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Red Bull: the Global Market Leader in Energy Drinks Is Considering Further Market Expansion

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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 can be summarized as: 1. International Production in Emerging Markets 2. Healthy Product Variants in Western Countries 3. Off-trade Retail and Strategic Alliances

The first suggestion focuses on international production in emerging markets. As taken from the case study, China, India, and Indonesia, have been recommended as the initial markets to target. These countries were...

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