J19109 Buyer Behaviour BU5206

Module Title: Buyer Behaviour

Module Code: BU5206

Module Leader/Seminar Tutor: Stephanie Hodge

Assessment Number: J19109

Word Count: 3129

1

J19109 Buyer Behaviour BU5206

How the symbolic consumption of extreme sports and celebrity

endorsements is utilised by Red Bull to influence motivation

Objectives

How drinking Red Bull creates an association between the public

and the sports sponsored by the brand.

How the use of celebrities influence buyers.

What could affect sales and change consumer perception of the

brand in the decision making process.

Introduction

Consumption of goods or services has been argued to define who we are or how we

want to represent ourselves. Thus in this paper we shall be looking at how buyer

behaviour has played a key impact on Red Bull, in creating the success they have had

within the market. This is due to the simple fact that the public are the ones who will

be purchasing your product or service in most cases. This can be shown by that an

individual’s identity and integration into social groups can be created by the symbolic

meanings of possessions (Belk, 1988). Meaning that an individual can view such

objects as an embodiment of meanings that will express their identity, and signify

group association (McCracken, 1988).

We shall also be looking into how the use of celebrities can impact on a buyer’s

behaviour. Such as the consumers mind-set can be altered with the use of a

physically attractive endorser (Baker & Churchill, 1977). Approaches to this can be

seen all around in today’s media with the use of sex as an appeal. Although Red Bull

hasn’t used the sex appeal to such an extent they have still used the basis of physical

ability as a focal point.

2

J19109 Buyer Behaviour BU5206

Finally the last area I will be taking under consideration is the consumer’s decision

making process and why they would be inclined to buy into Red Bull or not. This is a

process in which the prospective buyer collects and evaluates information of a

product or service. Which in turn will allow them to be able to then make a decision

whether to purchase the goods or not (Friesner, 2000).

How drinking Red Bull creates an association between the public and

the sports sponsored by the brand.

Symbolic consumption represents how today’s society is dictated by the way in

which we relate ourselves to products and services (Miles, 1998). The way that this is

explained is, ‘whereby individuals use products as mechanisms to create, develop

and maintain their identities’ (Piacentini & Mailer, 2004). Therefore keeping this is in

mind we can see that with Red Bull attaching itself to the extreme sports sector, they

have created an ideology implanted into the consumer that if they purchase their

brand they will be associated to extreme sporting athletes. The reason for this is

because Red Bull have gone about their business by developing a high concept

strategy which puts excitement and amazement before promotion of their own

energy drink (Ratcliff, 2014). The ideal way Red Bull have put this strategy to perfect

effect is when they commenced the ‘Red Bull Stratos’ initiative. This world-record

beating attempt gained the concurrent views of 8 million on YouTube, which in turn

had the highest-ever concurrent screening statistics on the site (Shearman, 2012).

However this is not the only way it has connected itself to the sense of being

something associated to adrenaline and thrill factor. It was reported that in 2004

Red Bull had chosen to enter the world of Formula 1 (F1). They began this enterprise

by purchasing the Jaguar F1 racing team, consequently going through a complete

rebranding image of the team. This in turn brought the fruition of three constructors’

championships. Such a period of success prompted them to own another F1 team

being Scuderia Toro Rosso. Such an aggressive strategy from Red Bull to embed

them within this particular motor sport shows its clear intentions of making the

brand one associated with speed, fearlessness, adventure and style (DTA, 2012). This

3

J19109 Buyer Behaviour BU5206

may seem on the surface of it as a great strategy employed by Red Bull for all of the

connotations they can draw to represent the brand. The basis of what Red Bull is

about is shown perfectly through Formula 1 however; they cannot predict what can

happen within this market that can affect its potential sales to customers.

Even though Red Bull are one of the most successful teams along with Ferrari

enjoying around $150m of the prize money, which is a far greater portion than any

of the other remaining teams (Davies, 2015). They cannot compensate for the

declining viewing figures. It was reported that within the six years leading up to the

2015 season, statistics showed that viewing figures had fell by 175m from 600m to

425m (Davies, 2015). Such a decline in viewing figures will no doubt affect the

potential sales of Red Bull. This is because with Red Bull pouring a lot of investment

into the sport, they will be aiming to gain new potential buyers of their product

through the sport. Nonetheless with the decline of the sports popularity it will

reduce the chance for the customer to come into contact with the brand.

This strategy falls perfectly into place with giving the public a ‘pursuit of self-esteem’

belief and the development of a self-image. With Red Bull having such a close

relation to anything adrenaline based we can see that the brand has gotten to a

position that allows them to have its own culture in a sense. This means that people

will end up choosing to drink Red Bull over other competitors for its symbolic

connection to either athletic ability or sport-based loyalty. This is represented

through such statistics gathered showing that between 2010 and 2014 energy drinks

gained a boost by 23.8%, from £1.18bn to £1.46bn (Keynote, 2015). With Red Bull in

particular recording $2,883m sales in the USA alone, with its closest competitor

Monster selling $407m less (Caffeine Informer Staff, 2015).

All of this represents to us how Red Bull have gone about creating such an aggressive

campaign to gain the interest of buyers and why in turn they will choose to buy into

the brand. Such a forceful campaign can be shown through the statistic that they use

a total of 30% of their revenue in marketing the brand (Cobb, 2013).

4

J19109 Buyer Behaviour BU5206

How the use of celebrities influence buyers

Firstly a celebrity is defined as an individual who is well known for his well

knownness (Gabriel & Boorstin, 1963). This shows that the underlying fact that an

individual who is classed as a celebrity is recognized by a good majority portion of

the public. Such a person provides any company with a great foothold in gaining the

interest of buyers. Secondly the term celebrity endorsement is one that states the

use of a celebrity for services other than what they are known for whether it is an

actor or athlete (Surana & Pandya, 2016). The use of celebrity endorsement is highly

beneficial to any major brand. With research showing that using famous people

affects a consumer’s attitude (Awasthi & Chorarla, 2015). The reason for this being

that the company uses someone who is adored by the public, which can alter the

way they perceive the product being sold. This is because if we have an attitude

towards a product or service whether it be from the product or the celebrity used to

promote it, it will determine our intentions in deciding to buy into the brand or not

(Goldsmith, Lafferty & Newell, 2000).

Such tactics are the most commonly used by all major leading companies. This can

be made clear with statistics showing that in 1979 one in six commercials had a

famous figure apparent, which increased by 25% from then to 2001 (Erdogan, Baker

& Tagg, 2001). With this increase we can determine that not only the use of

celebrities has benefited the brands image in creating an appealing nature to the

buyer, but also that this strategy will not fade away. This is due to the fact that

Western culture has become fixated with the lives of famous people. The reason for

this being that the media has filled today’s society with news about celebrities, giving

them an entertainment factor (Choi & Rifon, 2007).

In terms of Red Bull once again the use of their aggressive strategy to completely

integrate within the sporting world has allowed them to utilise the athletes

associated to each sport. Such icons can range from Blake Griffin in the NBA to Shaun

White in Snowboarding (Variant, 2016). From this we can see that using the athletes

from each sporting sector they can appeal to a vast majority of the public.

5

J19109 Buyer Behaviour BU5206

Such methods will mean that message delivered will be highly effective as it has the

desired perceived level of proficiency and reliability of an endorser (Hovland &

Welss, 1951). A buyer will be more inclined to purchase into this brand because of

the idol that will be associated to Red Bull. However this doesn’t stop here as,

currently they are involved in 237 events year round (Red Bull, 2014). Such a

staggering amount of sponsored events will ensure they reach out to almost

everyone possible. The reason people end up buying into the brand is for the

affiliation they gain from the product. By the person purchasing Red Bull they

become associated with a lifestyle directed from the products connotation with

extreme sports (Pierce, 2011).

From this we can see that Red Bull have utilised superstars in the ideal way creating

a symbolic match between the celebrity image and the brand image, such a method

is considered to be very effective (McCracken, 1989). This suggests that by marrying

up the icon used to the brand will create a more influential marketing campaign.

Thus with Red Bull being associated with extreme sports, the use of extreme

sporting athletes will be ideal to attract interest. How this will in turn affect the

buyer’s behaviour is that someone who has a strong belief for self-enhancement will

form a connection to the brand through their aspirations to be considered as a

member of that group (Escalas & Bettman, 2005). With Red Bull mainly using

athletes as there methods of celebrity endorsement we need to consider whether

they are the right way to go. A reason being that many top athletes make more

money from endorsements than they do from their own sport related finances. This

is due to world renowned athlete Tiger Woods making around $90m from

endorsements compared to only creating $25m from salary/winnings (Badenhausen,

2008). Therefore choosing sporting athletes needs to be taken under serious

consideration as some may be perceived as “sell outs”. Suggesting they are only in it

for the money, which will have an adverse effect on the brands image for hiring on

someone who has such an image.

Thus the underlying factor to all of this is the meaning transferred from the celebrity

endorsed marketing campaign and the consumer. A meaning transfer model is one

6

J19109 Buyer Behaviour BU5206

that suggests, the effect of a celebrity is dependent on whether implication of them

in the advert has a useful effect in the endorsement process and product

(McCracken, 1989). This shows that even if famous icon was used in an advert but

they had no relevance to the product or service being sold, it will lack credibility

among consumers. However if this is done correctly as Red Bull have done in using

the sporting athletes of the sports they are associated with it creates the correct vibe

for the consumer. This is due to the consumer seeing that the celebrity has

everything to do with what is being sold, and thus Red Bull gain the buyer’s attention

and potential sale.

What could affect sales and change consumer perception of the brand

in the decision making process

One key factor that Red Bull would have needed to consider was the Decision

Making Process (DMP) a person goes through upon coming into contact with a

product or service. The reason for this being a crucial factor for them to take into

account is because throughout the set stages in the DMP a potential buyer can be

swayed for or against purchasing a product. This process can be broken down into

five sections, which as follow are:

1. Need Recognition

2. Information Search

3. Evaluations of Alternatives

4. Purchase

5. Post-purchase Behaviour

By developing this into such a format will allow marketers such as Red Bull, to

understand consumer’s behaviours and effectively promote their brand to

prospective clients (Lombardo, 2016). However even with such tactics it is still not a

definite plan to determine why people purchase the things they do. The first stage of

this process is the need the consumer creates for a product. This is where a

consumer will develop the idea that the product they have come into contact with is

something that they need or want (MSG, 2016). The way in which Red Bull have

tackled this was to create the brand as one that is associated with a thrill factor. By

7

J19109 Buyer Behaviour BU5206

making it stand as a leader in “super human” abilities it creates the want from

consumers to aspire to such ideologies. Callum McGuigan reported how the strategy

of Red Bull’s brand marketing tactics perfectly suggests such ideologies, by saying

how one of the world’s historic feats can be associated with the brand. He suggested

how Neil Armstrong’s famous quote, “One small step for man, one giant leap for

mankind” can be related to one historic achievement the company is associated with

the Red Bull ‘Stratos’ initiative. This being that he says how such an achievement can

be quoted as, “One small step for man, one giant leap for Red Bull” (McGuigan,

2012).

The next step is the information search process is where the consumer has now

identified that he or she needs the product that was advertised to them, and begins

to develop research into possible products that all relate to the need they have

established. The way the go out about creating this is by using the internal and

external information gathered. The internal information search is by using memories

in ways like past experiences with the product. The external information search is

whereby they create a basis for the products usefulness from third parties not

related to the product internally (Lombardo, 2016). A potential consumer would thus

be inclined to see Red Bull through how they have impacted them personally, and

how other perceive the brand as well. Once again Red Bull will have already

established themselves to create the perception of their product to that of one that

provides adrenaline and energy boosts.

In terms of it as an energy drink it does provide you with the ingredients that give a

consumer an energy boost, these being caffeine and sugar. One study showed that a

typical energy drink had around 80 milligrams of caffeine, which is about that same

amount as a cup of coffee (Watson, 2006). However the amount of sugar that Red

Bull contains makes the product something that is very unhealthy for you, even

though the product is one that is related to athletic people. It is stated that a 16oz

can of Red Bull will include 52 grams of sugar, which is an alarming amount relatable

to 11 Oreo cookies (Harvey, 2013). Such disturbing amount will raise cholesterol

levels, which in turn increases the chances of heart disease (Gunnars, 2013).

8

J19109 Buyer Behaviour BU5206

Therefore the consumer will be now presented with a dilemma, as the internal

information they have will be pro Red Bull, but the external information is against

the brand product. At this point the buyer can choose to not follow through with

purchasing a product because of the research they have gathered. However if they

still opt to follow through, this will then progress into the next phase of the decision

making process which is the evaluation of alternatives. A consumer will now begin to

consider what the other options are within this market. Causing an individual to

determine which product best meets their needs (MSG, 2016). Within the market

there isn’t much to differentiate in terms of what the product provides you with.

Therefore it will come down to preferences of goods available. Considering that in

2014 Red Bull had the largest portion of the market share with 43%, would suggest

people buy into this brand over its competitors (Caffeine Informer Staff, 2015).

Upon coming to this decision the consumer will finally purchase the product that

they had initially established a need for. Once this stage has been achieved for Red

Bull, they have done what is needed in order to create a strong brand that influence

and makes a consumer to buy into the product being sold. However after someone

has purchased a product they begin the final phase of the decision making process,

the post purchase evaluation. This is basically where the buyer determines whether

the product was what they wanted and if it matched in fulfilling their need (MSG,

2016). This is where Red Bull’s aggressive marketing strategy comes to fruition, as

the product bought may not always fulfil the need of the buyer in terms of providing

them with the energy boost they wanted. It will still nonetheless maintain its

association to extreme sports and athletic ability, making the consumer to be seen as

part of this lifestyle whether they are athletic or not.

Conclusion

9

J19109 Buyer Behaviour BU5206

Thus from this we can see that Red Bull have accounted for all basis of a buyers

perception of the brand and influencing them to buy into it. They have appealed to

the symbolic consumption that consumers want when creating their own image.

Such a concept of selling the idea of what Red Bull stands for rather than the drink

itself has made Red Bull establish itself as something valuable making them gain

valuable consumers buying into the company (O’Brien, 2012).

They have also utilised the use of celebrity endorsement to great fashion by creating

a purpose of them being within the advertisement, rather than just simply putting a

famous icon in for the sake of it. However this is not to say that controversy isn’t a

good approach as Red Bull had done when they enlisted Eminem. The reason for this

being that Eminem in the past has always sat on the edges of controversy (Corbett,

2011). Obviously with this particular icon he is not associated to extreme sports.

However his nature of rebelliousness and fear factor within his own industry can

transgress into the ideology of Red Bull’s brand.

Furthermore the way in which Red Bull’s aggressive marketing strategy was

employed has enabled them to meet the requirements of a consumer’s decision-

making process. The philosophy of the brand has implanted itself into the buyers

thinking process making any drawback from purchasing the product be due to a

result of a third party influence. Such an influence can be a result from the

government imposing a sugar tax. It is suggested that a tax between 10% and 20%

will be put in place that will, significantly reduce marketing strategies shown to

children and taking away special offers from supermarkets on such goods (BBC,

2015).

References

10

J19109 Buyer Behaviour BU5206

Awasthi, A. K., & Choraria, S. (2015). Effectiveness of celebrity endorsement advertisements: The role of customer imitation behaviour. Doi: 10.1177/0973258615597412(Awasthi & Choraria, 2015)

BBC (2015, October 22). Sugar tax and offers ban ‘would work’. BBC Health. Retrieved from http://www.bbc.co.uk/news/health-34603118(BBC, 2015)

Badenhausen, K. (2008, June 20). Where the money is. Forbes. Retrieved from http://www.forbes.com/global/2008/0630/068.html(Badenhausen, 2008)

Baker, M. J., & Churchill, G. A. (1977). The impact of physically attractive models on advertising evaluations. Journal of Marketing Research, 14(4), 538. doi:10.2307/3151194(Baker & Churchill, 1977)

Belk, R. W. (1988). Possessions and the extended self. Journal of Consumer Research, 15(2), 139. doi:10.1086/209154(Belk, 1988)

CHOI, S. M., & RIFON, N. J. (2007). Who is the celebrity in advertising? Understanding dimensions of celebrity images. The Journal of Popular Culture, 40(2), 304–324. doi:10.1111/j.1540-5931.2007.00380.x(CHOI & RIFON, 2007)

Caffeine Informer Staff. (2015, November 10). Top selling energy drink brands. Retrieved February 3, 2016, from http://www.caffeineinformer.com/the-15-top-energy-drink-brands(Caffeine Informer Staff, 2015)

Cobb, A. (2013, February 28). Red bull sponsorship and endorsements. Retrieved February 5, 2016, from Digital Writing Month, http://amandacobb.co.uk/2013/02/red-bull-sponsorship-and-endorsements/(Cobb, 2013)

Corbett, R. (2011, April 5). Comment – soft drinks & water - the tightrope of celebrity endorsement. Retrieved February 7, 2016, from Comment, http://www.just-drinks.com/comment/comment-soft-drinks-water-the-tightrope-of-celebrity-endorsement_id103514.aspx(Corbett, 2011)

DTA. (2012, October 14). Digital marketing case study - marketing case study: How red bull has taken sports marketing to the extreme. Retrieved February 3, 2016, from

11

J19109 Buyer Behaviour BU5206

http://www.digitaltrainingacademy.com/casestudies/2015/03/marketing_case_study_how_red_bull_has_taken_sports_marketing_to_the_extreme.php(DTA, 2012)

Damron-Martinez, D., Haytko, D. L., & Simmers, C. S. (2009, April ). Examining the effectiveness of athlete celebrity Endorser characteristics and product brand type: The Endorser Sexpertise continuum. Retrieved February 5, 2016, from Journal of Sport Administration and Supervision, http://quod.lib.umich.edu/j/jsas/6776111.0001.110?rgn=main;view=text(Damron-Martinez, Haytko, & Simmers, 2009)

Davies, H. (2015, August 24). The decline of formula 1. Retrieved February 5, 2016, from http://www.sportsrevolution.co.uk/the-decline-of-formula-1/(Davies, 2015)

Erdogan, B. Z., Baker, M. J., & Tagg, S. (2001). Selecting celebrity endorsers: The practitioner’s perspective. Journal of Advertising Research, 41(3), 39–48. doi:10.2501/jar-41-3-39-48(Erdogan, Baker, & Tagg, 2001)

Escalas, J. E., & Bettman, J. R. (2005). Self‐Construal, reference groups, and brand meaning. doi:10.1086/497549(Escalas & Bettman, 2005)

Friesner, T. (2000, ). Marketing teacher Retrieved from http://www.marketingteacher.com(Friesner, 2000)

Gabriel, R. H., & Boorstin, D. J. (1963). The image: Or what happened to the American dream. doi:10.2307/1847311(Gabriel & Boorstin, 1963)

Goldsmith, R., Lafferty, B., & Newell, S. (2000). University of Chester Sign in. Retrieved February 5, 2016, from http://search.proquest.com.voyager.chester.ac.uk/docview/236502808?pq-origsite=summon&accountid=14620(Goldsmith, Lafferty, & Newell, 2000)

Gunnars, K. (2013, September 30). 10 disturbing reasons why sugar is bad for you. Retrieved February 7, 2016, from Healthy Eating, http://authoritynutrition.com/10-disturbing-reasons-why-sugar-is-bad/(Gunnars, 2013)

Harvey, L. (2013). Does Red Bull Really Give You Wings?. Retrieved February 7, 2016, from https://www.uoguelph.ca/studenthealthservices/does-red-bull-really-give-you-

12

J19109 Buyer Behaviour BU5206

wings(Harvey, 2013)

Holt, D. B. (2004). How brands become icons: The principles of cultural branding. Boston, MA: Harvard Business School Press.(Holt, 2004)

Hovland, C. I., & Weiss, W. (1951). The influence of source credibility on communication effectiveness. Public Opinion Quarterly, 15(4), 635. doi:10.1086/266350(Hovland & Weiss, 1951)

Hoyer, W. D. (1984). An examination of consumer decision making for a common repeat purchase product. Journal of Consumer Research, 11(3), 822. doi:10.1086/209017(Hoyer, 1984)

Jenner, G. (2012, November 15). Do Cashback sites just convert traffic? Looking at decision making on Cashback sites « iMediaConnection Blog. Retrieved February 7, 2016, from http://blogs.imediaconnection.com/blog/2012/06/22/do-cashback-sites-just-convert-traffic-looking-at-decision-making-on-cashback-sites/(Jenner, 2012)

Jessop, A. (2012, December 7). The secret behind red bull’s rise as an action sports leader. Forbes. Retrieved from http://www.forbes.com/sites/aliciajessop/2012/12/07/the-secret-behind-red-bulls-action-sports-success/#7fa3ac714ede(Jessop, 2012)

Kotler, P., & Armstrong, G. (2005). Principles of marketing (11th ed.). United Kingdom: Pearson Prentice Hall, [2005].(Kotler & Armstrong, 2005)

Kotler, P., Armstrong, G., Harris, L., & Piercy, N. F. (2013). Principles of marketing European edition (6th ed.). Harlow: Pearson.(Kotler, Armstrong, Harris, & Piercy, 2013)

Lombardo, J. (2016). Understanding the consumer decision-making process: A marketing must - video & lesson transcript Retrieved from http://study.com/academy/lesson/understanding-the-consumer-decision-making-process-a-marketing-must.html(Lombardo, 2016)

MSG. (2016). Stages in consumer decision making process. Retrieved February 7, 2016, from http://www.managementstudyguide.com/consumer-decision-making-

13

J19109 Buyer Behaviour BU5206

process.htm(MSG, 2016)

McCracken, G. (1988). Culture and consumption: New approaches to the symbolic character of consumer goods and activities. Bloomington: Indiana University Press.(McCracken, 1988)

McCracken, G. (1989). Who is the celebrity Endorser? Cultural foundations of the endorsement process. Journal of Consumer Research, 16(3), 310. doi:10.1086/209217(McCracken, 1989)

McGuigan, C. (2012, October 16). Red bull: Masterminds of new age marketing. Retrieved February 7, 2016, from Social Media Marketing, http://www.creativeguerrillamarketing.com/viral-marketing/red-bull-masterminds-of-new-age-marketing/(McGuigan, 2012)

Miles, S. (1998). Consumerism - as a way of life. London: SAGE Publications.(Miles, 1998)

O’Brien, J. (2012, December 19). How red bull takes content marketing to the extreme. Retrieved February 7, 2016, from http://mashable.com/2012/12/19/red-bull-content-marketing/(O’Brien, 2012)

Piacentini, M., & Mailer, G. (2004). Symbolic consumption in teenagers’ clothing choices. Journal of Consumer Behaviour, 3(3), 251–262. doi:10.1002/cb.138(Piacentini & Mailer, 2004)

Pierce, D. (2011, March 19). Search marketing mastery. Retrieved February 5, 2016, from http://www.ourmarketingmastery.com/2011/03/what-is-brand-affiliation.html(Pierce, 2011)

Ratcliff, C. (2014, September 8). Red bull vs GoPro: Taking content marketing to the extreme. Retrieved February 3, 2016, from https://econsultancy.com/blog/65416-red-bull-vs-gopro-taking-content-marketing-to-the-extreme/(Ratcliff, 2014)

Red Bull. (2014, January 3). Sónar Stockholm 2014. Retrieved February 5, 2016, from http://www.redbull.com/us/en/browse-all-events#3/59.89/-4.75(Red Bull, 2014)

Shearman, S. (2012, October 15). Red bull Stratos skydive smashes YouTube records. Retrieved February 3, 2016, from

14

J19109 Buyer Behaviour BU5206

http://www.marketingmagazine.co.uk/article/1154746/red-bull-stratos-skydive-smashes-youtube-records(Shearman, 2012)

Surana, R., & Pandya, M. (2016). The effectiveness of celebrity endorsement in IndiaTable of contents. . Retrieved from http://www.academia.edu/4171017/The_Effectiveness_of_Celebrity_Endorsement_in_IndiaTable_of_Contents(Surana & Pandya, 2016)

Variant. (2016). Red bull endorsements - athletes endorsed by red bull. Retrieved February 5, 2016, from http://www.athletepromotions.com/red-bull-endorsements.php(Variant, 2016)

Watson, S. (2006, October 4). How do energy drinks work?. Retrieved February 7, 2016, from http://science.howstuffworks.com/innovation/edible-innovations/energy-drink.htm(Watson, 2006)Select All

15