Strategic Marketin Red Bull

International Marketing

FINAL PAPER

Red Bull

Industry analysis

Since the 1970s, the French soft drinks industry has considerably grown and generates on 2010 a turnover of 4.188 billion Euros in France , according to the official French Agriculture Ministry. Energy Drinks are part of this category and they are liked by the young populations, from 15 to 30 years old, which are doing sports, and are actives.

Before the arrival of Red Bull in France, on 2008, - after long jurisdictional fight with the French government, the European Union forced France to accept Red Bull- energy drinks represented less than 1% of sales of soft drinks in large and medium stores. The arrival of Red Bull in the French market rocketed up the sales of energy drinks; at the same time, the market is young, and many competitors appeared.

Since this change of law, many brands have launched energy drinks in this burgeoning market. The main actors are: Red Bull, Monster, Burn and DarkDog.

Two years after the rise of the market, at the entrance of Red Bull in France, more than 20 million liters of energy drinks are consumed each year. In 2010, Red Bull recorded significant growth of 44.7% in value and 38.5% by volume.

In 2011, 4.631 billion cans of Red Bull Energy Drink were consumed in the world, an increase of 11.4% compared to the previous year. Because of exchange rates and prices, the turnover of the company grew by 12.4%, from 3.785 to 4,253,000,000 Euros. According to all key indicators, such as sales, profits, productivity and operating income, the figures show that it is better than the company has ever made.

These positive results are attributable mainly to the excellent sales by Red Bull, particularly in key markets such as the United States (+ 11%) and Germany (10%), but also in other markets such that 'Turkey (+ 86%), Japan (+62%), France (+35%) and Scandinavia (34%), as well as sound management of costs...