Red Bull Case Study
Red Bull’s Strengths and Weaknesses in the Face of Competition
One of the mains strengths that Red Bull possesses is its large youth following. The youth relate to the brand because of its rebellious nature. Red Bull is anti-marketing and anti-branding making it less mainstream than its competitors such as Coca-Cola and Pepsi are. Red Bull is seen to be breaking the rules, a theme that resonates heavily with teenagers and young adults across the globe. The youth believe that mainstream brands such as Coca-Cola and Pepsi are corporate sell-outs. Red Bull also holds numerous daredevil events that attract huge crowds. The events are a perfect marketing strategy for the company as it aligns itself with stunt men and women and attracts many people.
Another strength that the company has is its alliances with distributors. The company has a unique relationship with the distributors (Gates, 2015). When the company enters a new market, the company advertises through nightclubs instead of advertising on television or other mainstream advertisement methods. Nightclubs, gyms, supermarkets, and restaurants are more inclined to display Red Bull products than other energy drinks from the company’s competitors. The company also regularly offers free samples in many events generating more buzz about its energy drinks.
Major weaknesses or risks for the company include health concerns due to the high caffeine content of its products. As more consumers become aware about the health risks associated with caffeine, they might opt to consume healthier products. There is the possibility of organic drinks taking over the market currently enjoyed by Red Bull. Furthermore, there is usually a negative connotation about extreme sports. Aligning itself with the type of sport can be detrimental to its brand image. People will begin to associate the brand with great risk. If a fatality occurs in one of the events the company has sponsored, the consumers might begin to perceive the brand negatively (O’Brien, 2012).
Traditional Advertising for Red Bull
Red Bull has successfully utilized alternative marketing strategies including word of mouth and buzz marketing. The aforementioned strategies have helped Red Bull develop into a cult-like company with millions of loyal fans/followers across the globe. The crazy daredevil events and the offering of free samples regularly have catapulted the company into a global leader in the energy drink market.
It is recommended that the company maintain the non-traditional advertising strategies that it is currently employing. The strategies are successful mostly because they are out of the box and the target market is more attracted to the company’s products due to this fact. The non-conventional advertisement techniques are very attractive to the youngsters who also wish to remain unique. Additional reliance on traditional methods of advertising might dilute this perception causing the youth to distance themselves from the company (McGuigan, 2012).
It does not mean that the company should not use traditional advertising at all. Currently, the company employs traditional methods of advertising in mature markets. Red Bull will utilize traditional advertising at a later stage in its marketing strategy. When the company enters a new market, it advertises through giving free samples at designated spots including clubs and convenient stores near college campuses.
When the product gains acceptance in the market, the company begins to offer the energy drink in supermarkets and restaurants. The next step is to align itself with extreme sporting events in the market. For instance, it sponsors mountain biking, mountain climbing, motor sports, and extreme sailing. Finally, when the market is mature, Red Bull then uses traditional advertising methods to reinforce the brand’s position in the market. Its most iconic advertisement has the slogan ‘Red Bull Gives You Wings’.
Gates, R.C. (2015, Sep 12). Strategic Marketing Analysis: Red Bull GmbH. Linkedin.com. Retrieved on 5/3/2016 from https://www.linkedin.com/pulse/strategic-marketing-analysis-red-bull-gmbh-gates-mba-candidate
McGuigan, C. (2012, Oct 16). Red Bull: Masterminds of New Age Marketing. Creative Guerrilla Marketing. Retrieved on 5/3/2016 from http://www.creativeguerrillamarketing.com/viral-marketing/red-bull-masterminds-of-new-age-marketing/
O’Brien, J. (2012, Dec 19). How Red Bull Takes Content Marketing to the Extreme. Mashable.com. Retrieved on 5/3/2016 from http://mashable.com/2012/12/19/red-bull-content-marketing/#S8fy3r6aU5qs