1. How would you characterize the overall Red Bull€™s global marketing strategy (global, glocal or local)?

2. Argue for the most relevant segmentation (screening) criteria to be used in the international market selection process (IMS).

3. Was it a wise decision of Red Bull to:

(a) Launch Red Bull Cola and Red Bull Energy Shots?

(b) Launch Red Bull Cola and Red Bull Energy Shots in many markets at the same time?

4. Should Red Bull counteract the new marketing initiatives of its US competitor, Monster? If yes, what should Red Bull do in response?

5. Which of the five strategic options would you recommend for Red Bull€™s future strategy? Present arguments in support of your suggested priority list.

The energy drink, Red Bull, has become extremely popular over the recent years with almost one billion 250 ml cans sold in 2000 to more than four billion cans sold in 2010 in over 130 countries. In 2010, Red Bull generated over ‚¬3.8 billion in turnover throughout the world with the help of its 3,900 employees. Red Bull devised an innovative marketing approach to mainly target the young adult and consumers seeking an energy boost. Red Bull targets young adult consumer aged 16 to 29, young urban professionals, and post-secondary school students.

The market for energy drinks is characterised by the presence of specialised manufacturers as well as food and beverage powerhouses. Key players in the marketplace include PepsiCo, Coca- Cola, Danone, Hansen Beverage Company, Monarch Beverage Co., Red Bull, Dark Dog, GlaxoSmithkline, Extreme Beverages, Taisho Pharmaceuticals and Otsuka Pharmaceuticals. In terms of market share, Gatorade (Pepsi) and Powerade (Coca-Cola) lead the Sport Drinks market. Red Bull leads the energy drinks segment. Most of the soft drink multinationals (like Pepsi, Coca-Cola, Danone, GlaxoSmithKline) also cover the functional drinks market.

Transcribed Image Text:

Soft drink market: Functional drink market: Energy drink market: Sports drink market: Red Bull