Redbull Branding Strategy

1207 Words Jan 17th, 2015 5 Pages
Question 2. (by Shenhua Huang)
Theory section
Market segmentation strategy involves dividing the market into different groups and how a market is segmented is based on certain variables. A Company must identify the parts of the market it can serve best in order to reach their specific target market as well as to achieve the maximum profitability. According to Prof. Dr. Christian Schuhart, several criteria used for different market segmentation include: demographical, socio-economical, psychographic and observable behavior segmentation.

Demographic segmentation is market segmentation based on various demographic factors such as age, gender, marital status, social class, etc. It helps the firm to divide the market into several segments
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The drink is popular with a young niche demographic population, in general young people at this stage of life are interested in extreme sports and challenging recreational endeavors.

Red bull is sold as an energy drink and is designed to against mental and physical fatigue, it can be consumed at various occasions, be it during sports competition, at work or studying, driving or socializing. Red Bull’s eponymous brand has achieved remarkable global success and 30-40% of its sales are re-invested back in marketing and promotional activity. Red Bull’s target audience opens up to all those seeking action and adventure as well as a mean to fulfill their desires.

Red bull does not satisfied its branding approach by simply just produce an energy drink and offer it to its target consumers, they put in the shoes of the needs and wants generated from the consumers and think from consumers’ perspective therefore raised the question of why its consumers need their product: when the consumers are tired after strenuous activities, they need refreshments to regain their energy and power back, and that is the perfect timing for Red bull products to be on stage.

Hence a wide variety of activities are sponsored by Red bull, ranging from different types of sport activities to all kinds of music and entertainment events, focusing on the fulfilling the needs, wants and values perceived by their young target consumers. Red bull also rely on its 5000 student

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