Swot Red Bull
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
- 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