Strengths: Red Bull’s marketing strategies focused primarily on selling their energy drinks to young consumers, and extreme sports athletes. Adolescent and young adult consumers are often risk takers and are willing to consume anything that will make them feel alive and energized. “To build brand image, Mateschitz used grassroots sales tactics that got college students and night clubbers to roll over in sweet surrender, like puppies awaiting chest rubs” (Lidz). Red Bull’s sports event marketing on professional athletes created the gateway to their successful branding strategy of only allowing popular sports companies, such as Formula 1 Racing, to wear their logo as an official sponsor. This is as opposed to Monster Energy Drinks, where …show more content…
Weaknesses: One of Red Bull’s primary target markets are young athletic consumers. However, there are serious side effects that occur, especially among student athletes who consume energy drinks before, during, or after a game: “In 2010, four high school football players from Orange County (Calif.) were hospitalized with persistent tachycardia, or rapid heartbeat, after consuming heavily caffeinated drinks before a game” (“Health Experts…”). Since Red Bull launched in 1997, health concerns about energy drinks have been expanding consistently among the public. Although they are completely aware of the growing concerns, the company still targets and encourages athletic consumers to purchase Red Bull energy drinks, thereby potentially putting themselves and their consumers’ health at risk.
Red Bull prides itself on its marketing techniques and they owe much of their success to how they advertise and promote their brand. Nonetheless, Red Bull has revealed that 40% of all their revenue goes to marketing and advertisement. In 2013, Natalie Zmuda wrote, “the brand spent $73 million on measured media in the U.S. last year, according to Kantar Media” (Zmuda). Considering that the article is two years old, Red Bull is most likely spending much more than this, and this is on media advertisement alone. This is revenue that could potentially be going towards creating a new product to sell. The company has already made its mark on society,
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 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.
Ever since Red Bull entered the market in 1997, there's been a boost in the sales of these caffeinated energy drinks. These are marketed to increase energy, aid weight loss, improve stamina, concentration, and athletic performance, some even claim to give you superpowers. But not a slight hint is given to the consumers about the high caffeine amounts in them which can lead to serious consequences in both adults and
These manufactures will grab young people attention who are in need to increase and improve their concentration, reaction speed, and emotional state; but they fail to acknowledge the side effect of their products, such as being very tired after several hours of “sugar rush”. An over dosage of Red Bull cause a twenty-eight years old man to have a heart attack (Richards), this incidents is one of many that prove to us that this dangerous products should be banned from super markets and other easily accessed places for younger generation.
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)
Red Bull energy drink competes in the Non-alcoholic drink market which could be the overall Food and Beverage market. ‘Red Bulls target market is young, on the go, who enjoy extreme sports and live an active nightlife, anywhere from 18-35’(Swartz,Jon).
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 receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.
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
How can Red Bull possibly afford all this? Well, they do the opposite thing most brands do. Most brands spend a tiny bit on content, and then 10x as much on media to try and spread that content as far as possible, because people aren’t really that interested in what they
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’s marketing strategy is one of the key factors in their success, they created Mobile Energy Team
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
Their slogans, “Red Bull Gives You Wings” and “No Red Bull, No Wings” have also proven to be a staple in their brand presentation for many years (Red Bull). While Red Bull is still dominating the industry, they may have some untapped resources in their marketing strategy and product presentation. While the brand is known throughout society they have the ability to reach a larger audience without losing the identity that the brand was built on. In the United States specifically, Red Bull could appeal to American athletes and consumers by sponsoring well-known athletes outside the extreme sports industry.