Name Dilip Raj Bhatta Kathmandu University School of Management (KUSOM)Roll No 10108

Assignment No. 4 Pick a brand of your choice and identify its market segment along with marketing programs offered to specifically target the segment.

Answer:

Brand Name:Red Bull, an energy booster soft drink, is a successful brand worldwide.

Description of the product: Red Bull Ltd is an Austrian company (originated from Krating Daeng* in Thailand) which sells the Red Bull energy drink. The company was co-founded by Dietrich Mateschitz, an Austrian entrepreneur who had the idea to introduce the drink to, and market it in Europe in 1984. This company is now a market leader in the energy drinks. In 2010, more than 4 billion cans were sold in over 160 countries, which generated 3.3 billion Euros in turnover.1

The Product is divided into three different categories. These include Glucose energy drinks, Sports drinks and High energy stimulation drinks.2

Market segment (Based on Behavioral segmentation):

Red Bull is primarily a utility drink to be taken to stimulate and revitalizes the body after exertion and enhances mental and physical performance. Its use helps to increase endurance and heighten alertness as well as reactions. Generally, it is meant to help to cope with the challenges of everyday life, which includes work, leisure and sports. So, a clear cut categorization in age groups, gender, geographic and socio-economic boundary is not feasible here. In general, it is more likely that younger people falls in this category. So, the company is setting the target market mainly as a behavioral segmentation. The reason behind the behavioral segmentation is the attitudes of customers towards the product such as enthusiastic and positive, individual’s relationship with the product, the benefits the consumers seek from the product, the quality and its loyalty status.

Marketing programs offered: Red Bull has its own unique Marketing Mix Strategy. Mainly, their marketing formula is based on creative advertising; sports-and event sponsorship; and right place, right time sampling strategy.

Media Advertising: Red Bull uses all the available media channels, i.e. cinema, TV, radio, press and the internet in unique way to advertise. For example, initially they distributed free cases of the drink to consumers in an attempt at viral advertising and allow consumers to interpret the product and the moments, experiences of use themselves. They use creative advertising campaigns, for example, in one humorous and cartoon campaign, they transferred the message that this energy drink helps you to escape by ‘giving you wings’.3 The Company also use the new technology to promote Red Bull, for example it is using digital signage to push its power drink.

*Krating Daeng means Red Bull in Thai language

Sports, Events Sponsoring and brand ambassador: Red Bull sponsors the sports target market in either extreme sports such as cliff diving, paragliding , motorsports or fun sports and college tournaments using Red Bull as an energy drink. This strategy contributes to Red Bull brand appears (logos and stickers) to the customers. The company also creates its own events, for example, Red Bull Music Academy. Event sponsoring attracts people’s attention towards the product and connects them.

They hire celebrities as a brand ambassador. For example, in the 1990s, Red Bull sponsored the rower Xeno Müller, who won an Olympic gold medal in the single sculls in 1996. English cricketer Andrew Flintoff reportedly uses Red Bull as part of his game when he is tired.4This helps the brand to position its image in every customer minds.

The company also set about promoting the Red Bull brand directly to Generation Y, the so-called 'millennial': people born after 1981 who were believed to be cynical of traditional marketing strategies. Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties at which cases of Red Bull would be distributed. The brand managers would then report back to the company, also giving the firm a low cost form of market research data. 5

The slogans, "Red Bull Gives You Wings," , "No Red Bull, No Wings" , and the messages like “Red Bull will help you pass your test, Red Bull will help you win your game and Red Bull will help you party” are direct plays on the apparent stimulating properties of the beverage. The brand's graphic logo of two red bulls in a tussle is present at many extreme and adventure sports globally and through this kind of sponsorship, Red Bull has worked hard to be seen as a key ingredient for top performance.

Sampling: Sampling is another important strategy of the company. Its main purpose is to energies the company samples at the right place at the right time, where it finds its exact target market. They find out where the target demo (men and women age 16-29) hangs out and what interests them.6 Using this approach, the company spread out the message of using Red Bull. Examples of usage are driving, studying, working night shifts and sports.

References:

1. http://www.redbull.com/cs/Satellite/en_INT/Products/Company----Red-Bull.com-Products----Red-Bull-0212427519276642. http://www.drawert.com/red_bull_1.php3. http://www.sosemarketing.com/2009/06/24/red-bull-the-stuff-of-beverage-marketing-legends/4. http://goliath.ecnext.com/coms2/gi_0199-6957316/CASE-STUDY-RED-BULL-Running.html5 & 6. http://www.trcb.com/business/marketing/redbull-marketing-strategy-7375.htm