Year 12 IB Extended Essays 2018

available seasonally, a broader product line may encourage new customers to try the drinks. Red Bull

also charges a significantly higher price compared to its competitors, this is likely due to their high

customer loyalty, but discourages new, first time customers.

The energy drink market within Australia has seen significant growth with sales volume quadrupling in

the last 10 years (Jennifer Christodoulou, 2016), with a sales volume exceeding 220 million litres

forecasted for 2018 (within the Australian and New Zealand energy drink market) by Canadean, a

global research market research organisation. This growth is opportunity for Red Bull to grow its

market share along with sales volume, to maintain dominance within the market. A second opportunity

is to address health concerns and develop a more health friendly product. While Red Bull already

market zero sugar products, it would be beneficial to develop products with a combination of natural

ingredients that could then be marketed as a healthier option compared to original Red Bull, this would

allow them to expand their consumer base to customer who would have originally been unwilling to

buy Red Bull due to health concerns.

Red Bull has seen an increase in competition from other energy drinks as well as products such as Dare

Iced Coffee, challenging the brand for market share. This can be seen as Dare has gained significant

market share in the impulse buy market between 2010-2016, with an increase of 5% compared to Red

Bulls 0.4%, although it should be noted that Red Bull already had a high market share at the time and

as of 2016 was the highest market share holder with 10.9% (Effie, 2018)

3.4.2 Dare Market Strategy SWOT Analysis

Australia has a strong culture of drinking coffee and many are habitual drinkers, these drinkers will be

more inclined to try an ice coffee drink, especially in summer when the Australian heat makes drinking

a hot coffee less desirable to some. The brand also developed new products like the Dare ‘Raw’ line as

well as ‘Cold Pressed,’ which use natural ingredients and are more appealing to customers worried

about their health.

While Dare has introduced some new products to try and diversify its range it still has a limited product

line of only 7 regular drinks. They are currently expanding their current range by offering limited time

products, which, if successful, can take a full-time place in their product line. Coffee drinking, while

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