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Patrick 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…show more content…
This has created a loyal, cultesque following. * Product can be associated with the lifestyles of so many different types of people, making it seem more versatile. Red Bull users range anywhere from cliff divers and race car drivers to students and party goers. Weaknesses: * Red Bull is a one trick pony. Red Bull’s future lies within an 8.3 ounce silver can that has had a single design and flavor since its inception. * Current pricing strategy is at least 10% above its competitors; despite offering a product that is 2/3 or even 1/2 of the size of its competitors’ products. * Red Bull has not invested into much traditional marketing which has made it more difficult to quantifiably measure the effectiveness of what they have done. * Product is somewhat controversial as far as its health benefits and effects as it was banned in Denmark, Norway, Sweden and France. In addition, Canada had banned the product but has since lifted the ban and put warning labels on the product concerning overconsumption. * Oversaturation of the market has taken away the feeling of exclusivity surrounding the product. Opportunities: * Energy drink sector is rapidly growing, somewhere between 58-73%. * Increasingly health conscious consumer is creating a new segment of energy drinks. * Consumers are looking for more variety in the

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