Situational Analysis

Brand Extension Idea and

Rationale
Implementation Strategy
Tactical Execution
Market Size and Projections

Red Bull Company Overview

Dietrich Mateschitz, Red Bull

Founder

Situational Analysis

Privately owned company founded in

mid-1980s
Produces energy beverages targeted at
athletes, students, and professionals
Created the entire energy drink category
Associated with high energy and
excitement - it claims to make
consumers feel more alert by vitalizing
the body and mind

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

STRENGTHS

Industry Pioneer
Market leader
Premium pricing
Strong brand image
Widespread geographic presence
Strong brand loyalty
Unique marketing tactics

WEAKNESSES

Limited product portfolio

High distribution costs
High caffeine levels: vulnerable to
regulatory control
Recipe not patented, subject to imitation

OPPORTUNITIES

New categories ripe for expansion

Opportunities to continue global expansion
Growth opportunities within existing
markets

Situational Analysis

Extension/Rationale

THREATS
Growing negative attitude toward health
effects of energy drinks
New regulations on the sale of energy
drinks
New entrants and growing strength of
competitors.
Taxes and tariffs limit profitability
Premium pricing could potentially steer
away customers
Implementation

Tactical Execution

Market/Projections

Red Bull Brand Prism

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Brand
Extension

Resonates with Red Bulls

brand essence
Translates the utility of
flagship product
experience to a new
product category
New category
(caffeinated energy bars)
not yet
saturated
Why
it works
Situational Analysis

Extension/Rationale

Cannibalization of energy
drink
Competition from
traditional energy bars
Potential that caffeinated
energy bar category is
too niche and doesnt
have broad appeal

Risks considered

Implementation

Tactical Execution

Market/Projections

Product

Fruit flavor
Caffeinated
Half-can shape
Eye catching packaging
Innovative on-the-go
consumption

Place
Convenience stores,
supermarkets, drugstores,
gas stations, exercise
facilities
End cap displays
Impulse purchase

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Price
Premium price for
category
$3.99

Promotion
Sponsorship of extreme
events
Strong social media
content
Wings Team, Student
Brand Managers

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

 Total market size: $1.2

billion
625 million bars
Competition market
shares:
12%
5%
1.25%

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections

Situational Analysis

Extension/Rationale

Implementation

Tactical Execution

Market/Projections