In this assignment named „Market Analysis of Red Bull based on the countries Germany, Switzerland and Austria” the goal is to analyse the market of Red Bull with its competitors, customers and market position.
Red Bull is a company and brand founded in 1987 with its slogan “Red Bull gives you wiiings”. The company launched by Dietrich Mateschitz sold more than 35 billion cans until now and is available in more than 165 countries. The brand is well known because of the large amount of athletes in sports and extreme sports sector they are supporting.
They are having their own sport events and additionally teams in such different sectors like e.g. football, formula 1 or flying. The biggest event they were supporting in the last years was the jump up from stratosphere of Felix Baumgartner.
Red Bull had also had some problems in the past not only with new out coming competitors.
But in some countries are legal requirements to enter the market and health concerns are producing negative publicity because they were warning customers that the drink can harm healthiness. Other points which are influencing the market position are that the price is very high and the competitive prices compared are much cheaper. Positive points to mention are that Red Bull helps it’s customers to overlap working much hours and to support them doing diet or sports more effective. Another important point is that the company is always using newest technology. The disadvantage is that there are many competitors with cheaper prices and Red Bull itself has a small product portfolio (only six different drinks).
All in all it can be said, that they are the market leader with a big growth in other countries and are seen as unique by the consumers. They have an attractive image and they are offering not only a drink but an experience. This is what creates their unique selling proposition in a way with a clear brand personality combined with an emotional binding and a high public interest. Their positioning in the market is very high levelled what is caused by the “old” but also “modern” slogan, that’s a high premium drink and not linked to a specific activity.
But to bear in mind is that it would become more difficult to hold the market leadership and justify premium pricing as well as their production methods.
Table of Contents
1. Theoretical approach market analysis and definition
1.1 Marketing definition
1.2 Marketing objectives and strategy
1.3 Market Analysis with limitations and benefits
1.4 Pest Analysis
1.5 SWOT Analysis
1.6 Competition
1.6.1 Opportunities
1.6.2 Behaviour
1.7 Positioning
1.8 Unique selling proposition
1.9 Customer Care concepts
2. Market Analysis of Red Bull
2.1 Introduction of the company
2.2 Marketing objectives and strategy
2.3 SWOT – PEST Analysis
2.3.1 Political
2.3.2 Economic
2.3.3 Social
2.3.4 Technology
2.3.5 Strength
2.3.6 Weaknesses
2.4 Needs for the product
2.5 Competition
2.6 Positioning
2.7 Unique Selling Proposition
2.8 Target Group
3. Conclusion
Objectives and Topics
This assignment aims to provide a comprehensive market analysis of Red Bull within the German, Swiss, and Austrian markets to clarify the company's current market position, competitive landscape, and strategic strengths.
- Theoretical foundations of market analysis and marketing strategy
- Application of PEST and SWOT analytical frameworks to Red Bull
- Analysis of competitive behavior and positioning in the energy drink industry
- Evaluation of Red Bull's unique selling proposition (USP) and target consumer groups
Excerpt from the Book
2.1 Introduction of the company
During the mid-80’s Dietrich Mateschitz launched the Red Bull GmbH and he brought Red Bull’s first Energy Drink on the Austrian market in 1987. During a business trip in Thailand, Dietrich Mateschitz came across a national energy drink, called “Krating Daeng”. This Thai energy drink was made out of Taurin and was meant to give energy boosts and increase the effects of jetlag. Mateschitz brought the recipe to Europe and after several scientific test, he could enter the market with his first energy drink.
Already in 1987 Red Bull launched the first advertising with the famous bull and slogan “redbull gives you wiiings”. During the following years the company started to support athletes in different sports, i.e. Motorsports, Windsurfing or Snowboarding. During the 90’s Mateschitz first expanded into Hungary, and later into the German, British and American market. Today Red Bull is present in 165 counties in the world and according to the company 35 billion cans have been consumed already.
Today Red Bull is the world’s market leader when it comes to energy drinks, with a sales volume of 5.3 billion cans in 2012, with total revenue of 4.9 billion Euro. The year 2012 was the best year in the company’s history in terms of revenues, profit and productivity. In the same year in total 8.996 people were employed worldwide at Red Bull.
All together Red Bull provides 6 different products to its customers, all are associated with energy drinks and offer different tastes. It can be differentiated between Red Bull Energy Drink, Red Bull Sugarfree, Red Bull Zero Calories, Red Bull Editions, Red Bull Cola and Red Bull Fliegerschokolade. For a detailed explanation, the authors refer to the second Assignment, “Product and Price Analysis of Red Bull in Central Europe “.
Summary of Chapters
1. Theoretical approach market analysis and definition: This chapter defines key marketing concepts, outlines the objectives and strategies required for market planning, and introduces analytical tools like SWOT and PEST.
2. Market Analysis of Red Bull: This chapter applies the previously defined theoretical framework specifically to Red Bull, examining its history, SWOT factors, competitive environment, and positioning.
3. Conclusion: This chapter summarizes Red Bull’s status as a market leader and addresses potential future challenges regarding regulation and market maintenance.
Keywords
Red Bull, Market Analysis, Marketing Strategy, SWOT Analysis, PEST Analysis, Energy Drinks, Brand Personality, Unique Selling Proposition, Competitive Behavior, Market Positioning, Target Group, Premium Pricing, Sports Marketing, Consumer Behavior, Brand Awareness
Frequently Asked Questions
What is the core focus of this assignment?
The paper provides a structured market analysis of Red Bull, focusing specifically on the company's performance and strategy within the German, Swiss, and Austrian markets.
What are the primary themes discussed?
The assignment covers market analysis theory, SWOT and PEST evaluations, competitive analysis, brand positioning, and the identification of unique selling propositions.
What is the main research goal?
The goal is to analyze the Red Bull market to define its current competitive position and understand how the brand maintains its leadership in the industry.
Which scientific methods are utilized?
The authors employ marketing theoretical frameworks, specifically PEST analysis for macro-environmental factors and SWOT analysis for internal and external performance evaluation.
What does the main body cover?
The main body moves from a theoretical overview of marketing analysis to a practical, deep-dive case study of Red Bull, including its company history and current market positioning.
What are the key descriptive terms for this work?
The work is characterized by terms such as market leadership, branding strategy, energy drink industry, and competitive differentiation.
How does the company define its unique selling proposition?
The USP is described through the brand's clear personality, emotional binding created via extensive sports sponsoring, and a high level of public interest in the product.
What role does the media strategy play for Red Bull?
The establishment of the Red Bull Media House allows the company to move beyond just selling a beverage, offering consumers an integrated experience in sports, culture, and lifestyle.
- Quote paper
- Julia Teigeler (Author), Ann-Katrin Hahne (Author), 2014, Market Analysis of Red Bull based on the countries Germany, Switzerland and Austria, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/271840
