Identifying the Strength of the Red Bull Company (Case Study Sample)
RED BULL CASE STUDY is a business assignment about answering specific questions on the key red bull strategies and market tacticssource..
ASSIGNMENT: RED BULL CASE STUDY
Question #1. What are Red Bull's greatest strengths as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drink category and gain market share? What are the risks of competing against such powerhouses?
Red Bull business model
The Austrian company has been able to establish itself as the largest energy drink company in terms of market share with its unique business model. The way the company does it gives them an imperative competitive advantage. The main deal is the company associated with the world’s most extreme sports such as snowboarding and formula one. The company has a unique branding strategy that enables it to comparatively charge higher than its competitors. Predominantly, the company business targets the right audience preferably the male youth gender, who simply are thought to have a functional lifestyle and require a wholesome experience.
Red Bull's greatest strengths to enter the energy drink category and gain market share
Red bull has set up itself as a strong, clean and stylish brand identity identification and in the strength drinks market red Bull is the industry leader at some stage in the world. It describes a completely unique energy drink that helped for health growing a market area and brand image. The organization has additionally been able to set up the relationship of its product with the young population who aim to gain full life experience. not like other competing organizations, the company has paid attention to viral marketing based on a “seeding program’’ targeted on getting Red Bull merchandise into trendy stores, golf equipment, and bars. This will be taken into consideration as their strength.
What are the risks?
The greatest risk red bull faces in competing with powerhouses such as coca-cola, Pepsi and monster is the decline in annual sales. Of course, the energy drink market is subdivided among the companies and each has a considerable segment of the market it commands. As a result, red bull ends up with a reduced amount of sales recorded annually. Another weakness is their single product line. The sole product may be irrelevant obsolete if the product gets a serious competitor. Like Coca-Cola, they do now not have a various products. Red Bull hasn’t been able to create a line extension supplying both a weight loss plan drink to attraction to the recent fashion of fitness aware consumers or a new taste while also converting their fee point to be extra sensitive to the customer. Again, the red bull may also face the risk of product copying from other powerhouses. When a competitor is engaged in eavesdrops, the company may face a drop of sales as competitors rush to introduce the product early in the market. The company may also face competition for a talented workforce, advertising channels, raw materials and many more.
Question #2. Discuss the pros and cons of Red Bull's nontraditional marketing tactics. Should the company do more traditional marketing? Why or why not?
Pros and cons of Red Bull's nontraditional marketing tactics
A nontraditional marketing tactic is a marketing strategy used by red bull to target potential customer’s big and popular events and areas such as major restaurants and events such as sports.
The main benefit is that big events attracts a lot of people and thus, red bull is able to get more to know and get their product. The company finds it easy to launch, market by giving out free samples and even sell. It the company uses a form of nontraditional tactic such as a poster, it can get viewed by many people within a short time.
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