MyAssignmentServices uses cookies to deliver the best experience possible. Read more

Consumer Behaviour and Marketing Psychology

Executive Summary of Red Bull Energy Drink

This report is an extensive analysis of the marketing operations of Red Bull energy drinks. It lays prominence on different factors related to marketing such as motivation, culture, family, attitude, perception, social class and decision-making processes. It is built upon the previous two assessments and draws the findings to present the final set of recommendations for the product and organization. It is evident from the report that the product targets the customers falling between the age of 18 to 35 and it majorly targets the male customers. It especially targets teens and young adults and mostly male customers. The report proposes a valid set of recommendations that iterate around its product diversification, enlargement of the target customers, improvement of the contents and improvement in the sustainability policy.

Overview of The Market Performance

Red Bull energy drink is sold by Red Bull GmbH which is an Austrian company. This product is available in a single non descript flavor and is sugar-free. Ed Bull energy drink has an average caffeine content of around 80 to 40 mg per 250 ml (Cornil et al. 2020). However, it is dependent upon the brewing method and country of production. This is so because, with each country, the legal restrictions regarding the addition of caffeine are different. This product is marketed with the tag line "Red Bull gives you wings". This slogan has been implemented by the organization since the year 1997. Its advertisements were also substituted with the slogan "No Red Bull, no wings". Employment of this slogan is a strategic approach for mass marketing. The product has been successful enough in creating a brand myth.

Red Bull also launched the fellowship program known as the Red Bull House of Art with the aim of creating new artwork and displaying in a final exhibition (McCarthy 2017). Red Bull energy drink is marketed by the organization by adhering to a large number of extreme sports event series involving Red Bull Air Race, Stratos space diving project, Red Bull Cliff Diving World Series and Red Bull Crashed Ice. The product has also indulged in a number of sports team ownerships such as Red Bull Racing and Scuderia AlphaTauri, FC Liefering, New York Red Bulls, football clubs RB Leipzig and Red Bull Brasil (Cornil et al. 2020). With the help of its record label Red Bull Records, it has been effectively communicating itself to the wider market. In the year 2014, it was reported by the organization that the sales of Red Bull energy drink in Australia peaked up to $199.6 million, sustaining an increment of around 3.5 per cent.

Examining the Current Marketing Mix

Effective utilisation of the marketing communication mix is one of the key strategies adopted by Red Bull as a source of its competitive advantage. The company has excelled in associating the consumption of Red Bull with improved physical as well as mental performance leading to an adventurous and active life. It integrates its online television marketing practices which involves targeting the customer segment indulged in sports and requiring enhanced physical performance. Different magazines also cover the topic of lifestyle, culture and sports indicating the movement of the brand to target the segment. The organisation also owns a set of sports teams involving Red Bull Salzburg, New York Red Bulls and many more. It also employs a team of 150 people for its media strategy and crafting content marketing (McCarthy 2017).

Red Bull’s Strategy

Red Bull has adapted international marketing campaigns for targeting the young men especially those indulging in the extreme sports. The company practices its marketing strategy by sponsoring many sports events that range from Motocross and snowboarding to skating, freestyle and mountain biking. It also supports extreme sports players and intelligence and the live broadcasting of the sports on television and YouTube. It has become the concept of extreme sports because of its slogan (McCarthy 2017). It is also sponsored by many music festivals and other events and has created an image on the basis of its powerful passion at different festivals. It has also been representative of different types of music festivals such as Ultra music festival and World DJ Festival in Korea.

The organisation has adopted media and the print media as the strategic tools for the marketing of the Red Bull energy drinks. It effectively integrates the digital media platforms, television and the print media for advertising. It offers advertising opportunities on B2B basis which is an additional source of revenue. It efficaciously integrates with supermarket chains, retail outlets, grocery stores and restaurants for its promotions (Cornil et al. 2020). It offers coupons in different variants such as Woolworths and Sainsbury for purchasing Red Bull at a reduced price at the occasional custom. It comprehends the intense competition in the market in the energy drink sector henceforth, considering the intense competition; it episodically offers different prices for the customers. Some of its marketing campaigns involve 'can you make it'. In this, the individuals were asked to visit different destinations in Europe with 24 cans of Red Bull and without a mobile phone, cash and credit cards. Different points of sale are used by the firm and hence, energy-efficient and innovative (Bremser et al. 2018) Red Bull fridges are introduced. It also has built the loyalty program where it connects with the customers and allows the fans to collect energy and exchange it for the prices of Red Bull energy drinks.

Red Bull makes use of a mono-segment type of positioning strategy for appealing to the customers. It mitigates the customers on the basis of their personal and professional life and especially the customers who are interested in extreme sports. Its target market involves the customers falling between the age of 18 to 35 and it majorly targets the male customers. Its special target is teens and young adults and provides free samples as well in the coffee shops, clubs, bars and gyms so that the customers get a tint of the product's quality (Buchanan et al. 2017). In terms of psychological segmentation, it targets the middle and upper-class segments. It targets the culture and family of the customers by acknowledging the needs of customers and sponsoring different music festivals and creating a top-notch cultural content wherein the target markets can be easily approached. It effectively comprehends the social class and understands the busy and active lives in terms of professional and personal works and henceforth, it intends to boost energy among individuals who are overly active and fascinated by the sports activities.

Alignment of The Findings with The Communication Mix

As per the findings of the previous assessments, it is clear that the customers buy the products also because of the brand value as they have trust in the brand name and its limited caffeine composition. The analysis also reveals that on 45.4 5 per cent of the respondents buy the product because they had a positive and great encounter with the previous shopping experience which prompted them for repeated purchasing. It is in alliance with the marketing communication mix of the organisation as it is completely relied upon the organisation’s effective marketing for targeting customers in such a way that the repeated purchasing behaviour is accelerated (Buchanan et al. 2017). On being asked about why customers buy this product over the other energy drinks available in the market, 42.42 per cent of the customers lay emphasis on the mark whereas 33.36 per cent to the customers stress on the quality of the product and fundamentally lay prominence on the brand value and its performance as a major deciding factor.

Most of the customers are driven by the structure and quality of the product. The findings reveal that 46.88 per cent of the customers got to know about the product through the advertisements which are directly associated with the strong media presence of the brand. When the customers were asked about the royal wedding the hole towards the brand and the drinks, 60.61 per cent of the respondents agreed and stated that they are willing to purchase the same product in future as well. It aligns with the communication mix of the organisation as it effectively captures the loyalty of the customers by providing them with good quality products at reasonable values. Since the organisation frequently comes with different pricing options and offers coupons which allow customers to further accelerate their buying behaviour (Vassallo et al. 2018).

The loyalty of the customers is also captured in the fact that the organisation comes up with different packaging of the drinks such as 24 count, 12 counts and the pack of 6. It fits in with different needs of the customers and henceforth, contributes to the elevation of the loyalty of the customers. On being asked about the belief that the customers hold regarding the brand, 13.30 per cent pointed out that they were satisfied drinking it and more than 50 per cent of the customers feel that they incurred a burst of energy as compared to other energy drinks. It is in alliance with the needs of the customers to have a drink that fulfils their energy needs (Hardy 2018). With the assistance of international marketing campaigns and robust marketing strategies and celebrity endorsements, the organisation has able to capture and dominate the energy drinks market and this is the reason that around 45 per of the respondents were fully aware of the product. It clearly pinpoints the strong online presence of the organisation.

Recommendations on Consumer Behaviour and Marketing Psychology

Reconsidering the Product Portfolio

To remain persistent in the energy drinks market, it is essential that Red Bull enlarges its range of products. It acts as an opportunity for the brand to ensure personalizing its relationship with its target. It is essential for the brand to be representative of a wider consumer profile and bring a variety on the table. It can follow the product differentiation strategy of Coca Cola which has to succeed in offering wide array products and different flavours. Since Red Bull doesn't pay much emphasis on different types of flavours, it can be a prospect for the brand to elaborate its product mix (Sauerbronn et al. 2017). It will not only allow reaching a larger section of customers but will also beneficial in enhancing sales and marketing. Author Saghi-Zedek (2016) has stated that diversification of the products assists in minimising the risk of loss and also ensure that investments in different product lines are helpful in enlarging the investment portfolio and laying emphasis on the capital.

Enlarging the Target Segment

It can be recommended to Red Bull to further improve its marketing strategy and enhance target segment. It specifically focuses on the young individuals and it can prove to be risky as they may switch to other brands if a competitive product enters the market. Since

Red Bull has a premium pricing policy, it can be risky focusing on a particular segment. The young target usually evolves and looks for alternatives, henceforth, it is essential that Red Bull targets different segments as well and modifies the composition of the drinks as per the different customer profiles. As per the opinions presented by the Authors Ryu and Lee (2017), targeting a wider and different market segment is helpful in better matching of the customer needs and is also helpful in providing better opportunities for growth and retaining more customers. It eventually contributes to attaining a large share in the market segment.

Modifying the Composition and Sustainability Policy

It is evident from the analysis that the brand has been loved by the customers and the organisation has been effective in targeting the customers and building a loyal framework of customers. However, the brand has been criticized concerning its components, overdose of caffeine and its adversative impact in terms of reducing the insulin activity for the patients with type 2 diabetes. Is has also been in limelight due to the adverse health outcomes such as nausea, vomiting and high blood pressure. It is essential that Red Bull communicates to its market about the health benefits so that the negative buzz can be reduced; furthermore, it also needs to alter its product concentration and composition so that a positive image can be cultivated. Authors de Jong and van der Meer (2017) has stated that customers today are being highly impacted by the organisations being environmentally friendly, henceforth, Red Bull must ensure that corporate social responsibility is adhered to ensure and its cans are 100 per cent recycled. Currently, the organisation saves 95 per cent of energy through recycling; however, it can be inflated to 100 per cent and involved in its marketing strategy so that customers are further lured. It is recommended that the organization modifies its sustainability policy.

References for Consumer Behaviour and Marketing Psychology

Bremser, K., Walter, N. and Goehlich, V. 2018. A comparative study on glocal commercial advertisement perceptions-British and French viewers' responses to Red Bull. International Journal of Comparative Management, 1, 4 pp.333-354.

Buchanan, L., Kelly, B. and Yeatman, H. 2017. Exposure to digital marketing enhances young adults’ interest in energy drinks: An exploratory investigation. PloS one, 12,2.

Cornil, Y., Chandon, P. and Krishna, A. 2017. Does Red Bull give wings to vodka? Placebo effects of marketing labels on perceived intoxication and risky attitudes and behaviors. Journal of consumer psychology, 27,4 pp.456-465.

de Jong, M.D. and van der Meer, M. 2017. How does it fit? Exploring the congruence between organizations and their corporate social responsibility (CSR) activities. Journal of business ethics, 143,1 pp.71-83.

Hardy, J. 2018. Branded content: Media and marketing integration. In The Advertising Handbook, pp. 102-117.

McCarthy, A.C., 2017. Reading the Red Bull Sublime. PMLA, 132,3 pp.543-557.

Red Bull. 2020. A can has more than one life. Available at: https://www.redbull.com/int-en/energydrink/red-bull-can-lifecycle

Ryu, K. and Lee, J.S. 2017. Examination of restaurant quality, relationship benefits, and customer reciprocity from the perspective of relationship marketing investments. Journal of Hospitality & Tourism Research, 41,1 pp.66-92.

Saghi-Zedek, N. 2016. Product diversification and bank performance: does ownership structure matter?. Journal of Banking & Finance, 71, pp.154-167.

Sauerbronn, F.F., Barros, D.F. and Faria, A., 2017. Coca-Cola and strategic CSR. In The Dark Side 3, pp. 55-64.

Vassallo, A.J., Kelly, B., Zhang, L., Wang, Z., Young, S. and Freeman, B. 2018. Junk food marketing on Instagram: content analysis. JMIR public health and surveillance, 4,2 p.e54.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Marketing Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?