Red Bull Competitors and Strategic Groups - Essay Example

Monster has a partnership with Coca-Cola Company in efforts to ensure that they enjoy a stable position in the market and beat the competition that other energy drinks such as Red Bull present (Marketline, 2012).

Pepsi Co is yet a key competitor in the energy drink industry with its drink branded as Sting. They are the second in the ranks for companies that produce carbonated soft drinks. The drinking brands include Mountain Dew, Pepsi, and other diet alternatives. Pepsi has its products in more than two hundred countries where the United States market generated more than fifty percent of the sales. Coca-Cola Company is the most famous company for the production of drinks but in the category of energy drinks, Red Bull takes it down in big percentages. It has the most demanded brand such as Diet Coke, Coca-Cola, Sprite, and Fanta. Other recent brands include minute maid, vitamin water, and PowerAde (Wilson, 2009). Like Pepsi, it reaches more than two hundred countries worldwide.

Consequently, the competition in the industry, Red Bull focuses on the strategy of non-price competition such as offering exhilarating events, sponsorships, and high-quality products. They attract more demands to their products by growing in more than forty percent market share. It has a major influence on the performance of the few competitors in the market since it is one of the significant pioneers found in the energy drink industry (George, 2013). It is considered the benchmark of the industry. Red bull has a sister brand that is noncarbonated. The brand is owned by TC pharmaceuticals and has performed well in the China market by being second in the ranks. In Latin America, Burn is the main competitor when it comes to the energy drinks industry, however; Red Bull still remains at the top of the tables. Monster has put up various strategies to ensure that they keep up the pace set by red bull such as sponsoring teams and events such as the Mercedes AMG Petronas team in Formula One and the races such as Monster Yamaha Tech 3 (Datamonitor, 2008). By such activities, they are able to have a market share that is close to Red Bull regardless of the controversies that they have caused in the past.