Red Bull Marketing

The drink was sold originally in only one size—the silver 250 ml (8.3 oz.) can—and received little traditional advertising support beyond the famous slogan "Red Bull gives you wings", which was the key promotion which raised the beverage’s popularity. Traditional advertising was restricted, as the company decided to focus heavily on getting product samples into the right hands.

By this time, Red Bull GmbH was the most highly valued company in Austria, worthing approximately $11 billion. This made Mateschitz, with his 49 percent holding, the country's richest individual.

As well as entering new markets in Norway and Denmark, the success of Red Bull Racing in Formula 1, Red Bull Salzburg's victories in the Europe Football League, the successful global rollout of the "Red Bulletin" and the launch of Servus TV were the main highlights of 2009. The focus of future expansion will be on markets in Africa, Russia, India and Japan.

2. The Environment

3. Marketing Mix Strategy (4 P’S)

4.  The product

• Product’s concept

Red Bull ® Energy Drink is a functional beverage with a unique combination of ingredients. It has been specially developed for increased mental activity and important physical exertion situations.

Red Bull ® Energy Drink 

The effects of Red Bull have already been recognized by elite athletes, professionals, students and long-distance drivers in the world.
Red Bull ® Energy Drink has always been and will be a secret for owls or people who feel that night parties fall short. It is appreciated by a wide range of people, from a taxi driving many hours to the stressed manager, nervous student before an exam or the journalist under pressure.
It has been designed for consumption during the day and the night; for working or for having fun. People who need more energy for whatever situation value Red Bull ® Energy Drink and this number is continually increasing.

Ingredients:

TAURINE

Taurine is a conditionally essential amino acid that occurs naturally in the human body. "Conditionally essential” means that in some situations or under certain circumstances, for example, in situations of high stress and physical exhaustion, there is an increase in the excretion of taurine and the body cannot replace enough of it.
Taurine is present in the human body's vital functions. It acts as an antioxidant and helps with the necessary elimination of harmful substances, thereby accelerating their evacuation. Taurine is also present in different types of food, as scallops, fish, poultry and in most baby food.

GLUCURONOLACTONE

Glucuronolactone is a carbohydrate. It occurs naturally in the human body, in excretion processes, helping the body eliminating excess substances. For example it is involved in the process of liver detoxification. Glucuronolactone is also present in different foods, like cereals and red wine.

CAFFEINE

Caffeine is known for its beneficial effects on physical and mental functions. For example, it increases the reaction speed, alertness and concentration. Caffeine also stimulates fat-burning during long-term activities, and it helps to use body fat reserves, resulting in more efficient energy supply. Caffeine is present in many foods such as coffee, tea or chocolate. A can of Red Bull ® Energy Drink contains approximately the same amount of caffeine as a cup of coffee.

B-GROUP VITAMINS

B-group vitamins play an important role in energy metabolism, such as composition and decomposition of carbohydrates, fats and proteins. The B vitamins also intensify physical and mental performance. Some of the additional functions of the B-group vitamins are: maintaining healthy skin and muscle tone, boosting or improving immune and nervous system functions, promoting cell growth and division (including red blood cells that help prevent anemia) and also reducing the risk of pancreatic cancer - one of the most lethal forms of cancer.

SUCROSE

Sucrose is commonly known as table sugar. It also takes on the name saccharose or saccharine. Sucrose is a disaccharide which is glucose and fructose combined. It plays a major role in human nutrition and is formed through plant life not animal life. Sucrose gives a fast energy boost to the body. It brings blood glucose up at a rapid pace once it’s ingested. With that being the case; pure sucrose cannot be a part of healthy human diet if used excessively. Sucrose is a carbohydrate in its purest sense. It has four kilocalories per gram. Therefore, even in the smallest amounts sucrose can contribute to obesity.

GLUCOSE
Glucose is a tiny molecule of sugar. Glucose circulates in the blood and is used as energy for cellular reactions. Glucose is found in the diet in the form of carbohydrates. The glucose molecule is one of the main biomolecules used in metabolism. Metabolism is categorized by catabolism (breakdown of molecules) and anabolism (creation of biomolecules). Glucose is catabolised into smaller units to create energy. The glucose molecule is broken down to 2 pyruvates which assist weight reduction by enhancing metabolism and which are used in the synthesis of ATP. ATP is the energy currency of the cell, and it is responsible for energy coupling for internal chemical reactions.

• The company products portfolio

The company Red Bull has a small products portfolio with only one line that has a depth  or length of 4 products:

Red Bull Energy Drink:                                                   Red Bull Sugar Free:

     

     

 

     Red Bull Cola:                                                       Red Bull Energy Shots:

• Positioning:

Red Bull has been positioned in the market as the energy drink that revitalizes body and mind, with its distinctive and eye-catching slogan "It gives you wings" and its marketing strategy uses a cheerful irreverent message that connects well with its target audience: mainly young students and athletes. Mateschitz was confident that the strategy should be directed to young people, because they are the ones who move the consumer market.

A well supervised and precise distribution of the product, together with a super premium price and very focused communication through attractive events, continually renewed around extreme sports, created a myth around the product that it was reserved for a few lucky people who could find the product. Also, the fact that Red Bull was at first a forbidden product in a number of countries only excited the curiosity of teenagers.

They ran a successful buzz campaign taking advantage of the originality, attractiveness and innovation of the product as key success factors in order to benefit from quick and positive word of mouth. Red Bull built buzz about the product through its “seeding program”: the company micro targeted shops, clubs, bars, and specialized stores; gradually moves from bars and clubs to convenience stores and restaurants, and finally enters in supermarkets.
The different dimensions that the product encompasses in its marketing mix (properties, colour, design, packaging, distribution, price, communications etc.) are unique. A clear example which indeed meets every one of these criteria is the iPhone.

                                                                                                                                                                                                                                                                                                                                           

• Timing of the life cycle of the product 

Today Red Bull is clearly in the growth stage, as reflected in the high growth rates in sales and profits and also they are innovating so that new versions and product forms have arrived and will arrive. However, it is about to enter the stage of maturity, due to the high presence of numerous competitors.

• The objectives for this stage should be

 ➢ Spreading the product in the chosen segment by demonstrating or showing their consumers the relationship between expectations and perceptions understood as a measure of quality.

 ➢ Evaluating the dominance of the brand.

 ➢ Assessing the potential competitive movements in conversion or positioning.

➢ Checking the possible changes or trends in the different segments.

We can also say that Red Bull is a star product; therefore it is characterized simultaneously by high growth and high market share. Finally, just add that the product was an incredible innovation.

• The Product’s Launch

The product had to adapt to the social, political, legal and environmental constraints of the countries where it was going to be implanted. For example in France, it had to wait for 2008 because of restrictions on health dangers.

However, when implanted in one country, very often they use the same kind of promotions.
Its release or launch was different depending on the target country. There is a difference between the marketing techniques in 1987 to launch it in Austria and the effective marketing techniques from nowadays. A clear example is found in the "Wings Team" Mini cars equipped with a refrigerator and using as public relations attractive young girls who offer samples of their products.

Cans of the drink were also given out for free to people on the street who had been identified as being in need of energy. Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs. Additionally, they practiced promotional campaigns on university campuses by sponsoring student parties.

The application of this kind of marketing strategy is known as 'viral' marketing. If a company sees no need for traditional informative or persuasive communications, like in Red Bull's case, it uses the youth 'underground' to spread the popularity of the drink. So the firm would rather restrict the drink's supply and not advertise it, expecting that growing numbers of target consumers 'catch the bug' and its reputation spreads.

      •    Brand, label and packaging

The brand is characterized by a name, symbol, design and colours. The name "Red Bull" is a foreign word whose meaning suggests the functions and qualities of the product. It is also one single brand. The symbol gives the product a more specific strength, the image with the two charging bulls facing each other gives the product a powerful appearance. The can of Red Bull is probably one of the main elements of differentiation. It was designed by the company, unlike other players in the market, which choose a particular and smaller size of 8 cl less than the most traditional beverages. Labeling is also playing a much more important role than with other soft drinks. The exterior design and colours (blue and silver) are easily recognizable and distinguishable among other cans; plus, it gives a refreshing image. Red Bull is really the origin of the energy drink cans and they are really supporting the idea that quality performance is much more important than quantity. The container supports the fidelity or credibility of the product. The "packaging " is an excellent tool for differentiation and consequently is one of the most important marketing variables, maybe even more than advertising campaigns. They have even been recognized for their brilliant brand packaging and innovative marketing with the M-real Kemiart Forerunner Award.

As explained in the description of the company, the name and labeling of Red Bull had their origins from the Thai beverage called Krating Daeng. The name was directly translated into English and the container, which in Thailand was presented with the shape of medical syrups, was completely changed into a modern and attractive tin.

POSSIBLE USEFUL INFORMATION TO BE ADDED IN ANOTHER PART:

Red Bull’s extreme sports athletes and events promotion examples 

Figure 1 Top to bottom, from left to right; Surfing Amazon tidal bore (Gschwandtner 2004), Red bull Playstreets(Hagena 2008), Felix Baumgartner B.A.S.E. Jump Christ Redeemer (Gschwandtner 2004), Redbullracing F1 Getty (G.M., [2009]), Red Bull Storm Chase(Hollmann [ca. 2004 ]) Hangar-7 (Gschwandtner 2004), Felix Baumgartner Channel Crossing (Gschwandtner 2004), “The Dolomite Man” competition (Gschwandtner 2004), Flütaag flying day(Stone 2008), Red Bull cliff diving (Keller 2004)., Red Bull air race(Larson 2008), Mysteryland festival (Mysteryland 2009).

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