Red Bull’s path to a better Blue (ocean)
Austria vs. Netherlands
Assignment: Strategic Analysis Red Bull
Date: 22.10.2008
Class: L2BV - M-Strategy & Marketing 2/02
Lecturer: Gerbrand Rustenburg
Ruud Kuijpers 1539334
Mark Mungroop 1540960
Stefan Andreas 1531650
Jason Lucas Luijckx 1538688
Executive summary
A thorough analysis of energy drink producer Red Bull concludes that the company was set up to market just one product, Red Bull. Eventually it started marketing a variety of slightly modified energy drinks. Now Red Bull is energizing people around the globe, touching down in over a hundred countries worldwide.
The Red Bull consumers can be divided into
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Red Bull strongly relates its brand to extreme sporting events, popular and high profile clubs and bars but also to a kind a necessary daily energizer. They initiate their energy drink into more than 100 markets around the world with the same effective vision as their initial product launch in Austria.
Mission statement: “Red Bull is dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. Red Bull creates a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice.”
Although the Red Bull mission statement is not very specific it is applicable to their company. It clearly shows that Red Bull wants to lead the market through values and efficiency and recognizes the importance of employee satisfaction.
The company was set up to market just one product, Red Bull Energy Drink. However, since 2003 the company also introduced a low sugar version of the drink. Although not well known yet in Europe or America, Red Bull is marketing Red Bull coffee and Red Bull cola in Asia. Anno 2008 Red Bull is marketed in over 100 countries worldwide, serving almost every continent.
The Red Bull customers are can be divided into
• The Red Bull energy drink is a functional product developed especially for periods of increased mental and physical exertion.
In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is
Red Bull targets only a particular segment of market and therefore makes its product only available at those places where the target can be reached. The energy drink can be bought at colleges, supermarkets and is mainly associated to extreme sports. In particular, the energy drink has also known a tremendous success in India, where the segment is the fastest growing in the category, due to India’s youth centric population and fast urbanization. Red Bull was actually the brand that created energy drink category in India (Docstoc, April 2012).
The current objectives of the Red Bull are to stay in the same position as the leader, to be the brand icon of the extreme sports and to expand the existing markets. Red Bull has used some strategies to reach these goals, such as extending the product line and being the extreme activities sponsorship.
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.
"We are dedicated to uphold Red bull standards, while maintaining the leadership position I the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice"
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.")
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.
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
There are few brands that can offer more lessons in how to approach the next generation of marketing than Red Bull. Focusing their strategy on earned media, cultural integration and value creation, Red Bull’s approach is pioneering, and a template that many brands would love to follow.
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.
Our purpose shapes how we invest in our brands around the world to inspire passion and loyalty.
We can affirm that Red Bull has strong, favorable and unique brand associations, such as the dynamic and fun association, the typical taste and energy provision feature, and the competence perception due to its market leader position.
Red Bull’s marketing strategy is one of the key factors in their success, they created Mobile Energy Team
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