Question 1
Red bull company has significant strengths that help to overcome competition from competitors that engage in the provision of similar products. The first considerable strength associated with the red bull is an influential brand. The company has invested in enhancing the brand and creating a powerful brand that is recognized worldwide. The company, which engages in the manufacture and distribution of energy drink is one of the most recognized brands among all other companies that participate in the production and distribution of energy drinks. The dominant brand allows the company to overcome competition since the brand has earned a considerable market share within the industry (Farris, 2017). Secondly, the red bull enjoys a major strength associated with the effective marketing strategies implemented. The company has invested ineffective marketing strategies, which include engaging in sponsoring sporting events and teams in a bid to dominate the market.
On the other hand, red bull faces a significant risk associated with a limited product range. The uncertainty creates an avenue for the competitors to venture in the market and earn a relatively more substantial market share. Competitors such as Coca-Cola and Monster have become a significant threat to red bull owing to the fact that the companies have overcome the aspect of the limited product range. Engaging in competition with the powerhouses in the industry poses a significant risk for red bull, considering a decrease in profitability and loss of market share. The growth of the competitors is attributed to the ability to capitalize on the weaknesses of the red bull, which has been a recognized brand. However, it is necessary for the company to benefit from enhancing its marketing strategies in a bid to overcome competition and maintain a dominant brand in the industry.
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Question 2
Over the years, red bull has capitalized on engaging in nontraditional marketing tactics as part of marketing strategies for the company. The pros associated with the marketing tactics include effectiveness in brand building, which has enabled in the creation of a powerful brand that is most recognized in the provision of energy drinks (McCarthy, 2017). Another advantage entails the ability to tap new markets, considering that it is more engaging. The nontraditional marketing tactics implemented by the company can reach a wide range of markets, thus the ability to win a larger market share in the local and international markets. Additionally, the marketing tactics implemented by the company are cost-effective, thus saving on the costs associated with marketing and advertisement of products. On the other hand, nontraditional marketing tactics have disadvantages that include negative feedback from the target market and different regulations that reduce the impact of the marketing strategies.
Considering the position of the company in the market, it is important that it should not engage in traditional advertising as it has already built a powerful brand through nontraditional tactics. Secondly, the technological advancements continue to phase out the traditional marketing, and advertising strategies and paving were for unconventional tactics (Kunz, Elsässer, & Santomier, 2016). In that case, the company should not engage in traditional advertising as it may risk losing its market position, which is attributed to the use of modern and digital marketing strategies.
References
Farris, P. W. (2017). Red Bull and Energy Drinks in 2010. Darden Business Publishing Cases , 1-3.
Kunz, R., Elsässer, F., & Santomier, J. (2016). Sport-related branded entertainment: the Red Bull phenomenon. Sport, Business and Management: An International Journal , 6 (5), 520-541.
McCarthy, A. C. (2017). Reading the Red Bull Sublime. PMLA , 132 (3), 543-557.
