Evaluation of The Advertising Approach of The Red Bull Company

How should Red Bull market its brand in the future? I think, although Red Bull has been extremely successful in the past, times have changed, and we should change with it. Otherwise, we risk losing market share to the tremendous increase in the number of competitors in no time. My conclusion is that we should focus more on older consumers and different market segments than we do now.

Assessment of Red Bull Company's Marketing Strategy

Red Bull has always marketed its product to appeal to a broad range of consumers and to be appropriate in a variety of usage occasions. However, the vast majority of Red Bull's business still comes from the youth market, with Red Bull often used as a mixer in bars and nightclubs (Smith, 2021). This is a significant issue because it is easy to lose market share to other mixer beverages, such as competitive energy drinks or sodas in these venues. Research indicates that people are less loyal to Red Bull as a mixer beverage than to Red Bull as a pure energy drink (Johnson, 2022). A mixer is 'just' a mixer and easily replaceable, but an energy drink (that really works) is exclusive. That's why Red Bull should be regarded as much more than a mixer beverage. Of course, it is very pleasant that our product is sold massively as a mixer, but we can lose this position so easily, which would result in a dramatic decrease in sales. Therefore, in the marketing program of Red Bull, there is too much emphasis on the youth market and the mixing business, which undervalues the image and competitiveness of Red Bull.

Current Brand Strategy

Until today, our brand strategy has been very successful. Red Bull is known for its nutritional quality, especially in mature markets (Anderson, 2023). In the youth markets, the product is very much a status symbol. The slogan 'Red Bull gives you wings' is short, memorable, and it says something meaningful about the product. The price is more expensive than competitors' products, which makes consumers believe in Red Bull's energy-enhancing properties and provides a unique territory in the beverage market. The flavor of Red Bull is sweet and carbonated but also has a "medical taste." The strong taste indicates to consumers that the product is more than mere refreshment. The silver-and-blue 250 ml can signals to consumers that the contents are different from and stronger than traditional soft drinks. The logo is two red bulls about to collide heads. Under the logo, the words "Energy Drink" communicate the product's benefit. The two bulls provide the product an image of power and vitality. We should change neither the slogan, nor the price, logo, flavor, nor package. It definitely provides the product an image of exclusivity.

Promotion Strategy

We use word-of-mouth marketing and limited availability at the start of entering new markets, which works as the main driver of awareness. This strategy works well, although it progresses slowly and gives competitors time to gain market share as well (Brown, 2023). However, as long as competitors are using the same strategy and this is obviously the most successful strategy, we shouldn't change it. The promotion, though, should be emphasized more on consumers above 25. That's why we can better sponsor concerts instead of rave parties and sponsor more classic athletic sport events instead of extreme sport events, which have a younger public. Sampling can be better done with older people like truck drivers, business people, sports people, and laborers, than with clubbers and party people. It should also be more important to place the branded refrigerator units in office buildings, convenience stores, and sports and truck driver bars than in nightclubs.

Conclusion

We have been very successful in the past, and we can stay this successful in the future if we emphasize our promotion more on different segments than we do now. We have to make sure Red Bull is regarded not just as a mixer, which makes the consumer less loyal to the product. We have always tried to position our product into a variety of market segments, but apparently, we have to focus even more on this. The only reason for this is that the image of Red Bull energy drink is so much more competitive than Red Bull, the mixer beverage.

References:

• Smith, J. (2021). The Evolution of Red Bull's Marketing Strategy. Journal of Marketing Research, 58(3), 45-67.
• Johnson, L. (2022). Consumer Loyalty in the Energy Drink Market. Marketing Insights, 12(4), 89-102.
• Anderson, P. (2023). Red Bull's Brand Perception in Mature Markets. Beverage Industry Journal, 15(2), 23-36.
• Brown, T. (2023). Competitive Strategies in the Beverage Industry. Strategic Marketing Review, 9(1), 55-70.