Mktg 2101 Red Bull Case Study Free Essays

MKTG 2101 Consumer Behaviour Case Study -Red Bull: Rampaging through Global Markets 1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future? Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. We will write a custom essay sample on Mktg 2101 Red Bull Case Study or any similar topic only for you Order Now Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities. Mateschitz’ strategy aimed to target opinion leaders, believing that â€Å"the authority of one alpha bee can influence the buying habits of hundreds†. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto â€Å"No Red Bull, No Wings†. In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China. With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way. . How does Red Bull arouse the motivations of customers to purchase its energy drinks? Red Bull and Mateschitz explain â€Å"we are always looking for a more creative, different point of view† (Dolan 2005) to promote and present the product to the customer. This attitude is consistent with the brand personality and the image of its customers. It is for this reason that the comp any aligns itself with the young male – fast paced and energetic, interested in extreme sports, risky behaviour and never satisfied with the last thrill. The company too, is never satisfied, continuing sponsorship of extreme sports, owning Formula 1 racing teams and even developing its own sports such as BMX bike riding, Kite Boarding, Freeskiing, paragliding and more! The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis. The company has also attempted a viral marketing strategy, in order to get the product to the consumer in a cheap and effective way. However, these efforts are also well calculated, for example, the drivers of the Red Bull VW Beetle are generally extremely good looking females aged 19 – 28 years, attractive and corresponding for the targeted young male. 3. Describe the brand personality of Red Bull. Why do you think the concept of brand personality is so important to Red Bull? Brand personality allows the consumer to develop a meaningful attachment to the product. People do not develop meaningful, long lasting relationships with the thing itself, it is when the consumer is able see the product with a certain persona, with feeling and meaning; it is then that the relationship develops and potentially blossoms. Red Bull and Mateschitz understand this and have created a brand personality that embodies excitement, energy and exhilaration, â€Å"Red Bull isn’t a drink, it’s a way of life†. People are overwhelmed with the image, the amazing aura around the events and the excitement created by the athletes. Young people feel the product, the brand and the colours when they see these competitors doing the amazing things that they aspire to, enshrouded with the simple colours of silver and blue. A clean, refined image burned into their brain, connected to the memories of thrilling moments when their heart was pumping, hands were sweating and adrenalin was frantically pulsating through their bodies. By creating these experiences for their consumer Red Bull are facilitating the development of important relationships with their product. In my opinion, maintaining brand personality and relationships is imperative for Red Bull. Mateschitz himself states, â€Å"We don’t bring the product to the people. We make it available and those who love our style come to us† highlighting his acknowledgement of the importance of people aligning themselves with the brand personality and developing a meaningful and long lasting relationship with the Red Bull product References * Dolan, K. (2005). The Soda With Buzz. Forbes. com http://www. forbes. com/global/2005/0328/028 print. html * Sciffman, L. , O’Cass, A. , Paladino, A. , D’Alessandro, S. and Bednall, D. 2011. Consumer Behaviour, 5th Edition. Pearson Prentice Hall: Australia * Gschwandtner, G. (2004). The Powerful Sales Strategy Behind Red Bull. Selling Power. September. http://www. sellinpower. com How to cite Mktg 2101 Red Bull Case Study, Free Case study samples Mktg 2101 Red Bull Case Study Free Essays MKTG 2101 Consumer Behaviour Case Study -Red Bull: Rampaging through Global Markets 1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future? Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. We will write a custom essay sample on Mktg 2101 Red Bull Case Study or any similar topic only for you Order Now Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities. Mateschitz’ strategy aimed to target opinion leaders, believing that â€Å"the authority of one alpha bee can influence the buying habits of hundreds†. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto â€Å"No Red Bull, No Wings†. In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China. With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way. . How does Red Bull arouse the motivations of customers to purchase its energy drinks? Red Bull and Mateschitz explain â€Å"we are always looking for a more creative, different point of view† (Dolan 2005) to promote and present the product to the customer. This attitude is consistent with the brand personality and the image of its customers. It is for this reason that the comp any aligns itself with the young male – fast paced and energetic, interested in extreme sports, risky behaviour and never satisfied with the last thrill. The company too, is never satisfied, continuing sponsorship of extreme sports, owning Formula 1 racing teams and even developing its own sports such as BMX bike riding, Kite Boarding, Freeskiing, paragliding and more! The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis. The company has also attempted a viral marketing strategy, in order to get the product to the consumer in a cheap and effective way. However, these efforts are also well calculated, for example, the drivers of the Red Bull VW Beetle are generally extremely good looking females aged 19 – 28 years, attractive and corresponding for the targeted young male. 3. Describe the brand personality of Red Bull. Why do you think the concept of brand personality is so important to Red Bull? Brand personality allows the consumer to develop a meaningful attachment to the product. People do not develop meaningful, long lasting relationships with the thing itself, it is when the consumer is able see the product with a certain persona, with feeling and meaning; it is then that the relationship develops and potentially blossoms. Red Bull and Mateschitz understand this and have created a brand personality that embodies excitement, energy and exhilaration, â€Å"Red Bull isn’t a drink, it’s a way of life†. People are overwhelmed with the image, the amazing aura around the events and the excitement created by the athletes. Young people feel the product, the brand and the colours when they see these competitors doing the amazing things that they aspire to, enshrouded with the simple colours of silver and blue. A clean, refined image burned into their brain, connected to the memories of thrilling moments when their heart was pumping, hands were sweating and adrenalin was frantically pulsating through their bodies. By creating these experiences for their consumer Red Bull are facilitating the development of important relationships with their product. In my opinion, maintaining brand personality and relationships is imperative for Red Bull. Mateschitz himself states, â€Å"We don’t bring the product to the people. We make it available and those who love our style come to us† highlighting his acknowledgement of the importance of people aligning themselves with the brand personality and developing a meaningful and long lasting relationship with the Red Bull product References * Dolan, K. (2005). The Soda With Buzz. Forbes. com http://www. forbes. com/global/2005/0328/028 print. html * Sciffman, L. , O’Cass, A. , Paladino, A. , D’Alessandro, S. and Bednall, D. 2011. Consumer Behaviour, 5th Edition. Pearson Prentice Hall: Australia * Gschwandtner, G. (2004). The Powerful Sales Strategy Behind Red Bull. Selling Power. September. http://www. sellinpower. com How to cite Mktg 2101 Red Bull Case Study, Free Case study samples