A STUDY ON CUSTOMER

SATISFACTION AND
MARKETING STRATEGY
OF RED BULL
 Abstract
Red Bull can be called as a pioneer in the energy drink category
worldwide. In India too, Red Bull was the brand that created the energy
drink category. The brand came into existence in 1987. Red Bull Energy
Drink is a functional beverage. Thanks to its unique combination of
high-quality ingredients Red Bull Energy Drink vitalizes the body and
mind. Red Bull Energy Drink has been developed for people who want
to have a clear and focused mind, perform physically, and are dynamic
and performance-oriented whilst also balancing this with a fun and
active lifestyle. In short, Red Bull gives wings to people who want to be
mentally and physically active and have a zest for life. Red Bull is trying
to penetrate the Indian market to gain the highest market share but it's
facing so much competition from other company's drinks. In this project,
we try to find out what IMC plan Red Bull uses to become the number
one company in beverage in India. Red Bull is a version of a Tai drink
called Krating Daeng and now is a well-known energy drink market
leader. The product has developed a unified advertising communication
strategy to extend its target onlookers i.e. youth around the world. Value,
product, employment, and elevation are the major parameters of this
product’s marketing. Red Bull gives assurance to increase performance
throughout times of anxiety or tension. It will raise attentiveness recover
response speed and stimulate metabolic rate. This product refreshes the
body and improves concentration levels.
 CHAPTER-1
INTRODUCTION
Red Bull is an energy drink, not just a soft drink. It enhances endurance,
alertness, focus, and reaction time and was designed for times of
increased physical and mental stress. In summary, it gives the body and
mind vitality. A plethora of scientific studies have demonstrated the
efficacy of Red Bull Energy Drink, which is why it is favored by several
elite athletes, drivers, opinion leaders, and hardworking individuals
leading active lifestyles. The energy drink business is a clever one that is
always growing, evolving, and employing cutting-edge marketing
strategies. The market as a whole is younger, and some energy drink
companies target those who are health-conscious with their offerings.
Most energy drink makers target young adults and male teenagers,
primarily in their 20s, as their main market. Although it may seem like a
modest market, these prospective customers have shown a particularly
high level of receptivity to energy drink products thus far. Unlike the
soft drink market, which is dominated by big, powerful companies, the
energy drink sector is characterized by fierce rivalry between a greater
number of smaller businesses that serve a very specific customer.
Although the energy drink market is similar to other beverage markets in
several ways, there are some notable variances. Since the majority of
small businesses in the energy drink sector do not yet have a national
distribution, their advertising tactics are more targeted and narrowly
focused. Numerous energy drink manufacturers target very specific
consumer demographics with their goods, including hip-hop fans,
extreme sports fanatics, and video game players. Television
advertisements are the main form of advertising, if any, for the majority
of these energy drinks. A remarkable proportion of the three
corporations fund intense marketing campaigns and events to raise
product awareness among the target audience. Even though the energy
drink market is not as lucrative as many other prosperous beverage
industries, it is nonetheless growing because of prompt product creation
and innovation.

Additionally, the business started explicitly marketing Red Bull to

Generation Y, or "millennials," who were thought to be disenchanted
with conventional marketing tactics because they were born after 1981.
A portion of this concept called for hiring "student brand managers" to
advertise Red Bull on college campuses. It would be encouraged for
these students to host parties where Red Bull cases would be given out
(as if motivation was required!). After reporting back, the brand
managers would provide the business with low-cost market research
data. The term "viral" marketing refers to the application of this type of
marketing technique. It seems as though a business believes there is no
need for conventional persuasive or informational communications,
instead in the instance of Red Bull, the drink's appeal was increased
through the adolescent "underground."

History of Red Bull

Red Bull used a lot of the marketing and ingredient concepts from
Krating Daeng, a 1970s Thai energy drink. An Austrian businessman
named Dietrich Mateschitz created the Red Bull Energy Drink
trademark. The product, which is less sweet than Krating Daeng, was
first introduced in 1987 in a carbonated form. 1992 saw Red Bull enter
its first international market in Hungary, while 1997 saw the company
enter the US through California. Chaleo and Mateschitz were ranked as
the 260th richest people in the world in 2008 by Forbes magazine, with
an estimated net worth of $4.0 billion. Red Bull was first introduced in
Germany in 1994, and after experiencing great success there, it was
introduced worldwide in 1997. The Red Bull without sugar was released
into the market in 2003.

OBJECTIVES OF STUDY

1. To analyze customer satisfaction of the Red Bull energy drinks.

2. To examine the marketing strategies of Red Bull.

SCOPE OF THE STUDY

The study includes customers' responses and awareness towards the
brand, products, and services of Red Bull. The results are limited by the
sample size of 25 numbers and therefore the opinion of only selected
customers is taken into consideration. Mainly this study is conducted in
Hyderabad and the scope is limited.

SOURCE OF DATA COLLECTION

PRIMARY DATA
The data is directly collected from consumer consuming red bull through
questionnaires to know their level of satisfaction and the changes made
to improve the products.
SECONDARY DATA
The data is collected from various secondary sources like journals,
articles, newspapers, and websites.

LIMITATIONS OF THE STUDY

1. The sample size of the questionnaire is limited to 25 people as the
period was short.
2. The study is restricted only to the people staying is Hyderabad
3. Findings are based on a sample survey. The information collected
from the respondents may or may not be true because some
respondents may not be serious.
4. The project has been taken up at the undergraduate level and the
knowledge and experience of the student is limited, hence it may
not be professional enough.
 CHAPTER-2
REVIEW OF
LITERATURE

1. “Consumer based brand equity of red bull: a study on

customer satisfaction and loyalty” by Karim, azizul : This
article explores the relationship between customer satisfaction,
loyalty, and brand equity for Red Bull, utilizing consumer survey
data to analyze the factors driving brand perception and loyalty
among energy drink consumers.
2. The Impact of Marketing Mix on Customer Satisfaction: A
Case Study of Red Bull" by Ali, Muhammad, et al. - This study
investigates the influence of Red Bull's marketing mix elements,
including product, price, promotion, and distribution, on customer
satisfaction levels and brand loyalty, utilizing both qualitative and
quantitative research methods.
3. An Empirical Study on Consumer Attitude and Satisfaction
towards Red Bull Energy Drink" by Sivakumaran, Bharath
and Venkatesan, R. - This journal article examines consumer
attitudes and satisfaction levels towards Red Bull energy drink,
analyzing factors influencing purchase decisions and brand loyalty
among energy drink consumers.
4. Consumer Perceptions and Preferences of Energy Drinks: A
Review of Red Bull" by Chang, Yu-Kang - This literature
review article provides an overview of consumer perceptions and
 preferences regarding energy drinks, with a focus on Red Bull,
analyzing factors such as taste, packaging, pricing, and brand
image influencing customer satisfaction and purchase behavior.
5. A Study on the Impact of Marketing Activities on Brand
Equity: A Case of Red Bull Energy Drink" by Raj, Balaji and
Vohra, Neha - This research paper investigates the impact of Red
Bull's marketing activities on brand equity and customer
satisfaction, utilizing brand tracking data and consumer surveys to
assess the effectiveness of marketing strategies in enhancing brand
perception and loyalty.
 CHAPTER-3
COMPANY PROFILE

With its well-known tagline, "Red Bull gives you wiiings," Red Bull
GmbH has become one of the most recognizable energy drink brands
worldwide. The company retains the largest market share of any energy
drink company worldwide under the direction of Dietrich Mateschitz, its
creator and current CEO ("Top Energy Drink Companies in the U.S.,"
2019). In 1984, Mateschitz established Red Bull and introduced the
world-famous energy drink in Austria, where it is still headquartered
today.
Red Bull has sold 75 billion cans overall since its launch, and in 2019
alone, it sold 6.8 billion cans in 171 countries, bringing in $6.5 billion in
sales, according to Forbes magazine. "We are dedicated to uphold Red
Bull standards, while maintaining a leadership position in the energy
drink category when delivering superior customer service in a highly
efficient and profitable manner," reads the company's mission statement.
We foster an environment where staff members exchange best practices
aimed at mentoring and elevating our company to the status of employer
of choice (Ramos, 2012).
Red Bull energy drinks are popular globally among sports, professionals,
college students, and tourists. The company provides a choice of flavors
and editions of its energy drinks in order to cater to such a diverse
clientele. Apart from the first Red Bull Energy Drink, the company has
introduced a zero and sugar-free version. The flavors that have been
added most recently are peach, yellow, blue, coconut, green, orange,
pear, and red.

The company's marketing approach highlights Red Bull's

accomplishments and acts as a differentiator among rivals like Monster,
Rockstar, and Bang Energy. The brand uses its own extreme sports
events, such as the Red Bull Cliff Diving World Series, Red Bull Air
Race, and Red Bull Crashed Ice, as well as unique stunts like the Stratos
space diving project and a host of other sponsored events that are listed
on their website, to raise awareness.

The company's marketing approach highlights Red Bull's

accomplishments and acts as a differentiator among rivals like Monster,
Rockstar, and Bang Energy. The brand raises awareness through its own
extreme sports events, such as the Red Bull Cliff Diving World Series,
Red Bull Air Race, and Red Bull Crashed Ice, as well as unique stunts
like the Stratos space diving project. Additional sponsored events are
featured on their website.

SWOT ANALYISIS OF REDBULL

STRENGTHS

Market Leadership: Red Bull is already a global market leader within

the energy drink industry with the largest sale and largest market share.

Successful Marketing Tactics: Red Bull has been employing a lot of

promotions and well targeted campaigns/sponsorship which have greatly
helped the brand in past to expand and increase consumer brand
awareness.
Brand Name: Red bull is the worlds most popular drink and with
effective marketing tools product has created brand image.

Brand Quality: Red Bull did not achieve the success and gained
maximum market share only because of marketing tactics but product
quality has also shared in this success of the brand. Red Bull with strong
and fresh taste has become brand identity.

Weakness:

High Cost and Expensive Product: The price of Red Bull is very high
and is too expensive for an average person to afford it.

Lack of innovation and Unique Selling position: Within the industry

there are number of competitors who are utilizing innovation in product
and unique selling product. Red Bull, on the other hand, is less
innovative and doesn't use unique selling point. Reliant on Small
product and unique selling product. Reliant on small Product Base: Red
Bull is the only brand in the market with limited flavors and offers no
variety in the product. Being one brand product, it is difficult to capture
market.
Regulations: The relatively high caffeine content of Red Bull makes the
Brand highly vulnerable to regulatory control.

OPPORTUNITIES

Extension of Product: Since Red Bull is single branded product in the

market, there is an opportunity for it to extend its product line by
developing more innovative products. This will help Red Bull to retain
market share.
Hardcore Promotions and Advertising: Red Bull has not yet used
promotion and advertising and there is a opportunity for it.

Consumer Recognition using sports events Sponsorship: Sports

events are the best opportunity for Red Bull to recognize its product by
athlete and students. Sports events are not only in athlete but also in
students

EMERGING MARKETS: Emerging markets represent newer

geographies for Red Bull’s expansions. Accelerating the marketing and
sponsorships in these markets is a wise move.

THREATS

Health concerns: Red Bull has a high caffeine content in the drink
which if used in excess can be harmful. Moreover, in many countries
there are strict rules on the product which contains high caffeine.
Consumer Awareness of Health: In case of consumer awareness related
to health ,there is possibility that consumers give up the use or avoid the
use of Red Bull. Consumer may think Red Bull as an alternative energy
drink rather than natural drink.

Competitors: The presence of large and giant competitors can affect the
market position of Red Bull. (mainly Monster)

High marketing cost: Market maturity in developed markets will make

marketing to its core consumer harder than in the past. constant
communication with consumers means high marketing costs.