Tuesday, February 25, 2020

Energizing Red Bull Essay Example | Topics and Well Written Essays - 2750 words

Energizing Red Bull - Essay Example This essay discusses that the â€Å"Red Bull – The Anti-Brand Brand† case showcases the strategic and global growth of energy drink, Red Bull. Discovered in Asia by Dietrich Mateschitz as a drink to boost factory productivity in 1982, the drink became a household name by 2003 with sales in more than 100 markets and a market share of 70%. Being a pioneer in energy drinks segment, Red Bull is an innovative product that tactically filled a gap in the market that only had coffee or natural juices as alternative options for energy. Red Bull, a compund mixture of taurine, caffeine and glucuronolactone, claimed to boost metabolism, improve performance, increase concentration and reaction speed, and increased endurance. Red Bull attained operational excellence by having decentralized sales and distribution channels, making sure that the product was accessible and available at all times. The brand created high barriers to entry by making sure there were â€Å"exclusive† p artnerships with strong distributors. The sales teams helped generate an aura of â€Å"exclusivity† by handpicking initial distributors and deliberate limiting of the supply. As expected in any industry, a growing market always attracts competition. In 2004, Red Bull faced intense competition from giant brands such as Coca-Cola and Pepsi who were developing their â€Å"health drinks† business and from private lables across the market. Currently, the top competition for Red Bull is from Monster, Pepsi and Suntory. It is seen from recent reports that the market share of Red Bull slipped to 40% in 2010. (Privo, 2010). The following write-up describes the marketing & communication strategies that Red Bull shouls adapt in order to rebrand its image and increase its sales to fight competition. Media Strategy Adopted by Red Bull in the case Key Customers & Customer segments The key customers for Red Bull were Generation Y-ers (18-29 year olds) who were the main consumers of à ¢â‚¬Å"extra energy† projects. Previously, these customers looked out for products (sometimes illegal) such as alchohol to provide them the extra thrill in their lives. Within the young adults customer group, Red Bull segmented them further to customize their promotional activities with respect to their needs. These segments are: Club-goers: All party-loving people who love a vibrant nightlife, like to dance and drink. These customers were the major consumers of thrilling vodka-red bull mix. Outdoors enthusiasts (Skiers, Skate-boarders): Outdoors enthusiasts such as skiers, snowboarders wanted Red bull to keep their energy levels high during their expeditions. Extreme Sports & Action games lovers: Lovers of extreme sports and action games such as racecar, bike racing and skydiving etc. also consumed Red Bull with zest. Hardcire Music fans: Music fans that regularly attend music festivals, rock concerts and other music gatherings were also users of energy drinks as Red Bull. Stu dents: Students who needed extra energy during their exams and university classes were another segment of Red Bull consumers. Product Positioning The manufacturers of Red Bull created an innovative niche for itself by positioning the product as a different, cool and rebellious product, which is available at a premium. Dietrich Mateschitz deliberately separated Red Bull from carbonated drinks (soda), juices or coffee. (Joyner, 2011). Key Messages & Brand Positioning The brand positioning and key messagers were derived from out of the product benefits and after-effects: Red Bull vitalizes body and mind. This key message became the nucleus of all promotional activities surrounding Red Bull with brand attributes as innovative, rebelling, self ironic, intelligent, nonconformist, self-confidence, mysterious, witty, charming, polarising and unpredictable. Red Bull’

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.