Red Bull has turned itself into a multinational company that offers a product that enhances the mind and the body. Their method of managing their internal and external situation and circumstances has become an interesting topic. Thus I conducted some analysis to look at Red Bull’s strategies, and especially the international strategies. The external analysis was a mix of positive and negative observations, for example, they have the advantage of the customer loyalty and the production cost; however, they are in the territory of major players in the beverage industry which put them at risk. To understand the big picture forces of change, I employed PEST Analysis to analyze the Political, Economic, Socio-Cultural, and Technological changes in Red Bull’s macro business environment. The tool can help to reveal the direction of change within the macro business environment that they are exposed to, and, from this, take advantage of the opportunities that they present. Through the internal analysis, we observed that Red Bull leads a proactive approach towards their business by adopting conventional and unconventional methods to expand their horizons. By the value chain model, we observed that Red Bull’s internal marketing and sales strategies have shown ground breaking success on international scale. Moreover, the HR has accomplished to attract the right candidates to achieve the required goals, because they are young and know the young target market exactly. The norm is that any kind of differentiated products target few selected customers; however, Red Bull did become selective but became massively popular among the youth; as a result of this, they produce over 5 billion cans each year. In order to clarify the elements of marketing (Product, Price, Place and Promotion) set for those target groups, Marketing Mix was optimized and expressed what roles each element plays in promoting Red Bull’s products and services and delivering those products and services to customers. At the end, the combination between internal and external analysis, SWOT analysis, was conducted to illustrate the crystallization of some Weaknesses and Threats. However, the Strengths and Opportunities outweigh those downsides; moreover, the Weaknesses and Threats that Red Bull faces can easily be managed and fixed by the strong company, Red Bull.
History & Background
A red cape is not always necessary to attract a bull towards you; nowadays it has become available in a can in the hypermarket, supermarket, grocery and the club near you. This all has become possible thanks to a visionary man called Dietrich Mateschitz, who is the discoverer, modifier, and introducer of the internationally famous drink, Red Bull. It all started in Hong Kong, in 1982, when Mateschitz was at the hotel bar sipping a famous local health tonic. While he was drinking he had a vision of marketing an Asian drink in the western countries. About two years from the vision, the Austrian Mateschitz teamed up with a Thai business man called Chaleo Yoovidhya to produce this product. Together they fiddled with the product, to take out the syrup nature of the product and make it fizzy. Canned in a silver and blue container, with a brand the shows two red bulls going head-to-head against each other, hence the brand was named Red Bull.
Dietrich Mateschitz Red Bull Founder
Chaleo Yoovidhya Red Bull Co-founder
In 1987, the product was then taken to Austria where it had its first groundbreaking success in no time. In started going international in 1992, when they entered Hungary. Red Bull is currently active in over 100 countries, energizing the population and creating competition as they go along. One source mentioned that there are over 150 “energy drink” brands, however, all inferior to the mighty Red Bull. With over 1 billion cans sold each year, Red Bull controls 70% of the world’s market share of energy drinks.
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