Product Report
Group 3: Energy Drink
Submitted to: Mr. Sheikh Mohammad Fauzul Azim
Research conducted by: Faiza Juheina Hoque (2110153)
Tajrian Ihsan Sarthok (2021992)
Tasnova Reza (2131066)
Raihana Chowdhury Ema (1920613)
Sadi Mohammad (1921875)
Muftasim Aswarul Islam Evon (2010650)
Market Description:
The product we will be talking about is Red Bull. Red Bull is a brand of energy drinks sold by an
Austrian company, Red Bull GmbH. It is one of the world’s largest energy drink companies. The
product came out in 1987, and became one of the most popular energy drinks as of 2020, with 38%
market share. The sales are expected to grow 4.2% between 2022 and 2025.
Competitors:
Direct Competitors Indirect Competitors
- Beverages that fall under the same - Beverages that do not fall under the
category, category of energy drinks. same category, but are close substitutes,
like soft drinks/juices.
- They focus on developing/selling energy - The focus on providing drinks to those
drinks for/ to the customers who need a who do not need physical and mental
shot of energy. stimulation drinks.
- Examples: XS Energy, Monster, Rockstar - Examples: Coca-Cola, Pepsi, Fanta,
Starbucks.
Competitors’ strategies:
The major challenge to Red Bull’s leading position has come from US-based imitators: Monster,
Rockstar and Full Throttle which have introduced price competition to the segment and this is
possible to have become more and more important during the depression periods.
If we talk about “Monster”, it is following each and every step that can make it similar to Red Bull
and gain advantage by providing the product at relatively low price. The cost of both the products
are $2 per can but the quantity of Monster is just double than that of Red Bull. Rockstar: This
competitive energy drink whose motto is “party like a Rockstar”, targeted at the younger consumers
who want to be “wild and crazy” and spend all night dancing. There are a number of flavors of
Rockstar – cola, energy drink, and juiced. The energy drink is similar in taste to all the others,
whereas the cola product has the best taste. The juiced version is said to be 70% real fruit juice and
100% energy. They were the first to use the 16oz larger size, and this has fixed and become the
standard. Only Red Bull continues to market the smaller cans, which is part of their image.
Segmentation:
Demographic Psychographic Socioeconomic Geographic
Segmentation Segmentation Segmentation Segmentation
By age: - Consumers are hard - The people who - The product is both
* Under 16: They core loyal. belong to the high job domestic and
account for most of profile, with efficient international, and is
their sales. - Users are regular communication, are available in both urban
* 16-30: The account able to consume it. and rural areas.
of the major shares of - Consumers are
the customer base. benefitted with - The purchase
enhanced potential of this
By gender: performance. product is limited up to
They mainly target the B1, B2, A1, and A2.
males, although -The product is bought
females are a part of by enthusiastic,
their base too. ambitious and/or
determined
By occupation: consumers. Also by
Mostly bought by people who are open
students, working to experience more.
professionals, sports
enthusiasts and - The product is
athletes. bought/used for both
regular occasions, like
hangouts or pleasure
consumption, and for
special occasions, like
parties or sports
tournaments.
Target Market:
Redbull’s is very much market oriented as their consumers wants and needs comes first. Their
current target audiences are teenagers and young adults, as it is the students who consume energy
drinks the most. It is also targeted towards athletic people, within or outside this age group, because
they mostly rely on energy drink, and their priority is to stay energetic. Red bull comes with a great
taste and a variety of flavours, giving their audiences more choice. So it's very popular among the
age group that are targeted.
Positioning Strategy:
Red Bull uses mono-segment type of positioning, meaning the company appeals to the wants and
needs of a single customer segment. Red Bull’s positioning strategy is based on the concept of
product benefit to the consumer. The concept of Red Bull being positioned as “Red Bull gives you
wings” is a metaphor which is the at the centre of all positioning strategies of the company. It has
gained a favourable image in the mind of consumers as an energy drink which enables you tackle
any difficulty; you will feel much lighter and confident facing challenges after having a Red Bull.
Marketing strategy:
Product strategy of Red Bull:
Red Bull is a consumer product. It is non-carbonated energy drink which was originated in Thailand.
The main ingredients of Red Bull are caffeine, taurine, Vitamin B, glucose and sucrose which is
mainly needed by sports peoples and workaholics. There is also a sugar free variant of Red Bull
specially made for the person who is health conscious. It contains aspartame and acesulfame K
instead of sucrose and glucose.
Product attributes: Red Bull uses personality traits such as active, courageous, outgoing and
unpredictable to connect their consumers with their product. Consumers genuinely care about being
connected with their products.
Product branding: Red Bull proved its marketing prowess by taking their product and associating it
with things their audience loves by sponsoring or creating events for them.
Product packaging and labelling: Red Bull comes in very convenient packaging, cans, and in a variety
of flavours. Each flavours as its own labelling and colours.
With this we can see that Red Bull is using “Line Extension” strategy, as the product name and
category remains the same, just varieties are added.
A product strategy always revolves around the tagline. As we all know the product strategy of Red
Bull is, “Red Bull gives you wings” So Red Bull focuses on the idea that it gives people wings which
means it gives people energy whenever they want.
Pricing strategy of Red Bull:
Red Bull positioned itself as a price skimming brand, with 10% more price than their most expensive
competitor. Despite the fact that Red Bull has a number of competitors in the energy drink sector,
they are still the market leaders. As a result, the price strategy is based on the pricing of
competitors. They easily charge a premium for their items because they are at the top, and
customers will buy it for the quality. People are more likely to buy Red Bull in bulk since it is less
expensive than purchasing a single can. A single can of Red Bull costs Tk. 260, but a package of 24
cans cost Tk.6000, meaning a single can costs Tk.10 less for each can when u buy in bulk. However,
when compared to competitors such as Rockstar, Tzinga, Gatorade, and Monster, they are the most
costly energy drink. For example, 1 can of red bull, containing 8oz of drink, costs around Tk.250,
while one bottle of Gatorade, containing 24oz of drink, costs around Tk. 200 Despite persistent
competition, the brand is still succeeding.
Distribution strategy of Red Bull:
Red Bull has successfully managed to sell over 7.5 billion cans worldwide in 2019 owing to its vast
distribution network worldwide. Red Bull is available at convenient locations like a supermarket,
convenience store, and even online stores. This way it becomes very easy for a customer to buy the
product. Also, Red Bull is often stored in Red Bull exclusive refrigerators attracting customers to buy
an energy drink when they go grocery shopping or to a bar. Red Bull is also available online either in
bulk packs or single making it easier for customers to buy it in bulk.
Promotion strategy of Red Bull:
Red Bulls marketing objectives are to increase profit, creating a more internationally known product
and brand name, and to increase sales. They use many ways of advertising, from billboards to
television adverts. Red Bull mostly focuses on advertisement through the media as it reaches its
primary target market of young people. Their most popular and well known type of advertising is
their adverts on television, as it is an effective way of reaching out to the public. In the advert they
are trying to put across a humorous yet witty message by suggesting that Red Bull can help you
escape by giving you wings, finish work early, and so on (as shown in the next page), also to give
their potential customers a sense of the energy red bull can give you.
Their slogan is literally “Red Bull gives you wings”, which is surprisingly catchy which automatically
sets into ones brain. One of Red Bull’s most successful techniques of personal selling is their wings
team members.
The wing team are a group of people all over the world who help promote and sell Red Bull. Their
aim is to drive product trial, win new customers and introduce existing customers to new
consumption occasions. Red bull also uses psychological strategy, by offering offers/discounts.
Sponsorship:
Red Bull has a very big range of events that they sponsor. Sponsoring successful athletes is good for
the brand as it will help promote their product. This can attract a different type of group to their
product and help the product make more sales.
Direct marketing:
Red Bull uses direct marketing to contact other businesses directly through email and letters to
promote their product. They also use it to contact businesses to use their product, e.g in shops and
supermarkets. Direct marketing is more effective as it allows other businesses to feel as the business
is talking only directly to them.
New Variant of Red Bull:
Red Bull Citrus Kicks is our new creation. It possesses soft drink like features, which serves ones
needs to be satisfied, hydrated and energetic. It stands out from the original product as we used
such ingredients that made our new drink is more flavourful, more affordable, more effective as it as
more caffeine, and most importantly, it is less harmful ! is very similar to Red Bull Sugar Free, the
only difference is that it has a bit more caffeine and a lot more flavour
Segmentation:
Demographic Psychographic Socioeconomic Geographic
Segmentation Segmentation Segmentation Segmentation
By age: - Users are to be regular - The people who - The product is both
* Age group from 17- belong to the high job domestic and
24 are to be targeted, - Consumers are profile, with efficient international
as according to our benefitted with communication, are
survey, 94.6 percent enhanced performance. able to consume it. - Mainly available in
of the consumers are the urban areas as
from this group. -The product is to be - The purchase sports are more
bought by enthusiastic, potential of this popular and
By gender: ambitious and/or product is limited up prioritised in such
Mainly targeting male determined consumers. to the B1, B2, A1, and areas.
consumers. However, Also by people who are A2.
according to our open to experience
survey, more females more.
are consuming our
drink. - The product is to be
mainly used for
By occupation: sports/athletic/exercising
Mostly to be bought purposes.
by students, sports
enthusiasts and
athletes.
Target Market:
Redbull Citrus Kicks’ target audiences would remain the same as original, teenagers and young
adults, as it is the students and athletic people who consume energy drinks the most (according to
our survey. It is coming with a great taste and adding on to the variety of flavours.
We would still continue to use mono-segment type of positioning, as our target audience didn’t
change and as we would still want to appeals to the wants and needs of a single customer segment.
Marketing strategy:
Product Strategy of Red Bull Citrus Kicks:
Red Bull Citrus Kick is a non-carbonated energy drink. The main ingredients of it would be caffeine,
taurine, Vitamin B and glucose. According to our survey, 73% of the people would start to consume
more energy drinks if it were less harmful, so in order to do so, we would also be using, the
ingredients of Red Bull Sugar Free, acidifier citric acid, acidity regulator, and low sugar. To cut down
some cost, the use of taurine will be coming down to 0.4%. Many people also said that they do not
like the taste. Taking help from the survey again, 83.8 people (combined) prefer juices and sodas so
we are introducing some common ingredients of juices and sodas to make it tastier.
Product attributes: Red Bull Citrus Kicks will be using personality traits such as active and risk takers
to connect their consumers with their product.
Product branding: Red Bull proved its marketing prowess by taking their product and associating it
with things their audience loves by sponsoring or creating events for them.
Product packaging and labelling: Red Bull Citrus Kicks will be coming in cans, as people find it more
convenient.
Pricing strategy of Red Bull Citrus Kicks:
Red Bull Citrus Kicks would still continue to use price skimming strategy as, one, the consumers are
less price sensitive, and two, we want to reach the maximum level of sales. Our price would drop a
bit more, because of the ingredients we used, causing our sales to increase. Given that the original
product had a lot of consumers even when our price is slightly higher than our competitors, there is
no doubt that we can’t skim out our profitable loyal consumers.
Distribution strategy of Red Bull Citrus Kicks:
Our product will be sold in supermarket refrigerators, however it will still be available online for
those who find it more convenient. However, we will not be using vending machines as it might be a
bit more costly, and many people do not even know how to operate it.
We will be focussing on distributing it more on the urban areas, as the people from the urban areas
tend to appreciate the art of sports more, and our Citrus Kicks is mainly sports based.
Promotion strategy of Red Bull Citrus Kicks:
Red Bull Citrus Kicks will mostly focus on
advertisement through the media as people of all range are on their phones, and as it will mostly
focus on advertisement through the media as it reaches its primary target market of young people.
The ideal time to promote our product would be from 6pm-12am, once every hour, so it reaches
more people.
