Case Study Red Bull
They focused on getting Red Bull products into trendy shops, clubs and bars.
Free Red Bull products are available at “sports competitions, in limos before award shows and at exclusive after-parties. Among Red Bull’s most popular “anti-marketing” campaigns are the events that they sponsor. Red Bull has united its brand clearly and consistently with extreme sports and action. In spite of its significant strengths, Red Bull also has weakness that it must overcome to remain successful in the highly- competitive energy drink Industry.
Red Bull’s small product base, lack of innovation and significant marketing expense present opportunities for competitors to overtake Red Bull as the market leader.
In the last ten years, they have created three additional product offering, Red Bull Energy Shots, Red Bull Sugar Free and Red Bull Cola. However, other companies “eke Coca-Cola, Monster, and Pepsi were Introducing new products in an effort to overtake Red Bull. Red Bull has been able to maintain its market share, but its limited product offering and lack of innovation create significant opportunities for its competitors to gain a foothold in the market.
Additional threats such as a public health concerns over the amount of caffeine included in Red Bull Energy Drinks have caused the drink to be banned. Red Bull can meet these challenges and hold off the competition by focusing on new production innovation.
This innovation could be as simple as introducing a new energy drink flavor or as complex as creating an entirely new product. Without diversification, Red Bull will quickly fall behind Its more aggressive and more Innovative competition. 2 Should Red Bull do more traditional advertising?
Why or why not? Red Bull’s anta-marketing strategies are the Converse of traditional advertising. Currently, Red Bull uses traditional advertising techniques to reinforce the brand to mature markets, but they do not use it to establish the market.
As a result of their “seeding programs”, now Red Bull products are available in clubs, bars, restaurants, convenience stores and grocery stores all over the world. Red Bull’s sponsored events are expensive but they also bring brand awareness and free to hundreds of thousands of current and attention consumers.
Red Bull has created brand loyalty among consumers which has allowed them to maintain their market share among competitors. Based on the success Red Bull has enjoyed over the past 20 years, I would recommend that they maintain their current non-traditional marketing strategies. Its target marketing and its marketing strategies are all consistent with this brand Image.
3. Discuss the effectiveness of Red Bulls sponsorships, for example, Bull Straits. Is this a good use of Red Bull’s marketing budget? Where should the company draw the line?
Red Bull’s sponsorships span a wide variety of extreme sports, athletes and artists. Red Bull is locate to taking extreme to new Limits Witt annual events sun as Hugest Ana Red Bull Air Race that attract hundreds of thousands of current and potential consumers. With Bull Straits, Red Bull is sponsoring a 23 mile high free-fall drop, which will be the first time a human has reach supersonic speeds in a free fall. These activities don’t directly promote the energy drink but they do promote the Red Bull brand image.
As consumers become more engaged with the content provided by the brand, they are more likely to become engaged with the products the brand provides. Consumers focus Red Bull sponsored events as well as view the videos on Red Bull’s website are the exact consumers that Red Bull is targeting with their products. As generation young consumers age, Red Bull will need to focus on younger market segment. Red bull needs to ensure that its marketing strategies are consistent with those needs and wants. This can be done through the use of consumer surveys, Ochs groups and extensive market analysis.
When Red Bull’s current marketing techniques become ineffective, Red Bull needs to draw the line as demonstrated through marketing data. When this time comes, Red Bull will be forced to change its approach. It is significant that Red Bull continually monitor marketing trends and the effectiveness of its chosen strategies so it can quickly change when the marketing data indicates to change. This will allow Red Bull to continue to stay ahead of its competition and retain its position as the market leader in the energy drink industry.