At the same time Mateschitz and Chaleo Yoovidhya founded Red Bull GmbH; each investing $500,000 of savings and taking a stake in the new company. Chaleo and Dietrich each held a 49% share of the new company. They gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company. The product was launched in 1987 in Austria, in a carbonated format.
In 1992 the product expanded to international markets: Hungary and Slovenia. It entered the United States via California in 1997[12] and the Middle East in 2000. In 2008, Forbes magazine listed both Chaleo and Mateschitz as the 260th richest people in the world with an estimated net worth of $5 billion.
Strategy:
Red Bull has a diverse international marketing campaign. The numerous activities range from extreme sports like mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, wakeboarding, cliff-diving, surfing, skating, freestyle motocross, rally, Formula 1 racing, and breakdancing to art shows, music, and video games. In keeping with their target market of young males, Red Bull has also enlisted help from celebrities, such as Eminem that would appeal to this group (sponsoring the Red Bull "EmSee Battle Rap championships"). It also hosts events like the "Red Bull Flugtag" (German for "flight day" or "flying day") and other such contests. Red Bull also owns association football teams, with clubs in Austria, Germany, the United States and Brazil featuring the Red Bull trademark in their names. By associating the drink's image with these activities, the company seeks to promote a "cool" public image and raise brand power. Hence, this one energy drink has helped create a market for over 150 related types of merchandise, like Red Rooster and Blue Lightning.
Red Bull's slogan "gives you wings" is widely used in these marketing activities. Claims about the drink's effects and performance have been challenged on various occasions, with the UK's Advertising Standards Authority imposing advertising restrictions in 2001 in response to complaints first recorded as early as 1997. In 2011, Red Bull earned around EUR 4.2 billion in worldwide sales and was available in 164 countries globally.
Reference:
Face value | Selling energy". Economist.com. 2002-05-09. Retrieved 2009-06-22.
Kerry A Dolan (2005-03-28). "Magazine Article". Forbes.com. Retrieved 2009-06-22.
Red Bull GmbH Company History". Funding Universe. Retrieved 2007-10-12.
Ligaya, Armina (2010-05-12). "Region abuzz over energy drinks". The National: p. Business section, pp. 1, 6. Retrieved 2010-05-13.
The World's Billionaires". Forbes.com. 2008-02-11. Retrieved 2009-06-22.
The World's Billionaires". Forbes.com. 2008-02-11. Retrieved 2009-06-22.
RED BULL HISTORY. Electrick Publications.. Retrieved 27 July 2012.
HEALTH | Energy drink claims rejected". BBC News. 2001-01-24. Retrieved 2009-06-22.
Company figures". Red Bull. Retrieved 2012-09-24.
by
kinjai (student)
