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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Red Bull GmbH is an Austria company founded by Dietrich Mateschitz(49%) and Chaleo Yoovidhya(51%) in 1984. The headquarters is located in Austria.

Red Bull is well known for selling an energy drink that combines unique ingredients of high quality such as Caffeine, Taurine, B-group vitamins, Sugar, Alpine water.

It was first introduced to the Asian public before moving to the European market. The first RedBull energy drink was sold in Austria on 1 April 1987.

RedBull only made its appearance in America 10 years later in 1997, gathering more than 75% of the market within a year.

In 2016, the energy drink was available in 171 countries, with a total of 6 062 billion cans sold worldwide.

Moreover, there are more than 11 886 employees (2017) working in the firm. The company's revenue in 2017 was a total of $7 391 billion (2017) and had an operating income of 1.3 billion euro in 2006. Wikipedia

Red Bull has been leading the energy drink market for decades and is considered the most famous brand. However, some may argue that it is a luxury brand. Red Bull is famous among young adults.

The report will now focus on the Macro environment of RedBull company.

Many factors are involved in this study. We will focus on the political aspect first as it requires government policers and regulations that affect the company. The factors that directly impact the company are various such as the tax reforms that directly laid impact on the company, also the stability and instability of the region where the company is located. Well as a good intra-governmental are a source of opportunity for RedBull. The research shows that for instance, good economies such as united states of America or Canada are more likely to produce better sales than third world countries. Because the third world countries are more focus on the physiological needs.

Likewise Red Bull has always been into innovation that maintaining the stability of the firm. For a company like Red Bull, the performance of this one is directly related to the economic stability of the state where the company is working. For example during the crisis in 2009 Red Bull's net sales when down 1,5% on the previous 12months. ( June 25, 2016, by John Dudovskiy)

Same as a country that is more developed there are more opportunities for the company. The possible treatments for red bull are the slowdown of the Chinese economy as this one has been considered as one of the greatest economies in the world.

However, the social factors involved the beliefs and lifestyle of people and more than that the culture. The young people are more into energy drinks which is an opportunity for a company like RedBull. But a population that is more aware of health care can be a threat for this one. It also has a great image due to the sponsoring of the extreme sports image and team sponsors.

As well as, the technology factors the research and development in the sector of alimentation have always been a great opportunity for companies like RedBull. And the most important one in the energy drinks industry is the internet that makes the product become more known and create the needs to consume it.

In order to sell their products, RedBull has to meet the legal requirements of the countries they are targeting. The company's priority is to make sure the drink is safe to be consumed by the targeted audience. However, a basketball player consumed the drink and it was the cause of his death (lien). Following this example, we understand that the brand doesn't meet the health requirements. this lawsuit cost RedBull $85million.

Because of that, it has been well documented that the energy drink is high in caffeine. and for that reason some european countries such as France, Norway and Denmark acted on it and banned the product.

RedBull are trying to be environment friendly as their aluminium cans are lightweight which makes their carbon footprint smaller. The cans used are 100% recyclable and don't lose their quality. as a matter of fact, recycling is a positive aspect for the company as people are starting to be more aware and sensible about the environmental issues.

After analysing the PESTEL, the report will now focus on the SWOT analysis.

First of all we will concentrate on the strength of the company. RedBull is available in more than 171 countries worldwide and has sold more than 6.3 billion cans in 2017. These numbers display the leadership owned by RedBull in the energy drinks market.

This shows the impact of the brand and the attitude that the public has towards it. The loyalty of the consumers is also demonstrated by the drink's unique taste.

The firm also have a really good marketing strategy, we find Red bull in a lot of international completion due to the sport sponsoring.

Moving on to the weaknesses, RedBull can be dangerous for the health of the consumers as it contains ingredients that accelerate the heartbeat. Dasey stated in his article ‘'Matthew Penbross, 28 years, collapsed after downing the popular drinks, each containing 80 milligrams of caffeine, last Sunday.” (Dasey, D. 2018).

Absence of choice for the consumers can be considered as a weakness because customers can have a wide panel that increases there expectations and influence their behaviour.

Compared to the other energy drink brands, RedBull is one of the most expensive ones.

Moreover, as an opportunities, Redbull can extend the market and get into new countries such as China that lead in term of value and volume growth.In 2013 Red Bull agreed with a Chinese manufacturer to  launching an international version of Red Bull energy into select urban areas (Food Navigator Magazine, 2013).

It also helped RedBull to extend the sponsorship events making it attract a large audience

It can also extend it's range of goods given to the customers a biggest panel of product answering to there needs.

The success of the brand had bought with it some threats, the concurrence is more important nowadays for Redbull because when it appear in the market in 1980 it was a unique product, so the dominance of Redbull is currently menace by the entry of Coca cola into the industry.

“Burn', a direct competitor to Red Bull in emerging markets in Latin America” (Euromonitor, 2014) “While in the US, another energy drink produced by Monster Beverage Company, ‘Monster' has now overtaken Red Bell in terms of volume sales” (Euromonitor, 2014).

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