We dont bring the product to the people. We bring the people to the product.Dietrich Mateschitz, Founder, Red Bull GmbH (Gschwandtner, 2004)

IntroductionRed Bull GMBH was discovered in 1984 by an Austrian business man Mateschitz (Red Bull.com, 2011). It took the company three years to get an official permit from the Austrian government to start production of Red Bull GMBH in the domestic market in 1987 (Redbull.com, 2011).Today Red Bull GMBH is in 160 plus countries with a market share of 7080% and a sales volume of 4.2 billion cans sold in 2010 (Red Bull.com, 2011). The company has faced many problems from the very beginning which include permission to sell in certain countries in Europe (Gschwandtner, 2004). The company relies on nontraditional marketing and has a dedicated force of 5000 student brand managers who help promote and sell the companys image to its target market (Red Bull.com, 2011).

Key Global Strategic Challenges Facing Red bull GmbHRed Bull GmbH faces many challenges in the functional drink market. These Challenges can be identified with the help of a SWOT and PESTLE analysis of Red Bull GmbHs business environment:

Red Bull GMBH SWOT AnalysisRed Bull GmbH faces many internal and external challenges which can be identified through its SWOT analysis (see appendix-1). Following is the SWOT analysis of Red Bull GmbH: Strengths Red Bull GmbH enjoys market leadership (Data Monitor, 2004:5) in many countries it operates with a market share of 70% in most of the countries (Data Monitor, 2004). This market leadership has transformed into Red Bull GmbHs biggest strength in the functional drink category having almost two third of the production in Europe (Data Monitor, 2004). Red Bull GmbHs marketing efforts have been one of the hallmarks of its success as it targets a segment of 18-25 (Data Monitor, 2004) .The company relies on its team of 5000 student brand managers who sell and promote the companys products through buzz marketing at various pubs and places were the target market socializes (RedBull.com, 2011).It is also involved in extreme sporting events such as jumping off cliffs, Para-jumping, aerobatics, formula one etc (Gschwandtner, 2004).

Red Bull GmbH has a very strong distribution which includes partnerships with key players such Cadbury Schweppes in Australia (DataMonitor, 2004).Due to this partnership Red Bull GmbH witnessed a growth in sales up to 40% during the same year (Data Monitor, 2004).On the financial aspect the company has recorded a 7.6% increase in 2010 worldwide with a total of 4.2 Billion cans sold (Red Bull.com, 2011). Weaknesses Red Bull GmbH has been hit hard when it comes to product innovation (Data Monitor, 2004). The competition has been achieving milestones by introducing such products as sports drinks were as Red Bull GMBH remains unchanged with its narrow product line (Data Monitor, 2004). The company only has four products (Redbull.com, 2011) and with such a small product line it is vulnerable to market fluctuations especially the category that it operates in is really small worldwide (Data Monitor, 2004). Red Bull GmbHs marketing expenses are very high as it has to invest in extreme sporting events (Gschwandtner, 2004) and requires wide-ranging efforts to promote its sales (Data Monitor, 2004).These expenses are very high when compared to its competitors such as Coca Cola (Dolan, 2005). Opportunities Red Bull GmbH can be successful if it goes for a brand extension in an existing product line and it would be more successful in the non-cola market as it has already earned a name for its self in the functional drinks category (Data Monitor, 2004).Similarly Red Bull GmbH can diversify its distribution by going to other modes of retail such as vending machines as it did in Australia (Data Monitor, 2004). Red Bull GmbH needs to penetrate into further markets which have huge profit opportunities for it (Data Monitor, 2004). Asia Pacific markets are huge profitable investments as they accounted for 50.9% of the total global trade of energy drinks (Data Monitor, 2004). Threats Red Bull GMBH faces issues related to public health concerns and has been banned or is under the scrutiny of the states classification of its product category (Data Monitor, 2004). It is banned

in Denmark and is sold as medicine in Japan and many other countries are expressing their concerns over its health implications when consumed in high quantity (Data Monitor, 2004). Although the company promises a profitable future yet it is faced by a challenge of a maturing markets were it faces tough competition from emerging brands (Data Monitor, 2004).The target market of Red Bull GmbH is maturing and is adopting to different lifestyles which requires less energy stimulation (Yaqoob, 2008). Consumers are becoming more health conscious and aware of their health related issues and now prefer to drink bottled water (Data Monitor, 2004).

PESTLE Analysis for Red Bull GmbHRed Bull GmbHs PESTLE (See appendix-2) ranks element of its business environment. The elements assess 5 relevant marketing environments on a scale of 1-5 were 1 is the highest and 5 is the lowest. The element given the highest ranking is the legal issues. Red Bull GmbHs has been facing legal actions by governments and states which are ranging from approvals to bans from packaging and labeling of the product to its ingredients (Farris, 2002). The second element is joint ventures as mode of entry into new markets, since Red Bull GmbH has its production facilities in Austria and it distributes from the same place (Red Bull.com, 2011), so in order to enter into new markets it might consider Joint Ventures as certain governments require foreign firms to have local partnerships (Carter and Lee, 2009). Negative publicity and growing health awareness amongst consumers is assigned same weights because of the fact that they are interrelated. Red Bull GmbH has faced many issues related to its negative publicity as at one time it was considered that taurine, one key ingredient was made out of the Bulls testicles (Farris, 2002).Its over consumption was also banned in certain countries due to risks of deaths related to cardiovascular failure especially when mixed and over consumed with alcohol (Farris, 2002). Over the years there has been a growing concern amongst consumers regarding their health and consumers are increasingly switching over to bottled drinks in the non energy category (Data Monitor, 2004). This can be a big challenge for Red Bull GmbH as it enters into new markets (ibid). Red Bull GmbHs target market was the Generation Y people who were born after 1981 also known as the millennial generation (Yaqoob, 2008). Now as this population ages and their buying habits change and they become more health conscious it would be a challenge for Red

Bull GmbH to find new target markets comprising of young people (ibid). Worlds youngest population is at higher ratio in Asia and Africa which in the near future would be promising investments coupled with economic growth (prg.org, 2010). Currency fluctuations are always a challenge to organizations but are given a lower rating of 4. Currency fluctuations have great impact on economy and trade and are measuring tools for trade amongst countries (Leon, 2011). Supply and demand determine demand of a currency and relation of business between countries (ibid).However certain countries keep their exchange rate at low like China which wants the world to benefit from its cheaper labour and cost of production.(ibid). This can be a promising opportunity for Red bull GmbH to invest in China as the European economy faces many challenges with the Euro getting weaker against the Dollar in 2010 (ibid). With a total of 2.15 (See Appendix-2) Red Bull GMBH as mentioned above still has opportunities to invest in other markets especially emerging economies with a younger consumer base, stable currencies and investment friendly governments.

Cultural ChallengesCompanys face many challenges when they try to sell their products across different cultures. In global markets companies come across various cultural challenges which start from unfamiliar languages, different value systems, beliefs and behaviours of individuals and groups (Cavusgil et al., 2010). Every country has a unique set of standard of living and consumption patterns (Ibid). According to Cavusgil at etl (2010:126) Culture refers to the learned, shared, and enduring orientation patterns in a society. People demonstrate their culture through values, Ideas, attitudes and behaviours and symbols. Hofstede in his research gave the five dimensions of culture (see appendix-10) which are used by firms as major tools to assess the challenges and future outlook in investing into such countries and markets. Red Bull GmbH currently sells in markets (See appendix-10) which have characteristics of High individualism, with stronger masculinity, low power distance, a high level of uncertainty avoidance and short term orientation.

REDBULL GmbHs Product MixRed Bull GmbHs Product line consists of Red Bull energy Drink, Red Bull Sugar Free, Red Bull Shots and Red Bull Cola (See Appendix-8). Red Bull GMBH however doesnt offer all product lines across most of its markets (Red Bull.com, 2011). Red Bull GmbH BCG Analysis The BCG Matrix is a tool which shows relationship between market growth and market share (Carter and Lee, 2009). The BCG of Red Bull GmbH (See appendix 4) shows Red bull GmbHs current market standing in different regions around the world against its largest competitors. Red Bull GmbH is a cash cow in North America (earthtimes.org, 2009) and in western and Eastern Europe, this is due to the fact that the energy drinks market in these regions have matured and there is intense competition between rivals and there are few competitors who share the market with Red Bull GmbH (foodproductiondaily.com,2004). Red Bull GmbH is a star in Middle East, Africa, Australia and New Zealand (See Appendix 4). It has a market share of 22.7 percent in Middle East and Africa and a market share of 13.6 percent in Australia and New Zealand (See appendix 5).Stars are profitable since they are market leaders but require huge investment for maintaining market leadership in a growing market (Jobbers, 2010). Red Bull GmbH is a question mark in Latin America and Asia excluding New Zealand and Australia (See Appendix 4). Red Bull GmbHs Market Share in Asia is 2.8% and 11.7% in Latin America (See Appendix 5). Asia Promises to be a profitable investment in the near future because of the largest youth population in the world (Euromonitor International, 2007). Population wise India has the highest number of 20-24 age bracket people accounting to 98 million followed by China with 82 million and Indonesia 21 million (ibid). Moreover economic growth and raise in income in these countries has increased the potential for Red Bull GmbH to invest in such economies (ibid). South American countries especially Brazil is considered to be one of the emerging economies of the world with Red Bull GmbH having a 26% growth rate in South American Countries (earthtimes.org, 2009).

Red Bull GmbHS ANSOFF Matrix Analysis An Ansoff Matrix is a strategic analysis tool which explains future potential for a company in managing its products in relation to its markets (Carter and Lee, 2009). According to Red Bull GmbHs ANSOFF Matrix analysis (See appendix-6), it should go for a diversification strategy. This is based on previous analysis in this report identified through the SWOT, PESTLE and BCG Matrix Analysis tools. The company needs to go for diversification strategy because it faces challenges of a narrow product line which is an obstacle for further development in maturing markets (Data Monitor, 2004). Red Bull GmbHs current target market that is generation Y is maturing in most of the countries due to which Red bull GmbH has to explore new markets which have a huge youth population (Yaqoob, 2008).The income levels in developing economies and emerging markets are improving due to which people living in such countries are witnessing improved standards of living and increased purchasing power (Euromonitor international, 2007). People in the developed markets are already adopting healthy lifestyles and due their being more conscious of their health Red Bull GmbH faces an eminent threat of drop in sales unless it diversifies its product line and penetrates into new markets (Data Monitor, 2004). With above mentioned factors of aging population, narrow product line and emergence of new economic power centers Red Bull GmbH should go for a diversification strategy. Current Product Mix Strategy of Red Bull GMBH (Standardization Vs Adaptation) Red Bull GmbH has a standardized (See Appendix-7) product mix this is due to the fact that Red bull GmbH produces and distributes its products from a centralized production facility in Austria (Red Bull.com, 2011). However Red Bull GMBH had to adapt (See Appendix-7) its product mix according to different countries in accordance with their legal requirements (Farris, 2002). Red Bull GmbH was allowed to sell in France after twelve years of ban when it changed the contents of its drink removing the controversial ingredient taurine from it (Palmer, 2008). In most of the countries around the world Red Bull GmbH had to print health warning labels of not consuming the drink with alcohol (Farris, 2002). In Canada Red Bull GmbH was allowed to sell its products after the health authorities approved warning labels that quantity should not exceed 16.6 oz per day (Farris, 2002).

Why Should Red Bull GmbH go for Product Adaptation Red Bull GmbH should go for product adaptation strategy because it has in past faced many issues ranging from narrow product line to health and legal complications to controversial ingredients (See Appendix-1 and 2). Some of the advantages of adaptation (See appendix-7) which would benefit Red Bull GMBH in overcoming these issues which include approvals from governments, matching needs of the segments individually and ethical concerns etcetera. Red Bull GmbH should go for adaptation strategy because (see appendix-6) it is going to go into product diversification and this is being done to cater to the needs of new markets and with new product lines. As mentioned earlier in this section it can cater to the needs of such emerging markets as Asia, Middle East and Africa etcetera through product diversification and thus would need adaptation strategies for its product mix. Moreover since Red Bull GmbH has to face various cultural challenges as mentioned in the previous section so it has to adapt itself to such cultures and markets which would mean it would have to diversify its products and markets accordingly.

Red Bull GmbHs Existing Modes of Entry into International MarketsAccording to the Market Entry strategy (See Appendix-8) Red Bull GmbH follows the Stages model of Internationalization. The Uppsala Model in the stages model identifies basically two trends in the internationalization of a firm (Carter and Lee, 2009). Firms firstly develop markets according to an establishment chain Carter and Lee (2009:215). This is further elaborated in the sense that firms start with zero exporting activity that is development of domestic market, then it can take up a sales subsidiary and finally an overseas production facility (Carter and Lee, 2009). Red Bull GmbH does not completely follow this theory; it has started with domestic market

development in 1987 in Austria (Red Bull.com, 2011) which was not enough and so it started moving abroad into other countries since 1992 (fundinguniverse.com, n.d.). It gradually followed into other Markets like Western Europe, North America, Australia, Middle East and Africa (See Appendix-5). However it has kept production centralized and has not established a production facility in any other country to date (Red Bull.com, 2011).

Red Bull GmbH at the corporate level in its international business model follows the

(See appendix-8)

multi-level marketing approach. According to Carter and Lee (2009:226) Multi-

level marketing (MLM) refers to a marketing strategy where products are sold through a distributor structure that has many levels. The Idea behind MLM is to grow a business through word of mouth. People are encouraged to introduce others to the business. In return, they get a commission on sales made. Red Bull GmbH follows this approach as it distributes its products through distributors who sometimes are wholly owned subsidiaries and also through its 5000 dedicated student brand managers (Red Bull.com, 2011) who market its products to such places which are visited by its target market and in doing so they get commission on sales and first hand work experience (Gschwandtner, 2004). In the market entry modes (See Appendix-8) Red Bull GmbH follows the direct and indirect export and Strategic Alliances approaches. It has Strategic Alliances with Cadbury Schweppes Australia to distribute its products not only through traditional channels but also through vending machines (just-drinks.com, 2003). On the other hand Red Bull GmbH imports its products through its network of wholly owned or independent subsidiaries present in different countries from its home base in Austria (Farris, 2002).

Red Bull GmbHs Future Modes of Entry into International MarketsRed bull GmbH in its process of internationalization should follow the Bargaining power approach as a choice of entry into future markets (See Appendix-8). This is due to the fact that it is difficult to do business without government support in such countries where governments have high bargaining power and as mentioned in the PESTLE (See Appendix-2), Red Bull GmbH has been facing legal complications when it comes to approval of its products in countries worldwide. An example of this was France which has already been discussed above in this report .Moreover it should follow the agency approach as it moves into future markets like China were joint ventures and strategic alliances are key factors to success of business (Carter and Lee, 2009). At the corporate level Red Bull GmbH should keep Multi-level marketing business model as it has contributed to its success in the past through Student Brand Managers and Strategic distribution alliances (Red Bull.com, 2011). It could also go for the Transformational Business

Model Lee and Carter (2009:229) as it adapts and diversifies its products and markets in the future as proposed in the previous section of this report. In the market entry modes Red Bull GmbH should go for Joint Ventures and strategic alliances as it plans to enter new geographical regions (See Appendix-8). One of the advantages of Joint ventures is that they allow firms to avoid from making expensive risky investments on their own and at the same time help avoid competition from stronger firms (Bell et al, 2008).

Analysis of Red Bull GmbHs Current Promotional MixRed Bull GmbH spent $ 600 million on marketing which is 30% of its revenue in 2004 which is quite higher than the worlds number one beverage brand Coca Cola which spent 9% (Dolan, 2005). Red Bull uses the Buzz Marketing Strategy (Gschwandtner, 2004) by sponsoring exclusive and extreme sporting events around the globe from Formula 1 to Aero Shows, from Skiing to Climbing you name them and Red Bull GmbH does it all (ibid). Red Bull GmbH build up its pre-marketing hype in France by sponsoring Austrian air acrobat Felix Baumgartner who flew across the English Channel to France at a speed of 220 mph and flew for less than seven minutes but this event was given a free media coverage for months (Gschwandtner, 2004). This is not the end, other than sponsoring extreme sporting Red Bull GMBH uses humour as an appeal to advertise its products through humorous cartoons. It also activates its brand by targeting such places as Clubs, Pubs and Concerts etcetera through its teams of SBM (Student Brand Managers) (Redbull.com, 2011). Red Bull GmbHs promotional mix represents its culture which it markets across the globe which is individualistic, fun loving and energetic (Red Bull.com, 2011).

Analysis of Red Bull GmbHs DistributionRed Bull GmbH has a network of sales subsidiaries in 160 countries around the globe (Redbull.com, 2011). These Sales Subsidiaries import Red Bull GmbH products from Austria and Switzerland through trains, trucks and ships as logistical mechanisms for shipment (Red Bull.com, 2011). Red Bull GmbHs follows the intensive distribution and exclusive distribution strategies (Jobber, 2010). Example of this is the distribution of Red Bull GmbH on trade at all major retail outlets

and super stores (Farris, 2002).The example of exclusive distribution at the whole sale level is of Cadbury Schweppes which is the biggest distributor in Australia which uses vending machines, food courts and colleges as places for distribution (Just-drinks.com, 2003). It also utilizes its team of 5000 student brand managers around the globe to sell its products off-trade at selected Bars, Clubs and events etcetera (Redbull.com, 2011).

ConclusionTo conclude Red Bull GmbH is a Global brand which has sales channelized across all geographical regions and has many opportunities for further development which are balanced by its strengths like its Market Leader ship, Unconventional Marketing and Financial strength. It has got a strong culture which is individualistic, masculine and sporty and truly represents the segment that it markets too. However, as the market becomes more and more saturated due intensive competition, it would be required to diversify its products and markets. Furthermore, it would be required to adapt its product lines according to new cultures and geographical regions that it plans to enter in. As it would be entering into future markets it would be facing challenges of market entry with governments and state actors having high bargaining powers. This would mean adapting according to market. It would also be requiring agency approach as some countries and their markets are well managed through agencies. Joint ventures would also be helpful in reducing costs of production and distributions especially in emerging economies which promise cheap labour and lower cost of production. However, Red Bull GmbH would still be required to keep an eye on production and distribution operations in such countries and markets to ensure same quality and product delivery which it gives from its home base Austria. There would always be legal complications haunting its business operations however its strength would remain in its marketing communication efforts. The use of off trade methods for marketing would facilitate its sales and help in stable brand activations. Its distribution strategy provides it sustainable competitive advantage, but this can also cause problems if distribution partners do not show loyalty and exclusivity and long term commitments to business. In the end with all these above mentioned factors Red Bull GmbH can still maintain its market leadership and uniqueness as compared to other brands in the market.

References Bell, D. A., McCulloch, W.H., Geringer, J.M., Minor, M.S. and McNett, J.M. (2008) International Business: The Challenge of Global Competition, 11th ed., McGraw Hills, New York. C. Alford, H. Cox, and R. Wescott (2001) The effects of Red Bull Energy Drink on human performance and mood Amino Acids (2001) 21: 139150 Cavusgil, S.T., Knight, G.and Rissenberger, J.R. (2008), International Business: Strategy, management and the new realities, 2007, 1st ed., Prentice Hall. Cone, S. (2010) Top 9 brands available at Facebook and Twitter, Marketing Avatar, weblog post, 25 June, accessed 31 March 2011, http://marketingavatar.wordpress.com/category/contentstrategy-and-marketing/ Data Monitor (2004) Red Bull GMBH SWOT Analysis available online at http://graelaws.files.wordpress.com/2010/12/datamonitor-red-bull-swot.pdf 31.03.2011) Dolan, K.A.D., (2005) The Soda with Buzz Forbes. Available online at (accessed on

http://www.forbes.com/forbes/2005/0328/126.html (Accessed on 31.03.2011) Earthtimes.org (2009) Red Bulls Growth Rate Halved in 2008 available at

http://www.earthtimes.org/articles/news/254168,red-bulls-growth-rate-halved-in-2008.html (Accessed on 31.03.2011) Euromontior International (2007) Red Bull plans Asian expansion: prospects and problems available at http://www.euromonitor.com/red-bull-plans-asian-expansion-prospects-and-

problems/article (accessed on 31.03.2011) Farris, Paul, Red Bull. Darden Case No.: UVA-M-0663. Available online at SSRN: http://ssrn.com/abstract=910095 Foodproductdaily.com (2004) energy drinks market maturing in western Europe available at http://www.foodproductiondaily.com/Supply-Chain/Energy-drinks-market-maturing-inWestern-Europe (Accessed on 31.03.2011) Friendman-Rudovsky.J (2009) Red Bull's New Cola: A Kick from Cocaine? available online at http://www.time.com/time/world/article/0,8599,1900849,00.html (Accessed on 03.04.2011)

Fundinguniverse.com

(n.d.)

Red

Bull

GMBH

available

at

http://www.fundinguniverse.com/company-histories/Red-Bull-GmbH-Company-History.html (Accessed on 31.03.2011) Gschwandtner.G (2004) The Powerful Sales Strategy Behind Red Bull available online at http://www.redbull.cz/cs/userfiles/file/Read%20full%20article%20-%20Selling%20power.pdf (Accessed on 31.03.2011) Hansel.P (n.d.) Red Bull Can Labelling Available at

http://www.ph2.us/technology/3d/redbull/ (Accessed on 30.04.2011) Hofstede, G., Hofstede, G.J. and Minkov, M. (2010), Cultures and Organizations: Software for the Mind, 3rd ed., McGraw Hill. Jobber.D (2010) Principles and Practices of Marketing McGraw Hill: Berkshire United Kingdom. Just-Drinks.com (2003) AUSTRALIA: Red Bull and Cadbury Schweppes sign distribution deal available at http://www.just-drinks.com/news/red-bull-and-cadbury-schweppes-sign-

distribution-deal_id74105.aspx (Accessed on 31.03.2011) Lee.K and Carter.S (2009) Global Marketing Management Oxford: Oxford University Press Plamer.D (2008) France Reluctantly Lifts Ban over Red Bull available at

http://www.ausfoodnews.com.au/2008/07/17/france-reluctantly-lifts-ban-on-red-bull.html (Accessed on 13.04.2011) Prg.org Red (2010) Bull.com World (2011) Population Datasheet available online at

http://www.prb.org/pdf10/10wpds_eng.pdf accessed on (31.03.2011) Products available online at

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http://www.redbull.com/cs/Satellite/en_INT/companyfigures/001242939605518?pcs_c=PCS_Product&pcs_cid=1242937556133 31.03.2011) Redbull.com (2011) how it all started available online at (Accessed on

http://www.redbull.com/cs/Satellite/en_INT/how-it-all-

started/001242939605518?pcs_c=PCS_Product&pcs_cid=1242937556879 (31.03.2011) Sun.L (2011) The Basics of Currency Fluctuation available

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http://www.investorguide.com/igu-article-282-forex-basics-the-basics-of-currencyfluctuations.html (Accessed on 15 April 2011) Tutor2u.net (n.d.) Ansoff Matrix available at

http://www.tutor2u.net/business/strategy/ansoff_matrix.htm (accessed on 31.03.2011) Wipperfurth, A., 2005, Brand Hijack, Portfolio Hardcover. Yaqoob, M. (2008) Red Bull Marketing Strategy, NY MAFIA, weblog post, October, accessed 12 April 2011, < http://ny-mafia.blogspot.com/2008/10/redbull-marketing-

strategy.html>

Appendix SWOT Analysis Red bull (Appendix-1)

PEST Analysis Red Bull (Appendix -2)

Red Bull Energy Labelling and Packaging (Appendix-3)

Red Bull Can Labelling (Hansel, n.d.)

BCG Matrix (Appendix-4)

Adopted from Carter and Lee Figure 9.2 the BCG Matrix (Carter and Lee 2009)

Red Bull Market Share Value (Appendix-5)

Source: Euro monitor (2007) @ Euro monitor International 2007

Red Bull GMBHs ANSOFF Matrix (Appendix-6)

Existing Products

New Products

Existing Markets

Market Penetration

Product Development

Market New Markets Development Diversification

ANSOFF MATRIX (Tutor2u.net, n.d.)

Standardization Vs Adaptation (Appendix-7)

Figure 9.2 Standardization Vs Adaptation in international Marketing (Lee and Carter, 2009)

Market Entry Strategy (Appendix-8)Process of Internationalization Theoretical Approach Stages Model Networks Bargaining Power Born Global

International Business Model Subscription Razor and Blade Multi-Level Marketing Monopoly Network Effect Auction Loyalty Business

Corporate Level

Disintermediation Click and Mortar

Market Entry Modes Direct Country Market Level or Indirect Exporting Strategic Alliance Acquisition Merger and FDI and Joint Venture Franchise

Figure 7.2 Market Entry Strategy (Carter and Lee, 2009)

Red Bull GMBHs Product Line (Appendix-9)Red Bull Energy Drink The basic product of Red Bull GMBH is Red Bull energy drink (Redbull.com, 2011). It has been Red Bulls first product in its product line which was introduced more than two decades ago (Redbull.com, 2011).The drink was for people who wanted to have a clear and focused mind, physical active life and also giving them fun and excitement (Redbull.com,2011). Its main ingredients include Caffeine, Taurine, Glucuronolactone, B- Group Vitamins, Sucrose, Glucose and Alpine Spring Water. It is available in three sizes of 8, 12 and 16 oz (Redbull.com, 2011).For product Label and Packaging (see appendix-3). Red Bull Sugar Free This is the sugar free version of the original energy drink with 3 calories per 100 ml (Redbull.com, 2011).It has the same packaging as the original variant mentioned above. Red Bull Shots Red Bull Shots is a 60 ml packaged drink with 27 calories enough to give the same energy that the original Red Bull Energy drinks gives (Red Bull.com, 2011). It is also available in sugar free variant for health conscious segment (Red bull, 2011). It is designed for occasions were body and mind wants to remain active such as parties, travelling or sports etc (Red Bull, 2011). Red Bull Cola The last product in the product line of the company is Red Bull Cola. Red Bull Cola is available in 8.4 oz and 12 oz packaging (Redbull.com, 2011).It has been the most controversial product of Red Bull GMBH to date as it has been banned partially in Germany and Taiwan over traces of cocaine found in it (Friedman-Rudovosky, 2009).However the company defends its position in the market by explaining all its ingredients are natural and listed on the cans (Red Bull.com, 2011).

Hofstede Cultural Dimension Index Analysis (Appendix 10)

Country Africa East Africa West Arab countries Argentina Australia Austria Bangladesh Belgium Brazil Bulgaria Canada Chile China Colombia Croatia Czech Rep Denmark El Salvador Estonia Finland France Germany Great Britain Greece Hong Kong Hungary

PDI II 64 77 80 49 36 11 80 65 69 70 39 63 80 67 73 57 18 66 40 33 68 35 35 60 68 46

MI

UA LTO 52 54 68 86 51 70 60 94 76 85 48 86 30 80 80 74 23 94 60 59 86 65 35 32 9 23 20 21 60 47 82 44 69 36 31 87 13 58 70 35 20 82 38 63 83 51II= Individualism Index MI= Masculinity Index UA= Uncertainty Avoidance Index LTO= Long Term Orientation PDI= Power Distance Index

27 41 20 46 38 53 46 56 90 61 55 79 20 55 75 54 38 49 30 40 80 52 23 28 20 66 13 64 33 40 58 57 74 16 19 40 60 30 63 26 71 43 67 66 89 66 35 57 25 57 80 88

112 45 29 82 61 58

India Indonesia Iran Ireland Italy Japan Korea South Latvia Lithuania Luxembourg Malaysia Malta Mexico Morocco Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Romania Russia Serbia Singapore Slovak Rep Slovenia Spain

77 78 58 28 50 54 60 44 42 40 104 56 81 70 38 22 31 55 64 94 68 63 90 93 86 74 104 71 57

48 56 14 46 41 43 70 68 76 70 46 95 18 39 70 9 60 19 60 50 26 50 59 47 30 69 46 53 80 14 79 58 69 8 14 50 16 42 32 64 60 64 27 31 30 42 39 36 25 43 20 48

40 48 59 35 75 92 85 63 65 70 36 96 82 68 53 49 50 70 87 44 93

51 62 14 24 61 88 100 69 82 64 41 47 24 14 67 33 35 50 25 27 38

104 28 90 95 92 8 52 81 52 72 77 49 48

52 110 51 27 19 51 42 88 86

Sweden Switzerland Taiwan Thailand Trinidad Tobago Turkey U.S.A. Uruguay Venezuela Vietnam

31 34 58 64 and 47

71 5 68 70 17 45 20 34 16 58

29 58 69 64 55

53 74 93 32 13

66 40 61 81 70

37 45 91 62 36 38 12 73 20 40

85 46

46 26

100 26 76 30 16 57

Table Adopted from Dimension Data Matrix (Hofstede et al, 2010)

Asia

Bangladesh China Power Distance Index 120 100 80 60 40 20 0 Hong Kong India Indonesia Iran Individualism Index Japan Korea South Malaysia Pakistan Philippines Uncertainity Avoidance Index Russia Masculanity Index Singapore Taiwan Thailand Turkey Vietnam

Long Term Orientation

Africa and Middle East

Long Term Orientation

Power Distance Index 80 70 60 50 40 30 20 10 0

Individualism Index

Africa East Africa West Arab countries Morocco

Uncertainity Avoidance Index

Masculanity Index

Europe

Austria Belgium Bulgaria Croatia Power Distance Index 120 100 80 60 Long Term Orientation 40 20 0 Individualism Index Czech Rep Denmark El Salvador Estonia Finland France Germany Great Britain Greece Hungary Ireland Uncertainity Avoidance Index Masculanity Index Italy Latvia Lithuania Luxembourg Malta Netherlands Norway

North America

Long Term Orientation

Power Distance Index 100 90 80 70 60 50 40 30 20 10 0

Individualism Index Canada U.S.A.

Uncertainity Avoidance Index

Masculanity Index

South America

Long Term Orientation

Power Distance Index 100 90 80 70 60 50 40 30 20 10 0

Argentina Brazil Chile Individualism Index Colombia Czech Rep El Salvador Mexico Peru

Uncertainity Avoidance Index

Masculanity Index

Trinidad and Tobago Uruguay Venezuela

Australia and Newzealand

Power Distance Index 100 80 60 Long Term Orientation 40 20 0 Individualism Index Australia New Zealand

Uncertainity Avoidance Index

Masculanity Index

Explanation of Hofstede Dimensions of Culture The Hofstede Cultural Dimensions is an applicable framework for classifying cultural patterns Carter and Lee (2009:122). He identified five dimensions to compare cultures of different countries these are known as power distance, uncertainty avoidance, individualism and Long term Orientation (Carter and Lee, 2009). These are explained as follows: Power Distance (PD) Power distance represents the way societies treat humans on unfairness (Carter and Lee, 2009). Collectivist Countries Carter and Lee (2009:123) have high power distance as compared with individualistic societies (ibid). Almost all developing countries have a higher rating on collectivism and power distance (Carter and Lee, 2009).It is also the culture of organizations were few individuals make decisions about their functioning (ibid) were as it is the vice versa in low Power distance countries. Uncertainty Avoidance (UA) This relates to future uncertainties and how do societies try to overcome while dealing with them (Lee and Carter, 2009). Countries with High Uncertainty Avoidance are risk takers and not hard working (Carter and Lee, 2009). A high Uncertainty Avoidance transforms into an identity for a society and its norms which result in avoidance of risk taking (ibid).Thus companies have to put in their efforts into marketing and creating a positive perception of a brand or product Carter and Lee (2009:124). Individualism (IDV) Individualism means what value a society gives to individual efforts and achievements in relation to people living around that particular individual (Carter and Lee, 2009). Countries that show high individualism score show that the rights and freedom of individuals are respected (ibid). Such people are good in building relationships with people but these relationships are often characterized as being weak (Hofstede et al, 2010). Low individualism score means more collectivism and strong families (ibid).

Masculinity (MAS) It basically explains the roles of male and female members in a society where there is stereo typical difference (Carter and Lee, 2009). It explains whether societies re-enforce this role of male as being a dominant member as against females or not (Hofstede et al, 2010). High Masculinity means high gender differentiation and low masculinity means the opposite (ibid). Long Term Orientation (LTO) This is the fifth dimension in the model (Carter and Lee, 2004). This dimension was added to explain the difference of thinking between the eastern and western societies (ibid). The influence of the teachings of Confucius on the eastern value system was used as a classification for this orientation (ibid). A long term orientation would mean having determination, carefulness, to give prominence to relations in an orderly manner and finally having a sense of embarrassment (Hofstede et al, 2010). Short term orientation means stability in personality, saving grace, respecting traditions and exchanging gifts (ibid).