Major competitors of Red Bull:

Pepsico
Coca Cola
Monster
Nestle
Dr Pepper Snapple

Make a SWOT (Strength-Weakness-Opportunity-Threat) analysis of the company

Strength

Market Leader

Weakness

High Price

Doesn’t taste good

Opportunity

Roll-out of the Red Bull Organics range

Threat

The recipe of red bull energy drink is not patented. Any other company can copy it.

Perception of Alcoholic drink

Monster is beating Red Bull at home and aiming to cut its rival's lead overseas. Coke took a 17% stake in Monster for more
than $2 billion and the two companies swapped drinks -- Coke sold Monster its NOS and Full Throttle drinks in exchange
for Monster's non-energy products. The agreement enables Monster to get access to Coke's enormous distribution
network around the world.

Analyze the Political, Economic, Social and Technological (PEST Analysis) Environments of these countries

Political

France has banned the sale of Red Bull altogether

Economic

Social

Technological

Suggest some promotion schemes – it can be completely new or revamping of the current techniques
Virtual Reality – Adventure Arena

What differentiates Red Bull from the other players in the market?

 During the past 15 years, the drink has been copied by more than 100 competitors, but such companies as Coca-
Cola have been unable to take market share away from Red Bull.
 The traditional way of selling energy drinks, or any other kind of beverage for that matter, is to publicise how well
it tastes, its advantages, how appealing the drink would be to people.
 Red Bull on the other hand, decided to sell the idea of energy.
 Red Bull isn’t selling its customers an energy drink, its selling what happens when you drink it and in order to do
this they have created a publishing empire.
 Red Bull demonstrates the full potential of a brand creating, publishing and capitalising on almost all multimedia
channels. Focusing on extreme sports and the athletes and the amazing feats they are engaging in, Red Bull
delivers content with stunning visuals promoting the activities and athletes directly and the brand indirectly.
 Red Bull only looks for events that represent their values of pushing to the limits, extreme sports and living on the
edge.
 Red Bull’s universe is extreme sports and adrenaline-junky stunts. But there’s no mention of the actual drink
 Red Bull loves to sponsor stunts

Can the current strategy of the company backfire in India where people are risk averse?

 Effective Pricing strategy – should capitalize on Volumes & Lower Margin

 The cost of a Red Bull is above the purchasing power of an average Indian consumer. This makes the sale
restricted to a select segment in the market

 The high level of caffeine in Red Bull is also a worrying factor for the consumer who has fears of getting addicted
and hence becoming a regular user of Red Bull.
 Potential competitors already have a well-established supply chain in India so they can provide competitive price
edge.