STRATEGIC MARKETING

RED BULL CASE

GROUP ASSIGNMENT 1

GONZALO ANDRES RAMIREZ GOMEZ 0598060

1 INTRODUCTION
The present document brings an analysis of the Red Bull case as an exercise developed for the
course of Strategic Marketing. In the following sections, different topics are addressed in regard
to the case in question. The article that was used for this assessment is “Red Bull Spreads its
Wiiings” (Nader Tavassoli, 2022).

2 Analyze the macro-environment factors: Political-legal, economic,

socio-cultural and technological factors.
The chosen method to address this section was done with a PEST analysis given that this
framework allows to assess the macro-environmental factors that may affect the operations of a
business or industry. PEST stands for the following: Political, Economic, Social and
Technological factors (CIPD, 2023).
2.1 POLITICAL FACTORS
- Red Bull is subject to various regulations and laws regarding the production, distribution
and marketing of energy drinks.
- The company may face challenges due to taxes imposed by different products. Such as
importation rates, which can increase the price of the products in some countries.
- Government policies around health and wellness could impact the company´s ability to
market its products.
2.2 ECONOMIC FACTORS
- Red Bull´s sales and profits may be affected by economic downturns, as energy drinks
might be perceived as elastic goods. This is also due to the company having operations in
multiple countries.
- The company may also be impacted by fluctuations in costs of raw materials such as
sugar and aluminum.
- The launch of Alpha Tauri and its positioning as a super-premium brand might increase
the expectations to acquire products from the brand.
2.3 SOCIAL FACTORS
- There are concerns about the health risks associated with energy drinks, which could
raise challenges on the demand for Red Bull´s products.
- The company´s sales might be affected due to changes in consumer preferences, such as
shifts towards healthier and more eco-friendly lifestyles.
- Red Bull´s efforts are heavily focused on extreme sports and music events, which may
not resonate with all consumer segments specially taking in consideration that not all
sports can be practiced in all regions.
- The Seasonal Editions of Red Bull are based on seasonal flavors. These new flavors
should also be tested before entering a different country.
2.4 TECHNOLOGICAL FACTORS
- Red Bulls relies heavily on social medial, although they have already taken steps towards
User Generated Content (UGC) instead of relying on regular influencers, which has
shown to be more effective.
- Red Bull has a large number of social media accounts which might affect the
cohesiveness of the content shared by the brand.
- Red Bull will constantly need to innovate the materials used in Alpha Tauri garments to
set them apart from other brands trying to enter the market.