Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment.
Red Bull uses mono-segment type of positioning and accordingly, the company appeals to the wants and needs of a single customer segment. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Red Bull Case Study Analysis. Jasmine A. A short summary of this paper. General Analysis Question 1: What social and mobile media tools is Red Bull using?
Question 3: How should Red Bull assess the effectiveness of these campaigns? Describe how it should respond to insights gained by this assessment. Hence, with this energy drink, this group is the most appropriate with its product. Moreover, when choose this segmentation, Red Bull is successful to promote to its customer by sponsoring for game contexts, music concepts and social media. This can help Red Bull bring it product directly to its customer.
Thus, its customers are mentioned that: they are active students, athletes, busy professionals and long distance drivers FnBnews These people always suffer mental and physical stress. Hence, red bull with features characteristic of its products can satisfy these customers. Behavior The variable in this segmentation that was indicated is Usage rate. There are three types of usage rate, there are light user, medium user and heavy user Kotler at al.
This aged group is the heavy user that Red Bull focuses on since they have the most demand on energy drink products. Geographic Red Bull bases on the density of geographic to define Red Bull market.
They have a more active and busy living so they willbe potential customers of energy drinks. Moreover, in cities there are more bars, night clubs and pubs, where Red Bull is one of the most popular and favorite drinks. This is place where Red Bull has the most customers and gets the most profit of sale. Therefore, Rural will be the main market targeting of Red Bull. Therefore, they want to choose an energy drink to become more concentrate and capacity.
Moreover, its customers are also the people who like going bars, night clubs and pubs, where Red Bull is a popular product. With an appropriate market targeting, Red Bull can make lots of sale to increase its profit over years. This is because Red Bull successfullyindicates its own market targeting. This market is really relevant with its product and this is one of the main reasons for the success of Red Bull.
With regards to V, it has developed so well and became one of the most popular energy drinks in Australia since Secondly, for increasing the products which can be supplied to the customer, V implemented sponsorships being its strategy. In , for increasing young customers, V held an activity called V-RAW which helped young people to find their ideal jobs mediahunter In addition, V has high brand awareness in Australia.
Finally, there are some weaknesses in V as well. It did not use a competitive price in Australia. From then on, because of the good quality and suitable market strategy, it quickly covered a large number of target customers. To achieve this purpose, there are two related strategies following. One is focusing on products: taste is the first thing which needs to be considered by producers. In , Mother launched Mother Frosty Berry, which added a strong and refreshing sweet option for Aussies Campaignbrief In , it became the official energy drink of the V8 Supercars which is made a deep impression by the public.
What is more, there are also some advantages of Mother. However, the shortcomings of Mother should not be neglected as well: it has low brand awareness and low brand value. It could be because that it just established in so it is much younger than other brands in Australia.
First of all, its market goal is catching the eyes of more local clients Buzz Monkey Due to the objective, it prefers new distribution channel to increase the number of customers such as using online stores instead of entity shops. For instance, it is convenient to buy the products on Alibaba. Besides that, coming from Australia may be its advantage: the culture of brand can easily attract more local people in Australia.
However, the disadvantage of Buzz Monkey is manifest as well: the size of company is so small that there is little financial support of it. For example, it cannot spend much money on advertisings, which means it could be lose some potential customers.
Finally, the rest of the marker share in Australia belongs to Buzz Monkey, the local company Euromonitor What is more, for keeping the status, it chooses to expanding total demand, protect market share and expand market share Kotleret al. During the past 15 years, it has made totally effects on remain No. To start with, increasing new customers of its products is a fabulous way to expand the total demand. According to a report, busy mothers who have to take care of their babies need more energy than the young students who study at school Alternet Because of that, V made young mothers their new target customers V-energy In addition, an effective market leader will focus on leading the industry in customer service, promotion and cost cutting to protect market share.
With regards to promotion, in , it used V-media to hold a sale programme in Sydney. Some workers assigned the free drinks to young people who were years old in some shopping malls such as Westfield in Bondi Junction V-energy Finally, expanding market share is also vital for market leader.
In general, it chooses the direct way to attack the market leader on the business battle. Speaking of the advertising strategies, Frucor Beverages Ltd, it just holds some entertainment activities to catch more young customers. However, as to Red bull, it usually sponsors big and professional sports events to enhance the brand reputation. After that, the brand awareness will be higher than before in the athletes circle.
What is more, fans of some famous athletes may become new customers of Red bull. It did some activities to copy or improve the market leader, V from Frucor Beverages Ltd. This product includes many flavors: V green with original flavor, V sugar free, V black with coffee flavor, V Not Orange with persimmon flavor and V blue V-energy With the abundant types of products, Frucor Beverages Ltd attracted a throng of shoppers.
Similarly, Coca-Cola prefers the same strategy to develop its product, Mother. Up to now, it has consisted of Mother original, Mother sugar free, Mother green storm, Mother frosty berry, Mother surge and Mother lemon bite Coca-Cola Above all, Coca-Cola should be an adaptor: it copied the idea from Frucor Beverages Ltd but added one new flavor for getting more customers.
Market nicher Buzz Monkey Companies which have small size with limited resources and mini market share are called nichers in the market. The truth is that using suitable niching strategy, these firms also can be great successful and profitable Kotler et al. Firstly, it tries to promote the low-end market.
Since , it has kept pricing policy to catch low-income groups. Nonetheless, other companies usually ignore these clients. In addition, it implements on- line selling strategy which not only can get more on-line customers, but also can avoid the serious competition in the physical stores. Kotler, P. They are product differentiation and image differentiation. Product differentiation Nowadays, there are more competitors on the market.
Thus, developing product to make it different that will attract and get more customer satisfaction. Because of this reason, Red Bull is expanding its product with more flavors: cranberry, blue berry and crimebut they sale it in the limited time Aaker Moreover, it changes its design and packing with 8 tiny cans Aaker Thatwillgivecustomersmore vary choices.
Therefore, Red Bull can gain more customer satisfaction. Image differentiation Nowadays, there are many competitors on energy drink market. By establish the image differentiation, company will be more perceived by its customers Kotler , p. By sponsoring for these events, Red Bull may communicate and build strong image to the customers.
Hence, it will gain advantage competition because of the widely known from its customers.
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