Market Segmentation of Red Bull

Don’t we all just have that urge to somehow energize ourselves in the mornings? Think about it, does anybody feel fully recharged in the morning? Well, it is a rare occasion. On most days, we wake up struggling to get out of bed, and once we do, we have to find ways to not lay back down. An effective solution to the problem is caffeine, which different people have varying preferences for. Some, for instance, find their satisfaction in energy drinks, specifically Red Bull. And thus, in the following blog, we are going to discuss the Market Segmentation of Red Bull to discover the story behind its success.

To begin with, let’s discuss the segmentation strategy of Red Bull.

Let’s watch the following commercial to make our observation more effective.

The video is from a show called “Miles Above”, which is about the team members’ skydiving adventures. In this particular clip, the guys are in Nielsen Spiez, Switzerland, and the distance from the helicopter to the ground is 2000 meters. The video is shot interestingly, from all the different angles, giving us actual insight into what it is like to jump from that height. We follow them until they land. We almost feel the adrenaline rush as they are flying.

Then the video goes on to mention one of Red Bull’s first sponsored athletes. He was one that brought many innovations to the picture, but sadly during one of his jumps, he got into an accident. And, in a way, this video is made for honoring him. Even one of the jumpers says “This one is for you”.

They’re also explaining how one of them is in charge of formation and the others have to follow him, trusting that they will end up in the right spot. The video basically ends by describing how beautiful the world is and how much fulfillment, satisfaction, and joy it can bring to people.

The main idea behind the video was the enjoyment of life. Finding the thing that makes one happy, and pursuing it. Be it an incredibly risky situation or a comfortable and safe one it does not really matter. What matters is the concept of an adventurous life. This is enough to already understand that Breakouts is the segment that Red Bull has chosen to target.

Target Audience: Breakouts

Lifestyle and values.

Breakouts value money and recognition to a great amount. They think that with being able to have a great job position that brings good earning to the picture, they will be considered successful. Even if it sometimes means cutting off time with family.

Breakouts like to be leaders in their working environment because they like being in control of everything. However, they are also great team players and are able to compromise with colleagues.

As already mentioned, money is pretty important for Breakouts because it enables them to purchase anything desired. Which makes this segment spontaneous and impulsive when it comes to spending money. Interestingly enough, they work mainly for the purpose of earning money, and less for their personal growth.

Breakouts like to be the center of attention. A good way to contribute to it is through their appearance. Therefore, they like purchasing designer goods to make them look wealthy even when it is not the case. And, for instance, if they have skipped getting a university degree, you will never know because their appearance hides it.

Breakouts are the center of their own lives. Meaning that they go for activities that bring them happiness, and enjoyment. But, at the same time, they think about the future and their worries regarding it.

The men in this segment are very masculine, with a few common mindsets such as men not crying, or men drinking strong beverages.

The idea of a healthy lifestyle is not an area of concern for Breakouts. They eat whatever they want, without looking at the ingredients that go in the food, and they do not care to exercise afterward. This segment also shows an ignorant behavior towards sustainability, for instance, they leave recycling and environmental care for others to worry about.

Attitude to shopping.

Items are more expensive when they are first released. After losing the hype, they become more affordable. Breakouts are among the people that like to wait for that affordable time. When it comes to smaller and less valuable items, Breakouts may get them just for the sake of it.

As we already know a good appearance is essential for this segment. And that makes it only fair that they spend a lot of money on clothing items. This segment will go for mainstream brands but not premium items in case they are not as affordable.

Breakouts are not ones to stick to one brand and one brand only. They like exploring other companies and finding new things that they like.

As this segment is not environmentally friendly, then understandably, no money is spent on products that would accord that lifestyle.

Interesting facts about Breakouts:

They

• Spend their free time hanging out with friends either at home or somebody else’s place
• Prefer pubs and discos in case of going out, getting drinks and socializing with people
• Are not bothered with cultural events and activities
• Are not fond of sports
• Are not familiar with the usage of technology
• Don’t enjoy traveling abroad because they are more of passive holiday lovers
• Consume media for entertainment purposes only
• Rely on TV as a source of information
• Reflexively turn on the TV right after getting home, it is even on when they are not even watching
• Use TV for listening to music, and watching shows and movies
• Read newspapers occasionally and when they do, they just skim through
• Enjoy fun events that are written in newspapers, such as celebrity gossip, other than that they like information on films, cars, and motorcycles, shopping, fashion, horoscope, etc.
• Listen to the radio every so often, with dancing music in mind

Positioning Plan of Red Bull

Red Bull has a wide range of products and a good sense of image. These are the two main concepts that the company’s positioning is reliant on.

The company has many assets that it can benefit from, one of them being its brand image. Red Bull does not fail to reach out to and sponsor different sporting events worldwide, being noticeable in spheres of physical and mental health.

The company’s slogan “Red Bull gives you wings”, is obviously not about actual wings but it has the power to be implemented in one’s mindset. The idea is that with a sip of this refreshing and awesome drink, people can conquer the world and solve challenging daily tasks.

As in this day and age, people are hustling, constantly in the move, it is important for brands to target that situation. Red Bull’s image has been built in a way to match the hectic and active lifestyle that most people maintain these days.

Red Bull’s product differentiation can be defined as a premium product with premium pricing. But there are other factors that need to be taken into consideration when it comes to premium products. Elements such as superior service and distribution.

This company is convenient with its distribution as well, targeting many people that are in all sorts of situations. From a vending machine in a grocery shop or a supermarket to a sports stadium, event venues, nightclubs, and bars. The capacity to buy products from that wide of a variety of destinations is not offered by many competitors.

The last smart move that Red Bull does is providing university students with free drinks to use at parties and social events. This is not only a way of showing personal value and care but also a more affordable and effective method of reaching market research.

And now, let’s get to discussing the Marketing Strategy of Red Bull through the Marketing Mix of the company.

The Marketing Mix is all about the analysis of a company’s product, price, place, and promotion. It is alternatively known as the 4Ps. So, let’s examine those Ps one by one.

Product:

There is another company called Krating Daeng that produces non-carbonated drinks that come in a gold short can. Krating Daeng originated in Thailand and was initially the inspiration of Red Bull. There was an idea to create a drink that had an almost identical ingredient list.

However, there were a few alterations to fit the western taste and make it carbonated. And this is the ingredient list that Red Bull came up with: caffeine, taurine, Vitamin B, sucrose, and glucose. The last ingredient is meant to target workaholics, sportsmen/sportswomen, and why not even people that simply want to party.

Nowadays, young people always like picking healthier options, and so with that in mind, Red Bull presented a sugar-free drink option. As alternatives to sucrose and glucose, Red Bull SugarFree contains aspartame and acesulfame K.

Red Bull appears in a tall blue-silver can. On the can there are two red bulls, hence the company name.

Pricing:

The energy drink industry is pretty big and competitive. Yet, Red Bull is among the leaders in the market. This makes it that the pricing strategy of this company is that of a market leader, but the pricing of competitors is considered as well.

The interesting thing about this company is that even if they decided to sell their products for premium prices, people would still be purchasing them, solely because of the good quality.

As Red Bull was the first company in this exact division, its demand is unlikely to decline.

Another interesting thing about the pricing of this company is that its drinks are more affordable when they come in bulk rather than a single can.

Place:

The distribution arrangement of Red Bull is so impressive that it has sold about 5.9 billion cans throughout the world back in 2015. As already mentioned, this company’s products are available in not only supermarkets and convenience stores, but also, night clubs, bars, and even casinos.

Sometimes, their products are put in Red Bull exclusive refrigerators making them more eye-catching for the consumers when grocery shopping or in a bar. At first glance, it does not make sense that these drinks are sold in bars and nightclubs, but they are a good addition to various beverages either for flavor or simply for staying up all night and having fun.

In the case of ordering Red Bulls online, customers are given the option of either buying a single can or an entire bulk.

At grocery stores, these products are put next to the ones of other competitive companies leaving customers with the option of picking the desirable one.

Promotion:

With a slogan as iconic as “Red Bull gives you wings”, the main target of this company is sportspeople. Thus, it only makes sense that this company sponsors major sporting events and sports teams. Among those are events such as mountain biking, motocross, windsurfing, surfing, skating, Red Bull Startos, Red Bull Foxhunt, Red Bull Cape Fear, Red Bull BC One, Red Bull Battle Grounds, and etc.

However, sports are not their main interest. They also have a Red Bull House of Art, where they allow different artists to show their work for three months straight through exhibitions.

There is also this other thing called Red Bull TV, which basically shows music festivals, films, performances, and videos on Laptops, PCs, Mobiles, and other technological equipment.

Last but not least, Red Bull offers its merchandise.

All of these promotion strategies make it that this company is noteworthy and memorable, and the customer base continues to increase.

To sum up all of the mentioned points, Red Bull is a leading energy drink company that has been around since 1987. In this blog, we talked about its segmentation and positioning strategies and finished the discussion with the company’s marketing mix. For more interesting blogs like this, make sure to visit our home page and choose from the variety.