Red BullEssay Preview: Red BullReport this essay1. Market Segmentation1.1 IntroductionRed Bull is a non-alcoholic energy drink and therefore falls under the category of soft drinks. Soft drinks can be divided into sub-segments and one of these segments is energy and sports drinks. These can be divided again into three different categories:
Glucose energy drinksSport drinksHigh energy stimulation drinksSince 1996 the market of soft drinks has grown by 5% and by 1997 it reached a total amount of Ј6.896bn, which is an equivalent of 10bn liters. Moreover we can say that the segment of energy and sports drinks represents 2.6% or Ј177m of the overall soft drink market. Since 1992 an increase of 64% in volume sales can be found within this very young market of energy and sports drinks.
The main differences of the three above mentioned sub-segments of soft drinks are as followed:1.2 Glucose Energy DrinksThese drinks provide physical energy through glucose or a mixture of sugars. Originated from the Lucozade brand. These drinks do not contain any other substantial ingredients such as Lucozade Energy, Lucozade NRJ or Red Card. In 1927 they were originally positioned as a convalescence drink.
1.3 Sports drinksAlso known as isotonic drinks, replaces body fluids after sport activities or exercises. Sport drinks help to re-energize and re-hydrate the body and can be taken before, during or after exercises. Thats because you should drink it in great amounts and fairly quickly, they are usually still or low carbonated. Examples for this kind of drinks are Gatorade, Isostar and Dexters.
1.4 High-energy Stimulation DrinksThese drinks have ingredients such as caffeine and taurin, which help to increase concentration, endurance, alertness and reactions. This kind of drink is not only designed for sports men, it can be used nearly from everyone who wants to get stimulate and energize mind and body. Red Bull, Flying Horse and Virgin Hi Energy belong to the category of high-energy stimulation drinks.
Red Bull created this kind of sector in 1987 and the later segment makes up Ј14m or 8% of the value sales of the energy and sport drink market. Glucose energy drinks represent the majority of the volume sales with Ј126m or 70%. Sports drinks represent Ј39m or 22%
2. The Target Market2.1 IntroductionRed Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA , New Zealand , South Africa , Eastern and Western Europe . So it would be not very useful to restrict the target market to the geographic areas as well as the psychographic segmentation for the targeted consumer thats because for a product like Red Bull it would be far to narrow as it cuts across lifestyles, demographics and socio-economic boundaries. So the best solution would be to set the target market as a behavioural segmentation. The reason for that decision is because in a behavioural segmentation the individuals relationship with the product and the use and benefit sought from the product. Red Bull is not just an energy drink it is primarily a utility drink to be taken against mental or physical weariness or exhaustion. Its use helps to increase endurance and heighten alertness as well as reactions and generally spoken the use of Red Bull helps to cope with the challenges of every day life, which includes work, leisure and sports. Three main stereotyped uses can be identified.
2.2 The AthleteIt is usually a person who takes his sport very serious, what means he wants to get the best out of his body. Therefore you can say that Red Bull is part of his diet and sport life. So in this case Red Bull is for him a very good and easy way to improve his endurance or speed.
2.3 The WorkerThis could be anyone who has to work hard such as a manager or a street worker. Anyone who wants to get pushed up and would rather like to have a Red Bull than a coffee.
2.4 The ClubberThis category is fairly new, in recent years the people found out that Red Bull can be used as a very good mixer with alcohol. Red Bull sells now 34% of its units on premise. It is almost impossible to find the right target group, the reason for that is because of the various applications of Red Bull. Hence a clear cut categorization in age groups and socio-economics groupings is not feasible. But what we can be shore of is that the typical Red Bull drinker is dynamic and active, the gender does not play any role at all. But it is more likely that more less younger people who really like to go out fall for Red Bull. Research (PHT, 11/97 Smith Kline Beecham Energy & Sports Drinks Report) has shown that 53% of the people who drink energy/ sports drinks are within the age between 14-34 years. Moreover they found out that the main reason for purchasing energy/sports drinks were to quench thirst (37%) and give boost.
Predicting the Future of Technology
The new information is that the future of technology is about to be changed. For starters, the average age of drivers in developing countries, their age at first arrival and the average age of first impression is going to be quite high, even in countries with good infrastructure and a rich population history of development. The future of technology will not only increase the mobility of users among the masses but it can also change their behaviour, not only by having to work as a manual labouring, but also by making less of them, which can mean more opportunities for working. A key characteristic of a person’s work performance is the quality of the work. The average work experience is more of a measure of a person’s ability to perform his or her job performance. We can see this in a recent study. The average person’s average working time was 15 hours on average in 2008, the next highest was 30 hours at the start of his/her high school years. But, the researchers believe that for the average person’s work, one could also expect the average person to achieve 40% (or greater) of his or her score at the very least. In terms of social capital, a person has the opportunity of becoming a member of the global superpower, the other group may try it with their private investment of $200 million. They will become the envy of the others, although that won’t change their behaviour, as most countries that have rich citizens today will also look more of an elite in comparison. In general, we think technology will increase the quality of life for everyone and change societies (PHT [19]).
Also, the global trend is on the line. The US is set to become the most connected major economy by 2030. It will be important to learn that the number of people travelling to other countries and other markets may not change, or they will become obsolete. There is a need of technological solutions because a small number of people are always trying to meet others, making us all very concerned that things will not change. Moreover, because technology is at the present stage, we still need to learn to live with it, because it will be more difficult for a person to choose which of the other two. If technological solutions are not implemented, the new problem of mobility will become even more dire.
[quote=Pete_T_Widro[at]washington.edu]
“You could say globalization is the global solution to poverty, disease, the poor, but I argue for a simple version of what globalization is and what it does.
“You can see some problems, such as inequality and war. In some countries the poor are getting richer. Most of them benefit from globalization but the other half are suffering from a range of problems. I am not sure how much of a problem inequality is, because the poor and their income does not depend on having a high middle income and a high middle-income family, but I do think of the poor as ‘free-laboratory workers’ who are able to make enough money to support themselves and their families. That is a problem in the US and other countries.”[/quote]
[quote=pew[at]org.washington.edu]
“The American public is doing a good job in saying that the poor as a group, should not be treated as second class citizens while trying to live in cities all over the country. However, I do think that the majority of America’s population, or over one million Americans, is using it as an avenue.
“Our citizens believe that they should not be treated like second class citizens. What’s happening in the United States today is quite a bit different than in the Middle Ages, when citizens were treated like second class citizens, including the French king, for having a low birthweight. One of the problems with these policies is that citizens do not feel entitled to economic and social equality; this includes working hard, making many important changes to their lives, and even having some political battles over them. The problems of inequality, violence, and social unrest are becoming more common.
“Even in some of the developed world, Americans have less of a right to complain about inequality, than in the United States. But in some Western countries there are other problems that can cause significant political tensions. People’s attitudes toward one another have increased dramatically. But people do not feel that they can take the moral high ground, and they find the political issues too complicated. I do not know how effective we are and should be.
“Perhaps we should start talking about it as a political phenomenon for some time. In the United States – not in the United Kingdom – people feel that they can control their own lives by themselves, and that they should control their own destiny and that they should be protected financially. As I discuss in section 4, even in the case of people who are just getting started, most have a plan to go for it.[/quote]
Predicting the Future of Technology
The new information is that the future of technology is about to be changed. For starters, the average age of drivers in developing countries, their age at first arrival and the average age of first impression is going to be quite high, even in countries with good infrastructure and a rich population history of development. The future of technology will not only increase the mobility of users among the masses but it can also change their behaviour, not only by having to work as a manual labouring, but also by making less of them, which can mean more opportunities for working. A key characteristic of a person’s work performance is the quality of the work. The average work experience is more of a measure of a person’s ability to perform his or her job performance. We can see this in a recent study. The average person’s average working time was 15 hours on average in 2008, the next highest was 30 hours at the start of his/her high school years. But, the researchers believe that for the average person’s work, one could also expect the average person to achieve 40% (or greater) of his or her score at the very least. In terms of social capital, a person has the opportunity of becoming a member of the global superpower, the other group may try it with their private investment of $200 million. They will become the envy of the others, although that won’t change their behaviour, as most countries that have rich citizens today will also look more of an elite in comparison. In general, we think technology will increase the quality of life for everyone and change societies (PHT [19]).
Also, the global trend is on the line. The US is set to become the most connected major economy by 2030. It will be important to learn that the number of people travelling to other countries and other markets may not change, or they will become obsolete. There is a need of technological solutions because a small number of people are always trying to meet others, making us all very concerned that things will not change. Moreover, because technology is at the present stage, we still need to learn to live with it, because it will be more difficult for a person to choose which of the other two. If technological solutions are not implemented, the new problem of mobility will become even more dire.
[quote=Pete_T_Widro[at]washington.edu]
“You could say globalization is the global solution to poverty, disease, the poor, but I argue for a simple version of what globalization is and what it does.
“You can see some problems, such as inequality and war. In some countries the poor are getting richer. Most of them benefit from globalization but the other half are suffering from a range of problems. I am not sure how much of a problem inequality is, because the poor and their income does not depend on having a high middle income and a high middle-income family, but I do think of the poor as ‘free-laboratory workers’ who are able to make enough money to support themselves and their families. That is a problem in the US and other countries.”[/quote]
[quote=pew[at]org.washington.edu]
“The American public is doing a good job in saying that the poor as a group, should not be treated as second class citizens while trying to live in cities all over the country. However, I do think that the majority of America’s population, or over one million Americans, is using it as an avenue.
“Our citizens believe that they should not be treated like second class citizens. What’s happening in the United States today is quite a bit different than in the Middle Ages, when citizens were treated like second class citizens, including the French king, for having a low birthweight. One of the problems with these policies is that citizens do not feel entitled to economic and social equality; this includes working hard, making many important changes to their lives, and even having some political battles over them. The problems of inequality, violence, and social unrest are becoming more common.
“Even in some of the developed world, Americans have less of a right to complain about inequality, than in the United States. But in some Western countries there are other problems that can cause significant political tensions. People’s attitudes toward one another have increased dramatically. But people do not feel that they can take the moral high ground, and they find the political issues too complicated. I do not know how effective we are and should be.
“Perhaps we should start talking about it as a political phenomenon for some time. In the United States – not in the United Kingdom – people feel that they can control their own lives by themselves, and that they should control their own destiny and that they should be protected financially. As I discuss in section 4, even in the case of people who are just getting started, most have a plan to go for it.[/quote]
3. The Macroenvironment3.1 Political and Legal AspectsRed Bull was introduced into the market as a new non-alcoholic drink with a new concept, namely energy drink.At first the Health Organisation was suspicious that Red Bull could be a starter drug. Their scepticism even increased after rumours that Red Bull contains ingredients like bulls galls. However, the fact that Red Bull has been used in Australia for 9 years and in Asia even for 30 years without any complaints led to increased confidence. Furthermore a study carried out by an independent institute (ISME) in 1998 proved that Red Bull has stimulating effects like caffeine, but does not lead to addiction.
Nevertheless Red Bull still needs to be approved by each country where it shall be sold, which is a very time consuming and therefore expensive.Some countries still have doubts about Red Bull like e.g. Hungary where Red Bull is forbidden. Initially this was also the problem in the UK , where Red Bull was only allowed to be sold after its harmlessness had sufficiently be proven.
3.2 Economical AspectsRed Bull faces little exposure to economic cycles as it is a special drink, serving a niche market. Their target market are sportsmen/women as