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REPORT
INTRODUCTION
Red Bull, headquartered in Fuschl am see, Austria,
manufactures energy drinks which are described as
“functional beverages providing various benefits, especially in
times of increased performance” (Red Bull, 2013). The
product claims to improve concentration, alertness and most
importantly reduces the feeling of tiredness and fatigue. As of
today, over 35 billion cans of Red Bull have been sold in 165 countries
throughout the world
TARGETING
As a marketing strategy is defined as;; ‘The selection of potential customers
to whom a business wishes to sell products or services. The targeting
strategy involves segmenting the market, choosing which segments of the
market are appropriate, and determining the products that will be offered in
each segment. A business offering multiple products can determine if the
various segments should receive one generic product (such as in mass
marketing), or if each segment should receive a customized product (multi-
segment), based upon the market's diversity, maturity, the level of
competition and the volume of sales expected.’
In a way its what comes before positioning, for example, think of the class
clown to the jock or the valley girl to the gothic and alternative student. Each
of these general stereo types dress a particular way, talk differently,
associate with one another differently. You can see that we experience
“targeting” from the earliest moments of our lives for later positioning
ourselves.
There are 4 ways generally to target the consumers these 4
ways are shown on top. The targeting gets broadly on the left
and narrow on the right therefore;; ‘Undifferentiated’ marketing it
is the broadest and ‘Micromarketing’ it is the narrowest targeting
strategy.
Segmentation
In order to let our company know where to target within the
market as a market strategy we should first analyze all the types
of segments there are in the
marketing strategy.
There are three types of
market segmentation
Demographic Segmentation:
In demographic segmentation, the market is divided into groups
on the basis of variables such as age, gender, income,
occupation etc;; these demographic variables are so popular with
marketers so that they are often associated with the consumer’s needs and
wants. Segmentation variables are easily measurable. Here are the
demographic variables have been used to segment markets. The companies
target audiences primarily are the bachelors, youth and the professionals Red
Bull segments its customer base by age as follows
• Age: 16 to 30 years – they account for the major share of the
customer base. Below 16 – They account for most of the sales of their
other line of products of red bull soda. Middle age and elderly – red
bull came out with zero calorie and special edition (cool breeze) for
the elderly tastes.
• Gender: They mainly target males, although females are a part of
their customer base
• Income: Red bull associated a certain luxury with their brand name
and hence caters to a segment that is ‘well off’ in terms of income.
• Occupation: Students, bartenders working professionals, sports
enthusiasts, athletes.
Psychographic Segmentation:
It is the science using psychology to better understand the
psychology of the consumers. With the changing marketing,
Red Bull continuously tries to cope up with the new trends and come up with
new flavors and offers to attract more customers.
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Psychographic segmentation buyers are divided on following ways:
• Lifestyle: Business class, working class executives, students
• Personality: ambitious, open to experience.
• Occasions: Regular, special.
• Benefits: Quality,
• User status: regular user
• Usage rate: medium
• Loyalty status: medium Loyal
• Readiness stage: intending to buy
• Attitude toward product: enthusiastic
Geographic Segmentation:
Geographic segmentation is done using the spatial location to
segment the market. In geographic segmentation there are
different schemes for the different geographical units such as
states, regions, cities. Markets are mainly divided into the rural and urban
areas. The Geographical variables have been used to segment markets in
following ways:
• Area: Red bull limits itself to semi urban and urban India as that is their
major consumer base
• City: Class-A and Class-B cities i.e. metro politician cities
• Region: Distribution of Red Bull is constant across regions in India
Socioeconomic Classification:
The people belong to the high job profile with efficient
communication knowledge can use it. The purchase potential of
this product is limited up to the B1, B2, A1 and A2.
How Red Bull created its Targeting Strategy
Red Bull used really great marketing strategies to target its
audience that would drink an energy drink for any reason. They
have worked mostly on the taste of it which for most of the
people has been a different and refreshing taste, they have also created a
campaign where they have revolution many unknown ‘extreme’ sports. Red
Bull’s been mainly targeting a segment of 18- to 34-year-old men based on
their interests being outdoors, taking risks and having fun. The brand began
sponsoring “edge sport” athletes, like base jumpers, BMX racers and
mountain bikers, as well as “e-sports,” which did not have many big brands
attached to them. This meant Red Bull pulled its audience in, rather than
pushing messages out. Even though these were niche sports, each one Red
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Bull picked had strong audiences and followers who fit its target audience
profile.
They began with a one-year shirt sponsorship for an Austrian football team
and first entered motor sports by supporting driver Gerhard Berger in 1989.
The company launched in America in 1997 and their participation in action
sports particularly motocross, skateboarding, surfing and BMX has cemented
Red Bull as the most popular energy drink in the world selling over 5 billion
cans in 2012 alone. In 2004, just 12 years ago Red Bull had bought a
Formula One team. Today, Infiniti Red Bull Racing is the leading Formula One
team having recently captured their fourth consecutive double Constructors
and Drivers Championships.
Watch almost any action or extreme sport and you are bound to come across
a Red Bull logo. They are also making themselves known in traditional sports
now owning a string of soccer teams across the globe including the New York
Red Bulls, and sponsoring professional athletes in sports such as tennis,
basketball, baseball and athletics.
Red Bull created a category for their Energy Drink as a party energy drink by
doing targeting the festival market as we researched Red Bull has hosted
more than 10 festivals every year. Red Bull had great success in hosting
these events as noticed that they have sold about 190,000 tickets and
grossed $ 84.3 million in Coachella as one of the largest, most famous, and
most profitable music festival in the United States. They have hosted many
others having similar success such as Coachella, Hangout Fest, Bonnaroo and
Mysteryland USA. Red Bull with their targeting strategy has created a knew
trend of an energy drink that is not only used for sports but also for
‘partying’ as they have positioned the drink in the cocktail market ‘giving you
wings’
Red Bull is a giant on the social media on Facebook they have reached over
40 million subscribers and YouTube over 5 million subscribers. They have
used this marketing strategy to target certain costumers, in this case we
have noticed that it sponsored all their events in the festival and sports
category. They have also created comic animated commercials that have
targeted not only the festival and sports segments but have targeted
broadest segments. They have concentrated on commercials with a slogan
that says ‘Red Bull gives you wings and they have associated any activity that
could possibly be better with an energy drink. Most activities relate on
focusing the more energetic you are the more you focus.
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We have set up a questionnaire asking
people in which occasion people use Red
Bull and most people have answered for
many of the segments Red Bull has
indeed targeted such as party, sport
and study
Differentiation
Differentiation is aimed at the broad market that involves the
creation of a product or services that is perceived throughout its
industry as unique. The company or business unit may then charge a
premium for its product. It attempts to develop products that are unique in
the industry. This is something that red bull associates itself to. They charge
a premium price for the blend and taste they offer in their drink. Red Bull has
benefited from pure marketing genius because it has created a category of
its own. Red Bull therefore has differentiated a lot within its market as it is
not really considered as a soft drink but as an Energy drink.
MARKET LEADER
The market
leader is
dominant in its
industry and has substantial
market share. A market
leader generally is the
industry leader in
establishing an innovation-
friendly organization,
developing new business
models and new products
or services. It has cutting
edge technologies and innovative business processes;; customer value
proposition must offer a superior solution to a customers’ problem. Currently
Red Bull is the largest selling energy drink in the world. Every new entrant in
this sector looks to compete with it someday.
As a conclusion it is hence the market leader in the categories of energy
drinks and we can definitely see that Red Bull has achieved their targeting
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strategy and positioned all their marketing skills very accurately. Indeed,
most people have answered to the questioned why did they choose Red Bull
as because it is easy to find and ‘it gives you wings’.
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