Red Bull’s SWOT analysis

S

  • Category leader – Red Bull has established a strong, consistent brand image globally. Red Bull is synonymous with energy drinks in many countries.
  • Marketing strategy – The promotional activities engaged by Red Bull throught extreme sports sponsorships have helped the brand to build a strong identity and to increase consumer awareness/loyalty.
  • Broad geographic presence – Red Bull has a broad geographic presence, which should ensure positive long-term growth even if certain markets reach maturity.

W

  • Category limitations – In overall soft drinks, Red Bull has a limited product portfolio compared to the rising number of competitors bringing many other flavour variants and categories.
  • Pricing – Red Bull products are above the energy drinks average price. Consumers tend to think twice at the time of purchase.
  • Copy problematic – Red Bull’s recipe is subject to copy be cause of a lack of patent.
  • Controversial – The relatively high caffeine and taurine content of Red Bull makes the brand highly vulnerable to regulatory controls.

O

  • Emerging markets – Emerging markets represent newer geographies for Red Bull’s expansion. Accelerating the marketing and sponsorships in these markets is a wise move.
  • New production – Red Bull’s new production facilities in emerging countries are likely to make its retail price more competitive. The brand should also consider building production sites in Asia.
  • Product line extension – Offering new flavours and formats should help Red Bull to keep/improve its market shares.

T

  • Competition – Monster represents the biggest threat as it contains natural ingredients, which seems more desirable than Red Bull for some consumers. Competition is becoming more and more dangerous in term of marketing actions (copying Red Bull).
  • High marketing costs – Maturity in developed markets makes promotion harder than in the past, inducing higher marketing costs.
  • Negative publicity – Media worldwide report Red Bull as harmful for health. Parents also state that some components can be dangerous if consumed by their teenagers (who are the product’s target audience).

J.P.

Sources: http://fr.slideshare.net/lecomtefrancois/le-marketing-stratgique-de-red-bull-17927774http://fr.slideshare.net/neha17tyagi/redbull-energy-drinkhttp://fr.wikipedia.org/wiki/Red_Bull

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