Red Bull Marketing Plan

Executive summary:

The Red Bull company is preparing to launch two new editions, namely Red Bull Organics and Red Bull Limited Edition in 2021. The energy drinks market is increasing and so is the market for health conscious consumers giving the company a chance to widen their market share. The Limited Editions will be positioned by the slogan, “A Red Bull for a Rainbow Nation” Indicating the versatility of our products. The Organics will use the slogan” Wings that Suit You” which shows that our products are for everyone and anyone in South Africa. This gives us the chance to widen our target markets, including millennials and the working class to name a few. Our primary marketing objective is to achieve South African sales of R20 Billion which is an increase of 7,7% in revenue. Based on this goal we expect to sell more than 10 billion cans in 2021.

Current marketing situation:

The Red Bull company, first founded in 1984 then launched in 1987, markets several beverages in the beverage industry but they specialise in energy drinks. Red Bull was the first company to introduce energy drinks to the world. Its dominance in the market is due to it selling mostly energy drinks rather than selling all types of beverages like its major competitors in the beverage industry (Coca-Cola Company and PepsiCo). It has done this since its launch in 1987 and only increases its product line (product line filling) rather than diversifying its products to other types of beverages.

Red Bull sells various energy drinks in their product line including Red Bull energy original, sugar-free, total zero and various editions. Red Bull markets its products in over 171 countries and has sold 7.5 billion cans sold in 2019. They are the leading energy drinks company with a large market share and they keep improving due to their competitive and highly creative market strategy.

In South Africa the energy drinks market is expected and continuing to expand as lifestyle patterns and trends in our country are changing and diverting from past trends. People are now more energetic, active and adventurous which further fuels the demand for energy drinks. The annual retail sales volume of energy drinks increased by approximately 8% in 2016 which shows the increasing market.

Market description

Red Bull is a part of the energy drinks market which is a branch of soft drinks in the beverage market. The energy drinks market is a very exclusive market that serves a variety of energy boosting drinks that include ingredient options in the drinks such as electrolytes, coffee, protein and more which increases physical ability.

The consumers in the market are starting to consume more energy drinks as the years go by and they perceive the benefits they get from various drinks as different. Consumers may make decisions based on price, taste, ingredients, lasting effects or packaging. So they segment the market into athletes, dancers, students, working people, those who are adventurous and more.

Red bull has used various ways to segment their market like demographic segmentation (age and life cycle to be exact) and psychographic segmentation. In the past, the target market for Red bull was 18-35 year old males which focused on gender and age and lifecycle segmentation.

Right now their target audience involves anyone who seeks adventure, is active and loves extreme sports which focuses mostly on psychographic segmentation.

Red Bull has a loyal customer base and they created this through maintaining the same standard of their products and excelling in their customer-engagement market by having different events and competitions for their customers.