Essay about Caffeine and Red Bull

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Strategic Management on Redbull

WHERE ARE WE?
SWOT:

Strengths:
Market leader; brand ambassadors;synonymous with energy and getting a boost;events; Youth brand managers; extreme sports association and premium image

Weaknesses: limited product range; expensive.

Opportunities: new youth as a target market (16-24); adapt for older matured "Y generation"; events; viral marketing; youth have a disposable income and are easily influenced by peers and trends; "smart energy drinks" energy drinks mixed with a 'smart drink' (made from a mix of fruit juices, vitamins, herbal and amino acid supplements.

Threats: ever-growing energy drink market, loss of original customer base as they mature, negative publicity - rumours red bull contains bull sperm, health concerns - ingredient taurine, will the youth adopt the brand?, youth have a lack of purchasing power and ready-made smart drinks.

Energy drinks:
•Are stimulants
•Prevent sleep
•Promote mental alertness
•Improve physical performance
•Increase endurance

Brand Architecture:
Red Bull is a Branded House. A Branded House is, “A centrally focused group of brands that are clearly connected and coherent. A very large Family of Brands” as defined by http://stealingshare.com/brand_resources/glossary.htm. Red Bull isn’t a large family of brands; it consists of the original drink, a diet version and a cola drink (not yet available in South Africa) but they are clearly connected and coherent and obviously not a house

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