Executive Summary:
From conducting this report it was found that Red Bull energy drink is facing some problems, the main one of which is the negative media that it has been receiving. However both primary and secondary research shown that negative publicity does not affect buyer behaviour to a great extent.
Secondary research clearly states that Red Bull contains excessive amount of chemicals, some publications even compare it to highly addictive drugs as well as blaming the product for some deaths. Secondary data also helped us identify a growing number of competitors that Red Bull has, the number exceeds a hundred. However, surprisingly to most, secondary research reports show that the sales of the product are increasing each year rather than decreasing as could be expected.
Quantitative part of primary research identified that 25 out of 30 participants have bought Red Bull before. Other five participants however stated that the main reasons why they have never bought Red Bull before are the fact that it id damaging for health as well as they do not like the taste of the product. Our questionnaire also found that most of the participants buy Red Bull at least ones a week, which shows that product's popularity is growing. However the majority of participants do not agree with the retail price of the product, twelve (majority) participants stated that the price that they would be happy with is in the range of 70-90 pence.
Our research followed on with qualitative part of primary research which was made up of two focus groups of six people. Here we found that majority of participants still buy Red Bull, however some do not buy it as often as before because of the negative publicity that the drink has been receiving. Others suggested that negative publicity did not affect their buying behaviour in any way, mentioning that there are many other products which are claimed to cause damage to your health however people still buy them. Finally both focus groups brought up a topic of high price for the Red Bull drink, arguing that you do not get enough for what you pay'.
After analysing our findings and looking at some marketing models and theories, we came to the conclusion that Red Bull should try to decrease its price in order to maintain the rising star' position of the Boston Matrix which it occupies at the moment. Otherwise an increasing competition might push the product out of its prestige' position in the market.
The presentation will also emphasize how persuasive advertisements can have significant effects on society, including society’s ideological perception of products and their contribution to the nation’s overall health. It was even found to have more Kilojoules than an average Mars Bar! In fact, the study found that most muesli bars usually have more than 1000 Kilojoules. See how misleading advertisements and packaging can be! These clever marketing techniques give extremely sugary foods a healthy perception to make it more enticing to buy – even though it’s still not healthier than confectionary.
From the review of U.S Census on the size of the market segment to which the marketing campaign of Dr. Thunder would target, it has been found that the marketing campaign would target around 3 million Americans. Over the past 10 years, it has been noticed that the target market segment has grown for about 7.7% (United States Census Bureau, 2013). Moreover, the target segment would expand by another 8.9% in the coming ten years. Upon understanding the dynamics of soft drink industry in USA, it is found that the following three factors have an impact on the consumer behavior of this industry:
Advertisements have become more common and can be found in almost all locations in the society; however they vary depending on the content and the medium they use to convey the information. It can be noted that television has become one of the most influential and powerful medium since it gives both visual and hearing attributes. Television is preferred by many organizations among them being Power ads since it gives a leading hand in competition since it basically influences the consumers not because of the unique product qualities but the mode at which the advertisement is made. Advertisement being one of the marketing strategies has to be designed in a way that it will have an appealing and influential role in the society or in the persons who view the commercial or ad and below is the analysis of the appeals the PowerAde has had in its advertisement as an energy drink. The emotional appeal in any advert should basically have the deep lying desire in which the individuals should be yearning for i.e. the advert should be in such a way that it attracts the attention and increases their quest to gather more knowledge thus increasing the communication.
In this report I shall be looking at data compiled on the client and using this data I will analyse the market potential and demand for "health drinks" within the United Kingdom. Also I will consider whether it is viable to expand and develop the brand within the market whilst maintaining the socially responsible attitude of the company, in conjunction with the growing health trends and the client's ethical product production.
The energy drink over the years has been quite sustainable and really do not have any chances on taking a loss on revenue during anytime in the future. Companies like Red Bull, Monster, and Rock Star will always be in competition with one another. Some of the strengths of this industry is the status that all of the most prominent brands of energy drinks uphold to. They all use different branding and marketing techniques that distinctly separate them from each other. The energy drink industry has seen much growth over the last few years. While, they have seen much growth in their sales and gross profit this also contribute to the broad geographical presence they serve all around the world. Companies like Red Bull is currently being sold in about 167 countries and is still growing to expanding to a lot more (Red
As per this the authors conducted an experiment with energy drink revealing the importance of motivation as an important factor contributing to placebo effect in marketing.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
In 2003, Palmer Jackson, Inc. created a new line of sports beverage called Green Ox. This beverage has some differences from other similar beverages, as it contains the benefits of antioxidants and it can compete in more than one category, such as sports drinks, vegetable juices, and antioxidant supplements. These are not the only advantages of Green Ox, because some reputable reports argue there is a strong link between using the vitamins and minerals that Green Ox has to reduce the risk of some specific types of cancers, and Green Ox will launch on a type of market that is growing to 15% per year. In order to ensure the success for Green Ox, the company has contracted with Marketing Studies Incorporated (MSI) to study the market and do some important researches. However, Palmer Jackson, Inc. faced one of the challenges that has been common when companies prepare to launch new products on the market. First, the company needed to determine the target audience, especially as we know the large variety of people who deal with this kind of product. Second, the company needed to think thoroughly about how it could position Green Ox with its benefits on consumers’ minds, as Green Ox has the capacity to compete in three different
I believe that Instead of increasing total consumption, the main idea of advertisers is to encourage consumers to switch to their brand and create brand loyalty. Retail value of beer produced annually in the U.S. is about $50 billion. (Hanson, 1997). If an advertising campaign increases its market share by one percent, its sales would increase by $500 million. (Hanson, 1997).However, if the total market for beer increased just by one percent, a brand with a 10% share of the market would only experience a sales increase of $50 million. (Hanson, 1997).
Red Bull is an energy drink manufactured, distributed, and marketed by Red Bull GmbH, which is a company in Austria. The company was established in 1987 in Austria and hit the global markets in 1996. Red Bull is the most popular energy drink across the world selling an estimated 5.2billion cans in 2012 as reported by Symphony IRI. The company commands a 50% and 46% market share of energy drink industry in Canada and United States respectively. The brand is also marketed in Europe, Asia and has recently ventured the African market with the establishment of a distribution depot in South Africa. Further, the company generated approximately $400 million in sales in America and Canada alone in 2012.
Red Bull has becoming hugely successful and operates within the global soft drink marketplace. Within the soft drink industry its niche is the ‘energy drink’ market, of which Mateschitz was largely responsible for creating. Red Bull currently is the leading energy drink across the entire globe. It holds 70% of the market worldwide (Gschwandtner, 2004). Once the drink was passed by health ministries, Red Bull entered the Austrian market, soon thereafter then moved into Germany, United Kingdom and the USA by 1997.
Our society face various problems related to energy drinks. Daily Mail (2017) states that the affordability of energy drinks has made school children dependent on them and Australian students performance were worse than before, due to excessive intake of energy drinks. 35 year old Mick Clarke was dead after excessive intake of energy drinks (Harradine 2014). Three Canadian males died after drinking Red Bull (Energy drinks suspected to have caused deaths of 3 Canadian 2012). Similarly, many people face these kind of problems many of the cases are published and thus, hidden
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
1.Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together . The fact that Red Bull is seen as a luxury and sports drink is a strength, weakness, opportunity, and threat within itself (Kansara, 2); being labeled as such sets Red Bull apart from their competitors, pushing them into one field and industry to prosper in and be associated with, leaving them opportunity to determine the way that industry will grow as they are the pioneers but also threatening their hopes for expansion. In a nutshell, in order for Red Bull to truly work towards their mission
The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountain and other. Out of the five channels the case describes vending as the most profitable channel for the soft drink...