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• Situational Analysis• Brand Extension Idea and Rationale• Implementation Strategy• Tactical Execution• Market Size and Projections
Red Bull Company Overview◦ Privately owned company founded in mid-1980’s ◦ Produces energy beverages targeted at athletes,
students, and professionals◦ Created the entire energy drink category ◦ Associated with high energy and excitement - it
claims to make consumers feel more alert by vitalizing the body and mind
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Dietrich Mateschitz, Red Bull Founder
STRENGTHS
• Industry Pioneer • Market leader • Premium pricing• Strong brand image• Widespread geographic
presence• Strong brand loyalty• Unique marketing
tactics
OPPORTUNITIES
• New categories ripe for expansion
• Opportunities to continue global expansion
• Growth opportunities within existing markets
WEAKNESSES
• Limited product portfolio
• High distribution costs• High caffeine levels:
vulnerable to regulatory control
• Recipe not patented, subject to imitation
THREATS
• Growing negative attitude toward health effects of energy drinks
• New regulations on the sale of energy drinks
• New entrants and growing strength of competitors.
• Taxes and tariffs limit profitability
• Premium pricing could potentially steer away customers
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Red Bull Brand Prism
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Brand Extension…
• Resonates with Red Bull’s brand essence
• Translates the utility of flagship product experience to a new product category
• New category (caffeinated energy bars) not yet saturated
Why it works
• Cannibalization of energy drink• Competition from traditional
energy bars• Potential that caffeinated
energy bar category is too niche and doesn’t have broad appeal
Risks considered
Place• Convenience stores, supermarkets,
drugstores, gas stations, exercise facilities◦ End cap displays
• Impulse purchase
Product • Fruit flavor• Caffeinated• Half-can shape• Eye catching packaging• Innovative on-the-go consumption
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Promotion• Sponsorship of extreme
events • Strong social media content • Wings Team, Student Brand
Managers
Price • Premium price for category• $3.99
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
• Total market size: $1.2 billion◦625 million bars• Competition market shares:
12%
5%
1.25%
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
