Red Bull Company Analysis

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,

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).

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

The effects of this emphasis on such a target market can be seen in the advertising campaigns of the energy drinks. Many of the names of the beverages, such as ‘Crunk’ or ‘GoFast!’, appeal to these specific consumers and the marketing strategies that revolve around sponsoring public events, such as ‘Red Bull’ and the Australian Grand Prix, or celebrity endorsements reflect this focus.

The analysis section will require me to evaluate each of the strategic options that we might have. I am going to layout the pros and cons for: heavy users, all energy drink users and the adult segment, as shown below in the appendices as figure 1-1. Single-serve energy beverage drink retail prices have generally settled at roughly $2.00 per single-serve package, regardless of size. As a consequence, larger single-serve packages are priced lower on a per-ounce basis than smaller packages. Shown in figure 1-2, it shows that our drink Rush NRG will need to come down a little bit in prices to be competitive and make margins meet.

Red bull is not the leading energy drink provider, but is number two with 36 percent of the Australian energy drink market (2010,popular energy drinks), the red bull company sold over 5 billion cans in 2012 and have sold over 35 billion since it started in 1987.

Despite of such threat, Red Bull has not lost its grip in its most precious

The target consumer market that should be chosen for a new energy beverage brand is males between the ages of 15 and 26. Marketing to this age group falls between the 12 to 34 year olds that estimate to make up 70 percent of the energy drink market (Kerin & Peterson, 2010). This would allow them to still market to the heavy users but would be able to narrow it down to a specific age group within the market. Marketing to this group would allow you to focus on groups such as high school & college students, athletes, and young adults entering the work force or newly parents. The students that would be using the energy products can use it for staying up to study or to help wake up and be alert in class. Athletes could use this product for refocusing after a workout or practice so they would crash. Young adults could use this energy drink for staying up in there social life late at night or to make sure they are awake in the morning for that new job to impress the boss. A different market would be the parents of a newborn. Markets like this could be beneficial because parents want to stay up to feed their new born and make sure everything is okay during the day especially after a sleepless night or two. Marketing to specific target markets helps companies clarify what the product is used for and how it can be beneficial instead of having it say we

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 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.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

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.

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.

‘ Student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed.

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.