Red Bull
MKT - RED BULL
Summary
Red Bull is the most popular energy drink in the world, selling over $4.7 billion cans annually. The company was started by an Austrian entrepreneur Dietrich Mateschitz in the 80s. Red Bull pursued an aggressive yet different marketing strategy to grow their brand globally. Red Bull met an untapped need within the beverage consumer market and the strength of their brand provided them leverage to market themselves in a non-traditional manner. The brand is very strong, but does it have true staying power to last another five years as number one?
Market Situation in 2005 (now)
Red Bull is focused on the 8-oz. can category while its competitors (Hansen’s and Rock Star focus their energy efforts on 16 oz. cans at retail.
If brands such as Monster (belongs to Hansen’s) and Rock Star continue to grow north of $100 million each with strong sales per point of distribution, these big players could consolidate their fast-growing brands.
Red Bull challenges as of 2005 (now)
Analysts believe that Red Bull faces some potential bumps:
1. Product has oversaturated the market. Red Bull is in just about everywhere. This could potentially remove the “cool” factor that made the brand so successful.
2. Other companies are improving formulations, flavors, and packaging. Red Bull stays the same.
3. Red Bull has a less-than-stellar industry reputation and many people are praying for their demise as a result.
4. Red Bull is a one-trick pony, compared to others such as Coke and Pepsi). The company is in serious trouble if a) sales start to slump b) a price war starts, or 3) over-energy-drink health concerns start to proliferate.
Red Bull Response to Extending the Brand’s Reach
It was testing an herbal tea drink named Carpe Diem in LA and was considering using the name to launch an international fast-food concept
It was also about to release a quarterly magazine touching upon key themes of Red Bull life Style such as extreme sports, the clubbing life, and music.
Summary
Red Bull is the most popular energy drink in the world, selling over $4.7 billion cans annually. The company was started by an Austrian entrepreneur Dietrich Mateschitz in the 80s. Red Bull pursued an aggressive yet different marketing strategy to grow their brand globally. Red Bull met an untapped need within the beverage consumer market and the strength of their brand provided them leverage to market themselves in a non-traditional manner. The brand is very strong, but does it have true staying power to last another five years as number one?
Market Situation in 2005 (now)
Red Bull is focused on the 8-oz. can category while its competitors (Hansen’s and Rock Star focus their energy efforts on 16 oz. cans at retail.
If brands such as Monster (belongs to Hansen’s) and Rock Star continue to grow north of $100 million each with strong sales per point of distribution, these big players could consolidate their fast-growing brands.
Red Bull challenges as of 2005 (now)
Analysts believe that Red Bull faces some potential bumps:
1. Product has oversaturated the market. Red Bull is in just about everywhere. This could potentially remove the “cool” factor that made the brand so successful.
2. Other companies are improving formulations, flavors, and packaging. Red Bull stays the same.
3. Red Bull has a less-than-stellar industry reputation and many people are praying for their demise as a result.
4. Red Bull is a one-trick pony, compared to others such as Coke and Pepsi). The company is in serious trouble if a) sales start to slump b) a price war starts, or 3) over-energy-drink health concerns start to proliferate.
Red Bull Response to Extending the Brand’s Reach
It was testing an herbal tea drink named Carpe Diem in LA and was considering using the name to launch an international fast-food concept
It was also about to release a quarterly magazine touching upon key themes of Red Bull life Style such as extreme sports, the clubbing life, and music.