The cola market Essay Example | Topics and Well Written Essays - 1750 words

The cola market - Essay Example As a new entrant in the market, Red Bull’s product for its new cola will only aim to cater and serve certain segments of the market. In order to know the market well, Red Bull has to segment its market carefully in order to assess which market segment should be chosen.The Red Bull brand has been associated with various lifestyles in the functional segment of the beverage market in the UK. Because of this existing association which is rooted from the lifestyle segment of the market, Red Bull’s new product can also use the lifestyle or psychographic segmentation for the cola market.According to Tom Duncan in his book â€Å"Principles of Advertising and IMC†, he defines psychographics as â€Å"measures that classify customers in terms of their attitudes, interests, and opinions as well as their lifestyle activities.† Since the Red Bull brand is positioned using the lifestyle segmentation of the market, the entry of its new product in the cola market can use t he lifestyle segmentation as well in order to make its product successful.The segment for the functional beverages has increased over the years due to the aging population of UK, as well as the shift to the more health-conscious products. With this, Red Bull has capitalized on the health-conscious segment of the market which looks for â€Å"regenerative and rejuvenating properties†.This strategic segment of the health-conscious group of consumers, according to Mad.co.uk (2008) will be entered by Red Bull with a â€Å"head to head on-trade† with Pepsico’s Pepsi Raw.