Red Bull: Are You Ready for the Ride?

In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is

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.

Generally brand equity refers to the fact that various outcomes result from service or product marketing owes to its brand elements as compared to outcomes of other brand.”

This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

This report was written to assess the company Red Bull and their energy drink Red Bull Energy Drink, in a manner in which the market/industry, environment, competitors, customers, and the brand were all analysed by using secondary research. A SWOT analysis was also conducted. Through this research and analysing, it was found that Red Bull is the dominating leader in the energy drink market and sells the most units of its product worldwide. However the company does have close competitors in Monster Energy Drink and Rock star Energy Drink. Although Red Bull has massive internal strengths in being leader in the market share and sponsorship of events, it also has weaknesses in lack of innovation and diversity. Their

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.")

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, the well-known energy drink company, recently promotes its products using this attractive slogan, trying to make people believe they can do everything after drinking Red Bull. In the past, energy drinks were produced purposefully for athletes as an energy supplement after the mass training. In recent years, however, the energy-drink market in other social classes, apart from athletes, has grown exponentially as if it has turned into a kind of soft drinks (energy-drink consumption…). In Red Bull’s most recent advertisement, for evidence, their targeted audiences are obviously the public instead of the athletes only.

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.

After seeing the success that Red Bull has got in the energy drinks market, new brands are entering this market. Hence, it is essential for Red Bull to make certain changes in its marketing, production and

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 has made the management decision to market its products toward an older audience. Expanding the consumer base is a great, profitable opportunity for Red Bull. Expanding the market will increase Red Bull’s market share of the drink market, but only if the company does research to understand what the new target audience is looking for in their drink (i.e. healthy benefits, antioxidants, vitamins, etc.). Red Bull needs to find a way to differentiate itself from its competitors by finding a niche market that only Red Bull can provide in.

Given Red Bull’s success, it is unlikely that a change in the target market will be needed. Red Bull will thrive if they remain compliant and

Founded in the early 1980’s, by Dietrich Mateshchitz. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product; in fact it was the birth of a totally new product category. Today Red Bull is available in more than 167 countries and around 50 billion cans of Red Bull have been consumed so far (REDBULL Website, 2014). RedBull™ makes carbonated energy drinks with the claim that it will provide the consumer with a boost of energy to “vitalize the mind and body” RedBull’s tagline is “It gives you Wiiings”. This is a product that in the year 2014 sold over 5.6 Billion cans worldwide, giving people extra energy to get through their day, or to provide individuals with that extra dose of thinking power needed for an exam, or triathlon etc. RedBull™ energy drink ingredients consist of Caffeine, Taurine, B Vitamins, Sucrose & Glucose and water, but there are also other flavors now in the pipeline of products. RedBull™ was the answer to those searching for more of a pick-me-up that coffee or cola would provide.

Red Bull has a large market share in the energy drink market and it is one of the most popular energy drinks in the world, this may help us to increase the demand for the product and maybe develop a new product within the same brand.