European Consumer Markets: Issues and Trends
Coursework 1 – Group presentation about:
Introduction of the company
Red Bull Ltd. is a very fast-paced company. Between the start of sales in Austria in 1987 and 2010 it has spread its activities to 162 countries worldwide (Red Bull, 2011a). It is present in all European countries, which enables this report to examine how Red Bull has to adapt its product and marketing to different cultures.
The Austrian entrepreneur Dietrich Mateschitz founded Red Bull in 1984, realising that the trend of drinking “tonic water” in Asia could mean a market niche in Europe. He discovered the drink Krating Daeng in Thailand and made a license agreement with TC Pharmaceuticals to market the product in Europe
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Besides the sport events Red Bull organizes many music and art events as well. The company’s world-wide music event called Red Bull Music Academy. For its 14th year, the Red Bull Music Academy is hopping around the globe, curating workshops, concerts, art installations, studio sessions, and parties in 10 exotic locales (Spin, 2011). Each national Red Bull has its own sport and music events like Red Bull City Shred or Red Bull Liszt Remix.
Sponsor activities
The company has more than 400 athletes around the world and they are the official sponsor of many teams such as the Red Bull Formula-1 Racing Team, the Red Bull Salzburg Football Team and the Red Bull New York Football Team (Red Bull, 2011f).
Products
Red Bull has adapted the product to the different necessities of the customers. The company offers the normal Red Bull energy drink for the majority of the customers, those who are just looking for a push of energy in a specific moment. The Red Bull sugar free is in the market for those customers that look for a healthy energy drink that does not generate a step back in their diet. With Red Bull cola the company opens the market for cola drinks lovers and can compete easily with cola soft drinks companies.
There also exist different Red Bulls for different situations. The Red Bull energy shot allows the customer to drink this energy drink very fast. It is useful for situations where is not easy to handle a can such as in the middle of a meeting or while the
• The Red Bull energy drink is a functional product developed especially for periods of increased mental and physical exertion.
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
With countless reports of people being hospitalized after chugging down a Red Bull and other energy drinks, the company fails to warn possible customers of the energy drinks potential negative side-affects. And only focus on the glamorous up-side of Red Bull. By not telling the whole story, Red Bull Corporation trick anyone viewing ads about Red Bull. Which is especially important to note when most Red Bull consumers are teens and young adults. The negative consequences of drinking to many Red Bulls, are heart attack and comas to name a
Red Bull targets only a particular segment of market and therefore makes its product only available at those places where the target can be reached. The energy drink can be bought at colleges, supermarkets and is mainly associated to extreme sports. In particular, the energy drink has also known a tremendous success in India, where the segment is the fastest growing in the category, due to India’s youth centric population and fast urbanization. Red Bull was actually the brand that created energy drink category in India (Docstoc, April 2012).
In 1982, Dietrich Mateschitz got an idea of functional drinks. He joined with Chaleo Yoovidhya, Thai businessman, in 1984 and founded the Red Bull, which today is 49 percent owned by Mateschitz, other 49 percent by Yoovidhya and 2 percent by his son Chalerm. Red Bull was first released into the Austrian market in 1987, which was the completely new product category, energy drink. (Red Bull, 2011)
The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing.
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.
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).
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).
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
Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.
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
The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis.
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.