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Red Bull

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by

Katharina Müller

on 27 November 2012

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Transcript of Red Bull

- created in 1987

- Most popular energy
drink in the world

-manufactured in Austria, Salzburg Red Bull "It gives you wings" Red Bull 4.6 billion cans sold in 2011 (increase of 11.4% against 2010)

Turnover: EUR 4.253 billion

employs 8,294 people in 164 countries Red Bull Red Bulls Goals:
Grow revenue and profits
Maintaining their #1 spot in the Energy Drink Market

Red Bulls Strategies:
A strategy that focuses heavily on their marketing department
In Miles and Snow - Analyzer Goals & Strategies

Where is Red Bull manufactured? Question 1 AUSTRIA, Salzburg

Elaboration
Revitalizing by :
Creating variations of their product (Red Bull Total Zero & Red Bull Cola)
Throw big marketing campaigns (Space Jump & Red Bull Crashed Ice) Where Red Bull is in their Lifecycle Functional Departmentalized Structure
Departments:
Production, Marketing, R&D, Sales, Financial, and Human Resources
Marketing brings a hybrid aspect to the structure FORMALIZATION Allows for ridged department specific procedures and flexible marketing strategies, but can result in silos that alienate departments from each other. ORGANIZATION CHART 8294 Employees Worldwide as of 2011
#1 Energy Drink Brand in the World
Over 30 Billion Cans of Red Bull Sold Since 1987
Market Leader Since Inception
Size Reduces Threat of Entry
Size Could Create Lethargy SIZE
Threat of New Entrants
~Acts like a monopoly in most countries

Bargaining Power of Buyers
~ The bargaining power of buyers is very low in the Energy Drink Market

Bargaining Power of Suppliers
~Red Bull has the option of switching its suppliers because the inputs are standard

Threat of Substitute Products or Services
~ Due to some of there ingredients, it is likely for consumers to substitute

Rivalry Among Existing Competitors
~ There aren’t any competitors that are seen as a huge threat Porters Five Forces

What department brings a hybrid structure to Red Bull’s organization? Question 2 MARKETING Complex Environment Mechanistic structure: tasks are broken down into specialized, separate parts.
Vertical communication

Many departments: just few products, but many marketing departments

Few integrating roles: no ownership, alliances or co-optations; completely self-financed

Moderate speed response: because of the huge size Environment
Porters 5 Forces
Is the bargaining power of buyers high or low, and why? Question 3 -The customer doesn’t require any important information regarding to the product
-It’s an energy drink with its apparent functionality and there’s no need to convey additional information concerning the usage of Red Bull
-The product is also not price sensitive. The price has gone from $1.50 to $1.99 and yet there has been no visible change in the sales LOW Competition
Where does Red Bull find themselves in their lifecycle and what are they doing to revitalize their company? Question 4 ELABORATION STAGE Negative perception: health risk
Ban in France, Denmark, Norway
Government regulation
Bill 29
Not sold to teens under 16
Caffeine, taurine, sugar  only small dose
Cardiovascular problems
Death Problem Definition
Red Bull X-Fighter
Red Bull Stratos
Red Bull Salzburg Red Bull - Austria
What percentage does Red Bull hold of the Energy Drink Market in Canada? In Austria? Question 5 35 % in Canada product that addresses a younger age group

Worldwide press conference

Already some response on website

health concerns in a FAQ format

gain exposure of this education by promoting it within search engines Recommendation
Environment
Does Red Bull have a stable or unstable environment? Is it simple or complex? Question 6 Complex STABLE, COMPLEX Red Bull is the pioneer and market leader of the energy drink industry
Red Bull marketing maintains its strong position in the market
Hybrid structure with functional departmentalization and flexible marketing allows for strategic operations
Worldwide distribution capitalizes on international markets
Red Bull – It give you wings Conclusion

Which environmental sector influences Red Bull? Question 7 Governmental Regulation To revitalize:
- Extent their product by introducing healthier options and Red Bull Cola
- Sponsoring and holding events to market their name 90% in Austria
Full transcript