Why is Red Bull one of the most successful energy drinks in the world?
Your essay must explain how and why Red Bull has selected their target market, positioned their product and created a brand that supports their positioning.
By: Tegan Effting
Red bull is an energy drink; a functional beverage that claims to “give you wings!” It certainly worked for Dieter Mateschitz and Chaelo Yoovidhya, the creators of Red Bull, who have soared into the shared position number 208 on the Forbes list of richest billionaires of 2010 with individual net worths of $4.1 billion self created between the launch date in 1987 and today. So what is it that has made Red Bull one of ...view middle of the document...
As the people of the world experience increasing work demands and stress for time they seek products to help prolong the time that they are able to perform at their optimum productivity level. They look for convenience when it comes to food and nutrition but still want the assurance that what they consume on-the-go will in fact keep them going. Red Bull appears to solve the problem. Designed and marketed to drink anywhere, at any time of the day, the shot of energy and vitamins provided in a can will provide the boost they need when and wherever it’s needed. There’s even a sugar-free option for those consumers who have become more aware of health and seek fewer carbohydrates in their diets.
This assignment aims to analyse Red Bull’s strategy in selecting a target market, positioning its product and creating a brand.
How and why Red Bull selected their target market
In selecting a target market for a product such as Red Bull, the launching company is able to fulfil the specific needs of a segment of potential consumers, increasing the product’s chances of success in the market and thus the product’s profitability. The company is able to price, design and deliver the product in an appealing way for the potential customers, and pursue a marketing plan that will produce better results than one created for a general group by positioning the product in an appropriate way for the likely buyers.
Red Bull effectively grouped customers according to their needs similarities. They found that the teens and young adults (age 16 to 29 years) of urban surroundings were in need of an aid in relief of the symptoms of brain and body fatigue so that longer hours could be spent productively and more could be made out of their time. Whether these young adults were hard workers, keen late-night partiers, or physically demanding sportsmen they needed something that would allow them to push harder before feeling mental or physical strain. (Heln, 2001).
Geographically the target consumers share the similarity of living in an urban environment, with the psychographic criteria being that the consumers lead an active lifestyle. Demographically, the target consumer belongs to generation Y (A look at a key feature of Red Bull's business. n.d.), is of age 16 to 29 years (Heln, 2001) and falls in a middle to high income earning bracket with the price of Red Bull being significantly higher than the average beverage (Simpson J & B Dore, 2008). Foremost, behaviourally, the consumers all share a common ground in the benefits sought from the product: a boost of energy that would clear mental fatigue and reduce the affect of physical stress and exhaustion on the body.
The segment is distinctively recognised as trendy, young, daring and fun and is substantial in size and profitability with the majority of teens and young adults in the target age category demanding a product that would help them meet their goals while still appearing stylish and “cool” amongst their...