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Red Bull Energy Drinks Ltd

Paper Type: Free Essay Subject: Marketing
Wordcount: 3188 words Published: 25th Apr 2017

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Executive summary

In the energy drinks world, at first red bull brought this concept to consumers and still now red bull is a leading company. They have a reputation for their good quality product. So they need to keep research on current market situation to hold their current situation. So the purpose of this report is that, try to analysis the current market situation of red bull, about target market and try to define the marketing mix. And briefly presented some findings which are presented at the bottom.

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At the beginning of this report briefly describe about product and also explain what is core actual and augmented of red bull. It is moreover presenting one of the particular target markets and they are big in size. The name of the particular group is called ‘active student’. They are very loyal consumer group and most of the consumer group comes from young generation. So it is very important to understand their psychology. And then define red bull as a convenience product in addition briefly presented how many product lines and product mix are available at the moment. Red bull follow the status quo pricing strategy and much more information are given in the report. Advertising and sales promotion are the two promotional tool of red bull and five channel are used they are includes newspaper, TV, radio, magazine and internet. two perpetual maps are drown and one map showing at beginning stage position and another map showing of the maturity stage positioning.

Purpose of the report could be help marketers to take right decision to assure future progress and make the information available to the shareholders.

Table of Content


Once upon a time when civilization was not so developed like today, that time people only used water when they thirsty . After time being, some people come up with new concept like energy drinks .in this industry, currently red bull is one of the leading company as well as for the first time they introduced this new concept to the world. So in this whole report, lots of true aspects are presented which might help to the market researcher or shareholders to making their right decision.

1.1 Authorisation and purpose

MR. Dietrich MATESCHITZ who is the current CEO of red bull has given the authorisation to make available this report to market researcher or shareholder to help them to making their decision about regarding red bull marketing mix.

In this report, various topics are deeply illustrate including marketing strategy plans over and above how they categorised and promote red bull in market which are going help marketers to search prospective customer and build up a better relation with existent customer.


This report provides lot’s of information though to make this report facing some limitations which are make it bit less informative .These limitation includes not enough access to information in online, not enough resources .Gathering and dealing out data every so often can be costly including lack of experts, lack of funds to collect primary data . Time management is a further limitation; additional days could be made it more enlightening.

1.3. Scope of the report

In This report have been tried to cover the most significant area of red bull though we have some limitation and what’s why it is not possible to cover all the area that is not include in this report. the most essential area that is covered here which is briefly describe about product, product feature market segmentation of red bull, who are the target market, what’s the promotional and pricing strategy of red bull, some suggestions about how to develop those strategy and true implication on market

The topics those are not covered in this report are S.W.O.T analysis, competitor of red bull, consumer buying behaviour.

2. Product and target Market

2.1. Product

Red Bull Energy Drink

Figure 2.1: picture of red bull

Red bull energy drinks comes in 250 ml with silver and blue can. Red bull energy drink called a efficient beverage which is contain a combination of high quality ingredients .It vitalizes our body and mind.

Researchers are able to prove that individual ingredients of red bull energy drink increases:

Performance of individuals

Concentration as well as reaction speed

Stimulates organic process

Improve observation

Table: 2.1

Red bull is created for those people who want to have a clear and alert mind and want to perform physically .In short, it helps those people who wants to be mentally and physically dynamic.

Type of product:

Red bull energy drinks (as a convenience product)





Regularly purchased



Mass media


2.Sales promotion

Target market:

Company figures

Here is presented one of the most key target market of red bull .Most of the consumer comes from this segmentation. It can be called as active student. This particular group are very young and easy to convince rather than other target market. So briefly description is given below about this segment:

‘Increasing popularity of red bull among students’



Segment 1


Active Students



All the big major cities and all the suburb or town of Australia


Very Large


Consumption rate is high than their normal use in hot weather, sunny weather. so red bull is more preferable in summer time



Most of the student are aged roughly between 15-35


vast group of Young male and also have small number of female market

Marital status



Low to moderate disposable income


High school and university students


Mostly are high school, undergraduate and postgraduate or equivalent student



They are more energetic, hard working, less time spent to buy something and when they like something, they like for long time.

Price sensitivity

They are sensitive to price. Because their income level is low.




students are normally drink red bull specifically for lacking of sleep, to enhance energy like performance, concentrating at the same time as studying, Driving for long time, drinking with alcohol in the party, to pleasure a hangover

Usage rate

Heavy user .They has high addiction. They consider red bull is a part of their lifestyle. They always take in their mind when they shopping .red bull is their favourite energy drink

Loyalty status

Very loyal, once they like a drink they stay with it for a long while.

User status

They regularly purchased it.

Buyer readiness stage

Readiness stage



High awareness proportion in the midst of consumer


High interest toward the product


Very popular among consumer


Consumer prefer it more than its competitor


consumer have full acknowledge-ment that the product are satisfying their requirements


Once they decide ,they are ready to buy

Purchased occasion

Before exam, while study pressure, picnic, while gossiping with friend, drinking with alcohol

Brand loyalty

Consumer are very loyal to their brand

3. Product strategy

3.1 product type and marketing mix implication






Red bull energy drink 250ml is a convenience product because it is regularly purchased, generally buys without much planning or needs short time, involvement, and minimal comparison of alternatives.

Red bull is popular brand among consumers .so when people purchase it they consider About brand, but if they find difficultly to get it ,they may shift to other brand

Low cost

Widely distributed

Mass media

Table: 3.1

3.2 positioning strategy

The following positioning bases for red bull energy drinks 250ml are briefly describe below:

Price and quality

if we positioning red bull in term of price and quality, red bull have currently high price compared with other competitors on top of that maintain high quality

Usage rate

As a convenience product usage rate is moderate. On average people are using one per day.


lot of competitors are coming in this industry .but still red bull is a leading company


the core benefits is to get refreshment and get more concentration for while


Mostly are young male, students, professional, athletic, drivers, labourer.

4. Promotional strategy

Red bull promotional strategy is very strong .red bull promotional tools; channel type is shortly described below:

Advertising tools:

Commercial advertising is very imperative tool for red bull company. The commercial advertising intended to make stronger brand identity more willingly than create brand alertness and force that is supplementary key booming of red bull’s promotion. They are:

Figure 4: showing promotional tools

Television Advertising:

Television advertisements still use as a strong channel because it’s easy to reach to wide range of our target audience. The advertisements likely featured for the period of shows similar to ‘vocals of arts’ or the’ x factor’ which communicate to the cool, entertaining loving persons. so that kind of tv shows will increase red bull’s extensiveness by showing what’s the part of red bull in the lifestyle of study as well as work


Radio Advertising:

Red bull runs a music academy radio .that has three options for listeners for example global network, show finder and newsletter to break and listen in.


Newspaper Advertising:

News paper is traditional and popular way to advertising of any product. Red bull regularly publishes their advertisement in popular newspapers.

Internet and World Wide Web advertising:

Internet consider as a very strong increasingly popular channel now a day .internet user are increasing and markets of red bull are found it as effective channel for advertising for their product.

Magazine advertising:

Every month red bull publish their own magazine .the magazine name is ‘red bulletin ‘which is already have taken a position on rider’s mind.

Viral Marketing:

Now red bull is focusing on mouth to mouth advertising. Who is very loyal consumer, red bull target them and they work as an opinion leader and they influence others to use

4.1. Promotional image of red bull


Image 4.1: promotional image of red bull


Suppose Above promotional image are targeted particular target group. If we consider student as promising target group above image are appropriate to influence this particular group. Above advertising presented one old guy who is renowned as top late scientist name Albert Einstein. He invented lots of basic scientific formula and so on. so when that particular target market see this add, they can take it positively .they might thought that energy drink contain some ingredients that might helps them to think or act like Einstein. This image might have power to drag other promising target market in future like professionals.

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4.1. Advantages and disadvantage of the above tool.


Above tool are working as effectively so far. Now a day’s people are so influenced by those tools like television , radio , print , magazine ,face booking ,event sponsoring ,bill board ,those have huge psychological impact on for whom it made it .on the other side ,young people , children are easy to convince by attractive ,colourful , adventurous of promotional tools


Content of the advertisements should be more realistic, convincing, sometimes people may not believe .Those advertisements are targeting particular target customer whereas competitors are already implementing other effective promotional tools, to extend the business company need to find out more channel of promotion.

5. Pricing strategy

5.1. Pricing objective

Red bull set status quo pricing objectives for its pricing strategy which is continue existing prices or meet up the opposition’s prices .

Red Bull Company sets a price that is comparable range to that of its rival. . When company make its price lower than its opponent, as a result a price war will be started. For that reason other company have to bring down their price too. Consequently, from this war customer going to benefited. Other objective of this pricing strategy is declaring stable return of the sales. The company gets a stable flow of consumer and is ensured of a secure return by not pricing more than or lower its competitors. On the other hand, red bull centres on managing its costs of manufacturing and marketing the products in order to keep up its market prices. Accordingly, red bull company go for status quo strategy when the marketplace is downward, in order to continue to exist a down ward market place, it may come to a decision to adjust its pricing goal later on. After improving market situation, red bull can settle on additional maximization the profit as well as adjust its pricing consequently.


At the maturity stage, we need to re-position the red bull energy drinks. as we see lots of other brands come up with similar product and there is a tough competition among the companies .still red bull is the leading company and try to differentiate their product from the others. The maturity stage, the price of the red bull is high compared to the others. And popularity among youth is high.

6. Marketing Mix Adjustments

6.1. Recommend changes for product strategy:

Currently in the market red bull have modest product mix such as red bull energy drink, sugar free, cola, shots. If we analysis about competitors market, they are fast growing with their new product mix. For long run sustainability, red bull should come up more product mix, so people have more option .on the other hand , they should come up more product line like currently red bull have 473 ml highest, it would be better to come up more product line eg-500 ml. Another proposal beside of tin can, company can lodge the drinks in plastic bottle; it will be much cheaper than tin can.

6.2. Recommend changes for promotional strategy:

Now a days, it’s very important for any product that how a company promoting their product, because it creates brand image on consumer mind .so a smart marketer search all the possible ways to promote his/her product. Regarding to promotional sector red bull has done relatively well so far. In the present market, there have some other competitor, who comes up with different promotional strategy. Besides using traditional channel, red bull need to find out some more effective channel which will help out them to reach more close to the consumer .like face book is very popular among young generation. if red bull focus more on face book tremendously more people will be interested on it. , try to sponsor big occasional event/ game where more people are involved.

6.3 Recommend changes for pricing strategy:

Price is sensitive more than any other strategies. so it is very important before set a price, marketers should have some clear idea about surrounding market and how much value a consumer ready to pay/precise value of the product .From the perpetual map it shows that red have high price positioning on consumers mind compared to the others .for that reason people may shift to the other competitors which is may not accepted. So keeping the current position in the market and expends the business in future red bull need to cut down the price.

7. Conclusion and Recommendation:

7.1. Conclusion

At the end of this report it can be said that red bull energy drink has come a long way successfully and still have leading position in the market. To Making this report, some lacking are found about target market as well as product ,pricing and promotional strategies .About target market red bull, it is found that red bull have some selective target market , and it’s time to find out more possible target market. That will make more secure environment for red bull. About the product strategy, it is fair to say that red bull don’t have enough product variety, limited product mix and line. Regarding to pricing strategy, it is found that currently red bull hold high price in the market compared to the others. Though red bull have a good brand image in the market, but it should always keep in mind that consumer are more sensitive about price than any others factors. The last finding is about promotional strategy which is another powerful tool of marketing. Above research shows that red bull has use traditional promotional tool so far like TV adds, newspaper, radio, bill board, magazine and so on where lots more other promising channel are available.

7.2. Recommendation

Following recommendation is suggested for red bull energy drink is given below:

Beside the existing target market, Red bull should come up with new potential target market which will be more profitable in long run

Price is perceptive than any others. From this point of view, red bull’s need to move from their current strategy point. Price can be slightly cut down from their present pricing.

People will come back to the same product if they got more option than other product don’t have .so red bull should turn up with more product mix and line which will facilitate them steady position in the market

Keep searching for new promotional channel which might be assist them to capture more prospective target market.


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