2. • Situational Analysis
• Brand Extension Idea and Rationale
• Implementation Strategy
• Tactical Execution
• Market Size and Projections
3.
4. Red Bull Company Overview
◦ Privately owned company founded in mid-1980’s
◦ 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
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Dietrich Mateschitz, Red Bull Founder
5. STRENGTHS
• Industry Pioneer
• Market leader
• Premium pricing
• Strong brand image
• Widespread geographic
presence
• Strong brand loyalty
• Unique marketing
tactics
OPPORTUNITIES
• New categories ripe for
expansion
• Opportunities to
continue global
expansion
• Growth opportunities
within existing markets
WEAKNESSES
• Limited product
portfolio
• High distribution costs
• High caffeine levels:
vulnerable to regulatory
control
• Recipe not patented,
subject to imitation
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
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
8. Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Brand Extension…
• Resonates with Red Bull’s 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
• Cannibalization of energy drink
• Competition from traditional
energy bars
• Potential that caffeinated
energy bar category is too niche
and doesn’t have broad appeal
Risks considered
9.
10. Place
• Convenience stores, supermarkets,
drugstores, gas stations, exercise
facilities
◦ End cap displays
• Impulse purchase
Product
• Fruit flavor
• Caffeinated
• Half-can shape
• Eye catching packaging
• Innovative on-the-go consumption
Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
11. Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Promotion
• Sponsorship of extreme
events
• Strong social media content
• Wings Team, Student Brand
Managers
Price
• Premium price for category
• $3.99
