1. Marke&ng
Research
Study:
Red
Bull
Product
Extensions

2. 1.0
Execu&ve
Summary
 Most
important
a@ributes
are
taste
and
effec(veness
 Red
Bull
rated
poorly
in
terms
of
healthiness
yet
consumers
also
find
this
a@ribute
as
the
next
most
important
 Female
energy
drinkers
represent
a
growth
opportunity
 Consumers
seem
willing
to
try
out
Red
Bull
with
alcohol,
Red
Bull
with
vitamins,
Organic
Red
Bull,
and
Red
Bull
with
juice
 Mismatch
between
consumers’
percep&ons
of
healthiness
and
their
views
of
its
importance
 Recommenda(ons:
• Target
female
energy
drinkers
with
a
healthier
version
• Inves&gate
poten&al
and
safety
issues
with
alcoholic
version

3. 2.0
Problem
Defini&on
Red
Bull’s
dominance
in
the
energy
drink
market
has
been
threatened
by
challengers
such
as
Monster
and
Rockstar.
Should
Red
Bull
change
its
product
a4ributes
and/or
extend
its
brand
to
other
product
categories?

4. 2.1
Managerial
Ques&ons
&
Hypotheses
MQ1:
Should
Red
Bull
change
its
product
a@ributes?
If
yes,
then
how?
Hypothesis
1.1:
Important
a@ributes
are
packaging,
taste,
effec(veness,
price,
por(on
size,
and
“healthiness”
and
the
brand
MQ1.2:
How
does
Red
Bull
score
in
these
a@ributes
compared
to
Monster
and
Rockstar?
Hypothesis
1.2:
Red
Bull
would
score
higher
than
its
compe&tors

5. 2.1
Managerial
Ques&ons
&
Hypotheses
MQ2:
Should
Red
Bull
extend
its
brand
to
other
product
categories?
If
yes,
then
to
what?
Hypothesis2.1:
Possible
products
are
energy
mints,
energy
gum,
energy
bars,
Red
Bull
with
juice,
Red
Bull
with
alcohol,
Red
Bull
with
protein
supplements,
Red
Bull
with
vitamin
supplements,
and
Organic
Red
Bull.
MQ2.2:
Who
are
most
likely
to
buy
these
products?
Hypothesis2.2:
Loyal
consumers
of
Red
Bull.
Male
consumers
are
likely
more
open
to
try.

6. 2.3
Research
Design
Define
Problem
STEP
1:
Preliminary
Data
Ini&al
Hypotheses
STEP
2:
Focus
Group
Refined
Hypotheses
STEP
3:
Quan&ta&ve
Survey
Data
Analysis
and
Interpreta&on
Recommenda&ons

7. 3.0
Results:
Preliminary
Data
Long
working
hours,
long
commutes
and
rising
female
employment
increase
demand
for
energy-­‐enhancing
products.
Lifestyle
food
and
drinks
reflect
the
lifestyle
that
consumers
aspire
to
have.
Young
adults
aged
20-­‐35
are
expected
to
be
the
most
important
consumer
group
for
lifestyle
food
and
drinks
over
the
next
five
years,
closely
followed
by
women.
Food
and
drinks
manufacturers
have
begun
to
launch
products
that
contain
natural
energy-­‐giving
ingredients
such
as
guarana
and
white
tea.

8. 3.1
Results:
Focus
Group
Brand
loyalty:
not
obvious
in
driving
consump&on
behaviours
Red
Bull:
considered
unhealthy
due
to
its
chemical
contents
Posi&ve
image
associa&on:
energe;c
and
ac;ve
A
Red
Bull
alcohol
pre-­‐mixed
drink:
to
target
party
users,
provided
that
safety
of
product
is
tested
Red
Bull’s
brand
differen&a&on:
offer
addi&onal
product
extensions
to
suit
consumers’
tastes
to
strengthen
its
market
posi&on

9. 3.2
Quan&ta&ve
Survey:
Energy
Drink
Consump&on
Habits
User
Groups
&
Consump(on
Frequencies
Party
Users
80%
Energy
Users
70%
60%
F:
13
F:
2
F:
11
50%
M:
11
M:
5
M:
6
40%
Energy
User
30%
Party
User
20%
10%
F:
2
0%
M:
5
Once
or
Once
every
Once
per
Once
per
Once
every
more
per
3
days
week
month
few
Sports
Users
day
months

10. 3.3
Quan&ta&ve
Survey:
AHribute
Importance
&
Red
Bull’s
Ra(ng
9
8
7
6
5
4
3
2
1
0
Red
Bull
Monster
Rockstar
Importance

11. 3.4
Quan&ta&ve
Survey:
Regression
Model

12. 3.5
Quan&ta&ve
Survey:
Consumer
Sa&sfac&on
of
Red
Bull
AHribute
Importance
Factors
by
Gender
0.40
0.30
0.20
0.10
0.00
Male
-­‐0.10
Female
-­‐0.20
-­‐0.30
-­‐0.40
Value
U&lity
Appeal
(price,
por&on
&
(taste,
effec&veness)
(package
&
brand)
healthiness)

13. 3.6
Quan&ta&ve
Survey:
Sa(sfac(on
by
User
Groups
overall
male
party
user
4
male
energy
user
3
female
party
user
healthiness
taste
2
female
energy
user
1
0
packaging
effec&veness
por&on
size
price

14. 3.7
Product
Extension
Poten&als:
Interest
Level
to
Buy

15. 3.8
Product
Extension
Poten&als:
Interest
Level
to
Buy

16. 3.9
Product
Extension
Poten&als:
Interest
Level
to
Buy

17. 4.0
Limita&ons
&
Caveats
Data
cleaning
and
data
quality
check
to
correct
data
error:
• Exclusion:
If
a
respondent
chose
“never”
to
both
open-­‐
ended
ques&ons
about
their
percep&on
of
Red
Bull
• Missing
data:
Respondents
not
familiar
with
Rockstar
or
Monster
Homogenous
results:
Most
samples
cluster
in
age
26-­‐35
and
with
graduate
educa&on
level
Facebook
Group:
Pos&ng
of
survey
request
removed;
Lack
of
heavy
users
(extreme
sports
users)
Geography:
Sample
biased
to
mostly
Canadian
respondents

18. 5.0
Conclusions
&
Recommenda&ons
Most
important
a@ributes
are
taste,
effec(veness,
price
Packaging
is
important
for
female
consumers
Healthiness
is
a
hidden
opportunity
Compared
to
its
compe&tors,
Red
Bull
is
rated
as
comparable
in
taste,
be@er
in
effec(veness,
slightly
worse
on
price,
as
poor
as
its
compe&tors
on
healthiness
Consumers
seem
willing
to
try
out
Red
Bull
with
alcohol,
Red
Bull
with
vitamins,
Red
Bull
Organic
and
Red
Bull
with
juice
Party
users
seem
most
interested
in
Red
Bull
with
alcohol,
Red
Bull
with
vitamins,
and
Red
Bull
with
juice
Female
energy
users
most
interested
in
Organic
Red
Bull