• Situational Analysis• Brand Extension Idea and Rationale• Implementation Strategy• Tactical Execution• Market Size and Projections

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

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

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Red Bull Brand Prism

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

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

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

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

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%

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion

Situational Analysis Extension/Rationale Implementation Tactical Execution Market/Projections Conclusion