Red Bull Strategic Analysis Research Paper

7092 Words Dec 30th, 2012 29 Pages
1. Introduction

Red bull is a leading energy drink company in the world, with global sales of 4.631billion cans in 2011 accounting for 70% market share of the world energy drinks market. Since its foundation in 1984, Red Bull has made a significant expansion in international markets to over 161 countries and generated over 4.25 billion euros in turnover throughout the world employing 8,294 employees globally by end of 2011. According to, the trend of energy drinks has rapidly growing in a global market and growth faster than a big brand of soft drinks So, Red Bull has many excellent strategies and makes the competitive advantage branding in a global one. A thorough analysis of energy drink producer Red Bull concludes that the company
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Their products are sold worldwide and Red Bull is currently developing new global markets.
Expenses:
Red Bull has two main areas of great expenses and those are its advertising, and operation expansion into new markets. They company’s strategy of marketing and brand recognition is through the sponsorship of athletes and sports teams around the globe. Red Bull is investing 15% or $900 million dollars to its advertising and sponsorship campaign in 2012. (http://investing.businessweek.com). Red Bull is also investing in its global expansion of its operations. The company has recently opened operations in three more countries over the last year alone expanding their presence in164 countries. Expansion into untapped markets will require investments in real estate, equipment, and personal, which has been committed to be paid out of their cash flow.
The objectives to be gained through these expenses are for Red Bull to stay in position as the market leader, to be the brand icon within extreme sports and to expand that image into new markets.
Investments:
* Red Bull is investing heavily into its future through brand recognition and they are primarily using athlete and sports sponsorship as a vehicle to achieve brand loyalty. The company has budgeted $900 million dollars to marketing in order to expand existing markets as well as to break into new markets. * A considerable investment is also being made in operations in the area of

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