Red Bull Case Analysis
Red Bull Case Analysis

Executive Summary:
The Problem:
I have been asked to evaluate the marketing strategy for Red Bull. More specifically, I have been asked to identify new ways that Red Bull could maintain its leadership position in a maturing category. Although Red Bull did create this market and is a top seller for energy drinks, it is now vulnerable to other competitors who have the resources and brand recognition to aggressively compete, such as Coca-Cola, PepsiCo, and Hansen, to name a few.
The Answer:
Rationale:
Situation Analysis:
Red Bull’s founder, Dietrich Mateschitz, knew from the beginning that there was a need for a unique marketing strategy because it was designed for so many occasions and a wide range of target consumers. He wanted this product to be used by students, clubbers, business people, and athletes. The best way to reach them was to find out where they shop and when do they use Red Bull. Then, use that opportunity to convince them that the product works. Word-of-mouth and “seeding” were the two main strategies used for market entry. Red Bull bought its traditional advertising last, planning only to use media push when the market had matured. So rather than introducing a product with a commercial, it reinforced that product with a commercial. They did not use this method in the UK market, and the marketing strategy failed miserably. Red Bull had a new management team come in an replace the old, and had them use the marketing strategies they had found to be successful in Austria. This immediately turned the product around and made it successful in the UK.
By 2005, the market for energy drinks had dramatically changed. Red Bull’s overall market share had dropped from 75% in 1998 to 47% in 2005. Several competitors had been successful in growing their distribution networks and appealing to customers through innovative communication, like Red Bull had used from the start.
Now competitors like Rockstar, Monster,

Executive Summary:
The Problem:
I have been asked to evaluate the marketing strategy for Red Bull. More specifically, I have been asked to identify new ways that Red Bull could maintain its leadership position in a maturing category. Although Red Bull did create this market and is a top seller for energy drinks, it is now vulnerable to other competitors who have the resources and brand recognition to aggressively compete, such as Coca-Cola, PepsiCo, and Hansen, to name a few.
The Answer:
Rationale:
Situation Analysis:
Red Bull’s founder, Dietrich Mateschitz, knew from the beginning that there was a need for a unique marketing strategy because it was designed for so many occasions and a wide range of target consumers. He wanted this product to be used by students, clubbers, business people, and athletes. The best way to reach them was to find out where they shop and when do they use Red Bull. Then, use that opportunity to convince them that the product works. Word-of-mouth and “seeding” were the two main strategies used for market entry. Red Bull bought its traditional advertising last, planning only to use media push when the market had matured. So rather than introducing a product with a commercial, it reinforced that product with a commercial. They did not use this method in the UK market, and the marketing strategy failed miserably. Red Bull had a new management team come in an replace the old, and had them use the marketing strategies they had found to be successful in Austria. This immediately turned the product around and made it successful in the UK.
By 2005, the market for energy drinks had dramatically changed. Red Bull’s overall market share had dropped from 75% in 1998 to 47% in 2005. Several competitors had been successful in growing their distribution networks and appealing to customers through innovative communication, like Red Bull had used from the start.
Now competitors like Rockstar, Monster,