Swot Analysis Of Red Bull

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Red Bull is predominantly known as the forerunner in the energy drink grouping across the globe. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks” in Asia and brought this effective product in Austria, developing a unique marketing strategy for the organization. The drink itself focuses mainly on young students and professionals. It is exclusively produced in Austria and then distributed around the world through the channels of local companies and external importers and distributors. The key factor of the brand’s success is Red Bull’s marketing strategy, which is known as “buzz marketing”, and involves the trendsetters in target communities to carry the brand’s message. This unique branding plan in selling their product helped to retain the authority and distinctive nature of the brand. A brand image was cultivated that associated the beverage with younger culture, along with extreme and adrenaline fueled sports, such as motocross, mountain biking or snowboarding. By 2004, Red Bull had attained a significant market lead position, with a 70% market share. The attraction of fast-growing profits in the market and the increasingly growing success of Red Bull brought many competitors into the useful drink sector, including global powerhouses such as Coca-Cola and Pepsi. Several competitors started to emulate Red Bull’s marketing strategies in order to take market shares from the energy drink front-runner. Red Bull soon lost its individuality and began to suffer from a decline in its perceived value in the consumer eyes. They were also affected by negative publicity associated with taurine-based energy drinks, which were bein...

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...g strategy, Red Bull should keep the same tactics but also try to reach new sets of customers. For instance, while Red Bull’s sponsoring events mainly associate with extreme sports practiced by men, the brand could also focus on other sports more favored by women, like dancing, horse-riding and tennis. The company should also increase the level of its advertisements on the Internet, as most of its current and potential customers are surfing on a daily basis. Red Bull should thus advertise on appropriate websites in different countries, which students and business people are familiar with.
While Red Bull may have a higher price than its competitors, we recommend that it remains the same in order to maintain the image of a high quality product. The high price also restricts its frequent use, thus maintaining the image of the product as “meant for special occasion”.

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