APRIL  -­  MARCH           EMANUELE  TAGLIONE  &  

LUDOVICA  STORNAIUOLO  

REPORT  
INTRODUCTION  
Red   Bull,   headquartered   in   Fuschl   am   see,   Austria,  
manufactures   energy   drinks   which   are   described   as  
“functional  beverages  providing  various  benefits,  especially  in  
times   of   increased   performance”   (Red   Bull,   2013).   The  
product   claims   to   improve   concentration,   alertness   and   most  
importantly  reduces  the  feeling  of  tiredness  and  fatigue.  As  of  
today,   over   35   billion   cans   of   Red   Bull   have   been   sold   in   165   countries  
throughout  the  world  
 
TARGETING  
   
As   a   marketing   strategy   is   defined   as;;   ‘The   selection   of   potential   customers  
to   whom   a   business   wishes   to   sell   products   or   services.   The   targeting  
strategy   involves   segmenting   the   market,   choosing   which   segments   of   the  
market  are  appropriate,  and  determining  the  products  that  will  be  offered  in  
each   segment.   A   business   offering   multiple   products   can   determine   if   the  
various   segments   should   receive   one   generic   product   (such   as   in   mass  
marketing),   or   if   each   segment   should   receive   a   customized   product   (multi-­
segment),   based   upon   the   market's   diversity,   maturity,   the   level   of  
competition  and  the  volume  of  sales  expected.’  
 
In   a   way   its   what   comes   before   positioning,   for   example,   think   of   the   class  
clown  to  the  jock  or  the  valley  girl  to  the  gothic  and  alternative  student.  Each  
of   these   general   stereo   types   dress   a   particular   way,   talk   differently,  
associate   with   one   another   differently.   You   can   see   that   we   experience  
“targeting”   from   the   earliest   moments   of   our   lives   for   later   positioning  
ourselves.  
 
 
There   are   4   ways   generally   to   target   the   consumers   these   4  
ways   are   shown   on   top.   The   targeting   gets   broadly   on   the   left  
and  narrow  on  the  right  therefore;;  ‘Undifferentiated’  marketing  it  
is  the  broadest  and  ‘Micromarketing’  it  is  the  narrowest  targeting  
strategy.      
 
 

 
  
Segmentation  
In   order   to   let   our   company   know   where   to   target   within   the  
market  as  a  market  strategy  we  should  first  analyze  all  the  types  
of   segments   there   are   in   the  
marketing  strategy.  
 
 
 
There   are   three   types   of  
market  segmentation  
 
 
 
 
 
 
 
Demographic  Segmentation:    
In  demographic  segmentation,  the  market  is  divided  into  groups  
on   the   basis   of   variables   such   as   age,   gender,   income,  
occupation  etc;;  these  demographic  variables  are  so  popular  with  
marketers  so  that  they  are  often  associated  with  the  consumer’s  needs  and  
wants.   Segmentation   variables   are   easily   measurable.   Here   are   the  
demographic  variables  have  been  used  to  segment  markets.  The  companies  
target  audiences  primarily  are  the  bachelors,  youth  and  the  professionals  Red  
Bull  segments  its  customer  base  by  age  as  follows  
•   Age:   16   to   30   years   –   they   account   for   the   major   share   of   the  
customer  base.  Below  16  –  They  account  for  most  of  the  sales  of  their  
other   line   of   products   of   red   bull   soda.   Middle   age   and   elderly   –   red  
bull   came   out   with   zero   calorie   and   special   edition   (cool   breeze)   for  
the  elderly  tastes.  
•   Gender:  They   mainly   target   males,   although   females   are   a   part   of  
their  customer  base    
•   Income:  Red   bull   associated   a   certain   luxury   with   their   brand   name  
and  hence  caters  to  a  segment  that  is  ‘well  off’  in  terms  of  income.  
•   Occupation:  Students,   bartenders   working   professionals,   sports  
enthusiasts,  athletes.  
 
Psychographic  Segmentation:  
It   is   the   science   using   psychology   to   better   understand   the  
psychology   of   the   consumers.   With   the   changing   marketing,  
Red  Bull  continuously  tries  to  cope  up  with  the  new  trends  and  come  up  with  
new  flavors  and  offers  to  attract  more  customers.  

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 Psychographic  segmentation  buyers  are  divided  on  following  ways:  
•   Lifestyle:  Business  class,  working  class  executives,  students  
•   Personality:  ambitious,  open  to  experience.  
•   Occasions:  Regular,  special.  
•   Benefits:  Quality,  
•   User  status:  regular  user  
•   Usage  rate:  medium  
•   Loyalty  status:  medium  Loyal  
•   Readiness  stage:  intending  to  buy  
•   Attitude  toward  product:  enthusiastic  
   
Geographic  Segmentation:  
Geographic   segmentation   is   done   using   the   spatial   location   to  
segment   the   market.   In   geographic   segmentation   there   are  
different   schemes   for   the   different   geographical   units   such   as  
states,   regions,   cities.   Markets   are   mainly   divided   into   the   rural   and   urban  
areas.   The   Geographical   variables   have   been   used   to   segment   markets   in  
following  ways:  
•   Area:  Red  bull  limits  itself  to  semi  urban  and  urban  India  as  that  is  their  
major  consumer  base  
•   City:  Class-­A  and  Class-­B  cities  i.e.  metro  politician  cities  
•   Region:  Distribution  of  Red  Bull  is  constant  across  regions  in  India  
   
 
Socioeconomic  Classification:  
The   people   belong   to   the   high   job   profile   with   efficient  
communication   knowledge   can   use   it.   The   purchase   potential   of  
this  product  is  limited  up  to  the  B1,  B2,  A1  and  A2.  
 
 
How  Red  Bull  created  its  Targeting  Strategy  
Red   Bull   used   really   great   marketing   strategies   to   target   its  
audience   that   would   drink   an   energy   drink   for   any   reason.   They  
have   worked   mostly   on   the   taste   of   it   which   for   most   of   the  
people   has   been   a   different   and   refreshing   taste,   they   have   also   created   a  
campaign   where   they   have   revolution   many   unknown   ‘extreme’   sports.   Red  
Bull’s  been  mainly  targeting  a  segment  of  18-­  to  34-­year-­old  men  based  on  
their  interests  being  outdoors,  taking  risks  and  having  fun.  The  brand  began  
sponsoring   “edge   sport”   athletes,   like   base   jumpers,   BMX   racers   and  
mountain  bikers,  as  well  as  “e-­sports,”  which  did  not  have  many  big  brands  
attached   to   them.   This   meant   Red   Bull   pulled   its   audience   in,   rather   than  
pushing  messages  out.  Even  though  these  were  niche  sports,  each  one  Red  

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Bull   picked   had   strong   audiences   and   followers   who   fit   its   target   audience  
profile.    
 
They   began   with   a   one-­year   shirt   sponsorship   for   an   Austrian   football   team  
and  first  entered  motor  sports  by  supporting  driver  Gerhard  Berger  in  1989.  
The   company   launched   in   America   in   1997   and   their   participation   in   action  
sports  particularly  motocross,  skateboarding,  surfing  and  BMX  has  cemented  
Red  Bull  as  the  most  popular  energy  drink  in  the  world  selling  over  5  billion  
cans   in   2012   alone.   In   2004,   just   12   years   ago   Red   Bull   had   bought   a  
Formula  One  team.  Today,  Infiniti  Red  Bull  Racing  is  the  leading  Formula  One  
team   having   recently   captured   their   fourth   consecutive   double   Constructors  
and  Drivers  Championships.  
 
Watch  almost  any  action  or  extreme  sport  and  you  are  bound  to  come  across  
a  Red  Bull  logo.  They  are  also  making  themselves  known  in  traditional  sports  
now  owning  a  string  of  soccer  teams  across  the  globe  including  the  New  York  
Red   Bulls,   and   sponsoring   professional   athletes   in   sports   such   as   tennis,  
basketball,  baseball  and  athletics.  
 
Red  Bull  created  a  category  for  their  Energy  Drink  as  a  party  energy  drink  by  
doing   targeting   the   festival   market   as   we   researched   Red   Bull   has   hosted  
more   than   10   festivals   every   year.   Red   Bull   had   great   success   in   hosting  
these   events   as   noticed   that   they   have   sold   about   190,000   tickets   and  
grossed  $  84.3  million  in  Coachella  as  one  of  the  largest,  most  famous,  and  
most   profitable   music   festival   in   the   United   States.   They   have   hosted   many  
others  having  similar  success  such  as  Coachella,  Hangout  Fest,  Bonnaroo  and  
Mysteryland   USA.   Red   Bull   with   their   targeting   strategy   has   created   a   knew  
trend   of   an   energy   drink   that   is   not   only   used   for   sports   but   also   for  
‘partying’  as  they  have  positioned  the  drink  in  the  cocktail  market  ‘giving  you  
wings’  
 
Red  Bull  is  a  giant  on  the  social  media  on  Facebook  they  have  reached  over  
40   million   subscribers   and   YouTube   over   5   million   subscribers.   They   have  
used   this   marketing   strategy   to   target   certain   costumers,   in   this   case   we  
have   noticed   that   it   sponsored   all   their   events   in   the   festival   and   sports  
category.   They   have   also   created   comic   animated   commercials   that   have  
targeted   not   only   the   festival   and   sports   segments   but   have   targeted  
broadest   segments.   They   have   concentrated   on   commercials   with   a   slogan  
that  says  ‘Red  Bull  gives  you  wings  and  they  have  associated  any  activity  that  
could   possibly   be   better   with   an   energy   drink.   Most   activities   relate   on  
focusing  the  more  energetic  you  are  the  more  you  focus.    

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We  have  set  up  a  questionnaire  asking  
people  in  which  occasion  people  use  Red  
Bull   and   most   people   have   answered   for  
many   of   the   segments   Red   Bull   has  
indeed   targeted   such   as   party,   sport  
and  study  
 
 
 
Differentiation  
Differentiation   is   aimed   at   the   broad   market   that   involves   the  
creation  of  a  product  or  services  that  is  perceived  throughout  its  
industry   as   unique.   The   company   or   business   unit   may   then   charge   a  
premium  for  its  product.  It  attempts  to  develop  products  that  are  unique  in  
the  industry.  This  is  something  that  red  bull  associates  itself  to.  They  charge  
a  premium  price  for  the  blend  and  taste  they  offer  in  their  drink.  Red  Bull  has  
benefited   from   pure   marketing   genius   because   it   has   created   a   category   of  
its   own.   Red   Bull   therefore   has   differentiated   a   lot   within   its   market   as   it   is  
not  really  considered  as  a  soft  drink  but  as  an  Energy  drink.  
 
 
MARKET  LEADER  
The   market  
leader   is  
dominant   in   its  
industry  and  has  substantial  
market   share.   A   market  
leader   generally   is   the  
industry   leader   in  
establishing   an   innovation-­
friendly   organization,  
developing   new   business  
models   and   new   products  
or   services.   It   has   cutting  
edge   technologies   and   innovative   business   processes;;   customer   value  
proposition  must  offer  a  superior  solution  to  a  customers’  problem.  Currently  
Red  Bull  is  the  largest  selling  energy  drink  in  the  world.  Every  new  entrant  in  
this  sector  looks  to  compete  with  it  someday.    
As   a   conclusion   it   is   hence   the   market   leader   in   the   categories   of   energy  
drinks   and   we   can   definitely   see   that   Red   Bull   has   achieved   their   targeting  

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strategy   and   positioned   all   their   marketing   skills   very   accurately.   Indeed,  
most  people  have  answered  to  the  questioned  why  did  they  choose  Red  Bull  
as  because  it  is  easy  to  find  and  ‘it  gives  you  wings’.  
 

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