Red Bull Market Share
Red Bull launches the energy drink market since it was established in 1990s. Now it is a dominant brand in the North America market. Red Bull succeeded to leave behind even brands marketed by such companies as Coca-Cola and PepsiCo. Red Bull market share, as that of a market leader, is 50%. The second place is occupied by Hansen Natural Corporation who gave us such popular brands as Monster and Lost. It has 18% of market share. PepsiCo and Coca-Cola own 10% and 7% accordingly.
Even huge financial resources didn’t help Coca-Cola and PepsiCo prevent Red Bull’s invasion on North American market. Niche brands have cachet that certain consumer segments value. Mainly it has happened due to the so-called Generation Y. They exhibit less loyalty and are less interested in popular brands. These people like to try new things marketed by less conventional methods and prefer to learn about new brand from friends instead of media advertising campaigns. That is why popular mainstream brands lose ground to niche brands in various beverage and food categories.
Urban males of 16 – 29 years old are the consumers that energy drinks are targeted at. They are interested in challenging recreational endeavours and extreme sport. To be associated with “risk takers” Red Bull had become linked with Formula 1 racing. The brand now owns Red Bull Racing. It also sponsors such popular F1 racers as Mark Webber and Sebastian Vettel.
Red Bull is also associated with extreme sports including skydiving, paragliding, hang gliding, and BASE jumping. If image is everything, Red Bull has it in spades!
Until the big companies like Coca-Cola and PepsiCo weren’t participants of energy drinks market, building and protecting of Red Bull market share was relatively easy. But now there are new challenges the company has faced. The niche has now expended and appealing to “brand haters” becomes harder when you are the leader of the market. Red Bull will have to work harder to broad target market and find new consumers. Lower prices offered by new brands make Red Bull adjust its marketing strategy in order to survive.