Birth Of A New Brand : Red Bull

        11 years ago, the popular Red Bull drink around the world come to China CCTV Spring Festival Gala debut, a 'Red Bull came to China ' advertising language, from the Chinese beverage market, more than a category called 'energy drinks ', Golden Red Bull rapidly in China 's best-selling blowing whirlwind.

The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.

Red Bull has quickly spread its wings around the world, they started the first foreign markets in Singapore in 1989 and Hungary in 1992. Germany and UK was granted Red Bull in 1994 and 1995, followed by the US in 1997. Meanwhile up to 4 billion cans of Red Bull were sold in more than 160 countries across the globe.

Budweiser and Bud Light are the No.1 and No. 2 best-selling beers in the world. Miller, their closest rival maintains 22.1% of the market share. The following chart illustrates market share in 1999 for the nation’s leading breweries.

Red bull is not the leading energy drink provider, but is number two with 36 percent of the Australian energy drink market (2010,popular energy drinks), the red bull company sold over 5 billion cans in 2012 and have sold over 35 billion since it started in 1987.

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")

In Brazil, there is not as much of a market for energy drinks as there is in places like the United States. Still, introducing 5-hour energy shots to Brazil could cause the desire for energy drinks to grow in that country. That would open up an entirely new market for energy drinks that could make millions or even billions of dollars for companies that manufacture energy drinks throughout the world. In order to clearly understand how marketing will take place in Brazil and the issues that must be addressed, there are four specific areas that will be considered here. These will be the social-cultural environment of Brazil, the economic environment, the political environment, and the technological environment. Since all of those areas play a role in how an energy drink could be marketed and how much success it might have, they all must be discussed before any decisions are made.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

Red bull has dominated the energy market for a decade now. Its popularity and stylish design has allowed it to be charged at a premium price. Red Bull is a stylish and vibrant energy drink that is priced at least five times higher than the ordinary soft drink. Red Bull strongly believes that it offers its consumers something more than a beverage; it believes that it offers them a ‘way of life.’ It provides its consumers with energy and related brainpower to make the most of their time. Due to all of the above reasons, Red Bull can afford to price itself at such a high price. Therefore, it is important that Red Bull chooses those markets where the people have the financial capacity to purchase their product

Due to the fact that the industry is growing, other countries are now being emerged

Red Bull is an undifferentiated product from competition. A lot of energy drinks are similar to Red Bull and this may affect us. Also, a lot of other energy drinks prices are lower than Red Bull which puts Red Bull a step behind some other energy drinks.