4.Reference Groups………………… 7
Red Bull GmbH is a global enterprise, which produces the brand Red Bull-an energy drink. An entrepreneur Dietrich Mateschitz founded the company Red Bull GmbH in 1984 after encountering the original drink called Krating Daeng (indirectly translates to Red Bull) in Thailand. The drink is an energy booster, which increases attention and concentration and also incentivizes your metabolism (Bized, 2008).
The brand enjoys worldwide annual sales of more than one billion cans and claims a 60% volume share of the world’s energy drinks (Mintel, 2005). In 2003 Red Bull in the U.K. had a sales volume of 85 million liters with an increase to 113 million liters in 2005, where the value sales were up significantly in 2004 due to the addition of the sugar-free variety, which had cemented the brand’s position as the best-selling drink in it’s category (Mintel, 2005).
Being non- alcoholic, the energy drink comes under the soft-drink category. Red Bull is perceived as a premium product with its price in the U.K. being 1.05 Pounds. This high price professes its dominance over all other energy drinks in the market due to its uniqueness and the promising effects the brand delivers. Red Bulls main competitor in England is Lucozade, which produces a variety of flavors in the energy drink segment (Drawert).
Mateschitz concentrated more on below the line marketing activities, mainly focusing on viral marketing (word of mouth) for promoting the brand (Arlidge, 2004). Red Bull sponsors events such as windsurfing, snowboarding, cliff diving, break dancing, art shows, music concerts, video games and several other sporting/social events (Redbulletin, 2008). Red Bull produces four products, first being the original Red Bull can after which a sugar-free version was released targeting mainly to women, after which the Red Bull cola was released and recently the Red Bull Energy Shots were released.
The models chosen to identify the consumers’ behavior in detail towards the marketing activities taken up by the company Red Bull are Perception, Attitudes and Reference Groups.
Initially in Thailand, factory workers and drivers primarily consumed Krating Daeng to keep them alert at late working hours. When Mateschitz established the brand Red Bull, his main target was towards young professionals and not factory workers (Bized, 2008). The use of innovative marketing activities and minor changes made to the product, made it possible for the consumer to perceive the same product as a trendsetter and a globally recognizable brand (Arlidge, 2004).
“Perception is the process by which physical sensations such as sights, sounds, and smells are selected organized and interpreted.” (Solomon,et all: p.56) .Red Bull conducted a series of activities, which include sampling and sponsoring of the product, where Red Bull modified cars were seen driven in public, handing out cans of red bull to people in need of energy such as shift workers, truck drivers, athletes et all; also the sponsoring of massive extreme sports events and competitions (Stefani.2008)(Kumar. Linguri).
The consumers’ sense of sight was initiated every time a Red Bull car was spotted. The car consisted of the colors blue and silver of the product itself and was also modified with a life-size red bull can mounted on it. This stirred an initial level of interest and enquiry for the product. The sense of touch was activated when free red bull cans were given out to the public. Rexam is one of the worlds biggest suppliers of beverage cans, earning a figure of $22 million on Red Bull can sales of $147 million. The size of the can being different, weighing 8.3 ounces (235 grams) (Bized, 2008) made the consumer...