Why is it profitable for a stable like redbull to race in the F1 Research Paper

Why is it profitable for a stable like redbull to race in the F1 championship - Research Paper Example The research centers on the profitability of a stable like Redbull to race in the F1 championship. In terms of the Redbull products, Dubrin (2008) emphasized Red Bull’s corporate strategy includes its marketing strategies; the strategies include product, price, place, and promotion factors (Kruz, 2010). Dornbusch and Fischer (1990) emphasized price is the amount that the buyer and seller agree as payment for each Redbull beverage product. Place represents where each product is displayed. Promotion includes advertising. Promotion also includes paying the sales person to advertise the company’s Redbull products. In this case, Redbull is eager to invest lots of cash to sponsor a car racing team. In return, the company expects to recuperate the expenses from the increase in the sales of the Redbull products. The target market includes all markets located in countries around the world, especially countries where the Redbull racing team is mentioned, such as news stories. Gen erally, pricing includes selling products at equilibrium or fair market amounts. Palmer (2004) insists the company continues to financially grow despite the presence of the current global recession. The company’s present strategy focuses on product and service promotion to increase its net profits and dividend distribution. Further, the Redbull company continues to retain its huge share of the beverage market segment by implementing customer –based marketing programs (Kruz, 2010). The programs include filling the needs of the niche market – people needing energy boosting drinks. The offering of the company’s energy-enhancing products is grounded on the Redbull branding strategy. The racing includes the expansion, and customer delivery activities precipitating to the company’s leadership in the energy drink market segment in terms of net profits and revenues in the local and international market place (Feldman, 2007). Redbull continues to creatively enhance its popular beverage image by maximizing scarce assets to fulfill the company’s aim and objectives. To be profitable in the racing and marketing areas, the Redbull company incorporates innovation, challenge, and passion in its customer-based marketing activities. Aim and Objectives In terms of consultancy, Helfert (2001) reiterated the aim of the Redbull company in sponsoring its own formula one racing team is translate the cost of sponsoring the Redbull races into increases is the profits of the Redbull beverage products. To achieve the aim, the company generates several objectives. First, the company uses the races to advertise the Redbull products. To achieve the aim, Kotler (1994) opined the company generates objectives. The objectives geared towards achieving the Redbull team’s aim. One of the objectives is to initially sponsor a formula one racing team. Next, the company pursues a spectacular performance in the races. Specifically, one of the teamâ€℠¢s objectives is to win the world constructor’s drivers’ championship. Second, the team wanted to win the world driver’s champion. Third, the company wants to retain its current position in the racing championships and current Red Bull market segment. Literature Review The Formula one championship is characterized as auto racing. Maguire (2007) opined there is only one person inside the vehicle during each race. The Formula represents the rules or policies that each car racer must comply with without exception. The Formula one championships is includes Grand Prix races set in different countries. The results of the Grand Prix race are used for ranking the