Case Study Red Bull

In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is

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

Red Bull targets only a particular segment of market and therefore makes its product only available at those places where the target can be reached. The energy drink can be bought at colleges, supermarkets and is mainly associated to extreme sports. In particular, the energy drink has also known a tremendous success in India, where the segment is the fastest growing in the category, due to India’s youth centric population and fast urbanization. Red Bull was actually the brand that created energy drink category in India (Docstoc, April 2012).

Red Bull is now in the position as the market leader of energy drinks sector, which hold up to 70 percent of the market shares

New employees in the career of sports marketing lead by example from some of the most successful products such as the Red Bull energy drink and Skullcandy products. The most efficient way to be successful is to promote products with several sponsors. For example, everyone knows what Red Bull is, a sports drink known for its burst of energy right when we need it. The company has had great success taking a new approach on sponsorship. Conway argues in his article “A Sports Marketing Success Story” that “Red Bull wants to own teams and events. The company has a huge focus on brand management and ownership allows it to completely control how its brand

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).

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).

The energy drink industry must have a SWOT Analysis just like any other industry in order to assess the market before entering. The strengths in the energy drink industry are its “quick fix” for consumers; their products serve as a quick burst of energy for their target consumers of people on the go. Other strengths include the high brand awareness and relative attractiveness in the industry. Everyone knows what energy drinks are and the purpose they serve so companies in this industry do not have a problem integrating their product into the energy drink industry; this serves as a critical success factor in the industry. Energy drinks being relatively attractive in the industry is a definite strength in terms of advertising because often energy drinks are portrayed as that “must have” product that the consumer cannot go without.

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")

Red Bull receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.

Red bull has dominated the energy market for a decade now. Its popularity and stylish design has allowed it to be charged at a premium price. Red Bull is a stylish and vibrant energy drink that is priced at least five times higher than the ordinary soft drink. Red Bull strongly believes that it offers its consumers something more than a beverage; it believes that it offers them a ‘way of life.’ It provides its consumers with energy and related brainpower to make the most of their time. Due to all of the above reasons, Red Bull can afford to price itself at such a high price. Therefore, it is important that Red Bull chooses those markets where the people have the financial capacity to purchase their product

Red Bull is not differentiated by gender, race or income, but does position itself as young, sporty and dynamic. It is also perceived as the market leader. The brand is not associated with a type of distribution channel, but does insist on usage situations – anytime, anywhere, for any situation (see advertisement A in Appendix 1).

Given Red Bull’s success, it is unlikely that a change in the target market will be needed. Red Bull will thrive if they remain compliant and

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.