red bull brand extension - small
TRANSCRIPT
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• Situational Analysis• Brand Extension Idea and Rationale• Implementation Strategy• Tactical Execution• Market Size and Projections
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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
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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
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
Red Bull Brand Prism
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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
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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
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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
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
• Total market size: $1.2 billion◦625 million bars• Competition market shares:
12%
5%
1.25%
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion
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