Red bull Assignment Example | Topics and Well Written Essays - 4000 words

Red bull - Assignment Example The energy drink was inspired by a popular Thai drink named Krafting Daeng that was suggested for jet lag remedy. The owner of Krafting Daeng was requested to manufacture and market a new energy drink with completely new flavor. The main objective of Red Bull was to sell energy drink with a unique taste that appealed to the people living in the western countries. It sold more than one million cans in its first year and decided to expand into UK, USA, Hungary and Germany during the tenure 1992 to 1997. The company’s slogan â€Å"Red Bull gives you wings† defined the drink appropriately. However, there has been certain health risks associated with the drinks. The reason was that the ingredients of the drink contained high levels of caffeine which led to the cardiovascular diseases. However, the popularity of the company had soared and it began to promote a series of flagship events in the sports world. Situation Analysis Market Analysis of Energy Drinks Presently, the ene rgy and sports drink market is increasing steadily and has been gaining popularity among the teenagers and young adults. The sports and energy drink market saw a major increase in the sales growth of 13 percent in the year 2011 compared to an industry growth of 11 percent in the year 2010 (EuroMonitor International, 2012). There has been a rapid increase in the demand of branded and local energy drinks. In the UK Lucozade, GlaxoSmithKline was a leader in the sports and nutritional drink market and accounted for a 40 percent market share (EuroMonitor International, 2012). The sales of Lucozade were ?498 million in the year 2011 (EuroMonitor International, 2012). It is estimated that the sports and energy drink market would further grow at 5 percent in the UK (EuroMonitor International, 2012).It has been observed that in spite of the economic slowdown the beverage market has been growing steadily. Among the beverages there has been a tremendous increase in the sales of soft drinks and energy drinks especially in United Kingdom. In the year 2011 there was an increase of sales of carbonated drinks by 24 percent from 2010. In spite of health risks associated with these beverages and increase in the demand and sales of the energy drinks have been commendable especially among the youth and teenagers. The industry is dominated by established and popular companies like Coca Cola, Pepsi Co ltd, Red Bull etc (Polis, 2013). Penetration of the established companies into energy and nutritional drink segment has helped the companies in diversification of risk amidst this economic slowdown (Key Note, 2012). Figure 1: Market Share of Energy Drink Brands Source: (Energy Fiend, 2013) 5C of Red Bull The 5C analysis will helps us in understanding the macro, micro environmental and internal factors that affects the beverage market. It is one of the most instrumental tools used for identifying the important issues that require immediate attention and is also regarded as a checklist for managerial decision making. Customer: The drink is available at 8 oz, 12 oz, 16 oz and 20 oz can sizes and