Red Bull is most famous energy drink. It is sold by an Austrian Company Red Bull GmbH. Red Bull is having highest market share in energy drinks across the globe. around 6.790 billion of cans were sold in 2018. It has very attractive packaging of slim and tall blue and silver can. This drink was introduced in only one flavor and sugar-free formula. However, in 2013 different features of it introduced with more flavors and colors. The company believed in aggressive mass marketing and successfully created the awareness and brand myth (Red Bull, 2020).
Ansoff Matrix is used by the companies for their plans towards expansion and growth. The matrix helps them in best combination of market and product growth strategies. The companies consider this planning tool as an important element for the growth. Here is the detailed Ansoff matrix analysis of Red Bull.
Market Penetration
Market penetration is a growth strategy suggested by Ansoff matrix, as it focuses on existing markets and existing products. This can be done by different ways. The companies have to increase the market share of the existing products by increasing the sold quantities. Companies usually opt for competitive prices, aggressive advertising, more sales promotion and more personal selling. This will help them in securing the dominant position in the market. Red Bull has penetrated the market deeply. It penetrated the market with the innovative induction of the new adrenaline sports. The company involved in attracting the sports world. In 2001, Red Bull has its first event of Crashed Ice which was 3 years before world launch of the drink. The main strategy of Red bull is not taking the product to the people but attracting people towards their product. Red Bull knows the product, competitors and its target market very well. The company invest more in marketing to attract more people (Carny, 2016).
Product Development
Ansoff Matrix is one of the riskier growth strategies as market development. It focuses on selling the new product in the existing market. This means companies can introduce different versions and features of previous product. Companies can adopt different pricing strategies initially to hit the market. Red Bull had introduced different flavors of the drink in 2003. For the product development to be hit, Red Bull had to engaged in mass marketing to create awareness among the customers. Red Bull believes in developing the product and then attracting the customers towards it (Jochen, 2016).
Market Development
Market Development is the growth strategy that focuses on the new markets for the existing products. Companies enter in the different markets, geographically or demographically to attract more consumers and increase the sales. Companies can also introduce new product dimensions of packaging for new markets. Companies also extend their distribution channels and networks in different areas where they did not reach before. Different prices ca also be the option for companies to attract new customers and make its name in the new markets. Red Bull has adopted this growth strategy by entering in the market of India, China, and other Asian countries, where it was not present before. Moreover, Red Bull also started targeting women more (UK Essays, 2018).
Diversification
Diversification is the growth strategy which focuses on the launch of new product for the new markets by the company. It means, companies are involving themselves in the market with the product where they never operated before. This is the riskier strategy, as companies are moving with no or little experience. The businesses who adopt the diversification strategy, must have an idea of what to lose and what to expect with this strategy. The companies need to go in long assessment of risks. However, diversification is highly rewarding while balancing the risk and rewards for the companies. As the Red Bull is an energy drink, it diversified itself in the sports industry. Red Bull challenges the sport conservationism. It decentralized its sales and marketing the brand differently from Coca Cola or Pepsi. It attracts novelty which is the combination of different downhill races for example ice hockey, skiing etc. (Carny, 2016).
References
Carny, M. 2016. Red Bull Marketing strategy analysis. [Online], Available at: https://prezi.com/-6qmlhyfz1nx/red-bull-marketing-strategy-analysis/, [Accessed on: 26th January, 2020].
Jochen, 2016. Red Bull a marketing company. [Online], Available at: http://redbull-is-marketing.blogspot.com/, [Accessed on: 26th January, 2020].
Red Bull, 2020. About the company. [Online], Available at: https://www.redbull.com/mea-en/, [Accessed on: 26th January, 2020].
UK Essays. 2018. The Global Market Leader in Energy Drinks Marketing Essay. [Online]. Available at: https://www.ukessays.com/essays/marketing/the-global-market-leader-in-energy-drinks-marketing-essay.php?vref=1, [Accessed on: 26th January, 2020].