Red Bull Projections for 2012

Growth and Projections of the Energy Drink Market(Red Bull)

The energy drink market does not seem to stop its rapid growth. Energy drinks have made themselves a staple in certain sectors and has begun to branch successfully into several other niche sectors.

Now it seems there is a specific type for everyone. Although the growth of the energy drink market has slowed since the original explosion a few years back, it has yet to stop. It seems the market has been established and these drinks are here to stay. Despite the continual surfacing of numerous reports indicating the dangers of the high levels of caffeine in these drinks, it seems the energy drink companies feel the health dangers and concerns are worth the risk considering the massive profit.

After its birth in the US in 1997, this market grew to about 400 million per fiscal year by the year 2001. By 2005, it had reached about $4 billion and now that it's growing at an annual rate of approximately 12%, it is projected to surpass the $9 billion mark by 2012.
It is estimated that the current United States market share for Red Bull is approximately 40%, with Monster behind at about 23%, Rockstar at around 8% and Full Throttle in at about 4%. The general demographic for this market as a whole is under 35 years of age and predominantly male. Diet energy drinks as well as the natural and healthy alternatives are skyrocketing in sales as they're pulling the health and fitness market as well as the female and slightly older demographic.

Trends in the Energy Drink Market
The explosion of energy shots proves that this niche market boom is not ready to die down just yet. In 2008, sales of this specific sector of the market came in at approximately $560 million and continues to grow. These tiny 2 or 3 ounce drinks are selling for up to $3 per shot with 5-Hour Energy leading the pack in sales and popularity, and Red Bull Not far behind.
On the exact opposite end of the spectrum, we've seen a growth since 2002 of these drinks being packaged in larger cans. Many countries (including the U.S. and Canada) have limited the amount of caffeine per serving in these drinks. In response to this, we've seen many companies (including Monster and Rockstar) sidestepping this by simply packing two servings into one can.
2007 saw the emergence of energy powders and tablets marketed as the more convenient and portable form of energy for athletes and people on the go.

 

Integrated markting

Integrated markting

Definition:  Integrated Marketing Communications is the careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

In order to keep sales up and consumer intrest in the product and the company itself;Red Bull uses differnet promotional mixes to convey the company's many messages for instance; Product Placement is a well used method by Red Bull. The company assiocates and places it's logo in demogracphics such as mountainclimbers, Bikers, snowboarders, team sports, or any physical activity which helps convey the company's ideal image which is being active and drinking thier product while doing so.

Contact point #1- Consumers themselves- To keep consumers happy not only with the product but also the company itself Red Bull launched a innovative contest.

"Advertising: anyone can do it". At least Red Bull believes this, which is why they’re inviting the Joe Nobodys of the world to pitch ideas for their “Best Ad Contest,” an online effort where people can submit their scripts and vote for their favorites.

 

Contact point #2- non-consumers ...(yet anyway)-Red Bull uses every means of marketing to reach their target groups and potential ones as well. Their marketing is mainly based on the “3 pillars of Red Bull; Sampling, Advertising, Sponsoring”. This means that next to normal advertisements, they drive around in Red Bull –modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.

Contact point #3-Televsion-Red Bull knows what it's getting into. Over the years, it has produced TV programs (No Limits on ESPN), films (That's It, That's All), magazines, a website, and a steady diet of Web videos featuring snowboarders, rally cars, surfers, cliff divers, and concerts to sell its active lifestyle through mass media.

 

Contact point #4-Internet(Facebook) If anyone where to post a comment with the words "active,energy, drink,red, bull ext. a Red Bull app would appear and allow facebookers to like the app and acquire all Red Bull info, be qualified for premiums, and recieve Ads for the product as pop-ups or videos.

Integrated markting

Definition:  Integrated Marketing Communications is the careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

In order to keep sales up and consumer intrest in the product and the company itself;Red Bull uses differnet promotional mixes to convey the company's many messages for instance; Product Placement is a well used method by Red Bull. The company assiocates and places it's logo in demogracphics such as mountainclimbers, Bikers, snowboarders, team sports, or any physical activity which helps convey the company's ideal image which is being active and drinking thier product while doing so.

Contact point #1- Consumers themselves- To keep consumers happy not only with the product but also the company itself Red Bull launched a innovative contest.

"Advertising: anyone can do it". At least Red Bull believes this, which is why they’re inviting the Joe Nobodys of the world to pitch ideas for their “Best Ad Contest,” an online effort where people can submit their scripts and vote for their favorites.

 

Contact point #2- non-consumers ...(yet anyway)-Red Bull uses every means of marketing to reach their target groups and potential ones as well. Their marketing is mainly based on the “3 pillars of Red Bull; Sampling, Advertising, Sponsoring”. This means that next to normal advertisements, they drive around in Red Bull –modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.

Contact point #3-Televsion-Red Bull knows what it's getting into. Over the years, it has produced TV programs (No Limits on ESPN), films (That's It, That's All), magazines, a website, and a steady diet of Web videos featuring snowboarders, rally cars, surfers, cliff divers, and concerts to sell its active lifestyle through mass media.

 

Contact point #4-Internet(Facebook) If anyone where to post a comment with the words "active,energy, drink,red, bull ext. a Red Bull app would appear and allow facebookers to like the app and acquire all Red Bull info, be qualified for premiums, and recieve Ads for the product as pop-ups or videos.