Marketing Analysis : Red Bull Essay

Rationale – Red Bull is a global player and almost everyone has tried their drink before. But Red Bull does so much more than just supplying the un-energized part of society with the power to get through the day. The Austrian company is one of the most successful ones when it comes to marketing their brand – even the people that don’t enjoy sipping their cool energy drink know that Red Bull ‘gives you wings’.

Originally developed in 1962; in Thailand the energy drink had been marketed towards the working class (Independent- Jonathan Owen). Yet Dietrich Mateschitz a previous marketing executive in Austria found this drink when he was in Thailand, he then altered some ingredients to adhere to a more pleasing taste. This lead to Red Bull being one of the most popular energy drinks in the world, making it not only a brand but also a lifestyle. Red Bulls logo is originally blue and sliver with two gaurs charging to each other with the sun as the background, with the slogans being “The world of Red Bull” and “Red Bull gives you wings”. These marketing slogans highlight the product being beyond just a drink, but being a major supporter to the entertainment industry, extreme and regular sport, marketing and providing the product in a more eccentric way, bringing the psychological draw to consumers and popularity to the drink. As a product Red Bull is carbonated, flavoured berry energy drink, which increases endurance, speed and an over all more boosted self. With a variety of Red Bulls produced such as, sugar free, zero calorie and limited edition, providing the consumers with a range of products. Through out the years Red Bull has been distributed and embraced through out the world, the first sale was April 1st in Austria (RedBull.com). “We are selling in 106 countries worldwide” (Dietrich Mateschitz), for this mass production, there is a clear strategy that Red Bull focus on which is

Red bull Inspired by functional beverages from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980 's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. Currently, Red Bull is available in more than 167 countries and around 50 billion cans of Red Bull have been consumed so far. In terms of further expansion, Red Bull is targeting the core market of the USA and growth markets in the Far East, while also focusing on the continued world-wide roll-out of the Red Bull Editions. Furthermore, their mission is to be the premier marketer and supplier of Red Bull in Asia, Europe, and other parts all around the world. Red Bull will achieve the mission by building long-term relationships with the people who can make it become more reality. The company is noted for its high quality beverages and their vision is to uphold the product standards, while maintaining the leadership position in the energy drinks industry and delivering superior customer service in a high profitable and efficient manner.

This case study written by Krupa Kansaru on the history of Red Bull and their success in making the sports energy drink market what it is today has shown the key strengths of the company. The obvious strength that the Red Bull company has a unique and early start in the sports energy drink industry. CEO Dietrich Mateschitizin was quoted in the case study, he says that “if we don’t create the market, it doesn’t exists,” this quote parallels with Red Bull as a whole. Starting in the 1980s Red Bull used abstract marketing strategies involving differentiation, “word of mouth”, and buzz marketing to popularize the product instead of using a traditional approach by launching their product and waiting to integrate it into mainstream media. Red Bull thrusted itself into communicating with its customers and fan base by launching events, working closely with event coordinators, and strategic product placement. Red Bull also holds much strength by associating the product and brand with athletics and extreme sports. Targeting a younger generation and portraying the idea of a “fuller and freer life” has proven to truly engage the popular culture and counter culture alike. It is stated in the case study that Red Bull holds a seventy percent market share in over one hundred countries statistics like that show the company’s true strength especially compared to competitors like Monster and Rockstar.

Red Bull, Austria 's biggest export since Arnold Schwarzenegger, has methodically created and dominated the energy drink category much in the way players of the board game Risk would defeat their opponents. Dietrich Mateschitz, the owner of Red Bull International, created the highly caffeinated beverage in 1987. Five years later, the drink spread into neighboring countries like Hungary and Slovenia, followed by Germany and Switzerland. In 1997, Red Bull prepared to storm the U.S. market.

All though Red Bull was launched in 1987, it was not until 1992 that the company began expanding its distribution – first to other European countries, Hungary, Slovenia (1992), Germany and Switzerland (1994), and then in 1997 to the US (Kumar et al 2005: 3). In the 1990s, the general consumer trend in the markets that Red Bull entered into was that the more you spend the

‘Red Bull’ was founded in 1984, well before SoBe, and targets the same group of young partygoers. Both companies’ positioning takes place in the chiefly younger customer’s minds by constantly trying to create a fashionable image. ‘Red Bull’, therefore, could be seen as the ‘Big Brother’ of SoBe ‘promoting the craziest extreme sports events in the world’ .

Red Bull operate within the energy drinks sector of the soft drinks market. The product is an example of a 'functional ' drink. Functional foods respond to consumer interest in well-being and performance. The major multinational soft drinks companies are investing in the area of functional drinks, developing their own brands and buying up existing ones. This is seen as being important, given that their traditional soft drinks markets are at the maturity stage in many countries. For these multinationals, new functional drinks offer opportunities for renewed business growth. (Can talk about Cash cow and stars)

5.0 How is Red Bull Marketed? 5.1 Sponsorship 5.2 Advertising 5.3 Brand Image 5.4 Some of Red Bull’s extreme sports athletes and events in pictures 6.0 Revolutionary Marketing 7.0 Maintaining market share 8.0 Competition and Intellectual property 9.0 Discussion 9.1 Diversification of product range 9.2 Drinks for the “Health Conscious” consumer 9.3 New Marketing Ideas 9.4

Red Bull is the most famous invigorating drink in the world.The Austrian company has been selling it for already twenty years. Firstly, it conquered Europe, then America, well after reborn drink returned to its homeland-Taiwan and all the rest of Asia. Today Red Bull has annual sales of around 4 billion cans in 160 countries and employs more than 7,700 people. Because of it energy building ingredients and revitalizing qualities Red Bull focusses their brand around the theme “Red Bull gives you wings”. Company has wisely chosen audience for their product - they began to spread and advertise themselves in nightclubs and universities. After a few years they launched a big promotion of Red Bull as ideal drink for any sport activity.

Red bull is the market leader in energy drinks. Red bull was found by Dietrich Matchitz while he was visiting Thailand. Technially the formula was made by a man named Chaleo Yoovidhy, who was providing to people to help keep them awake. In Thailand it was reffered to as Krating Daeng. Dietrich tried out krating daeng himself and discovered that it works, primarly because it helped him with jet lag. Dietrich went back to Thailand and collaborated with chaleo into making it a better tasting formula and naming the product Red Bull. Red Bulls popular slogan “red bull gives you wings” brought consumer awareness to the drink. Red bull became popular to men, athletes, students who need cram in a study session and those who work graveyard shift. By 2010 Red Bull was made available in 162 countries. Red bulls main main competitors are Rockstar and Monster energy drinks. Also big corporations such as coca-cola and pepsi. However coca-cola and pepsi do not hold much market share in the energy drink industry, which enables Red bull to keep the lead. They do offer diiferent flavors such as vanilla coke, cherry pepsi etc. Red Bulls line only has one flavor.

Much of Red Bull’s success comes down to the company’s sports marketing strategy. The strategy is aggressive and surpasses simple sponsorship. Red Bull wants to own teams and events. With its huge focus on ownership and brand management, it allows the brand to fully control how it is associated with that sport. The drink claims to improve some of the most vital attributes of successful sports people namely concentration, fast reactions and endurance. With respect to this, the brand values of Red Bull are closely aligned with many

From conducting this report it was found that Red Bull energy drink is facing some problems, the main one of which is the negative media that it has been receiving. However both primary and secondary research shown that negative publicity does not affect buyer behaviour to a great extent.

One of the leader in the energy drink market, Red Bull was created in 1984 by Dietrich Mateschitz and now produces an annual turnover of more than 3 billion Euros (Gschwandtner 2004). Red bull is an internationally popular energy drink that is intended to taste like mixed berries. Red Bull is packaged in a slim aluminium blue and silver container with two red bulls as the logo. It provides 8.3 US fl. oz. of thirst quenching power fluid and contains 80 mg. of pure caffeine; this energy drink combats mental and physical fatigue (Redbull 2011). Red Bull however, was not always Red Bull; this energy drink originated in Thailand and it was sold under the name “Krating Daeng”. For more than 20 years, Red Bull has managed to

Red Bull launched in 1987, it not only created a new brand, and it created the energy drink market. Red Bull not only tastes different, it has a noticeable effect on the drinker. Red Bull creates its brand equity for its products by making them memorable, easily recognizable and superior in quality and reliability. The Mass marketing campaigns also help to create brand equity.