Red Bull Segmentation Targeting Positioning Essay
By applying market segmentation, targeting, and positioning (STP) model into Red Bull Company, we can differentiate what Red Bull need to do to recover from dropping in sales (Kotler, 2009, p. 217). First of we need to find out what is the problem, second how to tackle that problem, and take action. STP is a way to solve the problem facing Red Bull. We would like to produce two new products which are (1) drink of the night and (2) healthy bull. We segment demographically in ages (13-35) and (36-60). Behavior wise, customers all over the world has to view Red Bull as an energy drink which is energetic option whenever and wherever we drink it.
Attitude toward the new products of Red Bull has to be excellent value product (Value= Benefit- Cost). Without disturbing the current Red Bull image, we will manufacture new products which target 13-35 and36-60 ages groups. Although we separated two opposite products, customers can expect same value from Red Bull. Depending on the demand, we will produce 3 types of can (light, medium, heavy). First, drink of the night, is mainly for mixing with alcohol without reducing the flavor. First product has specialty of extreme reduce in stress and make you awake the whole night.
Second, healthy bull, target middle age and elder people who are able to drink other products of Red Bull. Second product contains high level antioxidant and low risk. Red bull is high position not only in Australia but also in other countries. The new products’ size and taste (flavor) should attract more customers who haven’t tried any of Red bull products. First of all, we should make customer aware of the new products that red bull is superior to other competitors. Second, we need to advertise them with customer’s already aware programs (Red Bull Girl and extreme program).
Last but not lease, we need to let initiators know the true worth of Red bull and adapted to the new products. Since Red Bull is well known all over the country, first product should persuade customers over competitors. However, second product has a lot of competitors which are already existed in healthy market such as green tea. By using the differentiate market coverage strategy, we can target two different age groups. Although positioning in existing market is difficult, Red Bull can definitely increase its sale again with the above two products and strategy.