Energy Drink and Red Bull Essay Sample free essay sample

Red Bull is the leader of the energy drink market. Red Bull is an Austrian produced energy drink. It competes in a really narrow niche of the carbonated soft drink market. The find of Red Bull was made during a concern trip to Hong Kong in the 1980’s by an Austrian enterpriser. Dietrich Mateschitz. Its chief focal point was Europe. as this portion of the universe was yet to be established within the energy drinks market. Though. the unusual high measures of caffeine in the ingredients. was traveling to turn out a hard undertaking to make. Red Bull is a non – alky energy drink. This merchandise falls under the class of soft drinks which can be divided into sub-segments of which one of these is energy and athleticss drinks. Since 1996 the market of soft drinks has grown by 5 % and by 1997 it reached it a entire sum of ?6. 89bn. which is an equivalent of 10bn liters. Red Bull is the leader of the energy drink market. This company performs an one-year turnover of more than 3 billion Euros. As we will see in this study. polemics. Nonconformist. mastermind selling are. among others. the ingredients that made Red Bull the star merchandise of Energy Drink Segment in the universe. For more than 20 old ages. Red Bull has managed to set up itself brightly in the universe. The ground for taking Red Bull? Most of the people have one twenty-four hours see or heard about the trade name Red Bull. Red Bull is an energy drink that comes from the version of the Thai energy drink â€Å"Krating Daeng† . which means â€Å"Red Bull† . The ground of pick consequences in a cultural factor. In fact Red Bull is a merchandise that is aiming immature clients. It means that. pupils are the most concerned by Red Bull so this is a merchandise that can impact any of us. Besides it is a â€Å"trendy product† in others words a stylish merchandise: nowadays everyone has already tasted a Red Bull. In this study. we will analyze Red Bull and the environment in which the company evolves. its mark and positioning trough selling tools. It will enable us to understand how Red Bull managed to make its leader place. Selling Audited accountMerchandise portfolioRed bull has within its portfolio. 4 successful merchandises ; ruddy bull energy drink. ruddy bull sugar free. ruddy bull Cola and ruddy bull shootings. To see how each merchandise lies within its market portion. the BCG matrix theoretical account can be used. This type of analysis provides a utile penetration into likely chances and jobs associated with a peculiar merchandise. ( Brassington A ; Pettitt. 2005. pg 400 ) HIGH MEDIUM Question Mark Red bull ColaStarRed bull energy drinkRed bull sugar free Cash CowDogRed bull shootingsLow The BCG matrix suggests following schemes: * Promotion of Red Bull Cola should be carried out globally to distribute awareness * Product Development by presenting taurine free ruddy bull and other spirits Gross saless calculating Goals Recorded are for the undermentioned twelvemonth ( March 2011?February 2012 ) * GrossThrough the undermentioned twelvemonth. Red Bull has set a end to increase gross by 20 % $ 6. 22 billion. By deriving clients in a new demographic. every bit good as let go ofing a revamped run. Red Bull believes this is possible. * Market Share Red Bull anticipates through the undermentioned twelvemonth to be able to increase its market portion by 10 % . raising it to 58 % of the market portion. Through assorted media channel. Red Bull has set a end to put itself farther in front from all rivals and construct an undeniable trade name trueness among a different demographic. The Macroenvironment * Political and legalRed Bull was introduced into the market as a new non-alcoholic drink with a new construct. viz. energy drink. At first this proved to be really hard as Health Organisations was leery that Red Bull could be a starter drug. Their ideas and intuitions even increased after rumor that Red Bull contains ingredients like bull’s saddle sores. However. the fact that Red Bull has been used in Australia for 9 old ages and in Asia even for 30 old ages without any ailments led to increased assurance. A survey carried out by an independent institute ( ISME ) in 1998 proved that Red Bull has stimulating effects like caffeine. but does non take to dependence. Red Bull still needs to be approved by each state where it shall be sold. which is a really clip consuming and hence really expensive. Some states still have uncertainties about Red Bull like e. g. Hungary where Red Bull is out. Initially this was besides the job in the UK. where Red Bull was merely allowed to be sol d after its harmlessness had sufficiently be proven. * Economic Red Bull faces small exposure to economic rhythms as it is a particular drink. functioning a niche market. Their mark markets are jocks. pupils and difficult working people. who need a lift. a encouragement of energy. Through their well positioned advertizements their gross revenues are increasing. * Social Unlike the 1980’s. where cipher wanted to seek it. people are now much more unfastened to new experiences. There is more of a assurance to seek it. because any wellness concerns were cleared by administrations like the ISME. The clients are male and females. who are really clean or work really hard. At the minute Red Bull has a really voguish image and gets sold in a batch of bars and nines. where it is frequently assorted with Vodka which is besides known as white bull. * TechnologicalRed Bull gets entirely produced in Austria from where it is exported to 28 states. There are two grounds why it does non acquire produced in any other state. This guaranties that it has the same in gustatory sensation. Red Bull wants to guarantee that it tastes the same all over the universe. Red Bull is usually produced in 250ml tins. but glass bottles are an alternate in the instance that they run out of tins -which has happened before. * Environment The can is made of reclaimable aluminum and hence environmentally friendly. Glass bottles can besides be recycled and hence do non harm the environment either. This might give the company a competitory advantage when ordinances become stricter in the remainder of the universe. RivalsEnergy Drinks have become really celebrated in the last decennary. During the last 10 old ages. there were 100s of them being established around the universe. All of these are successfully marketed as energy disbursement and the drinks are a really suited sociable with intoxicant. In the UK. the development in the energy drink market has merely grown somewhat compared to that of America. There are merely really few serious rivals of Red Bull in the UK. So far the serious direct rivals of Red Bull in the UK are the undermentioned: Purdey’s Gold High Energy Ingredients: Vitamins. Sugars. Herbs and Carbohydrate Design: Aureate 325ml bottle Monetary value: ? 1. 03 Family: Glucose and High Energy Drinks hypertext transfer protocol: //www. drawert. com/red_bull_5. php AnilIngredients: Wolberry. Guarana and Schizandra Design: Blue 375ml bottle Monetary value: ? 0. 79 Family: Glucose and High Energy Drinks Marketing: Natural Quality Refreshment ; Sampling and Press Ads Lipovitan B3 1997 launched in the UK. in Japan since 1962Ingredients: Taurin and Caffeine ( smaller sums ) Design: Aureate 250ml can Price: ? 0. 99 Family: High Energy Drinks Marketing: High Quality. delightful and healthy. extended Television Ads. Press Ads. Outdoor. Sampling Lucozade Energy Ingredients: Caffeine. Glucose ( aimaimitate Red Bull ) Design: 350ml can / 300ml bottle in Lucozade design Monetary value: ? 0. 49 Family: Glucose and High Energy Drinks Marketing: Suiting the Lucozade Family Indirect rivals are those from the glucose energy drink household. The largest distributer of those drinks in England is Lucozade with a immense merchandise scope because it offers many different spirits. Lucozade owns about 90 % of the market portion of athleticss drinks which likely is the consequence of high media disbursement and the tradition of the company ( 1927 ) . It is a household trade name name that has past down from coevalss. Swot analysis* StrengthsIts market leading – globally within the energy drinks market. Marketing attempt – a batch of publicities and its good targeted runs and sponsorships. Its trade name individuality – it is strong. fresh and stylish. * FailingsIts monetary values are good above the norm for this drinks market. Its deficiency of invention – there are a batch of rivals in the market who have their ain alone merchandising point which leaves Red Bull behind. Its failure to conceal the formula – which is printed on the side of the can. * Opportunities To widen its merchandise line farther – to assist retain the market portion. To travel hard on the procedure of advertisement and publicities.The client acknowledgment through sponsorship or athleticss events. * MenacesHealth concerns – the authorities is fastening up on its regulations for a high caffeine content. Its customer’s consciousness of wellness and good being – people may turn to an alternate drinks as they may look healthier. Organic merchandises are going more popular so may steal some of Red Bulls market portion. Cleavage Red Bull looked at its clients life styles. non merely to cover the demographics of its merchandise but to acquire a existent sense of the its clients attitudes. beliefs and aspirations. Plummer ( 1974 ) was an early advocate of lifestyle cleavage. interrupting it down into four chief classs: activities. involvements. sentiments and demographics ( Brassington A ; Pettitt. 2005. pg 117 ) . Red Bull used this as portion of their cleavage procedure. This is how it sees its mark client. * Demographic This is a large age group of 15 – 60. Though it specifically thought that Red Bull was originally aimed its merchandise at pupils. it was besides produced to appeal to athleticss work forces and adult female and utmost athleticss individual. Our jocks are acquiring younger and as a state there is besides the publicity of a healthier life style. * Psychographic – sentiments Red Bull needed to appeal to clients who indulged in content. These people are besides really witting of their image. So instead than buy an mean energy drink. regardless of monetary value the demand was to hold the best energy drink and most widely known. This would besides take to influential selling. These types of people love to be influenced and are non able to command it. * Activities – behavior This type of individual has the demand to pass a batch of money. Money may or non be an issue but for this type of individual. money is non an issue instead than a demand. There is besides the demand to suit in a nine or society and it is extremely stylish to be in a tendency. * Interests This is aim at people with high physical active life styles. Red Bull is the right drink to maintain them high in energy. We besides look at people who enjoy traveling out to dine a batch. It is particularly in the younger market to now imbibe ruddy bull or have a vodka and ruddy bull mix with your nutrient. normally known as white bull. When we look at the above analysis. it is clear to see this revolves around the demands. wants and demands. There are three basic needs that Red Bull satisfies. physical. societal and single. It is really interesting to see that Red Bull is non merely a drink but is a incentive. We can see how from Maslow ( 1954 ) hierarchy of demands theory that until the underside theory has been fulfilled we are unable to actuate ourselves to the following. Physiological demands are basic feelings such as hungriness and thirst that can be powerful driving forces. ( Brassington A ; Pettitt. 2005. pg 79 ) Though Red Bull has distributed its drinks in over 20 states it would non be really utile to curtail the mark market to the geographic countries every bit good as the psychographic cleavage for the targeted consumer that’s because for a merchandise like Red Bull it would be to far to contract as it cuts across life styles. So the best solution would be to put the mark market as a behavioral cleavage ( Drawert 2011 ) . Viral SellingIn recent old ages. the viral selling scheme is widely practiced by companies because it meets the cardinal desire of sellers in footings of bombilation and distributing the word around in a really speedy and cheap manner. Now many companies use a batch of societal networking sites as portion of their viral selling scheme. The success of a viral selling run is based on the rules that people want to be amusing. cool. rich and loved. Red Bull gives people the chance to believe or accomplish in one of these rules by them come ining an utmost athleticss competition. This so develops a really amusing viral picture which is used in the viral selling adverts and is aimed for the people to go through around. so there is the uninterrupted success of advancing ruddy bull. When Red Bull foremost hit the UK market it is believed that its stigmatization scheme was revolutionised by utilizing a tactic called anti-brand. This scheme is used because the competition Red Bull faced was from Lucozade. Not merely had this been the biggest energy drink in the UK for many old ages. it was besides used by all ages as a medical specialty type merchandise in the assistance to comfort colds and grippe. Red bull relied on unusual methods of marketing such as bombilation selling or word of oral cavity. To make this with an instant consequence. it needs was to make a trade name image that is associated with the young person as there was no possibility of winning over the older coevalss who had a strong belief in the merchandise they had ever been associated with. Lucozade. It associates itself with the youth civilization with escapade related athleticss such as mountain biking. snow embarkation. motor athleticss and dance music. To guarantee that viral selling worked good. Red Bull has ensured that its trade name is seeable on the street by the followers: * Its oculus catching logo was designed to advance Red Bull as a vernal energy drink. * DJs are given free Red Bull and asked to go forth their empty tins on hot spots such as voguish bars. saloons and nines. * Peoples on the street who are spotted as being in demand of energy are frequently stopped and given a free can of Red Bull. * The usage of autos and trucks as a show. They are painted ruddy and Ag with a elephantine Red Bull can on top of the vehicle. Who is likely to lose that. One of its most effectual communicating schemes is how Red Bull uses above-the-line advertisement as a tactic to construct up its image and consciousness. It introduced the run called ‘Red Bull gives you wings’ to reflect the trade names personality of being capturing. witty and unpredictable. Marketing MixRed Bull has a great image and is the market leader. Therefore is has two aims: Keeping the lead and seeking to widen it by making farther consumer demands for Red Bull * ProductThe merchandise is all right as it is. over 60 % of the under 30 twelvemonth old Germans recognise the trade name unassisted. Peoples are happy with the merchandise. Merely the image can be strengthened. * Monetary valueBesides the monetary value should remain the same. a high monetary value is inadmissible to maintain the image of a high quality merchandise. Lone topographic point and publicity can add farther value to the image. * Topographic pointIn 1998 merely 20 % of Red Bull’s gross revenues were distributed through retail. As Red Bull is a public-service corporation drink. consumers merely buy it on occasion. Therefore they do non needfully purchase the drink in supermarkets. but instead at gasoline Stationss or package store retail merchants. As Red Bull has already reached market leading in the remainder of Europe with lifting gross revenues figures. the company will hold a influence on the jobbers merchandise displaying policy ( PDP ) . In the close hereafter Red Bull will go a more constituted and demanded trade name. * Promotion Red Bull has already increased its budget ; the end is up to 50 % of grosss. A high per centum of the budget is spent on patronizing. In the hereafter Red Bull should widen the publicity and ad-activities in order to keep their leader place ; there shall be more Red Bull stands at ski huts giving a manner Red Bull mix drinks. which are a mixture of Red Bull and bubbly. DecisionHow far can Red bull continue to transport this merchandise? . Even though the company does bring forth other merchandises. we can see from the BCG Matrix theoretical account that its star merchandise is the original Energy drink. The star promotes a successful leading merchandise but for how long? There is besides a concern of the mark market coevals ‘y’ . For how long can a tendency develop for and how long will this young person go on to be trade name loyal particularly with so much unemployment. which is can they afford to be loyal? I believe Red Bulls biggest frights are at that place rivals. Giants such as Pepsis and coke do non hold to travel to the same advertisement lengths as Red Bull. They are so good known globally and they both have immense merchandise portfolios compared to Red Bull. These merchandises could besides go major factors in the energy imbibe class excessively. Mateschitz. T he laminitis of Red Bull believes that he created this market and if its merchandise is appreciated. that the lone merchandise in this class is the original merchandise. Who wants to purchase a Rolex which is made in Taiwan. If Red Bull wants to go on with its market place so the company do truly necessitate to see widening the Red Bull trade name or is will Red Bull easy fade from the energy drinks market. The one chance that Red Bull has is that even in tough economic times. every twelvemonth the company net incomes still continue to turn. May be Red Bull need to reconsider its selling section because at the minute people merely associate Red Bull with a peculiar activity or demand at a peculiar clip of the twenty-four hours. The demand possibly to turn it around as a more soci ally used drink and merely non for those who lack energy. Bibliography Brassington. F. . Pettitt. S. ( 2005 ) Necessities of Marketing. Harlow: Pearson Education Limited Drawert. ( 2011 ) . The Marketing Strategy of Redbull [ Online ] . Available at lt ; hypertext transfer protocol: //www. drawert. com/red_bull_1. php gt ; [ Accessed 28th May 2011 ] Scribd. ( 2011 ) . Red Bulls Marketing Mix [ Online ] . Available at lt ; hypertext transfer protocol: //www. scribd. com/doc/19489027/Red-Bulls-Marketing-Mix gt ; [ Accessed 22nd May 2011 ] Redbull. ( 2011 ) . Merchandises and Company [ Online ] . Available at lt ; hypertext transfer protocol: //www. redbull. co. uk/cs/Satellite/en_UK/red-bull-energy-drink/001243026254412 gt ; [ Accessed 10th May 2011 ] Yaqoob. M. ( 2011 ) Red Bull Marketing Strategy. The Red Carpet Broadcast [ Online ] . Available at lt ; hypertext transfer protocol: //www. trcb. com/business/marketing/redbull-marketing-strategy-7 375. htm gt ; [ Accessed 20thMay 2011 ]