Year 12 IB Extended Essays 2018

3.4 Market strategies compared 3.4.1 Red Bull Market Strategy SWOT Analysis

STRENGTHS • Strong brand recognition • Entered the Australian market early

WEAKNESSES • Health concerns due to caffiene • Limited product line • Expensive compared to competition

OPPORTUNITIES • Growing market • Product Diversification for Healthier Drinks

THREATS • Negative Publicity • Growing Competition • High Marketing Costs

Red Bull has a strong brand recognition which has helped the company to grow a relationship with its

customers and gain a loyal consumer base. This is due to Red Bull entering the Australian market in

1999, only 2 years after V Energy, their largest competitor (Effie, 2017). This time has allowed them to

gain a positive brand reputation that has led to a loyal customer base.

There has been a growing concern about the health effects of Red Bull, with high-profile chefs such as

Jamie Oliver speaking out about his concerns for the product (The West, 2017). I was unable to find

any press releases from Red Bull addressing the growing concerns, so it is reasonable to believe the

company is choosing to focus on their content marketing instead of addressing concerns with their

product. Red Bull currently only has 3 products in its full time product line, with limited edition flavour

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