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Red Bull: Strategic Management
Transcript of Red Bull: Strategic Management
A Strategic Management Analysis
Daniel Andressen, Latif Arouna, Miguel Cañamero, Sandra Duch
Product and Price
Strategic Management Discussion
Strategic Management Discussion cont.
Austrian toothpaste salesman Dietrich Mateschitz and Thai businessman Chaleo Yoovidhya founded Red Bull GmbH in 1984.
The Energy drink market has increased double since the first time it has been introduced in Europe and the United States.
Within the U.S. the market encompassed approximately US $ 15 billion in 2011.
Was launched with the slogan “unleash the beast” in 2002 and is operated by Hansen Beverage Company based in Corona, California.
Red Bull is the most popular energy drink in the world, in terms of market share, selling over 5.2 billion cans worldwide in 2012, representing a 12.8% increase from the 2011 figures.
: recently diversified.
: football, Formula1, hockey and WRC .
: 3 to 6 more expensive than competitors.
: wide rage of consumers excluded, high barrier for first time buyers.
Felix Baumgartner & Red Bull Stratos
Product Line, Premium Product?
“ What Red Bull stands for is that it ‘gives you wings…’ which means that it provides skills, abilities, power, etc., to achieve whatever you want to. It is an invitation as well as a request to be active, performance-oriented, alert and to take challenges. When you work or study, do your very best. When you do sports, go for your limits. When you have fun or just relax, be aware of it and appreciate it.” Mateschitz
Political and Legal
At first the Health Organization was suspicious that Red Bull could be a starter drug.
Red Bull still needs to be approved by each country where it shall be sold, which is a very time consuming and therefore expensive.
Red Bull is a special drink targeting a niche market there if faces little exposure to economic cycles of growth and recession.
Socio - Cultural
The consumers are both male and females regardless of age, who are very sporty or study hard.
Red Bull gets exclusively produced in Austria from where it is exported.
The can for Red Bull is made out of recyclable aluminum and it is therefore environmentally friendly, which shows the customers that Red Bull also cares about the wellbeing of the environment.
Porters Five Forces Analysis
SWOT Analysis & Value Chain
Extensive Geographic Presence
High Marketing Costs
Risk to Athletes and Stunt Related Deaths
Risk to Consumers?
Diversification or continue?
Product may be too expensive for lower demographics
Tasting Red Bull for the first time is more expensive than competitors, detering the first purchase
Customers often associate high price with high quality (important regarding health concerns)
Market share: Red Bull can charge high prices and not lose too many customers
Word of mouth
- Own display container at point
- Own magazine (Red Bulletin)
- Mini brand cars
- Premiums, discount coupons
- Create buzz in order to generate
excitement amongst customers
- External factors have contributed
to this technique