1. The energy drink industry, largely dominated by Red Bull, is relatively new. One of the industry’s strengths is that it targets a select group of people so companies can focus their advertisements towards these people. Coca-Cola, for example, is a drink that is consumed by a wide variety of people, so their advertisements are very broad and focused on the product. Whereas, energy drink advertisements can focus on people and events centered around an active lifestyle. Another strength of the energy drink industry is the marketing strategy. The extreme sports all have something in common: the energy drink logos all over the athletes’ attire and equipment. Extreme sports athletes are exactly the kind of people that energy drinks are trying
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Several soft drinks, along with water and different juices are all more popular than any energy drink. An energy drink is more of a specialized drink that you cannot sit down and have with any given meal, whereas other drinks are consumed on all occasions. Also, there have been questions about the health risks of drinking energy drinks. The amount of caffeine and sugar in energy drinks can be harmful if too much is consumed at one time. Although there are no health risks with marginal consumption, that little warning deters a large number of people away from the product. Another weakness would be that the price is too high for some customers. When people are looking for the best deals to stretch their dollar, energy drinks are not in the budget, as there are less expensive …show more content…
Even if one hundred percent of the people they are targeting are loyal to Red Bull, they are not maximizing their profit and cultural influence. Red Bull should look to sponsor athletes in other sports, specifically soccer as it has the largest audience in the world amongst all sports. In order to expand from being a “luxury and sports drink,” Red Bull must make some changes to their product. First of all they would need to lower the price, which currently suggests that it is solely a luxury drink. The price would need to be lowered to the price of drinks in which people consume on every occasion. Also, they would need to change their marketing scheme to prevent being labeled as a sports drink. Red Bull would need to focus their advertisements around a lifestyle rather than around a particular sport that fits a certain lifestyle.
3. The use of technology could help Red Bull reach customers and gain market share because technology is a major part of people’s lives in present times. The use of technology would allow Red Bull to reach more people than they ever have before. For instance, the way Red Bull has begun to start using Twitter as a marketing tool is the kind of innovation they need to continue to expand. Red Bull should look to other social media as well, and even possibly create an app that gives discounts and promotional
Several soft drinks, along with water and different juices are all more popular than any energy drink. An energy drink is more of a specialized drink that you cannot sit down and have with any given meal, whereas other drinks are consumed on all occasions. Also, there have been questions about the health risks of drinking energy drinks. The amount of caffeine and sugar in energy drinks can be harmful if too much is consumed at one time. Although there are no health risks with marginal consumption, that little warning deters a large number of people away from the product. Another weakness would be that the price is too high for some customers. When people are looking for the best deals to stretch their dollar, energy drinks are not in the budget, as there are less expensive …show more content…
Even if one hundred percent of the people they are targeting are loyal to Red Bull, they are not maximizing their profit and cultural influence. Red Bull should look to sponsor athletes in other sports, specifically soccer as it has the largest audience in the world amongst all sports. In order to expand from being a “luxury and sports drink,” Red Bull must make some changes to their product. First of all they would need to lower the price, which currently suggests that it is solely a luxury drink. The price would need to be lowered to the price of drinks in which people consume on every occasion. Also, they would need to change their marketing scheme to prevent being labeled as a sports drink. Red Bull would need to focus their advertisements around a lifestyle rather than around a particular sport that fits a certain lifestyle.
3. The use of technology could help Red Bull reach customers and gain market share because technology is a major part of people’s lives in present times. The use of technology would allow Red Bull to reach more people than they ever have before. For instance, the way Red Bull has begun to start using Twitter as a marketing tool is the kind of innovation they need to continue to expand. Red Bull should look to other social media as well, and even possibly create an app that gives discounts and promotional