Red Bull’s Innovative Marketing

Transforming a humdrum product into a happening Brand

• Red bull a trendy drink • Till 2005 Red bull was holding 70% of the market. Red Bull owned Jaguar Racing • Red Bull Racing as main team and Minardi as rookie team. Red Bull acquire Minardi • In 2006. .Red Bull Acquires Second F1 Team • In 2005. • Since 1987 Red bull was a close associate with sports.

000 with 49% stake each and remaining 2% were in trust for yoovidhya‟s son. • In spite of critics. Red Bull was launched with slogan “Red bull gives you wings” .• Dietrich Mateschitz Born in 1944 Background – Marketing degree from University of commerce in vienna – Worked with unilever and Jacobs coffee and as international director of Blendax in 1979 • Discovery of “energy drink” called Krating Daeng in Thailand • Approach to TC Pharmaceuticals owned by Chaleo Yoovidhya • Invested $500.

. • Regulatory Approval • Austria was first approval followed by many countries.Contd. • Top 10 carbonate Beverages in world . • Target customers were young professionals • By 1990 4 million cans were sold • US was a success too.

“gives you • Targeted at people who sought– Increased endurance. • Positioned as an energy drink that „invigorated mind and body‟ and improved endurance levels‟. gym goers. speed. college students.RED Bull’s Marketing Strategies • Company spent around 30% of its annual turnover on marketing. – Young individuals. • Slogan „Red Bull‟ wings”. . concentration and alertness.

• Unconventional marketing strategy created Buzz in more creative way. encouraged youth to party. .Stimulant or party drink for adventure seekers and risk-takers. • Company focused it as an “energy boosting” product. sponsored student parties.Creating Brand Image • Brand image . • Targeted “Generation Y”. organizations. used them as Brand Ambassadors. • Distributed free cases of drink.

Sponsored two Toyota teams in NASCAR‟s 2007 Nextel Cup in U. . Champ Car World Series. – SV Austrian Salzburg. hand-gliding. cliff driving and skateboard. rough-terrain biking. – New Jersey based MetroStars Major League Soccer team. • Association with Motor Racing – – – – – Deutsche Tourenwagen Masters (DTM). World Rally Championship. • Bought football club teams. KTM Factory Motocross Team.Red Bull’s Association with Sports • Organized sports events like kayaking.S.

• Sales Reps promoted Red Bull in Bars and Trendy Nightspots. • Developed „Mobile Energy Team Program‟. • Advertised in „Wipeout 2‟. .Promotional Activities • Employed Consumer Educators to spread message across to the general public. • Established an „exclusive‟ network of distributors.

• Packaging .Silver and Blue can carried a picture of two charging red bulls. • Purpose was to amuse viewers rather than educate them. • Stay focused only on one product.3 ounce around the globe. .Marketing Tools • Unique feature – Slim & tall Aluminum canisters of 250ml/8. • Used conventional advertising media only at the maturity stage.

Red Bull’s Connection with F1 • Sponsored Sauber team in 1995. • In 2005. acquired Minardi & built Scuderia Torro Rosso. • Used F1 as Marketing Tool. bought Jaguar F1 racing team from Ford and renamed it as Red Bull Racing. • Red Bull conducted Red Bull Junior Team (Europe) and Red Bull Driver Search (US). • In 2004. a proactive .

Controversies • Ingredients of the drink • Taurine – untested food product • Glucoronolactone – rumoured to cause brain tumours • RedBull as a “Mixer” with alcohol • An Adult drink as said by health activists • Suffering of severe after effects • Banned in a school in California .

. • Rockstar and Roaring Lion positioned themselves and direct competitors of Red Bull • Red Bull filed cases against Roaring Line and Monster. • Had spawned a spate of imitators in energy drink market. • Coke. Pepsi and Anheuser-Busch were also in the same league.Threats to Continued Success • Analysts were skeptical about the company‟s survival and growth.

• Another limiting factor was the nature of company‟s target students and young urban professionals . • Competitors introduced energy drinks in multiple flavors thereby adding variety. • Red Bull did not taste very good and this was a major threat to the company. the competition was tough as the local brands also started developing their brand of energy drinks.Contd… • In Europe.

a brand of still water. even though they introduced sugar free variant. • Also started chain of fast food outlets. • In 2005. test marketed a range of herbal teas. launched LunAqua.Contd… • Company had only one product which was another threat. . • In 2002.

• Major part of Red Bull‟s success as a company was its flexibility to take risks and market its products in ways publicly held companies would not. . • Brand had low resilience mainly due to its strong association to a single product.Contd… • Another project was a quarterly magazine in Europe. „The Red Bulletin.‟ • Red Bull ranked 7th among growing top 20 brands.

Sobe Adrenaline Sobe No Tab Energy 0% Rush Fear Amp 2% 0%0% 0% 0% 3% 6% 4% Full Share of Energy Drink Market (% dollar sales) 2006 Throttle 8% Rockstar 13% Red Bull 48% Monster 16% Rockstar 11% Full Throttle Xyience 2% Xenergy NOS 1% Amp 3% 4% VPX Redline 0% Red Bull 42% Monster 37% Share of Energy Drink Market (% dollar sales) 2012 .

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