Preview

Marketing Test: Case Study on Red Bull Company

Powerful Essays
Open Document
Open Document
1226 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Test: Case Study on Red Bull Company
Case study 2 19 marks (Red Bull)

Question 1
Discuss 2 red bull greatest strength and 2 risks? Pros and cons
Although Red Bull is a fairly 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. Red Bull’s success over the past 20 years can be attributed to the company’s ability to highlight its strengths and minimize its weakness
Strengths
1. Red Bull’s marketing strategy
Red Bull’s marketing strategy is vastly different from other companies in the beverage industry. Rather than employing traditional marketing techniques, Red Bull has adopted “anti-branding” and “anti-marketing” strategies. They have used no print, billboards, banner ads, or Super Bowl spots, and minimal television ads. Instead they focus on viral marketing based on word of mouth and a “seeding program” focused on getting Red Bull products into trendy shops, clubs, and bars.
2. Effectively align with its distributors
Another significant strength that Red Bull has demonstrated is its ability to effectively align with its distributors. Red bull builds buzz about the product through grassroots starting with its “seeding program”. Once Red bull has gained some momentum its next moves are prime location and target audience of men and women aged 16 to 29.
Despite its significant strengths, Red Bull also has weaknesses 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 expenses present opportunities for competitors to overtake Red Bull as the market leader
Weaknesses
1. For years, Red Bull only offered one product, Red Bull Energy Drink, in one size, 250ml. In the last ten years, they have created two additional product offerings, Red Bull Energy Shots and Red Bull Cola. Each of these new products is just a slight variation from the original Red Bull drink. During

You May Also Find These Documents Helpful

  • Better Essays

    Since Red Bull is such a large company it would not be useful to determine the marketing strategy because it is believed that Red Bull simply cuts through lifestyles. So for a product like Red Bull the best marketing strategy would be behavioral segmentation. Red Bull is a special drink serving a niche market. Consumers of Red Bull are men and women of all ages, who are sporty and very hard working. Red Bull has a very trendy image and gets sold in a lot of bars and clubs.…

    • 1553 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    P1 Unit 3 Market Research

    • 2047 Words
    • 9 Pages

    One main thing Red Bull Drink does is that it has a distinctive product. The taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks. Red Bull uses premium pricing strategy. The product is priced above that of competitor’s products.…

    • 2047 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Interpret market trends and developments BSBMK507A Introduction: Red Bull is an energy drink sold by Austrian company Red Bull GmbH, created in 1987. In terms of market share, Red Bull is the most popular energy drink in the world, with 5.2 billion cans sold in 2012. Austrian entrepreneur Dietrich Mateschitz was inspired by a pre-existing energy drink named Krating Daeng, which was first invented and sold in Thailand. He took this idea, modified the ingredients to suit the tastes of westerners, and, in partnership with Chaleo Yoovidhya, founded Red Bull GmbH in Austria.…

    • 932 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Gatorade Research Paper

    • 1010 Words
    • 5 Pages

    After its introduction in 1987, Red Bull started to fill the void within the sparsely populated energy drinks market and quickly grew to become a household name. With approximately 45 percent in current market share, Red Bull towers above all of its competition in the energy drinks market. Utilizing highly effective marketing tactics that involve TV and radio ads, sponsorship agreements and celebrity endorsements, Red Bull has converted many top athletes causing a slight shift from sport drinks to energy drinks within the general public. Over the years, this trend has caused concern to Gatorade and its competitors since it directly affects sales…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    RED BULL CASE STUDY

    • 401 Words
    • 2 Pages

    Red Bull is known primarily for its dominating position in the energy drink business, selling its Red Bull Energy Drink.…

    • 401 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Analysis of Red Bull

    • 2052 Words
    • 9 Pages

    Red Bull is the leading brand in energy drinks and they have been the number one energy drink in the market for the last 25 years. Initially, it was only known as this type of beverage, but in 2007, it began to grow into becoming a media company known as Red Bull Media House as well. Because of the co-relation to the activities that the energy drink can do and promote, Red Bull has evolved to becoming a multi-platform media company that focuses on sports, culture, and lifestyle.…

    • 2052 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Red Bull Case Study

    • 2396 Words
    • 10 Pages

    Marketers are increasingly segmenting their market on consumer’s lifestyle. Red Bull cola must also target psychographic segments as it appeals to be iconic brand. They have more focus on life style and social class of people. They are trying to be trendy.…

    • 2396 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Red Bull Research

    • 1909 Words
    • 8 Pages

    Secondary research clearly states that Red Bull contains excessive amount of chemicals, some publications even compare it to highly addictive drugs as well as blaming the product for some deaths. Secondary data also helped us identify a growing number of competitors that Red Bull has, the number exceeds a hundred. However, surprisingly to most, secondary research reports show that the sales of the product are increasing each year rather than decreasing as could be expected.…

    • 1909 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Energy Drinks

    • 1785 Words
    • 8 Pages

    Red Bull, introduced in the United States in 1996, jump-started the energy drink business. The Austrian company has dominated the market ever since, and in 2004, its sales topped $1.2 billion. His other competitors include multibillion dollar companies Coca-Cola and Pepsico.…

    • 1785 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Red Bull Marketing Plan

    • 1822 Words
    • 8 Pages

    Red Bull was discovered in 1987 and 10 years later it launched its product in the United States in the year 1997; it created a new category in the U.S. beverage business, a category of nonsoda sports and energy drinks. Now, it has been 10 years since the introduction of Red Bull in the U.S. market and it has created a name and an attitude with its marketing techniques carefully targeting its potential segments. The demand for it is ever increasing; it is very well…

    • 1822 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    With a company that has 70 to 90 percent of the market share in over 100 countries worldwide, the most important recommendations boil down to sustainability (Gschwandtner). Red Bull has done most things right in the business world – they have minimized costs by using viral marketing, maximized image to gain huge market shares, and most importantly have stuck to core competencies. Emmy Cortes, the Corporate Communications Manager for Red Bull North America was quoted as saying, “we are one of the few companies in the world that can stay focused on one product, so we do what we do best” (Rodgers). However, the fact that Red Bull is doing so well does not eliminate room for growth and definitely does not guarantee them infinite brand security in today’s changing world. There are a few recommendations and ways of implementing them that should be addressed.…

    • 996 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Red Bull's Competitors

    • 1160 Words
    • 5 Pages

    To compete with other brands of energy drinks, Red Bull is putting a large effort in marketing promotion. It becomes a well-known brand by using creative TV advertisements and the catchy slogan. It is successful for Red Bull to differentiate its image from other competitors by promotional campaigns.…

    • 1160 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Marketing and Red Bull

    • 645 Words
    • 3 Pages

    1. Who 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?…

    • 645 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Red Bull Case Study

    • 3134 Words
    • 13 Pages

    Red Bull gained popularity throughout the years for various reasons: some say the way they marketed was exceptionally important to their success and others believe they became a leader in the market (with about 70% market share by 2003) not only because they were the first to endeavor selling a soft drink with no intention to sell a good taste (unlike Coca-Cola, or Gatorade), but also because as Markus Pichler – who was in charge for engineering Red Bull’s introduction to the USA – claims “The basic thing is that the product works. It delivers benefits that are relevant to consumers. We provide them with energy. We are relevant for…

    • 3134 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    Redbull Sales

    • 592 Words
    • 3 Pages

    This market share and brand recognition has allowed Red Bull to hold their ground and fend off larger beverage companies like Coca-Cola and PepsiCo.Even with such a dominant position in the energy drink market,Red Bull continues to grow.Figure 1 indicates the significant position Red Bull has over all other top competitors in the energy drink…

    • 592 Words
    • 3 Pages
    Satisfactory Essays