Consumer Behaviour - of Redbull - Case Study Example

? Redbull Case Study questions 20-3 What segmentation base has Red Bull adopted to target s? How should Red Bull further segment the market in the future? The company has spent millions of dollars on its strategy of guerrilla marketing that started from word of mouth driven advertisement and then moved on to the high cost sponsorships. Red Bull, being an energy drink has a naturally defined consumer based. By age limits, the company targets 16-29 year olds while profession wise, the company focuses on those who are working in tough environments to prove their product to be a facilitation and a method of regaining their energy. Through the marketing strategy of employing thrill into the advertisements, the company targets the young generation to consume the drink as a supplement to the adrenaline inducing sports. Such market segmentation has allowed the company to merge its natural consumer base with its targeted market. In the future, Red Bull’s most beneficial marketing strategy would be to segment the market based on consumers and innovation specifically rather than brute sponsorship based advertisement. Targeting a behavioural segment that is divided in to the groups of those who regularly, for example, go to gym or those that work in tough environments in the same age limits; it would be wiser, as per Walker’s (2006) research, to spend more marketing funds on those who are behaving in a more favourable way to consume the product. For example a 20 year old who goes to gym is more open to Red Bull’s advertisements than a 20 year old who works in a print shop. By specifically targeting behaviour based market segments, Red Bull’s future marketing can further be optimized in line with the company’s current policy without interfering with other policies like those of thrill based advertisement. How does Red Bull arouse the motivations of consumers to purchase its energy drinks? Red bull uses Murray’s biogenic and psychogenic theories of needs to present the advertisements and brand itself. To arouse the motivations to buy the product, through the theory, the red bull implies that the need to use the product already exists. As described by Michael at. al (2011), Red Bull’s implication that the company is only facilitating the need to buy the product arouses significant motivation in the consumer base to use the product as an energy drink. Starting from distributing free cases of the energy drink at gyms, schools and different buildings where they could find their consumer base, the Red Bull started with a viral advertising policy. The success of the viral advertisement resulted in rapid growth in sales. The motivations of consumers were based on their own needs, or their own needs as shown by the company. The need to re energize at work, gym, construction sites and other advertised areas has shown to be a consumer need by the Red Bull and often the Red Bull consumers are compared with non consumers in advertisements. The comparison often either implies the lack of energy in the individual and the inability to perform properly without re energizing or shows extra abilities in the individual consuming the product. The moto “No Red Bull, No Wings” clearly backs up this concept. Furthermore, by sponsoring highly thrilling race competitions, both on air and ground, the motivation to use the product is further aroused in the consumer base, both psychologically and as a way to try the product for the new consumers by creating a ‘buzz’. Describe the Brand Personality of Red Bull. Why do you think the concept of brand personality is so important to Red Bull? Being an energy drink aimed at the youth, Red Bull has developed a bold brand personality of a strong bull as depicted by its logo. The brand personality of the energy drink implies the traits of the type of boost it claims to give the consumers; strength, energy, physical resistance, quicker reaction time and improved mood. Giving an emotional character and association to the brand’s image, the company has devised a strategy based on image and personality of the brand and its consumers. The type of cascading effect Red Bull has on its consumers also implies a certain personality of them. This means the brand personality of the product is very important to the company. Boonsong (2003) reports Dietrich Mateschitz’s own personality to be influenced by the brand personality of the energy drink to an extent. Hindustan Times (2011) reports that the brand personality of the product consistently ‘nudges’ the consumer towards the product in line with the brand’s image. The report also explains how the brand identity of Red Bull has an aggressive trait with respect to the brand sponsored car racing. The Red Bull sponsored drivers are said to have pushed very aggressively towards achieving the top position and either doing extremely well with that effort or ending up in a wrecked car. The two extremes achieved by the Red Bull drivers also depict the brute force and aggressive traits of the brand personality. As such, the aggressive traits of the brand personality have been used in their positive aspects by the marketing campaign. Although the report claims to that the product advertisers might not have been aware of the extent to which the brand personality influences the consumers and how it can go out of their control and become self aware as a group of consumers and sponsored individuals (race drivers and pilots), the overall result seems to have been further developing the brand image of the product in favour of the company. According to Sharon Ward, the brand personality of the has a unique importance of the brand personality concept for Red Bull can not be ignored. The individuality and innovation on par with non conformism and confidence, as suggested by the source, goes with the advertisement campaigns of the company. The high priced sponsorships by the company of flying races and car races supplement the aggressive and energetic brand personality of the product. Furthermore, the implication that the brand personality cascades on to the consumer base and shows their own personality drives the Red Bull marketing campaigns not only by the ‘push’ from the company’s side but also the ‘pull’ from the consumers who want to incorporate the brand personality into their own due to popularity of the product. References Michael R. Solomon, Judith L. Zaichkowsky & Rosemary Polegato (2011). Consumer Behaviour: Buying, Having, and Being, Fifth Canadian Edition. Toronto, ON: Pearson Education Canada. Walker (Jan 1, 2006). Marketing Strategy 5E. Tata McGraw-Hill Education pp. 140. Print. Boonsong Kositchotethana (August 29, 2003). Austrian Marketing Mogul Puts Stamp on Thailand's Original Red Bull Drink. Bangkok Post (Bangkok, Thailand). Periodical. Newswire (February 1, 2011). Just the Red Bull logo 'can give your performance wings'. Hindustan Times (New Delhi, India). Periodical. Sharon Ward (May 7, 2000). Grabbing the drinks market by the horns. The Sunday Herald. Periodical. Read More