Red Bulls Market free essay sample

A Bulls Market the marketing of Red Bull energy drink Red Bull, Austrias biggest export since Arnold Schwarzenegger, has methodically created and dominated the energy drink category much in the way players of the board game Risk would defeat their opponents. Dietrich Mateschitz, the owner of Red Bull International, created the highly caffeinated beverage in 1987. Five years later, the drink spread into neighboring countries like Hungary and Slovenia, followed by Germany and Switzerland. In 1997, Red Bull prepared to storm the U. S. market. Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States. (Ohio, Tennessee and the Dakotas are among the few states without it. ) In less than three years, Red Bull singlehandedly established and then lifted the booming energy drink category from a base of $12 million in (wholesale) dollar sales to $42 million in 1998 and $75 million in 1999, per Beverage Marketing Corp. We will write a custom essay sample on Red Bulls Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Others soon followed, building energy drinks to a $130 million business. Now Coke (KMX) and Anheuser-Busch (180) are jumping in. Last year, Red Bulls market share stood at 65%, while the company reportedly pulled in a cool $1 billion in worldwide sales. Just how Red Bull managed to accomplish so much, so quickly has become the stuff of mythology Some have written off the product by calling it a flash in the pan or derisively note that its handlers got lucky. A closer investigation of the companys strategy however, reveals that luck had little to do with Red Bulls success. The companys consistent battle plan has been to open up a market by securing unusual distribution. When Red Bull initially set up camp in Santa Monica, Calif. , it piggybacked on established distributors. Typically distributors will deliver a number of brands; a Pepsi house will handle Pepsi, Diet Pepsi and Mountain Dew, and may even pick up a non-competing rival like Dr Pepper. Sales reps even greased the wheels by paying for their accounts promotional, advertising and sampling costs for three months. But as the drink caught on, the company began taking a more narrow approach. Now, a Red Bull sales rep will contact a small distributor and insist that he or she sell only Red Bull. Otherwise, Red Bull will set up a warehouse and hire kids to load up the vans and deliver product. These start-up distributors can focus their entire energies on getting Red Bull fully stocked in stores with prominent shelf placement. They generally break even within three months and are profitable within six. They buy direct from Red Bull. Theres enough margin and volume to make it work, said one Northeastern distributor. I wish theyd give it to me, but they have the kids with the vans doing it. Im looking forward to getting Snapples Venom [a new energy drink launching June 15] so I can compete with them. Next, the sales team visits key on-premise accounts: hot clubs and trendy bars. When owners begin buying a few cases, they receive a Red Bull branded cooler and other POP items. Thats when we start doing business officially, said Markus Pichler, evp-strategic planning, Red Bull North America. We go to on-premise accounts [vs. retailers] first, because the product gets a lot of visi bility and attention. It goes faster to deal with individual accounts, not big chains and their authorization process. Plus, on-premise provides fertile ground for new drink trends. In clubs, people are open to new things, said Pichler. The most important thing about [Red Bull] is, its working. If you had a tough week and want to dance, the product works. Perhaps a bit too well. Fueling Red Bulls growth is a mystique created by outlandish rumors about its contents: it is liquid Viagra; its secret ingredient is bulls testicles; someone overdosed from the drink because it has drugs in it. (The company shoots down these and other myths in an FAQ section on RedBull. com. Pichler wouldnt talk about Red Bulls natural fit with the speed crowd that frequents raves, taking designer drugs to stay awake for days at a time. Nor does the company endorse the mixing of Red Bull with vodka, Jagermeister or tequila-a ubiquitous bar call whose roots can be traced to Europe. From a sales perspective, Pichler acknowledged, [the mixability] is a nice side effect. Theres more to the guerrilla strategy than building buzz at clubs. Sales teams will open off-premise accounts at convenience stores near colleges, gyms, health-food stores and supermarkets. The company has divided the U. S. into eight decentralized sales units, each of which is handled on a city-by-city basis. One regional office in New York, for example, services Maryland, New Jersey Pennsylvania and Virginia. The Boston office handles the New England states and upstate New York. Each unit is responsible for creating distribution, making sales calls and developing targeted marketing plans. The mission: to find out where the target demo (men and women age 16-29) hangs out and what interests them. Its their job to get the message out to the right clubs and at the right events. While Red Bull relies heavily on bars and night clubs for its sampling events, alternative sports have also proven to be a successful product-trial arena. The company underwrites a number of extreme sports competitions and sponsors about three dozen alterna-athletes. Events include the Red Bull Huckfest, a ski and snowboard freestyle competition held in January in Snowbird, Utah; and the Red Bull Flugtag (German for flying day),premiering in the U. S. this fall. At the latter event, amateur pilots will create exotic flying machines and attempt to soar off the Santa Monica pier. The brand also employs teams of consumer educators, who roam the streets and dangle free samples. With California as its stronghold, Red Bull made its way into Oregon, Settle, Texas and ski resorts in Colorado. It next moved into the Midwest, targeting urban markets like Chicago and its environs. Soon it showed up on the East Coast in Miami and New York. (The Big Apple had a head start: Europe leaked the beverage into the city) Newer markets include the Carolinas, Virginia and Washington, D. C. In the antithesis of any majors marketing plan, Red Bull buys traditional advertising last. Only when a market is deemed mature does the company begin a media push. The idea is to reinforce, not introduce, the brand. Media is not a tool that we use to establish the market, said vp-marketing David Rohdy. It is a critical part. Its just later in the development. Current ads, titled Red Bull gives you wings, focus around an animated bull character. The initial spot is set in the Renaissance era, where an artist is telling the man who commissioned his painting that he has created the perfect piece of art: Red Bull. Itll give you wings, he said. Indeed, in another ad, an energized bull is shown leaping over a city. The ads have begun airing during late-night TV in New York, and radio programs including The Howard Stern Show. A Santa Monica-based shop, Lunch, handles ads and POP materials for the entire U. S. Red Bull typically creates two new TV spots a year and runs them in mature markets. The brand spent $100 million in the U. S. last year, according to the company Measured media spending was only $18. 9 million last year, up from $9 million in 1999, per Competitive Media Reporting. Red Bulls runaway popularity had given it easy entree into mass merchandisers. It is currently the No. 1 product in Store24, where it is now a bigger seller than beer, milk, water and soda. 7-Eleven is experiencing similar results. We have seen double-digit growth [in the non-carbonated segment]. Red Bull tops the list big time, said Jim Jackson, category manager for non-carbonated beverages at 7-Eleven, Dallas. [Their success is due to] their single-product focus, major advertising dollars and distribution. They create demand before they even get it to retail. The picture may yet change, as Red Bull is now facing more than a dozen imitators, most notably Cokes KMX and A-Bs 180. Knockoffs they may be, but distributors say they have been moving extremely well. Weve done a lot of the dirty work for them, Rohdy said. Pichler was a bit more engaging. Were a fan of competition. Its a positive for us, he said. It validates the energy drink category. Red Bull has already experienced the c opycat phenomenon overseas. The company doesnt appear to be concerned, however, having hit the $1 billion worldwide sales mark. Besides, observers have said the also-rans dont have a prayer. Red Bull seems to have a cooler in every bar in every city. The sales force, thats all they do, said one new age beverage executive. The big guys will not put that much energy into it and will lose interest when they dont make any headway. After conquering the U. S. , the Red Bull army plans to move on. It is currently making headway in Brazil and South Africa, though South America and Africa as a whole remain largely untapped. If history repeats itself, it wont be long before everyone on the planet gets their wings.

Behavioural based safety strategy The WritePass Journal

Behavioural based safety strategy Abstract Behavioural based safety strategy ). The safety management systems currently implemented within organisations generally are centred on policies, procedures, objectives, processes such as risk assessment, hazard identification the use of various safety tools such as JSA’s and the wearing of personal protective equipment, or PPE, and focus on measuring compliance against key targets and objectives. This dissertation examines how Behaviour Based Safety, or BBS, aids in the drive to prevent accidents and boost overall employee development (Lebbon, Sigurdsson and Austin, 2012). Qatar holds the position of second smallest country in the Arabian Peninsula after the island state of Bahrain. Qatar’s population currently stands at 2.04 million of Development Planning and Statistics, 94 per cent of which are foreign nationals (Qsa.gov.qa., 2014). Of this 94 per cent the majority is low-paid migrant workers. This number is expected to rise significantly in the coming years primarily due to the coming 2020 World Cup and the need for an influx of foreign labour for the booming construction requirement associated with it (Qsa.gov.qa., 2014). These migrant workers will primarily work on critical construction projects, drastically increasing the need for an effective safety program to be in place. The country has grown in a record breaking manner in the last ten years, to become the wo rld’s highest per capita GDP National (Fromherz, 2013). This achievement is primarily based on the vast resources of oil and gas discovered in the country. As a consequence of this discovery, construction of mega production plants has been the main focus of development in the country. This level of construction indicates an influx of safety challenges requiring an up to date and efficient method of implementation. These projects have historically required vast numbers of multi-cultural and diverse workforces, coming from different parts of the world (Orr, 2008). This being the case there are many challenges and great difficulties in bringing about a consciousness of safe work practices and in instilling a positive safety culture (Fromherz, 2013). The recognition of the need for workplace safety publicly materialized in the work of Mr Heinrich, an Assistant Superintendent of the Engineering and Inspection Division of Travellers Insurance Company during the 1930’s and 1940’s (Heinrich, 1959). His position required an investigation into the high and rising rate of supervisor accident reports during the period .This report revolutionized the working world by concluding that 88% of industrial accidents were primarily caused by unsafe, possibly preventable acts (Heinrich, 1959). This transformative moment in safety strategy motivated an entire industry to introduce reform (Fogarty and Shaw, 2010). Prior to these period witnessed steadily decreasing standards of working conditions that led to the need to reform the system. Heinrich (1959) subsequently published his first book in 1931; Industrial Accident Prevention: A Scientific Approach, laying out a more systematic approach to the study of accident data. This indicat ion of a willingness to embrace change was tempered by the overwhelming capacity that big business interests had to keep costs low, creating a volatile safety environment. The modern era has maintained that safety is significant concern for companies, often requiring a considerable fraction of their overall revenue stream (Fromherz, 2013). This drive to increase performance and reduce injury has resulted in many companies showing excellent improvement in the area of safety performance, thereby reducing cost and increasing productivity. The rationale for this research rests on assessing the potential for improvement of HSE performance in the Oil and Gas sector, specifically in the Middle East; through a means of behavioural based safety. The intention of the study is to establish the appropriateness of this hypothesis, whether as a process to be used as a standalone mechanism, or additionally, for the augmentation of an existing HSE management system. Behaviour based safety concept, or BBS, has been  considered in industry worldwide for around a decade as a means to achieve a positive safety culture and an improved organizational safety performance (M ohr, 2011). An organisations culture can be as influential in achieving good safety results as a safety management system. The positive or negative safety culture of an organisation is directly linked to human factors and the positive behaviour of its workforce (Mohr, 2011). According to Books (1999), the largest influences on safety culture are; 1) the style and management commitment; 2) the involvement of employees; 3)training and competence; 4)ability to communicate at all levels; 5) compliance with procedures; and 6)organisational learning. The current research has affiliation with an earlier study conducted as part of the Post Graduate Diploma award (Turner, 2013). The subject of the previous research was â€Å"Safety Culture or Climate: An Appraisal of Perceptions and Scale†. This research sought to measure the health and safety, culture and climate of the researcher’s employer organisation. In this case the researcher determined that there was evidence of a positive safety culture within the XXXX Group of companies. However, this research also illustrated that this positive safety culture has not entirely achieved the expected and desired outcome of zero harm to people. All these factors in themselves do not prevent injuries from continuing to occur within the organisation. The previous study and current research focuses on the Middle East region. In particular to the varying needs and challenges faced by operations based in the region; specifically those that require the engagement of personnel from a vast array of differing backgrounds and cultures and how the principles of behavioural based safety may effectively be used to influence this specific workgroup. To facilitate understanding, it is also important to outline the distinctiveness of the location, (Qatar), the demographics of the workgroup, and the difficulties and challenges related to the management of such a work group within a safe work environment. Based on the above reasoning this affords the researcher the ideal incentive to both address the topic as an area of research for the required dissertation element in partial fulfilment of the requirements for the Postgraduate MSc Degree in Health, Safety Risk Management and to make recommendations that will enable XXXX Group to continue its safety culture development journey; that is, towards a more safety aware, proactive and empowered workforce; ultimately leading to an overall improvement in the safety performance results attained 1.2 Aims Objectives This dissertation research focuses on the potential for improvement of HSE performance in the Oil and Gas sector, specifically in the Middle East; through a means of behavioural based safety. It is evident from recent research that traditional methods of safety management, such as safety management systems and risk assessments, do not wholly protect employees from incidents and injuries, as such organisations are looking for an alternative approach to improve performance and eradicate injury from the workplace, therefore the aim of this project is The following aim has been developed in order to meet this goal of this research: Critically evaluate existing research into behavioural based health and safety strategies, programmes and model with a view to identify a best practice model for future implementation. Objectives: The objectives of the research are as follows: 1) To critically analyse available literature and research studies pertaining to behavioural based health and safety. 2) To ascertain employee perceptions. 3) To identify best practices and success rates of behavioural based safety programmes. 4) To evaluate performance improvement. 5) Determine an appropriate behavioural approach for Labour safety in Qatar. 1.3 Research Questions In order to fully develop this dissertation the following questions will be considered by this research: 1) What is behavioural based safety and how does it impact Qatar? 2) Which elements of the behavioural based safety process are suited for Qatar? 3) What is the best method of behavioural based safety implementation for Qatar? 4) How to assess behavioural based safety effectiveness in the workplace? 1.4 Scope of this research This research examines safety perception and behavioural application from 2000 until 2014 in order to ascertain the best possible elements for future implementation. With a national focus on Qatar this research incorporates studies conducted in similar environments and conditions internationally in order to gain insight for these research objectives. 1.5 Structure of the Dissertation This dissertation will consist of an Introduction, Literature Review, Methodology and Analysis, followed by Discussion/Conclusion. 2 Literature review 2.1 Overview â€Å"BBS is about everyone’s behaviour, not just the frontline† (Agnew Ashworth, 2012:1). 3 Methodology / Analysis 4 Discussion/Conclusion 5 References Agnew, J. 2012. Behaviour based Safety.  Performance management magazine, 1 (1), p. 1. Books, H. 2009. Reducing error and influencing behaviour. New York, NY. Fogarty, G. J. and Shaw, A. 2010. Safety climate and the Theory of Planned Behaviour: Towards the prediction of unsafe behaviour.  Accident Analysis \ Prevention, 42 (5), pp. 14551459. Fromherz, A. J. 2013. Qatar: Politics and the Challenges of Development by Matthew Gray (review).  The Middle East Journal, 67 (4), pp. 649651. Greene-Roesel, R., Washington, S., Weir, M., Bhatia, R., Hague, M., Wimple, B. 2013. Benefit cost analysis applied to behavioural and engineering safety countermeasures in San Francisco, California. Heinrich, H. W. 1959.  Industrial accident prevention. New York: McGraw-Hill. Santos-Reyes, J. and Beard, A. N. 2002. Assessing safety management systems.  Journal of Loss Prevention in the Process Industries, 15 (2), pp. 7795. Lebbon, A., Sigurdsson, S. O. and Austin, J. 2012. Behavioural Safety in the Food Services Industry: Challenges and Outcomes.  Journal of Organizational Behaviour Management, 32 (1), pp. 4457. Mehta, RK.   Agnew, MJ. 2013. Exertion-dependent effects of physical and mental workload on physiological outcomes and task performance.  The IIE Transactions on Occupational Ergonomics and Human Factors,  1(1), 3-5. Mohr, D. P. 2011.  Fostering sustainable behaviour. Gabriola, B.C.: New Society Publishers. Orr, T. 2008.  Qatar. New York: Marshall Cavendish Benchmark. Qsa.gov.qa. 2014.  . Welcome to Ministry of Development Planning and Statistics-Statistics sector website :.. [online] Available at: qsa.gov.qa/eng/index.htm [Accessed: 27 Mar 2014].