Red bull - 3106 Words

Marketing Case Study Assignment 1 2012 Contents 1.0 Introduction 2 2.0 SWOT Analysis of Red Bull 2 3.0 Analysis of Red Bull’s Market Structure and Control Systems 3 3.1 Market Structure 3 3.1.1 The number of players in the Energy Drink Market 3 3.1.2 The Degree of Product Differentiation in the Market 3 3.1.3 The Ease of Entry and Exit Into And Out Of the Energy Drink Market 3 3.2 Marketing Control System 4 3.2.1 Intensive Research Work 4 3.2.2 Internal Statistics 4 3.2.3 Marketing and Pricing Strategies 4 4.0 Solutions and Recommendations 4 1.0 Introduction Red Bull is a functional beverage founded by Austrian entrepreneur, Dietrich Mateschitz, in 1984. Containing ingredients such as taurine and caffeine, Red Bull†¦show more content†¦3.0 Analysis of Red Bull’s Market Structure and Control Systems 3.1 Market Structure 3.1.1 The number of players in the Energy Drink Market Red Bull belongs to an oligopoly market structure where the market is dominated by a few large players. The degree of market concentration is relatively high with a large % of it taken up by Red Bull. There are currently more than 30 types of energy-drink products in the market, with Red Bull occupying the largest market share of approximately 65%. With the number of players in the market, there is therefore certain degree of interdependence between firms and it is necessary for Red Bull to take into account the likely reactions of other firms during strategy planning. 3.1.2 The Degree of Product Differentiation in the Market Being in an oligopoly market structure, Red Bull produces branded products where advertising and marketing is an important feature of competition. The different types of energy drinks in the market serve as close substitutes to Red Bull. Hence, Red Bull presents itself as a premium product, having â€Å"a unique combination of high quality ingredients† (Red Bull, n.d.) which â€Å"vitalizes body and mind† (Red Bull, n.d.). It segments its market differently from its competitors, focusing on performance-oriented individuals who want to have a clear, focused mind and a fun and active lifestyle. This has resulted in Red BullShow MoreRelatedRed Bull13142 Words   |  53 PagesCULTURE 44 RESOURCES 44 STRATEGY # 1: TAURINE FREE RED BULL 44 STRATEGY # 2: DIVERSIFYING INTO SPORTS DRINKS MARKET 45 SYNERGIES IN VALUE CHAIN 46 PITFALLS IN STRATEGIC IMPLEMENTATION 46 SCORE CARD 48 DIAGNOSTIC SURVEY OF PRIMARY AND SECONDARY MANAGEMENT PRACTICES: 49 BIBLIOGRAPHY: 55 â€Å"MISSION AND VISION EVALUATION† RED BULLL GIVES YOU WIIINGS...   MISSION STATEMENT EVALUATION We are dedicated to upholding Red Bull standards, while maintaining the leadership position inRead MoreRed Bull1107 Words   |  5 Pagesyou characterize Red Bull’s overall global marketing strategy (global, glocal or local)? Ans 1 – It is my opinion that Red Bull has a global marketing strategy which it implements in all the markets in enters into. Red Bull has built its name as a trendy energy drink, catering to young adults (aged 16-29), young urban professionals and post secondary school students. Also it targets young club-goers and private parties to spread its name as an active and stylish drink. Red Bull believes that itRead MoreRed Bull735 Words   |  3 PagesCase: Red Bull Red Bull’s success is a result of a great marketing strategy including product placement and creating brand loyalty. Success is also a result of avoiding marketing myopia. Red Bull accomplished this by claiming to satisfy more than just your thirst. Dietrich Mateschitz took the energy drink concept of Krating Daeng in Thailand and broadened it usage by also marketing Red Bull as a sports drink, functional drink, and nutritious drink. Their success was also stemmed fromRead MoreRed Bull993 Words   |  4 PagesRed bull is the worlds oldest and most successful energy drink brands. In 1966, Red Bull was born in Thailand as a kind of vitamin energy drink, and then Austrian entrepreneur  Dietrich Mateschitz  was inspired by this pre-existing energy drink and took this idea, modified the ingredients to suit the tastes of westerners. Now it has more than 40 years of history so far with excellent quality and good reputation, Red Bull drinks are sold in more than 140 coun tries and regions around the world, rankRead MoreRed Bull1644 Words   |  7 PagesWhat is their field of operation? Red Bull operate within the energy drinks sector of the soft drinks market. The product is an example of a functional drink. Functional foods respond to consumer interest in well-being and performance. The major multinational soft drinks companies are investing in the area of functional drinks, developing their own brands and buying up existing ones. This is seen as being important, given that their traditional soft drinks markets are at the maturity stage inRead MoreRed Bull4552 Words   |  19 Pagescommercialize them in Europe, and created the Red Bull brand in 1984. He launched the first beverage on the Austrian market in 1987. The drink was a major success, and is now available in over 160 countries. By 2009, four billion Red Bull cans have been drank and the company has become the leader of the energy drink industry. The firm launched other products, such as Red Bull Sugarfree in 2003 – a reduced-sugar version – Red Bull Cola in 2008 and Red Bull Energy Shot in 2010 – smaller, more concentratedRead MoreRed Bull4895 Words   |  20 PagesPage 20-22 – The impact on value chain activities 1 Name of Company Red Bull Name/ description of Product Red Bull Energy Drink The Red Bull Energy Drink is a stimulating, non-alcoholic beverage, designed to increase the consumer’s mental and physical condition, to ‘vitalize body and mind’: - improves performance - increases concentration and reaction speed 2 - improves vigilance - stimulates metabolism (Red Bull ® Energy Drink (2009) Benefits. Available at: http://www.redbull.co.uk/#page=ProductPageRead MoreRed Bull3982 Words   |  16 Pagesexpanding the sales of Red Bull? Criteria: Market Penetration , Market Development, Product Development, Diversification. (10) Market Penetration: An increase in sales can be made through new promotions or a wider range of adverts and advertising platforms, that will increase the consumption of Red Bull. With minor changes to their product, for example the taste, different flavours, Red bull will also meeting their consumers need for variety. Although I believe that Red Bull already has a very firmRead MoreRed Bull2368 Words   |  10 PagesRed Bull is the most popular energy drink in the world, selling over three billion cans annually. Started in 1987 by Austrian entrepreneur Dietrich Mateschitz, Red Bull pursued an aggressive yet different marketing strategy to grow their brand globally. Red Bull met an untapped need within the beverage consumer market and the strength of their carefully cultivated brand provided them leverage to market themselves in a non-traditional manner. What were the key Brand elements for Red Bull? A brandRead MoreRed Bull1907 Words   |  8 PagesRed Bull s marketing strategy: From the localization and then to an international Posted:2007-3-23   Ã‚  Browse:108 chinese Version   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  11 years ago, the popular Red Bull drink around the world come to China CCTV Spring Festival Gala debut, a Red Bull came to China advertising language, from the Chinese beverage market, more than a category called energy drinks , Golden Red Bull rapidly in China s best-selling blowing whirlwind.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  After 11 years, the Chinese beverage market,