...Case Study 11.1 Red Bull: The global market leader in energy drinks is considering further market expansion November 16th, 2015 Executive Summary Red Bull, an original in the energy drink market, was founded in 1984 by marketing guru Dietrich Mateschitz and formula developer Chaleo Yoovidhya. The product is often used for boosting energy, increasing focus, and as a mixer for alcoholic drinks. Red Bull is well recognised for its extreme marketing strategies. For example, Red Bull has a “Mobile Energy Team,” which is largely made up of university students. The Mobile Energy Team regularly travels from University to University to promote Red Bull and provide samples of the product. A second example of Red Bull’s marketing strategy is their support for extreme sporting events, for example; Nascar driving. However, with the increase of new entrants in the functional drink market, Red Bull’s market share has decreased. This decrease leads straight into the problem statement; What strategy(ies) can Red Bull, the global market leader, use to further expand into current and emerging markets within the next three years in order to increase market share and sales? Several symptoms from the case where used to create an Industry Competitive analysis, a Fishbone analysis, and a SWOT analysis. Ultimately, after evaluating the Industry Competitive analysis, the Fishbone analysis, and the SWOT analysis, three alternatives were chosen to be further explored. These three alternatives...
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...Giving Wings to the Red Bull Market Table of Contents Table of Contents 2 Executive Summary 3 Issues in the Case 4 Rise of New Competitors 4 Lingering in New Product Development 5 Attracting Only New Youngsters 7 Data Analysis 7 Alternative Data Analysis 11 Recommendations 12 Action and Implementation Plan 13 References 15 Giving Wings to the Red Bull Market Executive Summary Red Bull has become a long-term leader in the energy drinks market. It has achieved a worldwide expansion, being part of the top brands in the sports and energy drinks industry. Moreover, its brand is one of the most recognized in the world. Consumers immediately relate their logo and slogan to extreme sports and other adrenaline-filled activities. Their brand image is powerful and stronger than brands like Nike and Apple. However, the company has been failing in targeting international consumer behaviors. It has been losing consumers due to the rise of competitors, lingering in new product development, and to its specific target market of 16-year-old youngsters. The company is now behind Monsters Energy in the United States and, in the worldwide sports drinks market, behind Gatorade (Pepsi) and PowerAde (Coca-Cola). Moreover, it has been missing large market opportunities such as Latin American countries that have a large consumption of soft drinks. Their approach to consumers needs to change in order to recover their position as the leader energy and sports drinks...
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...Marketing Essays - Red Bull Table of Contents Introduction Red Bull has created a strong brand image, using colourful icon with two bulls in opposition and a memorable tag line; ‘Red Bull gives you wings’. Through creative marketing and sponsorship it has linked itself with extreme sports, innovative music and art, all aimed squarely at the youth market (Dahlen, Lange and Smith, 2010). This brief examines brand development, which strategies have helped it to success and where the brand goes from here as it faces the prospect of losing its cuttingedge image while continuing largely with only one product. Red Bull is a European success story. The product was launched in 1987 in Austria. It faced opposition from the Food and Drink Administration (FDA), who refused to clear it for distribution but despite this it became an underground success through clubbers and snowboarders. This anti-establishment stance found synergy with consumers, even after it was cleared for sale. It quickly spread into neighbouring countries and into the US market (Franzen and Moriarty, 2009). Dahlen, Lange and Smith (2010) note that by 2004, it had gained 40% share of its market sector and 70% in Europe. However, the brand still faced problems; it was banned in Denmark and France following unsubstantiated rumours that people had died from drinking the product in Sweden and Ireland (Mail Online, 2001). The European market was stagnating, and it faced distribution problems from companies...
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...Davis Red Bull 11/1/2012 Executive Summary Red Bull makes a premium energy drink for students, drivers, clubbers, business people, and athletes around the world to revitalize their bodies and minds. Problem: Red Bull, the leader in the energy drink sector of the soft drinks market, has seen its market share drop from 75% in 1998 to 47% in 2005. For the first time in the young energy drink sector, competitors have developed a legitimate share of the market: Hansen Natural’s Monster with an18% share and Rock Star with a 16% share. What actions need to be taken in order for Red Bull to solidify its market leader position? Answer: Red Bull should create a line extension offering either a diet drink to appeal to the recent trend of health conscious consumers or a new flavor while also changing their price point to be more sensitive to the consumer. By doing this, it will allow Red Bull to fight its competition in a very similar fashion to how they began to lose their market share (competitive pricing and a variety of options). Rationale: Red Bull has the strongest brand awareness in the energy drink segment which provides instant credibility to any line extension they may come out with. Red Bull has the extensive distribution network to make sure the product reaches the consumer no matter where they are. Market trends are currently in Red Bull’s favor as they show the customer wants options; giving Red Bull the perfect opportunity to develop a new product. Red Bull has the...
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...Kline Beecham. However, Red Bull included other ingredients to achieve a different flavor. (Figure 1: Red Bull Founder- Dietrich Mateschitz) So it was that in 1984, Mateschitz founded the Red Bull GmbH company. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. Red Bull rapidly gained in popularity, giving people wings right from the start. In 1992, Red Bull touched down in its first foreign market, in Hungary. Today, Red Bull is energizing over 100 countries around the globe, such that many superstores have copied the idea with their own brand products, which invariably are inferior in one aspect or another.Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA, New Zealand, South Africa, Eastern and Western Europe. Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States. (Ohio, Tennessee and the Dakotas are among the few states without it.) In less than three years, Red Bull singlehandedly established and then lifted the booming energy drink category from a base of $12 million in (wholesale) dollar sales to $42 million in 1998 and $75 million in 1999, per Beverage Marketing Corp. Others soon followed, building energy drinks to a $130 million business. Now Coke (KMX) and Anheuser-Busch (180) are jumping in. Last year, Red Bull's market share stood...
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...internationalization process of Red Bull from the perspectives of global expansion Group 2263: Karakawat Sarasalin 830117 Thitiporn Watthanachai 831031 Supervisor: Jean-Charles Languilaire 23rd November 2009 1 Abstract Date: 23rd November, 2009 Level: Master Thesis in International Business and Entrepreneurship (EFO705), 15 credits Authors: Karakawat Sarasalin (830117-T255) Thitiporn Watthanachai (831031-T124) ksn08001@student.mdh.se twi08001@student.mdh.se Title: The internationalization process of Red Bull from the perspectives of global expansion Supervisor: Jean-Charles Languilaire Problem Statement: How did RED BULL manage to be as an important central international market player? Purpose: The purpose of this research is to describe the internationalization process of Red Bull; how Red Bull created, sustained and developed? Method: We mainly use secondary data and the qualitative data. Qualitative data in the form of interview questions through e-mailing. But we also use quantitative method based on documental research from books and internet. Conclusion: Red Bull does not follow the standard pattern of establishment chain presented in the Uppsala model. Its establishment chain is composed of three stages: licensing ,wholly owned sales subsidiaries and jointed venture. Red Bull has developed strong market within the beverage industry network and strong bonds with its external suppliers. The expansion decisions of Red Bull have been influenced...
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...Background of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting...
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...Marketing Plan Outline: Red Bull Marketing Background Company and Product Review In 1982, Dietrich Mateschitz, creator of Red Bull alongside Chalerm Yoovidhya, saw 1 where Japan and Thailand were heading in the energy drink market and decided they wanted a piece of the pie. By 1987, Austria proved to be a difficult market for Red Bull to survive in and soon Mateschitz expanded into Hungry and the rest of Germany. After expanding across Europe with a lot of trial and error Red Bull was $12 million in the hole. Rather than scrapping Red Bull as a loss, Mateschitz fired all his staff and hired a marketing firm to help him target nightclubs and students. Buzz marketing became the main focus of Red Bull’s marketing plan, and soon students were pounding campus pavement and driving around in Mini Coopers with a big Red Bull can strapped on top with free samples. His buzz marketing proved to be not only cost effective, but the very thing that gave Red Bull its appeal. Although Red Bull was not welcomed with open arms in all countries, such as France, Denmark and Norway, it was growing and expanding. Mateschitz soon realized that an extreme sporting event was a profitable avenue to take Red Bull down. Red Bull started supporting approximately 500 extreme sports athletes and hosting exclusive parties for these rock star competitors. By 1997, Red Bull’s buzz marketing strategy proved successful in the U.S. as well. Events are now hosed throughout the world ranging from B...
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...assess the company Red Bull and their energy drink Red Bull Energy Drink, in a manner in which the market/industry, environment, competitors, customers, and the brand were all analysed by using secondary research. A SWOT analysis was also conducted. Through this research and analysing, it was found that Red Bull is the dominating leader in the energy drink market and sells the most units of its product worldwide. However the company does have close competitors in Monster Energy Drink and Rock star Energy Drink. Although Red Bull has massive internal strengths in being leader in the market share and sponsorship of events, it also has weaknesses in lack of innovation and diversity. Their opportunities however, could be to extend the product line or team up with another company such as Smirnoff. The threats present to Red Bull are the unhealthy image associated to it by society and health critics and the rising competitors. Despite all these possible setbacks Red Bull continues to be the number one seller of energy drinks worldwide. Introduction 1.1 Give a general introduction to the assignment The aim of this report is to analyse the product Red Bull Energy Drink produced by the company Red Bull, and apply theoretical concepts to the energy drink product category, including analysing information relevant to the industry, environment, competitors, customers and brand of Red Bull all done through secondary research. 1.2 Describe your product The Red Bull Energy Drink is a...
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...CASE STUDY OF RED BULL OVERVIEW Dietrich Mateschitz, an Austrian businessman founded red bull in 1984 in Austria. He introduced the drink in Hungary, its first foreign market, in 1992. Red Bull currently is the leading energy drink across the entire globe and holds 42% of the markets share worldwide .Today Red Bull has annual sales of around 4 billion cans in 160 countries including Austria, Germany, United Kingdom, Brazil, Japan, India and South Korea and USA. Their target market is centered on the youth otherwise known as the ‘Generation Y’. Red Bull started with the Red Bull Energy Drink (a slick silver 250ml can with a European look and feel) and later added three(3) of it functional product that is the Red Bull Sugar free, Red Bull energy shot and Red Bull cola. Big global companies such as Coca Cola and Pepsi has introduced their own energy drink versions to their product base and are strongly competing with the Red Bull brand. MARKETING STRATEGY It was generally acknowledged that Red Bull's success was the product of the company's integrated marketing communication efforts to constantly develop the brand. The information below discusses the marketing strategy adopted by Red Bull in the case. - The company's effective employment of buzz marketing in new markets that target trendy shops, clubs, bars, stores, convenience stores(gym, colleges and supermarket) to create widespread brand recognition - Sponsorship of sporting activities, especially extreme sports including...
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...ANALYSIS STRUCTURE: 1. INTRODUCTION 2. THE PROBLEM i. Objectives ii. Barriers 3. THE ALTERNATIVES 4. THE ISSUES 5. THE CONCLUSION 1. INTRODUCTION Red Bull Stratos occurred on 14 October 2012 in New Mexico, USA, and it is commonly considered to be a milestone in the evolution of marketing. Red Bull athlete Felix Baumgartner has jumped towards Earth, from a helium balloon, from an altitude of 39 km. He is the first (known) human being breaching the sound barrier while descending, without any form of engine or inertial support, and surviving this endeavour. The jump qualifies not just as a PR stunt but it is, up to date, the greatest example of content marketing creation and dissemination. The immediate effect consisted in: * 8 million concurrent views on YouTube live; * Two threads on the front page of Reddit; * 2.000.000 unique consumers actions; * 1.000.000 distinct Stratos participants; * 2.000.000 new subscribers; * 820.000 pieces of extremely positive content created; * 400% increase over average length of consumers engagement; * 50.000 distinct links shared; * 61.634.000 trusted impressions generated; * At its apex, some 1% of all online conversations worldwide were about Baumgartner, Red Bull and Stratos Mission 2. THE PROBLEM ...
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...Executive summary Introduction In 1984 Mateschitz founded Red Bull. Red Bull Energy Drink was first sold on the Austrian market in 1987. Red Bull reached its first foreign markets in 1989 in Singapore and in 1992 in Hungary. In 2008 Red Bull created its own cola, Red Bull Simply Cola. It created a market segment unlike traditional colas, by using only 100% natural ingredients. In 2009, Red Bull extended its product line with Red Bull Energy Shots. Red Bull headquarters are based in Fuschl am See, near Salzburg Austria. Approximately 4 billion cans of Red Bull are consumed each year; the product is available in 160 countries. Red Bull is the leader of the energy drink market and performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world, which, despite the widespread economic gloom, has always taken a growing interest for this drink. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position and to think about some recommendations to further improve its strategy. The Product Red Bull is a lightly carbonated drink that enhances mental and physical...
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...Introduction The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students. Red Bull’s marketing strategy is one of the key factors in their success, they created Mobile Energy Team that consists primarily of young university students driving around in specially designed Mini Coopers with large Red Bull cans on top to attract the younger audience. The students are Red Bull’s team out in the field that attend different events and provide sampling of the energy drink. Oftentimes, the Red Bull representatives host parties with cases of Red Bull. These representatives collect data from these parties and send it back to the company as a form of low cost market research. In 2010 Red Bull had 7,758 employees of which 5,000 were university students. Red Bull is also known globally for hosting extreme sporting events and sponsoring some 500 athletes. Over the years they have acquired four soccer teams, a Nascar team, and two Formula...
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...Marketing Research for New Product of Red Bull 6 March 2015 Business Research/Analysis - BMDS 6340 Final Group Paper Spring I, 2015 Table of Contents Introduction 3 Company Background 4 History of Red Bull 4 SWOT analysis of Red Bull 5 Current business market environment and competitor’s analysis 6 Management dilemma against new product 7 Product offering and market strategy 9 Product Offering 9 Market Strategy 9 Research design and analysis 10 Research design and testing 10 Research findings 11 Business Strategy development and implementation 12 Business strategy development 12 Business strategy implementation 13 Conclusion 14 Introduction To keep itself competitive and ensure long-term sustainability of the business, companies keep on making effort to innovate and revitalize their product and service portfolio. Such practices require substantial efforts in researching the consumer demands or expectations, assessing product feasibility and identification of potential market opportunities. The insights derived from such efforts plays critical role in developing and supporting various strategic decisions taken by company to expand its business scope and explore new business opportunities. The market research is performed by the companies to solve certain specific business objectives, among which the exclusive purpose can be mentioned as: assess the revenue generation prospect of the business opportunities, evaluate the competitiveness of the company, identification...
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...Red Bull Marketing Plan Introduction Red Bull, the iconic pioneer of the late 20th century energy drink movement, is enormously successful and popular. Everyone has had days where a cup of coffee seems woefully inadequate, and beverages such as Red Bull “give you wings”, as their slogan promises, and offer a refreshing lift to help people conquer their overfilled schedules and endless meetings. However, with only one flavor and a seemingly narrow target demographic, is Red Bull really capitalizing on their significant brand equity? In this marketing plan, we will discuss the possibilities that lay ahead for Red Bull, including modifications to product, pricing, distribution, and promotional strategies. Since Red Bull is such a polarizing drink, the marketing plan will take a dual approach of increasing the rate and profitability of sales from existing loyal customers, while addressing the needs of potential new customers who have not recently found their needs met by Red Bull’s current offerings. Situational Analysis A classic SWOT analysis of Red Bull reveals many positive attributes that make the drink a strong product upon which to build a successful marketing campaign, but also show that there are negative aspects of the product that lead to a wealth of opportunities for improvement in marketing and product design. The product’s strengths are numerous, but the primary strength of the product is its strong brand recognition. Because Red Bull was the first energy...
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