Purpose: to provide the chain of strategies Red Bull used to develop their brand equity and global market dominance in the energy beverage industry.
Target Market: Red Bull does not target to a specific demographic or psychographic. Its strategy is to reach to a relatively broad consumer base. The target is anyone who need energy boost to combat their mental and/or physical fatigue. Red Bull knows their consumer base mostly involves students, drivers, clubbers, business professionals and athletes.
Product: Red Bull offers a premium energy drink supplement that provides essential ingredients to rejuvenate the mind and body. Red Bull consists of energy-enhancing ingredients: caffeine, taurine, and glucuronolactone packed in a 250 millilitre can.
Price: Red Bull prices one 250 millilitre can at a premium price between $1.99 and $3.00 which makes it significantly more expensive than traditional soft drinks. Their pricing strategy is to charge at least 10 % greater than the most expensive competitor reinforce their position. Promotion: Red Bull relies on one of the most effective forms of marketing, “word-of-mouth”. Along with the word-of-mouth strategy they also do event sponsorships, sampling programs, point-of-purchase marketing, athletic endorsements, and electronic media buys.
Red Bull Mystic: When the product first lunch Red Bull created a buzz by putting empty cans in bars and night club to make the consumers believe that it was a popular product. As a result the consumers started talking about and want to try it out of curiosity.
Event Sponsorships: Event sponsorships greatly increase the recognition of the brand. Red Bull currently has ninety individual events that have been created from the ground up. Most of the events are non-mainstream sports events that are typically extreme sports. Red Bull invests in doing their own events because they control everything and strive to make the event very unique, so they can get into the media.
Athlete Endorsements: The athletes Red Bull endorses are carefully select for their individual qualities that fit with the brands personality. Red Bull would simply make the drink available to the athletes during their competition where they would sample it and then potentially become frequent users. When a particular athlete that fit with the brand would become one of their frequent users, Red Bull would then make a sponsorship deal with that athlete.
Sampling: Sampling is the most essential aspect of Red Bull’s marketing efforts. Red Bull offered samples specifically to consumers at music concerts, sport events, highway rest areas, and higher education campuses. Red Bull assembles a team of college students to go out and encourage other to sample the drink, conduct research on drinking trends, implement on-campus promotions, collect customer feedback and educate the consumers about the product.
Point-of-Purchase: Red Bull has its own miniature glass refrigerator with the brand logo on it. Red Bull also made sure that the refrigerator was place in a prominent location in the environment. Unfortunately some places do not allow Red Bull to use their own miniature refrigerator, in this case Red Bull in the existing store refrigerator.
Traditional Advertisement: Red Bull uses television ads, print, and radio advertisements. The television ads are a short animated commercial that clearly communicates the product benefits through intelligent dialogue and scenarios. The message in the commercials is “Red Bull gives you wings” and this message correlates directly to the brands positions. The commercials fitted well with the global market and reached a wide target audience because of the usages of well-known animated characters and simple universal concepts.
Place: Red Bull is sold in the global market, but there are a few countries that prohibit the sale of Red Bull because of specific ingredients and incidence in...