Category identifying placement

Energy drink category is a dynamically expanding one, which has been growing by two-digit numbers for years. Balázs Ruip, Red Bull Hungária Kft.’s trade marketing manager told our magazine that the group of consumers expanded: formerly energy drinks were the party drinks of trendy young people, but by know they have become the coffee of modern times. The number of energy drink users tripled in the past 5 years. The number of product items on the Hungarian market grew to 200. This rapid expansion of product selection is practically impossible to follow for consumers. Most new products on the market target the medium and low price segments, reducing the profitability of the category but also acquiring new consumers for the market. It is worth analysing whether these trends serve the long term interests of the energy drink market.

TNS magasin, an international market research company presented its findings on 25 March, according to which shoppers find the product category in the store through the well-known brands. These are category identifying products which should be highly visible as they lead shoppers to the category. In the energy drink segment, Red Bull is the category identifying product – the most well-known brand on the Hungarian market too. In the premium category, Red Bull holds on to its positions. If there is no Red Bull in the shop, people think no energy drinks are sold there. To increase the impulse effect of the product, secondary placement of the higher price products, including Red Bull, in refrigerators in the cash register zone and at hot spots is a good solution. Red Bull Energy Shot is the company’s new product that was launched in March. This small, 60-ml, non-carbonated product requires no cooling.