Red Bull’s path to a better Blue (ocean)
Austria vs. Netherlands

Assignment: Strategic Analysis Red Bull
Date: 22.10.2008
Class: L2BV - M-Strategy & Marketing 2/02
Lecturer: Gerbrand Rustenburg

Ruud Kuijpers 1539334
Mark Mungroop 1540960
Stefan Andreas 1531650
Jason Lucas Luijckx 1538688

Executive summary

A thorough analysis of energy drink producer Red Bull concludes that the company was set up to market just one product, Red Bull. Eventually it started marketing a variety of slightly modified energy drinks. Now Red Bull is energizing people around the globe, touching down in over a hundred countries worldwide.

The Red Bull consumers can be divided into
Red Bull’s ambition is maintaining the top-brand status in the energy-drinks market. This means that they will have to maintain the high price level instead of trying to compete with cheaper brands. They expect to maintain the highest market share in the energy-drinks market. Red Bull also seeks great opportunities in the athletes segment, as most athletes currently consume sport-drinks instead of energy-drinks.
The core competences of Red Bull are of great value to the company and mainly guarantee its success. Firstly, the brand image, and thus the value, of Red Bull is enormous. Few brands in this segment accomplished to create such high brand awareness. This is closely intertwined with, the second core competence of Red Bull, the lifestyle of extreme sports that Red Bull sponsors and adores. Red Bull, as initiator of the energy drinks market, holds a truly unique product. In the past through physical exclusiveness, anno 2008 through brilliant marketing.
Sub-conclusion:
After looking at Red Bull’s status, strategy, ambitions and core competences the internal analysis of Red Bull can be completed. This is shown trough stating Red Bull’s Strengths and Weaknesses.
Strengths:
- Top brand in energy-drinks market
- High relative market share, in a growing market
- Strong and unique core product
- Strong brand image
- The artificial Red Bull lifestyle (brand value)

Weaknesses:
- Low