Energy Drink and Red Bull

Topics: Red Bull, Energy drink, Marketing Pages: 11 (3193 words) Published: February 18, 2013
Fda Business Year 1
MK186 – Marketing

22nd August 2011

Table of Contents

Introduction Pg 3

The Reason for Choosing Red Bull Pg 3

Marketing Audit Pg 4
* Product portfolio Pg 4 * Sales Forecasting Pg 4 * The Macro environment Pg 5-6 * Competitors Pg 6-8 * Swot Analysis Pg 8

Segmentation Pg 9-10

Viral Marketing Pg 10-11

Marketing Mix Pg 11-12

Conclusion Pg 12-13

Red Bull is the leader of the energy drink market. Red Bull is an Austrian produced energy drink. It competes in a very narrow niche of the carbonated soft drink market. The discovery of Red Bull was made during a business trip to Hong Kong in the 1980’s by an Austrian entrepreneur, Dietrich Mateschitz. Its main focus was Europe, as this part of the world was yet to be established within the energy drinks market. Though, the unusual high quantities of caffeine in the ingredients, was going to prove a difficult task to do. Red Bull is a non – alcoholic energy drink. This product falls under the category of soft drinks which can be divided into sub-segments of which one of these is energy and sports drinks. Since 1996 the market of soft drinks has grown by 5% and by 1997 it reached it a total amount of £6.89bn, which is an equivalent of 10bn litres.

Red Bull is the leader of the energy drink market. This company performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world. The reason for choosing Red Bull?

Most of the people have one day see or heard about the brand Red Bull. Red Bull is an energy drink that comes from the adaptation of the Thai energy drink “Krating Daeng”, which means "Red Bull".

The reason of choice results in a cultural factor. In fact Red Bull is a product that is targeting young customers. It means that, students are the most concerned by Red Bull so this is a product that can affect any of us. Besides it is a “trendy product” in others words a fashionable product: nowadays everyone has already tasted a Red Bull. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position.

Marketing Audit
Product portfolio
Red bull has within its portfolio, 4 successful products; red bull energy drink, red bull sugar free, red bull cola and red bull shots. To see how each product lies within its market share, the BCG matrix model can be used. This type of analysis provides a useful insight into likely opportunities and problems associated with a particular product. (Brassington & Pettitt, 2005, pg 400) HIGH MEDIUM Question Mark

Red bull Cola
Red bull energy drink
Red bull sugar free

Cash Cow
Red bull shots

The BCG matrix suggests following strategies:
* Promotion of Red Bull cola should be carried out globally to spread awareness * Product Development by introducing taurine free red bull and other flavours

Sales forecasting

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