Red Bull Case Study Analysis

Executive Summary:

The Problem:

I have been asked to evaluate the marketing strategy for Red Bull. More specifically, I have been asked to identify new ways that Red Bull could maintain its leadership position in a maturing category. Although Red Bull did create this market and is a top seller for energy drinks, it is now vulnerable to other competitors who have the resources and brand recognition to aggressively compete, such as Coca-Cola, PepsiCo, and Hansen, to name a few. The alternatives described were 1.) Create new marketing strategy for new target: Red Bull can create an entirely new marketing strategy that will target new consumers and create a new demand for its product. 2.) Develop more product line extensions: Overall, the one advantage that the competition has over Red Bull is a larger, more differentiated product line offering. 3.) Focus on alcohol consumption with Red Bull: It is clear that the possibility of health risk regarding Red Bull combined with alcohol could create serious issues for Red Bull in the future. If Red Bull addresses it before it happens, it may be worth losing that consumer base in order to keep the rest.

The Answer: To meet the objectives and maintain the leadership position of Red Bull in a maturing category I’ve decided to use a combination of all of the alternatives.

Rationale: I think that Red Bull needs to address a new target market with new marketing strategies in order to remain competitive. This will require costly research and time, in order to find out what niche Red Bull has the ability to fill. This will help Red Bull in the long-run by maintaining the “original” aspect of their product, continuing that they are the first and therefore the best. But, there also needs to be some form of a product line extension, in order to provide consumers with variety. I do not suggest completely new flavors, but I do suggest trying different sizes of cans that competitors have, as well as an entirely new size, such as 4...