Red Bulls Innovative Marketing

Transforming a humdrum product into a happening Brand

Red Bull Acquires Second F1 Team

In 2005, Red Bull acquire Minardi In 2006, Red Bull owned Jaguar Racing

Red Bull Racing as main team and Minardi as rookie team. Since 1987 Red bull was a close associate with sports.
Red bull a trendy drink Till 2005 Red bull was holding 70% of the market.

 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 $500,000 with 49% stake each and remaining 2% were in trust for yoovidhyas son. In spite of critics, Red Bull was launched with slogan Red bull gives you wings

Contd..
Regulatory Approval Austria was first approval followed by many countries. Target customers were young professionals By 1990 4 million cans were sold

US was a success too.

Top 10 carbonate Beverages in world

RED Bulls Marketing Strategies

Company spent around 30% of its annual turnover on marketing. Positioned as an energy drink that invigorated mind and body and improved endurance levels. Slogan Red Bull wings. gives you

Targeted at people who sought Increased endurance, speed, concentration and alertness. Young individuals, college students, gym goers.

Creating Brand Image

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

Red Bulls Association with Sports

Organized sports events like kayaking, hand-gliding, rough-terrain biking, cliff driving and skateboard. Bought football club teams.
SV Austrian Salzburg. New Jersey based MetroStars Major League Soccer team.

Association with Motor Racing

Deutsche Tourenwagen Masters (DTM). KTM Factory Motocross Team. Champ Car World Series. World Rally Championship. Sponsored two Toyota teams in NASCARs 2007 Nextel Cup in U.S.

Promotional Activities

Employed Consumer Educators to spread message across to the general public. Developed Mobile Energy Team Program. Advertised in Wipeout 2. Established an exclusive network of distributors.

Sales Reps promoted Red Bull in Bars and Trendy Nightspots.

Marketing Tools

Unique feature Slim & tall Aluminum canisters of 250ml/8.3 ounce around the globe. Packaging - Silver and Blue can carried a picture of two charging red bulls. Used conventional advertising media only at the maturity stage. Purpose was to amuse viewers rather than educate them. Stay focused only on one product.

Red Bulls Connection with F1

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

Threats to Continued Success

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

Contd
In Europe, the competition was tough as the local brands also started developing their brand of energy drinks. 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. Another limiting factor was the nature of companys target market- college students and young urban professionals

Contd

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

Contd

Another project was a quarterly magazine in Europe, The Red Bulletin.

Red Bull ranked 7th among growing top 20 brands.

Brand had low resilience mainly due to its strong association to a single product. Major part of Red Bulls success as a company was its flexibility to take risks and market its products in ways publicly held companies would not.

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