Essay Example on Red Bull Market & Product Analysis

Executive Summary

The report recognizes Red Bull as an inimitable company that has established the ability to attain success through innovative and unusual ways. The exclusive marketing strategy of the company stands out as the trademark of the company innovation. Through its market invention, and the company has been in a situation to preserve a dominant market position in the international energy drink market. Initially, the product was an Asian; however, an Austrian entrepreneur tailored it to suit the taste of the western market. The paper then addresses the marketing situation analysis, where the SWOT analysis of the Red Bull company is discussed. Importantly, the desired outcome of the strategic marketing plan, which includes, description of the company and product, market analysis along with marketing mix are discussed in the report.

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Introduction

In recent years many individuals would like to have energy drinks to replenish necessary power to catch the quick pace of life and work. Due to high level of demand, there are many brands of energy drinks in the market, specifically, in Australian market. This report, focuses on a world-famous brand, Red Bull, and analyzes its current market situation. The purpose of this report is focus in segmentation of Red Bull company, market analysis, product analysis and marketing mix of Red Bull.

Description of the Company (Red Bull)Red Bull GmbH is a corporate institution that was established in 1984. It is the most popular company in the product line of beverage drinks (Melrose and Bell, p.24). The company uses a higher precision strategy where it sells its products at a higher price than another close substitute in the industry and stills merge as the leading company (Farris, Shames, Johnson, and Mitchell, 2016, p.145). The Red Bull company holds a 70% share of the world market for energy drinks or purposeful beverages. The company targets youth ranging from fifteen to thirty years and is located in Australia and is well known for its Red Bull Energy situated in 171 countries for 31 years (Kunz, Elsasser, and Santomier 2016, p. 23). The entity controls European markets and other intercontinental marketplaces in diverse parts of the world. Despite the fact that the business manufactures other beverages related to products, its product name has been progressive globally by one of its brands, which is "The Red Energy Drinks." The mission statement of the company serves as the foundation of the marketing plan for any business since it gives feedback to the question of why the organization exists. The mission statement of the company state that "we are dedicated to upholding red bull standards while maintaining the leadership position in the energy drink category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice (Bogue, Collins, and Troy 2017, p 37)."

Market Analysis

Segmentation, Targeting and Positioning ModelMarketing is the general, sentient market-oriented corporate administration that aligns all business actions to the needs of the present and potential clients to accomplish the goals of an organization (Brito 2019, p.24). It plays a critical role in every company to operate with the philosophy of a market-oriented business management with its management function, which helps in making business decisions (Bogue, Collins, and Troy 2017, p 37). Red Bull is presently positioned two globally and seeks to repeatedly develop belligerently to be the marketplace leader through its only products, which are original and sugar-free Red Bull (Kassem and Succar 2017, p.288). The company targets the energetic individuals who are both female and male, specifically those aged between 18 and 49 years. Nevertheless, the life cycle stage involves the bachelor stage, young, single individuals who do not live at home. These people are actively engaged in education, sports, clubs, and part-time jobs (Ilin, Izotov, Shirokova, Rostova, and Levina, 2017, 814).

Segmentation, targeting, and positioning of Red Bull products describe which precisely group of the residents targeted by the corporation to sell the product through the division of the population into the various segment (Schlegelmilch 2016, p. 84).

Demographic segmentationIn this division, the groups are separated into sets on the root of variables such as income, age, profession, and many others (DeSarbo, Blanchard, and Atalay, 2017, p.95). The marketers know the variables, and therefore, they are often related to the needs and wants of consumers (Zia and Kumar, 2016, p.64). The variables are merely quantifiable. The following are the demographic variables used by Red Bull to sector the markets. The corporation sectors its client base by age as follows (Zhang, Pei and Ye 2016, p. 108).

Age. Youths aged between 16 to 30 years account for the central part of the purchaser base (Zhang, Pei and Ye 2016, p. 106). Below 16 years, the company accounts for most of the sales of their other line of goods of Red Bull soda. The corporation makes sure that those who are middle-aged and old their segmentation is a special edition that is free from calorie (Carey, Bennett, Lasenby, and Purnell, 2017, p.345).

Gender, the company mainly targets males. Nevertheless, females play as the buyer base of the corporation (Moore. and Pareek, 2009, p.46).

Income. Red bull related a precise luxury with its product name, and thus, it supplies to section that in terms of revenue, it is well (de Villiers, Tipgomut and Franklin 2019, p.23).

Psychographic SegmentationThe company uses segmentation to comprehend the mindset of the consumers better. Due to changes in marketing, the company incessantly tries to handle the new tendencies and, therefore, come up with new tastes and bids to appeal to more clients (Brown 2013, p.74). In the psychographic segmentation, the company divides buyers into (Ankeshian, 2018):

• Lifestyle
• Personality
• Occasions
• Benefits
• Loyalty
• Readiness stages

Geographical Segmentation

This is achieved through a longitudinal location to split the market. In this division, the company uses various arrangements for different topographical components such as conditions, religions, and cities (Basile Ferrari and Abate 2019, p.260).

In most cases, marketers are primarily parted into the rural and urban areas (Basile Ferrari and Abate 2019, p.260). The physical variables section marketplaces in the following ways:

• Area: Red bull restrict its self to partial urban and urban India since it is their main customer base
• City: this involves the metro representative cities.
• Region: The supply of red bull is not endless across areas in India.

Social-economic classificationConsumers who fit the high job outline with operative statement information can use it. The buying possibility of a red bull is incomplete (Basile Ferrari and Abate 2019, p.260).

TargetingIn geographical segmentation, the organization targets nations with an insignificant marketplace for the red bull (Melrose and Bell 2018, p 16). In the demographic section, the central mark is the college students and teenagers between 14 to 24 years, young youth reaching from 24 to 36 years (Kunz Elsasser, and Santomier, 2016, p.124).

In psychographic segmentation, they targeted the mind of the consumers, and in the behavioural division, it was found that they were aiming the first-time users along with regular customers (Bremser, Walter and Goehlich, 2018, p. 334).

Significantly, the Red Bull targets males with age between 18 to 35 years old. These types of customers live in the cities, and in most cases, they are drivers, students' athletes, and professionals (Lin, Swarna and Bruning 2017, p. 622). The customers choose the energy drink to concentrate more.

Positioning

The red bull company uses a positioning strategy that is mostly grounded on its image and product differentiation. It uses its product image as one of its stoutest reasonable compensations. By supporting competing and thrilling sports events, the product is strongly related to mental and physical presentation (Castellucci, and Podolny,2017, p.24). Red Bull has located and distinguished itself as the marketplace leader in the energy drink group, adapting its messaging to reach its target audience and gains an inexpensive advantage (Roy 2020, p. 54). Therefore, the company,

Differentiate its product from its competitor through its packing, amount, quality behaviour, and product experience.

The company has designed part of the group for practical drinks and has located itself as a supernumerary of coffee and other caffeinated beverages advantage (Roy 2020, p. 54.

Environmental AnalysisCurrently, companies face many strengths, weaknesses, threats, and opportunities. The market analysis permits Red Bull to meet the purposes of the advertising purpose by recognizing rivalry in the market and recognizing changes that enable it to fill the gaps, making them stand out from other businesses. The marketing situation of the Red Bull company depicts the image of being undeveloped, well extreme sport athletics supplies. The following is the market analysis of the Red Bull company.

Macro AnalysisThe macro-environment is a set of extreme situations that affect a commercial growth effort either definitely or harmfully. The factors are measured uncontainable, and they influence the overall presentation of the corporation. Red Bull company functions in an established market of soft drinks, and therefore, the threats of entering a new market are limited (Meng, Wang and Zhang 2016, p. 865). However, the prevailing blocks to the entrance are very high since recognized corporations have devoted clients who enjoy from significant loyal economies of scales and have recognized circulation channel which enable their development into new marketplaces at a lo...