Swot analysis

Swot Analysis

Strength

The strengths of Red Bull are market leadership position, marketing efforts, their familiar taste and the representative of the fashionable and trendy

Weaknesses

The weaknesses are the pricing and the lack of the recipe patent as well as less variety of the products.

Opportunities

Red Bull has opportunities to expanding the target markets as well as product lines extension.

Threaths

Competition

This is probably one of the biggest threats to Red Bull nowadays. Major competitors such as Coca Cola and Pepsi are continually seeking to regain market share of Red Bull. Coca-Cola and Pepsi have launched their own energy drink versions to compete directly with Red Bull’s products, yet with no real impact on the market.

Negative publicity

Various media worldwide have reported that Red Bull is harmful for one’s health. The French Health Authority has gone one step further by not approving the Red Bull product for sale in France, believing it is not in compliance with the country’s health and food regulations. Other media reports have been targeted towards parents stating the caffeine levels in Red Bull can be dangerous if consumed by children/teenagers, who are exactly the product’s target audience. Red Bull has gone to the extremes of seeking scientific proof that its product is safe for consumption and released numerous statements to curb the negative media attention.

Inability to move forward with the product

Red Bull is well known for its innovative advertising; however the product could be in danger of becoming stale. By shunning conventional advertising methods and opting for online advertising and cartoon adverts, the aim of attracting 15 - 30 year olds is working, but for how long? Combine this with their large investment in extreme sport events the question is what will be their next step to keep on being innovating and attracting.

Ability to gain new customers and retain current customer loyalty

With Red Bull’s target market currently aimed at youngsters there is the question of whether this generation will continue to drink Red Bull as they grow older. And will the next upcoming

...