Marketing
Plan
Outline:
Red
Bull
 Marketing
Background
 Company
and
Product
Review
 
 In
1982,
Dietrich
Mateschitz,
creator
of
Red
Bull
alongside
Chalerm
Yoovidhya,
saw


1


where
Japan
and
Thailand
were
heading
in
the
energy
drink
market
and
decided
they
 wanted
a
piece
of
the
pie.
By
1987,
Austria
proved
to
be
a
difficult
market
for
Red
Bull
to
 survive
in
and
soon
Mateschitz
expanded
into
Hungry
and
the
rest
of
Germany.
After
 expanding
across
Europe
with
a
lot
of
trial
and
error
Red
Bull
was
$12
million
in
the
hole.
 Rather
than
scrapping
Red
Bull
as
a
loss,
Mateschitz
fired
all
his
staff
and
hired
a
marketing
 firm
to
help
him
target
nightclubs
and
students.
Buzz
marketing
became
the
main
focus
of
 Red
Bull’s
marketing
plan,
and
soon
students
were
pounding
campus
pavement
and
driving
 around
in
Mini
Coopers
with
a
big
Red
Bull
can
strapped
on
top
with
free
samples.
His
buzz
 marketing
proved
to
be
not
only
cost
effective,
but
the
very
thing
that
gave
Red
Bull
its
 appeal.
Although
Red
Bull
was
not
welcomed
with
open
arms
in
all
countries,
such
as
 France,
Denmark
and
Norway,
it
was
growing
and
expanding.

 
 Mateschitz
soon
realized
that
an
extreme
sporting
event
was
a
profitable
avenue
to


take
Red
Bull
down.
Red
Bull
started
supporting
approximately
500
extreme
sports
 athletes
and
hosting
exclusive
parties
for
these
rock
star
competitors.
By
1997,
Red
Bull’s
 buzz
marketing
strategy
proved
successful
in
the
U.S.
as
well.
Events
are
now
hosed
 throughout
the
world
ranging
from
B.A.S.E.
jumping
to
surfing.
Their
tagline,
“gives
you
 wings”
is
known
worldwide
and
Red
Bull
sponsors
public
and
private
events
such
as
the
X‐ games
and
the
Red
Bull
Air
Races.

 



 Distribution/Penetration
 Red
Bull
is
distributed
in
most
grocery
store,
convenience
store,
and
gas
station


2


across
the
U.S.
such
as
HyVee,
SuperSaver,
Safeway,
Trader
Joes,
Conoco,
Quick
Trip,
and
7‐ 11.
It
is
also
found
in
discount/supercenter
stores
such

as
Target
and
Wal‐Mart.

In
2002,
 Red
Bull
completed
its
distribution
share
and
the
product
is
now
available
in
all
50
states
 (Todd,
Heather).



 Target
Market
Statement
 Red
Bull’s
target
market
are
young,
on
the
go
people,
who
enjoy
extreme
sports
and
 lead
an
active
nightlife,
anywhere
from
18‐35,
who
lead
an
active
lifestyles,
and
are
 skeptical
of
traditional
marketing
(Swartz,
Jon).


 Pricing
 The
pricing
of
Red
Bull
varies
from
if
the
consumer
is
buying
an
individual
can,
 which
the
price
is
$1.99,
compared
to
a
case
of
Red
Bull.

The
average
price
of
a
case
of
24
 Red
Bull
is
$65.99,
but
depending
upon
the
distributor,
the
prices
may
vary.

Pricing
for
 energy
drinks
vary
by
brand,
but
Red
Bull
is
typically
$1.99
(Dolan,
Kerry).


 Sales
and
Market
Share
Analysis
 The
sale
of
Red
Bull
has
only
increased
from
the
time
Mateschitz
introduced
it
back
 in
1987.

In
2008
Red
Bull’s
net
sales
was
$4.28
billion,
which
was
up
7.9%
from
the
 previous
year.

A
contributor
to
these
sales
is
the
fact
that
Red
Bull
started
to
distribute
 more
to
the
Middle
East,
Far
East
and
South
America
(DPA).

In
“some
countries,
Red
Bull
 commands
80%
of
the
market
share.

In
the
U.S.
where
Red
Bull
enjoys
a
47%
share
of
the
 energy
drink
market,
sales
are
growing
annually
at
a
40%
clip”
(Dolan,
Kerry).


 



 Competitive
Analysis
 Red
Bull
can
be
easily
copied
because
the
ingredients
were
printed
on
the
can
and


3


the
drink
was
not
patented.

Even
though
the
taste
of
Red
Bull
did
not
do
well
in
taste
tests,
 it
was
the
marketing
strategy
that
made
Red
Bull
so
successful
(Gschwandtner,
Gerhard).


 In
the
late
80s,
around
the
same
time
Red
Bull
was
spreading
across
Europe,
 American’s
were
drinking
Jolt
Cola,
which
was
advertising
as
having
“all
the
sugar
and
 twice
the
caffeine
as
Coke”.

It
can
be
said
that
Red
Bull
was
the
first
energy
drink
to
be
in
 competition
with
soft
drinks
but
also
created
the
new
energy
drink
category
in
most
 markets.

After
Red
Bull
hit
the
market
hard
in
the
late
90‐the
present,
many
other
 companies
have
tried
to
hop
on
the
energy
drink
bandwagon
such
as
when
Hansen,
the
 natural
soda
company,
created
Monster
Energy.

 Red
Bulls
has
approximately
100
major
competitors,
such
as
5
Hour
Energy
Drink
 and
Rock
Star
Energy
Drink.
Not
only
do
energy
drink
companies
fall
in
these
100
major
 competitors
of
direct
competition
but,
there
is
also
the
sector
of
soft
drinks
that
have
 proven
to
be
a
viable
opponent.

Coca‐Cola
(Full
Throttle
&
Monster),
Pepsi
(AMP
Energy
 Drink)
and
Gatorade
(Rebranded
as
G
and
G2)
are
three
of
Red
Bulls
major
competitors.
 
 Many
celebrities
have
also
taken
on
the
role
of
putting
their
face
to
an
energy
drink


label,
such
as
Ice‐T
creating
an
energy
drink
called
Liquid
Ice,
Nelly’s
Pimp
Juice
and
Lil’
 John’s,
Crunk
Juice.
 However,
in
the
end,
no
other
energy
drink
has
been
able
to
claim
Red
Bull’s
70‐ 90%
of
the
market
share
it
has
in
over
100
countries
worldwide,
despite
these
competitors
 (Penalty,
Jeff).
 



 Product
Awareness
and
Attributes


4


Red
Bull
is
known
worldwide
not
only
because
of
what’s
inside
the
can
but
because
 of
the
lifestyle
the
brand
represents.

Red
Bull
does
not
take
advantage
of
the
traditional
 media,
instead
they
rely
on
sponsoring
extreme
sporting
events
and
they
give
away
free
 samples
of
Red
Bull
at
the
events.

“Red
Bull
relies
heavily
on
bars
and
night
clubs
for
its
 sampling
events,
alternative
sports
have
also
proven
to
be
a
successful
product‐trial
arena.

 The
company
underwrites
a
number
of
extreme
sports
competitions
and
sponsors
about
 three
dozen
alterna‐athletes”
(Hein,
Kenneth).




 Demand
Analysis
 The
demand
of
Red
Bull
increases
each
year
and
that
is
evident
with
how
rapidly
 Red
Bull
has
spread
not
only
all
over
the
United
States
but
the
world.

From
just
looking
at
 the
market
share
analysis
of
Red
Bull,
sales
are
increasing
every
year
and
sales
are
 expected
to
keep
rising
with
each
coming
year.

Even
though
Red
Bull’s
demand
has
 increased
with
each
coming
year,
the
“Red
Bull’s
U.S.
market
share
has
fallen
from
75%
in
 1998
to
roughly
47%
today”
(Dolan,
Kerry).



 Purchase
Rates
and
Buying
Habits
 Red
Bull
consumers
are
loyal
purchasers.
They
buy
Red
Bull
for
its
high
energy
kick
 before
a
class,
before
a
work‐out,
before
performing
in
a
sporting
event
or
anytime
they
 need
to
get
an
extra
boost
to
perform
at
top
level.
Red
Bull
is
also
purchased
to
drink
 recreationally
during
social
functions
and
at
nightclubs
and
bars
to
create
various
alcoholic
 beverages.

 
 
 
 


5
 Problems
and
Opportunities:
 
 Problems:
Red
Bull
is
not
a
patented
drink
product,
therefore
anyone
is
able
to
pick


up
a
can,
read
the
ingredients
and
go
into
business
for
themselves.
This
is
one
of
the
 reasons
the
market
is
flooded
by
competition.
In
addition
to
this
Red
Bull,
along
with
all
 energy
drinks
and
supplements,
has
received
negative
press
from
a
medical
standpoint.
 High
levels
for
caffeine
and
sugar
can
create
negative
effects
on
heart
rate
and
blood
 pressure
along
with
dehydration.

 Opportunities:
Red
Bull
is
one
of
the
most
popular
energy
drinks
in
the
world.
They
 earned
this
title
by
intelligent,
consistent
marketing.
Red
Bull
has
the
opportunity
to
 maintain
their
position
and
grow
by
continuing
to
target
their
niche
target
audience
by
 heavily
using
untraditional
marketing
tactics
and
traditional
marketing
tactics
sparingly.

 This
will
not
only
maintain
their
dominance
in
the
energy
drink
market,
it
will
strengthen
 their
relationship
with
their
target
audience
(Mr.
Burgundy).


 
 Strengths

• • Most
popular
energy
drinks
in
the
world.
 Red
Bull
represents
a
specific,
edgy
 subculture,
while
still
being
consumed
 by
a
variety
of
demographics.
 Three
different
versions
(Regular,
Sugar‐ Free,
and
Cola)
allow
for
variety
without
 spreading
the
brand
too
thin.
 
 • • • 


Opportunities


Increase
awareness
of
Red
Bull’s
 dominance
in
the
energy
drink
market
 Strengthen
the
relationship
between
 Red
Bull’s
target
audiences.

 Increase
Red
Bull’s
sales
in
specific
 markets
such
as
the
Dakotas,
Tennessee,

 &
Ohio.


•

Weaknesses

• Not
a
patented
drink
product
 
 
 • •

Threats

Health
risks
associated
with
over
 consumption.

 Competition
is
increasing
 


Marketing
Plan
 Sales
Objectives
 We
want
to
maintain
our
position
as
the
leader
in
energy
drinks
and
the
face
of
 extreme
sports
worldwide,
while
expanding
our
reach
in
the
U.S.
Currently
North
Dakota,


6


South
Dakota,
Tennessee,
and
Ohio
are
lagging
in
Red
Bull
awareness
and
consumption.
We
 want
to
increase
distribution
of
Red
Bull
in
these
states
by
5%
and
increase
brand
 awareness
by
85%
in
these
markets
while
maintaining
our
national
presence.




 Target
Market



 (Malinauskas,
Brenda
et.al.)
 The
uniqueness
of
Red
Bull
is
that
the
company
does
not
follow
traditional
media
 guidelines
and
that
is
why
they
chose
the
untraditional
platform
(Hein,
Kenneth).


Their
 target
audience
is
very
receptive
to
this.

As
stated
above,
the
target
audiences
of
Red
Bull
 are
people
between
the
ages
of
18‐35,
who
lead
an
active
lifestyle
and
what
to
have
a
sense
 of
belonging
in
their
community,
but
in
an
untraditional
way.

But
there
is
much
more
to


7


Red
Bull’s
target
audience.

Not
only
do
they
not
trust
traditional
media
they
are
turned
off
 by
it.

These
antiestablishment
and
adventure
seeking
individuals
that
do
not
follow
the
 rules
and
needed
Red
Bull
needed
buzz
marketing/extreme
sports
in
order
to
tap
into
 them
(Rodgers,
Anni
Layne).





 The
target
audiences
of
Red
Bull
are
people
who
work
hard
and
play
hard.

They
 take
their
profession
very
seriously
but
like
to
have
fun
in
their
free
time.

From
the
college
 classroom
to
the
boardroom,
these
people
don’t
check
out
of
life
at
five
o’clock.

The
 common
thread
connecting
Red
Bull
consumers
is
that
they
all
enjoy
staying
active
by
 participating
in
sporting
events,
watching
sporting
events,
playing
video
games
or
 socializing
(Hein,
Kenneth).
 Marketing
Objectives
and
Strategies
 Our
marketing
objective
and
strategy
is
to
launch
localized
events
to
attract
youth
 on
college
campuses
and
at
sporting
events
in
North
Dakota,
South
Dakota,
Ohio,
and
 Tennessee.

These
events
will
feature
some
of
our
sponsored
athletes
making
guest
 appearances
and
free
give‐a‐ways
of
Red
Bull
and
Red
Bull
products.
We
will
host
a
 Soapbox
Race
and
a
Flugtag
Flightlab
event
the
in
major
cities
in
these
states
in
order
boost
 awareness
and
consumption
of
Red
Bull
in
those
areas.
In
addition,
Red
Bull
vehicles
will
 make
their
way
across
the
United
States,
specifically
in
larger
cities,
promoting
the
brand
 and
giving
away
free
samples.
The
Red
Bull
vehicle
routes
will
travel
with
reps
to
college
 campuses
in
major
cities
promoting
the
brand
and
its
lifestyle.
A
million
samples
will
be
 distributed
by
these
Red
Bull
Reps
and
have
a
code
on
the
bottom
of
each
can.
Also,
an
 additional
million
cans
will
be
distributed
across
the
U.S.
to
be
sold
by
retailers.
These
 codes
can
be
entered
online
to
win
free
Red
Bull,
a
VIP
trip
for
two
to
the
2010
winter
X



 Games
in
Aspen,
CO,
a
VIP
trip
for
two
to
the
summer
X
Games
in
Los
Angeles,
CA,
or
free
 entry
passes
to
the
Soapbox
Races,
or
Flugtag
Flightlab
events
hosted
in
our
target
states.
 National,
one
in
50
can
codes
will
give
away
free
Red
Bull,
four
in
two
million
will
give


8


away
the
two
winter
and
two
summer
X
Game
packages.
In
our
target
states,
200
cans
will
 award
recipients
with
passes
to
their
local
Soapbox
Racing
and
Flugtag
Flightlab
events.


 As
well
as
targeting
North
Dakota,
South
Dakota,
Ohio
and
Tennessee,
there
will
also
 be
two
groups
of
two
people
assigned
to
each
state.

These
Mini
Cooper
teams
will
go
to
 colleges
and
major
cities
promoting
Red
Bull
and
advertising
the
Winter
and
Summer
X
 Games.


 Positioning
Strategy
 R&A
Agency
will
continue
to
position
Red
Bull
and
Red
Bull
events
as
a
unique,
off
 the
radar
subculture.
Spotting
the
Red
Bull
vehicle
will
be
an
event
in
itself,
creating
buzz
 on
the
streets
and
water
cooler
talk.
By
using
Red
Bull
to
guide
drinkers
to
Red
Bull
events
 we
will
succeed
in
increasing
consumption
and
awareness
in
lagging
markets
and
stay
 consistent
across
the
U.S.
The
events
will
be
a
place
where
like
minded
people
can
come
 together,
have
fun,
be
creative,
blow
off
some
steam
and
feel
like
a
part
of
the
exclusive
Red
 Bull
family.

R&A
Agency
will
not
change
Red
Bulls
existing
tagline,
Red
Bull
Gives
You
 Wings,
because
we
feel
the
company
has
already
established
a
tag
line
that
many
people
 already
know
about.

R&A
Agency
will
continue
to
use
the
tag
line
on
products
and
just
 make
the
tag
line
more
evident
on
products,
such
as
on
the
give‐a‐ways
that
the
college
 Reps
will
be
giving
out.


 
 



 Marketing
Mix
Implementation
Tools
 
 “Red
Bull
Gives
You
Wings”
across
the
United
States


9


Red
Bull
is
an
energy
drink
that
represents
a
lifestyle,
and
we
want
to
bring
that
lifestyle
to
 the
masses.
Our
marketing
mix
will
consist
of
Public
Relation
promotions,
non‐traditional
 advertising,
and
sponsorships
of
extreme
sports
athletes
and
events.
By
using
this
mix,
we
 will
attract
traditional
media
to
cover
our
product
without
creating
traditional
ads
 ourselves.
We
plan
to
keep
the
price
of
Red
Bull
the
same
as
it
is
now,
but
do
free
give‐a‐ ways
during
PR
events
and
during
sponsored
events.
 Our
PR
event
is
a
cross‐country
road
trip
in
Red
Bull’s
Mini
Coopers.
The
road
trip
 will
consist
of
100
two‐men
teams
that
will
be
making
stops
at
major
colleges
and
 universities
across
the
U.S.,
including
Yale,
Berkley,
Notre
Dame,
and
the
University
of
 Nebraska‐Lincoln.
In
addition
to
the
stops
in
major
cities,
special
attention
will
also
be
 given
to
North
Dakota,
South
Dakota,
Ohio,
and
Tennessee
to
increase
consumption
and
 brand
awareness.
During
their
stops,
they
will
host
events
that
give‐a‐way
free
Red
Bull
 and
Red
Bull
products
as
well
as
other
prizes
such
as
flat
screen
T.V.s
and
Playstation
3s.
It
 will
be
a
year
long
event
of
appearances
by
the
Red
Bull
Mini
Coopers
at
college
campuses
 in
major
cities.
These
colleges
will
be
contacted
ahead
of
time
to
arrange
free
interns
to
 help
plan
and
set
up
the
events.
Students
will
be
able
to
play
video
games,
test
drive
the
 Mini
Cooper,
win
prizes,
all
while
drinking
Red
Bull.

 Red
Bull
will
continue
to
have
heavy
sponsorship
of
their
500+
athletes
and
at
the
 Winter
and
Summer
X
Games.
Clothing,
banners,
mini
events
will
be
the
main
tools
during
 these
sponsorships
that
will
be
picked
up
by
the
local
and
national
television
and
radio
 stations
covering
these
athletes
careers
and
sporting
events.




 Marketing
Plan
Budget
and
Calendar
 
 Part
of
our
50
million
dollar
budget
is
meant
to
focus
on
North
Dakota,
South


10


Dakota,
Tennessee
and
Ohio
to
make
them
feel
more
as
if
they
are
part
of
the
Red
Bull
 community
by
tying
them
into
major
events
that
Red
Bull
sponsors.

The
bulk
of
our
50
 million
dollar
budget
will
be
going
towards
sponsoring
the
Winter
and
Summer
X
Games
as
 well
as
purchasing
give‐a‐ways.


 • $15,000,000
=
January
2010
 o Sponsoring
Winter
X
Games
 • $15,000,000
=
August
2010
 o Sponsoring
Summer
X
Games
 • $30,000
=
In
between
the
months
of
the
Summer
and
Winter
X
Games
 o The
one
in
fifty
can
give
away

 • $40,000
=
January
2010
(Winter),
August
2010
(Summer)
 o The
room
and
board
for
the
Summer
and
Winter
X
Games
 o Transportation
=

   Winter
=
Four
Red
Bull
snow
mobiles
 Summer
=
Four
Red
Bull
mopeds


o 8
VIP
passes
each
for
the
Winter
and
Summer
X
Games
 • $5,000,000
=
Throughout
the
year,
teams
of
two
will
drive
to
twelve
major
 cities
which
will
be
in
our
target
states.


 o Red
Bull
vehicle
trips
and
events
 • $10,000
=
April
and
November
2010
 o For
free
entry
fee
to
Soapbox
and
Fluegtag
Flight
Events



 • $1,000,000
=
Throughout
the
year.
 o On
collateral

        • Red
Bull
clothing
 Play
Stations
 X
Boxes
 Video
Games
 X
Game
DVDs
 Blue
tooth
players
 Flat
Screen
TVs


11


$10,000,000
=
November
and
December
before
Winter
X
Games
and
June
 and
July
before
Summer
X
Games.
 o TV
advertisements
Winter
and
Summer
X
Games


•

$3,920,000
=
November
and
December
before
Winter
X
Games
and
June
and
 July
before
Summer
X
Games.


 o Magazine
advertisements
in
men’s
magazines
advertising
Winter
and
 Summer
X
Games
and
direct
mail
sent
to
men
advertising
Winter
and
 Summer
X
Games.





Works
Cited


12


Dolan,
Kerry.

“The
Soda
With
Buzz”

Forbes

28
March
2005:
1.
 http://www.forbes.com/free_forbes/2005/0328/126_2.html


 
 DPA.

“Red
Bull’s
growth
rate
halved
in
2008”

Business
News

4
February
2009:
1.
 http://www.earthtimes.org/articles/show/254168,red‐bulls‐growth‐rate‐halved‐in‐ 2008.html
 
 Gschwandtner,
Gerhard.

“Red
Bull”

Selling
Power

September
2004:
1‐11.


 
 Hein,
Kenneth.

“A
Bull’s
Market
–
the
marketing
of
Red
Bull
energy
drink”

Brandweek

28
 May
2001:
1‐4.
 http://findarticles.com/p/articles/mi_m0BDW/is_22_42/ai_75286777/pg_2/?tag=content ;col1
 
 Malinauskas,
Brenda
et.al.

“Red
Bull”

Nutrition
Journal

2007:
1
 
 Mr.
Burgundy.
“The
Health
Effects
of
Energy
Drinks”

Associated
Content
17
May
2007:
1‐2.
 http://www.associatedcontent.com/article/234299/the_health_effects_of_energy_drinks_p g2_pg2.html?cat=51
 
 Penalty,
Jeff.

“A
Brief
History
of
Energy
Drinks”

Swindle
Magazine

Issue
06
2009:
1
 
 Rodgers,
Anni
Layne.

“It’s
a
(Red)
Bull
Market
After
All”

Fast
Company

19
December
 2007:
1‐2.

http://fastcompany.com/articles/2001/10/redbull.html

 
 Swartz,
Jon.

“More
marketers
use
social
networking
to
reach
customers”

USA
Today

27
 August
2009:
1‐3.
http://www.usatoday.com/tech/news/2009‐08‐27‐social‐networks‐ marketers_N.htm

 
 Todd,
Heather.

“Red
Bull
North
America,
Inc”

Beverage
World

15
May
2003:
1.
 http://www.allbusiness.com/retail‐trade/eating‐drinking‐places‐eating/4130114‐1.html