Red Bull Start marketing
I think that the major weakness we are seeing here is that Red Bull has all of their eggs in one basket. The only thing that Red Bull has is the original drink and a sugar free version. If you look at most every other beverage company, they have a well-diversified product line with much to offer to their customers. I think that people like diversity in their lives and do not want to be drinking the same thing day in and day out, which Red Bull can not offer right now Opportunities: Red Bull can extend its product line
Consumers have recognized Red Bull through their marketing and sponsoring activities Red Bull is still a pretty new product and still have opportunities to expand to new markets More people are starting to look for alternative beverages besides just soda and coffee to get their caffeine NewTechnologyin research and development poses the opportunity to improve current product and create new ones. The fact that the energy drink market is still growing gives Red Bull the opportunity to grow with it.
Red Bull just needs to make sure that they take advantage of the growing market and do not let other companies with more to offer move in and start to take away more market share. Threats: The federal government could put strict restrictions on the energy drink market Many people are concerned with theirhealth, and energy drinks are perceived to be unhealthy New entrants coming into the market are offering more bang for the buck while presenting more options Big players such as Coke and Pepsi could use their resources to steel market share
Red Bull could lose its “cool” factor because it has oversaturated the energy drink market. I think the big threat here is that the government could possibly put strict regulations on energy drinks because of health concerns. If Red Bull were to not meet one of the regulations that the government could possibly put into place, then Red Bull would fail and they do not have any other product to keep the company afloat. With health conscious consumers and new studies always coming out on different products, if a study found Red Bull to be very unhealthy then people would likely not buy the product as much Overall SWOT Analysis:
Of the above, the primary strength of Red Bull is that they have a strong Brand image and is perceived as the premium energy drink on the market which gives consumers themotivationto pay more for Red Bull than any of the other energy drinks on the market. The marketing strategy also has a very strong conceptual fit with the product. My plan will not jeopardize any of the strengths that Red Bull currently has, but use those strengths in other areas to diversify them. The main weaknesses and threats are that Red Bull is not a very well diversified product and other energy drinks are coming onto the market with more to offer.
With my plan it will diversify Red Bull so that they are not just in the energy drink market and it will also improve what they are doing in the energy drink market. Another weakness is that the government could possibly put strict regulations into place. With the plan of diversifying the product line, it would lower the threat of going out of business if Red Bull were pulled off of the market. Alternatives Do Nothing Red Bull is still the leader in the energy drink market and people seem to be willing to pay the higher price for the drink.
Their current marketing efforts have seemed to work thus far. Pluses: They can focus on what they have been good at this far Easy to execute Does not cost any moremoneyto put into place Does not run the risk of messing up what has already been put into place Minuses: Does not address the diversification problem of the line Other energy drinks may continue to take market share if nothing is done. Analysis: This could be a good option because Red Bull is still a very profitable company with a very strong brand image.
The fact that other energy drink companies are taking some market share may be unavoidable. For example when Henry Ford introduced the Model A he had most of the market share in the automobile industry, but once people caught on they started taking away some of the market share. This did not mean that Ford was becoming less profitable Execute a line and Brand extension Red Bull should extend its line to come out with new flavors of the current Red Bull energy drink as well as come out with drinks that were not in the energy drink sector. New drinks could be soda’s, sports drinks, energy shots ect.
Pluses: Existing customers will have the option to try different flavors and have diversity in their energy drink endeavors People may be likely to buy a different flavor of Red Bull when they crave something different rather than just buying a different brand If something were to happen to the energy drink sector than Red Bull would be able to still stay afloat with other products Minuses It will cost a lot of additional money to start a new product line If the extension were to fail, it would be a wasted effort Cannibalization of the current product