Statement of the Problem: Red Bull’s enviable position is changing. More energy drinks have been introduced in the market. The competitors of Red Bull gives the same effects when drinking these energy drinks by giving extra energy for work and improved performance for athletes. How can Red Bull compete with its competitors and still catch the attention of their market?Assumptions of the Study: Product – Red Bull as an energy drink contains carbon dioxide, Thai- ingredients of B-vitamins, caffeine, sugar and the amino acid taurine.It has distinct packaging, 8.
3-ounce silver-and-blue cans with two bulls about to head-butt each other. Red Bull’s cans are “sexy” with their size implying that they pack an extra energy and performance. Red Bull also has different variants like Red Bull sugar free which was introduced in the U. S.
using the same packaging but a different sweetener. Place – Red Bull holds 65 percent of the worldwide energy drink market. In the U. S. , it is ranked among the top 10 carbonated soft drinks. Red Bull is also known in Europe especially in Germany.
China and India are Red Bull’s key market in Asia given their huge population. Red Bull can be bought at convenience stores or at the grocery. Red Bull is one of only 10 Asian brands outside Japan that have achieved global success. Promotion – Red Bull’s promotion campaign secured a lot of cult kudos. They also promote it by the use of the Internet, where they can find Red Bull merchandise such as jackets, logo stickers and coolers. Red Bull also supports athletes worldwide mainly in a diverse range of extreme sports like triathlon, mountain biking and many more.
It also supports conventional sports like swimming. Red Bull also engages in event marketing. They also have TV commercials (Dracula, Adam and Eve) in order to catch the attention of younger generations, each ends with the tagline “Red Bull gives you wings”. They also promote it with online and video games in order to appeal to the younger generations who are fond of playing these games.
It also added mainstream sport athletes to endorse their sports events and commercials. Red Bull also sponsored a Formula 1 motor racing team.Price – Red Bull is affordable since it caters to students, drivers, rice farmers and athletes. Its price must not be too expensive in order to compete with its competitors. Since there are lots of energy drink, consumers will buy energy drink in the average price range since all these energy drinks offer the same effects regarding the price.
The price of Red Bull must be suitable for the budget of their target market.Recommendation: Consumers have different taste and preference when it comes to food and drinks.Red Bull should launched additional products that has different flavors in order to satisfy the taste and preference of the different consumers. They must be willing to modify the taste, in order to address the preference of the consumers on the different counties they are selling to.
Like in Japan, consumers preferences are constantly changing so they must constantly adapt and change the flavor in order to satisfy the taste and preference of consumers in Japan. Red Bull must also have products that has natural ingredients in case consumers prefer to drink healthy and organic energy drinks.These natural ingredients are perfect for consumers who have sickness like diabetes, since it healthy ingredients unlike the normal Red Bull which contains sugar and caffeine. Red Bull must constantly adapt to the trend and preference of each consumers in order to satisfy their taste.Management Learnings: We need to satisfy the wants and needs of our consumers. We must address right away their suggestions and comments regarding the product we are selling.
The product should always be available in any place so that consumers can buy it anytime.The product we are selling should always exceed the expectations of the consumers so that they may feel happy and be loyal to the brand. In order to cater to the different generations, we must promote our product through means which they are associated with most of the time. Consumers who are 20-year-olds and below will more likely be animated to see a product that is related to video games. Sports enthusiast are excited to see known athletes in endorsements or commercials. We must also know the demographics of our consumers so that it will be easy for us to cater to them.