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Case Report on Red Bull: Marketing Analysis

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1. Background

Executive summary:

Red Bull is a version of a Tai drink called Krating Daeng and now is a well-known energy drink market leader. The product has developed a unified advertising communication strategy to extend its target onlookers i.e. youth around the world. Value, product, employment, and elevation are the major parameters of this product’s marketing. Red Bull gives assurance to increase performance throughout the times of anxiety or tension. It will rise attentiveness and recover response speed and stimulate metabolic rate. This product refreshes the body and improves concentration levels.

Strengths: Market management, advertising struggles, durable, new and stylish product uniqueness, calm, flexible promotion throughout the world, and product selection method are the main strengths of this product.

Marketing Strategy: Red Bull is advertised via promotion, events, athletic club, proprietorships, and stars support. The catch line “Red Bull gives you wings” is the main purpose which astonished and fascinated the clients to purchase the beverage. Also with the help of star’s support this product gains publicity.

Competition: Pepsi-Cola and Coca-Cola are very active in the marketplace. Coca-Cola advertises two products under the Rock star and Full Throttle. 2 another competitive products are named as Monster and Lost that come under the Hansen Natural Corporation. Coca-Cola and Pepsi-Cola also gaining a reputation via their delivery network in North America. Their product accessibility in superstores, selling apparatuses and at universities where high-class delivery agreements are in effect proposal vital potential to gain market segment.

Challenges: Red Bull has gained unbelievable achievement, but now this product is facing many challenges. First one is market share has shortened over the last few years. Also, there are health worries due to the high amount of caffeine. Disappointment in the new facility or market classification. Control of the Red Bull is vulnerable by the coca cola into the business. This product is dropping the tight attention among the existing products and destroying the impression of the existing products.

Recommendations: Red Bull should follow some latest advertisement i.e. social media advertising that works superior for the product and will be very useful for them in future. Red Bull should focus on new methods such as free drinks to the students occasionally.

Case Introduction:

Red Bull is an Austrian company which was established in 1987 and marketed by Red Bull GmbH. It has the highest market share among all energy drinks in the world. Red Bull is the first product of its kind which gives the energy and boosts the metabolism. It revitalizes the body and mind. The key ingredients in 250ml can of Red Bull are taurine 1000mg, glucuronolactone 600 mg and caffeine 80 mg. It was introduced to the US in 1997 and to Canada in 2004. Red Bull should not be confused with other products like Gatorade as later only rehydrate the body while exertion during sports participation. In Canada its market share is estimated to 50 percent with $22 million worth of retail sales. Coca-Cola and Pepsi are the biggest competitors of Red Bull energy drink market. Red Bull uses buzz marketing strategies for advertising. Their target market comprises of young urban males from ages 16 to 29. Red Bull market its product using the theme and slogan “Red Bull gives you wings.”

2. Case Study Model

Problem Definition:

Research openly says that Red Bull comprises an extreme quantity of substances, certain journals, even compare it to extremely addictive medicines. Also Red Bull is following the traditional ways for their advertisement. Other brands are taking advantage and gaining popularity. A Measurable portion of the research has also identified that twenty five out of thirty members have purchased Red Bull. Remaining members stated that they did not like the taste of the product. Also, according to them it is harmful for health.

Situational Analysis:

The situational analysis of Red Bull is grounded on the interior and exterior environments.

  • The strengths of Red Bull are marketplace headship position, advertising struggles, their familiar taste and the group of the stylish and popular packaging.
  • The weaknesses are the cost and the shortage of the method patent as well as fewer range of the goods.
  • It has opportunities for increasing the target marketplaces as well as product lines allowance. Red Bull faces certain threats which relate to the health concerns of the clients. Research openly says that Red Bull comprises an extreme quantity of substances, certain journals, even compare it to extremely addictive medicines. The objective is to maximize profits, improve the market segment and being the brand idol of the intense actions in target viewer’s opinion.
  • The threats include the major competition from world leaders like Coca Cola and PepsiCo and as the people are getting more fitness conscious day by day, they have to think something different because of the large amount of sugar and other additives in their drinks.

Generation of Alternatives:

There are multiple ways that Red Bull can use to overcome their marketing issue.

The alternatives include Growing the product availability, Global extension, Expansion of product line.

  • Growing the product availability.

Advantage: Expansion in the market share.

Increase productivity on account of market division.

Disadvantage: Costly

May not be successful in all section

  • Global Extension

Advantage: Increment in market share.

Grow the brand awareness.

Disadvantage: Difference in government laws.

Cultural differences

  • Expansion of product line.

Advantage: Compete with rivals.

Create niche markets.

Disadvantage: Introduction of new products may affect the sale of existing ones.

Expensive.

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Marketing Objectives:

  • Red Bull focus on a powerful content core by connecting their customers to themes like extreme sports, music, craftsmanship, move, nightlife and a ton more.
  • Red Bull puts a significant sum in customary broad communications channels and content marketing to achieve a higher customer market.
  • Red Bull focus on making a brand that exemplifies a distinct lifestyle and audience. Their advertising objective is to make a brand inclination for Red Bull inside Generation Y’s young dynamic guys.
  • Red Bull wanted to create a massive brand awareness by providing excellent quality products with an easier reach of its products to the customers.

Marketing Communication Objectives:

  • As Red Bull only uses buzz marketing strategy so now it should increase awareness through advertising in mainstream media to attract new audiences.
  • Negative image of the brand should be corrected and need to be made a positive brand image.
  • Increase the presence in the energy drink market and should be used to create brand loyalty.
  • Increase the sales of Red Bull.

Assumption:

We assume that the available marketing communication plan budget will be $1.7 million, which mostly will be used to create awareness among new and young audience and also maintain and increase the market share.

3. Marketing Communication Plan Model

Market Analysis:

The Red Bull Market analysis is Manifold. Primarily for apportioning the advertising costs for the firm while using the market research to learn about market rivals and their grip on the Market .The information allows the Organization to look into options, to penetrate new markets. Red Bull primarily targets youthful and energetic members of the society .They promote at gaming conventions focusing on the extraordinary game members. Additionally, to focus their marketing on the enthusiastic onlookers Red Bull’s market position depicts the picture of being youthful, reliable, outrageous game sports necessities. They do this by promoting and supporting numerous Games and rivalries and target more similar youthful gatherings.

Red Bull showcasing destinations are to expand benefit, making an all the more universally known item and brand name to gatherings and to build deals.

Red Bull is presently boosting individuals around the world, marketing more than nations around the world. The Red Bull consumers are divided into two segments- Students who love to party and Workers. Every one of them utilize the caffeinated beverage in their own way. The primary focus for Red Bull is in maintaining the Top Brand status in the caffeinated drinks market. In order to achieve its Objectives, the company showcases its product at every available opportunity to its targeted market. The promotion activity is achieved by using the three main methods- Advertising, Sampling and Supporting.

Red Bull Marketing campaign isn’t just to sell the product, but to make a statement that it is in fact selling a way of life. Seizing on the belief that individuals are eager to be part of Red Bull’s amazing behavior towards life.

It is due to this belief and promotion that Red Bull maintains a significant portion of the Overall Energy Drinks Market. Considering that the advertising component in the energy drinks markets is as high as 70%, Red Bull continues to hold its own. This is not without Challenges. In order to maintain the lead and continue growth in Asian countries and Western Europe, the company will be producing new products and showcase unique target gathering.

External Influence:

Red Bull PESTEL (Political, Economic, Social, Technological, Environmental and Legal elements) investigation helps understand the influence on the product.

  • The political components includes variables such as administration issues. The company itself should work exclusively to increase the product quality with introspecting the employee feedback and the surveys.
  • The economic condition defines the Red Bull organization’s working and the entire brand. Red Bull as a brand should work on going on the international market and target those countries who are progressively growing so that Red Bull have a growth in their economy when they move their business in those countries. Moreover, they will also get a first mover advantage as well.
  • The social components include the demographics part such as the locality, the population, the age group. For example, individuals in Florida are progressively inclined to caffeinated drinks because of the climate, the work culture; this culture helps Red Bull to grow their business.
  • R & D influences on Red Bull Market positioning and alignment. Further innovations has been propelled by web based technologies and recent business research methods. This has created new avenues for the company to improvise on their marketing strategies.
  • The evolving environmental legalities have created both advantages and disadvantages for the businesses and Red Bull is trying to position themselves in a place that is applicable to the changes in worldwide environmental situations.
  • Food and beverage industries are constantly controlled by the market’s legal laws. Red Bull and its competitors are likewise affected by the prevailing legal conditions. Some market tend to be more beneficial for industries like Red Bull while some might create conditional opportunities.

Competitor Analysis:

  • Monster Drink

The main marketing strategy goes on to build the loyal customer network which includes energy, excitement and emotional connection so that a customer can relate easily to the brand. The company does not do much of advertising because they are more of a performing brand rather than just the speaking brand. The company makes sure that a consumer experience a good life long memory with brand and in return they do a positive word of mouth for the brand.

  • Product: Monster Drink

Advantage: Emerging brand.

Big Market Share

Loyalty of customers towards brand.

Keeping up with the latest trends in the market

  • Price: Monster Drink – 473ml can for the price of $3.17 CAD whereas Red Bull costs $3.47 CAD for 355ml
  • Distribution: Monster Beverage Corporation doesn’t actually manufacture and distribute its products rather it outsources them which helps in lower transportation and manufacturing costs but in Canada it does pack some of the products so that the beverages are produced in the market where it is going to get sold.
  • IMC: As the tagline of Monster goes with “unleash the beast” which simply means that this drink has got something in it which gives you a boost while you drink it and provides you with the confidence of achieving something which seems impossible to you. Monster energy mainly endorses things which are fast and includes fun like racing teams.
  • Image: There have been a lot of controversy regarding energy drinks because there have been reports that the energy drinks are addictive in nature and drinking it for the long term has negative hazards. Doctors and scientists have also claimed that when caffeine and alcohol are put their can create negative consequences. So all this has created a not so good image of energy drinks in front of consumers and eventually it has also degraded the monster drink.

Brand Analysis:

Energy Drink industry used to be dominated by Red Bull. Dietrich Mateschitz and Chaleo Yoovidhya in 1987 established the company Red Bull GmbH. The brand’s logo itself attracts a lot of customers in the young generation, two bulls facing each other neck’s down ready to fight looks kind of cool and itself provides the energy drink an X- factor. The brand has also managed to identify their target market as well which makes it easy for them to understand the customer need and desire of the product. The brand first introduced its drink in Thailand, Red Bull was inspired by the then existing brand called Krating Daeng.

Target Market Profile :

  • Demographic Segmentation
  • Age Factor: Attracts customer from 16 to 40 years old

Children (aged below 16) usually prefer Red bull soda rather than Red Bull energy drink

Adults ( over 30) prefer zero calorie and special edition

  • Gender: Men has a major contribution than women

More men prefer Red bull than women

  • Psychographic Segmentation

Red Bull has a brand image of rich quality so businessmen, executives, students have a great preference for it. It’s a drink people consume it daily to energize them. Loyalty is medium which shows not everybody consume it on a regular basis but also try to switch between brands.

  • Geographic Segmentation

Red bull till today has served over 20 countries and irrespective of people income, they do prefer consuming it. Differentiating between urban and rural areas, for example in India, urban cities tend to consume it more as it is considered has a normal soda drink in some rural areas in India so education plays a major role too.

Positioning Strategy :

Red Bull has a positioning strategy of high price, high quality which shows they maintain the quality of the product but also maintain the brand image by putting good price. They have an upper hand in the market as they sponsor many events mostly are of racing events. Also it’s a premium brand so they keep their customer satisfaction to high level by providing products readily available and not only just by convenience store but also by providing vending machines at different places and also customer can acquire it at different events such as tennis matches, horse ride racing, car racing etc.

IMC Strategy:

Red Bull’s slogan “It gives you wings” is their main strategy as they link every marketing event to this slogan. This slogan means “you can do the impossible” so to prove that they sponsor sports or events which require a lot of hard work and intensity. By sponsoring these events they give their customer message about how can they achieve impossible by having red bull as their main drink. They also sponsor some non-sports events such as festivals from which they show creativity and also they want to enter the market other than sports which shows a non-sport person can also prefer red bull drinks over other. So they have linked every marketing strategy with each other.

IMC Execution:

From the analysis that we have conducted, it is evident that Red Bull have young generation in their target market. Therefore, the IMC strategy that Red Bull is using is helping them immensely.

Moreover, Red Bull also uses Social Media sites, TV advertisements, Radio to promote and advertise their products. Furthermore, Red Bull sponsors sports events such as Rugby Union, Snowboarding, Air Racing, Soccer and Motocross.Red Bull Soccer team- New York Red Bulls (USA), Red Bull Salzburg (Austria).

Red Bull F1 Team- Aston Martin Red Bull Racing.

5. References

  1. Red Bull. (2019, May 30). Retrieved from https://en.wikipedia.org/wiki/Red_Bull
  2. Red Bull GmbH. (2019, May 22) Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Gmb
  3. Red Bull Gives You Wings. (n.d.). Retrieved from https://www.redbull.com/ca-en/
  4. Joe Watts in Lagos @JoeWatts_. (2018, August 30). Shops to be banned from selling caffeine-packed energy drinks to teenagers, under new government plans. Retrieved from https://www.independent.co.uk/news/health/energy-drinks-ban-caffeine-under-16-government-theresa-may-a8513651.html
  5. Warren. (2014, August 13). Toronto Public Health urges ban on serving energy drinks and alcohol on city property. Retrieved from https://www.thestar.com/news/gta/2014/08/13/board_of_health_urges_ban_on_serving_energy_drinks_and_alcohol_on_city_property.html
  6. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positionin.html
  7. New York Red Bulls. (2019, June 02). Retrieved from https://en.wikipedia.org/wiki/New_York_Red_Bulls
  8. FC Red Bull Salzburg. (2019, May 25). Retrieved from https://en.wikipedia.org/wiki/FC_Red_Bull_Salzburg
  9. Red Bull Racing. (2019, June 04). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Racing
  10. Red Bull. (2019, May 30). Retrieved from https://en.wikipedia.org/wiki/Red_Bull
  11. Red Bull GmbH. (2019, May 22). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_GmbH
  12. Anderson, G. (2012, November 19). Red bull market analysis. Retrieved from https://prezi.com/l2_s84biuxbi/red-bull-market-analysis/
  13. Red Bull Air Race World Championship. (2019, June 03). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_Air_Race_World_Championship
  14. Red Bull X-Fighters. (2018, December 21). Retrieved from https://en.wikipedia.org/wiki/Red_Bull_X-Fighters
  15. https://manansilawat15.wordpress.com/2013/10/05/segmenting-targeting-and-positioning/
  16. Red Bull Gives You Wings. (n.d.). Retrieved from https://www.redbull.com/ca-en/
  17. Joe Watts in Lagos @JoeWatts_. (2018, August 30). Shops to be banned from selling caffeine-packed energy drinks to teenagers, under new government plans. Retrieved from https://www.independent.co.uk/news/health/energy-drinks-ban-caffeine-under-16-govenment-theresa-may-a8513651.html
  18. Warren. (2014, August 13). Toronto Public Health urges ban on serving energy drinks and alcohol on city property. Retrieved from https://www.thestar.com/news/gta/2014/08/13/board_of_health_urges_ban_on_serving_energy_drinks_and_alcohol_on_city_property.html
  19. Red Bull Segmentation, Targeting and Positioning – Research-Methodology. (2016, June 22). Retrieved from https://research-methodology.net/red-bull-segmentation-targeting-positionin.html

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Case Report on Red Bull: Marketing Analysis. (2022, September 27). Edubirdie. Retrieved January 29, 2023, from https://edubirdie.com/examples/case-report-on-red-bull-marketing-analysis/
“Case Report on Red Bull: Marketing Analysis.” Edubirdie, 27 Sept. 2022, edubirdie.com/examples/case-report-on-red-bull-marketing-analysis/
Case Report on Red Bull: Marketing Analysis. [online]. Available at: <https://edubirdie.com/examples/case-report-on-red-bull-marketing-analysis/> [Accessed 29 Jan. 2023].
Case Report on Red Bull: Marketing Analysis [Internet]. Edubirdie. 2022 Sept 27 [cited 2023 Jan 29]. Available from: https://edubirdie.com/examples/case-report-on-red-bull-marketing-analysis/
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