...STRATEGY OF RED BULL AND HOW THE COMPANY MAINTAIN ITS LEADING POSITION IN ENERGY DRINK INDUSTRY TABLE OF CONTENTS I. ABSTRACT 4 II. INTRODUCTION 4 III. BACKGROUND OF RED BULL 5 IV. LITERATURE REVIEW……………………………………..….6-7 V. RESEARCH OBJECTIVES…………………………………………8 VI. RESEARCH QUESTIONS……………………………………………………………8 VII. RESEARCH METHODOLOGY…………………………………………………9-12 VIII. ETHICAL CONSIDERATION………………………………...…13 IX. LIMITATIONS……………………………………………………….13 X. CONCLUSION 13 XI. REFERENCE 14-15 I. ABSTRACT The marketing and advertising techniques revolution in the late of 1980s enabled Red Bull to create successfully an “energy drink” market. Today, when the market becomes more and more diverse as well as expanding with over 220 competitors, Red Bull may face to loss in overall global market share. However, Red Bull has reasons to feel optimistic with its strategic business and marketing plans. II. INTRODUCTION The global Functional Drinks market was reported to be worth $26.9 billion in the year of 2008. It is fairly new and continues developing; the market is forecasted to increase by over 64% to reach the value of $44.3 billion, said Datamonitor PLC (2008), cover different categories such as Energy, Nutrition etc. Being regarded as the largest brand in energy drink sector, Red Bull® was holding 29% global market share in 2008 (Datamonitor PLC, 2008) and has been successful in creating energy drink and established the brand as the market...
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...Kline Beecham. However, Red Bull included other ingredients to achieve a different flavor. (Figure 1: Red Bull Founder- Dietrich Mateschitz) So it was that in 1984, Mateschitz founded the Red Bull GmbH company. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. Red Bull rapidly gained in popularity, giving people wings right from the start. In 1992, Red Bull touched down in its first foreign market, in Hungary. Today, Red Bull is energizing over 100 countries around the globe, such that many superstores have copied the idea with their own brand products, which invariably are inferior in one aspect or another.Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA, New Zealand, South Africa, Eastern and Western Europe. Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States. (Ohio, Tennessee and the Dakotas are among the few states without it.) In less than three years, Red Bull singlehandedly established and then lifted the booming energy drink category from a base of $12 million in (wholesale) dollar sales to $42 million in 1998 and $75 million in 1999, per Beverage Marketing Corp. Others soon followed, building energy drinks to a $130 million business. Now Coke (KMX) and Anheuser-Busch (180) are jumping in. Last year, Red Bull's market share stood...
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...Strategic Brand Management TERM: Fall 2009 | | | |Section 05: 12:30-1:45 T-Th | | | | | |Room: HSB 101 | | PROFESSOR: Dr. Chris Pullig OFFICE: HSB 223 OFFICE HOURS: T-Th 1:45 – 4:00 or by appointment PHONE: 710-4769 (Office) and 836-0206 (Home) EMAIL: Chris_Pullig@Baylor.edu Course Description and Objectives: One of the most valuable assets for any firm is the brand associated with its products and/or services. Despite this, very little attention has been paid to the subject in business education. To address this, Strategic Brand Management is an advanced elective that addresses important branding decisions faced by an organization. Its basic objectives are: 1) to increase understanding of the important issues in planning and evaluating brand strategies; 2) to provide the appropriate theories, models, and other tools to make better branding decisions; and 3) to provide a forum for students to apply these principles. Specifically, we will cover: • Building customers’...
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...Executive summary Introduction In 1984 Mateschitz founded Red Bull. Red Bull Energy Drink was first sold on the Austrian market in 1987. Red Bull reached its first foreign markets in 1989 in Singapore and in 1992 in Hungary. In 2008 Red Bull created its own cola, Red Bull Simply Cola. It created a market segment unlike traditional colas, by using only 100% natural ingredients. In 2009, Red Bull extended its product line with Red Bull Energy Shots. Red Bull headquarters are based in Fuschl am See, near Salzburg Austria. Approximately 4 billion cans of Red Bull are consumed each year; the product is available in 160 countries. Red Bull is the leader of the energy drink market and performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world, which, despite the widespread economic gloom, has always taken a growing interest for this drink. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position and to think about some recommendations to further improve its strategy. The Product Red Bull is a lightly carbonated drink that enhances mental and physical...
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...Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting who are backed...
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...Case Study 11.1 Red Bull: The global market leader in energy drinks is considering further market expansion November 16th, 2015 Executive Summary Red Bull, an original in the energy drink market, was founded in 1984 by marketing guru Dietrich Mateschitz and formula developer Chaleo Yoovidhya. The product is often used for boosting energy, increasing focus, and as a mixer for alcoholic drinks. Red Bull is well recognised for its extreme marketing strategies. For example, Red Bull has a “Mobile Energy Team,” which is largely made up of university students. The Mobile Energy Team regularly travels from University to University to promote Red Bull and provide samples of the product. A second example of Red Bull’s marketing strategy is their support for extreme sporting events, for example; Nascar driving. However, with the increase of new entrants in the functional drink market, Red Bull’s market share has decreased. This decrease leads straight into the problem statement; What strategy(ies) can Red Bull, the global market leader, use to further expand into current and emerging markets within the next three years in order to increase market share and sales? Several symptoms from the case where used to create an Industry Competitive analysis, a Fishbone analysis, and a SWOT analysis. Ultimately, after evaluating the Industry Competitive analysis, the Fishbone analysis, and the SWOT analysis, three alternatives were chosen to be further explored. These three alternatives...
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...BRAND AUDIT- RED BULL Index Table of Contents Introduction to brand audit.................................................................................................. 1 1.Background of energy drinks ................................................................................................. 3 2. Market analysis of energy drinks ………………………………………………………………………………. 4 3.Red Bull……………………………………………………………………………………………………………………………. 7 4.Integrated marketing communication channels………………….……………………………..………….13 5.Survey Analysis……….……………………………………………………………….…………………..……………….22 6.Red Bull brand………………………………………………………………………………………………………….……29 7.Competitor analysis………………………………………………………………………………………………………..38 8.Red Bull positioning…………………………………………………………………………………………………..….40 9.SWOT analysis……………………………………………………………………………………………………….………42 10.PESTEL analysis……………………………………………………………………………………………………..…….43 11.Supply and distribution of red bull………………………………………………………………………….…….45 12.Red bull in news…………………………………………………………………………………………………………....46 13.Reccomendations…………………………………………………………………………………………………………. 50 References Exhibit(survey questions)………………………………………………………………………………………………….53 2 INTRODUCTION TO BRAND AUDIT A brand audit is a thorough examination of a brand’s current position in an industry compared to its competitors and the examination of its effectiveness. When it comes to brand auditing, five questions should be carefully examined and assessed. These five questions are how well the...
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...Vacancy for Brand Manager Dekko Group and Red Bull both wanted candidates having minimum 5 years experiment. Both Dekko Group and Red Bull wants Brand Mangers who have previous professional experience including the experience of maintaining and operating big, sophisticated establishment. They both want candidates who have good communication and who are capable of handling others as well as themselves. Both companies want candidates who have Bachelor's degree; MBA not required, but preferred. The applicants should have experience in the following area(s): Brand Planning/Development, Marketing. They also mentioned that the candidates should have strong drives to achieve results. Red Bull published the ad in a highly professional way, whereas Dekko Group did not do it. Red Bull mentioned their requirements in bulletin points and in detail, which highlight each and every point and Dekko Group, wrote all their requirements in one paragraph which is little vague. Red Bull mentioned the age limit Dekko Group did not. Red Bull mentioned key results and deliverables (what does success look like) but Dekko Group did not say anything regarding this. Red Bull broadly described about major activities to ensure achievement of key results and deliverables and Dekko did not mention about it. Red Bull did not mention the salary they will give but Dekko Group clearly mentioned it. 1. Dekko Group did not mentioned key results and deliverables (what does success look like) 2. Dekko...
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...International Marketing Management (IBU5MKG) [pic] Title : International Marketing Plan “Monster Energy Drink” Lecturer : Mr. Mike Turner Student : Ekapon Srisittichaikul - 15996703 Kasemvit Lohitkul - 15954478 Mengxi Xu - 15999067 Hsieh Hsinng-Jen - 15942765 Yaxian Tang - 15707254 Shuqing Zhang - 15498769 Hanjie Mei - 15619403 TABLE OF CONTENT Executive summary………..……………………………………………………...............……...3 Political system……………………..…………………………...……………..…...…………….5 Legal system…………………….……….………………….................................................……7 Economic statistics and activity…………….……………...……………….........…..………….8 Geographical setting……………………………………..…...…………….…..........................14 Social environment…………...………………...........................................................................15 Cultural environment…………...………………......................................................................19 Technology…………...……………….......................................................................................22 Trading infrastructure…………...………………....................................................................24 The market…………...……………….......................................................................................27 The company………...………………………………………………………............................31 Statement...
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...developed ten new creative concepts for Mountain Dew’s 2000 advertising to present to PepsiCo management. Gathered in the room to support Bruce and Cassar were BBDO senior executives Jeff Mordos (Chief Operating Officer), Cathy Israelevitz (Senior Account Director), and Ted Sann (Chief Creative Officer). Each of the three executives had over a decade of experience working on Mountain Dew. Representing PepsiCo were Scott Moffitt (Marketing Director, Mountain Dew), Dawn Hudson (Chief Marketing Officer, and a former senior ad agency executive), and Gary Rodkin (Chief Executive Officer, Pepsi Cola North America). Scott Moffitt scribbled notes as he listened to Bruce speak. Moffitt and the brand managers under him were charged with day-to-day oversight of Mountain Dew marketing. These responsibilities included brand strategy, consumer and sales promotions, packaging, line extensions, product changes, and sponsorships. But for Moffitt and the senior managers above him, the most important decisions of the year were made in conference rooms with BBDO creatives. Each of the ads would cost over a million dollars to produce. But the production costs were minor compared to the $55 million media budget that would be committed to air these spots. Historically, PepsiCo management had learned that selecting the right...
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...MKT 533 Branding Strategy Cases Dr. Diane Badame Fall 2015 The price of this reader reflects a 20% discount on production costs, due to the early submittal of material by the instructor. Dear Student: Reproduction of copyrighted material, without prior permission of the copyright owner, particularly in an educational setting, is an issue of concern for the academic community. Unfortunately, the impropriety of much unauthorized copying is all too often overlooked by users in an educational setting. Although copying all or part of a work without obtaining permission may appear to be an easy and convenient solution to an immediate problem, such unauthorized copying can frequently violate the rights of the author or publisher of the copyrighted work, and be directly contrary to the academic mission to teach respect for ideas and the intellectual property that expresses those ideas. With that in mind, the University Bookstore has sought permission and paid royalties for all materials enclosed. The price of your reader reflects those necessary costs. This material comes from "Questions and Answers on Copyright for the Campus Community," Copyright 1993 by National Association of College Stores, Inc. and the Association of American Publishers. MKT 533 – Branding Strategy Dr. Badame, Fall 2015 UNIVERSITY OF SOUTHERN CALIFORNIA MARSHALL GRADUATE SCHOOL OF BUSINESS MKT 533 – BRANDING STRATEGY 1.5 CREDIT COURSE FALL 2015 ___________________...
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...Eric Dowling Alex Davydov Matthew Melnicoff Soledad Querol Molly Rotsch Contents Executive Summary.............................................................................................................................................3 Marketing Analysis .............................................................................................................................................3 The Target Brand ............................................................................................................................................3 "The Guest" ....................................................................................................................................................4 Target's Competitors ......................................................................................................................................4 Expect More, Pay Less ....................................................................................................................................4 Rise of the Store Brand ...................................................................................................................................5 Up and Up......................................................................................................................................................6 The Introduction of PFresh.............................................................................................................
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... these categories were barely on the radar in these countries. By 2011, they ranged between $400 million to $890 million in revenues in these markets, generating significant profits for the companies that took the initiative to introduce them. Emerging markets may be expanding at a record-setting pace, but many also are undergoing rapid category consolidation. It’s to the point where, in many cases, the top three to five players now control the lion’s share of a category in any given market. Consolidation can slim margins for incumbents and limit opportunities for new players. That leads some consumer goods companies to survey the landscape and conclude they’re locked out. But the fact is, identifying new categories and subcategories and building them from scratch can serve as a powerful path to growth (see Figure 1). It allows companies to surmount the consolidation hurdle and capture their share of consumers’ rising disposable income. For those that understand how to...
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...extended to fruity energy drinks, sports drinks, chewing gum, soda, and, most recently, chocolate. Extending the SoBe brand image to performance enhanced chocolate has proven challenging. The SoBe Chocolate group (operating in conjunction with HVC Lizard Chocolate) has tried, with some success, to create a new confections category centered on the concept of functional indulgence. Yet, the product line suffers an identity crisis with consumers who are not used to the inclusion of performance enhancers in chocolate. Initial packaging and marketing efforts have not adequately educated the market and consumers are not associating the SoBe brand identity with a chocolate bar, or SoBe Chocolate to the confections category. Situation The Life and Times of SoBe SoBe came to life in 1996 as the South Beach (SoBe) Beverage Company. Founded by two Pepsi alums, Mike Schott and John Bello, the company introduced a beverage line that “defied convention”. The attitude at SoBe is characterized by the following from John Bello: “Mike and I came from Pepsi, where things get massaged into mediocrity. I don't think Coke or Pepsi would ever put out a bottle with a lizard on it that has St. John's Wort in it. They just won't do it. Whereas I have nothing to lose by doing that.” The SoBe brand is positioned as a healthy beverage alternative to the traditional carbonated beverages offered in gas stations and convenience stores. SoBe beverages target active consumers who are...
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...BRAND MANAGEMENT Case No. 3 SNAPPLE: REVITALIZING A BRAND INTRODUCTION In the 1990s, Snapple Corporation was one of the leading “New Age” beverage brands when the category was just beginning to take off. With the combination of a unique product, package design, and quirky advertising, the company grew form a regional underground favorite toa nationally recognized brand. Snapple’s rise in the beverage industry was crowned in 1994, when the Quaker Oats Company purchased Snapple for $1.7 billion. Quaker expected to make Snapple a major player in the industry, as it had done with GAatorade. However, the company was unable to capitalize on the brand’s previous success. In 1997, Quaker sold Snapple to Triarc Beverage Group for $300 million. Triarc faced a number of challenges, including reversing the sales slide, revamping the distribution system, and creating new products that will enable growth. Most importantly, Triarc had to find a way to reconnect the brand with its consumers. Triarc successfully resurrected the Snapple brand, and in 2000 sold Snapple to Cadbury Schweppes for $1.45 billion. Cadbury Schweppes then faced the challenge of maintaining Snapple’s brand strength in an increasingly competitive beverage environment. THE EMERGENCE OF SNAPPLE The roots of Snapple Corporation date back to 1972 in Brooklyn, New York when brothers-in-law, Leonard Marsh and Hyman Golden, left their window-washing business and teamed up with Marsh’s childhoAod friend and health...
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