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RedBull Company Profile SWOT Analysis
RedBull Company Profile SWOT Analysis
April 2013
Scope
This global profile focuses on the industry trends in soft drinks.
Disclaimer
All values expressed in this report are retail/off-trade in US dollar terms using a
fixed exchange rate (2012).
2012 figures are based on part-year estimates.
All forecast data are expressed in constant terms; inflationary effects are
discounted. Conversely, all historical data are expressed in current terms;
inflationary effects are taken into account.
SOFT DRINKS
OFF-TRADE RTD VOLUME
534.8 billion litres
Carbonates
169.5
billion litres
Fruit/Vegetable
Juice
62.0 billion
litres
Concentrates
43.7 billion
litres
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Bottled Water
192 billion litres
Sports and
Bottled
Sports and Energy Drinks
Energy
Water 15 billion litres
Drinks
205.1 billion
16.2 billion
litres Concentrates
litres
43 billion litres
RTD Tea
30.1 billion
litres
RTD Coffee
4.5 billion
litres
PASSPORT 2
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
STRATEGIC EVALUATION
Euromonitor International
Regional involvement:
Global
Category involvement:
PASSPORT 4
STRATEGIC EVALUATION
PASSPORT 5
STRATEGIC EVALUATION
WEAKNESSES
Broad geographic
presence
Red Bull has
Red Bull has a broad
established a strong,
geographic presence,
consistent brand image
which should ensure
(an independent, edgy
positive long-term
brand) globally. Red Bull growth even if certain
is synonymous with
markets reach maturity.
energy drinks in many
countries.
Category limitations
OPPORTUNITIES
THREATS
Category leader
Emerging markets
New production
Competition
Controversial
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PASSPORT 6
STRATEGIC EVALUATION
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
COMPETITIVE POSITIONING
Red Bull underperformed the overall energy drinks market in 2011-2012. While the companys market
share of the energy drinks market in the US increased in 2012, the markets growth rate overall began to
wane. Red Bull remains heavily dependent on the US for its global growth. Weakness here is reflected in
the companys weakening global performance in volume terms. The company however continues to enjoy
the position of number one ranked player in energy drinks globally with a 21.4% market share.
In terms of absolute volume growth however, the US remained Red Bulls key growth engine in 2011-2012
reflecting growth of 96% over 2007-2012. Brazil came second in terms of absolute volume growth
expanding by 608% over the review period or 48% CAGR. This market was a particular focus for Red Bull
with the company sponsoring various sporting events in order to raise the brands profile.
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PASSPORT 9
COMPETITIVE POSITIONING
In value terms, the companys performance was stronger in recent years although even in value terms the
companys performance fell below that of the energy drinks market overall. The energy drinks market has
attracted a number of other players including Monster Beverage Co, and The Coca-Cola Co (TCCC) which
marketed it own brands in the category including Burn as well as engaging in a distribution alliance with
Monster Beverage Co. PepsiCo had a modest presence in energy drinks with its brand Sting; however like
TCCC it maintained its own alliance, with Rockstar Inc.
Red Bulls sister brand non-carbonated Red Bull remains owned by TC Pharmaceutical which led the
energy drinks category in China and was present in Thailand where it ranked second. TCCCs Burn was a
stronger performer in Latin America over the review period, though Red Bull continued to lead the
category.
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PASSPORT 10
COMPETITIVE POSITIONING
2009
2010
2011
2012
Coca-Cola Co,
The
PepsiCo Inc
Danone, Groupe
Nestl SA
Mondelez
International, Inc
Ting Hsin
International
Group
Dr Pepper
Snapple Group Inc
Anheuser-Busch
InBev NV
2008
Company
2007
21.2
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
9.9
4.7
3.7
2.0
1.6
1.5
% company
share 2012
- 33 31 30 29 27
0.2
48 41 40 37 34 28
0.2
Otsuka Holdings
Co Ltd
- 32 33 32 32 29
0.2
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PASSPORT 11
COMPETITIVE POSITIONING
Company
2007
2008
2009
2010
2011
2012
26.2
PepsiCo Inc
11.3
Nestl SA
2.8
2.7
Dr Pepper Snapple
Group Inc
2.0
Danone, Groupe
1.9
1.6
10 10
8
6 6
1.5
1.4
16 13 12 10 10 10
1.2
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
MARKET ASSESSMENT
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PASSPORT 14
MARKET ASSESSMENT
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
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PASSPORT 17
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Red Bull tries to counter weakness in key markets with new launch
While the US will lead growth in energy drinks in
both volume and value terms over 2012-2017 there
are clear differences among the top 10 rankings by
both measures.
China will push ahead of Brazil in volume growth
terms. The market for energy drinks in China is
more mature than in Brazil. Unit price growth in
Brazil will as a consequence be higher than that in
China allowing it to take second position in terms of
value sales growth. In China, Red Bulls sister
company TC Pharmaceutical with its Red Bull is
the overwhelming category leader with a market
share of 81.2% in off-trade volume terms in 2012.
Markets entering the top 10 in volume terms
include the Philippines and Vietnam both relatively
price-sensitive markets. Per capita consumption
however in both markets is higher than the global
average. Energy drinks in many Asian markets
have a long history of being consumed by truck
drivers and labourers as a temporary energy boost.
These products were in fact the original inspiration
for Red Bull; a Westernised version of the potent
drinks sold through by Thai pharmacists.
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PASSPORT 20
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PASSPORT 24
PASSPORT 25
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
BRAND STRATEGY
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PASSPORT 27
BRAND STRATEGY
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BRAND STRATEGY
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PASSPORT 29
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
OPERATIONS
Other Businesses
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PASSPORT 31
OPERATIONS
Red Bull had 8,966 employees in 165 countries as of 2012. The company, which is not listed, traditionally
finances its investments from its cash flow.
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PASSPORT 32
OPERATIONS
In 2011, the rumour that TCCC may look to fully acquire or partially acquire Monster surprised analysts and
should have alarmed Red Bull. If Monster were to be under TCCC's full control, their combined volume
sales would be very close to those of Red Bull and would certainly pose a threat to Red Bull's global
leadership. Although TCCC did not acquire Monster at that time, the possibility of an acquisition has not
been ruled out and the company was the subject of more takeover rumours in early 2013.
As Red Bull entered China in 2011, the company could also consider building a facility there to serve the
Asian market over the medium term. There are strong arguments for combining forces with sister company
TC Pharmaceutical to better penetrate Asia Pacific markets.
Euromonitor International
PASSPORT 33
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY AND GEOGRAPHIC
OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
Edition range
Premium positioning
Euromonitor International
PASSPORT 35
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PASSPORT 36