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Red Bull Case

Red Bull market study

Lennart Rumpf

on 11 May 2013

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Transcript of Red Bull Case

4 P's Product Placement Promotion -match the prices of their main competitors
-highest price in branch
-often on sales -Almost everywhere
around the world
-in almost every store for
example at gas stations -sponsors many sporting activities
-Use movies to show their product
- “Red Bull gives you wings”
-Snob appeal; Youth appeal -Energy Drink -contains caffeine ->Gives you energy to concentrate yourself-they didn’t change the design Basti, Finn,
Lennart and
Tobias BCG Matrix PEST Analysis Advertising Strategy Redbull is using a glocal strategy:
that means, that they sell the same product (somehow the format might differ) everywhere, they still need to refer to local sources for their marketing and regional operations. Segmention criteria for international market selction process Objectives The main criteria to retain concerning the segmentation is the "young dynamic" population, representing worldwide the main consumers of red bull products. Basic Facts Structure -BASIC FACTS+Philosophy
-4 P's
-corporate identity
-BCG analysis
-Conclusion Price Political Economy Social Technological A
A Attention Interest Demand Action Coporate Design The two bulls The ad slogan "Redbull gives
you wings" very famous every type a visual
advertisement uses the two bulls Red bull tries to get attention in different ways, -sponsor a lot of sports events
-ads in magazines
-ads in TV- shows
- so actually, there are not a lot of people on the world, who haven't a least heard of RED BULL.

So, they get your attention, by sponsoring F 1 or having funny or extrem ads. -Most of your idols drink Red Bull
- Red Bull makes them extrem
-give drinks away,
so people try the drink
-Often offered in Special Boxes - Be as your idol is
- Red Bull makes you extrem
- Often Special Editions (scarcity) Target Group 18-35 years ,live an active lifestyle

who enjoy extreme sport

work hard and play hard

not determined by a geographic, but a “state of mind” Monster •Government could impose health and safety restrictions
•Government could introduce import and export charges, which would either increase or decrease the amount of energy drinks imported and exported
•No fear of getting into trade dispute between Europe and the USA, because of fabric in Switzerland
•Still no market approval in 32 countries in the world Competitors: Red Bull has to deal with strong competitors, which all have much better pricing and nearly the same product
Recession (-0.2 %): during a recession the sales of Red Bull will decrease, since the product is not a necessity
Inflation (3.6 %): Due to the inflation rate of 3.6 % the price of Red Bull will rise further. •There are common thoughts about the Red Bull energy drink to have negative side effects on the health of the consumer, due to the taurine and high amount of caffeine in it
•Everybody around the world Knows what Red Bull is, for it has huge advertising campaigns in sponsoring many extreme sport events such as red bull crushed ice or the summer X-games
•Energy drinks are directly associated with Red Bull, therefore, its easy for the Business to establish the drink in every county around the world and people would instantly know what they will get. •The Internet and TV have huge potential for advartising,
since many red bull events are displayed in the TV and Internet
•Red Bull can use the online market to trade their products.
This, however, will only be profitably if Red Bull gets mass orders,
because nobody would buy a single dose online Evaluation Red Bull Created
a new market lost a lot of
Market share In how far is Red Bull able to maintain their dominance
on the market in the long term perspective? is Red Bull able to keep their dominant position? Coca Cola as a role model Like a coffee replacement
millions of customers It is hard to predict
we think it will
depend on the
qualitiy of
the advertisement - maintain position as leader in energy drinks
- increase sponsorship into other areas
- expanding the reach in the U.S.
- launch localized events
- expand their global media network
-produce more content for their channels - “Lifestyle drink for the extreme crowd”
- Gives “wings” to people in all parts of their lifestyle
- Pushes people to the extreme in every situation
- Logo embodies power and energy Philosophy Strengths Extremely popular, energy drinks are directly associated with Red Bull

Traded in 164 out of 196 countries in the world

Leader in the energy drink market

Excellent marketing strategy: Sponsors all major extreme sport events

Associations with other big companies, such as Cadburry Schweppes in

Created the energy drink market

Not influenced by shareholders Weaknesses
Very little variety of products

Lack of innovation, when it comes to the ingredients of the energy drink

Competitors are gaining market share

product is not patented

Price is very high compared to competitors, who provide the same product

depend on fabrics to produce the drink Opportunities Build up own fabrics to produce the energy drink

Invest in innovation in order to make the drink healthier

Expand further to eventually trade their product in every country in the world

New associations with other companies

Buy smaller competitors

Could change their business structure and list on the stock exchange Threats Competitors could take over the market

Peoples preferences could change

Some countries could ban Red Bull, due to its unhealthy ingredients

Advertisement could become to expensive

Energy drinks are not a necessity SWOT Sources http://www.redbull.de/cs/Satellite/de_DE/RED-BULL-DE/001242746061488
http://www.drawert.com/red_bull_5.php founded in 1984 by Dietrich Mateschitz, Chalerm Yoovidhya in Austria
profit on sales : 4,93 bil. $ in 2012

worth 9,984 Mrd $ Special spots in the grocery store
Large amounts of cans
Lead people to the products Stars Cash Cows Question Mark Dogs Market growth Market share + - - + 4,9 bil $ 1.7 bio $
Full transcript