Red Bull Market Analysis

The segment only occupied 1% of the Australians non-alcoholic beverage market (in 2004). However, it is dominated by 2 main companies that are Red dirt and its rival V. The following table is the actual volume and value of this segment. Figure 1 Energy toast Segment actual volume and value size The energy drinks market after initial fast growth gave signs of some declines. This is most likely to be reversed, with growth coming back in Energy Drink Segment.Figure 2 Australians non-alcoholic beverage growth rate In analogy with other segments, the Energy Drink appears to have rather high growth rate (13. %) seconds only to fruit and tea drink. Both market leaders cast heavily in marketing, said Red tinkers damns Ms Aldridge. In fact, Red Bulls marketing investment for 2007 will advert record highs and will be increased to $33 million. This is an increase of 38% on 2006 and 65% on 2005. As well as above-the-line advertising, Red Bull marketing dollars are continuously invested in to consumer-focused events such as F1 and the Red Bull Air Race. It also invests in a sampling program and has found multi-buy promotions, whereby customers power buy two Red Bull cans for $5, or two Red Bull bottles for $6, to be highly effective.Ms Aldridge also hopes that the launch of the Red Bull 355ml can earlier this year will further increase convenience store sales and profits. Red Bull is consumed throughout the day and night with a higher proportion in the afternoon and evening, so it is a good idea for store owners to check their stock levels at this time to avoid probable out of stocks and missed sales opportunities, Ms Aldridge said. Despite only occupying only a small segment in the beverage market, this is an interesting segment to be considered for investment.