Marketing Plan For Red Bull Essay
Situation Analysis Market Summary Market needs Our team recognizes that there is an unmet need to reach out to a larger demographic to males and females interested in general health and fitness. The current demographic for those purchasing Red Bull products is 18-25 year old male and females interested in extreme sports, an extreme lifestyle, and an extreme energy boost. Our team feels that there is a need to market to 18-45 year old male and females interested in more mainstream health and fitness. For example, those who are members at gyms and fitness facilities, eat healthy, and live an active epistyle.
We do not feel as if the Red Bull Total Zero has fully marketed to this demographic. By marketing Red Bull Total Zero to the fitness and those who are health conscience, we are allowing those who would normally be interested in a product that is zero calories, zero crabs, and zero sugar to have the ability spark interest in the energy drink market— and more importantly chose the only zero calorie, zero Carr, and zero sugar drink of its kind, Red Bull Total Zero. Market Trends Within most recent years, Red Bull has seen an immense amount of
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Some of this competition, such as Monster, manufactures and distributes a larger flavor variety of drinks. Not only are the energy drinks being marketed for energy boost purposes, but competing energy drink companies are providing additional features to their product, some of which include, size, flavor, and ingredients. In recent years, energy drinks have become incredibly popular. They are now available in many vending machines Among college students, they are quickly beginning to rival coffee in terms of their popularity for late-night (or all-night) study sessions.
Dolan) Many of the energy drink companies have now begun to market low carbohydrate drinks due to the continually criticism of the products. “However, many energy drinks are loaded with sugar-after all, they are similar to soda-and are therefore a bad choice for people on diets that restrict carbohydrate consumption. Thankfully, energy drink manufacturers are now making low Carr energy drinks. “(Parsons, Alex) However, Red Bull Total Zero is still the only energy drink of its kind to offer an effective and reliable zero calorie, zero carbohydrate, and zero sugar energy drink.
The energy drink industry targets young adult consumers ages 18-25. (Chandeliers, Gerhard). Through this energy drink companies use platforms such as social media, college campuses, sporting events, and bars and nightclubs to reach their public. SOOT Analysts Below we have determined Red Bull’s SOOT analysis. We found this beneficial to our project, because it gives our team the ability to outline how to use the company’s strengths to overcome their weaknesses and threats. We were able to implement Marketing Plan For Red Bull 16 By Bryan-Demarcate Zero. SOOT Analysis Chart STRENGTHS Category Leader Global Presence
Unique and consistent marketing image Product Size Product effectiveness WEAKNESSES Lack of variety in flavors Controversial Ingredients Narrow marketing scope OPPORTUNITIES Partnerships with other products Sponsorship opportunities with extreme sports groups and facilities Easy to sell in bars and travel with to sporting events THREATS Negative Publicity Growing competition with more natural ingredients and more flavors Unmet target publics Strengths A great amount of Red Bull strength comes from the continually growing leadership within the energy drink field. Penalty, Jeff The years of reputation and brand alluding has led to this being one of Red Bull’s greatest strength. The strong, identifiable brand has lead to Red Bull to become a household name. If you are looking for an extreme energy boost, Red Bull has consistently portrayed that by associating the product with extreme sports and activities. When the average consumer hears energy drink, they think Red Bull. Because of this, it is a intangible asset that provides Red Bull with an immense amount of opportunities as compared to their competitors. Dolan, Kerry) Broad Geographic Persistence- Red Bull is a globally recognized brand. Red Bull can currently be found in 165 counties and they are sponsors in international events and activities involving extreme sports such as the Stratus Jump from outer space. Red Bull is internationally manufactured in Austria, and is currently seeking out a new venture to manufacture in Brazil. Red Bull global dominance makes way for internationally opportunities. (Penalty, Jeff Product Size The product size of red bull makes it’s branding unique. The size of this product makes it useful to store away.
It is the perfect size for traveling and is the smallest of any of the other competing energy companies. Wry. Redouble. Com) One of Red Bull’s greatest strengths are the uncommon marketing strategies the company puts forth to help to keep the company’s consistent and identifiable brand. I. Relationship marketing- Red Bull cars with “Red Bull Girls” travel throughout the country distributing free Red Bull samples. They can be seen traveling in Red Bull cars, wearing Red Bull gear and distributing Red Bull samples outside of college campuses and sporting events. T. Extreme Sport Sponsorship- Red Bull always put a hand in extreme sports sponsorships. One of the most recognized examples of this as the internationally televised Stratus Jump. “Beyond that, a stunt like this- dangerous, to be sure, but consistent with the other life-threatening events Red Bull sponsors-presents little downside for a company that is no stranger to renegade marketing. Red Bull supports about 600 athletes worldwide (120 in the U. S. ) in 160 different kind of sports and invests about one third of its turnover in marketing. This is really about generating some buzz around a newsworthy event and doing so in a way that adds to the longstanding positioning of the brand that ‘gives you wings,” Andrews said. (Rooney, Jennifer) This unique marketing approach lends Red Bull an identifiable edge and brand. This “stunts” and sponsoring of extreme and dangerous events provide Red Bull with great free-advertising pieces and newsworthy media coverage. Iii. Social Media- Red Bull using social media unlike any of the other energy drink companies.
One of the most recognized marketing moves of Red Bull, is their Youth Channel which features extreme sporting activities that are associated with Red Bull. The public turns in to this channel due to the shock value that these videos offer. (http://www. Youth. Mom/user/redouble) This channel allows for users to interact with the company and watch over 3,000 free online videos about individuals drinking Red Bull and participating in extreme sports and activities. Weaknesses Product Limitations As stated in one of red bull’s strengths, Red Bull has a consistent image.
Instead of creating an umbrella brand, Red Bull prides themselves on having a great product and executing it well. However, as energy drink competitors continue to look for marketing and product development strategies to compete with Red Bull, they are using Red Bull’s single channel image and focus again them. . Lack of flavors- As compared to competitors, Red Bull does not have the flavors such as their competitors. Those looking for a flavored energy drink, will have to go elsewhere to a competitor. It. Unnatural products- Competitors such as Monster, now are creating their drinks using natural ingredients.
Red Bull has not yet changed the composition on their product. Some consumers are interested in consuming natural products as they appear to be the more healthy alternative. Controversial Product- Being that Red Bull is the leader of the energy drink market, they are thereafter associated with the various scrutiny that is associated with all energy drinks. There has been scientific evidence that states that energy drinks such as Red Bull can (Penalty, Jeff Because of this, many buyers are turned off to Red Bull because they are seen as the identifiable energy drink brand.
Narrow Marketing Scope- As has been previously stated, Red Bull narrow image and market scope is Just as much a strength as it is a threat. There is an immense amount of benefits that can be seen by noting Red Bull consistent image and brand of gaining an extreme boost and living an extreme lifestyle. Because of this narrow strong and identifiable image, Red Bull continues to see great success. However, this idea also hinders Red Bull. Because of this “extreme sports and extreme lifestyle” image that Red Bull projects, it leads many individuals to be uninterested in the product because they do not associate with an extreme lifestyle.
Opportunities Partnership with Other Companies Because Red Bull continues to create a consistent product with a consistent image and a long and trusting brand, this lends the ability for other companies to be interested in associating with Red Bull. For example, many bars and vodka companies ill promote “Red Bull and Vodka” drinks. As well, extreme sport players are willing to be sponsored by Red Bull because of the association the company has to extreme sports and abilities. Easy to Sell Because of the product’s size and ability, in a small package it is able to lend an individual an extreme energy boost.
It is small enough to be stored away in bars, distributed and put inside your pocket or purse. Because it is not a bulky can such as its competitors, Red Bull is made to be convenient and effective. Sponsorship Opportunities Because Red Bull is a globally recognized company, they have the ability to sponsor porting events throughout the world. Sports teams and extreme sporting events are willing to take Red Bull on as a sponsor because of the “extreme sports and extreme boost” that the company is internationally associated and recognized as having.
Threats Competition As the market continues to change, Red Bull most recently has been more competition than ever before. Competitors such as Coca Cola, Monster, and Pepsi are proactively attempting to gain pieces of the energy drink market share. Competitors such as Monster, are offering different types of energy drink products such as a variety of flavors in which Red Bull does not offer. As well, some energy drink companies now product energy drinks with more natural products. Red Bull has not and has made no report to change the mixture of their products.
Negative publicity Throughout the world, the media has associated and reported the Red Bull products to be unhealthy and dangerous for our health. In France, the French Health Authority, has even made the selling of any Red Bull products illegal. Red Bull continues to be scrutinized because of their high caffeine content and unnatural products. Doctors often recommend that children and teens stay away from the Red Bull product Unmet Public Because of Red Bull’s narrow scope marketing which appears to be a benefit for the company, it has also worked against Red Bull.
Competitors feed off of Red Bull’s weaknesses by reaching how to publics in which Red Bull cannot obtain. An example of this is that Monster is able to reach individuals that are interested in natural products. Because of Red Bull narrow product line, and narrow scope marketing, they cannot obtain this public. Red Bull currently has a very focused demographic and a lack of focus on the older ages and other lifestyle interests. Competitive Analysis Red Bull can be easily copied because the ingredients were printed on the can and the drink was not patented.
Even though the taste of Red Bull did not do well in taste tests, it was the marketing strategy that made Red Bull successful. (Chandeliers, Gerhard). 000 In the late ass, around the same time that Red Bull began to spread across Europe, American’s were drinking Jolt Cola, which was advertised for having “all the sugar and twice the caffeine as Coke”. It can be said that Red Bull was the first energy drink to be in competition with soft drinks but also created the new energy rink market.
After Red Bull hit the market in the late ass’s, many other companies have tried to implement a similar product to that of Red Bull. An example of this was when Handed (the natural soda company) created Monster Energy Drink. Red Bull has approximately 100 major competitors, such as Rock Star Energy drink, Full Throttle, and Monster. Not only does energy drink companies fall in these 100 major competitors of direct competition, but there is also the sector of soft drinks that have proven to be an available component.
Coca-Cola (Full Throttle &Monster), Pepsi (AMP Energy Drink) and Storage (Refrained as G and 62) are three of Red Bull’s major competitors. However, in the end, none of the energy drinks have been able to claim Red Bull’s 70-90% of the market share in over 100 countries worldwide, despite these competitors (Penalty, Jeff. Competitive Position The following table is the US soft drink market share: Although Red Bull only had 0. 8% market share of soft drinks in 2010, the market share increased 0. 1% from 2009 and Red Bull is the only energy drinks in top 10.
The position of Red Bull in energy drinks market: Red Bull was the most popular energy drink in the world with 5. Billion cans sold in 2012. TTS mainly competitor is Monster which had 39% market share. Energy Drinks they live a lifestyle that is fast paced and full of moments that are mentally and physically stimulating. Red Bull can help them get through their demanding day. It is also a good choice for people who expect them to be aware and alert. Competitive Advantage Red Bull has a global market share. In many countries, it is even a symbol for energy drinks.
Monster pays more attention on local advertising. What they have done is expand into content marketing and drive an innovative approach that pushes our mandarins of marketing. Red Bull relies heavily on bars and night clubs for its sampling events, alternative sports have also proven to be a successful product-trial arena. The company underwrites a number of extreme sports competitions and sponsors about three dozen athletes. Red Bull sponsors extreme sporting events such Shawn White, the Art of Flight, and the Red Bull Air Race.
It is a large global audience. Monster is a local approach such as sponsors T-shirts, Banners, and Skate boards & Stickers. Competitors Red Bull’s mainly competitors are Coca-Cola Co. And Pepsi Co. , which have more than 0% market share in soft drinks market. Because they have different target market, Red Bull should focus on promoting the advantages of drinking energy drinks. Even though Red Bull has its own cola products, it is hard to occupy a part of carbonated drinks market. Most people know Red Bull as a kind of energy drinks.
In energy drinks market, Red Bull’s mainly competitor is Monster. Monster is threatening Red Bull’s dominate position in energy market. Monster represents the biggest threat to Red Bull as it contains natural ingredients, which seem more desirable than Red Bull for some consumers. Red Bull has a primary mission that how to improve its influence in whole drinks market, while keeping the dominate position in energy market. Product Analysis Product Lines Red Bull has 5 product lines. The best sell is definitely its energy drink.
The others respectively are Sugar Free, Zero Calories, three different Editions of energy drink, and Cola. Comparing to Monster’s 6 product lines, Red Bull has more simple designs and tries to make them classic. Flavors Red Bull only has 7 flavors, which is far less than Monster. However, most people approve the original flavor of Red Bull. Red Bull’s priority is to promote a lifestyle and but rather an entity of excitement and extreme/action sport. Content & Price Red Bull has MGM caffeine in one cane, which is 8. 3 OZ.
Monster has 184 MGM caffeine per 18. 5 OZ (one cane), which is bigger than Red Bull. Other competitors offer more caffeine and more sugar per can, while others use pricing to their advantage. The prices of Red Bull and Monster are the same, $2. 99 per cane. Product Awareness and Attributes Because of its unorthodox marketing strategy Red Bull has been able to stay on top of the energy drink market. By using extreme sports and hosting/sponsoring other ajar sporting events Red Bull has been able maintain a high visibility within their intended market.
Its packaging and uncommon flavor have also contributed to the popularity of Red Bull products. Demands Analysis Thee demand Off Redo Bull Increases Detach year and that is Dividend with how rapidly Red buy has Spread Knott only all over the United States, but how it spread throughout the world. While Red Bull has lost market share in the United States since it was introduced, the overall demand for energy drinks has risen since then, their decrease in market share can be attributed to new products entering the marketplace.
Since these new products have yet to have the global impact Red Bull already has, Red Bull’s place, as the largest energy drink maker is not in Jeopardy. Red Bull is attempting to gain back some market share that they last due to increased competition by offering new products geared towards a unfulfilled demographic. By offering a new zero calorie energy drink, Red Bull is planning on marketing the product to men and women interested in fitness.
With the latest offering Red Bull is attempting to tap into the growing market of calorie conscience consumer, “The company also cited new research that shows continued growth for educed carbohydrate/calorie energy drinks, which now account for 31 percent of the category. ” Purchase Rates and Buying Habits Red Bull consumers are loyal purchasers. They buy Red Bull for its high-energy kick before a class, before a work-out, before performing at a top level. Red Bull is also purchased to drink recreational during social function at nightclubs and bars and used to create various alcoholic drinks.
Red Bull primarily uses a grass roots campaign, to enhance their market share, in the beginning of marketing the product in the United States; Red Bull used Collegiate Brand Managers to promote the drink IA free samples handed out on college campuses. The company also organized extreme sports events–for example, cliff diving in Hawaii or skateboarding in San Francisco, reinforcing the brand’s extreme, on-the-edge image Branding Since it hit the market in 1987 Red Bull has become synonymous for energy drinks.
Red Bull was the first energy drink manufacturer to introduce the sugar free energy drink, a market which has now evolved into the total zero energy drink. As the world leader in energy drinks it is no surprise that Red Bull would be the front runner in the total zero energy drink market. Red Bull says this new drink underwent minor formulation tweaks but still aims of course to taste genuine, loyal drinkers will recognize the flavor as well as the subtle changes. – (See more at: http:// www. Drooling. Com/reviews/redouble-totaled/#stash. Damages. Puff”) Red Bull boost without calories, carbohydrates and sugar; and for consumers who love the Red Bull brand. Red Bull Total Zero improves performance, especially during times of increased stress or strain, increases concentration and improves reaction speed, and stimulates the metabolism. Red Bull is the number one choice for those who use energy drinks in sports, for fitness, at work, while driving and while studying. ( http:// www. Conductresses. Com/Red-Bull-Total-Zero-Launched) The Red Bull Total Zero beverage segment is growing at a rate of over 200%.
Red Bull already has an uncommon branding strategy in that it not only sponsors major sporting events it has become the host as well. In addition it has created an appeal to the extreme sports enthusiast with their “Red Bull gives you wings campaign” By expanding on this branding strategy and promoting Red Bull Zero in gyms and fitness centers we are joking to expand our target market to a broader range of people. Macro Environment Demographic Red Bull distributes their products in over twenty countries. Although the product is made and manufactured in Austria, it have a dominate position in global energy drinks market.
The demographic for Red Bull is determined by location, but instead by age and interest. So its customers are not necessary to be distinguished among the geographic areas as well as the cryptographic segmentation. For a product like Red Bull it would be far too narrow as it cuts across lifestyles, demographics and socio-economic boundaries. So the best solution would be to set the customers as a behavioral segmentation. The reason for that decision is because in a behavioral segmentation the individual’s relationship with the product and the use and benefit sought from the product.
Red Bull is not Just an energy drink it is primarily a utility drink to be taken against mental or physical weariness or exhaustion. It’s used helps to increase endurance and heighten alertness as well as reactions and generally spoken the use of Red Bull helps to cope with the challenges of everyday life, which includes work, leisure and sports. However, as a kind of energy drink with caffeine, Red Bull cannot target to everyone. It does not suitable for children and old people. The main consumers are from 18 to 45 years old and are those who need refueling energy for the modern high-paced life of tension.
Economic Red Bull appeals to a global market; therefore the current global economic situation will have an effect on its performance. The truth is, we are going through the most severe global financial crisis since the days of Great Depression. However, it is not only a recession, but also is an opportunity. More and more people are working hard to help their financial problem and Red Bull can provide the energy they need. Some people think under the situation such an ‘expensive’ drink like Red Bull will not be popular. However, the fact is that people need more psychological enjoyments when there is a financial crisis.
For example, Hollywood Golden Age is a good proof which Technological Red Bull is popular because of its unique taste. It gets exclusively produced in Austria from where it is exported around the world. Producing it only in Austria is in order to guaranty consistency in taste. The Fauna sold in Brazil tastes for examples slightly different from the one sold in Europe, in order to meet domestic preferences. Red Bull wants to ensure that it tastes the same all over the world, also ensuring that the recipe will be kept safely in one place.
Red Bull is normally produced in mall cans, but glass bottles are an alternative in the case that they run out of cans -which has happened before. Political/Legal When Red Bull was trying to occupy the soft drink market, it was introduced as a new non-alcoholic drink with a new concept, namely energy drink. At first the Health Organization was suspicious that Red Bull could be a starter drug. Their skepticism even increased after rumors that Red Bull contains ingredients like bull’s galls. However, the fact that Red Bull has been used in Australia for 9 years and in Asia even for 30 years without any complaints led to increased confidence.
Furthermore a study carried out by an independent institute (ISMS) in 1998 proved that Red Bull has stimulating effects like caffeine, but does not lead to addiction. Nevertheless Red Bull still needs to be approved by each country where it shall be sold, which is a very time consuming and therefore expensive. Some countries still have doubts about Red Bull such as Hungary where Red Bull is forbidden. Initially Red Bull was only allowed to be sold after its harmlessness had sufficiently been proven in England.
Its composition cannot be completely public as a business product so it is hard to persuade policy makers to trust its safety. Social/Cultural Unlike the older generations, younger people tend to like to try new things, there is constant change, while people’s life rhythm becomes faster and faster. Coffee once thought irreplaceable is now being edged out by the energy drink market, Red Bull Total Zero is for those hard working individuals who need an energy boost, without the crabs and calories, Just to get through the day, it is the “New Coffee”.
As the energy drink market continues to grow so does the popularity of Red Bull Zero. Marketing Strategy Marketing objectives The objective of this marketing plan is to ensure that Red Bull remains the world leader in energy drinks. Red Bull is currently the leader with a 42% market share; Monster energy drink is a close second with 37% market share followed by Rocks at 11%. In order to stay a world leader and continual valuable contender, Red Bull’s racketing strategy is geared towards the adventurous individual with the “Red Bull” gives you wings slogan.
The idea of this logo is, with Red Bull, one can have the ability to do the unheard. We would like Red Bull to continue its current marketing strategy, but taking part in extreme sports and activity sponsorship, promoting, and advertising. However, we believe that the Red Bull Zero can use the current Red Bull image and brand and expand upon the strengths of the strong and consistent reputation. Our marketing objective is to effectively promote and market the Red Bull Zero calorie product to men and women interested in fitness.