Placement Analysis Red Bull

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Feb 20, 2024

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1 Placement Analysis: Red Bull Sugar Free Marketing Communication & Placement Link: https://www.tvcommercialad.com/watch/V4rOuzXSVDQEjGu The brand I chose to analyze, per my previous target market analysis, is the Red Bull Sugar Free energy drink and the specific advertisement for this product that I selected to analyze is shown above. It is classified as a TV commercial and can be accessed via the link below the digital snapshot of the video. While the product I am focusing primarily on is Red Bull Sugar Free, the product itself is advertised with Red Bull Zero in the brand’s marketing communications and is the same across other advertisement platforms. The two products were released together in 2003 and target similar audiences that are more health conscious, leading to a consistent trend to combine their product promotions over the years (BeverageDaily.com, 2003). While this advertisement was shown across several TV channels, including MTV, ESPN, Comedy Central, and a handful of others, I chose to focus on the placement of this TV commercial on ESPN2 specifically (Edmond, 2015). Placement Audience Demographics According to Effectv (2020), ESPN2 viewers, on average, are 75% male and 25% female, which has been a consistent trend over the years. I would assume that this trend is from men tending to have a stronger affinity for sports and hence preferring to watch sports programing. The median income for ESPN2 viewers is $75K with 49% making above the median income and percentage of viewers going down as household income decreases (National Media Spots, n.d.). As far as education level, 35% are estimated to have graduated college and 32% are estimated to have completed some college (Effectv, 2020). The age groups for ESPN2 viewers are pretty spread out with the majority of 41% being 55+ years old and age 35-54 sitting at 34% of viewers, while age 18-34 make up 26% (National Media Spots, n.d.). The majority of the ESPN2 audience is married at a percentage of 59% as well as more likely to have one or more children in the household by 30% (Effectv, 2020). There is less known about specific geodemographics and ethnic backgrounds as ESPN2 viewers are very extensive throughout the United States.

2 Psychographics There are a few key target lifestyle groups that ESPN2 focuses on including flourishing families (33%), power elite (26%), and individuals booming with confidence (27%), all of which are high energy and fast paced lifestyles (Effectv, 2020). Flourishing families are considered to be those who are characterized as warm and have congeniality as well as a caring attitude amongst the members. The power elite are those that hold dominant positions in the workforce, including military, economics, and politics who are also considered very wealthy (Dictionary.com, n.d.). As for individuals booming with confidence, it is pretty straight forward in that these individuals carry themselves with a lot of confidence in the things they do. While these are underlying lifestyle psychographics, the overarching interest for ESPN2 watchers is sports. The company tagline is “Serving Sports Fans, Anytime, Anywhere,” insinuating that this channel is built for people who enjoy watching different sports and hearing news about them (Bhasin, 2019). Specific sports and entertainment aired by ESPN2 include, Major League Baseball, National Basketball Association, National Football League, and NASCAR as well as other college sports conferences (Vault, n.d.). Usage Behavior The overarching benefit provided by ESPN in general, not just the channel ESPN2, seeks to give its viewers a broadcasting network that airs the majority of the nation’s favorite sports, teams, and big sporting events (Bhasin, 2019). While there are other sports networks such as CBS Sports and Fox Sports, ESPN’s goal is to be the one who airs the events their avid sports audience wants to see. Often the users of ESPN are a mixture of individuals who are brand loyal to certain programs that are guaranteed by the network (Bhasin, 2019). However, team loyalty often trumps network loyalty so if an audience wants to watch a specific NFL game and it’s on another sports network, they are not going to choose not to watch the program because it is not on ESPN (Bhasin, 2019). It can be assumed that ESPN2 is used more frequently when there is an event that is attractive to the majority of the network’ users with more people tuning in for a big events and less people tuning in for a smaller college event. Consumption Constellation ESPN2 is often purchased in cable TV packages such as with Direct TV, Spectrum, and Cox which include other networks as well as an assortment of ESPN channels (Perry, 2021). However, ESPN as a whole and its individual channels can be purchased by users as a subscription (Perry, 2021). Therefore, consumers either are interested in the ESPN network itself and purchase directly through ESPN as a subscription or buy the networks channels in conjunction with the cable TV that supports ESPN or contains it channels in a package deal. Users may even download the ESPN app to live stream must see games when they’re on the go and can’t watch from home (Bhasin, 2019). Often the people who purchase networks such as ESPN2, buy access to the channel as a source of entertainment and leisure to watch the things they enjoy. While lounging and watching their favorite teams play, they may purchase snacks or alcoholic beverages to further enhance the experience (Edmond, 2015). Within this consumption

3 constellation, the majority of people who have made some type of purchase to acquire ESPN2 own a home which make up 75% of the network’s viewers, while 21% rent a home (National Media Spots, n.d.). Placement Strategy Bringing the analysis back to the focus product that is Red Bull Sugar Free, we can now layout the comparison between the usage of ESPN2 as an advertising platform and how it relates to and is used by the Red Bull Sugar Free TV commercial above. For one, roughly 61% of viewers are within the age ranges 18-34 and 35-54 (Effectv, 2020), which falls under the target market of Red Bull Sugar Free which is 26-45 (BRM, 2016). Both Red Bull Sugar Free and ESPN2 fall under audiences that as a majority are married, college educated, have one or more children in their household, and are male (Numerator, 2020 & Effectv, 2020). While consumers with incomes below $40K are more likely to purchase Red Bull (Numerator, 2020), people with incomes above the $75K mark that make up the ESPN2 audience are still likely consumers of the product but with likelihood decreasing as the average income rises (National Media Spots, n.d.). In fact, 49% percent of viewers make above $75K so the remaining 51% make less than $75K as their average income (National Media Spots, n.d.). In addition to demographic similarities, there is also psychographic lifestyles that both ESPN2 viewers and Red Bull Sugar Free users share. Individuals who consume Red Bull are interested in getting energy and motivation to tackle everyday tasks. As stated by the Red Bull can “Red Bull is appreciated worldwide by top athletes, busy professionals, college students, and travelers on long journeys.” The ESPN2 viewers lifestyles, as stated earlier, include flourishing families, power elite, and individual’s booming with confidence (Effectv, 2020). All of these lifestyles require lots of energy and are likely high paced and it can be assumed that these individuals likely need an energy boost to be successful in their lifestyles as well. It can also be assumed there is a cross over with business professionals and power elite for ESPN2 and Red Bull, since power elite typically work in business professional positions such as politics and economics. Finally, there is an overlap in sports interest, where ESPN2 airs sporting events and Red Bull is usually associated with people involved in sports by either targeting athletes to purchase their products or use them as sponsors (Research Gate, 2020).

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4 The Venn Diagram on Page 3 shows the similarities and differences broken down between ESPN2’s placement audience and Red Bull Sugar Free’s target market. From this, I believe the desired outcome of placing the Red Bull Sugar Free TV commercial on a network such as ESPN2 is to attempt to grow their existing target market. With so many crossovers in demographics and psychographics as well as the brand awareness Red Bull already has in general and in the sports world, ESPN2 makes an effective placement strategy for the Red Bull Sugar Free promotion. While not much can be said in comparison with usage behavior and consumption constellation, I think the goal of using ESPN2 is so Red Bull can advertise to a significant percentage of similar demographics and psychographics as their current target audience. Evaluation Overall, I think the combination of the Red Bull Sugar Free TV Commercial and its placement on ESPN2 should be considered a sound placement strategy. I think demographic and psychographic cross over between the product and the platform has great compatibility. The placement of this advertisement on ESPN2 creates exposure to a large majority of the same audience as Red Bull with similar factors such as age ranges 26-45, mostly male, married, college educated, and having one or more kids. In addition, this placement plays into similar lifestyles between both audiences where both are catering a large percentage of business professionals living very fast-paced lifestyles. I think the cherry on top for this successful overlap in product and placement is that there is the audience’s interest in sports with Red Bull creating an energy boost for athletes and ESPN2 providing sports entertainment. While the consumer usage behavior and constellations do not have any areas of overlap, I do not think this should be considered a factor to argue that placing Red Bull Sugar Free on ESPN2 is a bad decision. When looking at how they are bought and used, it does not make sense that they would overlap. Red Bull is primarily purchased in gas stations and convenience stores, while ESPN2 is purchased through online subscriptions and TV providers. Red Bull is used for energy boosts and to focus, while ESPN2 is used for entertainment and news. Finally, Red Bull is usually consumed in the evening, while ESPN2 is usually consumed when desired sporting events are being offered. When you look at the differences between the product and the placement, they make sense because each has a very different use, and it would actually make less sense if these areas did overlap. Therefore, I believe the Red Bull Sugar Free product and the ESPN2 placement is a great strategy that covers what is significant to both audiences which is the demographics and psychographics which in turn grows Red Bull’s target market.

5 Works Cited Biggs, Andria. (2020). Redbull - A Study in Market Differentiation. Beveragedaily.com. “Red Bull Targets Sugar-Conscious Consumers.” Beveragedaily.com , William Reed Business Media Ltd., 16 Jan. 2003, www.beveragedaily.com/Article/2003/01/16/Red-Bull-targets-sugar-conscious- consumers#:~:text=After%20its%20launch%20on%20the,be%20launched %20globally%20during%202003 . Bhasin, Hitesh. “Marketing Strategy of ESPN - ESPN Marketing Strategy Explained.” Marketing91 , 29 May 2019, www.marketing91.com/marketing-strategy-espn/ . Emond, Jennifer A, et al. “Patterns of Energy Drink Advertising over US Television Networks.” Journal of Nutrition Education and Behavior , U.S. National Library of Medicine, Apr. 2015, www.ncbi.nlm.nih.gov/pmc/articles/PMC4356017/#:~:text=Table %202%20presents%20the%2010,(Comedy%20Central%2C%20BET) . “ESPN 2.” Effectv , 7 May 2020, www.effectv.com/content/espn-2 . “Espn, Inc.: Company Profile.” Vault , www.vault.com/company-profiles/media- entertainment/espn-inc#:~:text=ESPN%20is%20a%20superstar%20of,%2C %20ESPN2%2C%20and%20ESPN%20Classic . “The Making of a Flourishing Family.” AIPC Article Library , 9 July 2017, www.aipc.net.au/articles/the-making-of-a-flourishing-family/#:~:text=Families %20that%20flourish%20generally%20have,the%20wellbeing%20of%20one %20another . “Network Demographics.” National Media Spots , www.nationalmediaspots.com/network-demographics.php . Perry, Nick. “ESPN+: Everything You Need to Know.” Digital Trends , Digital Trends, 6 Mar. 2021, www.digitaltrends.com/movies/what-is-espn-plus/ . “Power Elite.” Dictionary.com , Dictionary.com, www.dictionary.com/browse/power-elite . “Red Bull Demographics and Consumer Insights.” Numerator , snapshot.numerator.com/brand/red_bull. “Red Bull Segmentation, Targeting and Positioning - Research-Methodology.” Research , 22 June 2016, research-methodology.net/red-bull-segmentation- targeting-positioning/.

Placement Analysis Red Bull

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