Introduction to Marketing
Red Bull
1. The Product/ Competitors/Industry
1.1 Product
Red Bull is a sweet, caffeinated drink aimed to give consumers the high energy kick. Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only two ‘flavours’ (original or sugar-free). It contains caffeine, taurine, glucuronolactone, and B vitamins. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull has become the worlds leading energy drink, a staple in many young, and active people’s lives.
1.2 Competitors
Big global companies such as Coca Cola and Pepsi have introduced their own energy drink versions to their product base. Mother (by Coca Cola), Amp (Pepsi), V, Battery, 180, RedEye and Bennu being just some in the ever-growing energy drink market.
Competition also presents itself in original sports drinks, such as Gatorade (Pepsi) and Powerade (Coca Cola). Furthermore, premixed alcoholic drinks like the Smirnoff range form part of the competition.
1.3 Industry
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.
2. Needs, Wants and Demands satisfied by Red Bull
2.1 Needs
There are three basic human needs that Red Bull satisfies, physical, social and individual needs. ‘Human needs are states of felt deprivation… marketers do not invent these needs; they are a basic part of human makeup…People in industrial societies might try to find or develop objects that will satisfy their needs.’ (Kotler et al. 2006)
Firstly, a physical need is when tired drivers are feeling the need to fall asleep due to fatigue; and this can compromise their safety. A driver needs to stay awake and alert when driving to avert danger and this need is satisfied by Red Bull. In fact it has become a ‘hot item amongst tired drivers stopping at gas stations.’ (Gscwandtner 2004).
A social need for example is where ‘humans have a social need for belonging’ (Kotler. 2004) and this need is satisfied by belonging to a group. A group could be people with the same interests eg extreme sports. Red Bull associates itself with energy, danger and youth culture, and markets its product through its sponsorship of youth culture and extreme sports events.
From what you can see in the (Datamonitor) after 2006 the energry drinks sold just under 400 million more liters then they did in 2006. The market value for energy drink would continue to increase until 2009 when they starteed to decrease the amount of liters sold in the USA. In 2009 and ...
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
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
The Atlanta, Georgia USA-based beverage company chose the annual Consumer Analyst Group of New York conference in the Big Apple last Friday (February 22) to introduce the attractive, new 250-ml soda bottles, which come in red, black and silver aluminum. Thus far, the beverage company is offering its regular Coke, Diet Coke and Coke Zero varieties in the red (pictured at left), black and silver aluminum bottles.
An interview held on April 10, 2013 with a customer who is not a fan of energy drinks described the logo as being clever in design and the overall appearance as colourful. Interviewee also stated that the oval appearance of the can design with graphics is very creative, appealing to the m...
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.
Based on the website cspinet.org which is the Center for Science in the Public Interest publish on June 25, 2014 said that in documents obtained from the Food and Drug Administration show that since 2004, a total of 33 deaths have now been linked to energy drinks. Of those, 22 deaths have been linked to 5-Hour Energy, 11 deaths have been linked to Monster, and one death, a first, has been linked to Rockstar
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
Background - RedBull was launched in 1987 by GmbH and was derived from a Thai drink KratingDaeng. Austria was the first place where Red Bull started its business in 1987.It started its business in Hungary in 1992 and the United states in 1997. These were the first foreign market for a Red Bull energy drink. Itsslogan “RedBull Gives You Wings” started in German...
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...
“The term energy drink refers to a beverage that contains caffeine in a combination with other ingredients such as taurine, guarana, and B vitamins, and that
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
Red Bull. 5 Hour Energy. Monster. These energy drinks are becoming increasingly popular not just for teenagers and college kids, but in the world of athletics as well. Athletes around the world are drinking these beverages for a boost in athletic performance and stamina to get an edge over their opponents. These drinks are even being promoted by professional athletes! This increasing popularity and consumption begs the question: are these drinks safe? I decided to dig into this question, and I have found some pretty startling answers. The drinks may bring enhanced performance and energy, but they also come with potential health risks. These health risks heavily outweigh the benefits the drinks could possibly bring.
Companies utilize different marketing strategies to appeal to their target audience. The methods they use to market their products usually reflects the target audience’s preferences or needs. Gatorade was invented at the University of Florida in 1965 by a team of researchers. They discovered nutrients were not being replenished when the school’s football team competed and formulated a solution to the problem. Today Gatorade primarily targets athletic or physically active individuals, especially professional athletes. Over time, Gatorade has become one of the most popular and leading sports drink companies in the world. Many people recognize what Gatorade is and what they do to help individuals who need the extra replenishment so they can continue
energy drinks when it comes to rehydration, firms were still able to use advertising to change