Red bull Essay

Motivated by mainstream drinks from the Far East, Dietrich Mateschitz created Red Bull in the mid 1980’s. He produced the recipe of Red Bull Energy Drink and established the distinctive marketing idea of Red Bull. Red Bull Energy Drink was sold for the first time on 1st April 1987, in its home market Austria. This was not only the introduction of an entirely fresh and different product, in fact it was the birth of a completely new product type. Today Red Bull exists in more than 166 countries and about 40 billion cans of Red Bull have been consumed so far. By the end of 2013, Red Bull has employed 9,694 people in 166 countries with the company turnover exceeding the five billion euro mark for the first time. SWOT Analysis Strengths †¢Market Leadership – within the energy drinks market Red Bull is the energy drink pioneer all over the world. †¢Marketing Efforts – Well designed promotions, targeted campaigns and sponsorships for example: Formula 1, Red Bull revolution of sound and Red Bull music academy. Weakness †¢High prices. †¢No new innovation in all these years to compete with new comers. Opportunities †¢Extension of product line to help retain market share. †¢Consumer recognition through more sporting events. †¢New ventures like main stream sports sponsorships to target all demographics and partnership with social media sites. Threats †¢Competition from other health focused organic drinks which boost energy. †¢Change of rules from government health departments (especially first world countries) on high caffeine products. †¢Low acceptance in the market due to cheaper options available. †¢Health and fitness awareness in customers. †¢Another big threat to energy drink industry in general including Red Bull is the growing industry of specialty coffee in Australia. Competitor Analysis  In many surveys it is said that people use energy drinks for various reasons, but main reason being energized instantly. In Australia the main competitive threat to Red Bull is from energy drink brands such as Monster, Mother, Rockstar and v. Other market competition includes sports drinks and soft drinks. Coca-Cola’s sales in energy and sports drinks led in Australia in 2012. The company runs two products, Mother and Powerade. Powerade was the top brand in sports drinks in 2012, accounting for 50% of off-trade volume, while Mother was the third leading competitor in energy drinks, accounting for 22% of off-trade volume. Target Market †¢Core target market segments for Red Bull consists of the core age group of 15 – 40. †¢Young people feel more need of energy drinks due to work pressure, extended energy levels, multiple jobs and work and personal life balance. †¢Consumers are inclined towards Red Bull because the shear name and position of the brand, and the brands association with some well-known athletes, extreme sports such as motorsports, bike, surfing, skateboarding and more. Red Bull’s association with exclusive music scene all over the globe provides young people with another reason to be a part of the brand. References Armstrong, G. Adam, S. Denize, S. and Kotler, P. Principles of Marketing, 5th edition., Pearson, Australia Red Bull. Company and Product Overview. 2014 Available: http://energydrink.redbull.com (accessed 25 March 2014).