What markets does Red Bull attempt to reach? How do marketing mix elements and target markets combine to form the firm’s marketing strategy?
What markets does Red Bull attempt to reach? How do marketing mix elements and target markets combine to form the firm’s marketing strategy? The marketing mix for Red Bull consists of the following: Product: Energy drink Price: $1. 99 (premium) Distribution: Across clubs and similar outlets, mass merchandisers Marketing Communication: Word-of-mouth to television advertising Red Bull attempts to reach extremists, sports enthusiasts, 18 to 24 year olds, women, as well as health conscious consumers, and recently age groups of 30 and above.
Marketing mix elements and target markets combine to form Red Bull’s initial marketing strategy which reaches out to extremists, those who are into the adrenaline rushing sports and activities. Since Red Bull is an energy drink, this approach worked well. With the premium price and through word-of-mouth, Red Bull was able to maintain 70 percent of the market. However, as competition began to rise, Red Bull needed to market beyond the extreme market and toward age groups above 24 year olds.
Still, competition continues to increase, and now Red Bull is expanding their target market to less extreme sports enthusiasts such as golfers, women, and health conscious consumers. By marketing toward golfers and women, Red Bull shows that anyone can enjoy their product and not just male extremists. Because consumers are becoming more health conscious, Red Bull produced their sugar-free version for those who want to watch their carbohydrates. Overall, as competition continues to increase, Red Bull’s marketing strategy has involved target market expansion as well as some product development and new advertising techniques. . What growth strategies seem to offer the most likely opportunities for the future? The growth strategies that seem to offer the most likely opportunities for Red Bull’s future are their expansion into less extreme sports and the female population. Because Red Bull is an energy drink, most consumers think that its primary purpose is to boost the energy of those who are hammering it out on the field, court, or wherever the action may be. However, Red Bull can be used as a simple pick me up when you’re feeling tired or just worn out. This can occur mostly in the work environment.
By carrying a can of Red Bull, you can boost your energy level when it seems you’re not going to make it through the shift. Similarly, Red Bull’s initial target was not towards women. Currently, Red Bull is working on expanding their product to women who, just like men, can enjoy the boost Red Bull gives you. With the expansion of their target market, along with new advertising techniques, Red Bull can better promote their product and keep up with the competition instead of falling behind as they have been. 3. What ethical issues are faced by the company?
The two predominant ethical issues that are faced by Red Bull are their choice for a target market and the uses for their drink. The specific target market in question is the 18 to 24 year olds. Red Bull has marketed to this particular group because it is comprised largely of college students. Red Bull can be used to give these college students an energy boost when they need to spend all night studying or just to have fun. The problem, however, is that the energy drink is full of caffeine and other ingredients which may prove harmful to those who consume too much at one time.
Marketers of Red Bull realize that college students have a need for the extra boost of energy so they have pinpointed them for consumption of their energy drink. Critics believe large amounts of consumption may have harmful effects and this has raised many issues concerning the drink. The other issue is the use of Red Bull in alcoholic drinks. Concerns have risen regarding the mixture of alcohol and Red Bull because of the dangers associated with it. Alcohol by itself already causes numerous problems. If the energy drink full of caffeine is added to alcohol, the harm could become great. This in itself worries critics of Red Bull.
Not only does the drink by itself cause concerns, but mixing alcohol with it raises even more issues. 4. As Red Bull expands to other countries, what international marketing issues must be considered? With their international expansion, Red Bull’s marketers must take into account the selection of an entry strategy and deciding on a strategic orientation. Red Bull must choose between three options for an entry strategy: exporting, direct investment, or joint ventures. For strategic orientation, Red Bull has the choice of a standardized marketing strategy or a customized marketing strategy.
By choosing a standardized marketing strategy, Red Bull would develop and implement the same product, price, distribution, and promotion in all international markets. On the other hand, with a customized strategy, Red Bull would develop and implement a different targeting mix for each target market country. Like with any expansion situation, Red Bull needs to study the markets within the international countries. Just because their marketing techniques work in the United States, doesn’t mean they’ll work the same internationally. Every country is different. Every market segment is different.
For instance, demand and product usage differs from market segment to market segment. Red Bull must also take into account government regulations and laws as they differ from country to country. Not only that, but Red Bull has to realize differences in consumer behavior patterns as well as competition. As Red Bull plans to expand international, there are many aspects they must take into account before doing so. If Red Bull wants to be successful, they must spend a tremendous amount of time researching all the international markets in order to become more aware of each segments needs and desires.