where stands Red Bull

First among the competitors

Q1.What are Red Bull’s greatest strength and risks as more companies(like Coca-Cola, Pepsi, and Monster) enter the energy drink

category and gain market share?

•Attributed to the company’s ability to highlight its strengths and minimizes its weakness. Understanding these strengths and weaknesses are important for Red Bull to maintain its current position as the market leader.

•Strengths include its marketing strategy and its alliances with distributors.•Marketing strategy, “Anti Branding”& “Anti Marketing”

•Alignment with distributors.•Providing free samples in efforts to generate additional buzz about their products.

Q2.Should Red Bull do more traditional advertising? Why or why not?

•Using “buzz-marketing” or word of mouth advertising, in addition to their sponsored events, has helped Red Bull become almost a cult favorite among consumers.•Red bull’s sponsored events are extreme and expensive, but they also bring brand awareness, target their generation Y.•Recommended that they maintain their current non-traditional marketing strategies.•Its target market and its marketing strategies are all consistent with this brand image.

Q3. Discuss the effectiveness of Red Bull’s sponsorships, for example, Bull Stratosphere. Is this a good use of Red Bull’s marketing budget?

Where should the company draw the line?

•Red Bull’s sponsorships span a wide variety of extreme sports, athletes, and artists. The company is involved in everything from motor sports to dancing to extreme sailing. Attracted hundreds of thousands of current and potential consumers.•Red Bull has introduced its current marketing around and about the product, but it is never directly correlated to the drink itself.•Marketing strategies have proved effective to date, it’s crucial that Red Bull continually re-evaluate them to ensure that they remain effective.•Red Bull needs to draw the line when their current marketing techniques become ineffective. •Red Bull should continuously monitor marketing trends and the effectiveness of its chosen strategies so it can quickly change when necessary.

SUMMERY

DISCLAIMERCreated by Rohit Anand, NIT Jamshedur, during a marketing internship by Prof. Sameer Mathur,IIM Lucknow.