Energizing Red Bull - Essay Example

?ENERGIZING RED BULL Introduction The “Red Bull – The Anti-Brand Brand” case showcases the strategic and global growth of energy drink, Red Bull. Discovered in Asia by Dietrich Mateschitz as a drink to boost factory productivity in 1982, the drink became a household name by 2003 with sales in more than 100 markets and a market share of 70%. Being a pioneer in energy drinks segment, Red Bull is an innovative product that tactically filled a gap in the market that only had coffee or natural juices as alternative options for energy. Red Bull, a compund mixture of taurine, caffeine and glucuronolactone, claimed to boost metabolism, improve performance, increase concentration and reaction speed, and increased endurance. Red Bull attained operational excellence by having decentralized sales and distribution channels, making sure that the product was accessible and available at all times. The brand created high barriers to entry by making sure there were “exclusive” partnerships with strong distributors. The sales teams helped generate an aura of “exclusivity” by handpicking initial distributors and deliberate limiting of the supply (Hein, 2001). The case further remarks the marketing stragies adopted by Red Bull across the globe, its key messages, campaigns and endorsements, that will be described in the next section of this paper. As expected in any industry, a growing market always attracts competition. In 2004, Red Bull faced intense competition from giant brands such as Coca-Cola and Pepsi who were developing their “health drinks” business and from private lables across the market. Currently, the top competition for Red Bull is from Monster, Pepsi and Suntory (Yahoo Finance, 2012). It is seen from recent reports that the market share of Red Bull slipped to 40% in 2010 (Privo, 2010). The following write-up describes the marketing & communication strategies that Red Bull shouls adapt in order to rebrand its image and increase its sales to fight competition. Media Strategy Adopted by Red Bull in the case Key Customers & Customer segments The key customers for Red Bull were Generation Y-ers (18-29 year olds) who were the main consumers of “extra energy” projects. Previously, these customers looked out for products (sometimes illegal) such as alchohol to provide them the extra thrill in their lives. Within the young adults customer group, Red Bull segmented them further to customize their promotional activities with respect to their needs. These segments are: Club-goers: All party-loving people who love a vibrant nightlife, like to dance and drink. These customers were the major consumers of thrilling vodka-red bull mix. Outdoors enthusiasts (Skiers, Skate-boarders): Outdoors enthusiasts such as skiers, snowboarders wanted Red bull to keep their energy levels high during their expeditions. Extreme Sports & Action games lovers: Lovers of extreme sports and action games such as racecar, bike racing and skydiving etc. also consumed Red Bull with zest. Hardcire Music fans: Music fans that regularly attend music festivals, rock concerts and other music gatherings were also users of energy drinks as Red Bull. Students: Students who needed extra energy during their exams and university classes were another segment of Red Bull consumers. Product Positioning The manufacturers of Red Bull created an innovative niche for itself by positioning the product as a different, cool and rebellious product, which is available at a premium. Dietrich Mateschitz deliberately separated Red Bull from carbonated drinks (soda), juices or coffee. (Joyner, 2011). Key Messages & Brand Positioning The brand positioning and key messagers were derived from out of the product benefits and after-effects: Red Bull vitalizes body and mind. This key message became the nucleus of all promotional activities surrounding Red Bull with brand attributes as innovative, rebelling, self ironic, intelligent, nonconformist, self-confidence, mysterious, witty, charming, polarising and unpredictable. Red Bull’s tag line “Red Bull Gives You Wings” was a clever proposition that used its brand attribute and reflect it’s flexible enough to free your imagination and not handcuff creativity (Economic Times, 2012). The brand positioning of Red-bull as a mystique energy drink was clear, engaging, unique and relevant to its target customers. There exist an element of emotional attachment with the brand, something that makes you feel better and free-spirited. A brand image was shaped and nurtured which related the drink with youth culture and extreme and adventure-related sports, such as motor sports, mountain biking, and snowboarding and dance music. Red Bull's target consumers started to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus, spreading its 'left-field' appeal and adding to its mystique. Logo Aligning with the key messages, Red Bull logo was designed to potray body and mind vitality. The logo, depicted by two thick-necked crimson bulls opposing charge against a yellow sun was the embodiment of strength and aggression. A study published in the Journal of Consumer Psychology found that the consumers exposed to the brand or logo alone displayed characteristics associated with the brand, meaning that the brand logo alone could make the consumers feel that they had wings to fly (Brasel & Gips, 2011). Media Adopted For its advertisements, Red Bull used its product attribute of “creativity and innovative” and hence, avoided the typical means of marketing, focusing more on what is called 'buzz marketing' or word-of-mouth. It used all forms of media such as print, online, television, billboard and now, social media to spread its key messages. Its media list included – Print (Full page magazine, half page magazine, posters), Outdoor (Billboards, Transit shelters, Telephone pole), Ambient (Bus wrap, Stairs), Point of purchase (Floor Decals, Shelving Ads, Convenience Store), Promotional – corresponding materials (5K race, Community cleanup, Video Competition), Web (Banners, Promotional pages, Email coupons, Social Media) and Video games. Promotions & campaigns Sponsorship of Extreme Sports & Youth Culture Events Red Bull sponsored a number of extreme sports events such as BMX biking, kite boarding, extreme snowboarding, freeskiing, paragliding and skydiving. In 27 years since its establishment, Red Bull has been able to have brand goodwill with adrenaline-filled sports. Sports – Red Bull association has become so strong that the term Red Bull is ambigiously used for the drink, world championship winning F1 team, the company’s spectacularly dangerous-looking air-racing series, or the rash of other extreme sports events to which it lends its name (Financial Times, 2011). Similarly, Red Bull has been organizing music events for pop music and electronic music lovers. Its Red Bull Music Academy has held several series of music workshops and festivals since its inaugral event in Berlin, 1998 (RBMA, 2011). The well-received academy also produces music videos, newsletters and lecture series. Hitting the Streets Red Bull, has done a number of creative and eye-catching campaigning on the streets, such as driving red bull cars with giant red bull cans at the back across the city, endorsements by local DJs, product placements in video games such as Playstation racing game Wipeout 2097. Free cans of the drink were also handed out to people on the street who were identified as being in need of energy. Regular use of pickups trucks as mobile displays was pioneering concept by Red Bull. Student Brand Managers Targeting the university audience, Red Bull employed “Student Brand Managers” to promote, sell and market Red Bull in their campuses. The scheme offered students with free cases of Red Bull and supported them to throw Red Bull parties and conduct viral marketing. Student Brand Managers, usually university trendsetters or popular kids, also became sources of market research for the company. Red Bull Online Red Bull has used the power of social media well in advance to create online buzz for its products (HARBISON, 2011). Red bull has also moved into e-business with its energy drink by introducing a new service on the Internet to sell sportswear especially on the various sports in which it is associated or engaged. Mass-market advertising strategy – Proposal This section describes the advertising strategy for Red Bull to appeal to the mass market. This includes: a) Re-creating the brand personality of Red Bull b) Creative brief for the adversisement and c) Style of creative advertising and communication message. Re-Creating the brand personality of Red Bull The case describes that in 2004 Red Bull is an intersection of growth. The market it has so carefully cultivated is now threatened with new entrants and is facing intense competition such as Anheuser-Bush (eg. 180), Carlsberg (Battery), Cadbury-Schweppes (Venom), Monster, Coca-Cola (Burn and KMX) and Pepsi (Amp). The best way Red Bull can conserve its sales are either sell more Red Bulls to the same customers (increase consumption) or broaden the market i.e. add new customers. This write-up analyzes the latter scenario where Red Bull becomes a more mass-market product and appeals to a broader base of target audience. The primary goal in achieving a broader customer base is to re-brand an existing niche product so that each consumer can relate to it. In my opinion, even though the key message of the product remains the same – Red Bull vitalizes mind and body, however the focus towards youth needs to be diluted. Red Bull is hence branded as an energy-boosting portion – an extension of your food nutrients. The target audience would be customers who seem to be in need of energy such as: Working Women: It is a known fact that professional women have additional amounts of stress as they balance their profesional and personal work demands at bay. This dual work increases their energy demands and often takes a toll on their health (World Bank, 2000). Our re-branded Red Bull will target the women audience by focusing on energy-boosting communication messages. Over-worked executives: Our other target segment is over-worked executives in occupations such as investment banking, consulting and entreprenuerial start-ups with average working hours ranging around 100-120 hours per week. These executives normally depend on coffee to keep their energy levels and concentration levels at their best. Red Bull can hence be branded as a substitute of coffee – with lesser amounts of caffeine than coffee itself. Key attributes of the new Red Bull are: Energy Revitalizing Dynamic Liberty Recharge Creative Brief for the advertisement The advertisements will be focused on the needs of our two identified target audiences – profesional women (with high family responsibilities) and overworked executives (both men and women). Brief 1: The advertisement will show a tired looking female running from one meeting to another, then running to take kids (son and then daughter) to soccer practice and then to swimming lessons. Upon reaching home, she prepares dinner, puts kids to bed and then collapses on the bed before her husband has time to have some moments together. A contrast scenario is made where a dynamic professional woman working in a high profile job, goes from meeting to meeting, to kids schools and prepares housework with equal zeal and energy. She then opens the back of her car that has 6 cases of Red Bull present in it. Brief 2: An investment banker working 18 hours a day in front of computer, talking to clients, attending meetings, managing teams and dealing with his boss. Having tons of coffee or cigarette breaks has given him a health scare. During his performance review, as a bonus package, the investment banker gets a yearly supply of Red Bull. Style of creative advertising and communication message The style of creative advertising has to be bit different than what Red Bull traditionally has been doing ie viral marketing etc. Professional women and over-worked individuals do not usually have time to look into blogs, follow an opinion leader or attend events. However, they are strongly influenced by their peer network. Therefore, style of creative adversing should be word-of-mouth and extensive television and print campaigns. Humor would be the underlying mode of campaigns, as adverts satarically convey the message of lack of energy within people. There are a number of communication messages that are recommended to pitch during the re-branding communication campaign: First, Red Bull can refurbish mental awareness and energize a super busy, independent individual with a demanding life. The message is about the basic purpose of the Red bull beverage, with respect to the core added value supplied by Red bull. Second message is that Red Bull is an effective, better tasting alternative for other caffeinated beverages, and it includes all natural elements. With comparison to other caffeinated beverages, the message can express the relative benefits that can be branded as additional value for money. Third message is the Red Bull is that the product is especially beneficial and appealing to women. Works Cited World Bank, 2000. Improving Women’s Health. HNP Discussion Paper. Washington DC: The World Bank. Yahoo Finance, 2012. Red Bull GmbH Company Profile. [Online] Available at: http://biz.yahoo.com/ic/101/101316.html [Accessed 25 March 2012]. Brasel, S.A. & Gips, J., 2011. Red Bull ‘Gives You Wings’ For Better or Worse: A Double-Edged Impact of Brand Exposure on Performance. Journal of Consumer Psychology, 21(1), pp.57-64. Economic Times, 2012. How energy-drink brand Red Bull is charming audiences across the globe. [Online] Available at: http://articles.economictimes.indiatimes.com/2012-02-01/news/31012783_1_red-bull-ad-commercials [Accessed 25 March 2012]. Financial Times, 2011. Red Bull: Where marketing goes into overdrive. [Online] Available at: http://www.ft.com/intl/cms/s/0/8733b030-de30-11e0-9fb7-00144feabdc0.html#axzz1q6K5D8LB [Accessed 25 March 2012]. HARBISON, N., 2011. Red Bull’s smart use of social media and branded content. [Online] Available at: http://thenextweb.com/socialmedia/2011/08/27/red-bulls-smart-use-of-social-media-and-branded-content/ [Accessed 25 March 2012]. Hein, K., 2001. A Bull's Market - the marketing of Red Bull energy drink. [Online] Available at: http://findarticles.com/p/articles/mi_m0BDW/is_22_42/ai_75286777/?tag=content;col1 [Accessed 25 March 2012]. Joyner, J., 2011. Red Bull’s Billionaire Maniac. [Online] Available at: http://www.outsidethebeltway.com/red-bulls-billionaire-maniac/ [Accessed 25 March 2012]. Privo, 2010. Red Bull GmbH. [Online] Available at: http://www.privco.com/private-company/red-bull-gmbh [Accessed 25 March 2012]. RBMA, 2011. Red Bull Music Academy. [Online] Available at: Red Bull Music Academy [Accessed 12 March 2012]. Read More