• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Red Bull Case

Extracts from this document...


Andrew Bartlett MKT 814- Strategic Marketing Professor Barretti 10/7/2010 Red Bull Case Analysis Red Bull can be called a pioneer in the energy drink category worldwide. Dietrich Mateschitz began the evolution of the energy drink back in the late 80s when he launched, Red Bull in Austria. The company was set up to market one product, Red Bull energy drink. They were successfully able to situate themselves in this relatively un-navigated market through their innovative marketing strategy. Red Bull did this by not narrowing its target market to one segment. Rather it focused on three groups, athletes, workers, and clubbers. The idea was that each one of them used Red Bull energy drink to meet their personal needs. Red Bull reached out to their target market by relying on a marketing scheme that was based on advertising, sampling and sponsoring. They found innovative ways of getting their product known to the public. Red Bull was successful because they did not rely on mass-media when creating their beverage brand. One way Red Bull accomplished this was relying their marketing on what they called "buzz marketing" or word of mouth. This "buzz marketing" aided them in their movement into different global markets. ...read more.


The first aspect of the TOWS model looks at how a firm can use its core competencies to gain a sustainable competitive advantage in the market. In the case of Red Bull, they are in a market that is continuing to grow. It is very important for them to effectively use their strengths as a company to gain a lead over the ever growing competition. Currently, Red Bull is the market leader in the energy drink market. It would be beneficial for them use their position in the market to venture into new markets. Red Bull can accomplish these endeavors into new markets by using their successful market entry strategy. There are many small competitors entering into the energy drink market and it is diluting the industry. Red Bull already has strong brand identity, which can be helpful to them in creating stronger barriers to entry for this competition. They have done a good job getting their brand out to the public. In order to keep up brand awareness, Red Bull must continue to capitalize on its sponsorship of extreme sports and events. This will help keep up their "edge" image to their target market. ...read more.


If by chance Red Bull were to encounter serious affect from the growing competition, they could address this by counteracting any weaknesses they have. Any action taken by Red Bull in this stage is only meant to avoid complete breakdown. However, at this time this is not much of a concern for Red Bull. As a market leader, they must focus retaining their hold on that position in the energy drink market as it grows. Overall, Red Bull has come a long way since it start back in the early 1980s. They entered into a non-existent market and built it up from the ground up. Red Bull developed its brand name by relying on their unique marketing strategy. It was this strategy that guided them to become the leader in the market. However, as the energy market grows, Red Bull must continue to expand on its marketing strategy to avoid any threats from potential competitors. They must adapt to any changes that are occurring in their target market and be willing to create the necessary change. Currently, as a market leader, Red Bull needs to be focusing on keeping that lead. Ultimately, the best way for any market leader to keep their position they must continue to find ways to raise the barriers to entry to offset the threat from market competition. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Free essay

    Redbull in India - SWOT analysis. The Indian Energy Drink Market is estimated to ...

    Clubs An important collaborator of Red Bull is Clubs. Clubs sell Red Bull for non alcoholic customers. They now cherish the idea of drinking a drink like Red Bull over Fresh Lime soda. Red Bull is considered as a club drink.

  2. Marketing Red Bull in Pakistan.

    includes a percentage of females who do not like the taste of Red Bull. Age: Red Bull is a drink for people aged between 18 and 35. Children below that age are not recommended to have Red Bull and working adults aging 40 reduce consumption when they reach that age bracket and prefer tea and coffee more.

  1. Free essay

    Red Bull essay

    on getting the word out through sponsoring and getting their brand associated with youth culture and extreme sports event, many of them had flying theme consistent with the brand slogan. Red Bull strongly believes in the importance of context of their drink consumption therefore their communication channel are focusing on

  2. Caterpillar Mitsubishi case study

    * He applied the same principle to Caterpillar's entire structure, developing a company wide reorganization plan under Schaefer's direction. Caterpillar's old organization structure was only suitable in US, but as the company expanded globally the limitations of such structure become apparent.

  1. Marketing of Red bull

    Selling is only one part of the marketing process. Before selling Red bull, they must carry out market research. > Marketing and advertising are not the same; advertising is just one of a number of tactics used by marketing departments. > Many businesses regard profit making as their main objective.

  2. My product is a health orientated, functional energy drink, made using a combination of ...

    Red Bull Red Bull was founded in 1984. It is now marketed in over 40 countries worldwide and has had more than 150% increase in sales between 1994 and 1999. It clearly dominates the functional energy drinks sector, a sector it largely created, and accounted for some 42% of market value at the end of 1999.

  1. Marketing Rockstar Energy Drink

    In North America alone there are over 210 brands of energy drinks, which are essentially different permeations of the original Red Bull formula imported from Austria in 1997. (Gates, K. 2008) The Rockstar brand is well known in North America, however in the UK there is limited brand awareness and restricted distribution outlets.

  2. Case study: Red Bull is still the leader in the energy drink market, but ...

    ________________ Situation Analysis The facts of the case. This section is optional and should have a brief synopsis of any salient details that might be impactful in your later discussion. This could be a paragraph, maybe a few more, but definitely not multi-paged.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work