Red Bull Marketing/Segementation/Pricing Essay

3951 Words Jan 30th, 2013 16 Pages
You are asked to address the following questions:
1. Who are the principal target segments for Red Bull and how are they positioned towards these target segments?
2. Analyse the Red Bull brand using any frameworks you judge appropriate.
3. Comment upon Red Bull’s pricing approach
4. Evaluate Red Bull’s distribution channel strategy
5. Would you describe Red Bull as a national, a European or a global brand – give reasons?
6, What marketing strategy would you recommend that Red Bull should adopt over the next 5 years?

Who are the principal target segments for Red Bull and how are they positioned towards these target segments?

Red Bull has an aggressive international marketing campaign that targets young males. These customers
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People talk, and if the topic is hot and controversial, even more. Red Bull is aware of this and heavily relies on “the word of mouth”. Since the very beginning the brand has had bad press mentioning the danger of consuming this product and the fact that Taurine (a component in Red Bull) was extracted from the genitals of bulls, giving the product “aphrodisiac” attributes (this was also posted on Red Bull’s website). The buzz this created, and the fact that the product was not easy to find, gave the Red Bull brand its original mystique that still remains today.
Strategy (work in to this question)
3. Comment upon Red Bull’s pricing approach
Red Bull’s pricing approach is to set the price at a high level. The pricing given in the article ranges from €2-€6 depending on the point of purchase (either retail or in a bar/night club). Red Bull are not alone in charging a higher price for their product, the majority of producers in the energy drinks sector also charge a premium. This is shown in the in the table below where the price of energy drinks is compared to a close substitute, carbonated soft drinks: (Mintel, 2011)
Since 2004 the consumers have paid an average premium (per litre) for energy drinks of 66.29%. They are willing to pay this premium as they perceive that energy drinks provide unique benefits (i.e. an energy boost) when compared to substitutes.
“While energy/sports drinks charge a premium

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