Red Bull: the Drink for Generation Y

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

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 is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

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).

"We are dedicated to uphold Red bull standards, while maintaining the leadership position I the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice"

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 New Zealand Ltd. is the local unit of the international giant that is Red Bull. In 2010 Kiwi’s bought $30.3 million of Red Bull, this was up 7.5% from the previous year. In the

The term ‘Glocal’ means to market globally, yet tailor the ‘message’ to appeal to local tastes. Red Bull does not follow a Glocal Marketing

Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.

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).

The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.

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

The marketing strategy should be tailored around the firm's target market; if this were not the case marketing would be then less successful. Each aspect of the marketing mix would need to be formulated with the target market (consumer) in mind. For example the design of the product would need to be such that it would satisfy the consumer's needs. If it did not consumers would see no need to have it and buy a competitor's product. The price of

The strong marketing strategy, which is the “buzz-marketing” strategy, which we have, is one of its main strengths because Red Bull is becoming a wide known brand all over the world.