Red Bull Situational Analysis

With this knowledge, the Red Bull company knowingly began advertising at gyms, night spots, and to a very wide demographic of people. Suddenly not only athletes were targeted by Red Bull campaigns but so were high school and college students, people on the go, employees, and those who went to night clubs on the weekends. Popularity caught on quickly and many abruptly switched from coffee in a cup to Red Bull in a sleek, cool, blue and silver can. Students that have been interviewed in the past say that they choose Red Bull because its tastes better than coffee, it's the same price as Star Bucks, it is refreshing, it gives them

With countless reports of people being hospitalized after chugging down a Red Bull and other energy drinks, the company fails to warn possible customers of the energy drinks potential negative side-affects. And only focus on the glamorous up-side of Red Bull. By not telling the whole story, Red Bull Corporation trick anyone viewing ads about Red Bull. Which is especially important to note when most Red Bull consumers are teens and young adults. The negative consequences of drinking to many Red Bulls, are heart attack and comas to name a

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.

These manufactures will grab young people attention who are in need to increase and improve their concentration, reaction speed, and emotional state; but they fail to acknowledge the side effect of their products, such as being very tired after several hours of “sugar rush”. An over dosage of Red Bull cause a twenty-eight years old man to have a heart attack (Richards), this incidents is one of many that prove to us that this dangerous products should be banned from super markets and other easily accessed places for younger generation.

In 1982, Dietrich Mateschitz got an idea of functional drinks. He joined with Chaleo Yoovidhya, Thai businessman, in 1984 and founded the Red Bull, which today is 49 percent owned by Mateschitz, other 49 percent by Yoovidhya and 2 percent by his son Chalerm. Red Bull was first released into the Austrian market in 1987, which was the completely new product category, energy drink. (Red Bull, 2011)

Red bull is not the leading energy drink provider, but is number two with 36 percent of the Australian energy drink market (2010,popular energy drinks), the red bull company sold over 5 billion cans in 2012 and have sold over 35 billion since it started in 1987.

Despite of such threat, Red Bull has not lost its grip in its most precious

Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")

After seeing the success that Red Bull has got in the energy drinks market, new brands are entering this market. Hence, it is essential for Red Bull to make certain changes in its marketing, production and

Red Bull have used crazy sounding and subversive names to build excitement around events before you’ve even heard of them to and to indelibly stamp them as “Red Bull”.

Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.

The overall evaluation of the quality of Red Bull is very positive. The brand is very familiar, customers believe it is of good quality and have a strong purchase intent. As Red Bull is still growing, will can safely state that customers are mostly satisfied and repurchase the product.

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 has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and

1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future?