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Project on the marketing strategy of Red Bull
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Project on the marketing strategy of Red Bull
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Inefficient Product Promotion Strategies. Red Bull’s product promotion strategy relies on buzz marketing strategy and social media marketing. The current product promotion strategy used by Red Bull is highly creative because of its individualistic and inventive nature. Red Bull sponsors extreme sports events and hosts parties and functions for rock stars and other celebrities. The company’s product promotion strategy is proactive and original as opposed to reactive and imitated. As a result, other companies in the industry are imitating Red Bull’s promotion strategies. Unlike traditional advertising strategies, buzz marketing strategy places brand information on actual objects that potential consumers can relate with (Russell 109). Buzz advertising …show more content…
Red Bull’s brand positioning is based on the slogan, “Red Bull gives you wings and ideas” that targets youngsters and millennials. Consequently, the brand is associated with extreme sports personalities and events that attract young and energetic individuals. In addition, Red Bull is known to endorse sports figures and rock artists. Red Bull’s brand is associated with extreme sports events and personalities and similar content that are mostly communicated through social media. However, this brand positioning strategy only appeals to the young and energetic males while forgetting children, women and older consumers. Women and children make up a key part of the world population and targeting this population would enable Red Bull increase its market Share and overcome competition (Russell …show more content…
The current marketing strategy of Red Bull is based on the slogan, “Red Bull gives you wings and ideas” that targets active male students and professionals. This marketing strategy undermines the company’s market position and value share. In addition, Red Bull has a limited product range that limits the ability of the company to meet market needs. In order to address these marketing issues, Red Bull needs to address competition, develop more products, target different consumer segments, use more efficient product promotion strategies, and work on its brand position. If the company is able to consider these factors, it can achieve a better brand image and improve its market and volume
One that many people have heard of is “Miller Time”. “Miller Time” allows us to sell a social experience that connects with various age groups, and is a throwback from 1971. This phrase helps our company reach a larger target market. “Miller Time” helps rebuild the product image and repositions. It is lifestyle messaging that is communicated to customers through advertising. MillerCoors uses television for advertising, along with our online series, “The Ultimate Internship Experience”. We have ties with “The internship” the hit movie that recently debut. We allow our customers to show their pride for this great tasting beer on social media by using hashtags such as, #ItsMillerTime, or #TGIMT (Thank God Its Miller Time). We have Sweepstake promotions such as, “Its our time, Miller Time”. This promotion has specially marked containers of Miller Lite giving our customers a chance to win. Through this promotion we have seen a tremendous boost in retail. We regularly have various types of contests to help grow our brand. MillerCoors also uses personal selling with distributors which grows relationships and helps increase retail
Gatorade is a reputable market leader in US sports drinks industry, thus being so broadly recognized is a top strength of the company. Gatorade's strong brand awareness and status amongst the masses and in the area of certified sports solidifies their grip on the market. This helps devalue the existing competitive brands such as Powerade; also restricting the new brands in the industry to flourish. Affiliations with professional athletes and teams is another top strength of Gatorade as a brand. This translates into a powerful value in terms of not only expanding their consumer base but also truly building the 'sporting element' of the brand. While celebrity endorsements help promote the Gatorade
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
We see that energy drinks and sport drinks are used more frequently in young adults. Advertisement market to young individual to influence them to buy their products. Example, in a Powerade commercial you will see a man out on the basketball court running up and, down the court sweating and chugging a Powerade. This commercial put in the mind of young men that cool men play sports and drink Powerade. To fit into the image that was marketed to the young men you see many young men drinking Powerade and playing sports so, that they can be more like the cool man that was shown on the advertisement. We also see that brands like Red Bull and Monster sponsor NASCAR, Big Truck races, and Dirt bike races. These people who take in these activities are role models to many young adults. With sponsorship from energy drinks you will see many fans consuming the product. Energy drink and sport drink brands target people as consumers and, find ways to make money from
For Red Bull, competition in the energy drink industry is minimal. Red Bull competes with brands such as Monster, Rockstar, NOS and Amp. Among these brands, Red bull comes out to be the industry leader, with a market share of 43%. (Time 2015) Following behind the popular brand, is Monster, which is Red Bull’s largest competitor. This brand, who now has a long term partnership with Coca-Cola, (Time 2014) has a 39% market share (Time 2015) Other less popular brands fall in with lesser market share success. Rockstar is another competitive brand that markets to a similar target market. They enjoy only 10% of the market share (Time 2015) Red Bull also faces Nos, a brand owed by Coca-Cola. The product is named after nitrous oxide. NOS’ market share
During the past 15 years, the drink has been copied by more than 100 competitors, but such companies as Coca-Cola and Anheuser-Busch have been unable to take market share away from Red Bull. Says Red Bull founder Dietrich Mateschitz, "If we don't create the market, it doesn't exist." Mateschitz's secret to creating a $1.6 billion worldwide stampede for Red Bull lies in a highly ingenious "buzz-marketing" strategy that herds consumers to exclusive and exciting events that get high media coverage. Red Bull supports close to 500 world-class extreme sports athletes that compete in spectacular and often record-breaking events across the globe. Mateschitz explains, "We don't bring the product to the consumer, we bring consumers to the product."
Since inception, the company has always embraced aggressive promotions and marketing campaigns that have enabled the company to remain competitive in its energy drink industry. The company targets active males in the age bracket 18-35 years according to O’Brien (2012) as its target market. Over time, the company has developed various slogans to market their products though their logo has remained unchanged. The most famous slogan “Red Bull gives you wings” has been used to market the Red Bull brand in various English and German speaking countries over the last decade.
Still there are problems trying to change customer perception towards energy drinks, mainly because new results of side effects of drinking too much Red Bull are being published, therefore a sceptical feeling is affecting the market.
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
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)
The first step for Pepsi Cola to undertake is to generate ideas for the new product. There are many different alternative ideas available to help Pepsi through this process. They shoul...
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...
In order for PepsiCo to be successful in selling Pepsi Platinum, the company must research the marketing community. The best way to create a strategic marketing plan is to understand the target market in the beverage and sports drink business. PepsiCo must ask, “What is the demographic of this market, what are psychographics and behaviors of the specific market that PepsiCo, in regards of selling this brand, desires to reach?” Understanding our customer needs, and competitors offerings will help PepsiCo create a strategically integrated marketing plan. The principal to any successful marketing strategy is to understand the customers and their needs. The ability to satisfy customers' needs better than the competitors, will first be, that PepsiCo build customer loyalty and increase sales (Business Link, 2007). Marketing research uses many methods to obtain its results. PepsiCo will use external census data and marketing survey data collected by outside marketing research firms, as a method of understanding customer wants and needs. Computer-aided methodologies will also be used to collect data on the competitors of PepsiCo such as Coca Cola, Jones Soda, and Mo...
Sports are one thing that unite people from various backgrounds. The idea of being up-to-date with trends is also something that is idolized over different cultures. The key place to find the latest and greatest trend is from the youth’s interest and sporting events. The fact that “RBMH covered all the various aspects of its marketing tools from making online feature films, television coverage, sports magazine called The Red Bulletin, and an in house record label” means that Red Bull is not afraid to dabble into new industries in order to expand their brand (Kansara, 4). Red Bull also has a unique 4-pack packaging that differentiates them from their competitors (Kansara, 4). Supporting over 500 extreme sports athletes leaves little to no room for competitors to try and be seen in the sports industry (page 6). Red Bull also uses social media, such as Twitter, to truly connect with their consumers rather than solely sale their product. They hope to remain a privately owned company (Kansara, 9), eliminating room for unauthentic replication of their brand. They also strongly connect to the youth because they are noted as a “rebellious drink” (Kansara,