- BUS FPX 3030 Assessment 1 Product Analysis.
Product Analysis: Red Bull’s New Coffee Energy Drink Line
Red Bull, which dominates the market of energy drinks, is planning to launch a new line of products that will contain an element of coffee. Examining this study in the context of this new line with regards to the product possibility map, it shows the possibilities of this new line as relates to the product itself, its target market, its branding, its packing, and most importantly, ways the business can be made a success.
It is in this categorization that P&G will introduce three tastes in the planned line of coffee energy drinks, which include Cinnamon Latte, Cafe Mocha, and Blonde Roast Light. This review shall consider these new goods against the background of Red Bull’s current brand persona and market position.
Analyze a product and its target market
What is more fitting than Red Bull to make a line of coffee-flavored energy drinks to tap into this trend? This line of products should occupy the position between the usual energy-containing drinks and coffee. It targets individuals who want a coffee kick and the additional components associated with Red Bull’s formula. It is therefore expected that the Red Bull coffee energy drink target group will consist of sporty adult individuals (18 to 34 years), male or female, and those who have extra expendable income (Red Bull, 202`).
Some of these people are currently Red Bull customers, and some may be people drawn towards this drink because they are coffee lovers in search of something different from their normal coffee products. It is a radically new twist on Red Bull and coffee products because it contains the performance-enhancing Red Bull mix and real coffee flavors, making it a blended item that is not just an energy drink or a coffee.
BUS FPX 3030 Assessment 1 Product Analysis
The main targeted consumers are informed, dietary-conscious, time-poor, and choosy consumers from the dominant culture or trend. They likely enjoy sports, going to the gym, working a lot, and enjoying coffee, but they need something more than caffeine. These are often anonymous business people or university students rushing through the day needing a fast energy lift as well as the coffee and tolerating newer and different products, especially having been defined by the reputable providers/brands they identify with (Heckman et al., 2010).
Of course, Red Bull may be missing other opportunities with other groups, for example, older or baby boomers who may also enjoy it and caffeinated energy drinks (Ries & Trout, 1994). This could, however, be viewed as a drawback because it limited the market audience that would be able to afford the new line of products. Sensitizing the product to people of more than one age in the target market would make the product look more attractive, and therefore people will buy more of it (Mordor Intelligence, 2023).
Analyze Branding of A Product, Including The Intended Audience, Packaging, And Product Positioning
Presumably, Red Bull’s branding policy for a new series of coffee-flavored beverages will continue from the company’s strong branding concept while incorporating features that will appeal to coffee enthusiasts. This means that the target market of this line of products comprises consumers who already patronize Red Bull and those who are coffee consumers seeking power-infused coffee.
Indeed, using Red Bull can easily be associated with success, energy, vigor, and much more. It is in the marketing of the new line of coffee energy drinks that the brand remains very close to these ideals, though accompanied by images and words associated with coffee. The brand could add “Red Bull Coffee” or “Red Bull Cafe” to the name to show that it is an extension of Red Bull, which is an energy drink mixed with coffee (Keller, 2013).
To ensure it is unique and that people remember the brand, the new coffee energy drink line should use Red Bull Slim making cans. However, deep reds, rich browns, and creamy creams that may be associated with coffee shall be used to give the coffee line a unique brand that will distinguish it from the other Red Bull products.
To guide those who might find it hard to distinguish between the flavors, Cinnamon Latte should have a red accent, Cafe Mocha should have a green accent, and Blonde Roast Light should have a grey accent. It could be beans of coffee or anything related to coffee, in addition to being partly blended with Red Bull’s name and bull symbol. This combination of images would show what makes the product special: it is both coffee and energy drinks, as some researchers suggested (Underwood, 2003).
BUS FPX 3030 Assessment 1 Product Analysis
It makes perfect sense for Red Bull to advertise its new products as expensive concoctions for those willing to get the famous Red Bull energy rush empowered by the real coffee taste. It could say, “Red Bull Coffee: Premium Energy, Rich Flavor.” When taken, this position would put the product out of the common coffee options and the normal energy drink options. Coffee consumers who look forward to consuming more than just a source of energy would like the product, as would consumers of energy drinks who want a different taste of their brands (Kotler & Armstrong, 2021).
According to this model, Red Bull’s entrance into the coffee-flavored energy drink market will greatly impact that product category. The problem with this combination category is that Red Bull, the market leader in energy drinks, has done this: it could make this new type more legitimate and expand it, which would make other companies do it as well. There is a very strong connection between the brand and activities such as extreme sports and high-energy activities. It could also shift the coffee drink market by targeting younger and more prosperous people and engaging people who enjoy taking coffee-flavored drinks.
This could make some distinctions between the energy drink and the coffee drink blend, thus coming up with a new group with the features of the two. Red Bull can also launch coffee-flavored energy drinks to the global market quite effectively and very soon change the dynamics and availability of these goods to make the market evolve. This could make the area more creative, with other manufacturers developing their form in an attempt to rival Red Bull (Heckman et al., 2010).
Synthesize Product Strategies to Achieve Business Success
The following product strategies can help Red Bull succeed with its new range of coffee-flavored energy drinks. First of all, it is essential to emphasize the distinction, for example, emphasizing that Red Bull’s special energy blend is blended with the highest quality coffee in a way nobody else does. This approach to difference will set the product apart from other products in the energy drink and coffee products. So, as the company targets selective consumers of coffee, it may fearfully highlight the usage of quality coffee grains and natural flavors while maintaining energy-enhancing claims (Lamb et al., 2021).
Second, it is the plan for the line extensions that Red Bull ought to contemplate. Beginning with three: Cinnamon Latte, Cafe Mocha, and the Blonde Roast Light, the foundation is laid to include others. A perfect example is that Red Bull could produce flavors that are seasonal or even limited in stock to bait people into buying them once more. This plan aligns with how the company has been introducing new tastes to its large portfolio of energy drinks (Kotler & Keller, 2016).
Red Bull can also consider creating a co-branding where it partners with famous coffee makers/roasters who will help cement Red Bull’s brand amongst coffee lovers. This could mean jointly developing products for limited edition tastes or creating products that call for the best in both alphabets. The marketing plan should clarify that the product offers two benefits: more energy and great flavor in the coffee. They can create ads of how the product can be used instead of both coffee in the morning and an energy drink that would be economical and time-saving to consumers (Aaker, 2012).
BUS FPX 3030 Assessment 1 Product Analysis
Because this is a new taste blend for Red Bull, we will need to make big tasting programs. The company could leverage the position with events and places to offer tastes of the new coffee energy drinks and create brand experiences that people would not forget. Secondly, Red Bull should also apply the new line of products to its digital marketing. This could feature social media events, promotions, or the involvement of influencers, and possibly a soon-to-be mobile application that makes the consumption of alcohol enjoyable or provides privileges every time one purchases something (Chaffey & Ellis-Chadwick, 2019).
With increasing awareness of the effects of environmental pollution, Red Bull could inform people that the coffee-making beans are from a reputable source and the packaging material used is environmentally friendly. This might include such things as reusing the cans through certain programs or directly linking the company with coffee farmers. Since the crowd could be a possible target market for Red Bull in the future, Red Bull could consider how the company could diversify its programming in the future. For instance, they extended customers’ options and allowed them to vary the caffeine content of coffee energy drinks in hot and cold forms. This could be achieved using vending machines or through partnerships with coffee shops and grocery shops (Kumar & Reinartz, 2018).
Under these tactics, there are some theoretical reasons why they are likely to succeed. First, they use Red Bull’s skills in marketing and sales to extend them to a new population. The experience of the company that has always employed the strategy of events and other forms of interactive marketing to make individuals open to the new goods is what will be unlikely to help make people try this new flavor. Second, the diversity plan fits the gap between energy and coffee drinks, which could be used by Red Bull to capture a new category.
Red Bull can maintain its brand image and possibly obtain higher prices by positioning itself as one of the best in this segment. Third, in emphasizing the quality and genuineness of the sweater tastes, the coffee provides enough proof to skeptical fans as a key audience that the product is different from Red Bull and appeals to audiences who are not usually Red Bull consumers. Finally, the decision to focus on customization and sustainability corresponds with modern trends, including those concerning young people, which will allow the new product line to retain customer confidence in the future (Euromonitor International, 202`).
As for the long term, Red Bull’s leaders should think about sustained innovation. The company should consider continuously introducing new flavors, periodic offers, and special editions of the products to the market. A market study should be done all the time because people’s preferences for energy drinks and coffee are constantly evolving. This is perhaps because, in an endeavor to sustain the quality, you should establish a good rapport with sellers of coffee and how one can get special forms of beans.
It is also crucial that Red Bull continue to do this now that the product is becoming more like coffee, and there might be changes made to the law in some countries about the amount of caffeine in energy drinks or the components that can be put into the product. One way to appeal to a health-conscious customer base, coffee energy drinks should consider making a blend with less sugar or some that contain natural products. As Mintel (2023) put it, recipes for coffee and marketing strategies should be adapted for consumption by the global population.
Conclusion
In the current emerging market strategies, Red Bull has introduced coffee flavors to its energy drinks to expand the variety of products it offers and take advantage of the growing market for new coffee products. Red Bull could create a new line of products that are more like energy drinks but less like coffee, using the company’s brand name and hefty distribution and marketing capacity. Taking into account the nature of the product and its target market, the conclusions show that it targets young and busy individuals who prefer the taste of coffee and the energy rush that follows Red Bull.
This approach is apt to sit well with Red Bull’s main target group, though they might occasionally find ways of getting their message across to people in other age groups. The branding and packing ideas are to retain Red Bull’s familiar appearance, which, at the same time, would make coffee a component of the new products. By adopting this so logical approach, you should be able to attract everyone, from Red Bull devotees to coffee lovers.
There are suggestions for product strategies such as differentiation, line extension, and experience marketing. They extend from Red Bull’s core competencies yet address the challenges of introducing a new taste. All these tactics align with the coffee energy drink line’s growth and development in the short and long term based on product quality, sustainability, and innovation. As Red Bull moves into this new line of products, it will have to engage in market research, adapt to the market, and continually put emphasis on quality in their products if they have to compete in the coffee and energy drink markets. Read more about our sample BUS FPX 3030 Assessment 2 Place Analysis for complete information about this class.
References
Aaker, D. A. (2012). Building strong brands. Simon and Schuster.
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing: strategy, implementation and practice. Pearson UK.
Euromonitor International. (2023). Energy Drinks in Global. Retrieved from Euromonitor Passport database.
Heckman, M. A., Sherry, K., & De Mejia, E. G. (2010). Energy drinks: an assessment of their market size, consumer demographics, ingredient profile, functionality, and regulations in the United States. Comprehensive Reviews in Food Science and Food Safety, 9(3), 303-317.
Keller, K. L. (2013). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education.
Kotler, P., & Armstrong, G. (2021). Principles of Marketing (18th ed.). Pearson.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy, and tools. Springer.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2021). MKTG 13 (13th ed.). Cengage Learning.
Mintel. (2023). Energy Drinks – US – 2023. Retrieved from Mintel Reports database.
Mordor Intelligence. (2023). Energy Drinks Market – Growth, Trends, Covid-19 Impact, and Forecasts (2023-2028). Retrieved from Mordor Intelligence database.
Red Bull. (2023). Discover the World of Red Bull.
Ries, A., & Trout, J. (1994). The 22 immutable laws of marketing: Violate them at your own risk! HarperCollins Publishers.
Underwood, R. L. (2003). The communicative power of product packaging: creating brand identity via lived and mediated experience. Journal of Marketing Theory and Practice, 11(1), 62-76.