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Sunday, 6 November 2011

Red Bull Brand Strategy: New Product Categories

1) Red Bull Energy Plasters
Red Bull should also consider introducing a new product category of Energy Plasters. Building on the trend of healthy living, energy plasters can possibly become a big hit with consumers. The concept of energy plasters is derived from medicated plaster brands such as Tiger Balm and Salon Pas, which are effective in the relief of aches or pains of muscles and joints when pasted on the affected skin area.

Red Bull Energy Plasters will retain the same properties as Red Bull energy drinks, which enhances performance and provide energy boost. When adhered to the body, energy plasters will enable the user to absorb the energy-boosting properties effectively.

Health-conscious consumers who need an energy boost may not be receptive to consuming energy drinks on a regular basis. This is due to the fact that they are skeptical of the properties in these drinks and are worried that there may be ill effects. Energy plasters can then be a good alternative as they are used externally instead of consumed. Also, the easy usage and storage of these plasters makes it convenient for consumers to enhance their performance anytime they want, especially in view of their busy lifestyles.

2) Red Bull Powder Sticks/Tablets
Since consumers in Singapore are unlikely to have time for exercise or nutritious meals due to their hectic lifestyles, the need for health supplements is even greater. Red Bull should tap on this demand for health supplements by extending its product line to offer healthier products in the form of energy powder sticks and tablets. Red Bull can launch energy powder sticks and tablets with healthy and all-natural ingredients such as ginseng, cordyceps, vitamin C, to help enhance consumers’ well-being while giving them the energy they need. 
Being time-pressed and wanting to see quick results, consumers typically want products that are easy to consume. Having energy powder sticks and tablet products offer great convenience for consumers, as they are able to consume the product immediately. Moreover, energy powder and tablets are small and light, making it easier for consumers to carry them around easily. When in need of an energy boost, consumers can simply consume the powder or tablet, making the consumption process a hassle-free one.

It is imperative that Red Bull retains its image of a lifestyle brand that appeals to the extreme crowd when building associations to health and wellness through the execution of product line extension and new categories introduction strategies. This is to ensure that Red Bull’s brand value will not be diluted. If Red Bull can achieve this, the brand will be able to maintain its position as market leader in the energy drink product category and establish a foothold in new product categories through the growth strategies proposed.

Red Bull Brand Strategy: Product Line Extension

1) Energy Drink with Health and Wellness Benefits
Seeing as to how consumers increasingly value the importance of a healthy lifestyle, Red Bull can extend its product line to include energy drinks which provide health and wellness benefits. Coupled with hectic lifestyles, this has led to consumers requiring a convenient one-stop solution - drinks that enhance performance and provide health benefits at the same time.

It is proposed that Red Bull launch an energy drink product line that uses natural ingredients and nutritional supplements such as vitamin C, which can provide energy as well as other functional benefits such as increased memory, stress relief, and boosting immunity among other numerous benefits. This new energy drink product line should also be formulated with dietary supplements like ginseng and glucosamine that appeals to older and more health-conscious consumers.

Such a product line would help Red Bull meet the changing demands of consumers and remain competitive in the energy drink market. Also, it would allow Red Bull to promote a healthy lifestyle and address the various health issues that Singaporeans value.

A few examples of the energy drinks in the proposed product line are shown below:

Red Bull Vitamin C – Vitamin C is an essential nutrient to boost the immune system for all age groups. Hence, this drink would provide multiple benefits to revitalize the skin as well as boost one’s energy. 

Red Bull Memory Boost – It includes Gingko Biloba which helps to improve memory and also promote overall mental health. Students and older consumers who wish to boost their mental health or improve their memory task performance will enjoy this drink.

Red Bull Stress Reliever – In today’s society, people are often stressed over their work. Red Bull Stress Reliever includes Ginseng that helps to relieve stress and increase one’s energy level at the same time.


2) Red Bull Energy Drink for Females
Females in Singapore are highly image-conscious and seek drinks that improve their inner well-being. This is evident from the wide variety of different types of diet and collagen beverages, which promise improved beauty benefits. As such, Red Bull can consider a product line extension that provides energy drinks specifically targeted at the females. With a large female population on Singapore, this market represents immense growth potential, which Red Bull should definitely capitalize on.

Furthermore, energy drinks are predominantly seen as a more masculine drink, and none of the competitors in Singapore have yet to create energy drinks that specifically target the females. Therefore, Red Bull would have a first mover advantage in entering this new market segment.

One of the products Red Bull has introduced recently is “Red Bull The Red Edition” which is targeted at the females. However, this product is only limited to certain markets and not distributed to all international markets. Red Bull should further leverage on this product and introduce it to the Singapore market as well. The sleek and bright coloured packaging would capture the attention of the female consumers and generate greater interest among them to try the product.

Apart from introducing the Red Edition, Red Bull Singapore should also invest in research and development to create energy drinks that contain antioxidants or collagen, which provides anti-aging and beauty benefits.  Since females generally value beauty, such drinks would help them in achieving their aims of maintaining good looks and preserving their youth.  Also, females in Singapore are generally conscious of their weight. Hence, low calories energy drinks can also be launched to entice weight-conscious females to consume the energy drinks.

A few examples of the energy drinks in the proposed product line are shown below:

The Red Edition: Young Forever - In today’s society, women are increasingly more concerned about their looks. With unhealthy diets and a stressful fast-paced life, the skin of women age at a much faster rate than before. Young Forever contains ingredients rich in anti-oxidants and collagen to help slow down the process of aging and to keep consumers physically and mentally youthful and vibrant.

The Red Edition: Indulge - Weight has always been a sensitive issue for women. Women have gone through massive amounts of pain, effort and perseverance to maintain their weight. Energy drinks typically contain large amounts of calories per serving which is something that weight-conscious female consumers abhor. As the name suggest, Indulge is a low-calorie drink, which allows females to enjoy their energy drink without any worries about their calories intake.