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Red Bull Case

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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.

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