Swot Red Bull

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  • Published : November 25, 2012
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STRENGTH 

- Leadership position
The company "Red Bull" is considered like the "leader" of the energy drinks market in the world with 70% of market share in 2012.

- Marketing strategy
* A lot of sports events, promotions and campaigns (like street marketing) * Sponsorship (F1 Red Bull Team, Felix Baumgartner, Shaun White…) * Original communication strategy and efficient
(http://www.redbull.fr/cs/Satellite/fr_FR/Video/Le-nouveau-clip-du-Monde-de-Red-Bull-au-cinema-021243076490242)

-Innovation
* Innovating recipe of energy drink containing “Taurine”

- Loyal customers
* The creation of an universe encouraged customer loyalty

- Strong Brand identity and trendy brand

- Strong financial position
* Turnover of 3,27 Billion of Euros.

- Single product

Weaknesses 

- Average price

- Lack of product innovation
Nowadays, there are a lot of competitors in the market owned by famous brands like Coca-Cola (Burn) or Pepsi (Dark Dog)

- Lack of patent on Red Bull’s recipe means anyone can copy it

- High logistics costs

- Profits linked to exchange rates

- High sunk cost (marketing, Advertising)

Opportunities 

- Red bull has opportunities to expanding the target markets as well as product lines extension * Extension of product line can help to retain market share
* Increase market share with increased opportunities in emerging markets through being trendy * Sunk cost can provide future growth in emerging markets due to a trendy image

- Consumer recognition through sponsorship of sports events so can expand product with a loyal customer base * Overcome higher prices than competitors with product expansion and diversification

- New ventures like partnership with Facebook

- Product and services expansion

- International manufacturing opportunities
* Manufacturing Internationally can decrease exchange rate risks

- Keep substantial market share with international operations * High logistics costs can be...
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