Question

1a) Calculate Red Bull's share of the 3-brand energy drinks market in 2015. (4)

1b) Even though market share is down on 2006, Red Bull retains a dominant position. Explain two business
benefits of this. (6)
2a) Calculate the percentage increase in sales of Monster in 2015 and Red Bull in 2015. (4)
2b) Use that data plus the graph to analyse where each of the three brands lies on the product life cycle.
(8)
3. Assess how a company as huge and expert as Coca-Cola can fail when launching a new product into the
UK. (8)

Answer 1

To calculate Red Bull's share of the 3-brand energy drinks market in 2015, you need the market share data for Red Bull as well as the other two brands. Two business benefits of Red Bull's dominant position in the market are brand recognition and economies of scale.

Step-by-step explanation:

1a) Calculate Red Bull's share of the 3-brand energy drinks market in 2015. (4)

To calculate Red Bull's share of the 3-brand energy drinks market in 2015, we need the market share data for Red Bull as well as the market share data for the other two brands. Once we have that information, we can use the following formula:

Market Share of Red Bull = (Market Share of Red Bull / (Market Share of Red Bull + Market Share of Brand 1 + Market Share of Brand 2)) * 100%

1b) Explain two business benefits of Red Bull's dominant position in the market. (6)

Two business benefits of Red Bull's dominant position in the market are:

Brand Recognition: Red Bull's dominant position in the market gives it strong brand recognition. This means that customers are more likely to choose Red Bull over other brands, leading to increased sales and market share.

Economies of Scale: Red Bull's dominant position allows it to enjoy economies of scale. This means that Red Bull can produce energy drinks at a lower cost per unit due to its large scale of operations. This gives Red Bull a competitive advantage in terms of pricing and profitability.