224238148 a global strategic marketing analysis of red bull the energy drinks industry (1)

7/23/2019 224238148 a Global Strategic Marketing Analysis of Red Bull the Energy Drinks Industry (1)

http://slidepdf.com/reader/full/224238148-a-global-strategic-marketing-analysis-of-red-bull-the-energy-drinks 1/25

Global

Strategic

Marketing:

An Analysis of Red Bull

By: Sam Deegan(20041091)



Assignment Global Strategic Marketing Re B!ll

Declaration" certi#y t$at t$is assignment is all my o%n %ork an contains no &lagiarism' By

s!bmitting t$is assignment " agree to t$e #ollo%ing terms:

Any tet iagrams or ot$er material co*ie #rom ot$er so!rces (incl!ing b!t

not limite to books +o!rnals an t$e internet) $a,e been clearly ackno%lege

an re#erence as s!c$ in t$e tet' -$ese etails are t$en con.rme by a #!ller

re#erence in t$e bibliogra*$y'

" $a,e rea t$e sections on re#erencing an *lagiarism in t$e $anbook or in t$e

/"- &lagiarism *olicy an " !nerstan t$at only assignments %$ic$ are #ree o#

*lagiarism %ill be a%are marks' " #!rt$er !nerstan t$at /"- $as a *lagiarism

*olicy %$ic$ can lea to t$e s!s*ension or *ermanent e*!lsion o# st!ents in

serio!s cases'

Signe Date

1




Contents

Declaration''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1

-able o# ig!res''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4

1' "ntro!ction'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2' Analysis o# t$e 3nergy Drinks "n!stry''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2'1' Backgro!n'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2'2' "n!stry Si5e Gro%t$ 6 &ro.tability''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2'7' 8om*etiti,e Sco*e''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2'4' Market eaers''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

2'' Sales Moel 6 ;S&''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''<2''1' Market Segmentation''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''<

2''2' An 3,ol,ing ;ni=!e Selling &oint'''''''''''''''''''''''''''''''''''''''''''''''''''''''''<

2''7' Sales'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''9

2'' >ey Dri,ers in t$e 3nergy Drinks Market'''''''''''''''''''''''''''''''''''''''''''''''''10

7' 8om*any Analysis o# Re B!ll'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''10

7'1' An "ntro!ction to Re B!ll''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''10

7'2' -$e Aims ?b+ecti,es 6 @al!es''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''11

7'7' 8om*any Milestones'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''11

7'4' Re B!lls &ro!ct Range'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''17

7'4'1' &ro!cts''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''17

7'4'2' &ro!ct &ositioning'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''17

7'4'7' -arget Market''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''17

7'4'4' 8om*etitorsS!bstit!tes'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''14

7'4'' Marketing Met$os'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''14

4' 8oncl!sion''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 14'1' "n!stry Analysis'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1

4'2' 8om*any Analysis'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1

Bibliogra*$y'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1

A**enices''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''20

A**eni " &'3'S'-'3' o# t$e 3nergy Drinks Market''''''''''''''''''''''''''''''''''''''''20

&olitical''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''20

3conomic'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''20

Social''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 20

2




-ec$nological'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''20

3n,ironmental''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 21

egal''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''21

A**eni "" S'/'?'-''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''21

Strengt$s'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''21

/eaknesses'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''21

?**ort!nities'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''22

-$reats''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''22

7




-able o# ig!re

ig!re 1 C !nctional Sales &er#ormance ?,er,ie%''''''''''''''''''''''''''''''''''''''''''''''''

ig!re 2C argest 3nergy Drinks Man!#act!rers Re,en!es''''''''''''''''''''''''''''''''''''ig!re 7 C 3nergy Drinks Sales Breako%n'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''9

ig!re 4 C 8om*any Milestones''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''12

4

http://var/www/apps/conversion/tmp/scratch_2/C:%5C%5CUsers%5C%5CSam%5C%5CDocuments%5C%5CBBus%204%20Semester%202%5C%5CRed%20Bull%20Marketing.docx%23_Toc387890778

http://var/www/apps/conversion/tmp/scratch_2/C:%5C%5CUsers%5C%5CSam%5C%5CDocuments%5C%5CBBus%204%20Semester%202%5C%5CRed%20Bull%20Marketing.docx%23_Toc387890778




1. Introduction

-$is Re*ort $as been !nertaken as *art o# t$e contin!o!s assessment #or t$e

Global Strategic Marketing mo!le' -$e re*ort consists o# t%o ini,i!al sectionst$e .rst section eamines o!r c$osen in!stry t$e energy rinks in!stry an

analysis it in terms o# its si5e sco*e6 sales moel' "n t$e secon section %e take

a look at o!r c$osen com*any o*erating %it$in t$e in!stry #or t$is %e $a,e

c$osen Re B!ll' "n t$is section %e s$all take an inCe*t$ look at $o% t$e

com*any *ositions itsel# %it$in t$e market $o% it iEerentiates itsel# #rom

com*etitors %$at market segment it targets 6 $o% it reac$es t$em'




2. Analysis of te !nergy Drinks Industry

2.1.Background -o analyse t$e scale 6 sco*e o# t$e energy rinks "n!stry %e m!st .rst e.ne

%$at an energy rink is accoring to(MerrieamC/ebster Dictionary 2014)an

energy rink is:

“…usually a carbonated beverage that typically contains cafeine &

other ingredients (such as Taurine & Ginseng) which are intended to

increase the drinkers energy levels”

-$e .rst recore mass *ro!ce energy rink %as *ro!ce in 1904' -$isenergy rink is no% one o# t$e most #amo!s brans on t$e *lanet 8oca 8ola'

8oca 8ola %as t$e .rst rink e,er markete as an energy booster 6 containe

cocaine at t$e time o# release' &rior to t$is t$e only stim!lant rinks a,ailable

%ere nat!ral ones s!c$ as -ea 6 8oEee' ?,er time t$e lansca*e o# t$e energy

rinks market $as c$ange t$e .rst moern energy rink %as sol in 19< an

its maker remains t$e ominant *layer in t$e market to t$is ay %$ic$ is Re

B!ll%$ic$ %e look #!rt$er into in t$e com*any analysis'

2.2. Industry Si"e# Gro$t % &rofitability




-$e energy rinks market $as boome in recent years accoring to (>ing

2017)energy rink

8ons!m*tion $as

gro%n on a,erage

10F since 200

bringingcons!m*tion !*

1' Billion itres

to 4' Billion

itres in t$e s*ace

o# +!st #o!rs$ort

years' 8onsiering

t$ese .g!res t$e

energy rinks

in!stry is clearly

a B!ll market%$ic$ is in a

*$ase o# ra*i

e*ansion as

corroborate by

ig!re 1 to t$e

rig$t' -$is gro%t$

s$o!l not stie in t$e near #!t!re !e to t$e b!rgeoning B'R'"'8'S economies

%$ic$ %ill re*resent ne% gro%t$ regions as t$e *resent markets s!c$ as Hort$

America mat!re' A tr!st%ort$y "n!stry %ie sales .g!re is $ar to obtain in

relation to t$e energy rinks market t$o!g$ (Ienit$ "nternational 2012)estimates t$e market to be %ort$ a**roimately J7 Billion to *!t t$is in

*ers*ecti,e (Smirke 2017) *lace t$e total re,en!e o# t$e global recore m!sic

in!stry at J1' Billion %$ic$ emonstrates t$e gro%t$ t$at energy rinks

in!stry $as !nergone'

2.'. Co()etiti*e Sco)e

8om*etiti,e sco*e is a conce*t e,elo*e by Mic$ael 3' &orter' 8om*etiti,e

sco*e can be K/ieL meaning t$e target market consists o# many smaller

market segments or KHarro%L meaning it is #oc!se on a s*eci.c Hic$e(&orter

19<)' -$e 3nergy Drinks "n!stry itsel# #oc!ses on a nic$e age gro!* o# 1<C74

year ol males (Ackerman 2017) t$o!g$ ,ario!s com*anies are attem*ting to

%ien t$eir age a**eal !e to t$e increasingly more cro%e market 6 entice a

larger #emale cons!mer base' -$is means t$at t$e once narro% #oc!s is slo%ly

%iening in *art !e to t$e eisting aging c!stomer base an also !e to more

mainstream s*onsors$i*s s!c$ as orm!la 1'

Figure 1 - Functional Sales Performance Overview




2.+.Market ,eaders

-$e energy rinks market o*erates on an international scale' -$e "nternational

market is an oligo*oly %$ic$ is ominate by a small n!mber large *layers t$is

is emonstrate belo% in (ig!re 2)' "t is $o%e,er clear t$at Re B!ll 6 Monster

3nergy are by #ar t$e biggest *layers' -$ese com*anies are increasingly

obtaining ne% c!stomers at t$e e*ense o# so#t rink man!#act!rers s!c$ as

8ocaC8ola 6 &e*si'

Re B!ll

Monster

Rockstar

H?S

AM&

!ll -$rottle

o!r 3nergy

0 00 1000 100 2000 200 7000 700 4000 400

Largest Energy Drinks Revenue's ( !illions"

argest 3nergy Drinks Re,en!eNs (J Millions)

As a res!lt %e are seeing com*anies s!c$ as t$ese e*loiting t$eir etensi,e

istrib!tion c$annels to !nerc!t many o# t$e eisting energy rinks makers

eam*les o# t$is incl!e 8ocaC8olas B!rn bran %$ic$ is 40F c$ea*er t$an

c!rrent market leaer Re B!ll(-re.s 2014) b!t is yet to e,elo* its market !e

to its relati,e in#ancy com*are to t$e ot$er brans'

2.-. Sales Model % S&

2.-.1.Market Seg(entation

All t$e energy rink brans $a,e trie to em!late t$e s!ccess o# Re B!ll6 target

t$e same segment o# 1<C74 year ol males (Ackerman 2017)' -$e met$os !se

to reac$ t$is a!ience !s!ally incl!e associations %it$ ,ario!s etreme s*orts

like Sno%boaring Skateboaring 1an /orlRally 8$am*ions$i*' DiEerences

bet%een *ro!cts are generally con.ne to *rice can si5e 6 a,o!r t$o!g$

t$ere is an e*aning market #or more concentrate Ks$otL ,ersions' "n terms o#

*rice energy rinks are generally #ar more e*ensi,e t$an ot$er so#t rinks

<

Figure #- Largest Energy Drinks !anufacturers Revenue$s




o#%$ic$ Re B!ll is #ar 6 a%ay t$e most e*ensi,e bran ne%comers ten to try

!nerc!t Re B!ll to try ac$ie,e a greater market s$are'

3nergy rink can si5es are steaily becoming larger as com*etitors attem*t toiEerentiate t$emsel,es' ;sing larger cans *ortrays an image o# im*ro,e

,al!e6$ig$lig$ts attem*ts to increase *er ca*ita cons!m*tion rates %$ic$ are

generally =!ite lo% ,ers!s so#t rinks(&R He%s%ire 2017) t$is $as been ,ery

s!ccess#!l as t$is cons!m*tion .g!re $as o!ble since 200' -$ere is also a

gro%ing segmente eman #or ne% a,o!rs t$o!g$ t$e ”original energy drink

avour” still $ols <F o# t$e market s$are accoring to (8anaean 2017) it $as

s$r!nk #rom o,er <0F o# t$e market s$are in 2004' -$is is %$ere brans s!c$ as

Monster $a,e traitionally $a t$e most s!ccess in attracting c!stomers #rom

Re B!ll !e to t$eir limite range o# a,o!rs'

-$e ne%est t$reat to t$e traitional energy rinks brans is t$e emergence o#

energy s$ots s!c$ as o!r 3nergy' -$ese energy s$ots aim to *ro,ie t$e same

bene.ts as t$e traitional energy rinks s!c$ as Re B!ll 6 Monster b!t in a

smaller *ackage %it$ #e%er calories 6 s!gar' -$e braning t$o!g$ is some%$at

more istincti,eCo!r 3nergy *ositions itsel# as more o# an energy s!**lement

t$an a be,erage' Many o# t$e *layers s!c$ as Re B!ll 6 Monster $a,e release

concentrate ,ersions o# t$eir *ro!cts to com*ete %it$ t$ese b!t as o# yet $a,e

not gaine t$e same traction as o!r 3nergy'

2.-.2.An !*ol*ing ni/ue Selling &oint

3nergy rinks $a,e !ner%ent to some etent a *erce*tion c$ange o,er t$e last

ecae originally t$ey %ere seen as a #!nctional s$ort term energy . or a *ick

me !* to kee* yo! alert #or a s$ort %$ile e'g' a late ri,e $ome' -$is #!nctional

*erce*tion $as ramatically c$ange 6 %it$ it t$e !ni=!e selling *oint o# t$ese

energy rinks to =!ote %$o is essentially t$e #o!ner o# t$e "n!stry Dietric$

Matesc$it5 t$e Re B!ll 83? t$e ;'S'& is no% some%$at more *$iloso*$ical:

“hat !ed "ull stands #or is that it “gives you wings…$” which%eans that it provides skills$ abilities$ power etc to achieve

whatever you want to 't is an invitation as well as a reuest to be

active$ per#or%anceoriented$ alert$ and to take challenges hen

you work or study$ do your very best hen you do sports$ go #or

your li%its hen you have #un or *ust rela+$ be aware o# it and

appreciate it”('e,,i$ -./-)

-$is is clearly #ar #rom its #!nctional origins 6 aims to sell an etreme li#estyle

$ence t$e *re,alence o# etreme s*orts in t$e ,ario!s brans a,ertising*ort#olios' -$e brans no longer aim to sell yo! a li=!i energy boost b!t a *iece

9




o# t$is %il 6 etreme li#estyle' -$is is %$y t$e ,ario!s brans all try to o!to

eac$ ot$er in etreme s*orts s*onsors$i*s beca!se t$ey m!st constantly *!s$

t$is etreme image to stick o!t #rom t$e com*etition e'g' t$e Re B!ll Stratos

s*ace+!m*'

2.-.'.Sales

As yo! can see #rom t$e .g!re belo% t$e .g!res ac=!ire #rom (&R He%s%ire

2017) clearly s$o% t$at t$e ,ast ma+ority o# sales come #rom *!rc$ases in local

s$o*s' -$ere is also signi.cant amo!nts o# energy rinks *!rc$ase #rom mass

merc$anisers 6 %are$o!ses %$ile not sti*!late %e belie,e t$at many o# t$ese

sales are to bars 6 nig$tcl!bs' -$is is !e to t$e gro%ing tren o# miing energy

rinks %it$ s*irits %$ic$ is coming increasingly !ner scr!tiny !e to a n!mber

o# $ig$ *ro.le incients(;ni,ersity o# Mic$igan 2017)'

9

11

17

2

10

Energy Drink Sales %reak&own

8on,enience Stores

?t$er

Mass Merc$anisers

Dr!g Stores

S!*ermarkets

8l!b Stores/are$o!ses

Figure - Energy Drinks Sales %reak&own

2.0. ey Dri*ers in te !nergy Drinks Market

-$ere are a #e% key elements t$at can be ra%n #rom a &'3'S'-'3' Analysis (in

A**eni "") .rstly t$e energy rink in!stry seems to $a,e been ,ery resistant

to t$e .nancial o%nt!rn o# 200< as its gro%t$ %$ile slo%e $as contin!e

strongly' He% gro%t$ is e*ecte to come #rom t$e BR"8S t$e Mile 3ast 6

atin America in t$e mei!m term' -$ere is gro%ing "entity crises %it$in t$e

in!stry as all t$e com*etitors $a,e merely re*licate Re B!lls etreme s*orts

10




image 6 accent!ate it' -$is is making it increasingly more iOc!lt to create an

ini,i!al bran'

&olitically 6socially t$e in!stry is recei,ing negati,e meia attention !e to t$e$ig$ *ro.le cases %$ere energy rinks $a,e been linke to coronary eat$s' -$is

is res!lting in *olitical *ress!re to limit t$e *laces %$ere t$ese rinks are

a,ailable *lacing s!gar taes to re!ce t$eir cons!m*tion 6 *rotecting yo!nger

cons!mers #rom energy rink a,ertising' As a res!lt o# t$is 6 ne% $ealt$y li,ing

trens amongst cons!mers many energy rinks com*anies $a,e release s!garC

#ree 6 lo%Ccarb o*tions' As a res!lt t$e t%o main en,ironmental *ress!res

a**ear to be Social 6 egal t$e in!stry itsel# #or t$e time being is s!c$ a b!ll

market it ignores t$e c!rrent economic en,ironment' Socially it is a rat$er mie

bag generating bot$ o**ort!nity in eman #or ne% segmente $ealt$ conscio!s

*ro!cts %$ile t$en negati,ely aEecting t$e in!stry %it$ *!blic criticism o# its

eEects on coronary iss!es' -ec$nologically 6 en,ironmentally s*eaking t$ere

seems to be little more *ress!re t$an any ot$er in!stry to be a large ca!se #or

concern'

'. Co()any Analysis of Red Bull

'.1. An Introduction to Red Bull

Re B!ll %as #o!ne in A!stria in t$e miC<0s by Dietric$ Matesc$it5 Dietric$moi.e a #!nctional tonic $e #o!n on $is tra,els in Asia to s!it %estern tastes'

Dietric$ i t$is beca!se $e %ante to create a rink %$ic$ not +!st =!enc$e

t$irst b!t also $a a #!nctional bene.t(Re B!ll 2017)' "t %as %it$ t$e #o!nation

o# Re B!ll t$at Matesc$it5 not only create a com*any %$ic$ no% $as a

t!rno,er J427 million a year b!t a %$ole ne% in!stry %$ic$ is no% %ort$ J7

Billion(Ienit$ "nternational 2012)'Re B!ll is a titan o# t$e energy rink in!stry

one %$ic$ it $as manage to create ominate 6 gro% intoa l!crati,e ne% nic$e

in t$e mineral rinks market rig$t !ner t$e nose o# traitional in!stry *o%ers

s!c$ as &e*si 8o 6 8ocaC8ola'

-$ese com*anies $a,e increasingly targete t$e gro%ing energy rinks market

as t$eir o%n markets $a,e beg!n to ecline (Im!a 2014)' -$e Re B!ll bran

itsel# is increibly #ascinating 6is b!ilt !*on associating itsel# %it$ a myria o#

teams e,ents 6 *eo*le *robably to t$e *oint t$at it is no% more recognise #or

its ,al!es t$an it is #or its *ro!ct'"t is ranke t$e 49 t$ most ,al!able bran in t$e

%orl accoring to(3!robran 2014) a$ea o# ot$er "nternational brans s!c$ as

acebook -esco 6 ">3A'-$is reects t$e eEort Re B!ll *!t into bran b!iling as

it rein,ests 70C40F o# sales in marketing(&ass*ort 2017)' -$is bran $as not

been b!ilt !*on traitional marketing tec$ni=!es b!t by embracing moernmarketing tec$ni=!es s!c$ as Amb!s$ Marketing Digital Marketing 6 closely

11




linke -eam 6 3,ent S*onsors$i* #rom its ,ery beginning' -$is makes Re B!ll a

common to*ic o# isc!ssion by marketers 6 cons!mers alike'

'.2. e Ai(s# 3b4ecti*es % 5alues -$is section attem*ts to !nco,er t$e message t$at Re B!ll con,eys %$en

marketing itsel# to t$e masses or more s*eci.cally to males age 1<C74' As

*re,io!sly =!ote in t$e "n!stry Analysis Dietric$ Matesc$it5 state:

“hat !ed "ull stands #or is that it “gives you wings…$” which

%eans that it provides skills$ abilities$ power etc to achieve

whatever you want to 't is an invitation as well as a reuest to be

active$ per#or%anceoriented$ alert$ and to take challenges hen

you work or study$ do your very best hen you do sports$ go #or

your li%its hen you have #un or *ust rela+$ be aware o# it and

appreciate it” ("e55i 2012)

rom t$is statement %e can ra% t$e #ollo%ing concl!sions Re B!ll associates

itsel# %it$ t$e iea o# Sel#CAct!alisation t$at Kyo! m!st be all yo! can beL 6 by

cons!ming Re B!ll yo! are one ste* closer to t$is' Re B!ll *ositions itsel# as

t$e tool to $el* yo! scale mo!ntains it #or t$is reason t$at t$ey associate

t$emsel,es %it$ *eo*le %$o treat t$ese mo!ntains or ot$er etreme

en,ironments as t$eir *laygro!n or ben t$e en,ironment to t$eir %ill' -$e

com*any slogan rein#orces t$is Re B!ll Kgi,es yo! (t$e) %ingsL 6 so all yo!$a,e to o is y' "t is clear #orm t$is t$at Re B!ll ,al!es are base on:

• A%areness

• Min ?,er Matter

• Risk

• Sel#CAct!alisation

• Sel#CMoti,ation

• S!ccess

'.'. Co()any Milestones

As yo! can see #rom t$e belo% milestones %$ic$ %ere taken #rom t$e oOcial

site(Re B!ll 2014) t$ere is an increasing #oc!s on b!iling t$e bran t$ro!g$

more mainstream s*orts s!c$ as 1 6 #ootball as o**ose to t$e etreme s*orts

Re B!ll $as traitionally associate %it$ in t$e *ast' -$is $ig$lig$ts a gro%ing

nee to broaen t$e a**eal o# t$e *ro!ct !e to t$e n!mber o# com*etitors'

Also noticeable is t$e increasing !se o# s!ccess to mark milestones in t$e most

recent milestones %$ere in t$e *ast t$e com*any milestones %ere more #oc!se

on *artici*ation or e,ent creation'

12




ear

1)*+ Re B!ll %as o!ne

1)**

-$e com*any began its association %it$ etreme s*orts $oling an

etreme s*orts marat$on relay race %$ic$ combine mo!ntain

r!nning *aragliing kayaking 6 mo!ntain biking

1)*)Re B!ll began associating itsel# %it$ at$letes t$e .rst being 1 ri,er

Ger$ar Berger

1))#

-$e %iely kno%n Re B!ll “gives you wings” cartoons begin t$e .rst

#eat!re eonaro a @inci creating t$e K%asterpiece” kno%n as Re

B!ll

Re B!ll began its l!gtag e,ent %$ic$ in,ol,es e,eryay *eo*le

esigning $omemae gliers %$ic$ are t$en emonstrate to t$e

*!blic 6 +!ge on creati,ity s$o%mans$i* 6 t$e istance o%n

1)),

-$is %as t$e .rst year t$at Re B!ll began to s*onsor international

at$letes in t$e #orm o# to* %ins!r#ers B+orn D!nkerbeck 6 RobbyHais$

Re B!ll began to air its a,ertisements o!tsie A!stria

1))Re B!ll *!rc$ase a ma+ority s$are in t$e 1 Sa!ber team 6 began a

10 year *artners$i*

1)))eli Ba!mgartner began $is long relations$i* %it$ Re B!ll by

com*leting t$e $ig$est recore base +!m* oE &etronas to%er

#... Re B!ll is la!nc$e in t$e MileC3ast

#..1 -$e Re B!ll P!nior team %as establis$e %$ic$ $as since *ro!ce%orl c$am*ions s!c$ as Sebastian @ettel

#.. -$e Re B!ll Air Races began

#..Re B!ll Racing %as establis$e a#ter Re B!ll *!rc$ase t$e Pag!ar 1

team

#../ Re B!ll Hascar establis$e

#..+ 38 Re B!ll Sal5b!rg eclare ockey eag!e c$am*ions

8 Re B!ll Sal5b!rg %in t$e A!strian ootball eag!e

Re B!ll Recors establis$e#.1. Re B!ll He% Qork 8 mo,e into t$eir ne% Stai!m t$e Re B!ll Arena

Re B!ll Racing ri,er Sebastian @ettel %ins $is .rst /orl

8$am*ions$i*

#.1#

eli Ba!mgartner +!m*s #orm t$e ege o# s*ace breaking m!lti*le

recors incl!ing t$e .rst s!*ersonic #reeC#all t$e longest e,er #reeC#all

6 t$e $ig$est e,er +!m*

Sebastian oeb %ins $is 9t$ consec!ti,e /R8

#.1 Sebastian @ettel 6 Re B!ll Racing %in t$eir 4t$ consec!ti,e titles

8yril Des*res %ins $is t$ Dakar RallyFigure , - 0omany !ilestones

17




'.+. Red Bulls &roduct Range

'.+.1.&roducts

Re B!ll $as a ,ery limite *ro!ct range es*ecially in relation to its com*etitors' -$is is a ,ery serio!s *roblem !e to t$e #alling market s$are o# original a,o!r

energy rinks in t$e market' As a res!lt Re B!ll release a limite eition range

in t$e ;'S t$is com*rises o# t$ree ne% a,o!rs(&ass*ort 2017):

• Re&2 8ranberry

• Silver: ime

• %lue2Bl!eberry

-$ese ne% *ro!cts are still too ne% to be assesse #or s!ccess t$o!g$ ne%

*ro!ct la!nc$es #or Re B!ll $a,e not %ent %ell in t$e *ast s!c$ as t$e Re

B!ll 8ola bran %$ic$ %as iscontin!e'Re B!lls latest *ro!ct Re B!ll Iero8alories %as .rst la!nc$e on to t$e market in rance in 2017 an is set to

reac$ t$e ;'> market in s!mmer 2014(Morton 2014)' -$is *ro!ct is aime at

t$e more $ealt$ conscio!s cons!mers by oEering an energy rink %it$ no

calories or s!gar' -$is is Re B!lls secon $ealt$ conscio!s ,ersion a#ter t$e

la!nc$ o# t$eir s!gar #ree *ro!ct a ecae ago' -$is ne% *ro!ct range $el*s

Re B!ll com*ete %it$ main ri,als Monster %$o also $a,e intro!ce $ealt$

conscio!s o*tions s!c$ as t$eir “locarb” *ro!ct'

Re B!ll traitionally $a,e !se a slimCline 20 ml can si5e' o%e,er t$ey $a,e

recentlyintro!ce a ne% s!*ersi5e 47ml can in an attem*t to raise *er ca*ita

cons!m*tion %$ic$ is lo% com*are to ot$er caEeine rinks t$e intro!ction

also re*resents irect com*etition to its ri,als Monster 3nergy

%$osestanarscanis 00 ml(Anon' 2014)' Re B!ll $a,e come !ner criticism

#or t$e ,ol!me o# s!gar containe %it$in t$ese s!*ersi5e cans as t$ey contain

an ecessi,e 17 teas*oons in eac$ can(/ebb 2012)'

'.+.2.&roduct &ositioning

Re B!lls is consiere t$e *remi!m *ro!ct on t$e energy rinks market 6 is

*rice accoringly' -$e com*any !ses t$e *ricing to a *syc$ological eEect %$ic$

creates a belie# in cons!mers t$at t$e *ro!ct is s!*erior to its

com*etitors(MagloE 2014)' "t is #or t$is reason *artly es*ite com*arable sales

bet%een Monster 3nergy 6 Re B!ll Re B!ll $as #ar s!*erior re,en!es' -$is

*ositioning $as been s!**orte !e to Re B!lls irst Mo,er A,antage(MA)

being t$e #o!ner o# t$e market Re B!ll $as b!ilt !* t$ebran loyalty to

maintain t$is *ricing e,en in t$e #ace o# #ar c$ea*er com*etition an eam*le o#

%$ic$ %e $ig$lig$te earlier is 8ocaC8olas B!rn bran %$ic$ is 40F c$ea*er'

14




'.+.'.arget Market

Re B!ll targets an 1<C74 year ol male segment o# t$e market (Ackerman

2017) t$ey o attem*t to reac$ t$is market t$ro!g$ t$e ,ario!s etreme s*orts

associations t$e Re B!ll Air Race 8liE Di,ing etc' o%e,er t$is market is

increibly sat!rate as all o# t$e ma+or brans target t$is segment !sing t$e

same a**roac$' As a res!lts %e see Re B!ll more so t$an t$e ot$er bransattem*ting to broaen its a**eal' -$ey attem*t to o t$is in a n!mber o# %ays

.rstly t$e yo!nger generation are more $ealt$ conscio!s 6 are concerne %it$

t$e $ealt$ eEects o# energy rinks t$an t$e *re,io!s generation(RacliEe n'')'

Seconly t$ere is lo% cons!m*tion o# energy rinks amongst %omen many o#

%$om are more $ealt$ conscio!s t$an men'

-$is $as seen t$e intro!ction o# s!garC#ree 6 5ero calorie eitions t$is

re*resents a ra*ily gro%ing s$are o# t$e market' "t $as also seen an increase

eEort to enorse role moels to get aro!n legislation to reac$ minors be#ore

s*ening $abits are set t$o!g$ t$e com*any enies t$is its a constantly le,ie

criticism(Montag!eCPones 2011)' "n an eEort to strengt$en its a**eal to %omen

Re B!ll $as associate itsel# %it$ a n!mber o# $ig$ *ro.le s*orts*eo*le s!c$ as

*ro#essional gol#er Aleis -$om*son 6 Skier insey @onn'

'.+.+.Co()etitors6Substitutes

Re B!lls largest com*etitor $as been state t$ro!g$o!t t$is oc!ment many

times Monster 3nergy 6 Re B!ll re*resent t$e lion s$are o# t$e energy rinksmarket %it$ a**roimately <0F market s$are(8aEeine "n#ormer 2017)' Monster

3nergy $as a m!c$ more i,ersi.e *ro!ct line t$an Re B!ll %it$ a larger

,ariety o# a,o!rs' Monster also oEer a m!c$ larger can #or t$e same *rice as

Re B!ll in an attem*t to re*resent a better ,al!e' /$ile Re b!ll is trying to

%ien its sco*e to attract ne% c!stomers Monster 3nergy $o%e,er $as an

etremely narro% #oc!s aggressi,ely targeting Re B!lls traitional market o# 1<C

74 year ol men t$is is reecte in Monster 3nergys #ar more masc!line image'

-$is strategy to t$eir creit $as %orke increibly %ell as it only took years #or

Monster 3nergy to o,ertake Re B!ll as t$e market leaer "n t$e ;'S'(Bo!ckley

2014)'

'.+.-.Marketing Metods

As %e,e state Re B!ll $as an inno,ati,e marketing strategy %$ic$ oes $a,e

elements o# traitional (*assi,e) marketing s!c$ as *rint 6 tele,ision

a,ertisements t$is is !s!ally manage by Re B!ll o!se %$ic$ amongst ot$er

res*onsibilities "ss!es t$e mont$ly Re B!lletin maga5ine' o%e,er t$e ma+ority

o# a,ertising in,ol,es moern (acti,e) marketing tec$ni=!es s!c$ as:

•

Digital Marketingo Blogs

1




o @iral A,ertisementso Social Meia

• -eam ?%ners$i*

• 3,ent ?rganisation

• Amb!s$ Marketing

Re B!ll is a *rime eam*le o# Amb!s$ Marketing' Amb!s$ marketing in,ol,es

t$e in,estment o# time energy kno%lege 6 creati,ity rat$er t$an money to

ac$ie,e its aims(3ntre*rene!r 2017)' -$is is somet$ing Re B!ll $a,e one

#antastically in t$e *ast =!ite early on t$ey aime to create bran b!55 on t$e

cl!b scene t$ey i t$is by making s!re local DPs %ere seen %it$ t$e *ro!ct 6

as a res!lt Re B!ll became=!ite *o*!lar amongst cl!bbers t$is tec$ni=!e is

no% kno%n as “seeding” (DS 2017)'-$e com*any is ,ery acti,e social meia6

stri,es to !se it to its #!ll *otentialin #act it is so acti,e on t%itter t$at 49'7F o#

all energy rink relate t%eets mention Re B!ll (He%s Re*!tation 2012)'

/$ere Re B!ll really ecels is in team o%ners$i* 6 e,ent organisation' B!t %$y

are %e !sing t$e terms team o%ners$i* 6 e,ent organisation instea o#

s*onsors$i* beca!se Re B!ll oesnt o *lain s*onsors$i* ,ery o#ten'

-raitionally s*onsors %ill *ay to $a,e t$eir logo associate %it$ a team to eri,e

marketing ,al!e by association e'g' Aias s*onsoring t$e ?lym*ics t$is

$o%e,er can be !nermine by com*etitors amb!s$ marketing cam*aigns s!c$

as Hike i in t$e 199 ?lym*ics' "n Re B!lls case t$ey integrate t$e team or

e,ent into t$e com*any an intrinsically link t$eir ,al!es 6 braning so tig$tly

t$ey cannot be amb!s$e #or eam*le t$e Re B!ll Racing 1 is %$olly o%neby Re B!ll it is calle Re B!ll in s$ort an t$e car bares its colo!rs 6 logo' So

i# Monster 3nergy %ant to associate t$emsel,es %it$ t$e team it is near

im*ossible beca!se t$e braning is so ienti.able %it$ t$e team'

-$is tren contin!es to t$eir ot$er teams 38 Re B!ll Sal5b!rg He% Qork Re

B!lls 8 etc' 8om*etitors cannot e,en amb!s$ t$e stai!m as t$ey are

generally Rename t$e Re B!ll Arena or some ,ariation 6 ecke o!t in t$e Re

B!ll logo 6 colo!rs' -$e interesting as*ect o# t$ese ,ent!res is t$at %$ile in t$e

s$ort term Re B!ll makes a signi.cant in,estment t$ey also r!n t$ese teamslike a b!siness 6 t!rn o,er a *ro.t relati,ely =!ickly' -$e same goes #or Re B!ll

e,ents yo! see t$e same reCocc!rring t$eme %it$ Re B!ll l!gtag 8liE Di,ing

etc' -$ese e,ents are all intrinsically linke to t$e bran 6 *re,ent amb!s$ing'

Most o# t$ese e,ents are reCocc!rring 6 t$ere#ore enable ann!al bran

interaction %it$ *otential c!stomers'

1




+. Conclusion

+.1. Industry Analysis

"n concl!sion t$e 3nergy Drink in!stry is clearly a *ro.table one' -$e s!ccess o# Re B!ll $as !ltimately attracte many en,io!s eyes %$ic$ $a,e no% entere

t$e market looking #or t$eir s$are' 3s*ecially t$ose %$o $a,e mae signi.cant

*ro.ts #rom t$e no% eclining so#t rink in!stry %$o are looking to com*ensate

#or loses' -$e le,el o# com*etition $as increase risk #or t$ose in t$e market %it$

t$e largest s$are as t$ey $a,e t$e most to lose t$is is !e to t$e $ig$

s!bstit!tability o# *ro!cts a,ailable'

-$e market is #re=!ently becoming more 6 more segmente in terms o# a,o!rs

,ario!s s!garC#ree6 lo%Ccarb o*tions' 8om*anies are .ning it iOc!lt to createan ini,i!al image t$at can se*arate t$em #rom t$eir com*etitors' -$is is likely

to c$ange so com*anies can *osition t$emsel,es to target gro!*s s!c$ as

%omen %$o c!rrently $a,e a ,ery lo% cons!m*tion rates in com*arison to men'

?,erall t$e in!stry s$o!l contin!e to gro% sales !e to ,ery $ig$ sales gro%t$

#rom emerging economies'

+.2. Co()any Analysis

"n being t$e .rst mo,er Re B!ll $as a istinct a,antage o,er t$e years it $ase,elo*e strong bran recognition 6 loyalty' "t is $o%e,er becoming a ,ictim o#

its o%n s!ccess' -$e *ro!ct is *ositione at a *remi!m *rice 6 is easily

s!bstit!table as a res!lt t$ere is a gro%ing n!mber o# com*etitors entering t$e

market 6 !nerc!tting Re B!ll' -$is is leaing to a slo% erosion o# its market

s$are es*ecially #rom Monster 3nergy %$o is no% t$e market leaer ;'S' "n t$e

*ast t$e Re B!ll braning $as al%ays been istincti,e !e to its association %it$

etreme s*orts s!c$ as sno%boaring 6motocross it is $o%e,er losing t$is

istincti,e image as all t$e ne% entrants are em!lating t$is a**roac$'

/$ereas in t$e *ast Re B!lls a**eal $as al%ays been to t$e 1<C74 male

segment it no% $as to look else%$ere !e to t$e le,el o# com*etition' -$is is

%$ere Re B!ll can car,e o!t a ne% com*etiti,e a,antage' "n an eEort to steal

a slice o# Re B!lls market s$are com*etitors are entering %it$ increasingly more

masc!line etreme images' As a res!lt Re B!lls image is no% =!ite “so#t” in

com*arison to its com*etitors' As a res!lt o# its com*etitors narro% #oc!s Re

B!ll $as t$e most *otential to %ien its #oc!s o!tsie o# t$is segment %$ile still

being ca*able o# com*eting in its c!rrent market'

1




Bibliogra)yAckerman P' 2017' 0ew 1ork Ti%es ?nline

A,ailable at: $tt*:%%%'nytimes'com2017012s*ortsiceCcrossCblensC$ockeyC

gearCanC$ig$Cs*eeCatCreCb!llCcras$eCiceC%orlCc$am*ions$i*'$tmlAccesse 12 ?ctober 2017'

Anon' 2014' ?nline

A,ailable at: $tt*:energyrink'reb!ll'comreCb!llCeitions

Bo!ckley B' 2014' "everage 2aily ?nline

A,ailable at: $tt*:%%%'be,erageaily'comMan!#act!rersQ!**iesCrinkCReC

B!llCanCCo!rC3nergyCsC+!stCtreaingC%aterCMonsterC83?Cs!ggests

Accesse 1< A*ril 2014'

8aEeine "n#ormer 2017' 3afeine 'n#or%er4 Top /5 6nergy 2rinks ?nlineA,ailable at: $tt*:%%%'caEeinein#ormer'comt$eC1Cto*CenergyCrinkCbrans


8anaean 2017' 7!0ewswire4 Global energy 2rinks !eport -./8 ?nline

A,ailable at: $tt*:%%%'*rne%s%ire'comne%sCreleasesglobalCenergyCrinksC

re*ortC2017C242271471'$tml

Accesse 1 A*ril 2017'

3ntre*rene!r 2017' 6ntrepreneur ?nline

A,ailable at: $tt*:%%%'entre*rene!r'comencyclo*eiag!errillaCmarketing

Accesse 21 ?ctober 2017'

3!robran 2014' !anking the "rands ?nline

A,ailable at: $tt*:%%%'rankingt$ebrans'com-$eCBranCRankings'as*T

ranking"DU2216yearU91


DS 2017' 92: ?nline

A,ailable at:

$tt*:#s'o!*'com%%%'o!*'com*#179<0199941c$a*ter1'*#


"e55i -' 2012' ?nline

A,ailable at: $tt*:%%%'#astcocreate'com1990reCb!llCceoCietric$C

matesc$it5ConCbranCasCmeiaCcom*any


>ing M' 2017' 1ahoo4 9inance ;< ?nline

A,ailable at: $tt*s:!k'.nance'ya$oo'comne%sglobalCenergyCrinksCin!stryC

000000042'$tml


1<




MagloE ' 2014' :%all "usiness ?nline

A,ailable at: $tt*:smallb!siness'c$ron'com*remi!mC*ricingCstrategyC110'$tml


MerrieamC/ebster Dictionary 2014' =erria%ebster 2ictionary4 6nergy 2rink

?nlineA,ailable at: $tt*:%%%'merriamC%ebster'comictionaryenergyF20rink


Montag!eCPones G' 2011' "everage 2aily ?nline

A,ailable at: $tt*:%%%'be,erageaily'comReg!lationCSa#etyReCB!llCeniesC

c$ilCmarketingCclaimsCinCne%Cst!y


Morton A' 2014' ?nline

A,ailable at: $tt*:%%%'+!stCrinks'comne%sreCb!llCasCreCb!llC5eroC

caloriesCtoC!kC*ort#olioi112'as*

Hestle M' 2017' 9ood 7olitics ?nline

A,ailable at: $tt*:%%%'#oo*olitics'comtagenergyCrinks


He%s Re*!tation 2012' !eputation=etrics ?nline

A,ailable at: $tt*:re*!tationCmetrics'org2012102monsterCenergyCrinkC#aC

*robeCre*!tationCcrisisCmeas!ringCt$eCcontagionCeEectCtoCto*Co#CminCbranCreC

b!ll


&ass*ort 2017' 6uro%onitor ?nline

A,ailable at: $tt*:%%%'e!romonitor'commeialibrary&DReB!llC8om*anyC

&ro.leCS/?-CAnalysis'*#


&orter M' 3' 19<' 3o%petitive >dvantage 1st e' He% Qork: ree &ress'

&R He%s%ire 2017' 7!0ewswire4 0ew !eleases ?nline

A,ailable at: $tt*:%%%'*rne%s%ire'comne%sCreleasesenergyCrinksCanCs$otsC

!sCmarketCtrensC1909191'$tml


RacliEe S' n'' =ens 9itness4 0utrition ?nline

A,ailable at: $tt*:%%%'mens.tness'comn!trition%$atCtoCrinkenergyCrinksC

$eartC$ealt$


Re B!ll 2014' !ed "ull4 ?istory ?nline

A,ailable at: $tt*:energyrink'reb!ll'comreCb!llC

$istoryV,ieo277<<<12001


19




Re B!ll 2017' 3o%pany4 !ed "ull ?nline

A,ailable at: $tt*:energyrink'reb!ll'comcom*any

Accesse ?ctober 2017'

Re B!ll 2014' 6nergy 2rink4 !ed "ull ?nline

A,ailable at: $tt*:energyrink'reb!ll'comreCb!llCenergyCrinkAccesse 20 A*ril 2014'

Smirke R' 2017' "illboard4 0ews ?nline

A,ailable at: $tt*:%%%'billboar'combi5articlesne%sigitalCanC

mobile14991i#*iCigitalCm!sicCre*ortC2017CglobalCrecoreCm!sic


-re.s 2014' 9orbes4 :peculations ?nline

A,ailable at: $tt*:%%%'#orbes'comsitesgreats*ec!lations20140717cocaC

colaCinCbra5ilCglobalCe,entsCanCenergyCrinksCco!lCri,eCgro%t$C*artC2


;ni,ersity o# Mic$igan 2017' :cience 2aily ?nline

A,ailable at: $tt*:%%%'scienceaily'comreleases201712171202121<'$tm


/ebb S' 2012' ?nline

A,ailable at: $tt*:%%%'ailymail'co'!kne%sarticleC2212<0ReCB!llCgi,esC

%ingsCS!*erCsi5eCenergyCrinkC'$tml

Ienit$ "nternational 2012' @enith 'nternational4 7ress !elease ?nline


Im!a H' 2014' >dvertising >ge4 >rticles ?nline

A,ailable at: $tt*:aage'comarticlecmoCstrategyso#tCrinkCsalesCeclineC

accelerates292409


20




A))endices

A))endi7 I 8 &.!.S..!., of te !nergy Drinks Market

&olitical

&olitically t$e energy rinks in!stry is!ner scr!tiny !e to incients %$ere Re

B!ll or ot$er energy rink cons!m*tion $as le to eat$s !s!ally in con+!nction

%it$ alco$ol cons!m*tion' /$ile t$ese eat$s are #e% 6 #ar bet%een t$ey $a,e

still recei,e signi.cant meia attention' By etension t$e s$ock o# rare cases

s!c$ as t$ese $a,e ca!se many legislators to react %$o are no% beginning to

look at restricting its sale (Hestle 2017)' As most o# t$e *olitical matters t$at

aEect Re B!ll are base on restricti,e legislation %e s$all talk abo!t t$is in t$e

egal section'

!cono(ic

3conomically t$e energy rinks in!stry $as contin!e e*aning at a o!ble

.g!re rate #or t$e last ecae t$is gro%t$ $as largely been !naEecte by t$e

o%nt!rn 6 $as o!t*er#orme ot$er com*arable in!stries' -$is is =!ite a

testament to t$e gro%ing *o*!larity o# energy rinks es*ecially as t$ey ten to

be #ar more e*ensi,e t$an s!bstit!tes s!c$ as coEee 6 mineral' -$e interesting

t$ing is yo! %o!l e*ect t$e o**osite to be tr!e !e to eclining *ersonal

e*enit!re %orl%ie !e to t$e 200< .nancial cras$' -$e #act is %orl%ie

.g!res are masking t$e slo%ing o%n o# sales in mat!re economies %$ic$ areno% belo% t$e 10F mark t$o!g$ t$ese gro%t$ .g!res are still =!ite $ig$ t$e

tr!e gro%t$ no% lies in t$e BR"8S(es*ecially in So!t$ A#rica)6 t$e MileCeast'

Social

3nergy rinks com*anies are ,ery acti,e on social meia sites s!c$ as -%itter 6

acebook Re B!ll in *artic!lar as it is mentione in nearly $al# o# all energy

rink relate t%eets' Socially t$e energy rinks brans are seen as cool !e to

t$e etreme s*orts image 6team s*onsors$i*s' -$is cool image $as $el*e

com*anies s!c$ as Re B!ll become =!ite *o*!lar %it$ cl!bbers st!ents 6ri,ers' 3nergy rinks $o%e,er recei,e a lot o# criticism ,ia ne% igital meia

s!c$ as blogs es*ecially in relation to eat$s t$at %ere ca!se by ecessi,e

energy rink cons!m*tion in combination %it$ s*irits' 8ons!m*tion o# alco$ol

toget$er %it$ energy rinks is =!ite *o*!lar amongst st!ents 6 cl!bbers !e to

t$e energy boost as a res!lt t$is $as a o!ble ege s%or #or energy rinks

com*anies' 3nergy rinks com*anies are also being s%e*t !* in t$e general

%ellness tren %$ic$ $as eiste #or t$e *ast #e% years 6 $as res!lte in t$e

release o# lo% carb 6 s!gar #ree o*tions'

21




ecnological

"n terms o# tec$nological #orces eEecting t$e en,ironment t$ese are mainly

limite to im*ro,e man!#act!ring 6 trans*ort ca*ability' "nno,ation in t$is

in!stry tens to come #rom *ro!ct segmentation' -$e most im*ortant

-ec$nological #actor in t$e 3nergy Drinks "n!stry is t$e "nternet' -$is in,ention

$as allo%e *eo*le across t$e %orl interact %it$ t$e brans #rom t$e com#ort o# t$eir $ome %$et$er it is ,iral a,ertisements to create b!55 s!c$ as t$e Re B!ll

Strat!s e,ent %$ic$ $a t$e largest li,e a!ience on Qo!-!be e,er or merely

interacting %it$ t$eir social meia *age'

!n*iron(ental

/$ile t$is co!l $a,e come !ner t$e social section %e ecie to kee* t$is

se*arate to $ig$lig$t its im*ortance to t$e moern cons!mer' /$ile t$ere is

certain *oll!tions ca!se by t$e man!#act!ring o# energy rinks t$e "n!stry is

,ery #oc!se on *ackage recycling' -$e most common #orm o# *ackaging is t$e

al!mini!m can %$ic$ is 100F recyclable' Some o# t$e c$ea*est brans o !se*lastic *ackaging #or t$eir larger *ro!cts s!c$ as 1 litre bottles b!t t$ese again

are recyclable 6 are a relati,ely small *ercentage o# sales'

,egal

egally %e are seeing increasing meas!res being taken against all !n$ealt$y

*ro!cts s!c$ as so#t rinks es*ecially in relation to a,ertising at c$ilren'

3nergy rinks in *artic!lar are taking a lot o# ak #rom *olitical establis$ments

%$ic$ are looking to limit t$eir *oint o# sale' -$is is o%n to t%o reasons rising

obesity amongst c$ilren 6 a!lts 6 also t$e $ig$ *ro.le eat$s linke %it$energy rink cons!m*tion' /$ile not illegal reg!lators are looking at ieas s!c$

as s!gar taes to $el* re!ce cons!m*tion o# t$ese *ro!cts' -$ere is also

restrictions being *lace on a,ertising at c$ilren %$o are a *rime target #or

com*anies looking to become recognise by cons!mers be#ore s*ening $abits

are set'

A))endi7 II 8 S.9.3.

Strengts

Market Leader

As market leaer Re B!ll $as a strong bran image 6 t$e %or Re B!ll $as

become interc$angeable %it$ energy rinks in some co!ntries m!c$ like oo,er

i %it$ @ac!!m 8leaners' -$is $ig$lig$ts $o% *o%er#!l t$e bran is'

Broad Market Presence

Re B!ll as *re,io!sly state is a,ailable in o,er 1 co!ntries %orl%ie t$is

%ill *ro,ie stable gro%t$ into t$e #!t!re e,en as c!rrent markets mat!re'

22




First Mover Advantage

As t$e .rst entrant into t$e market Re B!ll $as b!ilt !* ,ery strong bran

loyalty as a res!lt'

9eaknesses

Limited Range

Re B!ll $as mo,e to recti#y t$is b!y releasing its limite Re Sil,er 6 Bl!e

a,o!rs in 2017 b!t its s!ccess remains to be seen i# it *er#orms in relation to its

com*etitors m!ltiCa,o!re lines'

Social Stigma

As Re B!ll as a %or is !se interc$angeably %it$ energy rinks %$en negati,e

re*orts arise in relation to energy rinks Re B!ll itsel# tens to take most o# t$emeia ak rat$er t$an com*etitors'

3))ortunities

Emerging Markets

Re B!lls %ie market *resence re*resents ma+or o**ort!nities in gro%ing

economies s!c$ as t$e BR"8S b!t also regionally s!c$ as t$e MileC3ast 6 atin

America %$ere sales gro%t$ is ece*tionally $ig$ es*ite its *remi!m *ricing in

nonC$ig$Cincome co!ntries

New Production Facilities

Re B!ll $as *ositione ne% man!#act!ring #acilities across t$e %orl to meet

regional eman %it$ t$is in,estment in *lace Re B!ll clearly $as an a,antage

o,er its com*etitors'

Less Masculine Image

As %e talke abo!t in t$e main boy o# t$e re*ort Re B!ll $as a some%$at lessmasc!line image t$an its com*etitors t$is may enable Re B!ll to make in%ar

*rogress into t$e #emale market segment %$ere energy rinks $a,e traitionally

not #are %ell %it$ relati,ely little com*etition'

Low Consumption Rates

Re B!ll is most #amo!s #or its slimCline can b!t t$ere is a gro%ing tren to%ars

larger cans to take a,antage o# t$e lo% *er ca*ita cons!m*tion rate o# energy

rink cons!mers ,ers!s t$at o# so#t rinks or coEee' -$is re*resents a strong

*otential area o# gro%t$ as !sers are alreay #amiliar %it$ t$e bran'

27




reats

Competition

As State t$ere is ma+or gro%t$ *otential in t$e BR"8S t$o!g$ Re B!lls

*remi!m *ro!ct %ill #ace stiE com*etition in t$ese ne% markets #rom lo% costbrans s!c$ as 8ocaC8olas B!rn' 3s*ecially as it may !tilise 8ocaC8olas eisting

istrib!tion net%ork'

Large marketing costs

As %e isc!sse earlier Re B!ll rein,ests 70C40F o# its sales back into

marketing t$is is an etremely large *ercentage o# Re,en!e' B!t t$is may come

o%n as it enters %eaker economies as ig$ ?38D economies !s!ally $a,e #ar

$ig$er marketing costs t$an t$ose o!tsie' "t also emonstrates t$e le,el o#

com*etition #or bran recognition to %arrant s!c$ e*enit!re'

Image Replication

As %e isc!sse earlier all ne% entrants ten to enter t$e energy rinks market

%it$ a more eaggerate Re B!ll etreme s*orts image t$is in t!rn is making it

increasingly $arer to isting!is$ bet%een t$e ,ario!s bran messages'