Red Bull Case Study
Red Bull Case Study
Briley Cienkosz
Keiser University
Dr. Ralf Wilhelms
MKTG 531
October 12, 2014
“With as much caffeine as a cup of coffee, a can of Red Bull is all about energy. The brand’s promise is that it will increase performance, concentration, reaction speed, vigilance, and even well-being. How to tell that story? It is not easy in a cluttered confusing world of canned drinks with energy connotations like Monster, Gatorade, Coca-Cola and many more. The answer is not taste or flavor claims but a host of sponsorships of people, teams, and events that involve people excelling at or appreciating extreme physical activities” (Aaker, 2012). And that is what Red Bull can hang its success on which could also be its demise. Red Bull has market its self od the following key benefits, “increased physical endurance, improved reaction speed and concentration, increased mental alertness (to stay awake), improved overall feeling of well-being, and stimulated metabolism and increased stamina. The company captured these attributes in the phrase “Red Bull stimulates body and mind” (Peter, 2013). Red Bull has carefully and strategically carved its space out in the energy drink industry.
In reviewing Red Bull identifying the organizations strengths, weaknesses, opportunities, and threats will provide a starting basis of the analysis. Strengths that Red Bull have to offer include, “Nature of market, diverse market in health, energy, and concentrated drinks, low ingredient and manufacturing costs, high profit margins, and economies of scale” (Wensley, 2011). This allows the organization to launch in new markets with ease due to the low overhead. Weaknesses that Red Bull face include, “health concerns, brand loyalties, and retailer generic brands” (Wensley, 2011). The threats that Red Bull faces revolve around not only health trends and discoveries but also competition. Opportunities that Red Bull have include, “space for innovative products,
Briley Cienkosz
Keiser University
Dr. Ralf Wilhelms
MKTG 531
October 12, 2014
“With as much caffeine as a cup of coffee, a can of Red Bull is all about energy. The brand’s promise is that it will increase performance, concentration, reaction speed, vigilance, and even well-being. How to tell that story? It is not easy in a cluttered confusing world of canned drinks with energy connotations like Monster, Gatorade, Coca-Cola and many more. The answer is not taste or flavor claims but a host of sponsorships of people, teams, and events that involve people excelling at or appreciating extreme physical activities” (Aaker, 2012). And that is what Red Bull can hang its success on which could also be its demise. Red Bull has market its self od the following key benefits, “increased physical endurance, improved reaction speed and concentration, increased mental alertness (to stay awake), improved overall feeling of well-being, and stimulated metabolism and increased stamina. The company captured these attributes in the phrase “Red Bull stimulates body and mind” (Peter, 2013). Red Bull has carefully and strategically carved its space out in the energy drink industry.
In reviewing Red Bull identifying the organizations strengths, weaknesses, opportunities, and threats will provide a starting basis of the analysis. Strengths that Red Bull have to offer include, “Nature of market, diverse market in health, energy, and concentrated drinks, low ingredient and manufacturing costs, high profit margins, and economies of scale” (Wensley, 2011). This allows the organization to launch in new markets with ease due to the low overhead. Weaknesses that Red Bull face include, “health concerns, brand loyalties, and retailer generic brands” (Wensley, 2011). The threats that Red Bull faces revolve around not only health trends and discoveries but also competition. Opportunities that Red Bull have include, “space for innovative products,