Globalization's Impact on Red Bull's Marketing Strategies

Introduction and Research Framework

Prehistorically, globalization is defined as an emerging network belonging to economic and social systems (Online Etymology Dictionary, n.d.). Roland Robertson (1992) was the first person to define globalization as "the understanding of the world and the increased perception of the world as a whole." Later definitions varied as many more complexities became associated with the word (Dr. Nayef R.F., 2006). Thompson Larsson (2001) describes 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) suggest that 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) contradict this by stating that globalization may not always have a positive impact on the economies of developing countries. These researchers suggest that it is insecure for a nation to liberalize its migration laws and border security for several safety and national security reasons. Globalization at large aims to promote trade and break these barriers; however, in doing so, a country can become subject to unwanted threats. Therefore, from a wider perspective, Jan Aart Scholte (2002) and modern researchers 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 globalization is relative, has no definitive single definition, and that its meaning is contextual to the situation in which it is applied.

Globalization has facilitated the evolution of marketing and impacts the strategies used by corporations. Marketing strategies typically begin domestically in the central offices of a firm and, thereafter, shift internationally by extension. After going international, companies are forced to alter their marketing mix and adapt to multinational strategies. The global markets can be opportunistic but, at the same time, largely unpredictable, which necessitates well-thought-out strategies. When marketing globally, the company increases the number of players in the mix. In this regard, global marketing strategies must provide for susceptible international markets and also be on par with acquisition and strategic 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 by forcing companies to incorporate technological aspects such as social media channels and omni-channels. Cook (2014) outlines that present-day consumers have access to a more extensive range of technologies compared to past generations, with numerous consumer segments having been brought up with or largely influenced by technology. Changing lifestyles imply that contemporary consumers wish to conduct the purchasing process at a time that is suitable to their individual needs, using technology they actually have. Research also demonstrates that when these consumer segments are fully engaged through online and social media channels, they can become very loyal consumers. Cook (2014) notes that, behaviourally, these consumer segments insist on a suitable and gratifying setting in which to conduct product research at a place and time that suits them.

Globalization, characterized 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 can now produce goods and services for diversified international markets, while consumers can reach suppliers worldwide. The global marketplace 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, electronic commerce is dominating the retail market, transforming the approach to marketing and necessitating a review of marketing strategies to incorporate new methodologies addressing brand management and positioning in the global arena.

The literature identifies that traditional advertising—such as printed advertisements targeting the mass market rather than a specific 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 focused on consumer connection are more cost-effective and efficient. Social media platforms are among the fastest-growing platforms for digital marketing. Agarwal & Wu (2018) note that contemporary research on global marketing focuses on conventional marketing strategy with minimal attention to the rapidly changing marketing landscape of the twenty-first century.

As outlined above, the application of globalization in marketing is influenced by various factors including digital technology, culture, international platforms, and trade. Since globalization evolves by its very nature over time, it is significant to understand its method of change. This study places specific emphasis on events of the 20th century, with the objective of understanding how globalization evolves and how it drives changes in marketing for Red Bull, and thus examining the adaptation of marketing as a response to that evolution.

This research aims to explore the extent to which globalization has impacted the core marketing principles of Red Bull with regard to the change of time, technology, and socio-cultural interconnectedness, leading to an overall evolution of globalization from the 20th century to the 21st century. This evolution could lead to a change in the effectiveness of the product and promotional strategies as a response to customer expectations adopted by Red Bull, with a future-oriented prospect.

1. To critically analyze knowledge on different marketing strategies in response to globalization by reviewing relevant academic literature.

2. To critically explore the extent to which globalization has changed since the 20th century with regard to Red Bull.

3. To critically evaluate the benefits and drawbacks of globalization on Red Bull's core marketing principles.

4. To understand the link between the evolution of globalization and the 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.

Literature Review: Globalization and Marketing Theory

1. How does the evolution of globalization since the 20th century impact and evolve the efficiency of core marketing principles of Red Bull?

2. How does understanding past trends and the nature of the evolution of globalization since the 20th century predict relevant future prospects regarding promotional strategies for Red Bull?

3. How has globalization driven a change in customer expectations in the soft drink industry?

4. What trends since the 20th century, caused by globalization, have negatively impacted the Red Bull product and brand?

5. How has Red Bull overcome any obstacles caused by globalization concerning customer expectations since the 20th century?

This research begins with a research proposal that outlines a detailed plan, including aims, objectives, reasons for choosing the research project, literature sources searched, a Gantt chart to show activities and timescales, the philosophical standpoint of the researcher, methodologies of conducting primary research, and a research ethics approval form. The research then presents a Critical Literature Review covering the history and evolution of globalization and the impact of globalization on marketing and marketing strategies. Next, primary data is collected using a questionnaire. Using that data, a semi-structured interview format was constructed to interview a marketing professional. The research then adopts a secondary-source timeline as an extension of the Critical Literature Review, critically analyzing the marketing strategies of Red Bull since the 20th century using quantitative data from questionnaires and qualitative data from interviews. In doing so, the research provides answers to the aforementioned research questions while simultaneously providing recommendations for Red Bull. Finally, a reflection is conducted to account for any biases and researcher reflexivity, improving the reliability of the report.

Globalization has caused remarkable changes to business practices all over the world. Globalization encompasses the practice of increasing social and cultural interconnectedness, political autonomy, and economic, financial, and market assimilations steered by progressions in communication, transportation, and trade liberalization (Orozco, 2002). In turn, globalization has led to major changes in business conduct and marketing activities in companies across the globe (Mann and Gotz, 2006). Although the literature cited above has more than two authors—which suggests potential errors in researcher reflexivity—the book was edited and published by the reliable Greenwood Publishing Group. While the contents may be historic, it is essential to understand the pre-modern setting in order to apply the concept of globalization in the contemporary setting.

In the present-day setting, globalization has become one of the most significant forces impacting the operations of numerous organizations across the world. Transformations taking place in society, encompassing alterations in technology and communication, have given rise to modifications of business and marketing practices and strategies (Pride and Ferrell, 2016). The 7th edition of this text was used, suggesting the source is fairly relevant and strives to remain up to date. Since no independent research within the book was cited independently and owing to the fact that the book takes a comprehensive approach citing over 500 sources of literature, the inferences made from this book could be generalized to the contemporary setting.

Furthermore, this literature is arguably a very relevant source in academia because it was published by Cengage Learning, which operates in 20 different countries providing educational content. Multinational companies incessantly develop and enhance their marketing programs to meet the standards of consumers and provide them with satisfactory products and services across national boundaries (Dibb et al., 2005). Since this literature is written by four authors, it considers a balanced approach, accounting for possible biases via peer review. Although it is a relatively old piece of work, it has been cited in over 1,000 articles (Google Scholar, 2019), suggesting that the source is reliable. The 5th edition had the most access for the purpose of this assignment and takes a global approach by citing multiple studies.

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, and promotion. According to Dang (2015), the product is the foremost and pivotal marketing element, defined as the actual product or service on offer for acquisition by the customer. Price is defined as the amount charged for a product or service; the price element generates income and is hence a key competitive tool. In establishing price, a brand needs to maximize profits, expand sales and market share, and stand out from competitors. Place, also referred to as distribution, is defined as the process and methods through which products or services reach customers. Promotion is an element of the marketing mix that entails the dissemination of product information and seeks to establish a smoother relationship between the brand and the consumer.

Scholars have adopted the 4P theory with extensions: Booms and Bitner (1980) incorporated three new Ps—process, participants, and physical evidence—into the marketing mix. Goldsmith (1999) proposed personalization as an additional element. Kent and Berman Brown (2006) argue that since the additional Ps do not promote convergence in application, the 4Ps remain the primary marketing mix. The 4P theory has been critiqued for its production-oriented definition of marketing, which prevents the cultivation of long-term customer relationships (Gummesson, 1999; Hyman, 2002; Grönroos, 2004). The theory's emphasis on one-to-many communications limits the marketing strategy from tailoring products to differences in customers, treating customers as passive elements of marketing.

Schultz, Tannenbaum, and Lauterborn (1993) proposed the customer-centric 4C classification as a response to the changing paradigm that shifts the focus of marketing strategy toward 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-centric 4Ps strategy to a customer-centric 4Cs strategy by converting the product into a customer solution, price into cost to the customer, place into convenience, and promotion into communication (Chaffey and Smith, 2017). The 4C framework advocates for the consumer's perspective in marketing.

The theory advocates that brands need to integrate customer suggestions to meet their demands. The customer-centric approach holds that satisfaction of customer demand, reduction of customer purchase costs, and convenience in the purchase process are top priorities. The 4C theory holds effective marketing communication as the center of marketing strategy, enabling the brand to understand its audience before developing a new product.

Globalization encompasses the international distribution of the production of goods and services by means of reducing or eradicating barriers to international trade such as tariffs and import quotas (Fischer, 2003). This review amalgamates a longitudinal study with a review of multiple researches. The evolution of globalization is linked to the modern era, during which extensive development took place in the fields of infrastructure and connectivity, resulting in progressively more interaction between countries and the sharing of ideas and culture (Gander, 2017, p. 168). The industrial revolution during the 19th century was a key epoch in the evolution of globalization. Owing to the industrial revolution, there was a major rise in the quality and quantity of products, resulting in greater exports and enhanced trade and business associations (Ferreira, Pessoa, and Dos Santos, 2013).

The period of pre-globalization came to a culmination after the First World War. From a modern perspective, globalization came into manifestation after the Second World War, when world leaders pursued the objective of breaking down national borders to cultivate trade associations between countries. It was at this particular point in time that numerous nations attained independence, established their own economic systems, and instituted trade relations with the rest of the globe (Horowitz, 2004).

Globalization in the 21st century has been aided by the speed and scope of global assimilation emanating from unparalleled advancements and reductions in the cost of technology, communications, science, industry, and transportation. Markets have grown more intertwined, and the process has been made more effective by the ability to create products whose components are manufactured in various locations across the globe (McLellan, 2005). The capability to move information and products cost-effectively from one nation to another and to locate manufacturing where labor costs are lower has transformed both production and consumption patterns. Globalization in the 21st century is further embodied by enhanced technology in transportation and telecommunications, the growth of multinational corporations, and the movement of people and capital (Nederveen Pieterse, 2012).

Globalization has increased radically in the 21st century. One of its major impacts is that companies have been able to expand their operations beyond local borders in pursuit of new consumers, greater revenues, and new sources of capital. Globalization significantly impacts a company's marketing, especially its advertising strategies and the manner in which messages are conveyed to consumers (Kotabe and Helsen, 2014). Globalization also affects marketing in terms of investment: companies must incur additional costs in producing advertisements across numerous nations, and acquiring both advertising time and space for products and services in multiple countries has become costly. International advertising is progressively more difficult and necessitates greater time and determination in marketing strategy (Lee and Carter, 2011).

Globalization has a significant impact on international marketing activities because it compels firms to make their marketing activities considerably more culturally diverse and productive. Globalization is urging firms to market their products and services to international consumers in a wide range of languages and in contexts that respect the cultural beliefs of those consumers. Several instances of communication faux pas have come about when messages in advertisements are lost in translation (Kokemuller, 2018). This is the reason why corporations more often than not utilize local people in every market who speak and understand the language. To sway consumers through advertising, it is imperative to be knowledgeable about the culture and values inherent in a specific market. Therefore, as globalization has enabled companies to expand their businesses, it has also forced them to ensure their marketing activities are respectful of local cultures and properly understood by consumers (Kokemuller, 2018).

Numerous organizations have benefited from globalization, as they can take part in and lay emphasis on international marketing, in line with the aspiration for greater sales, revenues, profits, and consumer recognition. International marketing facilitates business prospects for further development and enhancement in terms of strategies, products, and services (Lamb, Hair and McDaniel, 2011). Through globalization, firms gain access to international markets offering massive business prospects, and are forced to become proficient in cultural adaptation, innovation, and the application of appropriate marketing strategies.

Globalization has significantly impacted marketing strategies employed by companies across the globe. A key strategic question is whether to utilize a universal communication approach or to tailor market advertising to every individual market. Progressively more companies utilize a multi-domestic or global approach since only a small number of products have truly universal use and message contexts. Globalization also impacts marketing in terms of branding—specifically, whether it is sensible to create a consistent international brand or to develop various brand images for each nation (Agarwal and Wu, 2018).

Globalization has also facilitated the diffusion and adoption of technology across borders, compelling companies to incorporate social media channels and omni-channels into their marketing strategies. Cook (2014) notes that altering lifestyles mean consumers wish to conduct the purchasing process at a time that is suitable to their individual needs. Research demonstrates that when consumer segments are fully engaged through online and social media channels, they can become very loyal consumers. The journal from which Cook's work is drawn employs a pragmatic, mixed-method approach by using quantitative data to establish cause-and-effect relationships and then qualitative data to apply findings to marketing and globalization, making this source both reliable and generalizable.

Saunders, Lewis, and Thornhill (2009) define research philosophy as knowledge development and the nature of that knowledge. Research philosophy represents the researcher's implicit or explicit philosophical assumptions about the nature of the world, which Burrell and Morgan (1979) note guide the objectivity of research. Philosophical assumptions include ontological assumptions, epistemological perspective, and methodological perspective.

Research Methodology

According to Saunders, Lewis, and Thornhill (2009), ontology is the study of reality and enables differentiation between perception and reality. Ontological assumptions shape the researcher's view of research objects and entail two contrasting views: objectivism and subjectivism. The objectivism view holds that the social world exists as a natural and concrete world independent of human cognition, adopting realism and seeking to uncover universal laws governing social behavior. The subjectivism view asserts that social reality is the product of social phenomena orchestrated by social actors, adopting nominalism and implying that social reality is constructed through social interaction and is in a constant state of change. The ontological standpoint of this research is crucial because identifying it assists the researcher in distinguishing the research's objective reality from subjective social reality (Saunders et al., 2009).

Epistemology concerns what constitutes valid, legitimate, and acceptable knowledge and the approaches for communicating that knowledge (Saunders, Lewis and Thornhill, 2009). There are two contrasting epistemological perspectives: positivism and interpretivism. A positivist approach holds that social phenomena can be studied as facts by establishing relationships and regularities. An interpretivist/constructivist perspective perceives the world as a wider social system that is constructed, interpreted, and experienced by social actors. Unlike the positivist perspective that seeks to generalize a phenomenon to the population, the interpretive perspective seeks to understand a particular phenomenon in its natural, non-manipulated, real-world setting (Burrell and Morgan, 1979).

The epistemological standpoint of this research acknowledges that there has been a drastic evolution of globalization since the 20th century, encompassing the international distribution of the production of goods and services through the reducing or eradicating of barriers to international trade (Fischer, 2003), and embodied in the 21st century by enhanced technology in transportation and telecommunications, the growth of multinational corporations, and the movement of people and capital (Nederveen Pieterse, 2012). Identifying the epistemology allows the researcher to distinguish the true from the false, thus accounting for possible biases, conducting reflexivity, and improving the reliability of the report.

The research paradigm enables clarity in the inquiry structure and the methodology choice. A positivism paradigm asserts that there exists a single truth about a social phenomenon, that social reality is objective and external, and adopts quantitative research methods to generalize outcomes to the population. An interpretivism/constructivist perspective asserts that reality is socially constructed, that the research process is value-laden, and adopts qualitative research methods aimed at developing theories. The realism perspective holds that there is no perfection in scientific methods, calling for an open mind and adoption of different methods while acknowledging that no fixed causal impact of social events exists due to their fragility.

A pragmatism paradigm holds the view that positivism and interpretivism are both valid philosophical assumptions and that 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, and advocates for the use of methods that allow for reliable, credible, and relevant data to be collected (Kelemen and Rumens, 2008). Pragmatism amalgamates interpretivism and positivism to best answer the research question (Saunders et al., 2009). For this reason, this research uses a pragmatic approach since it collects both quantitative and qualitative data across primary and secondary research, as outlined below.

This research used a mixed-method approach, incorporating the collection, analysis, and integration of quantitative and qualitative data. The overarching research question—"To what extent does globalization impact marketing strategies of Red Bull since the 20th Century?"—was best addressed by a pragmatic approach that incorporates both quantitative and qualitative data across primary research methods and secondary research via the critical literature review.

The reason for using a pragmatic approach and a mixed method is that the evaluation can be viewed from multiple angles. Since the weaknesses of qualitative data are the strengths of quantitative data and vice versa, the researcher is able to present a more comprehensive and balanced argument relative to using a single method alone (Eaton and Ihuah, 2013). Although a pragmatic approach is more time-consuming, expensive, and complex (Jiboye, 2004), a positivist approach alone would only deal with numbers and become inflexible (Eaton and Ihuah, 2013), while an interpretivist approach alone tends to involve more bias and personal involvement. A pragmatic approach therefore combines the accuracy of quantitative data with the ecological validity of qualitative data, allowing the research to present a balanced argument that improves overall reliability.

Primary research commenced by distributing questionnaires (Appendix 1), followed by a semi-structured interview (Appendix 2) conducted with a marketing professional who had previously written a dissertation on Red Bull and marketing. It was done in this order so that the researcher could first collect the perspectives of the general population. For example, Respondent 11 pointed out that Red Bull had an issue with their slogan "Red Bull gives you wings," and this new information was used to gather secondary data about the "slogan issue," which was then shown to the interviewee during the semi-structured interview. The questionnaire provided broad perspectives on globalization in a quantitative form, and the validity of this information was scrutinized by a subsequent qualitative data collection via the semi-structured interview.

The international marketing research process framework entails setting the research objective, developing the research design, collecting data, and analyzing data (Omalaja, Eruola, and College, 2011). A systematic analysis of marketing strategy literature identified surveys as the most popular model of data collection in marketing literature. Other methods identified include secondary data analysis, case studies, content analysis, experiment and modeling, and interviews.

The primary data collection tool adopted was a questionnaire. Using a questionnaire, the researcher saved time and the data was easy to process (University of Leicester, 2018). However, because a questionnaire is not flexible in nature, a comprehensive understanding could not always be achieved. Most of the answers are in a multiple-choice format, and while the answers are quantifiable, every sample had a unique background and a questionnaire does not fully account for the impact of bias on the answer. This was particularly visible as participants ranged across six different nationalities, with cultural and social implications potentially affecting the reliability of answers (Bandura, 2018; Bartlett, 1932).

Although the sample size was only 20—a relatively small number for a research project—the respondents were from different nationalities, which relates directly to globalization and gives the responses a more comprehensive global scope. However, there was a possible risk of participants misunderstanding the questions. One such example was a ranking question (Appendix 5) that confused participants because ranking "1st" is normally perceived as best, while the scale used "1" as the lowest and "5" as the highest preference. A questionnaire can nonetheless be analyzed more scientifically and objectively than other forms of research such as focus groups and observation.

A minor error occurred for the first 13 respondents: in the section asking about Red Bull consumption over the past five years, the options in Google Forms initially only included 2015, 2016, and 2019, missing 2017 and 2018 (Appendix 6). The researcher corrected this after 13 responses. This would not crucially impact the findings because only relative percentages were used for analysis (see Appendix 9). It is relatively easier for the researcher to correct a mistake in a questionnaire than in other methods of data collection, and since questionnaires lack the ability to gather rich data (University of Leicester, 2018), the study was complemented with a semi-structured interview.

The interview was conducted with a professional who had already written a dissertation on Red Bull and marketing. A semi-structured format allowed the interviewer to be prepared and appear competent while also allowing the interviewee the freedom to express views in their own terms (Keller and Conradin, 2018). Since the participant was an expert on this topic, there was a high chance that the interviewee was more knowledgeable than the researcher in this area; therefore, the interviewee needed to be given freedom of expression while the researcher guided and moderated the discussion. However, in order to make a general conclusion, a large number of people would need to be interviewed, which is time-consuming and resource-intensive, and this is precisely the reason why a questionnaire was also conducted.

Although some questions were perceived as leading, this can be justified because the in-depth discussion went out of context at certain points. The participant also stated that "This is way more formal than I expected," which suggests the participant could have been made more comfortable at the start. However, after the first minute the participant appeared at ease as the interviewee was given the platform to take the discussion in the direction they wished, which is one of the benefits of a semi-structured interview format.

Semi-structured interviews can provide reliable and comparable qualitative data, and because they confirm what is already known while also providing opportunity for new learning, they were particularly well suited to this study. Often the information obtained from semi-structured interviews provides not just answers but the reasons behind the answers (Keller and Conradin, 2018). Many questions from the questionnaire were therefore repeated in the interview with the qualifier "to what extent" in order to extrapolate rich and comprehensive data. Lastly, a semi-structured interview was used rather than a focus group because of constraints of time and resources, and because semi-structured interviews can be directed to a certain extent, making them a better fit for this research.

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 free 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 internal validity. External validity implies that a research finding is generalizable to the population, and to ensure this, the current study interviewed twenty respondents from different geographical locations worldwide. Data triangulation—using multiple case studies realized through interviewing multiple persons—was adopted to ensure the reliability of study findings (Yin, 2014).

The empirical findings entail a synthesis of primary data collected through a questionnaire and a literature review. The results obtained from the secondary data have been processed and condensed into timelines, tables, graphs, and charts.