Academia de Studii Economice – Faculty of Business and Tourism

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2017

RED BULL
IT GIVES YOU WINGS

Did you know that the top

selling energy drink ,Red bull, was
once a bizarre energy formula sold in
Thai gasoline stations and the
favourite drink of late night truckers? It
was then a working class drink for
Thai workers , but now transformed in
one of the world’s most powerful
brands , commonly associated
with extreme sports and athletics. I
choose to speak about the energy drink
Red bull because I often drink it ,
especially when I have the exams.

So , in my circle of friends , Red bull is consumed by them , too. On the other hand , other energy
drinks appeared on the market , but no one has the same taste as Red bull has. I asked my friends , in
order to write this project , what energy drink from these new , like Rienergy , Burn and Tiger and Red
bull they choose to drink and , without any surprise , they pick Red bull.

Now , I woder why ? Maybe because it has a past ? Or just because the firm’s name sounds
interesting ? Is it about the taste ? The image ? Mhm ... I think is the time to find out why Red bull has
such an strong impact on people and how they succeed.

HOW IT ALL BEGAN

It all started in 1970 , when Chaleo Yoovidhya , with a Thai business , was seeking to offer for working
class Thai laborers a low-priced energy formula. In Thailand , the product become a huge success because
of the sponsorship of boxing matches and sports events. The drink was called ” Krating Daeng ” in
Thailand , which means " red gaur " in English. Despite this success , Red Bull was exposed to the
rest of the world in its current form in the late of 1980s.
 Academia de Studii Economice – Faculty of Business and Tourism

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Austrian
entrepreneur
Dietrich Mateschitz
found the bizarre
energy formula
while was on
holiday in Thailand.
It was found as a
hangover cure.

He went straight to Thai company’s leaders and gave them an offer that they could not refuse : a
49 percent share in the company , only if they were willing to gave him the formula and expand it
internationally . They gave the remaining 2 percent to Yoovidhya's son , Chalerm , but they were
agreed that Mateschitz would run the company.

Mateschitz also created the formula

of Red Bull Energy Drink in the mid
1980s and also developed the unique
marketing concept of Red Bull. For
the very first time , the energy drink
was sold in its home market Austria in
1987 , on April 1 .
 Academia de Studii Economice – Faculty of Business and Tourism

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( Chaleo Yoovidhya’ s son – Chalerm , wearing clothing with Red Bull inscription )

The Red Bull headquarters are based in

Fuschl Am See , not far from Salzburg , Austria.
This was not only the launch of a completely new
product , in fact , it was the begginning of a totally
new product category.

Such product is now available in 171

countries and around 62 billion cans of Red Bull
have been consumed so far.

To the right we can check out the first

ad of Red Bull : ” Red Bull : So awesome that
polka dots will literally fly off your tie ! ” ,
appeared in 1987 , on 17th April .

What exactly does "Red Bull gives you wings" mean?

Red bull’s marketing permeates the action sports world. So , in other words , the energy drink
wants to be synonymous with excitement and risk-taking. By giving you wings means that you have the
ability to fly. Here it means drinking redbull will make you fly will and give you the courage to
accomplish the biggest dreams you have.
 Academia de Studii Economice – Faculty of Business and Tourism

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11,865Employees
At this time ?

 11,86
Employees

Red Bull employeed , until the end of 2016 , around 11,865 people in 171 countries in
comparison with the end of 2015 , when they had 10,997 employees in 169 countries , as their company
announed.

 In 171
Countries around the world

In terms of further expansion , Red bull is targetting the core markets of Wesern Europe and the USA
and groth markets in the Far East , while is also focusing on the world wide roll-out of the Red Bull Editions.

 + 6 Billion
Cans sold

World wide in 2016 were sold a total of 6,062 billion cans of Red Bull , that represents an increase of
1,8% against an already very successfull 2015. Company turnover exceeded the 6 billion Euro mark for the first
time , increasing from EUR 5,093 billion to EUR 6,029 billion. The principle reasons for that positive figures
include outstanding sales in the markets in Chile ( +28% ) , Scandinavia ( +13% ) , Poland ( +13% ) , the
Netherlands ( +12% ) and South Africa ( +10% ) combined with efficient cost management and ongoing brand
investment.

ENVIRONMENT
 Academia de Studii Economice – Faculty of Business and Tourism

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Exists an environmental factor that posiblly affect the brand Red Bull , we are talking about the
polution. A environmental agency published in 2009 a list wchich included the top 10 of companies which
were awarded the biggest fines for waste activity , Red Bull being one of them. So , in a natrual way , Red
Bull’s global distribution and production need energy , that is causing an environmental impact.

Because of the recycling problem , awarded fine with £260,000 , Red Bull takes their responsability and
improved the recycling system.

Let’s see how they did it!

RECYCLING CANS

Red Bull’s cans are made from aluminium. That was an usefull idea because , nowadays , the cans
weigh more less than some years ago.

It is a good thing because it

saves significantly raw materials ,
too. They are collected and fully
recyclable over and over again
without changing the quality.

They are melted down and

reused an infinite number of times.
Using this material comprises a
95% saving in energy in
comparison with the use of new
aluminium.

This constantly decrease in weight makes the difference , just like that : the less aluminium goes
first into cans , the smaller the carbon footprint. So , in 3 words , EVERY CAN COUNTS! The world’s most
recycled drink package is this can. This is possible only if the cans are collected at time and introduced in
recycling system. Because if you let it littering the landscape , it would be too late for a fulfill recycling
potential.

In some regions , still a problem is littering. But you can prevent this by making sure you put your
can in a recycling bin. By doing this you are also keeping the landscapes clean , you are incresing the
recycling rates and reducing energy consumption , too.
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WALL-TO-WALL PRODUCTION

Because of the Wall-to-Wall production , more than 12,700,000 km of truck travel are saved in every
year.

This implementation means that the cans are produced and filled on the same site , which help
saving many miles of transport. Problem solved : no empty cans to the fill up plant , no more footprint.
This saves 9,687 tons of CO2 emission per year.

The manufacturing base of Red Bull is placed in Europe . Its advantages are : the same product
quality all around the world ( the ingredients , for example locally sourced alpine water ) , preserving
natural resources by new enhancing technologies and also the energy that provines from the region .

TRANSPORTATION

Transportation of cans beggin from Austria to Switzerland than to

the other countries. Cans travel long distance , when it is posible even on
ships and rail. The can is the ideal transport package , so it is easily
transported because of the low weight and small size and form.

It saves
aproximately 40%
in track loads in comparison to glass bottles and
pet bottles.

COOLING
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Red Bull installed over 780 , 000 ECO coolers instead of conventional coolers already , because it
uses up to 45% less energy. This new way of cooling is avoids greenhouse gases.

MICRO-ENVIRONMENT

Factors from micro-environment are suppliers , customers , competitors and other substitute
products. Red Bull has done an agreement which said that their regular and loyal suppliers provide the
ingredients in need to produce the products.

Taking into consideration the targetted clientelle , the customers are the ones that the product is
obviously designed for.

On the market , the competitors are those which are behind the Red Bull. They can only affect
them through the pricing , content and taste differences. These are the main factors that Red Bull has to
consider when marketing , created and pricing the drink. On the other hand , Red Bull has an advantage in
comparison with cheaper energy drinks , like the ones from supermarket branded , because they are
often packaged in a less appealing manner.

MACRO-ENVIRONMENT

In a political way , Red Bull is no 1 energy drink on the market worldwide. Even they are known ,
they are also watched to make sure that they respect the legal standards. Red Bull company includes
many departments which have specialization in different aspects , keeping the business running without
problems and intreruptions. Every department has to ensure that they respect the own legal procedure .
For exemple , the finance department has to be in charge to pay the taxes daily and as well the personnel.

Legal , in order to sell the drinks in stores , Red Bull has to respect the legal requirements for every
country where the product is available in. The drink should be safe for human’s consume , any adverse
side effects like vommiting or irritating not appear at consumers. Th ingredients and the procentages of
them must be stated on every can. It is a must and a legal requirment to avoid consumers having
problems and any other problems that possibly start from there , like rumors or law suit , that can also
generate bad pess.

From an economic point of view , the biggest problem Red Bull and other companies can meet , is
infation. That happens when supply of money in the economy is too high in line with the goods and
services. Red Bull has to increase the prices to keep the business in a good shape , also the cost of the raw
materials for production will be increased ,too.

Taking into consideration the social factor , this energy drink has been blamed for the unepected
death of a basketball player. It is said that he consumed a can of Red Bull before the game and he suffered
a heart attack. After this , the company was being sued for $85million . Here you can find the article :
http://www.nydailynews.com/new-york/brooklyn-man-killed-red-bull-85-million-suit-article-1.1498452 .
 Academia de Studii Economice – Faculty of Business and Tourism

Pop Cristina
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2017
After a meticulous documentation , it showed that the energy drink contains a high procentage of caffeine
and that people should stop consume this drink. The countries that have listened to that were France,
Norway and and they acted by banning the product. All of these leded to giving a bad reputation to Red
Bull.

The last one , but one of the most important factos is the techonlogic one. Red Bull is known for
their unique marketing techniques. They have to pay amounts of money to the women and men , due to
the dangerous situations they face in order to promote the brand. A big impact in making the adverts
become seen and recognised by the entire world it has the websites , Youtube and social networking
sites , like Facebook and Twitter. It is an easy and free way to promovate the brand , but it also can be
seen by the targetted audience of active sport persons with ages between 14-34 .

PURE ADVENTURE SINCE THEN

Red Bull developed all along unique engagement activities. These activities have the power to
inspire and to fascinate the word of mouth and to create a 360 global degree media business. In 1989 ,
the first motorsports athlete was Gerhard Berger and was sponsored by Red Bull when he won his first
Grand Pirix in Mexico.

The first Red Bull Flugtag was in 1992 and in order to participate you have to create teams of
everyday people with homemade flying machines . They were judged by the flight’s distance and the
team’s creativity.

The first international athletes who join

the Red Bull roster were the windsurfers Bjorn
Dunkerbeck from Netherlands and Robby
Naish from USA , in 1994.

In 1995 , Red Bull made a partnership for 10 years with Formula 1 Grand Prix and it purchased a
majority share in the team. In the same year , Martin Freinademetz won 2 ISF World Championships in
snowboarding.
 Academia de Studii Economice – Faculty of Business and Tourism

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1997 was the year of Red Bull Cliff Diving , which means three seconds of freefall combined with
jaw-dropping acrobatics.

In Berlin , in 1998 was held

the first ever Red Bull Music
Academy . This event shape the
future of producers, singers and
DJ’s.

Red Bull sustains FELIX

BAUMGARTNER who broke the
record : 8 seconds of freefall at
over 170 km/h down the face of the former world's tallest building - the highest ever B.A.S.E jump.

Belgium’s Red Bull Soapbox Race , in 2000.

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1st Red Bull Crashed Ice , powered by Red Bull in ,

where athletes from around the world flocked to
Stockholm for the inaugural race – wearing hockey skates.

Also the inaugural Red Bull X-Fighters event held in

Valencia in 2001 was the first example of an all-new and
innovative event concept mixing the extreme sport of
freestyle motocross with the region’s local bullfighting
tradition.

RED BULL AIR RACE : This Red Bull’s

activity is based on combining elements of
aerobatics with the challenges of a race.

In November 2004, Red Bull purchased the assets of Jaguar

Racing and in 2005, David Coulthard was hired to lead the team
on the track. In that first Formula 1 season the second car was
shared by two Red Bull junior drivers.
 Academia de Studii Economice – Faculty of Business and Tourism

Pop Cristina
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2017

RED BULL RECORDS : Red Bull Records

is a forward-thinking music company that takes a
progressive approach to marketing, distribution and
artist relationships. Red Bull Records artists
influence and push popular culture forward.

1ST FORMULA 1 WORLD DRIVER'S & CONSTRUCTOR'S

CHAMPIONSHIP : Red Bull Racing won the 2010 Formula 1
Constructor's Championship after the team´s eigth victory of the
season in the Brazilian Grand Prix at Interlagos. Sebastian Vettel
won the 2010 World Driver's Championship by dominating the
final race of the season from his tenth pole position of the year.

RED BULL STRATOS - Felix

Baumgartner (AUT) and his team of
experts managed to fly supersonic
after a jump from one of the biggest
helium balloons ever from 128.000 ft. This
mission contributed important
scientific date to make space missions saver
and developed a new generation of Space
suits. The entire world was watching. This
happend in 2012.
 Academia de Studii Economice – Faculty of Business and Tourism

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MAX VERSTAPPEN CLAIMS HISTORIC

VICTORY IN SPAIN on his debut for Red Bull
Racing at the Spanish Grand Prix in 2016.

DANS LES ABYSSES @ RED BULL

MUSIC ACADEMY MONTREAL : A custom-built
soundsystem diffused a specially commissioned
work by Lorenzo Senni, a live set by
Dopplereffekt and an all-Drexciya DJ Stingray
set through a network of speakers located
under the water, at the surface of the pool and
in a dedicated dancing space – making for a
one-of-a-kind event at the Red Bull Music
Academy 2016.

PRODUCT
Red Bull has expanded their product line
from the original Red Bull Energy Drink to Red Bull Sugarfree, Total Zero, Energy Shot, and most recently,
Red Bull Editions. Red Bull Editions is their line of fruit flavoured drinks which include cranberry, lime, and
blueberry. Red Bull products continue to gain popularity with an increase in product sales of 12.8% in
2012, resulting in 5.226 billion cans sold worldwide (Red Bull, 2013).
 Academia de Studii Economice – Faculty of Business and Tourism

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The key ingredients in Red Bull are caffeine, B-Group vitamins, sucrose, glucose, taurine, and Alpine
spring water. With ingredients like taurine and caffeine and the proliferation of energy drink
consumption, Red Bull and the entire energy drink industry have come under scrutiny due to health
concerns.

As a result, new regulations on the sale of energy

drinks are an ongoing concern for companies like Red Bull.
Red Bull’s product line has also widened to include
merchandise that is adorned with the company name such
as hoodies, hats and shirts, due to their involvement in
sponsoring athletes and events.

MARKET SHARE
Red Bull continues to dominate as the energy drink leader, but Monster has experienced huge
growth in the last few years.

USA Top Selling Energy Drink Brands

Although the energy drink market grew in 2014 with all the major brands showing increased
sales as well, the data above doesn’t reflect this. This is due to IRI² not having access to certain retailers’
sales data.   Pre-2013 data does not include Walmart sales so most numbers would be higher with that
factored in. 2009 sales data is unavailable.

The top Monster drinks are: Monster Energy, Java Monster,

Monster Mega Energy, and Monster Rehab.In case you didn’t read
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that correctly: Red Bull sold US$3.4 BILLION dollars of energy drink product in the 52 weeks prior to July
2013. Monster sold US$3.1 BILLION worth.

That’s fine for the USA, but many have been wanting some data for the worldwide energy drink
market. Here are the Worldwide Top 15 Energy Drinks based on worldwide sales figures here’s how the
energy drink brands stack up worldwide.

In conclusion , Red Bull becme a brand that is associted with extreme sports and adventure. It
was growing rapidly in popularity. It transforms from a simple drink or Thai truckers into the world’s most
well known sports drink. I think Red Bull’ s success is undeniable , no one can say otherwise. Let’s just
think about that if it were not for that trip in Thailand , that hangover and an unique partnership between
that two strangers , this best selling energy drink may have never been discover and get into the global
market.