Distribution Strategies of G Fuel and Red Bull: Insights and Analysis

4.3 Assignment: Distribution Web Page Chris Louzau

REFERENCES • Bernaiche, E. (2021, December 20). How GFUEL is leveraging game titles, rather than twitch trends, to sell product . RSS. https://www.thoughtleaders.io/blog/how-gfuel-is-leveraging-game-titles- rather-than-twitch-trends-to-sell-product • V, G. (2023, September 17). “red bull’s explosive content marketing strategy: How they skyrocketed revenue to millions!” LinkedIn. https://www.linkedin.com/pulse/red-bulls-explosive-content-marketing- strategy-how-skyrocketed-v#:~:text=Red%20Bull’s%20distribution %20strategy%20was,YouTube%20to%20share%20their%20content.

WHAT WAS YOUR REACTION? WHY? • Whenever I go to my local grocery store and I look for G fuel energy drinks I am unable to get either the flavor I'm looking for or any due to the shortages most of the grocery stores go through. This is due to the high demand of the product and their quick selling.

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HOW DID THE LACK OF AVAILABILITY AFFECT YOUR PERCEPTION OF THE COMPANY AND OF THE PRODUCT? DID IT MAKE YOU WANT IT MORE, OR DID IT MAKE YOU FRUSTRATED SO THAT YOU LOST INTEREST? • The lack of availability did not affect my perception of the company or the product due to the product being an energy drink and the vast majority of the populace I am currently located at revolves around college students, first responders, construction workers, and other public service employees that usually run off of caffeinated beverages. This definitely made me want it more, and partly frustrated but not lost of interest.

AS A MARKETING CONSULTANT, SPECULATE ON THE SUPPLY CHAIN AND DISTRIBUTION CHANNEL STRATEGY THAT THE COMPANY WAS TRYING TO ACHIEVE. • G Fuel employed a direct-to-consumer (DTC) strategy as a part of its supply chain and distribution channel strategy. The company primarily sells its products through its official website, allowing for a direct and seamless connection with consumers. This approach helps G Fuel maintain control over its brand image, customer experience, and pricing.

• GFUEL has modeled a really successful way to leverage the entire catalog of content of their partnerships. Because YouTube is considered evergreen material (the date of creation/publication doesn’t necessarily have an influence on the viewership), GFUEL has created an agreement with their sponsored channels wherein every single video from the entire catalog from that content producer features a link and discount code to GFUEL in the caption. (Bernaiche, 2021)

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RED BULL ENERGY DRINKS • Now consider a product that is widely available.

WHAT IS YOUR PERCEPTION OF THE PRODUCT AND THE COMPANY? • My perception of the company is apathetic as best. It's another mainstream energy drink company that tries to distribute products on a global scale to provide another form of caffeinated substance to consumers.

HOW IS YOUR PERCEPTION INFLUENCED BY THE UBIQUITY OF THE PRODUCT? • My perception is not influenced by the ubiquity of the product. As stated earlier, it is another caffeinated beverage distributed on a larger scale than G fuel energy drinks due to their stake in the business longer running and more success and experience in distribution.

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SPECULATE ON THE DISTRIBUTION STRATEGY AND GOALS FOR THE COMPANY. • Red Bull's distribution strategy was two-fold. They leveraged their owned media channels, such as their website and social media profiles, and also partnered with popular platforms like YouTube to share their content. They used paid promotion sparingly but effectively, targeting their content to reach the right audience. (V, 2023)

• Evaluate the distribution channels of these two products that you just considered in the previous two instructions:

AS A MARKETING CONSULTANT, COMPARE AND CONTRAST THE DISTRIBUTION CHANNELS OF THESE TWO PRODUCTS. • Right now, you can find Red Bull & GFuel energy drinks in various public spots like convenience stores, supermarkets, and gas stations. • Red Bull relies on store fronts for the majority of their sales while Gfuel has a mix of select store fronts and direct sales.

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HOW DID THE AVAILABILITY OF THE PRODUCTS INFLUENCE YOUR THOUGHTS AND ATTITUDE TOWARD THE PRODUCT AND THE COMPANY? • The availability of the product did not influence my thoughts or attitude towards the products or companies. I don't necessarily rely on caffeinated beverages. However, I do have coworkers that do and have their preferences in either.

SPECULATE AS TO WHETHER THE COMPANIES’ DISTRIBUTION STRATEGIES HAVE PROVED EFFECTIVE AND SERVED THEM WELL. • Both of their strategies for distribution have proven to be effective and serve them well over the years. While G fuel is a young company, they are showing extreme promise due to the quality of their product and the ease of access from either storefront or direct sales. Red Bull is definitely a more popular name, widespread beverage, and socially popular drink in comparison. Both are showing extreme promise and continued growth.

GFUEL and REDBULL

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