Red Bull Market Analysis

The instalment merely occupied 1% of the Australians non-alcoholic beverage market (in 2004). However, it is dominated by 2 main companies that argon cherry Bull and its rival V. The following table is the veritable chroma and value of this segment. Figure 1 Energy Drink Segment actual volume and value size The energy drinks market after initial fast development gave signs of some declines. This is most likely to be reversed, with outgrowth coming back in Energy Drink Segment.Figure 2 Australians non-alcoholic beverage growth rate In comparability with other segments, the Energy Drink appears to have rather high growth rate (13. %) seconds only to fruit and tea drink. Both market leaders invest heavily in marketing, said Red Bulls Ms Aldridge. In fact, Red Bulls marketing investiture for 2007 will reach record highs and will be increased to $33 million. This is an increase of 38% on 2006 and 65% on 2005. As strong as above-the-line advertising, Red Bull marketing dollars are continuously invested into consumer-focused events such(prenominal) as F1 and the Red Bull Air Race. It also invests in a sampling program and has found multi-buy promotions, whereby customers might buy two Red Bull cans for $5, or two Red Bull bottles for $6, to be super effective.Ms Aldridge also hopes that the launch of the Red Bull 355ml can prior this year will further increase convenience store sales and profits. Red Bull is consumed throughout the day and night with a higher(prenominal) proportion in the afternoon and evening, so it is a good estimation for store owners to check their stock levels at this time to avoid potential difference 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.