Importance of energy drinks in Australia
Red Bull is one of the largest selling energy drinks brand in the market of Australia. People are being exhausted very quickly due to the various changes in the environment. Different types of sports are getting popularity all over the world. Apart from them, the working professionals also need some energizer so that they can do their work properly without getting tired. Red Bull has identified this need in Australia even though there are many brands of energy drinks in the country. Coles is a very popular name in Australia with respect to supermarket and Red Bull has tried to tie up with it so that it will be helpful for them to promote their health drinks. Varieties of energy drinks are available in the Australian market that gives the customers many options to choose (Quincey, 2016). Red Bull products are also available in other supermarkets in Australia as well. Coles has helped Red Bull in increasing their profits because of its popularity as a supermarket. Lot of people has come to know about the product because of Coles supermarket. The company has tried many strategies to attract the customers.
Coles has gained enough popularity in Australia and tried to attract as many customers as possible. The mission of Coles is to serve the best products from various brands. The company has been doing this for a considerable period and has positioned itself in the minds of the customers as a good brand of supermarket. Coles is helping the customers in getting a better future by providing them better quality products. Coles is also helping the farmers and the local community people by providing food products. People visit the stores of Coles as they are providing the products at affordable prices. The founder of Coles had a vision, which the management is taking forward even today. The company looks after the staffs at the supermarket and they get the motivation of serving the customers very well. The environment of the supermarket is very nice to attract the customers. The corporate social responsibility activities of Coles have attracted the attention of many people in Australia and increased its brand loyalty (Devin & Richards, 2016). This is the strategy, which many companies are using to increase their brand value. It has also helped the affected people in 1930 that created a brand image in the minds of the customers.
Coles is a supermarket where varieties of products are available from different brands. First, it introduced various types of cosmetics and gradually it increased to different kinds of products. The acquisition of Coles by Wesfarmers had been a historical strategy that gave Coles a new direction in its business (Dixon, Hattersley & Isaacs, 2014). Before the acquisition strategy, Coles had utilized the marketing tools very effectively like the online services. Online media gave Coles a competitive advantage over the others.
Coles: The popular supermarket in Australia
Red Bull has been chosen, as it has been the one of the popular brands in the world with respect to energy drinks. Red Bull has proved its importance for the people of Australia by helping them in rejuvenating their body and mind. The customer base of the company has increased, as the drinks became a useful product for various sections of the society like the players, working professionals and the students. The reason is that the company is able to identify the needs of the Australians. The company is of Thailand but successfully internationalize in various countries like Australia. The ingredients of Red Bull helped the company a lot, as the customers were able to identify the value of this product. It has been proved by the Australians that Red Bull is able to increase their metabolic rates and reduce the stress levels. The sportspersons enhanced their usage of Red Bull as an energizer. The company has maintained the quality and safety of the products, which gave them an added advantage in the market. The players of different sports have experienced that their reflexes were improved. All these have helped Red Bull in acquiring the market share of about 70% in the health drink market. This has been a great success of a company in terms of internationalization strategy.
The marketing department of Red Bull has done remarkable jobs. It uses the integrated marketing communication tools very effectively that helped them to reach to a vast section of consumers. The promotional activities were exceptional. Many companies use the same type of marketing tools like newspapers and television. But, Red Bull has introduced some innovative strategies in their promotional activities. It has also used the traditional tools but added some innovative things like innovative ads for the print and television media. This enhanced the chances of attracting the attention of the viewers. People used to get bored by the same ads on the print and television media. Other media that helped the company in promotional activities include endorsement of the brand by the contemporary celebrities and various sportspersons. The sports that require huge amount of energy and risks are involved, are taken into their consideration to send customers a message that the drink is able to provide considerable energy to the customers. The ads have enabled the viewers to identify their needs properly. Proper promotional activities of a company are able to attract the customers to greater extent (Pfeffer, Zorbach & Carley, 2014).
Red Bull’s success in the Australian market
The segmentation, targeting and positioning strategies of Red Bull in the Australian market have been quite successful. The segmentation of marketing takes into consideration dividing the entire population into smaller divisions so that the company can identify the particular needs of the different groups (Kotler, 2015). It also eases in the selling of the products. The segmentation type used by the company is mono-segment. The segmentation strategy deals with the identification of tastes and preferences of the customers and their individual needs. Different variables are taken under this strategy like age, gender, income level and occupation of the customers (Asiedu, 2016). Red Bull has the target audience of young generation, who may be sportsperson or general people. The bachelors are also their prime customers. The age of the customers of Red Bull is between sixteen and thirty years as the young generation loves to take the energy drinks. The players of different sports are the largest users of the drinks. The company has also made products for the aged people which contain zero calories which they are in need of. This would keep them healthy and do their everyday chores without having any problems. The company has a wide range of customer segment. It has identified the need of the male customers, which is to increase the metabolism rate and adventurous in nature at the same time. The females on the other hand, form an essential part of the target segment. The other segments that the brand has identified are the students and the working class of people. They spend a considerable amount of money on these energy drinks. Red Bull has correctly identified the segment for the success of their product.
Psychographic segmentation is another form of segmentation that the marketers use (Hamka, et al., 2014). It is done on the basis of lifestyle of the people. Here the psychographic segmentation of the brand includes the business people and the students. There have been enthusiasms on the part of the customers with respect to attitudes. The product has a medium usage rate in the Coles supermarket. The geographical segmentation of Red Bull includes the urban and semi-urban areas of Australia (Obrecht, 2015). The culture of youth in the country is very active and it has a major customer base in the country (Rickwood, Van Dyke & Telford, 2015). The product is also available in the rural areas of the country at a cheaper rate. This is because the income level of the people living there is lower than that of the urban areas. The company has made the psychographic segmentation very well. The youth population of Australia is huge and Red Bull has strategically targeted hem so that the revenue of the company is increased. Coles has been successful in attracting the potential customers and increased the profits largely (Perrone and Wodonga, 2015).
Marketing strategies of Red Bull
The target market of Red Bull is the customers in the age group of sixteen to thirty years since the product is a health drink. The young people are in need of it as they are involved in different kinds of sports and activities that require huge amount of energy (Larson, et al., 2015). The majority of the customers of Red Bull is from the cities of Australia and comprises of students, athletes, other sportspersons, and the working professionals (Thorpe, 2014). There is also a reason behind this as the major sports academies are present in the cities of Australia. The headquarters of many companies are located in the cities and lot of people is working there. These working professionals are also in need of it. It is believed to increase the concentration capacity of the customers. The other forms of customers who are the usage of the energy drinks are those who are regulars in the nightclubs, bars and pubs where there is high popularity of the product.
The company has also taken the strategy of clubber, which defines that the customers are from various backgrounds and are having different meanings of earning only because of their level of education in the market of Australia (Andreea & Anca, 2014). This strategy is because of the fact that the customers of Red Bull are having various backgrounds and different cultures. The brand has planned to capitalize on this. The customers were able to know about the benefits of the product through the effective promotional activities of the company (Zikmund, et al., 2013). Soon the popularity of the brand reached all over Australia and also outside the country. Samples were being distributed to the young customers who can use before they can buy it. They are supposed to get benefits from it as per the company. This has also helped the drinks company as well as the supermarket Coles to enhance their profitability of the store by selling more products of Red Bull.
Positioning is another important strategy as far as marketing is concerned. Proper positioning of a product helps a brand in attracting more customers and increase brand loyalty (Strauss, 2016). Positioning about a particular product helps in creating loyal relationships with the customers (Keller, 2016). It has an influence on the perceptions of the customers about what is their thought regarding the energy drinks. Red Bull has positioned itself as a premium brand in the minds of the Australians that gave them a competitive advantage (Masek, et al., 2016). This is due to the fact that the company is trying to create a niche market for its products and that is the reason why it has kept the price high in the urban areas where the average income of the people is higher than those of the rural areas.
Segmentation, targeting and positioning of Red Bull in Australia
The competitors of Red Bulls in Australia are Monster and Rockstar (Carpenter, 2017). In comparison to these competitors, Red Bull has kept the price of its products very high with a plan to dominate the Australian drinks market. The prices of the drinks of Monster and Rockstar are not so high and people might think that the value provided by them are not enough in comparison to Red Bull. It does not allow any substitutes to take its position. This differentiation strategy has helped them in positioning themselves in the minds of the customers as a brand of the niche market.
Conclusion
The marketing strategies of Red Bull have been quite successful as far as the report is concerned. The market share of Red Bull has increased gradually and is the leader in the energy drinks segment in the country today. The people of Australia have readily accepted the product because of its high quality and value proposition. The company has made proper utilization of the promotional activities in Australia to attract a large section of the people. The pricing strategy of the Red Bull drinks is such that it is generally targeted to the upper section of the society. The acquisition of Red Bull by Coles has helped the brand to flourish in Australia. The segmentation, targeting and positioning strategies have helped Red Bull to attract different sections of the society in Australia. It can be inferred that Red Bull. successfully implemented the internationalization strategies in Australia.
References
Andreea, N. N., & Anca, M. (2014). Design and Aesthetic Elements on the Energy Drink Market Case Study: Red Bull. Ovidius University Annals, Economic Sciences Series, 14(1), 501-504
Asiedu, E. (2016). A Study of Use and Impact of Market Segmentation Practices on Bank Performance. With Special Reference to Commercial Banks in Colombia. J. Bus. Financ. Affairs, 5(162), 2167-0234.
Carpenter, J. (2017). Snowmobile Best Trick. Lerner Publications.
Devin, B., & Richards, C. (2016). Food Waste, Power, and Corporate Social Responsibility in the Australian Food Supply Chain. Journal of Business Ethics, 1-12.
Dixon, J., Hattersley, L., & Isaacs, B. (2014). Transgressing retail: supermarkets, liminoid power and the metabolic rift. In Food Transgressions: Making Sense of Contemporary Food Politics. Ashgate Publishing Ltd.
Hamka, F., Bouwman, H., De Reuver, M., & Kroesen, M. (2014). Mobile customer segmentation based on smartphone measurement. Telematics and Informatics, 31(2), 220-227.
Keller, K. L. (2016). Reflections on customer-based brand equity: perspectives, progress, and priorities. AMS review, 6(1-2), 1-16.
Kotler, P., Keller, K. L., Manceau, D., & Hémonnet-Goujot, A. (2015). Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.
Larson, N., Laska, M. N., Story, M., & Neumark-Sztainer, D. (2015). Sports and energy drink consumption are linked to health-risk behaviours among young adults. Public health nutrition, 18(15), 2794-2803.
Masek, J., Reagan, B., Dyn, A., & Nguyen, A. (2016). Monster Energy Company.
Obrecht, A. J. (Ed.). (2015). Appear: Participative Knowledge Production Through Transnational and Transcultural Academic Cooperation. Böhlau Verlag Wien
Perrone, A., & Wodonga, T. A. F. E. (2015). Centralian College: Creating a strategic marketing plan for long-term growth. Marketing, 85.
Pfeffer, J., Zorbach, T., & Carley, K. M. (2014). Understanding online firestorms: Negative word-of-mouth dynamics in social.
Quincey, A. J. (2016). RED BULL: THE WIIINGS MIGRATION (Doctoral dissertation).
Rickwood, D., Van Dyke, N., & Telford, N. (2015). Innovation in youth mental health services in Australia: common characteristics across the first headspace centres. Early intervention in psychiatry, 9(1), 29-37.
Strauss, J. (2016). E-marketing. Routledge.
Thorpe, H. (2014). Producing Transnational Networks: Action Sport Companies, Media and Events. In Transnational Mobilities in Action Sport Cultures (pp. 35-67). Palgrave Macmillan UK.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
