Swot Redbull Essay

973 Words Apr 21st, 2013 4 Pages
SWOT
Strengths
Industry leadership
Throughout the world, Red bull is the leader in the energy drinks market with annual sales of billion dollars. According to the statistics, in year 2003 red bull achieved 80% brand share of the energy drinks in market. Since year 2000 (compare to 1990s), it has been a clear shakeout, and fewer new brands are launching new products to the market. Furthermore many products offered by leading drink manufacturers could not compete with Red bull in the market, such as Coca-Cola’s Burn. (“Red Bull SWOT Analysis”)
Marketing capabilities
The successful marketing strategies and consumer awareness of Red bull introduced stimulation drinks to the western market. Red bull is increasing its consumer brand
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(“Red Bull SWOT Analysis”)
Marketing expense
In order for the Red bull to boost sales, it needs to spend so much money on advertising. The Energy drinks have strongly connected to fashion and youth trends, so the company has to plan itself as in line with this in the face of huge competitors such as PepsiCo. The competition is so strong that even though Red bull is spending huge amounts on advertising campaigns, other competitors are also investing so much money for promoting their products. This in turn results in a smaller return for Red bull. (“Red Bull SWOT Analysis”)
Opportunities
Diversification of retail outlets
In order to increase sales, Red bull recently is using trade as a new route to increase sales. Vending machines are effective advertising tool and sales tools, because of the constant exposure that can create. Companies such as Coca-Cola and Pepsi have been using this route for such a long time and companies such as Glaxo Smithkline and out span have also entered the market. Red bull is also introducing vending machines, which shows that it’s committed to diversification of its distribution network and faced industry trends. (“Red Bull SWOT Analysis”)
Extension of product line
Because of extensive marketing and promotion budgets that are needed to introduce a new product from a new entrant to the market, the probability of new competitors entry into the market is very low. It’s more likely that a new

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