The paper "How Red Bull Business Has to Operate" is a perfect example of a case study on business. The Red Bull Company began in 1933 as a club in Australia. After some time it changed its name to be the company for energy soft drinks, which spread from to other countries. The Red Bull Company deals with the sale of drinks that help people to do their work without problems and also it associates itself with sports that are extreme meaning that it can bring the expected results to the people all the levels.
The Red Bull is the biggest exporter in Australia where it has created and dominated the energy drink category in the way the players of board game risk would defeat the opponents. (Mollie, 2000) A caffeinated beverage was created in 1987 whereby after some time this drink spread to other countries like Germany. Today this company has invaded most parts of the US where it makes high sales in wholesale and other building energy drinks followed making high sales. The share for this company in the market has stood at about 65% in the cool, and 1 billion in worldwide sales.
This means that compared with the beverages of the Red Bull is highly sold all over the world as after its invasion in several countries it has been able to spread very fast to the other friendly countries. The plan of this company has been able to open up markets by securing unusual distribution whereby the distributors deliver a number of brands whereby for example the Pepsi house will sell Pepsi. Due to the advertising, promotional, accounts and sampling costs this company faced that problem then it had to narrow down its approach.
A sales representative will approach a distributor and insists that they must sale only this Red Bull product it sets up a warehouse and hires people like the kids to load the vehicles and deliver the products. The start-up distributors can be able to focus their energies on getting Red Bull to be fully stocked in stores with shelf placement and it is able to make more sales within the next months meaning that the profits will be high.
These small distributors buy direct from the company and therefore they have enough volume to make it work. The sales team visits the key on-premise accounts like the hot clubs and trendy bars and thus when the owners begin to buy the sellers know that the product can be sold to him or her then they receive a Red Bull branded cooler and other POP items and through this, they are able to do their business officially. This on-premise account ensures that the product gets a lot of visibility and attention and therefore it goes faster to deal with individual accounts, not big chains and the authorization process. It also ensures that it provides fertile ground for new drink trends.
This Red Bull gives people a feeling of been refreshed from the week’ s activities and therefore if one takes this product then it works.