Mktg 2101 Red Bull Case Study
MKTG 2101 Consumer Behaviour
Case Study - Red Bull: Rampaging through Global Markets
1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future?
Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities. Mateschitz’ strategy aimed to target opinion leaders, believing that “the authority of one alpha bee can influence the buying habits of hundreds”. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto “No Red Bull, No Wings”.
In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China. With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way.
2. How does Red Bull arouse the motivations of customers to purchase its energy drinks?
Red Bull and Mateschitz explain “we are always looking for a more creative, different point of view” (Dolan 2005) to promote and present the
Case Study - Red Bull: Rampaging through Global Markets
1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future?
Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities. Mateschitz’ strategy aimed to target opinion leaders, believing that “the authority of one alpha bee can influence the buying habits of hundreds”. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto “No Red Bull, No Wings”.
In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China. With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way.
2. How does Red Bull arouse the motivations of customers to purchase its energy drinks?
Red Bull and Mateschitz explain “we are always looking for a more creative, different point of view” (Dolan 2005) to promote and present the
References: * Dolan, K. (2005). The Soda With Buzz. Forbes.com http://www.forbes.com/global/2005/0328/028 print.html * Sciffman, L., O’Cass, A., Paladino, A., D’Alessandro, S. and Bednall, D. 2011. Consumer Behaviour, 5th Edition. Pearson Prentice Hall: Australia * Gschwandtner, G. (2004). The Powerful Sales Strategy Behind Red Bull. Selling Power. September. http://www.sellinpower.com