You are asked to address the following questions:
1. Who are the principal target segments for Red Bull and how are they positioned towards these target segments? 2. Analyse the Red Bull brand using any frameworks you judge appropriate. 3. Comment upon Red Bull’s pricing approach
4. Evaluate Red Bull’s distribution channel strategy
5. Would you describe Red Bull as a national, a European or a global brand – give reasons? 6, What marketing strategy would you recommend that Red Bull should adopt over the next 5 years?
Who are the principal target segments for Red Bull and how are they positioned towards these target segments?
Red Bull has an aggressive international marketing campaign that targets young males. These customers are often similar in their tastes for extreme sports, either as spectators or participators. Its numerous sponsored activities range from extreme sports like mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, wakeboarding, cliff-diving, surfing, skating, freestyle motocross, rally, Formula 1 racing, and breakdancing to art shows, music, and video games. It is this range of activities that enable the brand to be relevant to a huge collective of audiences across the globe.
These target consumers use Red Bull to replenish energy levels. The high caffeine content of the energy drink is the key influence behind the target segments for Red Bull. The ‘Anti-establishment, premium end, positioning is aimed at capturing brand loyalty from young, Generation Y males, or students aged 16+ who feel the need to re-energise. The need for caffeine is associated with being active, whether physically: nightclubbing, playing sports or mentally: working long hours, driving or studying.
Red Bull is positioned towards two major market segments at present:
The Primary Market
Red Bull is marketed at students, via student ‘Brand Managers’ in on-campus buzz marketing promotions, at drivers in petrol stations, as a premium priced mixer in nightclubs and at gyms. Red Bull’s demographic is moving from the Generation Y population to include a more mature market demographic.
The Secondary Market
More recently, people up to the age of 44 are feeling a ‘maintained sense of time pressure’ (Mintel 2011) and are drinking Red Bull to navigate the challenges of modern living. Red Bull has aligned its marketing approach to appeal to a wider consumer base than the primary ‘Gen Y’ market segment, with alignment to more traditional, mainstream sports such as Formula One motor racing, motorcross and World Rally Championship (WRC) car racing.
Red Bull Media
The Red Bull Media House operates an online “consumer platform”. The content of the platform, TV Station, global magazine and mobile operator service is all positioned at the ‘active lifestyle’ market. The exhilarating content: documentaries, films and even music, is a key cornerstone to the brand’s positioning to its target segments. Red Bull positions itself as an aspirational lifestyle brand: athletic, challenge-driven and, to the Gen Y market, youth culture, spirited and dangerous. Red Bull media programming also pursues potential business partners who may have similar target audiences.
2. Analyse the Red Bull brand using any frameworks you judge appropriate.
Red Bull has managed to successfully position its brand as the leader in a market that did not exist before (Blue Ocean strategy – we need a value innovation curve). By establishing the brand itself as the “anti-brand” and building a strong relationship with an audience of consumers crowd that did not want to be told what to do, Red Bull has developed a relationship with its consumers by listened to this audience helping them to shape their personality and fulfill their interests (Self concept attachment)., This gave the Red Bull brand giving the brand a high level of loyalty and helped it to and leveraging its brand equity....
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