Paper Example on Red Bull GmbH: Birth of a New Category of Energy Drinks

Red Bull GmbH is an Australian company that was created in 1897. Its founders were Dietrich Mateschitz and Chaleo. Drawing inspiration from an existing energy drink called Krating Daeng, that was introduced and sold in Thailand, Dietrich took the idea from Yoovidhya Chaleo and modified the ingredients that were used in making the Krating and in partnership with Chaleo Yoovidya; they founded Red Bull GmbH, in Thailand. Dietrich not only came up with a new product which was the birth of a new category of drinks called energy drinks (Gorse, Chadwick, & Burton, 2010)

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

1b) When was the product first introduced, and why?

Red bull was first introduced on April 1, 1987, in Australia. It was introduced to suit other markets in the world rather a small part of it (Gorse, Chadwick, & Burton, 2010)

2a) What's the company's mission statement?

Red Bull GmbH has its mission statement as 'Giving Wings to People and Ideas.'

2b) Is the product you choose to analyze in line with the company's mission statement?

Red Bull energy drink is in line with the mission statement of the company. The observation is based on the fact that it is one of the most satisfying energy drink in the world and is very competitive in the market. Through satisfying the people, Red Bull hence gives wings to people and ideas through the energy it propels.

3a) What does the companies do better than anyone else?

Red Bull has a marketing strategy that out dos all its competitors making it the energy drink with the largest market share (Gorse, Chadwick, & Burton, 2010).

3b) Is the product a star, question mark, cash cow, or dog in terms of the BCMG matrix? Explain and justify your answer.

Red Bull is a star in terms of the BCMG matrix. The reason is that it has a high market share and high market growth. Red Bull generates a positive contribution margin and profit, and as a result, Red Bull GcmH can easily boast a strong competitive position in attractive markets. Thus Red Bull is a star (Fam, 2005).

4a) what are the company's or product's strengths and weaknesses?

Strengths

Red Bull GmbH has numerous strengths such as;

A successful track record of product innovation where they continually develop new products.

High customer satisfaction achieved through the existence of a dedicated customer relationship management department.

It has a Go to Market Strategies that are successful for its products.

The Presence of reliable suppliers of raw materials who help the company overcome any supply chain bottleneck.

Super and impressive performance in new markets. Red bull has expertise skills in entering new markets and thriving well.

Weakness

Inability to integrate firms that have a different work culture.

High rate of hiring and firing of workforce which makes it spend a lot on training new employees compared to its competitors.

Red Bull GcmH is only compatible with present business models thus limiting its expansion in adjacent product segments.

The lack of technology investments in its vision is a weakness as most company's are going digital and are upholding new technologies.

The profitability ratio and Net Contribution % of Red Bull are below the industry average.

5a) Social/ cultural issues

Changing consumer buying behavior from an online channel could be a threat to the existing physical infrastructure is a driven supply chain model. - it is a threat

New trends in consumer behavior can open up a new market for the Red Bull. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. - This is an opportunity (Johnson, Shields, Jitts, Medjkane, & Buttenshaw, 2011).

5b) Economic issues

New taxation policies can impact the way business is done and can lead to the opening of new opportunities for established players such as Red Bull, thus increased profits- This is an opportunity.

The demand of highly profitable products is seasonal in nature, and any unlikely event during the peak season may impact the profitability of the company in short to medium term- this is a threat (Fam, 2005).

References

Gorse, S., Chadwick, S., & Burton, N. (2010). Entrepreneurship through sports marketing: A case analysis of Red Bull in sport. Journal of Sponsorship, 3(4).

Login, O. N Red Bull SWOT analysis.

Fam, K. S. (2005). Marketing in Asia Pacific: integrating theory with practice.

Johnson, L., Shields, E., Jitts, C., Medjkane, R., & Buttenshaw, J. (2011). SWOTing a cultural icon. Red.