Cherry Flavored Red Bull - Essay Example

Cherry Flavored Red Bull. Marketing Analysis Inserts His/Her Inserts Grade Inserts Outline Introduction 2. Marketing Environment 3. Product Segmentation 4. Product Description 5. Current Target Market 6. Marketing Opportunity 7. Proposed Product 8. Pricing and Distribution 9. Product Promotion 10. Conclusion 11. Questionnaire Introduction Red Bull is regarded as one of the most recognizable brands in the UAE. The marketing and advertisement policies of the Red Bull GMbH are unique, therefore, the branding principles, supported by the company, deserve special attention. As for the UAE office, Ewbank and Foulger (2010) emphasize that it is one of the most successful departments of the Red Bull GmbH due to extreme sports activities and performances held in Dubai. The Middle East department was opened in 2001, and, regardless of the reluctant acceptance of the product by the domestic citizens in the beginning of the UAE Red Bull history, the company was doomed for success. This phenomenon can be explained by the fact, that people mostly like extreme sports, as adrenaline is the international language of the Red Bull’s target audience. As a multinational company, Red Bull GmbH is aimed at popularizing active and healthy way of life, as the beverage is often regarded as an indirect competitor for beer and other alcoholic beverages (Muris, Scheffman, and Spiller, 2007). Marketing Environment Political environment in the UAE is quite favorable for the effective marketing and branding policy of the Red Bull GmbH. The progressive government supports business development, and encourages multinational trade. Economic environment is featured with high competition rate, as there are several energy drinks brands. On the other hand, the existing competitive environment is beneficial for every company, as the sales usually increase during Air Races, or x-fighters performances. Social perspective of the marketing environment is unique. In fact, the conservative Arab culture reluctantly accepts energy drinks; nevertheless, the youth is fascinated with the idea of staying fit and full of energy. Sport performances improved the existing tendency, and helped to conquer the target audience. Technological issues of the environment are the least important, since there are no manufacturing powers in the UAE. Product Segmentation The key segmentation strategy for cherry flavored Red Bull in the UAE is associated with the necessity to hit wider target audience. It is often emphasized that flavored drinks are often intended for female audience, as aerated beverage with coffee taste is not a universal solution that everyone likes. In the light of this fact, the segmentation variables are as follows: Price. The same as for a traditional Red Bull. Location. Bars, cafes, performance grounds. Income. Average and above average. Age. 18-30. Education. High school. Occupation. Office workers, students. End use. Performances, overnight parties, cafes, cars, office halls. The segmentation strategy is oriented at active youth, people who pretend to have a life aim, and who like entertainments without taking drugs, drinking, or even smoking. Product Description Cherry flavored beverage is not a unique product on the market of energy drinks. However, in accordance with marketing researches (Mentz, 2006), cherry flavored drinks are regarded as the most attracting on the market of soft drinks. The production sizes are standard: 250, 355, and 473 ml. Moreover, in accordance with the audience targeting principles of the company, cherry flavored Red Bull is intended for drinking it everywhere, in distinction with the traditional product, created for active way of life. Additionally, the stylish look of the can should emphasize the good taste of a person. The ingredients are: caffeine, taurine, glucuronid, B vitamins, glucose and sucrose, water, and aromatizers for cherry flavor. Red Bull is supposed to be a harmless beverage, and the company is interested in numerous researches that confirm this statement. Therefore, the product positioning strategy is based on scientific and medical researches. Current Target Market Geographic variables of the target market segmentation are not relevant in the UAE, as the key stake is made on sales in Dubai during extreme sports performances. This is explained by the fact that the target audience reaches its highest concentration during these events, while seasonal sales depend on the efforts of the animators in hotels and nightclubs (this means, if the parties or shows worth attention, people wish to energize, and buy energy drinks). Consumer behavior variable is associated with the activities arranged for the target audience. These are mainly performances and promo actions, however, admirers of Red Bull consume it regardless of the event calendar. In fact, in accordance with some researches (Ewbank and Foulger, 2010), cherry flavor is intended to stop disputes concerning the real taste of Red Bull. Most people find it unidentified, and even disgusting, as aerated beverage with a coffee taste is not the best taste solution. Marketing Opportunity The key variables for marketing opportunity analysis in the context of promoting cherry flavored Red Bull are society, economic situation, as well as threat of substitute products. Society is rather conservative for promoting energy drinks, however, the UAE is the state with millions of tourists who are also regarded as the target audience. The high tourist potential of the UAE may be considered as an excellent marketing opportunity, therefore, it should be stated that the company stakes mainly on those tourists who arrive for extreme show performances that Red Bull GmbH arranges. Economic situation creates an excellent opportunity for extending the vending network. Moreover, it improves the overall economic health of the UAE, and that attracts at least 10% more of the tourists each year (Mentz, 2006). As for the possible threat of the substitute products, it should be stated that the actual situation is linked with the necessity to expand the consumers’ awareness of the brand for increasing the sales level, and attracting audience for performances. Anyway, other brands do not have such a powerful promo campaign, and that helps Red Bull GmbH improve its marketing positions. Proposed Product The offered product – Cherry Flavored Red Bull is intended to fill the niche gap of flavored energy drinks. Red Bull is not consumed for its taste mainly; however, in accordance with numerous researches people would like to feel a more pleasant flavor, similar to well known soft drinks. Product launch should be attached to a start of any sports event. Hence, Dubai Red Bull Air Race stage is the most popular performance in the entire event calendar; therefore, the promo should be arranged among the visitors of the performance. Pricing and Distribution The pricing strategy for the new product should not differ from the prices of a traditional product. This will help to equalize the attractiveness of the product for the entire target audience, as well as solidify its marketing positions. The distribution strategy should be closely attached to the event calendar full of such events as performances and parties, quiz games, as such entertainments help to increase the sales rate of Red Bull and other energy drinks. Additionally, the product will be distributed through the vending networks that will supply it to supermarkets, hotels, stadiums, etc. Product Promotion Advertising and publicity are the most effective promo channels for Red Bull (Muris, Scheffman and Spiller, 2007). This can be explained by the fact that it is generally consumed in a company, during a performance or a party, where people gathering is observed. Therefore, Red Bull can be regarded as a beverage of a certain atmosphere. The aim of the promo campaign is to create the corresponding atmosphere that will improve people’s mood. The audience should feel that high energy is in the air, and this can be achieved by spectacular extreme performances, attractive promoters (girls and young men), red bull colored equipment and machinery (cars, planes, parachutes etc). Conclusion Cherry Flavored Red Bull is intended to extend the existing product line, and attract additional target audience. Since the traditional taste is a solution that is intended for all the consumers, the cherry flavor will offer the necessary market segmentation for making the marketing positions of the brand firmer. In accordance with the marketing analysis, as well as regarding the key segmentation variables, it should be stated that the rebranding strategy that involves adding another flavor, will correspond the existing promo strategy better, since cherry flavor will extend the choice, and improve the consumers’ awareness of the brand. Questionnaire 1. Do you know Red Bull Contents? Do you think it is an alcoholic beverage? 2. How often do you need to energize yourself? a. Several times a day b. Once a day c. Two or three times a week d. Once a week, or less 3. What are the key reasons of energy lack? a. Lack of sleep b. Boring assignments and tasks c. Atmosphere 4. Do you prefer energy drinks, or any other way of energizing yourself? 5. When did you taste Red Bull first? 6. Have you heard of the extreme performances and competitions arranged by Red Bull? 7. Which do you like most? a. Red Bull Air Race b. X-fighters c. Cliff jumping d. Other e. None 8. List associations that arise in your mind when you see a Red Bull can 9. Would you like to get newsletters about extreme sports events arranged by Red Bull? 10. Do you drink red bull alone, or in a company of friends? 11. Would you like to see and taste other red bull flavors? If yes, what exactly? Reference List Ewbank, A. D., Foulger, T. S. (2010). Red Bull, Starbucks, and the Changing Face of Teacher Education: Colleges of Education Should Be Leading the Way in Using the New Social Media for Education. Instead, They Just Dont Get It. Phi Delta Kappan, 92(2), 25 Mentz, S. (2006). The Revengers Tragedy: Presented by the Red Bull Theatre at the Culture Project, New York, New York. Shakespeare Bulletin, 24(3), 100 Muris, T. J., Scheffman, D. T., & Spiller, P. T. (2007). Strategy, Structure, and Antitrust in the Carbonated Soft-Drink Industry. Westport, CT: Quorum Books. Read More