Developing a Marketing Strategy for Red Bull's Soft Gums Product

This report delves into the marketing strategy for Red Bull's new Soft Gums, an innovative product designed for rapid energy activation. It highlights the product's advantages, such as its quick 5-minute activation time compared to traditional energy drinks and capsules, and its convenient pocket-style packaging. The report outlines the segmentation strategy, primarily focusing on geographical, demographic, and psychographic factors, targeting young, single, and professional individuals in urban areas with active lifestyles. It emphasizes the importance of targeting students and young professionals, positioning the Soft Gums as a convenient and effective alternative to canned energy drinks. The branding strategy leverages Red Bull's established brand recognition through the name 'Redbull Cogito,' aiming for quick market acceptance and reduced advertising costs.

Product
Soft gums are new alternative in Red Bull products range and their main advantage
is the time of activation. While energy drinks and capsules start to work in around 45
minutes the new soft gums activate in just 5 minutes.(Kallmyer,2018). Ultrafast
penetration and efficiency come from ingredients glycerol and high caffeine
concentration. Just two soft gums provide 100mg caffeine while average 250ml
energy drinks contains around 80 mg caffeine.(DeNoon,2012). Also, the form of new
product is design for the accurate dosing without side effects. Soft gums are packed
in pocket style blisters which is much more convenient then carrying cans of drinks.
Taking into account different customers tastes soft gums will come in three flavours:
Mint, Tutti - Frutti and Cranberry.
Segmentation
Segmentation for new soft gums will be mainly divided by geographical,
demographic and psychographic factors. According to Red Bull GmbH Report(2016),
this particular brand appeal mainly to young ,single and professional people living
independently in big cities on high income. While young professional and childless
couples aim for flavours and sugar free edition of this popular drink, students seem
to pay attention to effectiveness and stick with classic version of Red Bull. Common
denominator for those individuals is very active personal and private lifestyle but also
interest in extreme sports. The age range of Red Bull consumers vary between 16 –
40 years old with high degree of loyalty to the brand.(Dudovskiy,2016).
Targeting
Significantly majority of groups mentioned in Red Bull GmbH Report are students
and people connected with higher education therefore main target group for new soft
gums. For many young people going into college is the turning point in their live. In
this challenging environment they more likely to look for products that will help them
to keep up their energy levels during long day. Most of the students and young
professional are situated in the campuses and cities where their life style is set
around tight schedules and deadlines. Offering them product which works eight time
faster than typical high energy drink will set new trend. As well these particular
customers are open to new, innovate products which come from world famous brand
they trust. Consequently, it seems that targeting students and young professional to
be the best choice.
Positioning
A product position depends on how consumers perceives brand while comparing
with competitors.(Kotler,Armstrong,2018). Customers are likely to get product that
will help them to keep up energy levels during their busy schedule from the
convenient stores and vending machines based around campuses. All high energy
drinks have to be kept in the fridge while new soft gums can be placed anywhere,

and storage will be convenient. Unique and innovative soft gums are the only
alternative for canned energy drinks offered on campuses. Consider their pocket
style and super-fast activation time soft gums are most likely to gain competitive
advantage in the market in short time. Also, by engaging students as brand
managers will make effective way to differentiate the new soft gums on a personal
level.(Glassdoor,2019).
Branding
Red Bull brand its well know around the world and people associate the name with
high energy drinks and extreme sports, therefore choosing name for new invention
its critical. Soft gums are brand extension and develop under new product category
as Captagels Soft Gums Technology. Operating under Redbull Cogito name gives
this new product advantaged of instant recognition and quicker acceptance among
its customers. Also, reduce the cost of advertising needed in case of establishing
new brand.(Claessens,2015).
Claessens, M./ Marketing – Insider (2015) BRANDING DECISIONS – 4 BRAND
STRATEGY DECISIONS TO BUILD STRONG BRANDS. Available at:
https://marketing-insider.eu/branding-decisions/ (Accessed:03/03/19).
DeNoon, D./ WebMD (2012) How Much Caffeine Is in Your Energy Drink? Available
at: https://www.webmd.com/food-recipes/news/20121025/how-much-caffeine-
energy-drink#1 (Accessed:01/03/19).
Dudovskiy, J./ Research Methodology (2016) Red Bull Segmentation, Targeting and
Positioning. Available at: https://research-methodology.net/red-bull-segmentation-
targeting-positioning/ (Accessed:01/03/19).
Kallmyer, T./ Caffeine Informer (2018) Caffeine Metabolism. Available at:
https://www.caffeineinformer.com/caffeine-metabolism (Accessed:01/03/19).