Since Red Bull is such a large company it would not be useful to determine the marketing strategy because it is believed that Red Bull simply cuts through lifestyles. So for a product like Red Bull the best marketing strategy would be behavioral segmentation. Red Bull is a special drink serving a niche market. Consumers of Red Bull are men and women of all ages, who are sporty and very hard working. Red Bull has a very trendy image and gets sold in a lot of bars and clubs.…
One main thing Red Bull Drink does is that it has a distinctive product. The taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks. Red Bull uses premium pricing strategy. The product is priced above that of competitor’s products.…
Interpret market trends and developments BSBMK507A Introduction: Red Bull is an energy drink sold by Austrian company Red Bull GmbH, created in 1987. In terms of market share, Red Bull is the most popular energy drink in the world, with 5.2 billion cans sold in 2012. Austrian entrepreneur Dietrich Mateschitz was inspired by a pre-existing energy drink named Krating Daeng, which was first invented and sold in Thailand. He took this idea, modified the ingredients to suit the tastes of westerners, and, in partnership with Chaleo Yoovidhya, founded Red Bull GmbH in Austria.…
After its introduction in 1987, Red Bull started to fill the void within the sparsely populated energy drinks market and quickly grew to become a household name. With approximately 45 percent in current market share, Red Bull towers above all of its competition in the energy drinks market. Utilizing highly effective marketing tactics that involve TV and radio ads, sponsorship agreements and celebrity endorsements, Red Bull has converted many top athletes causing a slight shift from sport drinks to energy drinks within the general public. Over the years, this trend has caused concern to Gatorade and its competitors since it directly affects sales…
Cause of different laws and regulations, while for passing them, Red Bull energy drink may be different and may not have the same ingredients. Therefor, there are many editions, such as Canadian Red Bull, Thailand’s Red Bull, and also Austrian Red Bull.…
Red Bull is known primarily for its dominating position in the energy drink business, selling its Red Bull Energy Drink.…
Marketers are increasingly segmenting their market on consumer’s lifestyle. Red Bull cola must also target psychographic segments as it appeals to be iconic brand. They have more focus on life style and social class of people. They are trying to be trendy.…
The category is dominated by 5 major brands (94% of dollar sales), with Red Bull far above the pack with a 43% dollar sales market share. The other 4 are in close competitions with dollar sales market shares from 10-16%. Though Red Bull continues to grow, so does the competition. New, aggressive competition into the market and brands offering lower prices has brought Red Bull's market share down from 82% in 2000 to 43% in 2007. This 43% of dollar sales is maintained with only a 30% share of unit case volume. Because of loyalty to Red Bull, consumers pay a premium price for its products. Red Bull's 8.5 oz. cans sell for the same price (approx. $2.00) as many competitors' 16 oz. cans and their 16 oz. can sells for around $3.50. This loyalty puts Red Bull far above other brands and leaves them to compete with each other on price and packaging. Pepsi and Rockstar are not projected to have any significant media expenditures in 2007, but Red Bull and Hansen Natural Corporation are projected to increase their media expenditures to $60.9 Million (from $39.6M) and $153,800 (from $61,100) respectively. Once again, it is clear to see the major difference between Red Bull and the rest of the group. Coca-Cola (Full-Throttle, Tab) is projected to decrease its media expenditure from $7.3 million to $492K, which is still more than Hansen, but far from the expenditure that Red Bull maintains.…
I have been asked to evaluate the marketing strategy for Red Bull. More specifically, I have been asked to identify new ways that Red Bull could maintain its leadership position in a maturing category. Although Red Bull did create this market and is a top seller for energy drinks, it is now vulnerable to other competitors who have the resources and brand recognition to aggressively compete, such as Coca-Cola, PepsiCo, and Hansen, to name a few.…
Till 2009 Red Bull refrained from selling to wholesellers and used to sell the product to retailers at a single price. They relied heavily on store executions to get the necessary retail push. Since 2009, Red Bull has begun selling to wholesellers and began the practice of price cutting. The reasons for these changes in strategy was that the competition in the energy drink segment was increasing through the improved presence of XXX and Cloud9. As a result of these changes there is a high volatility in the prices of Red Bull in the retail channels. There are two consequences to high price volatility/price cutting: 1. Lower margins to the company: Selling at multiple price points and focusing heavily on retail push will lose the company a lot of money which it would have been entitled to had it sold on a single price. 2. Retailers remain confused regarding their costs for stocking Red Bull. Also, retailers complain about missing out on short-lived lucrative prices as they were already well stocked and couldn’t afford to buy more from the distributor when the low price was on. The cost per can of Red Bull varies from Rs 65 – Rs 75. The MRP of the product is Rs 85. Hence the retail margins vary from 11.7% to 23.5%.…
Diversifying their products: Red Bull should show their innovation to customers to freshen the image as well as to create entry barriers against other competitors through product diversification. They can introduce new kinds of drink with more vitamin plus or more flavours but they have to make sure that the new kinds are also energy drinks to maintain the…
Red Bull is the biggest player in the market using an aggressive strategy for promotion of their products. The three main strategies to promote Red Bull products are Media Advertising, Sponsoring and Free sampling.…
Now that it is clear what industry Red Bull belongs to, take a look at how they fit into the functional drink industry. According to an article in Nutrition Journal, Red Bull is the current leader in the energy drink market (Malinauskas, Aeby, Overton, Carpenter-Aeby, & Barber-Heidal, 2007). Supporting evidence was supplied in an assessment of the energy drink market size in 2010 stating that energy drinks account for 62 per cent of their market in the United States, Red Bull holding 42 per cent of that 62 per cent (Heckman, Sherry, & De Mejia, 2010). Simply put, Red Bull, a single and private company, dominates almost half of the functional drink market. This proves they make trends. They were the first company to distribute such a drink, which is why they are still the most popular. Not only is Red Bull the originator, they are the best.…
According to survey results Red Bull is a very strong brand, which is associated with great unique taste, fun time, energetic sports, parties and nightlife, and cool advertising.…
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.…