Executive Summary
Red Bull has been inventive throughout its history, advocating a way of life rather than a commodity. As a result, the company’s digital strategy reflects its stimulating and revitalizing brand identity that promotes a modish and trendy image. Symbolically, the Red bull logo design resonates with its brand identity, with the red denoting desire and lust, while the blue symbolizes strength, confidence, and youth (Gorse, Chadwick & Burton 2010). It is vital to review its SWOT analysis and objectives to establish a suitable digital marketing plan.
Red Bull’s strengths include market share leadership, marketing innovation, consumer loyalty, brand equity, and brand identity. Its weaknesses include the high product price, lack of product patent, and health rumors. The opportunities include sponsorships, consistency, brand awareness, and innovation (Gorse, Chadwick & Burton 2010). On the other hand, the brand faces significant threats, including competition, sustainability over time, and the economic crisis (Barker et al. 2012). As a result, Red bull needs to introduce a new product to revive its target market and increase brand awareness. Introducing a new product in the market requires an effective digital marketing strategy, especially one that will ensure consumer loyalty and growth. Therefore, the company’s SMART objectives include:
- Increase Red Bull’s social media audience engagement by 25% within four months
- Increase the number of followers on Red Bull’s social media platforms by 25% during the same period.
- Increase the number of consumers by 25% by the end of the four months
- Grow the number of loyal consumers by 25% over the four months
Red bull will implement innovative digital marketing tactics to achieve the SMART objectives, which include:
- Establishing New Social Media Profiles and Grow the Existing Ones
- Influencer Marketing
- User-generated Digital Content
- Establishing a Streaming Platform
Introduction
In the age of the internet and rapid digitization, organizations must increasingly do more to rise above the noise to establish influence and brand originality. An organization’s messaging strategy and brand positioning greatly influence its performance hence digital platforms provide new avenues for firms to connect with their consumers and reap benefits in form of sales increase. Greater exposure and the ability to communicate with customers and develop a personal connection are now possible thanks to an abundance of digital channels (Barker et al. 2012). Brands must be as imaginative as possible when developing a digital marketing strategy. Simply following trends will no longer cut it; success now requires being one step ahead of the competition. Red Bull is a great example of a company that uses digital marketing to establish a brand that resonates with its target market.
The global market for energy drinks is a relatively new phenomenon. In 1984, Austrian-based Red Bull was founded, launching its initial sales in the Austrian market and establishing the market categories of energy drinks. Currently, over 168 countries worldwide have access to Red Bull, and the company sells over 30 billion cans annually (Kunz, Elsässer & Santomier 2016). It is interesting to note that despite the economic downturn, sales of energy drinks are on the rise, and with that, the Red Bull company. Increasing pressures at work and home may be to blame for this trend. Because of the popularity of energy drinks, the market is highly competitive (Kunz, Elsässer & Santomier 2016). New marketing and sales activities are needed to maintain Red Bull’s position as the world’s most popular energy drink even in the American market.
Research indicates that a third of the company’s total net profit is attributed to marketing activities. Consequently, the launch of a new product in the American market is associated with Red Bull’s use of cutting-edge marketing strategies. Over the year, Red Bull has maintained a favorable position in the market; hence new Red Bull Editions are a turning point in the company’s history (Gorse, Chadwick & Burton 2010). Launching a new product may significantly increase the company’s sales by raising brand awareness and increasing the number of consumers (Barker et al. 2012). It is crucial to point out that Red Bull is a marketing leader through its innovative marketing campaigns, which help the company maintain its position as a premium brand.
SWOT Analysis
Analyzing the internal and external environment is necessary before launching a new product. Therefore it is crucial to conduct an in-depth qualitative analysis of the company’s operational challenges, solutions, and projects. SWOT analysis is used to assess a company’s market position, current challenges, and potential opportunities that may arise from launching a new product.
Strengths
The energy drink market is one of the fastest-growing food and beverage industry segments. Soft drinks are on the rise despite the global financial crisis. Red Bull’s global market share and sales continue to expand every year, and it maintains its energy drink market-share leadership (Kunz, Elsässer & Santomier 2016). Another one of the company’s assets is its strong brand equity. The company has a broad range of high-quality products, including media outputs and the actual products themselves. Red Bull is well-known worldwide, increasing its following (Kunz, Elsässer & Santomier 2016). The product’s credibility rises as new customers promote it to their friends, who spread the word. Ultimately, brand awareness has led to higher market performance as a result.
In addition, the business has established a reputable brand identity in the marketplace. It is common knowledge that Red Bull is known for its unique and unconventional marketing communications and strategies. Their marketing tactics also incorporate fresh ideas that push the boundaries of what is possible and venture into uncharted territory. Event marketing creates customer loyalty by allowing consumers to experience a wide range of emotions and experiences (Kunz, Elsässer & Santomier 2016). Since Red Bull sponsors or supports so many various activities, its customers develop a strong sense of community and remain loyal.
Moreover, Red Bull greatly recognizes the need to use recyclable materials and the importance of environmental conservation (Kunz, Elsässer & Santomier 2016). Therefore, the company demonstrates corporate social responsibility by its customer-friendly handling of the aluminum material used to make Red Bull cans. Every can is made of recyclable materials.
Weaknesses
Red Bull is a high-end energy drink, which costs more than the other options. Many people have expressed concern about the beverage’s cost. Consumers should, however, be aware that a higher price is associated with better quality. Another flaw is the lack of a patent on the company’s content. There are no legal repercussions for making a similar product from a different company. Energy drinks with a similar flavor profile, but costing a fraction of what Red Bull does, have appeared on the market (Kunz, Elsässer & Santomier 2016). Moreover, claims about the negative health effects of energy drinks are frequently made by individuals. Such claims may cause significant barriers to the product’s purchases and consumption, whereby consumers may not want to buy it based on unsubstantiated rumors.
Opportunities
As a result of sponsoring a wide variety of extreme sports, the company may gain a wider audience since more and more people in Red Bull’s target demographic are becoming interested in extreme sports. In addition, the organization must adhere to a consistent marketing strategy to preserve its position as a leader in non-traditional marketing communication (Kunz, Elsässer & Santomier 2016). However, Red Bull has not introduced a new product to the market in recent years, yet alternative energy drinks are available in various flavors and styles from other companies (Kunz, Elsässer & Santomier 2016). Extending the product line logically extends to maintaining market leadership. Launching a new product will reach new clients and reinforce existing ones in the market. It would also increase brand awareness and competitiveness alongside a well-executed marketing campaign.
The brand’s future success hinges on its ability to remain innovative in its portfolio. The new product necessitates a rethink of the marketing strategy whereby traditional and non-traditional methods of promotion could be used with a new can, some of which have yet to be tried (Gorse, Chadwick & Burton 2010). As a result, new channels of customer interaction will provide an opportunity to improve the business’s overall image. In addition to boosting the company’s bottom line, the new product would increase the number of cans it sells (Gorse, Chadwick & Burton 2010). However, it must be expected that the new product will not take away from the present product’s market share to the greater amount.
Threats
A major threat facing many companies is sustainability over time. Competitiveness and sound decision-making are traits of a healthy organization that can sustain its market position. Red Bull was a pioneer in the energy drink market, whereby its introduction and implementation of all marketing operations was a first for the industry (Kunz, Elsässer & Santomier 2016). Over time, other companies have started to emulate Red Bull’s strategies, such as offering free product samples. In order to break away from the competition and come up with new and innovative concepts and campaigns, it is important to introduce a new product that will enrich Red Bull’s portfolio (Kunz, Elsässer & Santomier 2016). When a well-known corporation introduces a new product, the stakes are raised even higher in consumer expectations.
In addition, every organization faces the threat of competition. Thanks to their large range of offerings, many other energy drink firms are expanding rapidly. Companies have previously introduced new flavors to the market, and consumers might have their favorite flavor of choice selected in a competing company (Kunz, Elsässer & Santomier 2016). Another factor to take into account is the current economic environment. The current financial crisis has affected a significant portion of the target market, leaving them cautious with their expenditures.
SMART Objectives
The digital marketing plan’s main objective is to effectively raise brand awareness of Red bull and introduce the new product, Red Bull Lime, to the main target market, of American youth (Gorse, Chadwick & Burton 2010). The strategy will gradually develop a relationship with the target consumers, hoping for future product sales and development (Gorse, Chadwick & Burton 2010). Moreover, the digital marketing plan will increase Red Bull’s social media audience engagement by 25% within four months increase the number of followers on Red Bull’s social media platforms by 25% during the same period. Consequently, the increased followers and interactions will result in a rise in the number of consumers by 25% by the end of the four months and grow the number of loyal consumers by 25% through constant engagement and interactions online.
Digital Marketing Strategy
Market Segmentation
Market segmentation, targeting, and positioning define the specific population group that a company targets for its product sales by dividing the population into various portions. Segmentation typically involves dividing the population into sections based on particular characteristics, whereas targeting involves selecting specific groups identified during segmentation to sell the product. This marketing plan’s demographic, geographic, and behavior variables will determine Red Bull’s segmentation (Gorse, Chadwick & Burton 2010). Consumer needs and usage rates typically relate to age, gender, and occupations.
Age In America, the majority of the population is under 40 years, whereby as of July 2019, more than 50% of the entire population were under 40 years, with the percentage representing 166 million individuals (Statista 2022). A large percentage of that population is the youth, aged 15-35, who have the most dynamic daily life activities that typically require much energy, such as sporting and music events. Red Bull’s new product targets this market segment, as it is the most appropriate, and the brand promotes such consumers by sponsoring music concerts, sporting events, and social media (Gorse, Chadwick & Burton 2010). Such interactions will further bring the product closer to the consumers. Red Bull provides unique energy to its consumers. Research indicates that the majority of the consumers are athletes, active students, long-distance drivers, among other busy professionals (Gorse, Chadwick & Burton 2010). Such people usually suffer intense physical and mental stress; hence they need a unique drink that increases their concentration and productivity.
Behavior This segmentation focuses on the usage rate variable, whereby Red bull consumers typically fall into three usage categories light, medium, and heavy users. The current digital marketing plan will focus on the heavy users who bring in the most profit (Gorse, Chadwick & Burton 2010). The heavy users’ category is mainly men aged 18-35 years, and they provide the most demand for energy drink products.
Geographic Over the last two decades, America has witnessed steady growth in its urban population. Reports in 2020 indicate that more than 82% of America’s population lives in urban areas. Consequently, such urban dwellers usually have busier and more active lifestyles; hence they are more likely to need energy drinks (Gorse, Chadwick & Burton 2010). Moreover, Red Bull is among the popular drinks in pubs, nightclubs, and bars, common in urban areas (Gorse, Chadwick & Burton 2010). Therefore, the current digital marketing strategy targets rural areas to expand its market share beyond city areas.
Big Idea
The current big idea in the digital marketing plan involves creating an online campaign on various social media platforms that will promote the new red bull lime product. The campaign will begin with video content from the company that will provide a benchmark for subsequent contributions from consumers and fans in an online video creation challenge, such as the common TikTok challenges. The pioneering video from Red bull will involve content revolving around sports and events, whereby select athletes and performers will sip the energy drink before embarking on their performances (Gorse, Chadwick & Burton 2010). The target audience will be more engaged by the video content. Hence, the audience and branding are at the heart of the digital strategy that focuses on adding value to consumers’ daily activities that push sales. Therefore, the big idea will promote fresh, exciting, and current content that connects with the audience, growing the brand identity they have always known and the new product.
Digital strategy
The digital strategy involves effectively integrating digital technologies into the business model to create innovative differentiating business capabilities. It is crucial to present the digital marketing plan layout based on the RACE model that illustrates how the described big idea will reach, interact, convert and engage with the target consumer segments (Chaffey 2017).
Reach This involves establishing brand and product awareness such that the target audience and consumers can seek out the various digital presences that the brand provides (Chaffey 2017). Red bull will achieve the desired reach by expanding its current digital footprint. The company already has well-established Instagram, Twitter, and Facebook profiles that provide brand information to the consumers (Paquette 2013). However, it is crucial to identify other trending platforms, such as TikTok, one of the most prominent video-focused digital networking platforms that host various short videos. Alongside YouTube and Instagram, TikTok will provide a suitable platform for the marketing video content and allow the audience to interact, recreate and share the video, thus growing the brand’s reach and awareness.
Act This involves encouraging consumers to interact with the brand’s online content and share the experience with their social circles (Chaffey 2017). Video content guarantees audience interaction, and the consumers will likely act after engaging with the digital content. For instance, after posting the video content featuring athletes taking the new Red Bull product then embarking on their exciting performances, the brand will then encourage viewers to recreate the videos by recording themselves at their places of work or during leisure activities while taking the energy drink and post the videos online under the provided hashtag (Paquette 2013). This strategy will guarantee widespread action to bring the audience on board as brand ambassadors.
Convert This stage focuses on converting the online audience into paying customers. The company will provide web links on all social media platforms, redirecting the audience to the company’s website and subsequent e-commerce stores that sell the new Red Bull product (Chaffey 2017). Moreover, the company’s website provides information on accessing the products in retail outlets worldwide.
Engage After capturing the audience’s attention and introducing the product, it is crucial to establish a long-term relationship and constantly engage with the new consumers to grow into loyal clients (Chaffey 2017). Red Bull will achieve customer loyalty by maintaining a constant online presence. The company will reply to clients’ comments and questions posted on the social media platforms and provide regular social media challenges such as content creation where the audience can participate.
Digital Marketing Plan Tactics
The tactics to be implemented in Red Bull’s digital marketing plan are meant to achieve the following smart objectives.
Objective1: Increase audience engagement and expand Red bull’s digital brand
Tactic: Establish New Social Media Profiles and Grow the Existing Ones
The company currently has operational and verified Instagram, Twitter, and Youtube accounts that have always provided effective marketing communication. Therefore, the marketing team will only create a TikTok account and post more content on the existing accounts to grow the followers and impressions (Sanchis-Roca, Canós-Cerdá & Maestro-Cano 2016). Moreover, creating fresh content is a major component of the campaign, focusing on video content and interactive content creation challenges as part of the Red Bull Lime campaign.
Objective 2: Increasing Social Media Followers and New Consumers
Tactic: Influencer Marketing
With influencer marketing, Red Bull will successfully engage its target audience, hold their interest, and reinforce its customers’ good associations with the brand. The brand will partner with various high-energy influencers, most professional athletes and extreme sports personalities, in line with its high-energy focus (Sanchis-Roca, Canós-Cerdá & Maestro-Cano 2016). These Red Bull brand ambassadors will post videos of their training sessions and competitions on social media, allowing them to reach a wider audience and spread the Red Bull ideology while also building brand loyalty among their followers.
Objective 3: Increase Red Bull Lime’s Sales
Tactic: User-generated Digital Content
On its own corporate social media sites, the company will also use user-generated content to turn its digital followers into micro-influencers. As a result, customers and online fans will have a stronger sense of belonging, and the brand’s digital presence will have a more authentic feel (Paquette 2013). The company will also regularly hold the photo and video competitions, whereby participants include the products in their images. Extreme sports and adventure photography will focus on the competitions, which again links back to the brand’s principal marketing mission. Here, Red Bull demonstrates its inventive marketing strategy by transforming a simple idea into an effective campaign that attracts attention and encourages participation (Sanchis-Roca, Canós-Cerdá & Maestro-Cano 2016). The strategy will effectively increase sales as all participants in the campaign, and online trends will have to purchase the products for consumption as they record videos or take photographs.
Objective 4: Increase Consumer Loyalty
Tactic: Streaming Platform
For years, Red Bull has been well-known for its sponsorships of athletic events. However, it has carried this notion even further in recent years through its ever-growing portfolio of sports franchises, including Red Bull F1, football, and ice hockey teams (Sanchis-Roca, Canós-Cerdá & Maestro-Cano 2016). Marketing the company’s basic idea to existing and potential customers alike are made possible by this offline approach, which serves as a solid foundation for the enthusiasm generated by the company’s broader brand image (Sanchis-Roca, Canós-Cerdá & Maestro-Cano 2016). The beverage company employs this strategy to set itself apart from the competition and take control of the industry it has selected by emphasizing a distribution method that creates a sense of community among its customers.
Red Bull will now ensure that the excitement of its sporting events is also available online and can be enjoyed by digital audiences across the world. The company will establish its streaming platform, which can be accessed on TVs, mobile devices, and tablets, and provides coverage of live events and on-demand access to relevant sports, music, and entertainment material.
Control
It is vital to assess any digital marketing strategy and examine its performance concerning the SMART objectives to determine its success. The current plan will feature several assessment strategies to provide accurate insights on implementation and strategy outcomes. Since the current plan is mainly social-media-based, the sites simplify the analytics process as they provide analytics under every post (Evans, Bratton & McKee 2021). For instance, Instagram will provide analytics such as the number of accounts reached by every post, the impressions, profile visits, and content interactions. The Red bull marketing team will then record the analytics and assess the growth over the provided four months to determine the campaign’s success.
Moreover, web analytics such as google analytics, among other search engine site analytical tools, will provide quick audits and analytics on the company’s websites, offering data such as web traffic. Tracking web traffic over the four months will reveal the brand’s growth and increased reach (Evans, Bratton & McKee 2021). In addition, the company will record the sales made over the analysis period to track the increase rate and identify the number of repeat customers, indicating consumer loyalty. Consequently, the company will review each element of the digital marketing plan after the set four months to ascertain the achievement of each SMART objective.
References
Barker, M., Barker, D.I., Bormann, N.F. and Neher, K.E., 2012. Social media marketing: A strategic approach. CENGAGE learning.
Chaffey, D., 2017. Introducing RACE: a practical framework to improve your digital marketing. Smart Insights.
Evans, D., Bratton, S. and McKee, J., 2021. Social media marketing. AG Printing & Publishing.
Gorse, S., Chadwick, S. and Burton, N., 2010. Entrepreneurship through sports marketing: A case analysis of Red Bull in sport. Journal of Sponsorship, 3(4).
Kunz, R.E., Elsässer, F. and Santomier, J., 2016. Sport-related branded entertainment: the Red Bull phenomenon. Sport, Business and Management: An International Journal.
Paquette, H., 2013. Social media as a marketing tool: A literature review.
Sanchis-Roca, G., Canós-Cerdá, E. and Maestro-Cano, S., 2016. Red Bull, a paradigmatic example of the new communication strategies of brands in the digital environment. Revista Latina de Comunicación Social, (71).
Statista. 2022. United States – Urbanization 2020 | Statista. [online] Available at: <https://www.statista.com/statistics/269967/urbanization-in-the-united-states/> [Accessed 24 March 2022].
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