The SWOT Analysis Of Red Bull

13 The SWOT-analysis of Red Bull

13.1 Strengths

13.1.1 Market leader

Today, Red Bull is the market leader in energy drinks all over the world. Statistics have shown that in 2003 Red Bull dominated the brand share of the energy drinks market in the UK with 80%. Moreover, the company produces two-thirds of the total energy drinks in Europe. This has made Red Bull the biggest competitor in Western Europe. As the main leader in 12 countries, the company has made it impossible for other brands to launch new products to the energy drinks market.

13.1.2 Marketing capabilities

Red Bull is very known for its marketing capabilities. Due to its successful marketing strategies and consumer awareness, Red Bull has stimulated the drinks in the Western of

The company is strongly connected to fashion and youth trends. This has made a big competitor of Red Bull towards companies such as PepsiCo and Coca Cola. The competition is so strong that Red Bull is forced to spend huge amounts of money on advertising campaigns.

13.3 Opportunities

13.3.1 Diversification of its distribution network

Red Bell is recently using trade in order to increase sales. Vending machines work effectively as advertising tools and sales tools, due to the constant exposure to consumers. Companies such as PepsiCo and Coca Cola have been using this tool already for a long time. Currently, Red Bull is also launching vending machines, which proves that the company has committed to diversification of its distribution network.

13.3.2 Extension of product line

There are little changes that new competitors would entry into the energy drinks market due to the expensive costs of marketing and promotion. It’s more likely that companies will bring out new products under the same brand. The best market to bring out new products is the non-carbonated drinks sector, due to the fact that consumers’ interest have changed to healthier alternatives. Red Bull can use its strong brand awareness to promote new

The company is now going into developing markets such as India. Currently, Red Bull is expanding to North, East and Central India, but in the long-term, they will have to expand into other countries too.

13.4 Threats

13.4.1 Public health concerns

In some countries, the Red Bull drinks are considered to be a harmful drink. France has for instance banned Red Bull for years due to its high caffeine content and some experts think it might be deadly in some situations. In Denmark and Norway Red Bull and other energy drinks are forbidden to be sold in shops except in pharmacies. Moreover, Turkey, Ireland and U.S are concerned about its use. These issues can ruin the reputation and image of Red Bull.

13.4.2 Maturing market

The target group that Red Bull heavily addresses is growing and becoming older. In order to avoid losing their target, maybe the company should make changes into their strategies and make some marketing efforts.

13.4.3 Consumer awareness of health and well