Red Bull Case Study

Unit VII – Red Bull Case Study

Limor Elazar

Southern Columbia University

Red Bull is available over 167 countries and 50bn cans have been consumed so far (Finweek, 2015). The energy drink is used globally by athletes, students and general population for an energy boost.  The energy drink market is one of the fastest growing markets in the non-alcoholic beverage industry (Caps & Hanselman 2012). Red Bull was the first energy drink to be developed and distributed with its origin of Austria (Euromonitor, 2014).

Question #1.  What are Red Bull’s greatest strengths and risks as more companies enter the energy drink category and gain market share?

Strengths Red Bull continues to be the lead energy drink in today’s market. It has a built a strong brand image globally.  It has a wide distribution center to reach many geographic locations to ensure consistent sales and growth opportunities.  It continues to expand

Risks Red Bull offers a very limited number of product selection. It has a narrow selection of flavors and portions, competition is rising with new flavors offered and product selection. The main competitor is Monster.  Red bull has a high level of caffeine and suffers from scrutiny by health regulations.  Monster contains natural ingredients which at times is more suitable for certain type of consumers with health issues.  Red Bulls success has caught attention from other manufactures such as Pepsi and Coca Cola.  

References

Capps, Jr, O., & Hanselman, R.D. (2012). A Pilot Study of the Market for Energy Drinks. Journal of Food Distribution Research, 43(3), 15-29.

Euromonitor (2014). Red Bull GMBH in Soft Drinks (world). Brussels: Euromonitor

The Red Bull Revolution. (2015). Finweek, 40.