Red Bull Case Study

Red Bull

Red Bull's successful market strategy and process of going to market has revolved around the company's ability to think outside the competitive box by focusing on customers through innovative branding, sales and distribution strategy. Red Bull has consistently challenged the traditional way of going to market and created new ways; continuously evolving the brand positioning; as well as understanding and managing its key relationships, building a sustainable competitive advantage in the energy drink market.

Their strategy identifies who the company will serve, where the firm will do business, what needs the firm will meet, how the company will serve the customers and needs, as well as when the firm will act. In order to better identify their overall marketing strategy, I have identified Red Bull's competitive advantages, market segmentation, target market, and positioning. Subsequently, I have conducted a SWOT and TOWS analysis in order to define and critically analyze Red Bull's strengths and weaknesses, and come to a conclusion about their strategy and its execution.

Competitive Advantages

Red Bull's competitive advantages are those aspects that deliver superior customer value more effectively and efficiently through a unique bundle of capabilities and resources that their competitors don't have. One of Red Bull's competitive advantages is their ability to differentiate their product through a distinctive package of benefits for which the customer is willing to pay a price premium. Red Bull has done this by their creation of the functional energy drink category and unique drink ingredients. This helps to display the exceptional product quality and emphasize that their beverage is meant to be consumed for energy, not enjoyment purposes. The Red Bull product also provides a unique "medicinal" taste that is