BUS FPX 3030 Assessment 1 Product Analysis BUS-FPX3030 Fundamentals of Marketing and Sales

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Introduction

The slogan “Red Bull gives you wings” is familiar to most, whether from a Super Bowl commercial, spotting the Red Bull car on the freeway, or seeing it advertised at local bars. Historically, Red Bull has targeted adrenaline enthusiasts, athletes, and extreme sports fans. Our primary customer base consists of individuals aged 18 to 34, a demographic that not only loves Red Bull but also has a significant interest in coffee. This provides a strong foundation for introducing a coffee-flavored energy drink. To ensure the success of this new product line, we must adopt effective strategies to merge the popularity of our energy drinks with coffee preferences.

Product and Market

In 2021, Red Bull’s sales in the United States reached an impressive $1.53 billion. With the introduction of a coffee-flavored energy drink line, this revenue has the potential to grow even further. Our initial product offerings will include Cinnamon Latte, Café Mocha, and Blonde Roast Light flavors, targeted primarily at consumers aged 18 to 35. Research indicates that while over 80% of coffee drinkers brew their coffee at home, millennials are more inclined to purchase coffee at shops or drink it at work. Workers aged 18 to 34 spend an average of $24.74 weekly on coffee, while those 45 and older spend $14.15 (American coffee consumption by age group, Buy Organic Coffee, 2022). Combining the high consumption of energy drinks with the coffee preferences of this demographic offers a lucrative opportunity. Therefore, our marketing and product development efforts will focus on maximizing the appeal of this hybrid product for both age groups.

Branding, Audience, Packaging, and Positioning

Red Bull’s brand identity is already well established. Our iconic blue and silver can design is easily recognizable and trusted by consumers. For the new coffee line, we propose maintaining the same can layout but incorporating coffee beans into the design. This will preserve brand recognition while signaling the introduction of a new product. Keeping the tall, thin can design will also ensure that our packaging remains 100% recyclable and cost-efficient to produce.

The target audience for this new line remains individuals aged 18 to 35, with a focus on college students, parents, and a potential partnership with the Professional Golfers’ Association (PGA). As part of our strategy, we could visit five college campuses to offer students free samples of the new product. By combining the energy boost of our drinks with the taste of coffee, we provide a solution for those debating between coffee and energy drinks. Additionally, focusing on parents who attend sporting events opens a new avenue for growth. Similar to how children get excited about an ice cream truck, parents at sports events may appreciate the arrival of a Red Bull car offering coffee-flavored samples.

A partnership with the PGA also holds promise. Golf is a sport that typically requires 3 to 5 hours of play, leaving players exhausted by the end. A coffee-flavored Red Bull can provide the necessary energy for players to maintain peak performance during the game. Additionally, we could promote the product at national and international PGA events, as well as gather real-time feedback from attendees to fine-tune our marketing approach.

Product Strategies

To ensure the long-term success of this new product line, we can leverage existing strategies that have proven effective in the past. Our partnerships with college campuses across the U.S. can be expanded to include this new product. By offering free samples and collecting feedback through quick surveys, we can gauge consumer reactions and identify opportunities for improvement. This strategy will allow us to quickly assess the success of the new line and make any necessary adjustments.

Similarly, engaging parents at children’s sporting events can be a low-cost way to expand our reach without additional advertising expenses. By attending games in regions with high levels of youth sports participation, we can regularly introduce our product to new audiences, thus increasing our geographical reach.

A partnership with the PGA can further broaden our reach, particularly within the younger age group of 20 to 30-year-old golf professionals, who make up 32% of the U.S. golf population (Golf professional demographics and statistics, 2022). By energizing younger players with our coffee-flavored Red Bull, we can foster a connection between the sport and a new generation of fans. Offering product samples at local, national, and international events can also help build brand recognition within this demographic.

From a manufacturing standpoint, minimal changes will be required, as we plan to use our existing can design with a