Bull largely uses social media to circulate content that communicates the brand's ethos. The brand focuses on establishing customer relationships and has a deep heritage of engaging customers through social media. By making the consumers feel they matter through active social media interaction, Red Bull is able tocan create brand loyalty. The Brand has emerged as a poster child for utilizing social media to market its products. By engaging in social conversation, Red Bull learns from its customers, which contributes to building a build positive brand experience. A survey of the digital marketing identified social media marketing as 5th top-rated digital marketing technique in 2017 with content marketing emerging first (Chaffey, 2017).
Red Bull blurred the boundaries between entertainment and marketing with its eye-catching content intersecting entertainment, sports, music, culture, and lifestyle. Red bull marketing strategy has a strong commitment to branding themselves through sports, and music sponsorship deals. The wide range of contents creates appeal across its target market. Red Bull tagline “Red Bull gives you wings” demonstrates a marketing strategy that recognizes the consumer taste convergences triggered by globalization. The promotional content is therefore conceptualized to around high energy. The tagline resonates with the global audience since everyone needs high energy to focus on their routine activities.
The brand has multiple social brand accounts featuring sports teams such as the Aston Martin Red Bull Racing and music accounts such as Red Bull Music Academy. The social media accounts are run in partnership with athletes and seek to give the athletes followers a behind-the-scenes glimpse into an athlete’s life. The Exclusive YouTube series such as ‘Who is JOB?’ is one social media account that rides on the brands and the athlete’s popularity to create an authentic experience for target segments of the brand's consumer. The brand recognizes the nascent of meeting on meeting audiences on their terms as an effective content delivery strategy. As opposed to dictating content to their audience, red Bull engaging the audience in co-creating their content. The ‘Space Jump event attracted 2.6 million social media mentions on the day as it was being live live-streamed on YouTube. Other promotion marquee sponsored events that use online live-stream include the Soap Box Race, Red Bull’s Air Race and Rampage
With the Web being re-built for visual and video content as opposed to predominantly text content, Red Bull heavily relies on video to promote its brand. Red Bull has over 9 million subscribers on its main YouTube channel and over 4 million subscribers on its smaller channels featuring short documentaries, mini-series, live-streamed events across longer-form video content of music, motorsports, gaming, and snow sports. The content is even shorter and creative on the brand's Instagram. As opposed to including cans of soda or posters promoting the drinks taste and benefits on its promotional video, Red Bull uses perspective video in partnership with Go-Pro to push its brand. The Brands puts its distinctive brand colors and logo on the athlete’s equipment, props, and attire as well as on its racing vehicles. In forging sponsorship and partnership, Red Bull guiding principle is flexibility and creative freedom. As such, the Red Bull partnerships are devoid of traditional notions of sponsorship and media rights agreements. As opposed to pure monetary value, Red Bull seeks partnerships and sponsorships that seek mutual benefits by establishing premium products.
Theme 3: Analysis of the benefits and drawbacks of globalization on Red Bull’s core marketing principles.
Naghi & Para (2013) assert economies of scale and cost reduction, an opportunity of market expansion, unique worldwide brand name, and brand identity, access to mass markets, better communication methods, new talents, access to resources, enhanced transportation opportunities, as some of the benefits accruing to firms as a consequence of globalization. Standardizing operational marketing generates economies of scale, while globalized firms can implement similar strategies worldwide simultaneously. Having a global brand enables the reduction of communication costs due to the consistency of the branding content since the same concept is adopted across the board. Technology evolution has been a key driver of globalization, promoting convergence of the global community. It has enabled marketing strategies with a targeted audience that seeks to respond to increasing and evolving competitive conditions. Technology, particularly leveraging the internet, is at the core of Red Bull's marketing strategy.
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