Task 2 of Target Market, Customer Profiling and Positioning for ‘Red Bull UK’
Target market can be defined as group of customers to whom organization is determined to sell its product. According to Ferrell & Hartline (2012), target market is essential to the success of marketing strategy of an organization. In this regard, target market deals with dividing the market into small groups based on their individual needs, behavior as well as characteristics (Weinstein, 2013). Two target markets to be chosen for Red Bull in the UK are sports persons and people living in urban areas. There are different reasons to choose these target markets. At first, in UK, more importance is given to sports. The trend of taking part in sports is growing in the country. Moreover, UK government has also been taking initiatives for the development of policies to increase the participation of individuals in sports at different levels (Future Trends, 2014). It is expected that large population of UK will soon be engaged in different sports activities. It is likely to create great opportunity for Red Bull because sport persons are engaged in physical activity and they require the energy the most. Red Bull is an energy drink and it helps in boosting energy. The reason to choose working people is twofold. First, large population of UK resides in urban areas. As of 2011, 79.6% of UK total population lives in cities and towns whereas rate of urbanization as of 2010 is 0.76% (The World Fact Book: Urbanization, 2014). People living in urban areas are busier and more tired. At the same ground, they are stressed and wish to relax. Secondly, urban people work long day and they need to boost their energy. Professional assignment writing service
Customer profiling or market segmentation is a marketing strategy, which helps in dividing the target market into subgroup of consumers. The subgroups are determined on the basis of their needs, preferences, characteristics and behavior (McDonald, 2012). Customer profiling can be done through different aspects including geographic, demographics, behavioral, and psychographic. Target market for Red Bull UK can be determined on the basis of geographic, demographic and psychographic aspects.
Geographic segmentation is concerned with the segmentation of customer on the basis of geographic criteria such as nations, regions, and cities. People living in different geographic locations have different needs, characteristics and behavioral needs due to difference in climate and land texture (Lamb, et al., 2011). There is significant impact of geographic segmentation on the lifestyle and behavior of customers. This can be understood by the example that individuals living in urban areas work in offices whereas people living in rural areas work in the fields (Strydom, 2005). The selected target market of Red Bull is people livening in the urban areas of UK. Due to the lifestyle of urban areas, people work all day long and usually get tired. To run their day smoothly, they need to be stress free and fresh. An energy drink can do a lot for them. Red Bull drinks are easily available in stores, bars and clubs of city. Moreover, people living in urban areas are more involved in sports than urban population. Get dissertation writing service
According to demographic segmentation, market is divided into small groups on the basis of their age, gender, income, occupation, education, ethnicity, lifestyle, and household size. Demographic segmentation is also known as socioeconomic segmentation because it classifies the individuals based on their social as well as economic characteristics (Wedel & Kamakura, 2000). Red Bull equally focuses on both genders. As far as age is concerned, it mainly targets people aged between 16 and 29. It further targets people, who are working professionals and busy all day. People, who are engaged in sport activity or health conscious, are also targeted.
Psychographic segmentation is concerned with customers having similar lifestyle, values and attitudes. To assess the customers’ values, attitude and lifestyle, their interest and activities are focused (Weinstein & Cahill, 2014). Psychographic segmentation is an essential segmentation for the customer profiling of Red Bull. Red Bull is an energy drink, which not only boosts energy but also relaxes the nerves as it contains stimulating ingredients. So, people, who live a hectic life and work a lot, are more stressed. They need a drink which can relax them and can boost their energy. Essay writing service
Positioning is referred to a marketing process wherein problem or opportunity is identified. It is also referred as position that organizations choose to execute with their marketing strategies (Graham, 2008). According to Cant, et al., (2009), positioning is a strategy, which is carried out to achieve business goals including increasing the sale growth and brand recognition. Positioning is concerned with how customer perceive the brand. This can be done through emphasizing on unique product features such as price and premium benefits associated with the products (Luther, 2001). Red Bull has been positioned as energy booster in past. It has remarkably been associated with sports and gym activity. However, there are many energy drink brands in UK such as Jaguar, Lucozade, Monster, Mountain Dew, and KX Stimulation Drink. Having number of competitors, it is difficult for Red Bull to compete in the market (Waxler, 2004). Moreover, as people of UK are more health conscious and are aware of the facts about the energy drink, therefore, it is necessary that Red Bull adopts some different positioning strategy. In this regard, it should introduce its products range as healthy drinks.