...Q.1: Advantages: Red bull uses unique marketing methods such as the free sampling in popular spots offered by logoed cars. They have selective venues for a good, exclusive focus. The student brand manager concept familiarizes entire campuses with the brand, the brand managers recruitment system itself being selective (and requires the applicants to be very familiar with the red bull brand). Disadvantages: First of all, some markets are overflown due to the rather selective targeting of red bull. More importantly, the targeting of colleges, while emphasizing the fact that Red Bull mainly targets athletes and people in need of energy, cause some dissociation considering the very high association of red bull and alcoholic drinks in student environments. This, combined with the many health concerns regarding the mixing of caffeine and red bull, causes major criticism of the brand. Q.2. Red bull could have dealt with such rumors by bringing emphasis to the fact that health authorities such as the FDA never actually proved that red bull and alcohol was harmful. Moreover, their omission of particular ingredients such as ephedrine and guarana should be put forward. In a global point of view, they should put forward the fact that correlation (of health hazards and the drink) does not imply causation. Finally, a stricter control regarding the distribution of products on campuses and how they are consumed and used should be a priority for Red Bull if they really want to remain true...
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...Introduction to Marketing (MKT333) Case Study #4 Red Bull GmbH is a privately-owned company based in Austria. Red Bull energy drink is based on the Thai energy drink, Krating Daeng (Thai for Red Bull), first produced in Thailand by the T.C. Pharmaceutical Company. The formula became popular as a tonic for blue-collar workers in Thailand. Red Bull Beverage Company Inc. became a subsidiary of the T.C. Pharmaceutical Company in Thailand in 1984 and Red Bull GmbH began marketing Red Bull in Austria in 1987. One millions cans were sold in Austria during the first year of production. The original formula was adjusted for “western” tastes adding sugar and carbonation. Its unique selling proposition was increased stamina and mental concentration relevant to its initial target market of long-distance truck drivers. Red Bull was introduced to the U.S. in 1997 focusing on four western states: California, Oregon, Texas, and Colorado. While the target appeal was initially to athletes, it soon became clear that Red Bull had a special appeal to young, white-collar workers looking for endurance for after-hours “clubbing.” The club scene developed Red Bull as a very popular mixer with vodka. Red Bull has expanded their product line from the original one can, one size, one label, one sticky-sweet liquid energy drink to Red Bull Sugarfree, Total Zero, Energy Shot, and most recently, Red Bull Editions. Red Bull Editions is their line of fruit flavored drinks which include cranberry, lime...
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...1. A critical thinking issue that becomes present in the case is how Red Bull has been marketing their brand in the past and present. It can be hard to think that the way that they market themselves is smart or not in the long run. 2. Some different types of marketing that Red Bull has been doing recently is that the company started off promoting their products on the streets at major events by having cars driving around with a large Red Bull can on top and handing out the products to those that walk by. Another marketing that they are using is that they have been putting out a magazine that is just related to their products and advertise those that believe and sponsor the brand. Sponsorship is a major part of why Red Bull has had a growing brand loyalty; they have been part of the Red Bull Music Academy, which helps up and coming and well established musicians be able to grow. While Red Bull has no say into what is made or done in the academy their products are the main product offered to the academy. All of the marketing that Red Bull has been doing over the years has been popular because it is nontraditional compared to other brands. They are able to grab the attention of consumers not only with traditional ads on the different types of media but also by what they do to interact with consumers in person. 3. Communication goals that Red Bull marketing conveys is that they are more than just an energy drink company. They believe in more than just what is surface level...
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...Original Red Bull Marketing * Develop red bull mystique by placing empty red bull cans in clubs and bars to create the illusion of popularity * Build buzz about the product * Targeted in shops, clubs, bars, and stores * Targeted “Opinion leaders” (that influence consumers purchases) * Red Bull found available at sports competition, in limos before award shows, and at exclusive after-parties * Advertising * “Red Bull vitalizes body and mind” (Use of Dracula, informed by doctor that his teeth will have to be removed) -> Adult Cartoon * Target group: anyone with a sense of humor, no matter how old (wide) * “Red Bull gives you wings” * Clearly communicated product benefits without promising specific physiological results * Sampling * At concerts, parties, sporting events, campus libraries * Event Marketing * Classic E.G. Red Bull Soapbox Race and the Rull Bull Flugtag (Flying Day) * Sporting Events E.G. Red Bull Snowthrill extreme skiing competitions in France and Alaska/ Red Bull Cliff Diving World Tour Finals event in Hawaii * The more unique an event, the more likely tv stations would want to broadcast it, or newspapers would want to cover it, thus Red Bull gets automatically into media * Qualities Red Bull wanted to project in its brand personality: * Innovative, individual, non-conformist, unpredictable, humorous Marketing Steps in the UK 1. Company marketed...
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...international market selection process? Red bull has consistently worked on growing international sales. Red bull has a well developed network of local subsidiaries set up in key markets to oversee distribution in any given region. Instead of targeting largest distributors with greatest reach, red bull targets small distributors who often become exclusively red bull distributors. Small independent venues are also the first targets. Red Bull does not use traditional market the local subsidiaries are responsible for local marketing content such as oral marketing, bill boards and radio. Q2.Which changes would you suggest for red bull’s future global marketing mix in order to make future challenges? Have an ability to gain new customers and retain current customer loyalty: With Red Bull’s target market currently aimed at the Generation Y’s (15 – 30 year olds) there is the question of whether this generation will continue to drink Red Bull as they grow older. And will the next upcoming generation accept this product as their own. They should segment the market in two difeernt ways, one relating to the youth. Second to the older generation Have Health and Social Implications: Due to growing pressure on organisations in society, Red Bull now promotes their product with current societal and health issues in mind. Childhood obesity and type 2-onset diabetes has become a major issue across western developed nations. By introducing ‘sugar free’ Red Bull will open up a new opportunity to...
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...Red Bull Case Study July 13, 2012 Red Bull was credited with creating the energy drinks category and is a market leader in USA and European markets where is present. Essential to Red Bull’s success was the use of word-of-mouth marketing and the fact that they were seeking to break the traditional rules of marketing by reaching consumers in innovative ways. Red Bull are using pull marketing extensively. This approach involves getting consumers excited about the product and conveying this excitement to their family and friends. It is also about trying to get coverage of their events in the press. This coverage can encourage consumers to find out more about the product. It helps to generate momentum, through creating interesting stories for people to talk about, which in turn help to create brand awareness and grow sales. The company also uses consumer education teams that go around and talk to people one-to-one about the product, handing out free cans of Red Bull. This helps to create consumer interest in the product. As people experience the drink and appreciate its qualities, they become advocates for the brand. They share their opinions with other consumers when they talk with friends. The promotion therefore creates a domino effect. Through its sponsorship of extreme sports events, it developed a movement among marketing-wary targeted age group of 18 to 29 years old, who perceived it as an anti-brand. By playing on associations with danger, energy and extreme adventure-related...
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...Statement Problem Red Bull GmbH faces many challenges in the functional drink market. RUFTS Marketing Consultancy will take a closer look at these challenges with a particular focus on the SWOT and PESTLE analysis as it pertains to the current market challenges as described in the Bahria University case study. Objective The objective is to provide a clear strategic recommendation to the Red Bull executive committee on the best course of action for the company based on the current market challenges with strong consideration of theories as outlines and described by marketing scholars and academics. Contents: CAGR (Compound Annual Growth Rate) - The year-over-year growth rate of an investment over a specified period of time. Competitive Advantage - a condition or circumstance that puts a company in a favorable or superior business position Corporate Planning Tool - A variety of analytical tools and techniques are used in strategic planning Coup A quick, brilliant, and highly successful act; a triumph. Crux A critical point of discussion or situation. Dire Worst possible case scenario. Disposable Income Group - The amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy Domestic market A domestic market, also referred to as an internal...
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...you think Red Bull would write its mission statement? How would you write it? Red Bull’s mission statement is to bring people to products and give them energy, targeting a diverse range of people, including athletes worldwide. 2. Has Red Bull identified the best target market for its product? What other market segments might the firm target? At first, Red Bull has been popular in truck drivers and rice farmers for twenty years. People who work in these two jobs are often required to work for long time. This caffeine-rich energy drinks can make them be able to keep awake during working, that’s why Red Bull has been popular in them. Now, Red Bulls are popular in treaty youngsters. Red Bull build the images of the brand and attractive customers to the product. Red Bull claims that they didn´t bring the product to the people but make it available and customers will be attracted and come by themselves. For examples, someone thinks Red Bull is sexy and delivers on the energy. By their promotion efforts, sponsoring athletes and holding some events, Red Bull have been attracting customers who meet the value, attitude and lifestyles that Red Bull´s brand images shows. By the images Red Bull has built for the brand, they might target on people who love sports and need to be energetic not only while working. As Red Bull’s new strategy is to get a new generation of 16 year-olds on board every year, they might view young generation and students as their target market. Red Bull is also...
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...internationalization process of Red Bull from the perspectives of global expansion Group 2263: Karakawat Sarasalin 830117 Thitiporn Watthanachai 831031 Supervisor: Jean-Charles Languilaire 23rd November 2009 1 Abstract Date: 23rd November, 2009 Level: Master Thesis in International Business and Entrepreneurship (EFO705), 15 credits Authors: Karakawat Sarasalin (830117-T255) Thitiporn Watthanachai (831031-T124) ksn08001@student.mdh.se twi08001@student.mdh.se Title: The internationalization process of Red Bull from the perspectives of global expansion Supervisor: Jean-Charles Languilaire Problem Statement: How did RED BULL manage to be as an important central international market player? Purpose: The purpose of this research is to describe the internationalization process of Red Bull; how Red Bull created, sustained and developed? Method: We mainly use secondary data and the qualitative data. Qualitative data in the form of interview questions through e-mailing. But we also use quantitative method based on documental research from books and internet. Conclusion: Red Bull does not follow the standard pattern of establishment chain presented in the Uppsala model. Its establishment chain is composed of three stages: licensing ,wholly owned sales subsidiaries and jointed venture. Red Bull has developed strong market within the beverage industry network and strong bonds with its external suppliers. The expansion decisions of Red Bull have been influenced...
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...Red Bull is an Austria-based company started in 1987 by Dietrich Mateschitz that sells one product: an energy drink containing taurine (an amino acid) that’s sold in a slim, silver-colored 8.3-ounce can. The drink has been an enormous hit with the company’s target youth segment around the globe. For the year 2001, Red Bull boasted sales of $51 million in the United States alone and captured 70% of the energy-drink market worldwide. From Stanford University in California to the beaches of Australia and Thailand, Red Bull has managed to maintain its hip, cool image, with virtually no mass-market advertising. However, today, due to certain health issues and the growth in competitors in the market, several doubts and issues have come across for Red Bull such as Whether Red Bull is able to maintain its lead and its point of differences or the brand may simply lost its edge and become “slate”, Whether the concern of health and bloggers might have a huge negative impact on Red Bull, Whether Red Bull’s target audience move on as it ages is an issue due to its limited product line, and so on. The matter of maintain a company lead in the market is always present as same as for its point of differences in products. In the case of Red Bull, according to recent records of energy drinks product companies in 2015, Red Bull owned 60% to 70% market shares which means globally Red Bull is one of top brands, establishing over 167 countries with approximately 5 million cans selling per year in...
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...Executive summary Introduction In 1984 Mateschitz founded Red Bull. Red Bull Energy Drink was first sold on the Austrian market in 1987. Red Bull reached its first foreign markets in 1989 in Singapore and in 1992 in Hungary. In 2008 Red Bull created its own cola, Red Bull Simply Cola. It created a market segment unlike traditional colas, by using only 100% natural ingredients. In 2009, Red Bull extended its product line with Red Bull Energy Shots. Red Bull headquarters are based in Fuschl am See, near Salzburg Austria. Approximately 4 billion cans of Red Bull are consumed each year; the product is available in 160 countries. Red Bull is the leader of the energy drink market and performs an annual turnover of more than 3 billion Euros. As we will see in this report, polemics, nonconformist, genius marketing are, among others, the ingredients that made Red Bull the star product of Energy Drink Segment in the world. For more than 20 years, Red Bull has managed to establish itself brilliantly in the world, which, despite the widespread economic gloom, has always taken a growing interest for this drink. In this report, we will analyse Red Bull and the environment in which the company evolves, its target and positioning trough marketing tools. It will enable us to understand how Red Bull managed to reach its leader position and to think about some recommendations to further improve its strategy. The Product Red Bull is a lightly carbonated drink that enhances mental and physical...
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...RED BULL IN INDIA The case has been written by Prof. Rishabha Nayyar, Director, Genesis Institute of Business Management (GIBM) for the purpose of an in-class discussion. The content and data is fictitious and has no relevance whatsoever to any existing brand in the market. The case attempts to drive understanding / application of the marketing concept. Rakesh Singh was sitting in his office waiting for the Board of Directors to call him to the conference room. Rakesh has been appointed a year ago as the CEO of Red Bull India Ltd. and had been given the responsibility of growing the brand. However, a year had passed and the results were not there for showing. Rakesh was carefully looking at everything in his office being very sure that this was probably the last time he would ever see it again! Background Red Bull is a highly successful branding story. The brand came into existence in 1984. The brand was created by an Austrian professional turned businessman Mr Dietrich Mateschitz. The story goes like this -The original inventor of Red Bull energy drink is said to be Chaleo Voovidhya, a Thai businessman. In 1962 he created a drink named Krating Daeng (meaning Red Bull in Thai). In 1982 when Mr Dietrich visited Thailand, he came across this product which helped him to tide over the jetlag very quickly. Impressed by the product efficacy, Dietrich decided to take this product to Europe. He started Red Bull Gmbh with equity participation from Chaleo Voovidhya. By the year 1987...
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...IntroductionThe Red Bull energy drink was launched in Austrlia in 1987 by Dietrich Mateschitz. Dietrich Mateschitz grew up in a small village in Styria, Austria. After graduating with a degree in world trade he decided to become a “really good marketing man.” Dietrich Mateschitz met up with Chaleo Yoovidhya at the beginning of 1980s and they decided to start an energy drinks together. Realizing that energy drinks product could have good potential in Western markets, Mateschitz obtained the license to manufacture a carbonated version of Krating Daeng from its Thai owners. Obtaining permission to sell Red Bull in Europe was not easy, as it contained several ingredients whose effects on the human body were untested. However, permissions were eventually obtained, and Red Bull became exceptionally successful in all the markets in which it was launched.It was generally acknowledged that Red Bull's success was the product of the company's innovative marketing efforts. This case study discusses the key strategic challenges that the company faces internationally in the functional drink sector using 12C framework. This case also discuss for either changing or retaining Red Bull current product mix and identify and evaluate the company’s mode of market entry in its non-domestic markets. Finally this case will evaluate the company’s approaches to promotion and distribution and assess to what extent these approaches represent sources of sustainable competitive advantages.II. The key strategic...
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...Contents Stakeholders Analysis 2 Customers 2 Competitors 2 Company 2 Red Bull's key internal stakeholders 2 Red Bull's Strengths and Weaknesses 3 Red Bull's brand appearance, personality and reputation 3 Community 3 Marketing Mix 3 Product 4 Price 4 Place 4 Promotion 4 Positioning 5 Bibliography 6 Reference Material 6 Internet Resources 6 Appendix 7 Stakeholders Analysis Customers Athletes – Red Bull is targeted at athletes serious about their sport and personal performance. Red Bull increases athletes performance, concentration and reaction speed. A good example of Red Bulls support of athletes can be seen with the many extreme and high adrenaline events they are sponsoring, such as the F1 Grand Prix, Moto GP, NASCAR, and FIS Ski Championships. Red Bulls support of athletes shows in their slogan of when to drink Red Bull. “Sport is Red Bull’s natural grazing ground. Whenever athletes are in need of wings you can find Red Bull” (Red Bull, 2011) Students – Red Bull is targeted at students looking to gain that additional performance during challenging days in the auditorium. Red Bull increases students’ concentration, improves vigilance, and stimulates metabolism. Students find these qualities appealing and useful when studying hard or playing harder with fellow students and friends. Competitors Red Bull’s main competitors are Monster and Rockstar. All three are market leaders in the energy drinks market, differentiating themselves with taste...
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...assess the company Red Bull and their energy drink Red Bull Energy Drink, in a manner in which the market/industry, environment, competitors, customers, and the brand were all analysed by using secondary research. A SWOT analysis was also conducted. Through this research and analysing, it was found that Red Bull is the dominating leader in the energy drink market and sells the most units of its product worldwide. However the company does have close competitors in Monster Energy Drink and Rock star Energy Drink. Although Red Bull has massive internal strengths in being leader in the market share and sponsorship of events, it also has weaknesses in lack of innovation and diversity. Their opportunities however, could be to extend the product line or team up with another company such as Smirnoff. The threats present to Red Bull are the unhealthy image associated to it by society and health critics and the rising competitors. Despite all these possible setbacks Red Bull continues to be the number one seller of energy drinks worldwide. Introduction 1.1 Give a general introduction to the assignment The aim of this report is to analyse the product Red Bull Energy Drink produced by the company Red Bull, and apply theoretical concepts to the energy drink product category, including analysing information relevant to the industry, environment, competitors, customers and brand of Red Bull all done through secondary research. 1.2 Describe your product The Red Bull Energy Drink is a...
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