Assignment 12

What are Red Bull’s greatest competitive strengths as more companies (like Coca-Cola,
Pepsi, and Monster) enter the energy drink category and gain market share? What are the
risks of competing against such powerhouses?
Red Bull has made a name for itself as a powerful, modern, and stylish brand, and it dominates
the global market for energy drinks. It defines a special energy drink that promoted good health
and helped establish a market and a brand. The Company has also established a link between its
product and young people. In contrast to other businesses, its emphasis is on word-of-mouth viral
marketing and a "seeding program" aimed at getting Red Bull goods into hip stores, clubs, and
bars. This may be viewed as their strength. However, they are not without flaws; if a rival enters
the market, the only red bull energy drink may become obsolete. They do not have a variety of
products like Coca-Cola, Pepsi, and Monster. Red Bull hasn't been able to expand its product line
to include a diet beverage to appeal to the latest trend of health-conscious consumers or a new
flavor while simultaneously modifying their pricing point to be more consumer-friendly.
Discuss the pros and cons of Red Bull’s nontraditional marketing tactics. Should Red Bull
do more traditional advertising? Why or why not?
The marketing approach used by Red Bull is distinct from those of its rivals since it employs
unconventional tactics. To generate word-of-mouth as their initial marketing effort, they began
by sponsoring several extreme sports. They created specially made drinks that are distinct from
conventional soft drinks after they reached the market. They stand out and are special in the
market with their offering, which helps them succeed there.
The pros and cons of Red Bull’s nontraditional marketing tactics are as follows:
Pros:
 Securing a certain clientele. They support sporting activities and cater to young people.
 The cost is lower. The majority of their campaigns are physical, which is less expensive.
Cons
 The mass market is not covered by Red Bull's unconventional marketing strategies.
Considering that they exclusively concentrate on festivals, nightclubs, and major events.
they are less focused on the target audience than traditional marketing.
 It might be challenging to quantify and anticipate non-traditional marketing strategies.
Therefore, Red Bull cannot always be certain that their marketing effort or commercial
will be successful.
 The potential for subpar executions. This type of campaign is uncertain because it
depends on the executor.
As the foundation of any marketing strategy, I think Red Bull should only employ traditional
forms of advertising rather than print. Young men make up their target market, and they are well
aware of what they watch (sports) and what they enjoy (adventure, risk, and pushing the
envelope). Always pushing the envelope, they once sent a man to leap from the edge of space
and break the sound barrier. If you can send people into space to leap, why do you need
billboards with banner ads? For the occasion, the entire world cheered. In addition to this, their
catchy tagline, "Red Bull gives you wings!" tries to convey the idea that you are a part of
something much larger.
Discuss the effectiveness of Red Bull’s sponsorships. Where should the company draw the
line?
The sponsorship reached new consumers around the world that Red Bull does not often reach,
transcending sports and entertainment into popular culture. It confirms Red Bull does' claim that
it not only sponsors events but also organizes them. To see Felix Baumgartner become the first
person to break the sound barrier with a free fall, a record 8 million viewers tuned in to YouTube
on Sunday, October 14. Half of the global trending topics on Twitter were also tied to Red Bull
Stratos. The video has subsequently received over 10 million YouTube views, and the incident
has made front-page news across the globe. So, it is possible to assess the success of their plan. It
has developed a positive brand image and worth. So, in my opinion, the corporation shouldn't
draw any boundaries. They ought to assume measured risk.

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Assignment 12

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What are Red Bull’s greatest competitive strengths as more companies (like Coca-Cola,

risks of competing against such powerhouses?

flavor while simultaneously modifying their pricing point to be more consumer-friendly.

do more traditional advertising? Why or why not?

market with their offering, which helps them succeed there.

 It might be challenging to quantify and anticipate non-traditional marketing strategies.

depends on the executor.

something much larger.

draw any boundaries. They ought to assume measured risk.

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