The SWOT Analysis and Issues with Marketing of Red Bull

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Definition of The Problem

There are a lot of major issues and problems going on with Red Bull. One of the biggest problem Red Bull is facing today is their target market. The main challenge is that their brand is popular among youth and older population is left behind. Even though Red Bull has taken the majority market share, it needs to create a strategy to acquire new customers.

Another major issue is the rising competitors like the Coca Cola and Pepsi, which have come up with their own energy drinks, that too with half the Red Bulls price. Critics have also mentioned about the unhealthy ingredients which Red Bull has, which hits the image of it heavily. To keep on growing and remain the leader in the energy drink industry, it needs to reposition itself and expand its target market. Coca Cola and Pepsi are taking major steps in trying to acquire a higher share in this industry. With big companies like these trying to enter the market, Red Bull is in some major trouble since their pockets are deep and they have a better brand image.

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SWOT Analysis


  • Brand image
  • Customer Loyalty
  • Global Presence
  • Market share
  • Good turnover


  • Products not differentiated
  • Expensive
  • Brand Image
  • Easy Imitation


  • Worldwide Expansion
  • New Production Facilities
  • Growing Population
  • Advertisement
  • Threats
  • Competitors
  • Health issues
  • Low Pricing by competitors
  • Weak Brand image

To sum it up, initially, Red Bull came and acquired the major market share and build a healthy brand image. After its long presence in the market, the brand image started deteriorating due to the presence of unhealthy ingredients. As of now, there are big companies like Coca-Cola and Pepsi which are showing a strong presence in the energy drink industry, as competitors to Red Bull, which is a major threat for its market share. At the same time, Red Bull also has opportunities like global expansion, cutting down of prices and to open new products line.

Generation of Alternatives

The alternatives for Red Bull have been introduced into new products being included in the market for different customers at different market transactions. Fulfill needs of the different customer by engaging many alternative products that match the customer needs along with taste and preferences. New products that contain much caffeine and less sugar that would help you with your metabolism. New products are expensive to launch, and the image of the previous image has already taken up the market share. The alternated way to handle process was still the best way to generate a product alternative for the new product to be introduced in the market place.

Introduction of New Product Line


  • Introduction to new product markets
  • Fulfill needs of different customer segment
  • New products to compete with rivals


  • Image of previous product
  • Expensive process
  • International presence


  • Greater Market Share
  • Untapped Market Intro


  • Very Expensive Process
  • Risk for Brand Image

As the brand highlighted different approaches to tackle the competition still some loopholes of cost, cheap labor making products in a different country, sourcing the products to different international boundaries and making amendments to change the product with high-cost marketing and advertising medium to increase the brand image.

Marketing Objectives

  1. The main objective for Red Bull was it created a brand for itself and did not focus on promoting itself in the open market like other brands.
  2. The drink focused on Generation Y and Generation X as their main focus was invigorating the body and mind of the population.
  3. The focus was on Athletes to promote their brand and focus on multi-sports to engage the customers.
  4. Car rallies, Drift bikes, Mountain Bikes, and track racing has the greatest platform for engaging their brand and making an appearance.

Marketing Communication Objectives

  1. Creating Brand Awareness among different level of consumers and creating Brand loyalty among existing customers.
  2. Bring awareness to the brand with certain marketing strategies
  3. Creating a brand focused embodied message for the consumers so that they do not shift to the competitor brand.

Assumptions and Additional Information

From the above points, we can conclude that Red Bull must be focused on future goals and need recommendations to improve the product that’s already in the market and provide a better solution in drinks to the people. The high proportion in the drinks is sugar focused that leads to instant energy and creates a positive vibe for the people. But gaining competition from coffee brands and other brands that share the same product lines with low cost and better nutritional values provides a drawback for the company in brand recognition along with brand popularity. The zero sugar drinks introduced by competitor companies like Monster Inc took a heavy toll on Red Bull market share. The company loses focus on the existing customers and try to gain on new leveraged consumers who are in sports, gym, swimming activities that need instant energy to level up their competition. Red Bull has been creating a lot of brand recognition with advertisements on the soccer field, dirt bike tracks along with F1 racetracks to gain popularity. The immense structure of branding was focused to get the brand registered with different consumers all around the globe. The branding is done through actors, racers, athletes can be focused on brand promotion. Red Bull never created brand awareness until 2011 until the brand popularity gained tremendous growth. It had a greater international market share and created a brand awareness that helped people in underdeveloped nations along with athletes to overcome barriers. The report still shows missing data that was required for Red bull success. The areas to improve for Red Bull from this report are:

  1. Influencers on whom they target
  2. Athletes whom the money is spent
  3. International boundaries that are under Red Bull areas of business.

The Red Bull has been impacting its sale in the open market with the international appearance of a wealthy brand and creating problems with the specified population that are more focused on healthy alternatives of sugar.

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