Thursday, August 1, 2019
Swot Red Bull
STRENGTH ââ¬â Leadership position The company ââ¬Å"Red Bullâ⬠is considered like the ââ¬Å"leaderâ⬠of the energy drinks market in the world with 70% of market share in 2012. ââ¬â Marketing strategy * A lot of sports events, promotions and campaigns (like street marketing) * Sponsorship (F1 Red Bull Team, Felix Baumgartner, Shaun Whiteâ⬠¦) * Original communication strategy and efficient (http://www. redbull. fr/cs/Satellite/fr_FR/Video/Le-nouveau-clip-du-Monde-de-Red-Bull-au-cinema-021243076490242) -Innovation * Innovating recipe of energy drink containing ââ¬Å"Taurineâ⬠ââ¬â Loyal customers * The creation of an universe encouraged customer loyalty Strong Brand identity and trendy brand ââ¬â Strong financial position * Turnover of 3,27 Billion of Euros. ââ¬â Single product Weaknesses ââ¬â Average price ââ¬â Lack of product innovation Nowadays, there are a lot of competitors in the market owned by famous brands like Coca-Cola (Burn) or Pepsi (Dark Dog) ââ¬â Lack of patent on Red Bullââ¬â¢s recipe means anyone can copy it ââ¬â High logistics costs ââ¬â Profits linked to exchange rates ââ¬â High sunk cost (marketing, Advertising) Opportunities ââ¬â Red bull has opportunities to expanding the target markets as well as product lines extension * Extension of product line can help to retain market share Increase market share with increased opportunities in emerging markets through being trendy * Sunk cost can provide future growth in emerging markets due to a trendy image ââ¬â Consumer recognition through sponsorship of sports events so can expand product with a loyal customer base * Overcome higher prices than competitors with product expansion and diversification ââ¬â New ventures like partnership with Facebook ââ¬â Product and services expansion ââ¬â International manufacturing opportunities * Manufacturing Internationally can decrease exchange rate risks Keep substantial mar ket share with international operations * High logistics costs can be decreased with decentralized production in emerging markets Threats ââ¬â Competition * Major competitors such as Coca Cola (burn) and Pepsi (dark dog) are continually seeking to regain market share of Red Bull ââ¬â Negative publicity * Various media reported that Red Bull is harmful for oneââ¬â¢s health * The caffeine levels in Red Bull can be dangerous if consumed by children/teenagers * Red Bull has gone to the extremes of seeking scientific proof that its product is safe for consumption (cost of scientific research) Inability to move forward with the product * The product could be in danger of becoming stale by shunning conventional advertising methods * Large investment in extreme sport events the question is what will be their next step to keep on being innovating and attracting ââ¬â Ability to gain new customers and retain current customer loyalty * Red Bullââ¬â¢s target market currently ai med at youngsters: so this generation will continue to drink ââ¬Ëenergy drink? * the next upcoming generation accept this product ?
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