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While they have and continue to use a full court press marketing strategy, using a basketball figure of speech, there are issues that may cause problems ahead for Red Bull. These problems exist in several forms: (1) While Red Bull has the lead in the energy drink category with a 60% to 70% market share, Coca Cola, Pepsi, and others are in pursuit with their own energy drinks (e.g., think ‘V’ Energy Drink and Coke’s version ‘Mother’). Can they maintain their lead? (2) With more options available in the market, there may be a blurring effect where they all start to look the same and Red Bull could lose its “point of difference.” Or, the brand may simply lose its edge and become “stale.” (3) The health concerns are still out there and may become amplified if bloggers start to take issue with these drinks and become more concerned with health in general and, more particularly, with childhood obesity and diabetes. (4) Their target audience may move on as they age. (5) A limited product-line could be a risky strategy if things change.
What do you see as the most likely changes to occur in the market for energy drinks? Provide examples and an explanation. What marketing advice would you offer to Red Bull for now and the future? Explain why?
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