You are asked to address the following questions:
1. Who are the principal target segments for Red Bull and how are they positioned towards these target segments?
2. Analyse the Red Bull brand using any frameworks you judge appropriate.
3. Comment upon Red Bull’s pricing approach
4. Evaluate Red Bull’s distribution channel strategy
5. Would you describe Red Bull as a national, a European or a global brand – give reasons?
6, What marketing strategy would you recommend that Red Bull should adopt over the next 5 years?
Who are the principal target segments for Red Bull and how are they positioned towards these target segments?
Red Bull has an aggressive international marketing campaign that targets young males. These customers
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Firstly, Red Bull has developed a very strong brand recognition, from its unique and memorable name, its instantly recognizable can, to the logo, which consists of bold graphics. Its slogan ‘Red Bull gives you wings’ has been reinforced with consumers by repetition, consistently making it instantly recognizable by all.
Red Bull segmented the market and positioned the brand very effectively, with its controversial and anti-establishment status. Red bull is not viewed as being just a product, it is a “Way of Life” which is associated with energy, extreme sports and danger, very appealing to its core audience.
Even though Red Bull has been followed and copied several times by similar products, due to its consistent and unique communications strategy Red Bull has managed to stay “fresh and relevant” (how?) and still maintain a leading position in a very crowded market. (how?)
Red Bull’s unique and extremely well coordinated marketing repertoire is without a doubt one of the key factors for its success. Red Bull’s strategy to target its audience with non-traditional ads, made the brand more believable for its “No brands” followers. For a brand such as Red Bull, marketing communications are deemed to be so important that 35% of its turnover goes to communications and events. Through this manner of communication, Red Bull avoids traditional media channels by making the product readily available –
§ Five dominant competitors: Red Bull, Hansen Natural (Monster), Pepsi (Sobe Adrenaline Rush, AMP), Rockstar, and Coke (Tab, Full Throttle)
Red Bull has every brand element covered their name is a household name, Their logo is simple and unforgettable, They have numerous easy of communication whether it is though Television, movies, and sporting events. They use social media such as Facebook, Twitter, Instagram, and youtube. They even have their own brand of music and magazine. All of these marketing elements allows Red Bull to reach their target audience on a mass sale and with social media make every interaction more personal. Red Bull Sponsers over 680 athletes, and host almost 1200 events a year. They have multiple slogans but the two most popular slogans are “ Red bull Gives you wings”, which was changed to “Red Bull Gives you wings” because of a class-action lawsuit, which began in January
The company exemplifies the typical branding success story. Since its inception, Red Bull’s successful market strategy and ways of penetrating the lucrative energy drink market has demonstrated the company’s ability to think outside the competitive box through its innovative branding and sales and distribution strategy. Since the targeted’ age range is quite young, Red Bull employed unique methods to attract its customers. Amongst these non-conventional advertising routes, Red Bull used marketing « below the line », « buzz marketing », and « tribal marketing » (Brocooli, April 2012).
This document will focus on the situation analysis of Red Bull. The first section includes internal environment and external environment which affect the company. The internal environment can show the strengths and weaknesses as well as opportunities and threats can be analyzed by the external environment.
At such a point in marketing, Red Bull had found its calling, so to speak, in its advertising strategies, but that did not stop them from coming up with new creative tactics to persuade more than 86% of the American public to try their energy in a can' (Gschwandtner). In fact, they hired "hip locals" of busy cities known as the MET's (mobile energy team) to drive around a Red Bull logo car with daily missions that include bringing energy where it's needed, sporting events,
market. With Red Bull’s various ad campaigns, the corporation uses a collaboration of extreme sports videos to market the incredible effects of their product. These differ from previous commercials, that use to be cartoony and display young adults, becoming cool and getting the hot girl, after consuming a delicious and nonaddictive energy drink. The transformation of red bull’s ads has shown that they are changing with pop culture by having what is considered most exciting to their core audience. These commercials show the true purpose of Red Bull corporation, selling children on the idea of consuming large quantities of caffeine, Taurine, B group vitamins, sugar, Alpine spring water in the Red Bull energy drink; are healthy and even make you into a fun and interesting
1. What are Heineken’s strengths and weaknesses? Is Heineken a global brand? Why or why not?
Red Bull energy drink competes in the Non-alcoholic drink market which could be the overall Food and Beverage market. ‘Red Bulls target market is young, on the go, who enjoy extreme sports and live an active nightlife, anywhere from 18-35’(Swartz,Jon).
The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis.
Red Bull has a large market share in the energy drink market and it is one of the most popular energy drinks in the world, this may help us to increase the demand for the product and maybe develop a new product within the same brand.
Additionally, Red Bull seek out and create a sense of drama and the spectacular with each event to rival anything Evel Knieval could’ve ever imagined.
Red bull is the market leader in energy drinks. Red bull was found by Dietrich Matchitz while he was visiting Thailand. Technially the formula was made by a man named Chaleo Yoovidhy, who was providing to people to help keep them awake. In Thailand it was reffered to as Krating Daeng. Dietrich tried out krating daeng himself and discovered that it works, primarly because it helped him with jet lag. Dietrich went back to Thailand and collaborated with chaleo into making it a better tasting formula and naming the product Red Bull. Red Bulls popular slogan “red bull gives you wings” brought consumer awareness to the drink. Red bull became popular to men, athletes, students who need cram in a study session and those who work graveyard shift. By 2010 Red Bull was made available in 162 countries. Red bulls main main competitors are Rockstar and Monster energy drinks. Also big corporations such as coca-cola and pepsi. However coca-cola and pepsi do not hold much market share in the energy drink industry, which enables Red bull to keep the lead. They do offer diiferent flavors such as vanilla coke, cherry pepsi etc. Red Bulls line only has one flavor.
If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).
RedBull is also different from other energy drinks that it uses half the quantity of caffeine and sugar than any other competitors energy drink. RedBull had produced many advertisementsas TV commercials and also increases their sales with the help of magazines, internet and billboard advertising. Advertisements in magazines are limited because there are only few magazines which suits to publish RedBull advertisements in them. Internet advertising will gain the response of the particular audience as it truly depends on people using online services. Billboard advertising is also a very good method for attracting customers, but it should be placed at the places
Red Bull has built an image as a trendy energy drink, catering to young adults and young professionals between the age groups of (16-29) years. It also targets young club-goers and private parties in order to spread its picture as a stylish drink. It also believes that it is not just selling a beverage, but instead it is selling a ‘way of life’. Red Bull also uses a catchy slogan as ‘Red Bull gives you wings’. These non –traditional marketing strategies of Red Bull are not unique to any market.