Last updated: February 26, 2019
Topic: BusinessMarketing
Sample donated:

Currently Red Bull is targeting 16-29 year old young urban males, which is a limited market. Expanding the targeted market to other segments of the population would be a prolific move for Red Bull, expanding its horizon. The slogan “Red Bull gives you wings” is directed towards young people with active lifestyles interested in extreme sports and challenging recreational endeavors. It’s being marketed to combat mental and physical fatigue and to improve performance when it comes to sport, work, study and socializing.

The market strategy of Red Bull gives the impression that it’s only targeting males and people who are interested in extreme sports. It could be interesting for Red-Bull to target different and untouched segments. First of all, in rural areas lay many jobs and activities that require intense amounts of energy, especially in countries where Red Bull is already well established (i. e. Europe and North America). These jobs include lumberjacking, construction, and others. A handy can of Red Bull will enable these types of people to endure physically demanding jobs in an affordable, easy, and effective way.

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Furthermore, in rural areas sports is a popular pastime, from jogging to tennis. Red Bull need not only be associated with the “fast-lane” type of lifestyle but also to include the calmer, though tiring, environment. On another hand, Red Bull should expand their target market to less extreme sport enthusiasts such as golfers, women, and health conscious consumers. Many women find themselves in challenging situations, from active careers to housework and the raising of children.

Between juggling all the above and trying to keep some energy stored to promote a healthy (possibly sports related) lifestyle, Red-Bull can advertise itself a health savvy choice that does not require time and miscellaneous expenses (such as stopping by cafes). Moreover, the age to which Red-Bull’s image is associated to could be expanded to fit a newer and aging generation, in which the elderly are now finding themselves more and more willing and able to engage in sports, frequent more outings, and remain engaged in the socio-culture spectrum.

Ages of people from 30 to 50 are notorious for being constantly over-worked, stressed, fatigued, and lacking sleep. Red-bull will be able to provide boosts in dire situations near burn-out or provide a boost of energy required to engage in non-work related activities (such as sports and spending time with the kids). Furthermore, Red-Bull would be appropriate as a substitute for people who either dislike or do not have the time to drink tea or coffee.

These people, just like most, would probably need a daily dose of caffeine (which has been proved rather healthy for the body and mind) and Red-Bull will offer a practical, and hopefully tastier, choice. Finally, some markets such as France and Denmark which have banned the sale of Red-Bull should be approached in a way that would allow entry and boosts sales. Potentially implying the possible economic benefits of such a move, alongside a more productive active youth, Red Bull could find itself in two or more countries which market share could be significant enough to boost sales.

Red Bull falls in-between the limited problem solving and the routine problem solving. People who never used Red Bull previously and have been influenced by the health concern wave would probably be reluctant to try Red Bull and would probably do some research about the side effects that can occur and thus would take more time to make the purchase decision. On anther hand, consumers who are familiar with Red Bull will use their cognitive learning and will be more at ease making the purchase decision. This being said, the consumer behavior influences may be elaborated as the following: Psychological influences:

All Red Bull consumers have an extrovert and extreme personalities. They view themselves as action-oriented people who are at the same time impulsive, enthusiastic and rebellious. All in all, consumers of Red Bull display characteristics often attributed to the brand – speed, power, and risk-taking. Moreover, much of the consumer behaviour attributed to the consumption of Red Bull is learned- i. e previous experiences. People who previously used Red Bull at times where they experienced extreme fatigue and distress know exactly what to do the next time they feel worn-out and exhausted.

They have developed a kind of brand loyalty and will exhibit the same type of purchasing behaviour over and over again. Sociocultural influences: Opinion leaders are perfect targets for Red Bull. They play an eminent role when it comes to the consumer behaviour. They shape the business by setting an example for the rest of the consumers and by spreading ideas that will eventually push the end user to adopt and buy the product i. e. – Red Bull. In the Red Bull case, the opinion leaders are mostly from the world of sports and more precisely the world of racing and extreme sports activities.

The whole Red Bull network includes more than 500 athletes, numerous artists and opinion leaders that influence the consumers day after day and play a key role is expanding the Red Bull market share. Word of mouth and buzz marketing also play a role especially in the reference group circle a potential buyer might be in. Buzz marketing aims at targeting and occupying all channels of communications in order to create significant “noise” and therefore interest in the market place for consumers to talk about the product and try it.

Effectively, buzz marketing is always about surprising and delighting the customers. Since its launching, Red Bull employed the buzz marketing strategy lucratively by exceeding the expectations of its consumers and always pushing them to the edge of trying new-fangled activities while consuming their premium product. Question 3 Even though Red Bull has been in the market since 1987 and is already dominating the energy drinks market, launching a new marketing strategy for Red Bull would still need a market research.

Markets are varying day after day and the consumers’ needs are also changing. For Red Bull to keep track of these changes and to effectively implement its marketing strategy market research would be an inevitable step to ensure the growing market share of Red Bull. The marketing research that Red Bull should adopt would be of an exploratory and descriptive nature. Exploratory in the sense that Red Bull ought to define its horizons and its possible expansion plans and descriptive in the sense that Red Bull would need to study the basic characteristics of the segment that it might target.

Reliability and validity would be 2 key issues that Red Bull should consider carefully for accurately assessing the consumer needs. The market mix consists of the following: • Price • Product • Place • Promotion Price: Since its introduction Red Bull has been positioned as a premium energy drink. The price of a Red Bull can is set above the average price of equivalent energy drinks reflecting the supremacy of Red Bull in the energy market. Ultimately this pricing plays an eminent role in setting the image of Red Bull and should not be changed in any way.

Product: there are 2 major issues in regards to the product itself: • Health concern • Mixed reviews of taste Red Bull has been associated with death cases across Europe. This led to rising health concerns that affected negatively Red Bull. These concerns should be addressed accordingly reinstating the safety and benefits of the drink rather than the potential harm that it can cause. Moreover, many people believe that the taste of Red Bull is a major drawback and thus Red Bull might want to reconsider adding some additional ingredients or introducing some flavored drinks to meet the various tastes of its consumers.

Place: Red Bull should focus on its current distribution channels. In addition to that Red Bull should also strive to enter the following countries: France, Denmark and Norway. The potential gains are enormous especially that those countries are touristic countries and that the sale of Red Bull at nightclubs and bars can be profitable for the company. Promotion: In focusing on exciting, dynamic event marketing and campaigns targeting consumers outside of the normal advertising model, Red Bull have created a worldwide brand that remains edgy, fresh and on the cutting edge.

It should keep up this type of promotion that’s keeping it aside from all other competitors. All in all, I believe the most strategic marketing mix that Red Bull should be focusing on is the product mix because at this point it’s the only one raising a lot of question marks. At the same time Red Bull could also benefit from this adverse wave since it is setting it more as a distinctive product on every level. After all Red Bull is targeting risk takers and today Red Bull is embodying this image in its marketing strategy. Red Bull has been dominating the market for the past twenty years.

Today, Red bull is facing a fierce competition and it should adjust accordingly. Red Bull consumers are loyal purchasers. They consume Red Bull for its high-energy kick before a class, before a work?out, before performing in a sporting event or anytime they need to get an extra boost to perform at top level. Ultimately, Red Bull cannot only rely on the loyalty of its consumers only but it should also push its brand further to ensure it conserves the growing market share. In order to do this Red Bull must consider the following: • Product Development: Red Bull can consider the introduction of energy bars.

Due to mixed reviews about the taste of its drink, Red Bull can consider the development of energy bars that offer the same benefits of the drink. It will remain in the same “niche” of energy products and it will not need to shift for a different market segment thus lowering the cost of research and advertising. • Market Development: Red Bull was not welcomed with open arms in few countries, such as France, Denmark and Norway. Working on infiltrating these markets would increase the market share of Red Bull worldwide.

Whether more negotiations are needed or altering the composition of the drink Red Bull should strive to penetrate those markets before its competitors. • Diversification: Red Bull can expand its current product line to target the health conscious consumers in its existing markets and as well in new markets. Nowadays, consumers are shifting toward a healthier life style and Red Bull has been facing some negative press related to its ingredients and the adverse affects that can lead to serious health problems and sometimes to death.

Red Bull should strive to eliminate this tainted reputation by focusing on new “healthy” products: vitaminized water, energy yogurt… • Red Bull is not a patented drink product and this increases the chances of Red Bull being copied by competitors eventually after small changes to its concentration in caffeine making it more appealing to consumers who believe that the high levels of caffeine and sugars are creating negative effects on their heart rate and blood pressure. Red Bull has the opportunity to maintain its position and grow by using continuously the untraditional marketing tactics and maybe work on sponsoring more worldwide events that create more exposure such as the Olympics or the World cup …