Marketing Communication: Research and Planning
Spring exam 2012
Red Bull – The Anti-brand brand
Question 1:
Red Bull was launched in Austria in 1987, and in the 25 years that has passed since then, many things have happened that could and should affect the way Red Bull markets and brands its product as opposed to how it was done in the years after the launch.
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
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Red Bull has from its launch in 1987 used buzz marketing to promote their product, and in a sense viral marketing is just an upgrade of the buzz marketing of the 1980s and 1990s. Both strategies are primarily defined by the fact that they rely heavily on peer-to-peer communication to spread word of the product and create buzz. However, where Red Bull had to physically plant their product in the club environment (Kumar et al 2005: 5) and at extreme sports events, viral marketing takes less effort in that the “planting of the product” is no longer a physical act, but a virtual one, where the product is featured in for example a Youtube video or in a Facebook fan-group. It is the emergence of the social media, Facebook, Twitter, Youtube etc. that has allowed for viral-marketing to become so popular, and it has proven that if used right, it can also be very efficient in creating buzz. Even though viral marketing still seems like a fairly new phenomenon it actually began to pop up 10 years ago, before Facebook and Twitter, and in the beginning it was mainly blogs and personal websites that could help spread the word and create buzz about a product (Silverman 2003). Viral marketing has indeed become the new black in the marketing world, but
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
Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.
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.
Each year, the PBR or Professional Bull Riders provide a venue for some of the best bullriders to ever grab the bull by the horns. This is the 23rd year for the Bull Fighters Only events. This tour begins the year in January and continues throughout the entire year. This year-long extravaganza of elite riding is what bull riders love. They're matching their strength and stamina against the bull to see who comes out on top.
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.
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.
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.")
Red Bull is a privately owned company, producing and distributing the Red Bull energy drink to more than 165 countries worldwide. The company was founded by Dietrich Mateschitz in Austria in 1984 and launched Red Bull onto the Austrian market in 1987. Since then more than 35 billion cans of Red Bull have been consumed. Red Bull employs over 8,900 people throughout the world, its corporate headquarters are located in Fuschi am See, Austria. (N/A, 2012).
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
Red Bull has various opportunities for growth within its current state. One of the leading opportunities is the production side of Red Bull. If it expanded its production on a more regional basis, such as one in a North America, Europe, and Asia it would be a larger upfront cost, but, in the long run, would cut down shipping costs leading to higher profit margins. Another opportunity is expanding to the Asian market, According to Euromonitor, Asia has surpassed the United States as the largest consumers of energy drinks, mostly due to its overwhelming population comparative to the United States, yet, Red Bull has the smallest share of the market in Asia compared to the other 6 continents. Expanding its market share in Asia could lead to a huge increase in net sales for the company. Lastly, the biggest opportunity for growth is if Red Bull can find a way to diversify its drinks into different markets, such as soft drinks, health drinks, and even possibly tap into the sports drink industry and be able to compete with brands such as Gatorade and Powerade. In order to do this, Red Bull must change its drink formulas, to allow for the needs of the consumer in each of the different markets. More often than not the main cause for a company investing in a new growth opportunity is due to a threat from competitors encroaching on the company’s current profits.
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
Red Bull has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and
While working on this report, we tried to figure out the best way to go about completing a consumer analysis for Redbull. Initially, we were confused as to what to tackle first: the marketing strategy or the consumer profile? We figured that both the marketing and the communication strategy of Redbull in Pakistan were based on— or rather for— a very specific type of consumer. So our first task (in order to understand this consumer type, as well as the dynamics of Redbull’s marketing strategy) was to review the nature of the product, and establish a consumer profile for it.
1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future?
The brand came to India in 2003. Although the brand has been keeping a low profile compared to the Cola majors , Red Bull has created a category of