Speech art theory Essay Example

Speech art theory Essay In history, language was used to make certain assertions and the uses of language were highly unnoticed. There were several writers who had clarified about speech act; these include, Adolph Reinach, in 1913 had written an article describing once actions being related to their words, and unfortunately he never lived long enough to clarify his argument. In 1933, writers like Karl Buhler in his book (Sprachtheorie), and study had already talked about speech act; however very few people paid attention to his work.However, the work J.L.Austin made philosophers pay more attention to the uses of language. He tried to describe the way people do things using words. For instance, he said that words are usually followed by a certain action. He tried to clarify the difference between illocutionary and prelocutionary communication acts. He argued that the best examples of illocutionary speeches are clearly observed in performative sentences like â€Å"I promise to visit you the day after tomorro w†. The act of promising is done in saying or words. All the same, the study of speech acts is closely related pragmatics, which is part of linguistics, and it is categorized as an aspect of philosophical values or virtues.ILLOCUTIONARY ACTIs a complete communication act in a typical expression or utterance and, it is made up of statements that have intended action in them. The idea of the communication act is linked to Searle’s understanding of the act. He argued that it is a description of a proposition related to the reason behind doing something else.According to Austin, the prelocutionary acts solicit for answers and they are performed by saying something. A per locution act is followed by both locution and illocution. For instance, there are cases where the purpose of the utterance differs from actual meaning. For example, if a husband asks the wife to make the bed, and the wife responds by making it. Instead of giving the answer first of either responding â€Å" yes†. This in our case was the intended answer of the speaker.DIRECT AND INDIRECT SPEECHIn most cases, in our speeches we normally communicate with each other directly i.e. the content of the utterance may be similar with the content intended to be communicated. This forms a direct speech act.   For instance, Mary tells Tom, â€Å"can we go home it’s getting late,† The message is open and vivid to the point and we expect a direct answer.In the course of communication we normally communicate with each other, but the meaning of the linguistic approach used may differ from the message intended to be communicated, or may be communicated non verbally. For instance, Mary asks tom, â€Å"can you take me out on Friday?† .Thereby, asking tom whether he can take her out, and at the same time, to do so if he can. In this case, the utterance made indicates one performance act requiring one to perform this act, and an additional speech act which is not indicated in t he utterances. Hence the request is made indirectly. This is one way of using indirect speech acts.Secondly, they are normally used to turn down or reject proposal and make suggestions. For instance, if John asks Alex, â€Å"can we go to the library†, and Alex replies, â€Å"I will be study in my room†. In this case, Alex turned down the proposal, but indirectly as the actual meaning is not portrayed in the reply. This makes the utterance an indirect speech act.However, this poses an enormous problem to linguists as it is complicated to understand how the person who proposed knows that his/ her has been turned down. According Searle, we are able to get the definite meaning from the indirect speech through supportive process out of which we are to get compound illocutions, but the proposed processes didn’t actually solve the problem.Searle argued in indirect speech acts we have the primary and the secondary illocutions. For instance, if tom tells Mary, â€Å"Let ’s go home now† and Mary responds, â€Å"I have to see my friend first†. The primary illocution is Mary’s rejection to leave now and, the secondary illocution is the actual meaning of the statement where she says she has to see her friend first. Therefore, in indirect speech, the speaker responds by a single statement, which has a hidden and the actual meaning. He assumed that the speakers are cooperative and understand each other.Searle (pg 178) says, â€Å"In indirect speech acts the speaker communicates to the hearer more than he actually says by way of relying on their mutually shared background information, together with the general powers of rationality and inference on the part of the hearer.† Thereby, providing a prove supporting his argument through a number of observations. This include: indirect speech should not be taken as imperatives, and that they give directions.In pg 180, he says â€Å"Indirect speech act are not ambiguous as betwe en an imperative illocutionary force and a non imperative illocutionary force†. The acts should be translated without loosing their actual meaning and that they are idiomatic as they have a primary meaning. He observed that indirect speech act have a secondary illocution when their meaning is taken literally and do not have any hidden meaning. Similarly, (pg 180-183) he observed that when request is made through indirect speech act whose actual impression is similar to the request, the speaker has to grasp the meaning so as to respond accordingly. At the same time, the speaker has to respond to both primary and secondary illocution by first attending to primary illocution.Searle (pg 184) proposed a process by which we can distinguish between the primary and the secondary illocutions. One has to assume the speakers are cooperating, and know the background information surrounding their conversation. Similarly, understand the fact of their conversation and assume that the hearer has the capability respond to the request of the speaker.CLASSIFICATION OF ILLOCUTIONARY ACTIn 1975, Searle proposed the following classification of the illocutionary speech acts. These include: Expressive-these are communication acts that attempt to express the speaker’s emotions and attitude towards the proposal made. Expressions like thanks, appreciations and excuses. Directives- these are speech acts meant to give directions to the hearer or make them take a given action .These are suggestion, command and requests.Assertive: these are speech acts that assign a speaker to the actual meaning of the proposal. Commissives are speech acts that commend the speaker to some later deed. Examples are promises vows, and oaths. Declaratives are speech acts that transform the truth in accordance with the suggestion of the pronouncement. Examples are pronouncing a husband and wife, baptizing someone and pronouncing one innocent.FELICITY CONDITIONSThis refers to acknowledged predictable criteria having a predictable outcome. These procedures involve saying of certain words by a particular person under certain circumstances, and the person and the circumstances in consideration in the given situation must be accommodate the execution a particular procedure. The process should be carried out by all speakers correctly and completely. However, the procedure is intended for application by people having certain opinion and emotions or launch of a particular significant performance on the part of any participant.CRITICISMS OF THE SPEECH ACT THEORYTheory assumes any literal meaning should be compared against the non literal meaning because the linguistic meaning is supposedly sufficient for the hearer to understand the utterance, but the non linguistic meaning is also important .Implying that the expression of any statement triggers two procedures .i.e. the development of the rational outline of the utterances and the intended conclusions. Hence, there is need to consider the non linguistic meaning of any utterances, which the theory ignored.Similarly, the implicated conclusions or implicatures do not follow the use or the exploitation of maxims of conversation i.e. it has the background meaning gotten from an inferential procedure and logical nature of the speech. This implies that if the speaker and the hearer do not understand each other, it is difficult to get the intended implications of the utterance or the primary illocution, which to Searle was a bit hidden.

Harley

Harley Executive Summary The rate at which the world economy is growing is making companies to adopt management strategies which will enable them to increase their global market share as well as remain competitive and profitable in the global market. This paper will therefore discuss the various ways in which companies are shifting from their traditional means of production so that they can manage to catch up with the advanced means of production which will enable them to increase their productivity and competitiveness.Advertising We will write a custom report sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More The paper will focus on the operations of Harley-Davidson and the manner in which the company has been able to cope with the growing competition in the motorcycle industry. The paper will also illustrate the complexity that is associated with the global market and how it has influenced the performance of Harley-Davidson. The pa per will show the manner in which Harley-Davidson has adopted different management strategies that have enabled it to recover from the effects of the 2008 financial crisis. The paper will also stipulate the inefficiency that is associated with Harley-Davidson production process. It will also show the various strategies that Harley-Davidson should adopt in order to increase its competitiveness in the global market. The paper will also demonstrate how Harley-Davidson understands the competitive nature of the global market and how the company has been able to emerge as one of the most profitable companies in the America. Introduction With the rate at which the world economy is growing, companies are being forced to look for strategies which will enable them to increase their market share and hence remain competitive and profitable. Many organizations are being driven out of business because of their inability to adopt the production processes which are being adopted by the modernized c ompanies. Therefore, in order for organizations to boost their competitiveness, they are implementing strategies aimed at improving their marketing, management, and manufacturing techniques (Dess, Lumpkin, Eisner, 2009). With the complexity that is associated with the global market, businesses are implementing measures to enable them learn about effective business management strategies so that they can manage to keep producing products which meet the needs of their customers. Technology is changing together with the global market trends thereby making the tastes and preferences of consumers to change considerably. As a result, organizations are being forced to design products which meet the tastes and preferences of the modern consumer (Elliott Percy, 2007). However, they will find this strategy possible if they take time to learn about the needs of the modern customers. Organizations are therefore shifting from their traditional ideas and focusing on developing products that rhym e with the tastes of the consumers in the modern world.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The companies that have been resistant to change are finding it difficult to catch up with those companies which have incorporated technology in their production process. Though shifting from the traditional means of production is an expensive undertaking, it is worthwhile if a company wishes to remain in business for a long time. There are many companies which have been able to shift from their traditional production processes and they have hence been able to satisfy the needs of their consumers. An example of a company that has been able to shift from traditional means of production is Harley-Davidson. The company has been in existence since 1963. Since then, the company has been known to provide its customers with products that meet their specifications. The company’s main activities include the manufacture of motorcycles (Gamble Schafer, 2012). It has therefore been able to design motorcycles tailored for specific markets. The main classes of motorcycles that the company has been able to produce successfully include cruiser, touring, and performance motorcycles. These classes of motorcycles have been able to meet the different riding needs of the customers (Gamble Schafer, 2012). This paper will therefore carry out a case study analysis of Harley-Davidson and illustrate the various management strategies that the company should adopt to enable it to remain a dominant player in the motorcycle industry. The paper will also discuss the various challenges that the company has encountered while trying to take its operations to the international market as well as the effects of the global recession on the profitability and competitiveness of the company. Harley-Davidson Contemporary Strategy Analysis Company overview The revenues of Harley-Davidson declined significantly as a result of the economic recession that hit the US major markets between 2008 and 2009. The effects of the economic recession declared many people jobless while the purchasing power of the consumers also reduced significantly. The international market was also hesitant to purchase products from the US thereby reducing the number of motorcycles that Harley-Davidson sold to the overseas markets (Stermer, 2007). The effects of the global recession made the demand of motorcycles to reduce by 12.7 per cent. This reflected a 15.1 per cent reduction in the revenues that the company had made the previous year. This is an indication that the stability of the financial market plays a very important role in ensuring that the sales of a company remain constant. With the credit crunch that was encountered in 2008, Harley-Davidson was forced to finance its operations using loans (Schembri, 2009). This made the liquidity of the company to go down significantly.Advertising We will write a custom report sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More Harley-Davidson as a very profitable company Though Harley-Davidson is one of the most profitable companies in the world, the company has not been effective in its production processes. Since its establishment, the company has always been faced with the problem of insufficient production capacity. It has therefore not been able to meet the demands of its customers. This is a major weakness for any business enterprise. Customers of a company should not be made to wait for a long time for the products they demand to be processed (Schembri, 2009). However, Harley-Davidson has been unable to meet the demands of its customers. The delay in the production process has therefore made the company to lose a large number of customers. Harley-Davidson customers are forced to look for other companies that have the ability to supply the products that they dem and in time (Stermer, 2007). Therefore, to be able to retain its customers, Harley-Davidson needs to increase its production capacity to enable it supply its customers with high quality products when they demand them. Consolidating plants It is important for an organization to ensure that its manufacturing plants are consolidated at a common location in order to reduce the costs of production and also to improve the efficiency of the production process (Smit, 2000). However, the manufacturing operations of Harley-Davidson are dispersed. For example, the company manufactures its engines in Milwaukee and Wisconsin while the engines are assembled in York, Kansas City and Missouri (Fred, 2008). Therefore, in order for the company to cut down on its costs of production, it needs to develop a single facility which can manage to merge the engine manufacturing and assembly operations. This way, the company can be able to achieve a cost leadership advantage thereby enabling it to increase it s market share significantly. However, because of the company’s inability to keep its costs of production down, Harley-Davidson has been unable to expand the sales of its high-priced motorcycles outside the US market. Participating in riding activities In order for motorcycle companies to improve the riding experience of their customers, it is important for the managers and employees of different organizations to participate in organized riding activities together with their customers. This gives the customers a feeling that the products they purchase will meet their needs (Hitt, Ireland, Hoskisson, 2010). As a result, Harley-Davidson participates in HOG activities to enable it communicate with its customers (Cooney, 2005). This way, the managers and the employees are able to interact with their customers thereby convincing them about the importance of purchasing motorcycles from the company. These kinds of activities therefore serve as marketing tools for the company. Effic iency in the manufacture of different types of products A company should be efficient at manufacturing all types of products which can enable it to capture a substantial share of the market (Hopkins, 1999). However, Harley-Davidson is only efficient at manufacturing super heavy motorcycles but it is not able to design small bikes. This is an indication that the company is weak in terms of implementing certain production processes. In addition, it has been noted that the company is not able to incorporate research and development in its production process. The company also limits its ability to invest in new technology. The recent drop in the market share of Harley-Davidson can therefore be attributed to the technological backwardness of the company (Neghina , 2009). Technological backwardness is therefore a major issue that the company needs to address in order for it to increase its market share.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Importance of technology In order for a company to emerge successful in the global market, it needs to make use of the advancements in technology to enable it design products that are appealing to the customers’ eyes. Technology also facilitates the manufacture of quality and efficient products. It is therefore important for Harley-Davidson to invest in up-to-date means of production to ensure that the products it produces are efficient and that they respond to the needs of the customers. For example, it is true that the market share of Harley- Davidson motorcycles in Europe was the lowest in the year 2007 compared to the market share of Honda, Kawasaki, Suzuki, Yamaha and BMW (Hopkins, 1999). This is because the customers in Europe are more sensitive to technology while the consumers in the US market believe that Harley-Davidson incorporates the American culture in its manufacturing process. Therefore, in order for Harley-Davidson to increase its market share in the European region, it needs to make use of technology to enable it customize motorcycles for the European market. New Models A company can secure a significant market share by providing its customers with new models. Once new products are introduced in the market, the existing customers are the first to purchase the new models (Hitt, Ireland, Hoskisson, 2010). Harley-Davidson is well known for introducing new models in the market. As a result, it is able to increase its sales revenue and market share. However, this is not a very effective strategy because not all customers stand ready to replace their old models. Therefore, the introduction of new models alone may not enable the company to increase its revenue and market share to the levels that is desires. To increase its market share therefore, it is important for the company to ensure that the new models it introduces into the market incorporate the latest technology. This would motivate the customers to purchase the products and hence bo ost the company’s profitability. Emphasis on comfort The products that consumers purchase should be able to offer them comfort. It is therefore important for companies to design products which offer customers comfort while using them. Companies should therefore customize their products in a way that meets the specifications of the customers (Schembri, 2009). To increase the sales of its motorcycles therefore, Harley-Davidson customizes products for the customers who need certain specifications. Customers are therefore able to gain maximum satisfaction while riding the motorbikes. This strategy has enabled the company to win over a significant number of customers. Distribution networks The distribution network of products plays a very important role in determining whether an organization can manage to deliver products to its customers on a timely basis and at an affordable price. The channels of distribution used determine whether the customers can manage to gain access to the products that a company produces. Therefore, it is important for an organization to ensure that the distribution network it adopts makes it easy for the customers to access the products at a cheaper price. It has been noted that Harley-Davidson competitors implement distribution networks which are less costly and more efficient in Europe. As a result, the competitors have been able to acquire a larger market share in Europe because of the efficacy of their distribution networks (Cooney, 2005). Therefore, in order for Harley-Davidson to market its products in Europe successfully, it needs to carry out a study about the European market and determine which distribution network to implement. After sales services There are certain services that a business is supposed to offer in order to make people trust in the products that the organization produces. To ensure that customers keep coming back for more products, the management of Harley-Davidson ensures that the customers are accorded p re and after sales services. This way, the customers are able to get all the information and help that they need to begin using the products. In addition, Harley-Davidson offers test-ride services as well as rider instruction classes. The company also rents motorcycles to its trusted customers (Stermer, 2007). As a result, the company has been able to win the confidence of the customers thus making the customers to trust in the products that the company manufactures. This state of affairs has led to an increase in the market share of the company especially in the US. Addressing complexity The process of manufacturing motorcycles is complex. To address this complexity, Harley-Davidson created the Harley-Davidson University whose goal was to ensure that the employees within the organization became competent in dealing with all the products that the company manufactured. Since then the company has been able to boost the knowledge of its employees by showing them how they can come up wi th high quality products that would meet the needs of the customers. The company has therefore been able to manufacture motorcycles which are very competitive in the world market. It is therefore the responsibility of an organization to invest in projects which can boost its production potential. Customers are therefore confident in the motorcycles that Harley-Davidson manufactures because they are sure that the motorcycles are manufactured by experts. Diversification of business practices Before the credit crunch which hit the US market in 2008, Harley-Davidson used to give financial services such as supplying credit, insurance and extended warranties to its dealers. This activity used to generate huge profits for the company. For example, the profit that was generated from this activity was approximately 12 per cent of the total revenue. However, the credit crunch made it difficult for the company to securitize its customers loans (Neghina , 2009). Therefore, it is true that thoug h diversifying in various profit generating activities in a business enterprise is a commendable idea, it is important for an organization to ensure that it can manage to secure its customers from uncertainties. This way, the customers would be confident in the operations of the company and hence trust in the products it produces. However, the inability by Harley-Davidson to secure the loans of the customers made the customers believe that the company was not strong enough to address their needs. This state of affairs made many people to stop believing in the quality of the products that the company offers thus leading to a reduction in the company’s sales. Expanding operations to overseas markets Any company that wishes to gain recognition in the global business environment should expand its operations to overseas markets. This would increase the market share of the company and its sales revenue. However, Harley-Davidson has concentrated so much on the American market. The E uropean market share is very small. To make it easy for Harley-Davidson to acquire a substantial portion of the European motorcycle market, the company should establish headquarters in Europe which would be responsible for monitoring all the activities that the company undertakes in the region. The company should also expand its overseas dealership network. For example, Harley-Davidson made $1.75 billion non-US sales in 2008. These sales reflected 31 per cent of the revenue that the company had earned globally (Elliott Percy, 2007). This is an indication that the markets which are based out of the US also have potential to make the company become competitive. Company operations should rhyme with objectives It is the duty of every manager in any organization to ensure that the operations that the organization undertakes are in line with its objectives. For example, Harley-Davidson engages in practices such as Just-in-time scheduling, Total Quality Management, Computer Aided Manufact uring, and devolution of responsibilities to ensure that its productivity and efficiency remain high (Hopkins, 1999). Such practices are effective in that they make it possible for the manager to detect any flows within the organization and hence implement corrective measures before any serious damage can be realized. Positive relationship between employees and managers The manner in which employees relate with their managers determines whether the productivity of an organization rises or falls. The most successful organizations are known to facilitate effective communication between the employees and the managers. The employees are given the freedom to express their opinions on how they feel that their organization should be operated. Therefore, to ensure that the employees remain motivated, Harley-Davidson ensures that the managers and the employees are able to exchange ideas freely regarding how the productivity of the organization can be improved. This process has been effective in fostering cooperation between the employees and the managers thereby enabling the organization to increase its productivity and efficiency. Understanding competition Any company that wishes to succeed in the global market should understand what is meant by competition and how it can cope with it. For example, Harley-Davidson is well known for increasing its product range and geographical scope to capture a large market. However, the major challenge that is facing the company is the rate at which its products are being imitated by its competitors. In addition, competitors such as Honda, BMW, and Suzuki are known to share technology, marketing skills, engineering capabilities, and distribution knowhow thereby making it difficult for Harley-Davidson to successfully diversify the products that it offers to its customers (Hitt, Ireland, Hoskisson, 2010). This scenario is more prevalent in the European market because this is where Harley-Davidson has less impact. Conclusion From the analysis therefore, it is evident that Harley-Davidson is one of the most successful motorcycle companies in America. Though the company is one of the most profitable companies in the world, there are various key measures that the company should implement to enable it compete effectively in the global market. The company should ensure that it embraces technology, foster positive relationship between the employees and the managers, diversify its products range, expand operations to overseas markets, give the customers pre and after sales services, lower costs of production, seek loyalty from customers, and ensure that it offers the consumers new products and models. This way, the company will be able to increase its competitiveness in the global market. Reference List Cooney, J 2005, Why and How Harley-Davidson has Maintained Consumer Brand Loyalty. Web. Dess, G G, Lumpkin, G T Eisner, A 2009, Strategic Management: Creating Competitive Advantages, McGraw-Hill Irwin, London. Elliott, R Percy, L 2007, Strategic Brand Management, Oxford University Press, Oxford. Fred, A 2008, Harley Davidson Case Study Building Brand Communities. Web. Gamble, J E Schafer, R 2012, Harley-Davidson. Web. Hitt, M A, Ireland, R D Hoskisson, R E 2010, Strategic Management: Competitiveness and Globalization Concepts, Cengage Learning, New York. Hopkins, H D 1999, Using history for strategic problem-solving: The Harley-Davidson effect, Business Horizons, vol. 42, no. 2, pp. 52-60. Neghina , C 2009, Harley Davidson Case Study Building Brand Communities. Web. Schembri, S 2009, Reframing brand experience: The experiential meaning of Harley–Davidson. Journal of Business Research, vol. 62, no. 12, pp. 1299–1310. Smit, P J 2000, Strategy Implementation: Readings, Juta and Company Ltd, New York. Stermer, B 2007, Harley-Davidson Motorcycles: Everything You Need to Know, MotorBooks International, New York. Harley Background Marketing is an important exercise in both services and goods industry; it ensures that target customers access goods and services a company manufactures. Marketing involves processes that determine the kind of products or/and services of interest to customer then the company knows exactly what to manufacture or trade in.Advertising We will write a custom research paper sample on Harley-Davidson Motor Company Marketing Plan specifically for you for only $16.05 $11/page Learn More Other than advising a company on the kind of products to make, marketing goes further and establishes the right method, channels, strategies and systems to get the products/services to target market (Mullins, Walker, 2010). The American motor cycle industry is one of the fast growing economic sectors where motor cycles are used for various functions like trade, transport, sporting, as security officials automobiles, and sometimes for leisure. Harley is an international mo tor cycle manufacturing company based in the United States of America; the company is respected for making reliable heavyweight (over 750 cc) motorcycles and genuine motorcycle accessories. The automobile industry has been ventured by cheap aftermarket sales that compete with original accessories; the market is favoured by the cost and the room for customizing once motor vehicles offered by the automobile. The challenge by the secondary industry offers a challenge to Harley-Davidson Motor Company; report is a marketing plan that the company can adopt to compete effectively in the market. Company overview Harley-Davidson Motor Company was founded in 1903 by three childhood friends by the names William Harley, Arthur and Walter Davidson; the initial idea was to make racing bikes with engines however they advanced their idea to have the bikes used for transport. In 1905, the company had started to be recognized and advertising its products in media in the United States; currently the c ompany has its head quarters at Milwaukee, Wisconsin, United States and headed Keith E. Wendell, the company’s chief executive officer.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In 2010, the company recorded total sales of US$ 4.46 billion which translated to US$ 259.7 million; of the amount about thirty percent was derived from sale to foreign markets. As at December 2010, the company had 6302 members of staffs distributed in its outlets (Harley Official Website, 2011). Executive Summary No single statement can explain what is marketing; briefly, it is a link between customers and a company, the feedback from either side is crucial in improving goods and services produced. Harley-Davidson Motor Company is facing an increasing competition from aftermarket accessories, thus the marketing team has found it important to develop a marketing plan to form the base of an aggressive marketing for the products. The main target market that the plan will focus on are existing customers, which the plan will embrace customer relation management strategies to build, maintain and manage customer loyalty; the second fold will focus on automobile users where the company will aim at convincing buyers to use its genuine parts; this will embrace strategic marketing tools like communication marketing strategies (MARCOM). The last target market that the company will focus is diversification of its market base, to use this approach; the company will make use of blue ocean marketing strategies. The report will also include the suggested marketing budget for the launch of the strategy. Target Market The campaign strategy will be divided into three main target groups differentiated by their behaviour as far as use of Harley-Davidson Motor Company spare parts and those from after market sellers. The first category encompasses customers of Harley-Davidson Motor Co mpany spare parts; they can be seen as people who have loyal to the company and have the characteristic of using genuine products. The main focus on these customers involves enacting measures to maintain current market base and improve the relationship with the customers. The main activities that will take place focusing on this target market are the following: measure approach; this is an approach where information from customers is collected; the information is on the level of satisfaction that customers are getting from the company.Advertising We will write a custom research paper sample on Harley-Davidson Motor Company Marketing Plan specifically for you for only $16.05 $11/page Learn More The second move will be to manage products and service delivery, what the customers are finding as correctly done should be reinforced and what they find as wanting should be rectified. With the feedback from the customers, then the company can decide on ways to impro ve service delivery; by service delivery, the company should be interested on the level of service that aftermarket accessories suppliers are giving then aim at surpassing the level set. The second target market segment that the company will be looking at is the â€Å"undecided customers†, they are people who buy either Harley-Davidson Motor Company genuine spare parts or sometimes buy after market products. The reason for their behaviour should be determined by a market research. It is likely that they buy the available product, thus policies that make genuine parts available should be made. The third target market that the management should look into is the untapped market; this is market that is less competitive with the aftermarket products. To venture into this, it can be through robust marketing campaigns that sells both bikes and spare parts. The company can decide to open its own market where they sell bikes then later on reinforce the use of genuine spare parts. Comp etitors The main competitors that the company will have to deal with are aftermarket sellers; they are people who sell spare parts or body and engine parts that can fit certain models of Harley-Davidson products. There are many reasons why some people prefer to use these products other than using the genuine parts. One of the post quoted reason why some people prefer after market products is because they are made by specialists thus they are of high quality, other people prefer them because they are less costly than genuine parts. The above two reasons happens to be the strength of competitors; Harley-Davidson company should embrace the challenge and aim at countering the strengths of the companies. To challenge the competitors, the company should venture in programs that improve the quality of their spare parts, in the case there is a certain modification that can breakeven when made as an accessory, and then the company should adopt such an accessory.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Price has always been an issue when marketing for commodities, there may come sometimes that Harley-Davidson products are expensive than those of the aftermarket, the management has two interventions to make; one ensure than the price of accessories represent value for money. The second intervention that the company should ensure is that it has attained high quality products and efficiency in their products. The best weapon to counter competition rests in understanding customers, providing high quality products, aggressive marketing that educate users on differences, and products differentiation. Product or Service The subject of the matter in this marketing plan is the sale of genuine motor cycle parts; the accessories involve engine parts, body parts, and other related accessories like bolts and nuts. When creating the products, the company should be aware of the model and the demand that the parts will have in a specific area. The products aims at offering repair accessories owne rs of Harley-Davidson products, it aims at winning customer loyalty in the market filled with aftermarket products. Different model of bikes require different repairs parts, thus they need to be made available; one of the main characteristic that the product will be selling to the people is its originality, quality, guarantees, and genuineness. When developing and improving the products, the sales book will of great use as it will help the company analysis the market, on where is a certain product or certain model of bike; with the clear understanding, and then campaigns will be focused on the particular area that has a certain machine (Vorhies, Morgan Autry, 2009). Marketing Budget When making a marketing strategy, there is need to develop the budget that various activities involved will fall under. Budget follows some costs heads that is a consolidate figure involving different individual costs. The following budget will be incurred: Activity Cost (US $) Research and collect ion of data 20,000 Staffs subsistence and other fixed costs 10,000 Experts and professional fees 500 Structure and infrastructures laying 5,000 Policies support costs (they include costs of advertising, promotion etc) 5,500 Follow up costs 500 Total 41,500 The above costs heads involves costs that can be classified under the heading. Description of Location Since there are different models of bikes, the location of market will be determined by the model and type of spare parts that may be applicable to the particular area. When the above has been determined, the locations that will make them accessible will be determined by the marketing team. Some of the suggested places that the parts can be stocked include garages, supermarkets, automobiles accessories shops, and the bikes distributing channels. The main reason for determining the location is to ensure that the goods reach to the target customer at the right time in a form that is acceptable. With the suggested pla ce in mind, the marketing team should come up with the best transport, supply and logistics methods that should be implemented to get the goods to the customers. The right channel of communication should ensure that the company’s products get to the target market in the shortest time possible. The nature of some of Harley-Davidson products users is that they are likely to attend motor shows and other promotional events, the management should set a budget that can be used to market the products one on one in these places (Lyus, Rogers Simms, 2011). Pricing Strategy Price is an important marketing parameter that should be looked into when making a marketing strategy; it is through the price of a commodity that the company meets its expenses and gets a gain form the sale. There are two main elements that an effective price should have; the price should be high enough that the company will get some profit from the sale and the price must be affordable. Harley-Davidson products m arketing team will have to undertake a market price review where they will compare the costs and prices that competitors are able to sell, when they note them, they can work back and set their prices. In the situation of Harley-Davidson products, the best pricing approach to use is the premium pricing approach, under the method the management sets a price that is slightly higher than the prevailing price; the reason for the high price is both psychological and economical. From the psychological part, some people believe that quality is expensive thus they are likely to buy the products; the second reason is because the price set should represent quality offered by the company (Hsuen-Ho Jia-Wei, 2010). Summary and Implementation Plan The implementation stage has a number of processes that will be involved, they are as follows: Marketing research Marketing research involves the marketing team undertaking a desk and field research that determines the company’s rate of performan ce verses the rate at which aftermarket products are selling. The information offers the background that the strategy will be built on; the gaps realized should be analysed and meanings derived from them. The initial market research offers the team an overview of the areas they should address in the strategy. Analysis of data The initial stage was involved in the team collecting volumes of qualitative and quantitative data; the data from customers, bureaus, and internal information and industry reports should be reviewed to ensure that the problem that the company is facing is well understood. It is through problem and gap analysis that the company can come up with the most effective solutions. Strategy development With the data and problem well interpolated, there is need to have systems that are focused on the problem. The three main target markets needs different approach thus the marketing team should be clear on the approach to use and at which point they will have to quality a certain employee to the next higher level. Policy enactment and implementation Specific strategies to address a certain issue needs to be enacted through policies and infrastructures; the infrastructures needs to be put in place. For example to maintain customers there is need to have effective communication systems where the company can get feedback on various issues. Enforcing, monitoring and controlling When all is good to go, the management should ensure that it has enacted policies to maintain an improved relationship with customers. The policies enacted should be improved appropriately so that they do not fall out of relevance. In the implementation stage, the management should have the policy of marketing mix in mind; the following sample of an applicable marketing mix can be used: Diagram 1: The above diagram gives a guide of the areas that the management should look into when enacting the marketing strategy (Day, 2011). Conclusion An effective marketing strategy is a comp etitive advantage tool; Harley-Davidson Motor Company should embrace tools of strategic marketing to remain competitive amidst increased suppliers of aftermarket repair accessories. The company should embark on effective communication campaigns that create awareness and differentiation of its products; it should also embrace the concept of â€Å"Blue Ocean† to widen its market base indirectly. For an effective marketing campaign that can stand competition, Harley-Davidson Motor top and line managers need to support efforts made by the marketing department; on the other hand the marketing department should work closely with research and development segment for more informed decisions. References Day, G. (2011). Closing the Marketing Capabilities Gap. Journal of Marketing, 75(4), 183-195. Harley Official Website.(2011). Harley-Davidson Motor Company. Retrieved from https://www.harley-davidson.com/us/en/index.html Hsuen-Ho, H., Jia-Wei, T. (2010). A Model of Marketing Strategic Alliances To Develop Long-Term Relationships for Retailing. International Journal of Business Information, 5(2), 151-172. Lyus, D., Rogers, B., Simms, C. (2011). The role of sales and marketing integration in improving strategic responsiveness to market change. Journal of Database Marketing Customer Strategy Management, 18(1), 39-49. Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach. Boston: McGraw-Hill Irwin. Vorhies, D. W., Morgan, R. E., Autry, C. W. (2009). Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Management Journal, 30(12), 1310-1334. Harley Overview The onset of the 21st century saw the inception of the Harley-Davidson Motorcycle Company. The motorcycle manufacturing firm started off its operations in Wisconsin, United States of America (Harley-Davidson, 2006). Although it had a small beginning, Harley-Davidson has grown to be a renowned global market leader in the manufacture and sell of heavy duty monocycles.Advertising We will write a custom assessment sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More The company successfully went through the hard economic times of the 1920s, which was largely contributed by its unwavering strong background in leadership, marketing and customer satisfaction (Armstrong Kotler, 2011). One of the major challenges faced by Harley-Davidson in its history of successful operation in United States is when the government failed to instituted as well as monitor market forces of demand and as well as quality checks which led to the inf lux of cheap imports into the U.S market. However, this just marked the beginning of a long journey for Harley-Davidson bearing in mind that the motorcycle manufacturer continued with the uninterrupted production of motorcycles with engine capacities above 750cc (Harley-Davidson, 2006). Customer satisfaction was and has been key to this overwhelming market presence. On the other hand, Harley-Davidson is still struggling to penetrate the lightweight motorcycle market. The competition is tough in this line of production and unless the company transforms its value proposition, it may completely miss out on the yet to be tapped profitable lightweight motorcycle market. In this paper, the case study of Harley Davidson has been discussed in terms of the marketing capabilities of the company (Harley-Davidson, 2006). In addition, some marketing strategies that can be adopted by the motorcycle firm have been proposed using relevant marketing theories. Harley-Davidson case study summary and m arketing theories One of the outstanding features of Harley-Davidson is the creation of brand loyalty among its chronic customers. As part of its fundamental marketing strategy, the company has developed a culture of consistent liking and consumption of its heavyweight motorcycles among the long term customers.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As a result, it has managed to maintain its clients for a considerably long period of time in spite of the ever prevailing market competition (Armstrong Kotler, 2011). The most integral ideal being cherished towards customer loyalty is the ability of the company to critically consider the needs of its consumers. Harley-Davidson has a strong belief that customers from its most valuable asset add therefore should always be given the first priority. The department of marketing has put up efforts of reaching out not only the old customers but also the high end market that has not been tapped yet. In order to achieve the best customer loyalty, it has taken the marketing department significant amount of time to study and analyze the needs, tastes and preferences of consumers. The ease with which customers can purchase Harley-Davidson products has been enhanced. In any case, the company believes in serving its customers with a touch of their emotions. In other words, passion drives the marketability of the heavy duty motorcycles (Armstrong Kotler, 2011). The feelings of customers are studied, their perceptions and reactions towards the company products are also evaluated in a regular customer care initiative. Due to such an approach in marketing, the management at Harley-Davidson is quite convinced that they will also venture and conquer the light duty motorcycle market. Moreover, the marketing strategy is also viewed as the reason for the success behind the Harley Owners Group (HOG) that has grown to a 900,000 membership scheme. The sale of motorcycles per se is not the sole duty of Harley-Davidson; the motorcycle manufacturing firm has laid more emphasis on the needs of its customers to experience independence and a free purchasing environment. Customers should feel to be buying Harley-Davidson products without being coerced or technically convinced through advertisement without their own will. If this philosophy is anything to go by, then it implies that Harley-Davidson has a cultivated a buying culture of its motorcycles, a phenomenon absent in other brands (Armstrong Kotler, 2011). Therefore, customer experience, according to Harley-Davidson, goes beyond the manufacture and sale of motorcycles; it is a unique lifestyle of its own kind.Advertising We will write a custom assessment sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More Customers do not just buy for the sake of meeting their needs; they also do it as part and parcel of their lifestyle. Marketing a brand as a lifestyle product is an uphill task, so to speak. Harley-Davidson is not naà ¯ve of this fact. Consequently, the motorcycle manufacturing firm has set up rigorous marketing tools and devices to enable it maintain and reach out for the untapped markets. Through its marketing department, the company has imitated a high-powered team of individuals charged with the responsibility of marketing Harley-Davidson brand. For instance, there are quite a number of travel adventures that the firm has organized in the past. These adventures are meant to develop consumption and liking culture for its products. Both the existing and non-customers are usually invited to take part. The company also offers other after-sale services to customers. The marketing strategy adopted by Harley-Davidson is not void of relevant marketing theories in daily practice. Firstly, the brand name ‘Harley-Davidson’ has proved to be a very effective auto ma rketing tool for several decades now. Customers have been deriving satisfaction out of the motorcycles manufactured by the company. the fact they have built formidable trust around the brand of the company makes it possible for them to remain loyal in their purchases (Harley-Davidson, 2006). In addition, the consumption experience by Harley-Davidson’s customers is one of its own kind since the firm makes sure that the general and imperative needs of the customers are catered for. it is against this backdrop that the company’s brand name is not only popular, it is also a household name that both active and potential customers would like to identify with. On the same note, decision making by customers is yet another area that the marketing department has put more focus on. It is crucial to observe that the purchasing trend of customers is largely driven by the nature of decisions they make (Kotler, Roberto Lee, 2002). This can be explained from the utility theory of dec ision making.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The utility is paramount in marketing. Consumers will consider the best outcomes as the main driver to their decision making (Gilmore, 2003). The theory tends to perceive customers as rational beings who are not skewed on their choices but would rather settle at a particular brand since the anticipated results suit their needs well. Hence, optimum benefit is instrumental for customers. The utility theory is pragmatic on the usefulness of the product being purchased rather than the cost price of the product. Indeed, Harley-Davidson has taken this into consideration since the company has ensured that its heavy duty motorcycles are not just within the expected standards by customers but also of high quality. This has been laced with the marketing philosophy of selling with passion and touching the customers’ feelings right at the point of sale. However, consumers may lack rationality when making purchasing decisions in some cases (Baker Saren, 2010). Besides, the various intrin sic inputs that may influence decision making patterns when buying may not be easily recognized by customers. Such a limitation among customers when making decisions may not be fully addressed by utility theory. Hence, satisficing can be used to flesh up the limitations of utility theory. The satisficing model elaborates that the process of decision making does not continues once the anticipated outcomes are met. Drawing from the Harley-Davidson marketing experience, there is a higher probability that its chronic customers do no longer makes purchasing decisions when acquiring their purchases from the company since they are outside the brackets of utility theory. At this juncture, it is worthy to note that successful marketing should go beyond utility theory. Consumers can remain loyal to a particular brand irrespective of stiff competition from market rivals. Similarly, the use of a marketing theory referred to as consideration is a vital tool in marketing strategies. According to the theory of consideration, customers play an equally integral role as the identity of a business organisation (Gummesson, 2002). The theory further stresses that the decision making process by a firm should consider the relative value of consumers since they form a subset of a firm without which any decisions made may lack utility. The Harley-Davidson video case study emphasizes the momentous contribution and role of customers in the company. All the strategies are developed around the consumption experience of consumers. The marketing theory of involvement is yet another strong standing point for Harley-Davidson (Kleinaltenkamp Ehret, 2006). One way of attracting and sustaining the attention of customers is by involving them in most company activities that elicit fun and great feeling. The management at Harley-Davidson has made every attempt to involve its pool of customers as well as the prospective ones in lively activities like adventurous riding exercises. Sponsorship of suc h events by Harley-Davidson is a marketing decision I the right step. As mentioned earlier, the motorcycle manufacturing firm is not merely buying the advertising space for marketing its products; it is also in the process of creating a consumption culture of its heavyweight motorcycles alongside building a lifestyle from it. Case study questions How does Harley-Davidson build long term customer relationship? The management at Harley-Davidson value customer relationship as the foundation of business growth. In achieving this, two main building blocks are used. To begin with, the company employs customer satisfaction in its bid to create long term relationships. Unless customers are satisfied by the services and products on offer, it will be practically impossible to maintain their loyalty for long. Secondly, Harley-Davidson is very critical on the value of customers. It is common knowledge that customers who are treated with dignity, a sense of passion as well as liberty are highly likely to remain put with a particular brand (Sheth, 2006). The company values the choice, liberty and independence of its customers, attributes that go a long way in enhancing customer value. Moreover, Harley-Davidson has also made use of the Harley Owners Group (HOG) as a building block for long term customer relationship. For instance, the company has from time to time organized and sponsored outdoor events to boost the relationship between the company and customers and also among customers themselves. Besides, the numerous publications by the company have been viable outreach tool for harnessing customer relationship. What is Harley-Davidson’s value proposition? One of the value propositions for the company is that the price tag is rather on the higher end. The sale of heavy duty motorcycles costs more than the sale of lighter ones with engines capacities below 750cc. although the high price tag may be viewed as slightly disadvantageous to the company; it is indeed the bu siness strategy for Harley-Davidson. Specializing in this line of production attracts the high end of the market. This may be more profitable than dealing with lighter machineries. Besides, the motorcycles cannot be used during bad weather in addition to the fact that there are usually non-monetary costs associated with safe keeping of the motorcycles is yet another value proposition for the company. Nonetheless, the best value proposition should be the benefits received by the consumers of Harley-Davidson brand. Joanne Bischmann in the video case study attempts to emphasize the value received by customers (Harley-Davidson, 2006). As note in the video, customers stand to benefit from freedom, free will, and self-expression as well as the fun and full enjoyment brought about by the company products. Customers are not just buying the motorcycles, they are also interested with the value proposition derived from the purchases. Relate the concept of customer equity to Harley-Davidson. Ho w does Harley-Davidson’s strategy focus on the right relationships with the right customers? Customer equity is well covered under the derived profits as well as loyalty. There are other numerous possibilities through which Harley-Davidson could derive its profits. However, the company is not merely focusing on the other varied channels; it has laid more emphasis on building long term customer relationship through authenticated friendship. Its chronic customers who should also be profitable is the core concern for the company in as far as customer equity is concerned. This profitability is derived from the high-margin products from Harley-Davidson. As part of focusing on the right customer relationships, the company has largely focused on the delivery of three main marketing variables namely customer value, brand stability as well as retention equities. In order to maintain the brand quality and focusing towards the right customer relationship, Harley-Davidson continually ins pects and modifies its products to meet the expectations and needs of customers. Recommendations In spite of the global presence of Harley-Davidson in the manufacture and sale of heavy duty motorcycles, the company can still make a few more strides in capturing both the high and low-end markets. Firstly, Harley-Davidson should devise other competitive marketing strategies that will successfully land them in the light commercial motorcycles bearing in mind that the previous attempts by the company to venture into this market failed. This can be achieved by changing the consumption culture of its long term customers (Baker, Graham Harker, 1998). They should be educated on the relative benefits of embracing lighter motorcycles. The value proposition for the company should go beyond passion for its customers. It is vital for Harley-Davidson to focus on new markets through rigorous marketing campaigns like the internet, billboards and other mass media channels (Wierenga, 2008). Relying on old customers per se may not be sustainable for a long period of time. Finally, Harley-Davidson should also diversify its production portfolio as one way of minimizing market risks. The company can attain this by incorporating the manufacturing of both the heavy and light commercial motorcycles in its plant. References Armstrong, G. Kotler, P. ( 2011). Marketing: an introduction, (10th ed.), New York: Pearson Prentice Hall. Baker, J.M., Graham, P. Harker, D. (1998). Marketing: managerial foundations, South Yarra: Macmillan Publishers. Baker, J.M. Saren, M. (2010). Marketing Theory: A Student Text, London: Sage Publications. Gilmore, A. (2003). Services marketing and management, London: Sage Publications. Gummesson, E. (2002). Total relationship marketing, Oxford: Elsevier Science. Harley-Davidson (2006). Video Case. Web. Kleinaltenkamp, M. Ehret, M. (2006).Relationship theory and business markets Journal of business and industrial Marketing, 21(2): 63-64. Kotler, P., Roberto, N. Lee, N. (2002). Social marketing: improving the quality of life, London: Sage Publications. Sheth, N.J. (2006). Does marketing need reform?: fresh perspectives on the future, New York: M.E. Sharpe Inc. Wierenga, B. (2008). Handbook of marketing decision models, Rotterdam: Springer Science.

Current Diverse Environmental Events Essay Example | Topics and Well Written Essays - 500 words

Current Diverse Environmental Events - Essay Example According to Davis (1), a ban must exist on activities that emit CO2. This article implies that there can be maintenance of climate change using appropriate technology. Such technologies include the introduction of wedges. Throughout this article, there are suggestions that current technologies are insufficient in the reduction of carbon emissions. The creation of new ways to manage dangerous emissions is extremely necessary. This article recommends that there needs to be establishment of policies that would reduce these emissions. For example, the article implies that policies need to conduct advanced research that will probably discover safe ways of creating energy. There also needs to be additional efforts that will reduce all these emissions that keep affecting the environment. Another article by the US Department of Energy reports the benefits of proper carbon dioxide storage. Hakun (1) depicts that it is possible for permanent arrest of diverse green house gases. The article al so states that the available storage spaces in the US can arrest these gases from their respective sources. An example of CO2 storage facility is the atlas 4 that has current updates on the emissions. This article explains the details of the atlas that include the following. The first is the ability of the atlas to detect all the locations of potential carbon dioxide deposits. The final article by Eisenberg suggests that people need to check the emissions of CO2 in the air. This is because there is an extremely rapid growth in the levels of C02 emissions across the globe. In this article, she reports the relevance of carbon engineering to the environment. The article further explains that it is possible for industries to store these gases and later sell them. She highlights diverse ways of harvesting CO2 and proves that the entire process is advantageous. In the article, one notices that direct air capture of CO2.

Assignment #2 - Case Study Example | Topics and Well Written Essays - 1250 words

#2 - Case Study - Assignment Example army to caused skin burns and still births. Yes that is right; it was Dow that was actually responsible for â€Å"the Silent Spring†. Further, the company also owns the manufacturing unit that resulted in greatest industrial failure in the history, which lead to the death toll of over three thousand Indians in Bhopal; and it also left several unwanted problems for the next generations. One of the recent events that involved Dow Chemicals was discharge of industrial effluents into the air and water supplies in the vicinity of the company’s Midland complex in Michigan. Dow was held liable for violating Clean Air Act rules, and for disobeying the Clean Water Act. Further, the government also held the company for releasing harmful chemicals into the environment without a permit. The issue was brought to the considerations during 2006-07; however, after several delays and trials, the company agreed to pay $ 2.5 million in 2011, for the sake of compensation. In 2010 the annua l release of toxic compounds by Dow’s Midland facility was 275,912 pounds. According to an environmentalist based at the Michigan State University, the company earned a profit of $ 6.2 billion during the time while the production facility was discharging contaminants without permission (Weiss, 2008). The stakeholders include the people living in the vicinity of the production houses, the state that has allowed the company to operate, general public, media, the employees at Dow, and the Dow Chemical Company. People living close to these production houses are directly exposed to the harmful chemicals that released by these industrial units into the environment. These contaminants can have lethal effects on the population residing in the suburbs. In case of the recent activities, the major subjects under the exposure of contaminants were the residents of Midland, Michigan (Weiss, 2008). The side effects of these contaminants can be direct or indirect. The second stakeholder in

Principles Of Marketing Management Chocolate in the UK Essay

Principles Of Marketing Management Chocolate in the UK - Essay Example Thorntons' website is a strong source of sales and allows customers to pick and chose chocolates. Thorntors also promotes its new products readily. Unique season based product packages such as wedding favours are also highly demanded. The company provides chocolates of various ranges including Belgian, Winter, Viennese,etc. Chocolates of various types such as milk chocolate, dark chocolate, mint chocolate, etc., are also available for customers This research paper seeks to analyze the current market standing of the company via a comprehensive swot analysis. The findings of this analysis shall be used to frame the marketing and positioning strategies of the company. Thorntors chocolate has been in the UK market for over 100 years and possesses a turnover of 210 million pounds in the year 2008. Along with general retail outlets, Thorntons also sells its products through the internet, mail order and by using other commercial services. Analyzing Thontorns in depth:- Thorntors poses a challenging test to any marketer. The company boasts of its legacy, however, it faces increasing competition from newer entrants that threaten to torment its reign as a top chocolate company. A swot analysis of the company shall help understand aspects that it can rely on and things it needs to work on to cement its position as the top chocolate company.... 6) Premium brand positioning. Weaknesses 1)Retail Outlets’ failure to meet targets. 2)No customized products at retail stores. 3)History of problems with hand finished chocolates. 4)Weak performance by OWN Stores channel. Opportunities 1)Export market potential. 2)Product Innovation to counter economic downturn. 3)Discovery of new ranges such as biscuit desserts can help enhance brand equity. Threats 1)Fluctuating raw material and dairy prices. 2)Rising inflation and affordability issues. 3)Economic downturn and customer’s changing preferences. 4)Failure to address retail sales issue before competitors can gain advantage. Target Market and Seeking new opportunities:- Thorntons is a premium brand of chocolate that has established considerable brand equity over the 99 years of its existence. While the company welcomes and appreciates every walk in customer, there are specific people it targets with each of its innovative products. Kingston Upon Hull is the market that Tho rntons seeks to capure this Christmas. The city is located in the East Riding of Yorkshire and has a population of around a quarter of a million people. Hull is home to around 97% local residents while a small minority group of within 1000 people reside in the entire city. The city boasts a high percentage of people who use personal transport over public transport and the economic conditions of the people are relatively good. There is however, a 6.2% unemployment rate which acts as a threat to potential market. Hull is also home to several types of restaurants, including Chinese, English, French, Italian etc (Hull and East Reading, 2011).The city acts as a busy port and economy is built around trading and seafaring. Considering the company’s premium positioning, it will

Transferring Capital Or Funds From Savers To Borrowers

Transferring Capital Or Funds From Savers To Borrowers The financial institution is the process to provide the financial service to the people. It can also say is the institution collecting the funds from the public into the financial assets. It also verifies by the government, so it is safe for the people to using. The main function of the financial institution transfers the capital between savers and those who need capital. The financial activities and function provide by the financial institution are bonds, debentures, stocks, loans, risk diversification, insurance, hedging, retirement planning, investment, portfolio management, and many other types of related functions. The way use by financial institution to transfer the fund can be defined by 3 ways; there are direct transfers, indirect transfer and financial intermediaries. The first way of a financial institution is Direct transfer can also call ask direct transfers of money and securities. Direct transfer means the organization sells its stocks or bond directly to savers and without any type of financial institution. For example, the party A and B is the relatives and the parties A want to transfer the money to invest the party B organization by using direct transfer; it is without any financial institution or financial market so this is call direct transfer. The advantage of direct transfer is saving the money, it because using direct transfer is without any taxable. Direct transfer is without any taxable because direct transfer is a process straight transfers the money to other account and is wont going through any financial institution so the government will not charge the tax because government is not know about it. The disadvantage of using direct transfer is complex. It is possible become complex because direct transfer is making by the two part y without any financial institution and it not have the professional person to help properly transfer the money and making the agreement, so in future maybe will happen conflict between the parties. The second way for transferring capital or fund from savers to borrowers in the financial market is indirect transfer by using banking house. Indirect transfer is a process to transfer the capital or funds through the financial institution such as investment banking house. Investment banking house is like the agency to help the organization to transfers the bond or stock into the money. It normally use by an organization that underwrites and distributes new investment securities to help the organization obtain their financial. An underwriter serves as a middleman and facilitates the issuance of securities to the investor. For example, an organization sells the stocks or bonds to the investment bank and investment bank sells these same securities to the savers. The advantage of this financial institution is more efficient and fast to transfer the bond or stock into the financial assets. It is because investment bank has required the professionals to given the organization accurate information and help organization to make the transfer process more efficient and wont getting problem. The disadvantage of investment banking house is need to spend more time to wait the process done by the investment banking house. It is because company need to waiting the investment banker sell the bond or stock into the money. The banker could not be estimate when can sell the bond and stock to the saver. Next, investment banking house give more confidence to the saver. Investment banker will provide fully information about company to saver review and give professional guideline about the investment to avoid wrong investment. Therefore, the investment risk will decrease and the percentages of faced loss also will be reduce by using the investment banking, but it will increase the cost because need to pay the intermediaries fees. The third way for transferring capital or fund from savers to borrowers in the financial market is indirect transfer buy using financial intermediaries. The indirect financial institution can be separated into three types such as Investment Intermediaries, Contractual Saving Institutions, and Depository Institutions. Financial intermediary is an institution that acts as the middleman between investors and firms raising funds. Financial intermediary will using the funds from the saver to purchase other securities from other organization and hold it for gain the profitability. The three major functions of the financial intermediaries are maturity transformation, risk transformation and convenience denomination. Maturity transformation is converting short term liabilities to long term assets. Risk transformation is converting risky investments into relatively risk-free ones. Convenience denomination is matching small deposits with large loans and large deposits with small loans. Financial intermediaries accept the saver to use the loan or securities to invest their funds. The financial intermediaries will provide the loan plan to the saver to properly using the loan to invest. Financial intermediaries can help to reduce the time. It is because financial intermediaries can transfer the financial assets into the money by the faster way. This is mean financial intermediaries will buy the assets from the customer and sells it in future, so it can reduce the time because some of the assets need longer of period to sell it or transfer into the money. Therefore, some of the people will use financial intermediaries to solve their emergence financial problem. Financial intermediaries can also help the saver to reduce the transaction cost such as consulting fee for getting information. In this situation, financial intermediaries will provide the completely information or professional advice to help the investors making the decision. Financial institution can be separa ted into three types such as Investment Intermediaries, Contractual Saving Institutions, and Depository Institutions. Depository institution is a channel to receive the funds from the public or manage their funds to invest other organization to gain the profit. When gain the profit Depository institution will return some interest to the people who are invest the funds in the depository institution. Depository institution can be defined in few types, there are commercial banks, savings and loan associated credit union and mutual saving bank. Commercial bank is the financial institutions provide the loan, saving, transactional, money market account, insurance, and stock brokerage service to the public. The examples of the commercial bank in the Malaysia are Affin Bank, Arab-Malaysian Banking Group, Bank Simpanan Nasional (BSN), Citibank Malaysia, Exim Bank Malaysia, Hong Leong Bank and other. The advantage of using the commercial bank is the risk is lower. It is because commercial bank has stronger financial background, so it will not easy bankrupt or facing the financial problem such as facing loss in investment. The disadvantage of the commercial bank is the percentage of interest maybe lower than other financial institution. For example, interest rate provide by the insurance institution always higher than the commercial bank. Moreover, a savings and loan association (or SL), also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. Mortgage means using the something such as house, land or assets to make the loan with the savings and loan association. If the people cannot pay back the loan, the house will be taken over by the savings and loan association. The advantage of the savings and loan association is interest of saving deposit is higher than the commercial bank. Therefore, people will choose it to saving their money to gain more interest. In the additional, mutual savings bank is also a type of thrift institution. The function just seems like saving and loan associations which obtain the funds from other and make loan such as mortgage loan. Credit union is a non-profit financial institution that is owned and operated entirely by a group of members such as employee. Credit unions provide financial services for their members, including savings and lending. The condition to join a credit union is a person must ordinarily belong to a participating organization. When a person deposits money in a credit union, the person will become the member of the credit union. Last, contractual saving institution is an institution that obtains funds at periodic intervals on a basis contractual. It is normally use for the longer period of time. It is mean if the contract dead line is not yet reach, the saver cannot taking back the money from the contractual saving institution. Contractual saving institution can be defines into two types, there are insurance institution and pension institution. Insurance institution normally provide some of insurance services such as investment insurance, life insurance, endowment insurance, accident insurance and other. Examples of the insurance institution in Malaysia are Potential, AIA, Am insurance, Greaten Eastern and some more. Pension Institution is an associated that collects the funds from the retired person to help them invest the funds and getting back the interest or profit. In conclusion, using indirect transfer way is more efficient and safe then using the direct transfer way. Indirect transfers way have more benefit to the user. It also provides more service to the user. So, based on my opinion, I encourage the people to using indirect transfer way to manage money or making the loan.

Malcolm X Essay -- History

Malcolm X Malcolm X, a civil rights leader in the 1960's believed that blacks and whites should be segregated. He also believed that white man was evil and were trying to brainwash all blacks and that Martin Luther King's "non-violent protests" weren't working and that violence was needed for change. Malcolm X's life was a life with a lot of conflict and violence in it. Malcolm X was born under the name of Malcolm Little in Omaha, Nebraska in 1925. His father was a baptist minister and an outspoken follower of Marcus Garvey, the black nationalist leader of the 1920s who preached that all blacks should leave the US and go back to Africa. While Malcolm's father was away and Malcolm's mother was pregnant with Malcolm, a group of KKK members came to their house and told Mrs. Little to send out her husband. She came out of the house and stood where all the KKK could see that she was pregnant and told them that Mr. Little was in Milwaukee preaching. The KKK, disappointed, shouted threats and told them to leave town. After this they broke every window in the Little's home and left. When Mr. Little came home and heard what happened, he decided to move as soon a Malcolm was born to Lansing, Michigan. Here was where Malcolm's father died at the hand of the Black Legion (X 4-! 13). After Malcolm's father's death, his mother who had to take care of eight children and endure threats from the KKK, suffered a nervous breakdown. As a result, Malcolm and his siblings were taken by the welfare department. Malcolm was later enrolled in a reform school and did very well grade wise. He was the best student in his class and wanted to become a lawyer. When the school heads heard about this, they sent a person to talk to Malcolm. This person told and convinced Malcolm that he was black and that he could never become a lawyer because of it. As a result, he dropped out of after the eighth grade and moved to Boston, Massachusetts where he worked several different jobs. Soon, Malcolm became associated in a gang and sold and used drugs, and was involved in many other criminal activities. His gang "career" ended when he got into some trouble due to a bet with the gang leader. Since the gang wanted Malcolm killed, Malcolm hid for a while. Soon, Malcolm decid! ed to rob a house which he heard had a lot of valuables in it. Soon one night, he robbed the house, but was ca... ...e didn't believe the peaceful protests worked. Malcolm believed that violence was the only way through which change would take place. Finally, Malcolm disagreed with Mr. King in the fact that Malcolm wanted to segregate blacks and whites and create a separate place for the blacks to live in while Mr. King wanted to end segregation and have blacks and whites live peacefully. My opinions toward Malcolm X's beliefs are that I disagree with most of what he said. I believe that what he taught was teaching hatred. I also believe that he set the civil rights movement back because he "un-did" everything Mr. King stood for and did. I also disagree with his idea of usage of violence because I don't believe it solves or is the answer to anything. Finally, I believe his ideas towards white men being "devils" and "evil" seem to be unjustified. I say unjustified because many white men tried to join both the OAAU and the Nation of Islam, were denied. My logic is that if the white men were evil, why would they try to join them and help them? Although I disagree with most of Malcolm's X's beliefs, I do agree that all Blacks should join and become unified, because in unity, there is power.

Marketing Activities by Redbull

Course: International Marketing Date: 29. 04. 2008 â€Å"If we don’t create the market, it doesn’t exist. We don’t bring the product to the consumer; we bring consumers to the product. † Red Bull Co-founder Dietrich Mateschitz Executive Summary This paper is an analytical look into the external and internal marketing activities conducted by Red Bull in the United Kingdom and in Thailand. Through comparing Red Bull’s position within these two nations we intend to define the differences in the marketing and branding strategy of the product within the European and Asian markets. Factors which will be studied include the differences in UK and Thai marketing activities, DEPEST factors of both nations, market analysis’, and a look into the companies micro environment. First a look into the DEPEST factors of both nations will identify the playing field Red Bull has to work with in each region. The Thai market is an emerging economy with and unstable political environment yet persistently strives for westernization, growth, and technological improvements. The United Kingdom is a world power with a strong matured first world economy that wields strong political strength, technological advancement, and consumer sophistication. Through looking at the Ruscon model, MaBa model, and Porters Five Forces we tie their theories to Red Bull’s corporate practices and role within each respective region. A Meso-Analysis of Red Bull is then undertaken to understand who the company is with a look into the history, general market information, market behavior, size and segmentation, and competitors that Red Bull is continually faced with in the market. Next we look into the Micro-environment surrounding Red Bull and analyze their mission and vision of becoming the most accessible and recognizable energy Beverage Company in the world. We observe their regional profitability and position within the markets. In the UK there is more liberal and innovative product placement, while in Thailand the products maintain a more traditional and conventional placement method. Then we approach Red Bull’s regional strategy. We will answer how the company intends to maximize sales of its product within each region. Key strategic tools that will be used to identify the strategy include Porter and T&W, looking at segments and positioning, branding, and targeting. In order to determine what Red Bull’s key strengths are we look at its industry leadership as a sustainable competitive advantage in the UK and Thailand. Its innovative beverage formula and strong marketing techniques are then assessed as being the core competencies within its strategic plan. A final look at the marketing mix via the product, price, place, promotion, and personnel will focus on the entire package that Red Bull delivers and look at all the elements that have lead to its success. A SWOT analysis is then used to summarize the strengths, weaknesses, opportunities, and threats that are currently facing Red Bull internally and externally. Finally we conclude with a list of recommendations for Red Bull. Our recommendations are shaped to prevent consumers from getting bored with Red Bull. They focus on the company taking advantage of its strong position and expanding their product line and riding the wave of consumer loyalty by introducing a wide array of health / energy based product lines. Contents | | | | | |Executive Summary | | | | | |Introduction |7 | | | | |1. DEPEST-factors |8 | |1. 1 Thailand |8 | |1. 1. 1 Demographic |8 | |1. 1. 2 Economic |8 | |1. 1. 3 Political/ Regulatory |9 | |1. 1. 4 Ecological/ Ethical |9 | |1. . 5 Socio-cultural |9 | |1. 1. 6 Technological |9 | |1. 2 United Kingdom |9 | |1. 2. 1 Demographic |9 | |1. 2. Economic |10 | |1. 2. 3 Political/ Regulatory |10 | |1. 2. 4 Ecological/ Ethical |10 | |1. 2. 5 Socio-cultural |10 | |1. 2. Technological |10 | |1. 3 DEPEST – Differences and Conclusions |10 | | | | |2. Ruscon Model |12 | | | | |3. MaBa Model |13 | | | | |4. Porter’s Five Forces |14 | | | | |5. MESO- Analysis |15 | |5. General Marketing Information |15 | |5. 1. 1 Market Behavior |15 | |5. 1. 2 Size and Segmentation |16 | |5. 2 Competitors |17 | |5. 2. Indirect Competitors |18 | | | | |6. Micro-Environment |19 | |6. 1 Mission and Vision |19 | |6. 2 Market Position and Profitability |19 | |6. Strategy |20 | |6. 3. 1 Porter and T&W |21 | |6. 3. 2 Segments and Positioning |21 | |6. 3. 3 Branding |21 | |6. 3. 4 Targeting |22 | |6. SCA and CC |22 | |6. 4. 1 Sustainable Competitive Advantage |22 | |6. 4. 2 Core Competencies |22 | |6. 5 Marketing Mix |22 | |6. 5. 1 Product |23 | |6. . 2 Price |24 | |6. 5. 3 Place |24 | |6. 5. 4 Promotion |24 | |6. 5. 5 Personnel |26 | |6. 6 SWOT-Analysis |27 | | | | |7. Future Recommendations |28 | | | | |Conclusion |29 | | | | |References |30 | |Appendices |31 | | | | |A1. DEPEST Factor Chart |31 | Introduction Red Bull energy drink has taken the international energy drink market by storm. As the first of its kind within the western world it has created a market, demand, and a position as the market leader and most recognizable brand within the industry. The purpose of this paper is to look at the extreme success of this company and compare its marketing strategies within the UK and Thailand. It is designed to focus on the micro methods employed by the company while also consider the Meso and external factors which affect tactics. This paper is focused towards individuals interested in the energy beverage market. It looks into the different approaches and considerations necessary when on the international playing field. It is also applicable for potential market entrants and competitors who require more information on Red Bull and what considerations must be taken when planning the marketing strategy. Red Bull was chosen for this study because of it strong reputation, global presence, and intensive yet simple marketing strategies. Its focus on bringing the beverage to the consumer has made it the leader and innovator in marketing energy beverages. Thailand was as a basis of study because it is the country of origin for the beverage. Before Red Bull adopted its current western image and taste it existed for decades within Thailand. The United Kingdom was chosen as the basis of comparison as its consumer markets are the most influential and critical within the western European market. The report begins by giving you insight into the Red Bull brand and its history. The product is then described with its core products and augmented products. Next macro elements of each market are observed. These conclusions then progress to defining the micro elements of the product and the marketing plan. Through analyzing the product on an all inclusive scale we are then able to assess the strengths, weaknesses, opportunities, and threats which will lead us into recommendations for the company and conclusions. . 1. DEPEST-factors 1. 2 Thailand 1. 1. 2Demographics Thailand, natively known as Ratcha Anachak Thai, has a population of 65,068,149 people. The population is growing with a rate of 0. 663% a year. This is an average grow rate for a country of this size. However, due to the influences of various diseases, such as AIDS, which plague the nation, the population average remains lower with high mortality rates. The population is mostly of Buddhist faith; almost 95% national support. Within the south of Thailand there are areas of strong Muslim influence. The population is almost evenly divided between women and men. There are 49% male and 51% female. These females and males make a certain number of households; 8. 8 million in total. The birthrate within the population and family is 13. 73 births per 1,000 people. And with a death rate of 7. 1 deaths per 1,000 people the death rate is therefore less than the birthrate, etting infants bring the population back up. The average age of the Population is now 32. 4 years old. This is also decreasing as the birthrate is increasing. 1. 1. 2 Economic With a well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand appears to have fully recovered from the 1997-1998 Asian Financial Crises. The country was one of East Asia's best performers from 2002-04. Boosted by strong export growth, the Thai economy grew 4. 5% in 2007. [1] The unemployment rate is 1. 9% which appears to be a low amount, but it should be taken into consideration that there are a lot of people working in bad conditions, even children are working. Economic growth is the increase in value of the goods and services produced by an economy. The economic Growth of Thailand is 4% in the year 2007. This means that there are 4% more goods produced than in the year 2006. The total GDP, in 2007, was an astonishing $585. 9 Billion. Internationally Thailand is ranked #26 in the worlds largest GDP’s. With the historical background and current economy this ranking Thailand is suitable. However when comparing this to other countries, such as the United states it appears very low. Inflation is rising in the general level of prices over time. It is also referred to a rise in the prices of specific sets of goods and services. It is measured as the percentage rate of change of a price index. In Thailand the inflation Rate was 2. 2% in 2007. The income per capita stayed the same however; 9,100. 1. 1. 3Political/Regulatory Thailand is a constitutional monarchy based on the civil law system. The sales Tax Rate was 7% in 2007. On every product 7% taxes are included. Individual taxes due are dependent on the salary received and the amount of taxes that are paid. There are differences in scales and they vary from 5% to 35% income tax. 1. 1. 4Ecological/Ethical Thailand has signed the Kyoto agreement which means they have agreed to reduce carbon emissions and various other greenhouse gasses (or engage in emissions trading). 1. 1. 5Socio-cultural Thailand has a high Power Distance (PDI) which is indicative of a high level of inequality of power and wealth within the society. This condition is not necessarily forced upon the population, but rather accepted by the society as a part of their cultural heritage. The ranking of 64 is slightly lower than the Asian average of 71. [2] 1. 1. 6Technological Thailand has been a country struggling for a long time to move forward. It was a country where it was cheap to produce, but not very likely to invest in. This has changed over the years and it has become a ‘High Technological Area’. This means that there are more investors and the country can look forward to a growing future. 1. 2United Kingdom 1. 2. Demographics The first half of the 20th century saw the UK's strength seriously depleted after two World Wars and the Irish republic withdrawal from the union. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous E uropean nation. Now the United Kingdom has a population of 60,587,300 people in total. The population is growing about 0. 275% a year; this was an estimate of 2006 to 2007. In the UK the female to male ratio is about the same. The population is 46% male and 54% female; there is a slight upper hand for females. The number of families living together is 2,648,025. 1. 2. 2Economic The unemployment rate in the UK is 5,4 % which means that of all the people who are eligible to work 5,4% can not get a job, but usually this rate is higher since people are not registered as looking for a job. The economic growth is 3,1% which means that the GDP of $2,270 trillion went up in 2007 with 3,1%. At number 8 on the world ranking scale it is very strong with international trading. The income per person of a citizen of the United Kingdom makes $ 37,328. This did not change in the year 2007 even though the inflation rate was 2,3%. 1. 2. 3Political/Regulatory As in Thailand the United Kingdom is a constitutional monarchy based on common law tradition with early Roman and modern continental influences. The sales tax rate is 17,5% and the income tax is directly based on income. In England the scale is between 10% and 45%. 1. 2. 4 Ecological/Ethical England is working on different ways to fight global warming. It is assigned to the Kyoto protocol. The UK has, in 2005, reduced the amount of industrial and commercial waste disposed in landfill sites to 85% of the 1998 levels. It has also recycled and/or composted at least 25% of household waste, increasing to 33% by 2015. 1. 2. 5Socio-cultural The power distance in the UK is not as big as in Thailand but it is still considerably high. The individualism of the people in the United Kingdom is however a lot higher than in Thailand. 1. 2. 6Technological The United Kingdom is a country that was always been at the forefront of technical development. In recent years however this has fallen behind to just normal technical development; its is no long leading the way. 1. 3 DEPEST- Differences and Conclusions The main differences are in the economical factors and in the cultural background. The countries differ a lot when it comes to income and GDP. The United Kingdom is much stronger and developed then Thailand. Thailand is a developing nation while the UK is a first world international power that is well into a maturing phase of its growth. The cultural differences are handy to know when doing business, as it is extremely important to know who you are targeting. A marketing strategy must be catered to the region as they have different needs, desires, and characteristics. It shows Red Bull what it can and cannot do. In the UK an advertisement can be a success and generate a lot of sales; however in Thailand the advertising campaign can be a complete failure and ruin the good reputation of Red Bull. Both countries have a strong environmental focus. Technologically Thailand is building itself from the ground up and the UK is currently renewing its technical structure. This is a benefit for both countries as it indicates the ability to remain competitive internationally. Legally the two countries also differ. Thailand is based on a civil law system and the United Kingdom is common law system. 2. Ruscon Model Involvement Red Bull is low in customer involvement. The drink is a convenience product that most people just buy when they get to the store. The consumer does not need to involve themselves when they buy the product. Brand equity Red Bull has very strong brand equity. It was the first energy drink to penetrate the European market and has developed into a brand that is available and involved internationally. With this there come advantages for Red Bull. Their awareness in the market is enormous. Customers are loyal to the brand. Other brands are regarded as imitators; while no other company has as strong a reputation and the same taste. Often consumers are only aware of Red Bull because of its involvement in extreme sports. Attitude To buy a Red bull can is an emotional choice. You go into the store and you chose to buy it. There is no need to think very much about it which means it is low in involvement and also short buying behavior. Motivation After looking at the model it was clear that Red bull has a strong transformational motivation, but low involvement. Red Bull is a product that is supposed to energize and revitalize the user. It is a product that the buyer needs a positive and functional reason to buy. 3. Maba Model The main difference for Red Bull in the Thai and United Kingdom markets is the size. In view of the market growth, competition, price sensitivity or the entry barriers there are some slight differences in these two countries. People look at Red Bull differently in Thailand then they do in the United Kingdom. Therefore the market share is larger in United Kingdom then in Thailand. There is more competition for Red Bull in the United Kingdom then it is in Thailand. Red Bull is over all more developed in the United Kingdom then it is in Thailand. They come out quite alike on the Mada Model, but United Kingdom still comes out stronger. 4. Porter’s 5 forces Figure 4: Porter’s 5 forces model of Red Bull Porter’s 5 Forces[3] is an external analysis of Red Bull’s competitive environment. As we can see from the model there are 4 main threats consisting of: Threat of new entrants This is the largest threat for Red Bull. In today’s society imitator companies are being created every day. And one of these can actually be better at what they do then Red Bull. This is something Red Bull needs to look after to be sure that they stay ahead of competition. Bargaining power of buyers The consumers in this market have a great deal of buying power. They can choose which brand and taste they want. Therefore Red Bull must be diligent in making sure it differentiates itself from the competitors and keeps its value offered high in the eyes of the consumer. Threat of substitute products Threat of substitute products is the second largest threat after new entrants. This is because Red Bull only has two different products which do not differ so much. They only offer regular and sugar-free varieties. Therefore Red Bull needs to extend their product line. This way they can ensure that they stay a step ahead of the competitors. Rivalry among existing firms There are numerous competitors to Red Bull, but as the market leader Red Bull’s market share as not been greatly affected by these late comers. The competitors are targeting Red Bull but as long as they can maintain their brand strength and image then Red Bull will consistently stay out of reach. 5. MESO-Analysis 5. 1 General Market Information The history of Red Bull is a two part evolutionary process. TC pharmaceuticals in Thailand developed Krating Daeng (Thai word for Red bull) in the 1970’s and throughout the 70’s and 80’s sold large quantities of the beverage throughout Asia. In 1982, Dietrich Mateschitz, an Austrian marketing director for a German toothpaste company worked with TC Pharmaceuticals to cater the product for European consumers. In 1987 Mateschitz and TC Pharmaceutical owner Chaleo Yoovidhya founded Red Bull Gmbh. Mateschitz retained 49% ownership and has full control of marketing and branding outside of Asia. Yoovidhya holds 49% ownership, and his son controls the remaining 2%. Together they control Red Bull (Krating Daeng) branding and marketing of the original recipe within Thailand via TC Pharmaceuticals. The original Thai Recipe is a non-carbonated sweeter formula, which resembles syrup and is sold in a small medicine bottle. The modified European recipe is not as sweet and is carbonated. Since being released in Europe the modified formula has risen to become the most successful and aggressively marketed energy beverages. Mateschitz aligned the brand image with trending aggressive sports, and placed the product in the middle of popular culture within arms length of all consumers. 5. 1. 1Market behavior Brand building To build a strong successful brand a number of aspects are needed for the public to be interested in the product. Red Bull made a large effort to become a good brand and it succeeded in its work, but why is that? Quality The quality of a product is very important, especially for a product where there was no market before it was created, such as Red Bull. The quality needs to be consistent and it needs to be delivered flawlessly every time. In contrast to the competitors, Red Bull’s name and logo is a strong branding advantage. It is well known and therefore helps ensure a higher market share, as consumers tend to lean towards larger names and industry leaders. Communications Communication of Red Bull to the public is through various aspects of the media. There are intensive advertisements in magazines, commercials on TV, websites on the internet, street promotional teams in Red Bull cars, and intensive sponsoring of sporting events (I. e. Red Bull sponsors Thai Kickboxing, and Owns a Formula 1 Team). The amount and direct approach will take slightly different form within each country. First-mover advantage Because Red Bull was fully created by the owners themselves they decided not to make different products next to Red Bull. Sticking to one product was a smart idea because it prevents the consumers and the company’s focus from getting distracted between products. The only exception has been the creation of Sugar Free Red Bull which is responding to the western consumer desire for products with less sugar. This was a smart move since it helped to increase sales even more and increase the advantage over competitors. Long-term perspective Long-term Perspectives lead to important factors in brand-building: the need to invest in the brand over the long-term, building customer awareness, communicating the brand’s message, and creating customer loyalty. It requires that Red Bull continually reinvest profits back into their own brand. Red Bull enjoys short term sales but is determined to find long term costumers. This takes time and is not something done over night. When a good relationship is built then the customers always come back. And it is easier and cheaper to keep current customers than to go out and find new ones. Internal marketing Finally, management should ensure that the brand is marketed internally as well as externally. By this it is meant that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. International distribution Red Bull is now sold worldwide in over 50 countries. Unfortunately the drink is not sold in countries among France, Denmark and Norway for example because these countries believe that Red Bull contains to much caffeine for their health restrictions. Distribution of the western formula has not spread into Asia yet, as it currently maintains the original non-carbonated brand. Distribution is as aggressive in Thailand as it is in the UK. 5. 1. 2Size and segmentation Red Bull follows the psychographic segmentation, based on behavior and personality. It is important for the consumer to feel invigorated, energized, cool, and young while drinking a Red Bull. It is also these people that Red Bull wants to sell their product to. With doing this segmentation Red Bull can get as many as possible to buy their drink. It no longer is marketed to only truck drivers and low income workers but is targeting to everyone that lives and active lifestyle. Red Bull is a non-alcoholic energy drink and therefore falls under the category of soft drinks. Soft drinks can be divided into sub-segments and one of these segments is energy and sports drinks. These can be divided again into three different categories: †¢ Glucose energy drinks †¢ Sport drinks †¢ High energy stimulation drinks Since 1996 the market of soft drinks has grown by 5% and by 1997 it reached a total amount of ? 6. 896bn, which is an equivalent of 10bn liters. Moreover it can say that the segment of energy and sports drinks represents 2. 6% or ? 177m of the overall soft drink market. Since 1992 an increase of 64% in volume sales can be found within this very young market of energy and sports drinks[4]. The main differences of the mentioned sub-segments of soft drinks are as followed: Glucose Energy Drinks These drinks provide physical energy through glucose or a mixture of sugars, originating from the Lucozade brand. These drinks do not contain any other substantial ingredients such as Lucozade Energy, Lucozade NRJ or Red Card. In 1927 they were originally positioned as a convalescence drink. Sports drinks These are also known as isotonic drinks, which replace body fluids after sport activities or exercises. Sport drinks help to re-energize and re-hydrate the body and can be taken before, during, or after exercises. These drinks require you to drink large amounts quickly. Examples for this kind of drinks are Gatorade, Isostar and Dexters. High-energy Stimulation Drinks These drinks have ingredients such as caffeine and taurin, which help to increase concentration, endurance, alertness and reactions. This kind of drink is not only designed for athletes, but can also be used for everyone who wants to get stimulated and energized in the mind and body. Red Bull belongs to the category of high-energy stimulation drinks. Red Bull created this international sector in 1987 and the later segment makes up ? 14m or 8% of the value sales of the energy and sport drink market. Glucose energy drinks represent the majority of the volume sales with ? 126m or 70%. Sports drinks represent ? 39m or 22%. [5] 2. Competitors Energy Drinks have become very famous in the last decade. During the last ten years, hundreds of them have been established around the world. All of them are marketed as energy spending and as very suitable mixer with alcohol, whereas Red Bull has never formally been associated or condoned for consumption with alcohol. Direct Competitors Within the market there have only been very moderate developments in the energy drink market. There are only very few serious competitors of Red Bull in the world. These include: Purdey’s Gold High EnergyIndigo Price:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ? 1. 03Price:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ? 0. 79 Lipovitan B3Lucozade Energy Price:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ? 0. 99Price:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   ? 0. 49 In the Netherlands the main competition that Red Bull had was a brand called Bullit. This energy drink tasted basically the same, but it was a lot cheaper, like a quarter of the taste. When Red Bull saw this, they solved it with buying the company. Therefore Bullit is not seen as a competitor for Red Bull any more. 5. 2. 1 Indirect Competitors Indirect competitors are those from the glucose or conventional energy drink family. The largest distributor of those drinks in England is Lucozade with a wide product range in terms of flavor. Lucozade owns approximately 90% of the market share of sports drinks which probably is the result of high media spending and the tradition of the company (1927). Another indirect competitor are juices because some consumers prefer beverages with less sugar content, that are natural and better for you. 6. Micro-environment 1. Mission and Vision Mission statement The mission statement of Red Bull is to provide a product that helps energize and revitalize its users. Therefore Red Bull invented the slogan† Red Bull gives you wings†. It strives to provide consumers with a product that will be beneficial to them while still tasting good and being cheap. Vision The vision of the Red Bull beverage is to maintain its position as the original and primary energy drink in the world. Red Bull wants to reach out to as many people as possible and to help these people in their everyday life and with whatever they do. Red Bull says they want to stimulate the body and soul of their consumers[6]. Mateschitz wants it to be something that people can use and enjoy. The company wants to make their product accessible to the entire world, enabling anyone to reap the benefits of the drink. 2. Market Position and Profitability Market Position It is very important for a company to position itself in the right market for people to recognise it. This also goes for the energy drink industry. Red Bull is often called the â€Å"Porsche† of energy drinks. This is because they are positioned at the top as the best product in the market. Red Bull is perceived as a premium/high margin brand product. There is no other energy drink company to this date that comes close to Red bull’s strong position. Because of Red Bull’s industry strength they have the possibility to command premium prices from their consumers, as there are few other brands to compare prices with. It offers something few other brands do. Another example of this is the I Pod in relation to the rest of the mp3 Market. In the UK the average price of a Red Bull can is 1. 05 which is clearly above its competitor’s average price of 1. 03. [7] The price expresses the superiority of Red Bull and further on it proves that there are no substitutes. The positioning policy of Red Bull is: premium product, premium price and premium profitability. Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brands have a clear, often unique position in the target market[8]. Red Bull is known by its consumers as a drink that can rejuvenate the user and ‘give them wings’. Specifically for students and athletes it is a drink that provides needed strength and energy. Red Bull also sponsors a lot of events dealing with sports. This gives the public something to relate to and enjoy other than just drinking the drink. It will give the company more recognition and the people more awareness of Red Bull. Repositioning Before Red Bull became really well known the brand had a lot of myths it needed to fight. There were rumors that Red Bull was made of the balls of the bull, or that it is unhealthy, and addictive. The company does not want these myths associated with the Red Bull drink, and therefore Red Bull needed to reposition itself in the market. Red Bull started new marketing campaigns, and to avoid high costs students were hired. These students went around towns in a Red Bull car and passed out samples. This method of bringing the product to the consumer is constantly combined with entertaining advertising campaigns. For example, Red Bull launched animated commercial campaigns with the slogan â€Å"Red Bull ‘gives you wings†. These methods stimulate the creativity, freedom and inspiration of the consumers. Profitability Red Bull is now standing as the marked leader when it comes to energy drinks. This again says that their profitability is very good. Last year (2007) Red Bull hit an all time high with standing on a 65 % marked share world wide. This made them pull in sales for over $ 1 billion. Other competition does not come near this at all. 3. Strategy Through investing a large amount of money into marketing and promotion, Red Bull has become the company it is today. Mateschitz wanted to make fuzz about the brand because there were no Energy drinks before Red Bull so he was standing in an open market without any brand awareness from his target consumers. Red Bull is currently sponsoring over 500 athletes all over the world[9]. Instead of choosing well known super stars as Coca Cola does they chose to use more youthful and edgy people. For example: BMX riders, skateboarders, and Formula 1 Drivers. Red Bull is also sponsoring a lot of surfers all around the world. After managing to create the brand fuzz, he looked at the packaging. It was essential for him to make a package that the consumer recognized and also made them want the product. This can be seen today as very successful as the can is very recognizable. Nowadays wherever you turn you can see Red Bull. Numerous television commercials rely on humor appeals to attract consumers. On festivals they have big tents were you can only buy Red Bull and then sit down and relax. One strategy that Red Bull goes for is that if Red Bull is sold at a club or bar, no other energy drink is allowed to be sold on the same place. This makes the choice of the consumer easier, but it also makes competition far less. The strategy all along was to make people aware of the product and have it available for as many people as possible to buy it. 1. Porter and T&W Promotional Strategy Red Bull utilizes a â€Å"push† promotional strategy in combination with extensive advertising, public relations, and positive publicity all over the world. Advertising of the product takes place in Thailand in the form of television, print media, urban advertisements, and radio media. The energy drink market in the world is becoming more saturated with competition and is therefore requiring more intensive investments into advertising. Public relations and positive publicity have carried Red Bull over the past 30 plus years. As a well know company world wide it takes part in assisting its people and promoting sporting events and active lifestyles of most people. The Red Bull logo has also built such a reputation that it is widely reproduced illegally on t-shirts and clothing on Asian markets. Regardless of the legality it has been a great means of integrating the product into a symbol of the nation. Marketing Strategy Red Bull approaches the world market as a market leader. Being the pioneer of energy drinks it has developed the largest reputation as the market leader. By differentiating their product as the original they also follow a growth plan of integration. Business is expanded and maintained through direct marketing. Red Bull has greatly utilized sales representatives and sales offices to facilitate in the transfer of their products. Customer value strategy When deciding what to buy, the consumer makes an evaluation of the benefits of the product; a safe home, a roof over your head. This also includes the costs of the product; money, loss of savings, and possible mortgage. The difference between the benefits and the costs is the perceived value. These days the producer needs to be careful how to market the product since the customer needs to think the product is worth more than purchase price. This is a complicated challenge for the producer of Red Bull since a lot of potential customers think that it is only a drink. So how does Red Bull market their product to make the customer thinks they are receiving great value? In the beginning the product was rather unknown and had a relatively bad name. At its website (Red Bull. com), an enormous amount of content is dedicated to dispelling (unpleasant) myths and criticisms associated with its product. Questions, such as who has examined Red Bull? Is Red Bull addictive? , Is Red Bull a doping substance? , are on the website. Red Bull was also linked with alcohol drinks and some parties where there were unfortunate medical accidents[10]. When Red Bull came to understand these questions they informed the public the best they could through the website. This eased the consumers and they bought more and more Red Bull. In 1997 the sales went from 1 million cans to 300 million cans world wide in 1998. Red Bull became known as a good brand because of the smart marketing strategies of the founder of Red Bull; Dietrich Mateschitz. In order to reach the consumers without spending millions on advertising he resorted to buzz marketing to stimulate sales. He hired students to drive around in cars with Red Bull cans on the back and hand out free samples at parties and events[11]. This gave the brand a cool, younger image and that is still standing today. Now that Red Bull chased the assumptions away by good information on their website and created a cool brand more and more consumers come and purchase the product. But still the question remains why people buy Red Bull over the cheaper versions of the Competitor? The reason for this is because Red Bull built a good brand name. The brand is reliable and well known by a lot of people. There are no hidden ingredients since they are all written on the outside of the can and therefore there are no secrets anymore. Red Bull also gives back to the world by hosting big popular events and supports creativity. It sponsors a lot of sports and it is seen a lot on for instance skate boards, sail boats, race cars, motor cycles and surf boards. It is a cool drink associated with sports, creativity, fun and freedom. 2. Segments and Positioning For now Red Bull segments themselves in the Soft drink category within the UK, and more as a pharmaceutical energy substance within Asia. Both stores are widely available in grocery stores, convenience stores, and gas stations. 3. Branding Red Bull is one of the bigger companies in the world when it comes to branding. Red Bull is no longer only an energy drink that you can buy in a store. It is now a big brand name affiliated with more things. Nowadays you can see Red bull sponsoring even Formula 1 with their own car and team. Other places where you can see Red bull is in the Red Bull Air Race which is held in London every year. What Red Bull is doing which few other brands do is trying to keep the brand exclusive in the consumers mind. Both air planes and formula 1 are seen as exclusive to most people in the world. Last year Red Bull worldwide used $600 million, or 30% of revenue, on marketing to make their branding better. [12] 4. Targeting The target group for the energy drink is everyone who likes to drink energy drinks. And this is mainly the way Red bull wants it to be in both the UK and Thailand. They want to target everyone that they can possibly target. There is an age restriction on the drink which is from 0 – 16 years old. Anyone younger then this age should not be able to buy the drinks anywhere. Therefore Red bull is targeted to everybody over the age of 16 that is active. Though in the UK there is said to be three main stereotyped users that can be identified. The Athlete: Physically active individuals that use the beverage to regain energy and maximize athletic performance. The Worker: Within the UK this term is general covering managers to construction workers. Within Thailand this maintains to be the primary target market. Thai workers have multiple jobs and drink Red Bull to keep them productive. The Clubber: This category is fairly new. In recent years consumers began to mix Red Bull with alcohol. Red Bull sells now 34% of its units within bars and clubs. It is almost impossible to find the right target group, the reason for that is because of the various applications of Red Bull. Hence a clear cut categorization in age groups and socio-economics groupings is not feasible. But what we can be sure of is that the typical Red Bull drinker is dynamic and active, the gender does not play any role at all. But it is more likely that more less younger people who really like to go out fall for Red Bull. 4. SCA and CC 1. Sustainable Competitive advantage The sustainable competitive advantage that Red Bull has is it brand awareness and recognition. Red Bull was the first energy drink on the marked. This is a large advantage for Red bull because they could get recognition for their product before anybody else could. Their brand name has become so large that a lot of newcomers struggle to manage through the first year because Red bull has such a large marked share. 2. Core competencies The core competence of a Red Bull drink is that it makes you work a bit harder, and your brain becomes a bit clearer for a while. 5. Marketing Mix 1. Product Red bull has recently released one new product which is a Red Bull cola which is a mixture of Red Bull and coca cola. The other new product they have is Red Bull Vodka, which is a mixture of modified Red Bull and Vodka. Neither of these products is discussed in this report because they just are being released and therefore information is very limited. Core product Picture 1: Red Bull cans Red Bull’s effects are appreciated throughout the world by top athletes, busy professionals, active students and drivers on long journeys[13]. † This raises the question; what is the buyer actually buying? This question directly refers to the core product. What d raw people to Red Bull all over the world is the special ingredient that keeps you alert and awake when drinking it. Red Bull raises concentration and reaction speed. It will also increase vigilance after drinking. This means that the herbs in the drink make you more alert than you were before. Red Bull has a lot of advantages and the speeding of the body’s metabolism is one of them. Red Bull  ® Energy Drink supplies tired minds and exhausted bodies with lost substances and reduces harmful substances. It provides immediate energy and vitamins[14]. † Actual product Red Bull’s actual product is a canned or bottled energy drink that gives the consumer more energy and is also enriched with vitamins to create the perception of healthy qualities. The packaging is clearly identifiable as Red Bull based on the packaging. Within the UK the colors of Red Bull make it clear that it is indeed the ‘real’ Red Bull, but also the distinctive Red Bull bulls on the side and the Red Bull name on the drink are obviously present on the container. The outside of the can has is a dark blue color mixed with grey/silver. The intensity of the blue can vary depending on whether or not the can is Red bull light version, or the original Red Bull. Within Thailand the beverage is still labeled as Krating Daeng (Red Bull in Thai) but is sold in a gold can or a brown medicine bottle with the blue and silver label. The gold can with more substance is more appealing to Asian consumers based on color and quantity preference. Augmented product Red Bull has no special after-sale service but it does claim that if for what ever reason a customer is not 100% happy with its purchase then it will respond to their complaint. 2. Price The price of a Red Bull can varies from country to country. This is because they realized that 4 euros in Thailand is expensive, while rather cheap in UK for example. Therefore Red Bull goes into every country and checks out their economy to come with the appropriate price for the product. However Red Bull is said to be a bit expensive. This is because (Explained earlier in the report) they see themselves are a premium brand and likes to set their price up to those standards. In the United Kingdom the price of a Red Bull can is about 1, 5 pounds, this equals to around â‚ ¬ 2, 5. In Thailand the drink can be bought for a quarter of this price, but is called Krating Daeng. It can be questioned why people still buy Red Bull at this price. There are other options out there that are just as good as Red Bull, but people still buy it. This is because Red Bull has managed to put up a brand name of its own. In the UK people are willing and able to pay more to get the â€Å"real† product. Red Bull is consistently referred to as the best quality so for good results it is the best option. In Thailand it is marketed to the lower and middle classes as a productivity enhancer rather than an everyday beverage. Therefore they keep it cheap to maintain high sales and create dependency for the product within the working class. 3. Place The strategy that Red Bull uses for distribution is an intense distribution strategy. This means that they want the product to reach as many people as possible. Therefore you can find a Red Bull can in as many places as possible. This varies from normal super markets, clubs, bars, night shops, cafe’s, sport centers etc. They hope to reach a larger target group with doing this. In both UK and Thailand they depend on extensive sales representatives and distribution offices to ensure that every vendor possible is distributing the product. What makes Red Bull so special is that they often have stands at events were you can only buy Red Bull. This is because they know a lot of people that go to different events actually drink Red Bull. If a night club sells Red Bull, then they are not allowed to sell any other energy drink brand. This narrows the possibility for the consumer and it makes it easier to choose. Promotion Red Bull is said to have one of the most amazing marketing and promotions budgets in the world which is where the majority of money is reinvested in. And they are very successful with it. Their promotion strategy can be put into three bars. These are Media Advertising, Sports and event sponsoring and sampling. Media Advertising Red Bull uses all the available media channels, including cinema, TV, radio, press and the internet. In other words the company focuses on the media most often used by younger more active individuals. Therefore they advertise in TV shows like T. F. I. Friday and in magazines like Time Out and Men’s Health. Their advertisements in the different media channels are very successful. They allow the consumers to interpret the product and the moments of use themselves. Red Bull achieves this by a humorous and witty cartoon campaign, transferring the message that this energy drink helps you to escape by `giving you wings ?. The idea of communicating with the consumer in form of a simple cartoon is easy to understand. People do not only enjoy the campaigns they even remember what the product is called and what it delivers, which is the most important characteristic for a successful campaign. Sports-and Event-Sponsoring The company also implements sponsoring in their marketing mix strategy. Sponsoring supports the image, the credibility and the visibility of the product. On the one hand Red Bull sponsors the athlete target market in extreme sports such as free climbing, paragliding and motor sports. As previously stated it is heavily involved in Formula 1 and has invested millions in building a competitive team. Within Thailand its reputation exploded through it becoming the primary sponsor of the countries national sport, Thai Kickboxing. Every fighter in Thailand wants to wear shorts that have the Red Bulls on the side. This strategy contributes to Red Bull that the brand appears (logos and stickers) and that the product ? s target market is more precisely defined. On the other hand Red Bull does event sponsoring. The company either creates its own events (i. e. Red Bull Music Academy) where the whole events are promoted by Red Bull or they promote other events (i. e. Speed Ski World Championship). Event sponsoring attracts people’s attention towards the product and connects them to the corporate vision. Sampling Sampling is another very important part of the three pillar marketing system. The methods used are well tested and proven in other markets. The major purpose of Red Bull is to energize, the company offers samples at the right place at the right time, where it can find its exact target market. Examples of usage are driving, studying, working night shifts and sports. Red Bull is following the basic sampling rules consisting of: †¢ never impose the product †¢ always explain the benefits of the product drink always a full can( 250 ml) †¢ It must always be chilled †¢ Always be cautious about whom your are giving the sample to This year 8 teams will sample 400,000 consumers across the UK. Because of its 30 years of existence within Thailand samples are no longer utilized. 4. Personnel In regards to personnel it is ess ential that they are work as hard as possible to make the product a success. With Red Bull this starts with the owners Dietrich Mateschitz, and Chaleo Yoovidhya. Each is in charge of operations within their respective regions. Both are extremely devoted men and have invested a great deal of time to improve on Yoovidhya’s original recipe. It was Mateschitz vision taking the product international through the aggressive use of young energetic sales teams that turned it into the massive beast it is today. Within both nations working for Red Bull reflects a sense of pride. More in Thailand though because it was created there. Working for Red Bull has a lot of advantages. For example every account manager at Red Bull is driving a large Red Bull hummer. Other advantages are extra vacation days, 13 months pay, freebies, work trips, free tickets for several events etc. Red Bull wants their employees to enjoy what they are doing because they believe this will affect the way the employees are working. They find it very important to properly represent their company. It is said that Red Bull is one of the hardest companies to be hired to because they set high standards for their employees. They want every employee to be a perfect fit. Red Bull is getting larger and larger for every day that passes by. 6. SWOT Analysis Figure 3: SWOT Analysis | | | |Strengths |Weaknesses | |Primary Market Entrant / defined the industry |Limited product line | |Large brand recognition No flexibility with formula | |Over 30 years of experience |Matured brand image | |Control of pricing |High price | |Strong reputation | | |Marketing strategy and large reach | | | | | |Opportunities |Threats | |New design |Increasing competition | |New product line |Health trends might urge users to not rely on energy drinks | |Can offer new flavors and versions of the product |European formula of Red Bull may taint the reputation, image, and| |Can pursue African markets and introduce European formula into |popularity of Thai formula | |Asia |Bad press in regards to medical symptoms of the drink | | |People lose interest in the flavor | 7. Future Recommendations Through analyzing Red Bull’s business operations we have developed several recommendations for the company. The greatest threat within both markets is the company’s complacency in evolving its product line. As strong as Red Bull is today once the maturity phase sets in the public will become bored. We suggest that Red Bull expand their line of energy drinks potentially venturing into the herbal iced green tea energy drinks. Red Bull energy bars to associate with working out may be another means of increasing the company’s visibility. We currently see Red Bull at the fore front of active living beverages. Therefore within the UK they should try to offer the entire package ranging from nutritional supplements, protein shakes, to energetic meal options. We feel that their website is underdeveloped and can incorporate more interactive content including fitness/ nutrition advice, sport tips, and active living testimonials. These suggestions fit for both markets as they will resolve each regions weakness. Within Thailand extra emphasis needs to be put on online media as there currently is no link from the company to the consumer. Conclusion Because Red Bull started created the energy beverage industry on the international scale it is now a very successful and powerful brand. Red Bull is well known in United Kingdom as well as Thailand. It made smart moves considering promotions and marketing to make the brand stay ahead of the fierce and increasing competition. In the countries that are analyzed it has become clear that Red Bull is an unbeaten brand. In both the countries the drink is perceived differently. In Thailand the drink is more linked to a pharmaceutical purpose whereas in the UK the drink is more used for recreational purposes. In both of the countries and for Red Bull in general there are threats and opportunities. To stay ahead of the competition Red Bull can change the image of the brand; make it a more stylish product than it is now. The brand has not changed its packaging in years and changing it can make a difference in sales. In Thailand the brand is also well known and has large sales, but here there are also more competitors making their way into the market. One of the main strong points of Red Bull is the original recipe, but at the same time new flavors and additional features of the drink can contribute to increasing sales and more customers. References Website of BBC (2008) visited 17. 03. 08; http://news. bbc. co. uk/1/hi/uk/1437154. stm Website of Brand Cameo (2008) visited 16. 03. 2008; http://brandcameo. org/features_profile. asp? pr_id=44 Website of CIA (2008) visited 12. 03. 2008 https://www. cia. gov/library/publications/the-world-factbook/geos/th. html Website of Drawert (2008) ,visited 19. 03. 08; http://www. drawert. com/red_bull_2. php Website of ecandy (2008), visited 19. 03. 08; http://www. ecandy. com/ecandyfiles/SOTIC2006_Grabner(summary). pdf Website of fastcompany (2008), visited 17. 03. 08; http://www. fastcompany. com/articles/2001/10/redbull. html Website of Findarticles (2008) visited 17. 03. 08; http://findarticles. com/p/articles/mi_m0BDW/is_22_42/ai_75286777/pg_1 Website of ITIM International; Geert-Hofstede Cultural Dimensions (2008) visited 30. 03. 2008 http://www. geert-hofstede. om/hofstede_thailand. shtml Website of marketingweek (2008) visited 17. 03. 08; http://www. marketingweek. co. uk/cgi-bin/item. cgi? id=57354&u=pg_dtl_art_news&m=pg_hdr_art Website of Red Bull (2008) visited on 12. 03. 2008; http://www. Red Bull. com/#page=ProductPage. Benefits Website of Red Bull (2008) visited 16. 03. 2008; http://www. redbull. com/images/historysection/pdf/1/Selling_Power_DM_Sept. pdf Website of Red Bull (2008) visited 16. 03. 2008; http://tutor2u. net/business/marketing/brands_building_brands. asp Website of Wikipedia (2008) visited 30. 03. 2008 http://en. wikipedia. org/wiki/Porter_5_forces_analysis Appendices DEPEST- Factors chart DEPEST- Factors |UK |Thailand | |Demographic Developments |Population: 60,587,300 |Population: 64,631,595 | | |Male/Female Ratio: 46%:54% |Male/Female Ratio: 49%:51% | | |Number of Households: 21,263,035 |Number of Households: | | |Family households: 2,648,025 |Family households: 8. 8 million | | |Average age of the Population: |Average age of the Population: 32. 4 | | |39,0 (Increasing) |(increasing) | | | | | |Economic Developments |Unemployment rate: 5,4 % |Unemployment rate: 1. % | | |Economic Growth: 3. 1 % |Economic Growth: 4% | | |GDP: $2. 270 trillion   |GDP: $585. 9 Billion | | |Per Capita Income: $37,328 |Per Capita Income: 9,100 | | |In flation Rate 2,3 % |Inflation Rate 2. 2% | |Political (Law) Developments |Sales Tax Rate: 17,5 % |Sales Tax Rate: 7% | |Income Tax: 10– 45 % |Income Tax: 5-35% | |Ecological/ Ethical Developments |Kyoto agreements |Kyoto agreements | |Socio-Cultural Developments |Consumer Behavior |Consumer Behavior | | |Hofstedes cultural Dimensions |Hofstedes cultural Dimensions | |Technological Developments |High Technological Area |High Technological Area | ———————– [1] https://www. cia. gov/library/publications/the-world-factbook/geos/th. html [2] http://www. geert-hofstede. com/hofstede_thailand. shtml [3] Website of Wikipedia (2008) visited 30. 03. 2008, http://en. wikipedia. org/wiki/Porter_5_forces_analysis [4] Website of Findarticles (2008) visited 17. 03. 8, http://findarticles. com/p/articles/mi_m0BDW/is_22_42/ai_75286777/pg_1 [5] Website of marketingweek (2008) visited 17. 03. 08, http://www. marketingweek. co. uk/cgi-bin/it em. cgi? id=57354&u=pg_dtl_art_news&m=pg_hdr_art [6] Website of ecandy (2008), visited 19. 03. 08, http://www. ecandy. com/ecandyfiles/SOTIC2006_Grabner(summary). pdf [7] Website of Drawert (2008) ,visited 19. 03. 08,http://www. drawert. com/red_bull_2. php [8] Website of Red Bull (2008) visited 16. 03. 2008, http://tutor2u. net/business/marketing/brands_building_brands. asp [9] Website of fastcompany (2008), visited 17. 03. 08 , http://www. fastcompany. com/articles/2001/10/redbull. html 10] Website of Brand Cameo (2008) visited 16. 03. 2008, http://brandcameo. org/features_profile. asp? pr_id=44 [11] Website of Red Bull (2008) visited 16. 03. 2008, http://www. redbull. com/images/historysection/pdf/1/Selling_Power_DM_Sept. pdf [12] Website of BBC (2008) visited 17. 03. 08, http://news. bbc. co. uk/1/hi/uk/1437154. stm [13] Website of Red Bull (2008) visited on 12. 03. 2008, http://www. Red Bull. com/#page=ProductPage. Benefits [14] Website of Red Bull (2008) visited on 12. 03. 200 8, http://www. Red Bull. com/#page=ProductPage. Benefits ———————– Figure 1: Ruscon Model Table 1: Maba Model Figure 2: Maba Model Picture 2: Thai Red Bull Can