The Red Bull Case Study

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Table of Contents

  • Executive Summary
  • Case Introduction
  • Defining a problem
  • Situational Analysis
  • Strengths
  • Opportunities
  • Threats
  • Generation of Alternatives
  • Marketing Objectives
  • Marketing Communication Objectives
  • Market Analysis
  • Market Segments (and Shares of Market)
  • External Influences
  • Economic
  • Red Bull Competitor Analysis
  • Distribution
    Positioning Strategy
  • IMC Strategy
  • IMC Execution (Action Plan)
  • Media Action Plan
  • Communication Plan
  • Budget
  • Evaluation
  • Case Conclusion
  • References

Executive Summary

Red Bull is an adjustment of a Tai drink, presented and marketed in different nations by Dietrich Mateschitz, an Austrian business visionary. This item fundamentally settled the caffeinated drink market fragment in numerous nations and capacities to battle mental pressure and physical exhaustion. This item has been fruitful around the globe due to principally buzz marketing methodologies and verbal. The organization’s way to deal with fabricate the brand has for the most part depended on ‘hostile to mark’ based marketing. Red Bull has kept up its solid image personality as a result of its unwavering buyer base and extraordinary business strategies. After cautious analysis the primary issues that exist for this situation is the absence of upgrades concerning a developing target market and the requirement for another repositioning procedure to rival more up to date caffeinated drinks. The organization has concentrated the majority of its publicizing efforts towards gutsy or hazard taking game lovers. Along these lines Red Bull keeps away from mass marketing and has constantly endeavored to draw in buyers by limiting appropriation of their item. In the event that these issues are not unraveled they may potentially be the reason for a defeat, amidst confronting real contenders. There are four noteworthy open doors that Red Bull can exploit while being arranged at the most astounding point in the market. The organization can acquaint an augmentation with their product offering which may include: more up to date flavors to the present caffeinated drink or sports drinks. Red Bull could take advantage of item specialties, already unfamiliar to the organization. Likewise, to extend universally would intend to continue their status. The organization would probably build brand mindfulness in the wake of changing its ‘hostile to mark’ based marketed item. At long last, expanding accessibility of its items would build deals from faithful and more up to date clients. Alongside that, expanding broad communications advancements would enable them to just develop as an organization. There are some minor mishaps that include these options. New items could annihilate the offers of others, and money variances and additionally social contrasts may happen over the globe. What’s more, lawful commitments could be difficult to meet because of unfortunate allegations previously, costs and solid challenge could progress toward becoming obstructions to progress. So as to achieve an answer for Red Bulls current issues, it is prescribed that the organization expands item accessibility in understanding to expanding broad communications advancements. This mix of thoughts will identify with a current target market profile and help accomplish marketing destinations. Red Bull will most likely keep awake to date with changing patterns and advances inside the present market. By encouraging a prescribed IMC procedure, directed crowds can be come to through standard commercial channels, for example, sports systems as well as music channels. A bigger statistic can be drawn through the radio, magazines, just as big name supports. Ultimately, a situating procedure proclamation that would fit the organization’s present circumstance in the market would be: Red Bull, a moderate method for picking up vitality and an encounter, in the meantime.

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Case Introduction

Red Bull is an Austrian-produced energy drink that contends in a little specialty of the carbonated soda pop market. Dietrich Mateschitz, an Austrian business visionary moved toward the maker and was allowed a permitting consent to market the item in different nations. Red Bull is marketed universally by Red Bull GmbH, in 120 nations and is the pioneer in the caffeinated drink fragment, with worldwide deals being assessed to be around $2 billion. Red Bull’s inventive item made the caffeinated drink portion. The beverage is intended to help manage mental and physical exhaustion. Their blends of fixings collaborate with one another and give the vitality building advantage. The key fixings in a 250 ML jar of Red Bull are taurine (1000mg), glucuronolactone (600 mg) and caffeine (80 mg). Sugars, for example, glucose and sucrose are likewise included. Red Bull’s market share in the U.S. what’s more, Canada are genuinely high and amazing. Their U.S. market offer is evaluated to be around 46%, making it the pioneer in this market with about $240 million in deals. Their market share in Canada is evaluated to be about half, with $22 million worth of retail deals. Red Bull’s greatest dynamic rivals are Pepsi and Coca-Cola, which are depicted to be pioneers, not devotees. In contrast to its rivals, Red Bull utilizes conveyance in an alternate way. Rather than being promptly accessible it confines dissemination to pull in feeling pioneers, and rely upon the verbal system to bring issues to light. Their objective market is comprised of youthful urban guys from ages 16 to 29, who either live on the edge or possibly try to do as such and are normally intrigued by extraordinary games, undertakings and testing recreational exercises. Red Bull is additionally broadly known for their trademark ‘Red Bull gives you wings’ which fits directly in with their item.

Defining a problem

Red bull main problem involves targeting market and shift in market strategy for the positioning due to major competition faced by Red Bull which includes Hansen, Pepsi, and Coca-Cola’s latest energy drink. Major factors which faced by company is pricing factor which is currently double the price of the competitors other problem which company is facing is negative public image as it is unhealthy for consumer health. Red bull is aiming in repositioning market segmentation by not only including youth but also include older men and women. As Red bull stands first in market share its problem is distribution system since it doesn’t have good distribution system as compare to Coca-Cola. Red Bull need to setup their own strategic plan in order to stay in market so that they doesn’t lose Number one spot in market share.

Situational Analysis

Situational analysis means different ways through which managers examine organization’s environment, both internal and external so as to get a clear picture of organizational environment.

Situational analysis mainly deals with the strengths, weaknesses, opportunity and threats.


  • Holds good market share
  • Exhibiting good performance in new markets
  • Highly skilled workforce
  • Return on capital expenditure is very effective


  • Products are expensive
  • Less choice of products
  • Investment made in R&D is less while compared to competitors
  • Products are not considered to be healthy


  • New trend in consumer behavior will help to acquire new markets which will ultimately help in generating more revenue
  • By implementing new environmental policies, Red Bull can gain new markets
  • Red Bull can introduce new flavors which attracts new revenue streams


  • As products are considered to be unhealthy, it’s a main threat
  • Paris agreement has implemented many environmental regulations which is a main threat
  • Competitors has introduced products at subsidized price

Generation of Alternatives

Red Bull can expand its product line by manufacturing various other drinks for other targeted group of audience.

Another alternatives it can expand its manufacturing unit in different parts of world in order to cover the cost it will help the product to be cheap and completive. It can also help to increase distribution network.

As to remain number one it has to increase the awareness of product it can be done through increase in promotion media around the world and reach out target audience.

Marketing Objectives

  • To enhance sales
  • To get more established in the industry
  • To reach a certain limit of revenue which is already set
  • To get more website visitors
  • To increase market share
  • To spread brand awareness
  • To enter into new market
  • To enhance relation with customers and stakeholders

Marketing Communication Objectives

  • To retain existing customers
  • To encourage existing customers to refer
  • Every information passed to the customers should make a brand image
  • To provide potential customers with information relating to the product
  • To keep customers updated with the new things happening in business (E.g.: launch of new product)
  • To create a mutual understanding
  • To persuade customers about the product and service.

At the point when contrasted with Red Bull in angles, for example, caffeine and sugar content, Monster reliably wins out, and is by and large, a far greater can than the Red Bull.

Be that as it may, more vitality isn’t really something worth being thankful for, contingent upon what you’re doing – through a blend of fixings, these beverages make your cerebrum think you are wakeful, when extremely, your body isn’t.

On the off chance that you chug an entire can of Monster in one go, you may much endure heart palpitations, tension or sleep deprivation, particularly on the grounds that your mind and body are out of adjust. That is valid for all caffeinated drinks, on the off chance that you savor them overabundance they can have dreadful wellbeing dangers related with them.

Market Analysis

Market Segments (and Shares of Market)

Market analysis enables Red Bull to meet the points of the marketing capacity by distinguishing rivalry in the market, and to perceive openings in this manner enabling them to fill the holes making them emerge from different organizations.

Red Bull centers on pitching to a specific market fragment. They point selling a high level of their benefits at more youthful, extraordinary game members. They additionally hope to sell at games, which they support, drawing in a functioning, enthusiastic group of spectators.

Red Bull’s market position depicts the picture of being youthful, sound outrageous game games necessities. They do this by promoting and supporting numerous outrageous games and rivalries, and target more youthful crowds.

Red Bulls marketing targets are to build benefit, making an all the more universally known item and brand name, and to expand deals.

Red Bull – The first, propelled in 1997, Red Bull appreciates about 43% of the market.

Monster – A 39% market share. The organization plainly would like to outperform Red Bull with Coke’s assistance, however Monster officials noted in their income consider a week ago that both Red Bull and Rockstar have picked up offer as of late.

Rockstar – A solid however distant No. 3, the independent Rockstar has about 10% of the market.

NOS – This Coke-claimed brand is named after nitrous oxide, and is regularly sold in holders intended to look like nitrous tanks. Its market share is about 3%. Amp – Owned by Pepsi Co, Amp additionally has about 3% of the market.

External Influences


As Red Bull only manufactures in Austria and they exports to all countries major factor which get affected is exchange rate as it is long term effect in order to investment made by Red Bull. Increasing liberalization has benefited further Red Bull to invest more freely. There is no major economic issue faced by Red Bull since it serves to niche market.

Environment In 2009, there was a natural office distributed a rundown which about the best ten of organizations granted the greatest fines for waste action and Red Bull was one of them. Red Bull was granted fine of £260,000. Red Bull understood their obligation and improved their reusing framework as of late. By making cans with recyclable aluminum.


The beverage itself has been addressed as of late in America, with Red Bull being accused for an instance of startling passing by heart hurt after a ball player devoured one of the cans, which has prompted Red Bull being sued for $85million. Red Bull perceived and followed up on to forestall the loss of custom. The preference for this item, just as the first, is another significant social factor that Red Bull need to control.


Red Bull target market incorporates sportsmen/ladies just as dedicated individuals. The primary purchasers of the item are Athletes, night clubbers, move specialists, administrators and long-separate drivers. In spite of the accessibility of few substitutes, the offers of Red Bull are expanding through their all-around situated promotions. This factor has low impact on Red bull.


With Red Bulls advertising systems being perceived as very questionable and one of a kind, they are required to pay out a lot of cash to their stand-ins/ladies because of the risks they face. Caffeinated drink Red Bull, utilizes electronic point of sale (EPOS) information. This framework permits clients’ examination group to check the dissemination of Red Bull. This framework calls attention to the holes that can be come back to the retailers.

Red Bull Competitor Analysis


Red bull is considered as an extraordinary caffeinated drink as it have numerous competitors like Monster drink, PepsiCo, and Dr.Peper, etc. red bull is considered as the prime items. G dink or Gatorade and PowerAde is likewise commonplace among Canadians yet the majority of the general population lean toward red bull as essential decision in light of the taste and obviously the brand picture as well. Clients are increasingly faithful to red bull items.

Price (average and without tax are mentioned subject to change)

Red bull – $ 4.69

Monster – $ 2.00

Rock star – $ 2.00

Gatorade – $ 1.60

PowerAde – $1.20

When we looked at the cost in standard size there will be almost 3 dollars of distinction yet at the same time what number of substitutes come red bull have the most astounding interest. What’s more, it’s from students, to office workers to heavy load workers prefer red bull.


Significant competitors of red bull are Monster and Pepsi Co they have their dissemination everywhere throughout the world demigod is likewise recognizable among many. Their interest can be viewed as s all inclusive. The greater part of the general population in USA is devouring most elevated rate of utilization of red bull in late examinations.

Positioning Strategy

Red bull utilizes the positioning strategy relying upon the picture or separation of product. One of the most upper hand of Red bull is its image. Red bull supports distinctive number of games including dashing and subsequently the brand is related with mental just as physical performance. Over an extensive stretch of time, red bull has accomplished the brand picture of reviving, cool and stylish drink which is appropriate for feverish and occupied way of life of the present world. Advertising media utilized by red bull passes on message that ‘Red bull vitalizes body and psyche’. With the assistance of solid brand picture it is likewise ready to spread the points of interest and advantages f the item and makes separation of item as premium item and furthermore with premium price. But a top notch item additionally needs a top notch organization and circulation. Consumers are not just ready to purchase Red bull in comfort stores, treat machines, markets or supermarkets yet in addition it is accessible in the clubs, sports arenas, bars, etc. Red bull has masterminded and secluded itself as the market manager in juiced refreshments market, fitting they are encouraging to achieve their arranged premium social event and development high ground. The accomplishment of Red bull as a remarkable animated drink perhaps, figuratively speaking subject to how the brand has orchestrated and segregated itself from contenders.

IMC Strategy

Integrated Marketing Strategy alludes to the joining of different diverts of marketing such that the unmistakable and exact message identified with brand picture contact the intended interest group. The slogan of Red bull expresses that ‘It gives you wings’ and it has its primary spotlight on youthful crowd. A portion of the procedures utilized by Red bull are as per the following:

While publicizing or advancing the item they for the most part make associations with the extraordinary games, for example, mountain biking, diving, and so on as a strategy to pull in consumer’s consideration that it is the sort of beverage that bring moment vitality and is particularly focused to the youthful crowd. Additionally in games as well as it’s picking up prevalence by supporting huge occasions and music celebrations since they know that in such occasions individuals move and appreciate the music and subsequently is the most ideal approach to advance Red bull as the vitality drink. They likewise advance the beverage by giving it for nothing in schools, universities, etc. focusing on the youthful understudies by utilizing the motto ‘It gives you wings’ to acquire notoriety and to build more associations.

Red bull puts great benefit in the IMC methodologies and along these lines it is driving in the market for caffeinated drinks and is accomplishing prominence in this day and age. Red Bull company slogan is “Red Bull gives you wings”. To identify their target customer, Red Bull Company should divide its market into different segments. Such as:

  • Demographic Segmentation: In demographic segmentation, Red Bull Company divided its market on the basis of age, gender, income, occupation, etc. Different people of different ages could select a drink from their wide range. Red Bull offers drinks, both for male and female. Their main target should be students, athletics, professionals, and travelers.
  • Psychographic Segmentation: Red Bull Companies psychographic segmentation should include social class and lifestyle. Their main target should be the middle class and upper-class people. Red Bull lifestyle segmentation is based on explorer, reformer, and successor.
  • Geographic Segmentation: Geographic segmentation is done using the geographical location, which is segmented by region and mass of the population. They should provide different scheme according to the region, cities, and locations. Markets are mainly divided into urban and rural areas. In some of the countries, Red Bull limits itself to semi-urban and urban areas. It should also target a Class A and Class B city that is metro politician cities.

IMC Execution (Action Plan)

The Red Bull should give more focus on its IMC execution. The major focus point should be branding, corporate image, advertising, and media selection, and promotional tools, public relation. The promotional plan should be executed over the year around and, it should be continued such as advertisement or promotion in magazines and newspapers.

Media Action Plan

MediaTimePracticesNewspapers Weekly Widely used by customer, help in daily promotion Magazine 3 months Will get recognition more easily Radio 1 year Students can be attracted Contest Special Occasions More people attracted Publicity Continuous Keep customer to remember the product Personal selling 6 months Help to create public relation

Social Media Platforms

Daily Widely used by youth, students and professionals

Communication Plan

  • All of the department should inform about the tactics
  • Brand manager should explain about market segmentation and 4Ps.
  • Sales manager should coordinate with retailer, distributers, and suppliers.
  • Marketing director should collect report from all the sectors.


The estimated budget for Red Bull Company will incurred 1.7 million. The details are:

Media Estimated Cost Social Media Platform Advertisement on social media will cost approximately $1.5 million


Estimated Cost $40000/-

Magazine Estimated cost for magazine advertisement will be $75000/- Contest Estimated Cost $50000 Publicity Radio Estimated cost $50000/- Continuous Publicity Estimated Cost $35000


  • Company should check their achievement according to their goals and objectives.
  • Comparing the estimated growth with the actual growth.
  • Checking ongoing planning with the annual plan
  • Try to found out weaknesses and strength and more work on weaknesses
  • Calculate and compare the profitability of the product
  • Marketing audit should be done by timely.

Case Conclusion

Red Bull’s Canadian Market holds a great potentiality in terms of Energy Drinks Market. Although it is just 8% of the US Market, the market is growing at very high rate. More and more people are trying Energy Drinks, attracted mostly to the uniqueness of the brand image. At the same time, the competitors are growing in their size and share, which puts a high pressure on them to run ahead of the competitors. The proposed Marketing Strategy and Communication Plan presents the ideas to enhance customer base, strengthen loyalty, and achieve an impressive brand image. We have allocated around 10.62% of the retail sales budget for IMC Execution, to implement strategies through employee involvement, and efficient distribution networks. Some of the theoretical concepts used here are as follows:

  • Identifying the USP to formulate the IMC Strategy
  • Brand Building through Marketing Communication Objectives


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