Red Bull vs. Monster

Размещено на http://www.allbest.ru/

Размещено на http://www.allbest.ru/

Red Bull vs. Monster

energy drink red bull

Red Bull is one of the biggest soft drink successes over the past the years. Red Bull improves emotional status and vigilance, increases performance, reaction speed and concentration. Customers drink Red Bull for such benefits as these. In times of long school hours, stressful work, and very tiring days, customers look to a product that vitalizes body and mind. Red Bull even supplies a sugar free version for the average health-concerned user.

The target audience. Red Bull targets an active audience, especially those between the ages of 17 and 23, male and female. Characteristically, 17 - to 23-year-olds is either thinking about college, in college, or just recently graduated from college. It is currently in a consumer's life that dramatic schedule changes are happening. Red Bull is a perfect solution for 17 - to 23-year-olds who live fast-paced, hectic lifestyles while hardly making it through long days and nights of classes and studying. The Red Bull consumers can be divided into three segments: athletes, clubbers and workers. Each of these using the Red Bull energy drinks to meet their personal needs. Whether these are obtaining physical edges, mental edges or just consumption for pleasure. Red Bull wants to have at least 75-80% of all college students in the country drinking or highly aware of their drink.

Red Bull with sugar:

· Demographics: Men and women aged 16-29

· Geographics: Mainly people who are situated in the city, as they are likely to be really busy and tired. Red Bull seems to have a cooler in most bars and clubs in the city as well as in convenient stores.

· Psychographics: People who are tired / stressed and want to relax and have fun.

· Behavioural: Students and young professionals to boost energy during work long day at work.

Red Bull sugar-free:

· Demographics: Women aged 16-29

· Geographics: Mainly in the city where there are many young professional women.

· Psychographics: Drivers who are tired and need and increase in concentration.

· Behavioural: Women who want energy boost but are on a diet.

The proposition. Red Bull is «The Drink That Gives You Wings». This is Red Bull's international slogan for its energy drink. Red Bull is a popular drink amongst men in particular, with its largest consumers consisting of athletes, students, and night-clubbers in need of a late night lift. However, the brand is marketed to 'opinion leaders and hard-working people with active lifestyles', as the company's website claims.

Red Bull succeeds by remaining exactly the same. Consumers can choose with sugar or without. There is no other choice. As founder Dietrich Mateschitz says «We don't bring the product to the people, we bring people to the product.» Red Bull marketing maintains a sense of product mystique that makes consumers feel special. Customers can relate to the experience they were having when they encountered the drink and they adjust their values to the attributes of the product.

Marketing strategy. Red Bull campaign strategy is to redirect the advertising from the former extreme sport athlete audience to a demographically larger target audience - college students. Red Bull uses all the available media channels, meaning cinema, TV, radio, press and the Internet. In other words the company focuses on the media through which it reaches its primary target market-young people. Therefore they advertise in TV shows like T.F.I. Friday and in magazines like Time Out and men's health. Another way that Red Bull markets its drinks is through people who drive around in Mini's and Beetle's with a giant Red Bull can on the back. They find people who need energy and give them a free can of Red Bull. This is a way to introduce Red Bull to the masses. Their advertisements in the different media channels are very successful. They allow the consumers to interpret the product and the moments of use themselves. Red Bull achieves this by a humorous and witty cartoon campaign, transferring the message that this energy drink helps you to escape by `giving you wings ?. The idea of communicating with the consumer in form of a simple cartoon has got the advantage that the message is easy to understand. People do not only enjoy the campaigns they even remember what the product is called and what it delivers, which is the most important characteristic for a successful campaign.

The company also implements sponsoring in their marketing mix strategy. Sponsoring supports the image, the credibility and the visibility of the product.

On the one hand Red Bull sponsors the athlete target market in either extreme sports such as free climbing, paragliding and motorsports or fun sports, but always where Red Bull is needed. This strategy contributes to Red Bull that the brand appears (logos and stickers) and that the product ?s target market is more precisely defined.

Financial conditions. Today Red Bull has annual sales of approximately 4 billion cans in more than 160 countries. Red Bull sold worldwide more than 4,2 billion cans in 2010. Its sells increased with 7,6%. Also the company's turnover increased by 16% from 3,268 billion Euro to 3,785 billion Euro. In 2010 Red Bull has known outstanding sales in the Red Bull markets in Turkey (+86%), Japan (+80%), Brazil (+32%), Germany (+13%) and the USA (+11%). Due to efficient cost management and ongoing brand investment even in the challenging economic climate of recent years, the Red Bull company keeps on increasing. Red Bull employs this moment more than 7,758 people in 161 countries. Red Bull dominates the energy drink market with a share of 70%. In 2012, Red Bull's sales exceeded $2.95 billion and controlled 42% of the energy drinks market $2.95 billion. One of the reasons that Red Bull has recorded high sales numbers isn't because it has the best flavor or the most variety; it's because of the out-of-the-box marketing extremes that Red Bull goes through to put its brand in front of its target audience.

Advertising. Red Bull has a diverse international marketing campaign. The numerous activities range from extreme sports like mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, wakeboarding, cliff diving, surfing, skating, freestyle motocross, rally, Formula 1 racing, and breakdancing to art shows, music, and video games. In keeping with their target market of young males, Red Bull has also enlisted help from celebrities, such as Eminem that would appeal to this group (sponsoring the Red Bull «EmSee Battle Rap championships»). It also hosts events like the «Red Bull Flugtag» (German for «flight day» or «flying day») and other such contests. Red Bull also owns association football teams, with clubs in Austria, Germany, the United States and Brazil featuring the Red Bull trademark in their names. By associating the drink's image with these activities, the company seeks to promote a «cool» public image and raise brand power.

Monster Energy is an energy drink, launched by the Monster Beverage Corporation in 2002. The regular flavor comes in a black can with a green tear-shaped M logo, implied to have been torn by the claws of a «monster». The company is also known for supporting many extreme sports events such as BMX, Motocross, skateboarding and snowboarding, as well as sports. In addition, Monster Energy promotes a number of music bands around the world, like Asking Alexandria, The Word Alive and Shine down.

There are now 34 different drinks under the Monster umbrella in North America including its core Monster Energy line, Java Monster, Extra Strength, Import and Rehab.

The target audience. The Monster Energy Drink, distributed by Monster Beverages Co., uses concentrated targeting as a marketing strategy. Strong promotion strategies including product handouts by young attractive vendors in powerful trucks blasting music are common ways The Company promotes in cities. The Company also uses Ricky Carmichael, a motocross legend, to endorse their products. 40-foot posters are used to target motocross fans, which are a major target market for Monster Beverages Co. (Murr, 2006). Other effective advertisements include using high contrast, recognizable posters in retail stores and high energy, adrenaline rushed TV ads. Advantages of concentrated marketing include concentration of resources, better meeting the needs of the target audience, and strong positioning. Disadvantages include segments being too small or changing, and large competitors such as red bull to more effectively market to niche.

Business objective: Capitalize on the emerging double-size trend and fend off competitors entering the category. Drive sales, volume, and market penetration via the 16 oz. proposition. Other energy drinks were gaining momentum and more 16s were imminent, so Hansen needed decisive action to preempt other majors and stay ahead of the trend.

Marketing strategy. According to Rodney Sacks, CEO, the target audience is 18 - 25 year old males (Murr, 2006). This market is focused on a product which offers an energy boost, so any audience that is involved in sports, or high endurance activity is a clear target. The green claw marks resemble adrenaline, power, and testosterone; accompanying its motto, «unleash the monster within». High schools and colleges are clear niches for these high-energy markets. The demographics for the target market for Monster energy drink are: Major Cities 18-25 year olds Males Athletes/ High endurance activities Income ? middle class According to the 2000 census, there are approximately 10 million males who fall under Sacks' audience of 18 - 25 year old males. But I believe the target market is expanding to be much wider than that including women and older men. Judging by the effectiveness of free handout promotions in hot locations such as South beach, Florida, I see a target market of males and females ages 12 - 35. According to the census this number is around 80 million (US Census Bureau, 2007). Hansen's Monster Energy drinks offer giant doses of caffeine and sugar in big black cans adorned with neon-colored claw marks. The scary packaging, plus a bevy of extreme-sports sponsorships, positions Monster as an edgy alternative to Red Bull in the fast-growing, $2 billion a year energy-drink market. Monster's slogan: Unleash the beast.'' Monster has certainly energized Hansen. The company has seen its sales more than double since it introduced the brand in April, 2002. Last year, Hansen earned $20 million on sales of $180 million, up from just $3 million of profits on sales of $80 million in 2001. Sales nearly doubled, while profits quadrupled, in this year's first quarter. Those results helped Hansen earn the No. 26 spot on BusinessWeek's annual ranking of Hot Growth Companies.

Advertising. Monster Energy is advertised mainly through sponsorship of sporting events, including motocross, BMX, mountain biking, snowboarding, skateboarding, car racing and speedway. In 2006, Caleb Johnston Corporation announced a distribution agreement with Anheuser-Busch in the U.S. and Group Jumex in Mexico.

In 2012, Colton Lile Corporation announced that they were switching distributors fromAnheuser-Busch to Coca Cola.

Размещено на Allbest.ru