In-depth SWOT Analysis of Red Bull Company Business Strategy

Verified

Added on  2024/07/24

|5
|691
|172
Report
AI Summary
This report presents a SWOT analysis of Red Bull, a company renowned for its successful brand image and global market leadership in the energy drink sector. It highlights Red Bull's strengths, including its early entry into the Western market, strong international sales, and effective marketing strategies centered around sports sponsorship and lifestyle magazines. The analysis identifies weaknesses such as a limited product range compared to competitors like Monster and concerns regarding the high sugar and caffeine content, leading to a lack of FDA approval. Opportunities for Red Bull include expanding its media presence through strategic collaborations and increasing its focus on Corporate Social Responsibility (CSR) initiatives like recyclable aluminum cans and resource-saving production methods. The report also addresses threats such as rising marketing costs, increasing competition, and lawsuits related to health concerns. The conclusion suggests that Red Bull should innovate and introduce healthier, more nutritious energy drink variations to attract a wider customer base.
Document Page
SWOT ANALYSIS FOR RED BULL COMPANY
1
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
Introduction
.................................................................................................................................................3
Discussion
................................................................................................................................................... 3
Conclusion
................................................................................................................................................... 4
References
................................................................................................................................................... 5
2
Document Page
Introduction
Red Bull has been successful in creating a strong brand image with a colourful icon and two

bulls in opposition and an interesting tagline as “Red Bull gives you wings”. The company has

reached out to the youths through its creative marketing strategies and associating itself with

music, art and sports. It was launched in 1987 in Austria and is one of the European success

stories. Competitive rivalry is increasing and there are concerns that the product is detrimental to

health and adolescent behaviour.

Discussion

The major strength of Red Bull is its market leadership in global scale. It was the first energy

drink that became popular in the West and has sold around 6.3 billion cans in around 171

countries in 2017. Red Bull focuses on expanding its business in the international market and the

top markets that sold the brand are Turkey, India and Netherlands In 2017, Red Bull’s sales have

increased by 35% in India, South Africa and Turkey. According to the reports published by

Forbes, Red Bull is ranked 74 among the most valuable brands in the world. Red Bull also

operates variety of lifestyle magazines that covers issues like celebrity gossip and sports. The

marketing strategies incorporated by Red Bull has been impeccable and focused on sports

sponsorship like motorcycle racing (
Teigeler and Hahne, 2014).
In terms of soft drinks market, Red Bull is far behind popular brands like Pepsi Co and Coca

Cola. The product range of Red Bull is limited to only five drinks like Red Bull energy drink,

Red Bull Zero Calories, Red Bull Sugar Free Red Full Simply Cola and Red Blue Editions

(tropical, blue, orange). Thus, it fails in producing diversified product portfolios. Contrarily,

Monster, the competitor of Red Bull has almost 30 different brands. The company has also failed

to aggravate its production volumes and offer variety of products in the market.

Red Bull has an opportunity in boosting its presence in media through strategic collaborations

and is also increasing its focus on Corporate Social Responsibility (CSR). Red Bull is using

aluminium cans that are recyclable and saves raw materials and protects the environment from

depletion of resources. The company has also started “Wall to Wall” production to save

resources which means that the cans are manufactured and filled at the same site, thereby

3
Document Page
reducing transportation cost and footprints significantly (Seitz, 2016). Added to this, market
research predicts that by 2018, Red Bull will expand its business to the Chinese market.

The biggest threat of Red Bull is that it is not approved by FDA. The scientists have found out

that there is high amount of sugar and caffeine in Red Bull which is detrimental to health. Other

threats associated with Red Bull are increase in the marketing costs, rise of the competitors and

lawsuits against the company due to its health deterioration drinks (
Kavitha and Reddy, 2016).
Conclusion

Thus, it can be concluded that although Red Bull has captured the market and expanded

internationally, it is threatened for its unhealthy products that are detrimental to the health. Red

Bull needs to bring variations in energy drinks that are nutritious and healthy to reach out to the

targeted and potential customers.

4
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
References
Kavitha, N.V. and Reddy, N.S., 2016. Buzz Marketing-SWOT Analysis.
International Journal of
Innovative Research and Development
, 5(2).
Seitz, P., 2016. A strategic analysis on the New York Red Bulls.

Teigeler, J. and Hahne, A.K., 2014. Market Analysis of Red Bull based on the countries

Germany, Switzerland and Austria.

5
chevron_up_icon
1 out of 5
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]