Case Study Red Bull
1 what are Red Bull’s greatest strengths and risks as more companies (like Coca-cola, Pepsi and Monster) enter the energy drink category and gain market share?
Although Red Bull is a young brand, it is currently the worldwide market leader in energy drinks. Today, Red Bull sells more than 4 billion cans of energy drinks each year in more than 160 countries. As well as being the current market leader, Red Bull’s strengths include its marketing strategy and its alliances with distributors. They have used no print, billboards, banners ads and Super Bowl spots and minimal television ads. They focused on getting Red Bull products into trendy shops, clubs and bars. Free Red Bull products are available at “sports competitions, in limos before award shows and at exclusive after-parties. Among Red Bull’s most popular “anti-marketing” campaigns are the events that they sponsor. Red Bull has united its brand clearly and consistently with extreme sports and action.
In spite of its significant strengths, Red Bull also has weakness that it must overcome to remain successful in the highly-competitive energy drink industry. Red Bull’s small product base, lack of innovation and significant marketing expense present opportunities for competitors to overtake Red Bull as the market leader. In the last ten years, they have created three additional product offering, Red Bull Energy Shots, Red Bull Sugar Free and Red Bull Cola. However, other companies like Coca-Cola, Monster, and Pepsi were introducing new products in an effort to overtake Red Bull. Red Bull has been able to maintain its market share, but its limited product offering and lack of innovation create significant opportunities for its competitors to gain a foothold in the market.
Additional threats such as a public health concerns over the amount of caffeine included in Red Bull Energy Drinks have caused the drink to be banned. Red Bull can meet these challenges and hold off the competition by focusing on new production
Although Red Bull is a young brand, it is currently the worldwide market leader in energy drinks. Today, Red Bull sells more than 4 billion cans of energy drinks each year in more than 160 countries. As well as being the current market leader, Red Bull’s strengths include its marketing strategy and its alliances with distributors. They have used no print, billboards, banners ads and Super Bowl spots and minimal television ads. They focused on getting Red Bull products into trendy shops, clubs and bars. Free Red Bull products are available at “sports competitions, in limos before award shows and at exclusive after-parties. Among Red Bull’s most popular “anti-marketing” campaigns are the events that they sponsor. Red Bull has united its brand clearly and consistently with extreme sports and action.
In spite of its significant strengths, Red Bull also has weakness that it must overcome to remain successful in the highly-competitive energy drink industry. Red Bull’s small product base, lack of innovation and significant marketing expense present opportunities for competitors to overtake Red Bull as the market leader. In the last ten years, they have created three additional product offering, Red Bull Energy Shots, Red Bull Sugar Free and Red Bull Cola. However, other companies like Coca-Cola, Monster, and Pepsi were introducing new products in an effort to overtake Red Bull. Red Bull has been able to maintain its market share, but its limited product offering and lack of innovation create significant opportunities for its competitors to gain a foothold in the market.
Additional threats such as a public health concerns over the amount of caffeine included in Red Bull Energy Drinks have caused the drink to be banned. Red Bull can meet these challenges and hold off the competition by focusing on new production