This month, we’re looking at how challenger brands use relentless focus on niche consumer segments to create big success. If you haven’t read our first installment, check out “How Challenger Brand Red Bull Beat Coke and Pepsi.”
There’s no escaping the attention of competitors with the kind of success Red Bull experienced as it built the energy drink segment. Today, Red Bull has company in the category it created, but the threat didn’t come from category leaders Coke or Pepsi. As is so often the case, it seems the many penalties of size have served to constrict an adequate response from the cola giants, leaving room for another inspired challenger.
Red Bull demonstrated that a segment of underserved consumers was willing to pay 300% more for 33% less product. That’s right, at just eight ounces, Red Bull costs three times what you’ll pay for a 12-ounce can of Coke.