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Executive summery
1. Coverage of summery of issues

Competition is very high from big beverages industry like Cocacola, Pepsi and
also walmart from retailers.
limited production development of sugar free
Bad reputation about healthy
Concerns a strategy for increasing the consumption of Red Bull
.

Coverage of analysis

PEST analysis
Political
Start of the increasing health concerns among the populace, governments globally have begun to
inspect the energy drinks industry. At the local level in the USA education administrators
have started to sale of Red Bull and other similar products from sale within schools. As a
response to increasing incidences of diabetes Type II among school-aged children.
Increased public concern for the environment has also been codified in regulatory
arrangements in many economies. As a direct response to this development, Red Bull in
2003 . In terms of future development, the company might need to adopt a more diverse
pricing strategy that takes account of rising demand for the product among individuals
with lower income levels.
Economic
Technological developments, and increased efficiency and productivity in emerging markets in
Asia and Latin America are likely to force important increases in global output over the
coming year. This is good for Red Bull because since rising incomes generally translate
into rising demand. However, as the company expands into the Asian Pacific market. It
will need to take adequate account of the fact that income disparities remain between
households in the Low Income Countries , Middle Income Countries , and High Income
Countries . In terms of future development, the company might need to adopt a more
diverse pricing strategy so as to takes explanation of rising demand for the product
among individuals with lower income levels.
Social

The attitude of the public towards Red Bull energy drinks is accepting. However, there is
a growing campaign among educators and health groups against the possible toxic effects
on youth and adult health. Also negative impact on behaviors. A lot of the criticism

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concerns the target market of the company and its efforts to court them. In Europe and the
United States, Red Bull energy is mostly popular among young athletes and bar and club.
It is argued that this group has been courted through Red Bulls marketing efforts which
are sports and culturally tending .RBull sponsors junior basketball teams, and runs a
music academy for aspiring musicians.
Technological

II

A key confront they are facing the company is not only how to deliver products that meet
the changing demands of consumers. But also how it can itself stimulate demand through
the development and offering of innovative products. Product innovation is a key strategy
for business development for Red Bull, because its main product line. Red Bull Energy
Drinks, has no variants to the side from its sugar free alternative. Regular innovation in
product formulation and packaging is a key characteristic of the beverage industry.
Accordingly, Red Bull could equalize its lack of product diversification by adopting an
innovation strategy.
Coverage of Recommendation

Red Bull needs to enlarge its scope of product moreover.


Red Bull must continue its process of opening to new profiles of different
customers
Red Bull has to pursue its amazing media strategy:
Red Bull should change bad reputation about healthy of drink.

2 Introduction
I

Coverage of background of case

From this essay will be discussed the Redbull which highest selling energy drink in the wold.
Especially this essay will be explained what are the issues going on, recommendations for that
issues plus What are Red Bulls greatest strengths and risks as more companies (like Coca-Cola,
Pepsi, and Monster) enter the energy drink category and gain market share?. And also it will
converse Should Red Bull do more traditional advertising? Why or why not? . In addition
the effectiveness of Red Bulls sponsorships, for example, Bull Stratos. Is this a good use of Red
Bulls marketing budget? Where should the company draw the line?
II
Brief summary of the case
In brief this essay will be discussing
1. What are Red Bulls greatest strengths and risks as more companies (like Coca-Cola,
Pepsi, and Monster) enter the energy drink category and gain market share?
2. Should Red Bull do more traditional advertising? Why or why not?
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3. Discuss the effectiveness of Red Bulls sponsorships, for example, Bull Stratos. Is this a
good use of Red Bulls marketing budget? Where should the company draw the line?
Company overview
Red Bull is an energy drink which is produced by Austrian company. Red Bull Gmb was created
in 1987. In terms of market share, Red Bull is the highest-selling energy drink in the world.
4.5bn cans of the drink were sold in over 130 counties around the world. 3,903 employees
working under the company. Its dominant position in the fastest-growing segment of the soft
drink market is mainly attributed to the company's unconventional and innovative marketing
strategies as well as its revolutionary operational and management approach.

3 Issues Identification
I.

II.

Short term issues of Redbul


Competition is very high from big beverages industry like Cocacola, Pepsi and also
walmart from retailers`
Bad Reputation about the healthy
Red Bull Sugar Free is a new product of Red Bull that contains all the ingredients of the
original Red Bull except sugar, which is replaced by aspartame and sucralose
sweeteners.Despite the reported benefits and popularity, Red Bull energy drinks have
come under inspection. Two of the primary ingredients in Red Bull Sugar Free, taurine
and caffeine, can have significant side effects.
This broken and spread trust about the product can be a short time issue to decrease the
market share.
Medium term issues
Competition is very high from big beverages industry like Cocacola, Pepsi and also
walmart from retailers.
I.

III.

The Red Bull brand faces significant competition from large industry companies
including Pepsi and Coca-Cola, in addition to retailer brands such as Blue Charge
by Wal-Mart. Secondly, Red Bull has been criticized for its limited product
development, as there is (2005) only one other version of Red Bull, which is
sugar-free.

Long term issues


limited production development of sugar free
Slow or very limited product development in the case of Red Bull can be criticized as one
way of expanding sales in order to produce a new product. On the other hand, it can be
that Red Bull as a brand is known for being energy drink focused; hence, expanding into
the soft-drink sector, for instance, could have a negative effect on the brand's image.
Moreover, taking in account the development of different flavors, it must be highlighted
that consumers tend to stick to original products rather than alternatives Therefore,
product development is an option for Red Bull; however, it is not the most important
issue to be addressed for increasing sales.

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Concerns a strategy for increasing the consumption of Red Bull.


The brand's marketing strategy is highly dependent on its target consumers; hence, the
final and most important marketing issue concerns a strategy for increasing the
consumption of Red Bull. perfectly, this could be done by keeping existing but ageing
customers who stop or lower their consumption of energy drinks due to their symbolic
meaning bound with youngster culture, craziness and fanaticism, by alternating Red
Bulls current image .
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Recommendation
Coverage of Short term solutions
1. It is first the opportunity for the brand to personalize its relationship with its target. If it is
envoy their consumers profile and personality for the biggest sales.
2. Red Bull should now adopt a clear speech about the bad uses of its
drink.
3. If the brand has always played on this bad buzz to make its business and then transform
it into cheap advertising, Red Bull has now to be honest and to guide its consumers into
their consumption of Red Bull to keep its youth and free image, and to be assimilated
with danger and insecurity.
II.
Coverage of medium term solutions
I.

Red Bull needs to enlarge its range of product.


1. It is first the opportunity for the brand to personalize its relationship with its target: the
more representative of consumer profile and personality, the bigger your sales. It is the
case, for example, of Coca-Cola which has succeed in offering a large range of product
and that is now one of the biggest company, considering sales, in the world. Moreover,
enlarging its range of product is also a way to remain competitive towards its
competitors.
2. Red Bull has understood that only focusing on the young public can be sometimes risky,
moreover with a product that has a premium pricing policy. This young target evolves
and to remain competitive, a brand has to conquer new targets but also to evolve with its
current one.
III.

Coverage of long term solutions


Red Bull must continue its process of opening to new profiles,

1. This point goes hand in hand with the previous: to catch new market, Red Bull will have to
adapt itself!
2. Red Bull has to pursue its amazing media strategy:
3. It is clear that if Red Bull is so appreciated by its consumers, it is not only because of its
drink, but more for the World of Red Bull that goes hand in hand with it. Many people
like Red Bull without ever having tasted its drink: this brand is a love brand. Red Bull has
then to manage and encourage its community to carry on their projects together and has to
pursue this so-loved craziness.
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4.

What are Red Bulls greatest strengths and risks as more companies (like Coca Cola,
Pepsi, and Monster) enter the energy drink category and gain market share?
Redbulls greatest strengths as more companies ( like Cocacola , Pepsi, Monster) energy
drink category and great market share are its main product that is Red Bull which is a
combination of highly formulated energy enhancement ingredients to energize an individual.
And also is varieties that it offers when it comes to different flavors it offers Red Bull Energy
drink, Red Bull total zip , red bull sugar free and special editions infused with berry, lime and
cranberry flavors. Moreover another one of important strength of Red Bull is its wide
distribution network that gives it an added advantage over its rivals, which could not be
matched by other competitors of Red bul..
when consider about the risks that are associated competing against such powerhouse are
there is always chance of getting less number of sales figure at the end of the year. These
powerhouse like Coca Cola, Pepsi etc. anytime come and introduce their new products in the
market and this could pose a great risk for Red Bull. Because today only Red Bull energy
drinks is the sole product of this company that provides maximum sales to the company. And
if this product too gets competitor then the company is likely to get absolute its customer
base.
Should Red Bull do more traditional advertising? Why or why not?

Building a brand is a tough job. It requires hours of careful thought in order to consistently
execute products, services, advertisements, etc that are on brand. Some companies go their
whole lives without getting it right, others are one hit wonders, and a select few make it look
easy. Red Bull is one of the select companies to consistently make branding look easy. During
the past few years, they have had campaigns featuring wingsuits, Rube Goldberg machines,
and space jumps. In addition, the company sponsors many athletes and teams participating in
both traditional and extreme sports (full list of sponsorships) as well as events such as the Red
Bull Air Race and the Red Bull Flugtag. They even have their own record label. So far it has
paid offbig time! In 2012, Red Bulls sales exceeded $2.95 billion and controlled 42% of the
energy drink market.
Red Bull does traditional advertising (TV, magazine, etc), but thats not what has made their
brand what it is today. What has made Red Bull an exemplary case study is their willingness to
push the boundaries of what marketing is. I mean they sent a guy to the edge of space and told
him to jump for crying out loud! Its guerrilla marketing at its best .While your company may not
be selling energy drinks with extreme sports, you can still find ways to mix things up in your
market segment. Find out what gets your audience excited and then become a part of that. Stand
out from your competitors by utilizing creative and non-traditional marketing channels to
connect with your consumers. Once they feel like you are a part of their life instead of trying to
sell them products, they are more willing to share your story, products, and content with others.

HavefunOne of the distinctive of Red Bulls brand is the enjoyment they take in sharing their message.
Would they still sell a lot of product if they didnt spend all the money on their marketing?
Probably, but wheres the fun in hoarding money when they can use it to build awareness,
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make people happy, and invest in the long-term health of the Red Bull brand? If you arent
excited about what your company is doing, you probably should find. something new to do.
Why should consumers be passionate about your brand if you arent? Dont be a one-hit
wonder brand. Take the time to do your research, try different things out, and build a brand
that people rave about. Its not easy, but its worth it.
4 Discuss the effectiveness of Red Bulls sponsorships, for example, Bull Stratos. Is
this a good use of Red Bulls marketing budget? Where should the company draw
the line?
Red Bull has taken sponsorship to new heights with the Red Bull Stratos event. Its being
heralded as the companys greatest marketing stunt and perhaps one of the greatest marketing
stunts of all time. The company could be perceived as reckless and insensitive. Red Bull is a
major sponsor of X-treme sports. These sponsorships have provided hours of exposure and
product placement, in addition to being associated with recognizable athletes Red Bull
sponsorships are a good use of Red Bulls marketing budget, but a line should be drawn on in
herently dangerous sports or events. While stunts such as Bull Stratos could produce huge
publicity for the brand if the stunt goes well, but if something goes wrong Red Bulls name is
forever attached to the tragedy .These sponsorships have provided hours of exposure and
product placement, in addition to being associated with recognizable athletes. Well targeted
campaigns and sponsorships help to expand the Red Bull brand and increase consumer brand
awareness. Red Bull should continue such sponsor ships,but should be more selective with sole
sponsorships of certain sports or events where the potential for casualty is high. New heights
with the Red Bull Stratos event.
Its being heralded as the companys greatest marketing stunt and perhaps one of the greatest
marketing stunts of all time.
Implications
It reaffirms that Red Bull doesnt just sponsor events, it creates them.
Brand placement was ubiquitous. "You can't get a photo of Felix without the Red Bull logo and
you can't talk about him without talking about Red Bull Stratos," said Ben Sturner, Red Bulls
CEO. By streaming it live on its YouTube channel Red Bull retained full control over
broadcasting rights for the event. As well as the massive exposure for Red Bulls energy drink,
YouTube viewers were also shown a pre-roll advertisement for Chrysler.
Red Bull went further than simply integrating social buttons into its site; the company provided
great content which could be shared and used, both through social media and in the press. Red
Bulls social pages also cross-promote many other high-quality images and video clips of
adrenaline sports to engage its target audience and affirm its brand essence of transcending
human.
Summary
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The estimated value generated for Red Bull is in the tens of millions of $ and Red Bull Stratos
will continue to be talked about and distributed socially for a very long time. With a full length
documentary coming out later this year and its YouTube channel now topping 400million views
and 800,000 subscribers, Red Bull really is on top of the world when it comes to corporate
sponsorship.
4 Conclusion
In conclusion, Red Bull has been facing some challenges regarding stagnation in consumption of its
products and insignificant pressure from its competitors. Furthermore, the possible environmental
consciousness change in consumer perspectives may increase the need for health and dietary
products to be addressed. Marketing strategy was introduced, taking into account the first issue of
extending Red Bulls targeted consumer groups and further improving product consumption by
developing new products targeting various age and gender groups.

Harvard References
Gronroos, C. (2007). Marketing: Customer management in serService management and mavice
competition. Chichester, West Sussex, England: Wiley, John & Sons.
Hartline, M. D. (2010). Marketing management strategies. United States: South-Western,
Cengage Learning.
otler, P. K. ( (2006)). arketing management . United States: : Prentice Hall, 2005-2006.

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