Marketing strategy of Red Bull

Essay by taheijweUniversity, Master'sA+, January 2004

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How should Red Bull market its brand in the future? I think, although Red Bull has been extremely successful in the past, times have changed and we should change with it, otherwise we probably lose market share to the tremendous increased number of competitors in no time. My conclusion is that we should focus more on older consumers and different market segments, than we do now.

Red Bull always marketed its product to appeal to a broad range of consumers and to be appropriate in a variety of usage occasions. But the vast majority of Red Bull's business still comes from the youth market (Red Bull used as a mixer in bars and nightclubs). And this is the big issue, because it is easy to lose market share to other mixer beverages, like competitive energy drinks or sodas in bars and nightclubs. I am sure that people are less loyal to Red Bull as a mixer beverage than to Red Bull as a pure energy drink.

A mixer is 'just' a mixer and easy replaceable, but an energy drink (that really works) is exclusive. That's why Red Bull should be regarded as much more than a mixer beverage. Of course it is very pleasant that our product is sold massively as a mixer, but we can lose this position so easily, which would result in a dramatic decrease in sales. So apparently, in the marketing program of Red Bull, there is too much emphasizing on the youth market and the mixing business, which extremely under valuates the image and competitiveness of Red Bull.

Until today, our brand strategy has been very successful. Red Bull is known for its nutritional quality, especially in mature markets. In the youth markets, the product is very much a status symbol. The slogan 'Red Bull...