Red Bull Situational Analysis

769 Words May 27th, 2013 4 Pages
Red Bull is a privately owned company, producing and distributing the Red Bull energy drink to more than 165 countries worldwide. The company was founded by Dietrich Mateschitz in Austria in 1984 and launched Red Bull onto the Austrian market in 1987. Since then more than 35 billion cans of Red Bull have been consumed. Red Bull employs over 8,900 people throughout the world, its corporate headquarters are located in Fuschi am See, Austria. (N/A, 2012).

This report focuses specifically on the New Zealand distribution and marketing of this product.

Red Bull New Zealand Ltd. is the local unit of the international giant that is Red Bull. In 2010 Kiwi’s bought $30.3 million of Red Bull, this was up 7.5% from the previous year. In the
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(Underhill, 2011).
Red Bull as a product has many strengths, which increase buyer demand. Buyers feel the physical need to buy Red Bull such as when they are feeling sleepy behind the wheel of a car. Socially people feel the need buy Red Bull because of the many extreme sports red bull associates itself with.

Red Bull receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.

Potentially there are some future threats for Red Bull. Generation Y, their target market will before long grow older. This raises some concerning questions. Will generation Y still buy Red Bull when they have out grown Red Bulls target market? Will Red Bull be able to develop marketing strategies that will persuade the upcoming generation? Or will they find something else? Another threat is that Red Bull focuses all their time and energy into the one product, whereas their main competitors (Coca Cola etc.) have many products. At present this strategy is a major part of Red Bull’s success, but if in the future Red Bull’s market

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