Amy Le BUI Thi Thuy

Agnes CHEUNG Nga Woon

Fennie LEUNG Hiu Ying

Sarah TIWANA

Oleksandr Sydorenko

Introduction

1.About the company• Mission statement• Red bull as a product• Establishment.• Aims and objective.• Target market

2. Macro factors: PESTEL analysis

3. SWOT analysis

4.Conclusion

ABOUT COMPANY

Mission statementRed bull as a productEstablishment.Aims and objective.Target market.

MACRO ENVIROMENTAL FACTORS

• P-olitical Factors• E-conomic Factors• S-ocial Factors• T-echnological Factors• E-nvironmental Factors• L-egal Factors

Political

• The World Health Organisation Health concerns drug (New Staff, 2008)

• Needs to be approved time consuming

& expensive

Economic

• Luxury good InflationDeflation Exchange Rate

-Affect the price

- Influence buying power (Tim McMahon, 2008)

Social

• Changing lifestyles

-Preference and confidence of

trying new things• Gaining Health Qualification

-Gaining confidence from customers

Technological

• Advanced Technology– New methods of filling the bottles– New refrigeration methods– The creation of disposable bottles

Environmental

• Increasing concern over the environment– Higher pressure on making environmentally

friendly products/ materials (Imogen Rose-Smith, 2009):• Recyclable aluminium & recyclable glass bottle

used

Legal

• Forbidden from some countries e.g. France, Denmark, Norway (Maxine Frith, 2004)

SWOT ANALYSIS

Strengths:

– Strong, fresh, fashionable brand identity

– ‘‘Dangerous’’ ingredients add ‘‘edge’’

– Recognition of the consumers through the sponsorship of extreme sports and events

– Investments of the share holders are minimal due to huge turnover

–29% global market share selling in 140 countries

WEAKNESSES

Red bull may have lost it’s ‘‘edge’’ as it is now accepted as being ‘‘safe’’ by most governments

Lack of the patent on Red Bull’s recipe means that anyone can copy it

Distress selling Toro Rosso team due to F1 rules may decrease marketing opportunities

Opportunities:

New products: Carpe Diem, Red Bull simply cola

and Red Bull energy shots Expanding into developing markets such as Africa and Asia

Concernment of the consumers through the sponsorship of

extreme sports and events

The consumption of energy drinks will increase of more

than one third by 2012

Development of new directions like Red Bull Mobile,

partnerships with Facebook, Fijan resort and theme park

Threats

Consumers will prefer to purchase other more ‘‘illegal’’ energy drinks containing more taurine and caffeine

Accepted as being ‘‘safe’’ Red Bull may lose it’s ‘‘edge’’

Changing buying habits of Red Bull’s largest audience (18-24 years)

Market share reduction due to competition from the 228 other energy drinks

Organic energy drinks market may steal Red Bull’s consumers

Conclusion

• Redbull now is becoming more popular, easpecially with young people by identify the right market segmentation (youngsters, active people), as well as bringing out right activities suits young taste (entertainments on the websites, different collection of sports for different interest with Redbull products support, etc)

• However there are some factors such as Legal and Technological factors can be problems to concern.

References

1.Imogen Rose-Smith, 2009 : Environmentally Friendly

2.Maxine Frith,2004 : European court backs ban on Red Bull over health concerns.[Online].Available at: http://www.independent.co.uk/life-style/health-and-families/health-news/european-court-backs-ban-on-red-bull-over-health-concerns-569117.html

3.News Staff ,2008 : Is Red Bull A Gateway Drug? Some John Hopkins Experts Say Caffeine Drinks Need Warning Labels. [Online].Available at: http://www.science20.com/news_releases is_red_bull_a_gateway_drug_some_john_hopkins_experts_say_caffeine_drinks_need_warning_labels

4.Tim McMahon, 2008 : Inflation Cause and Effect. [Online].Available at: http://www.inflationdata.com/inflation/inflation_articles/Inflation_cause_and_effect.asp