Throughout the world, Red bull is the leader in the energy drinks market with annual sales of billion dollars. According to the statistics, in year 2003 red bull achieved 80% brand share of the energy drinks in market. Since year 2000 (compare to 1990s), it has been a clear shakeout, and fewer new brands are launching new products to the market. Furthermore many products offered by leading drink manufacturers could not compete with Red bull in the market, such as Coca-Cola’s Burn. (“Red Bull SWOT Analysis”) Marketing capabilities
The successful marketing strategies and consumer awareness of Red bull introduced stimulation drinks to the western market. Red bull is increasing its consumer brand awareness by employing targeted marketing campaigns that focuses on 18-25 age groups. Also the company has been differentiating its product by sponsoring dangerous sports such as Formula 1 driving; free skiing; BMX biking etc. Furthermore, Red bull strongly promotes itself by using its slogan: “Red bull gives you wings”. (“Red Bull SWOT Analysis”) Weaknesses
Lack of innovation
In year 2004 some new energy drinks have been entered into the market. One of them is called Raw Energy Fuel Cell, which is Canadian vitamin and glucose drink and is certified by World Wrestling Entertainment. This product has the same effects that Red bull has except that it does not contain Taurine and has less caffeine compared to other energy drinks. However Red bull only made little changes to its product format and is being left behind compared to other competitors. (“Red Bull SWOT Analysis”) Reliant on small product base
Red Bull Company only offers energy drinks along with a sugar free variety, which is quiet at risk due to the market fluctuations. What makes it riskier is that energy and sports drink is the smallest sector of the overall soft drinks market. These days, consumers’ interests are changing toward healthier alternatives such as no...