segmenting, targeting, and positioning

Segmenting, targeting and positioning

 

Segmentation involves dividing the whole market into small segments of  targets groups having similar traits and features.

Through clever market segmentation, where they focused on extreme sport and clubbing, they made it possible to price a premium for the product. Traditionally the soft drink market had not competed on price; a can of Coke was sold at the same price as a lesser known brand. Red bull managed to avoid this price boundary when defining the new energy drink market within the soft drink market. A newly defined niche market made it possible for price discrimination to capture the higher willingness to pay.

 

TARGETING

Targeting means the market that company aims to cater to.

Who does Red Bull target ?

The core target group includes males of 18-37 of age.

Aims to capture people who really need to keep awake. Now this can include college students, drivers and working group.

people who just drink it for fun. This will include party goers, people who love red bull with their drinks or for those who just drink it like that, on impulse. Yes, that includes me too.

 

Positioning

Red Bull has positioned itself as a premium product which is associated with sports and energy more than anything.  

what problems does it solve ?

Well it really does keep you awake when you can't afford to fall asleep.