Swot Red Bull

STRENGTH Leadership position The company redness crap is considered like the leader of the energy drinks market place in the world with 70% of market share in 2012. Marketing strategy * A lot of sports events, promotions and campaigns (like roadway marketing) * Sponsorship (F1 Red cocksucker Team, Felix Baumgartner, Shaun White) * Original communication strategy and efficient (http//www. redbull. fr/cs/Satellite/fr_FR/Video/Le-nouveau-clip-du-Monde-de-Red-Bull-au-cinema-021243076490242) -Innovation * Innovating recipe of energy drink containing taurine Loyal customers * The creation of an universe encouraged customer loyalty Strong Brand identity and trendy brand Strong financial position * turnover rate of 3,27 Billion of Euros. Single ware Weaknesses Average price Lack of product innovation Nowadays, there are a lot of competitors in the market have by famous brands like Coca-Cola (Burn) or Pepsi (Dark Dog) Lack of patent on Red Bulls recipe means anyone can copy it last logistics costs Profits linked to exchange rates High sunk cost (marketing, Advertising) Opportunities Red bull has opportunities to expanding the target markets as well as product lines extension * Extension of product line can help to retain market share Increase market share with increased opportunities in emerge markets through being trendy * Sunk cost can provide future growth in emerging markets due to a trendy sign Consumer recognition through sponsorship of sports events so can expand product with a loyal customer base * Overcome higher prices than competitors with product expansion and diversification New ventures like partnership with Facebook Product and services expansion International manufacturing opportunities * Manufacturing Internationally can decrease exchange rate risks Keep substantial market share with international operations * High logistics costs can be decreased with decentralized production in emerging markets Threats Competition * Major competitors such as Coca Cola (burn) and Pepsi (dark dog) are continually seeking to regain market share of Red Bull Negative publicity * Various media describe that Red Bull is harmful for ones health * The caffeine levels in Red Bull can be dangerous if consumed by children/teenagers * Red Bull has gone to the extremes of seeking scientific proof that its product is safe for consumption (cost of scientific research) Inability to move forward with the product * The product could be in danger of becoming stale by shunning conventional advertising methods * Large investment in extreme sport events the question is what depart be their next step to keep on being innovating and attracting Ability to gain new customers and retain current customer loyalty * Red Bulls target market currently aimed at youngsters so this multiplication will continue to drink energy drink? * the next upcoming generation accept this product ?