MKTG318-Red Bull-Campaign
MKTG318-Red Bull-Campaign
MKTG318-Red Bull-Campaign
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In April 2013, US-based Brand Activation Association4 (BAA) announced the first Brand
Brilliance Awards to recognize the most influential and dynamic marketers in the US. The awards
were presented in four categories5. And in the Game changer category which honored the marketer
who changed the industry through a unique approach in marketing, the Red Bull Stratos event by
Red Bull Energy Drink6 emerged as the winner. BAA announced, “The event forever altered the
potential of content marketing.” 7 This was one of the several awards that Red Bull and Red Bull
Media House won for the ‘Stratos’ or the ‘Stratosphere’8 campaign.
Red Bull, widely acknowledged as the creator of the ‘energy drink’ 9 category, maintained a close
association with sports from the time it was launched in 1987. Red Bull GmbH was known for its
sponsorship of extreme, alternative sports like white water kayaking, hang-gliding, wind surfing,
1
Nicola Kemp, “Marketing’s one Giant Leap,” www.marketingmagazine.co.uk, October 24, 2012.
2
Janean Chun, “Red Bull Stratos may Change Future of Marketing,” www.huffingtonpost.com, October
15, 2012.
3
A US-based sport, entertainment and media marketing company.
4
Previously known as Promotion Marketing Association, Brand Activation Association is a non-profit
trade association of marketing disciplines. The members in the organization include Fortune 500
companies, marketing agencies, retailers, law firms, service providers, and academia.
5
The four categories in which the awards were presented - Active Brand Award, Game Changer Award,
Hero Brand Award, Inspiration Award.
6
Austria-based, Red Bull GmbH is the manufacturer of the Red Bull energy drink.
7
“BAA Announces The Winners of The First-Ever Brand Brilliance Awards,” www.prweb.com, April 12,
2013.
8
Stratosphere refers to the second major layer on the earth’s atmosphere above the troposphere.
9
Energy drinks are beverages that generally contain legal stimulants, vitamins, and minerals. Most of them
contain taurine and glucuronolactone, and a high content of caffeine and sugar or glucose. Many energy
drinks are flavored and/or colored to resemble soft drinks.
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Red Bull: The Stratosphere Campaign
and snowboarding - sports that involved elements of adventure and risk. Red Bull’s association
with F1 Racing, one of the world’s most glamorous and expensive sports, also helped enhance its
image as a trendy drink.
Since its inception, the company had followed very different marketing tactics to popularize Red
Bull. In 1998, it launched the Red Bull Dolomite Man, an extreme endurance event in kayaking
and paragliding. This was followed by events like ‘Flugtag’ where competitors could fly machines
they had built. Though it sometimes used traditional media like the television and the radio, the
communication was very different and the advertisements were humorous, simple, youthful, and
energetic.
The company followed non-traditional marketing practices, which were often cited as the reason
for its high sales and its ability to withstand competition from behemoths like Pepsi and Coke and
also ward off competition from new entrants in the energy drinks sector. It spent around 30% of its
revenue on marketing activities, most of it on non-traditional events like sponsoring athletes,
extreme sporting events, cultural events like rock concerts and dance contests, formula one racing
teams, a fleet of show planes, etc. Talking about the marketing strategy of the company, a Red
Bull representative said, “The marketing strategy that has worked best for us is not to publish our
strategies.”10
One such campaign that Red Bull launched in 2012 was ‘the mission to the edge of space’
featuring Felix Baumgartner (Baumgartner), who made a freefall jump from 24 miles above the
earth. The event broke several Guinness world records. It captured the attention of consumers
worldwide and became popular as ‘Red Bull Stratos’. It was broadcast in 50 countries and went on
to become the most watched live stream ever. The response to the event on various social sites
like YouTube, Facebook, Twitter, Instagram, etc., was worth of millions of dollars, according to
observers.
The successful campaign attracted thousands of fans and increased revenues and sales for Red
Bull. Moreover, it generated many new ideas for science and technology. John Ford, CEO of
marketing innovation company, The One Centre, said, “The Red Bull Stratos project was a most
outrageously ambitious execution of Red Bull’s extensive branded entertainment catalogue and
like all great risks it has paid off ten-fold with immense attention and a huge ramp up in awareness
of the brand.”11
BACKGROUND NOTE
Dietrich Mateschitz (Mateschitz) was born in 1944 in Austria to parents who were primary school
teachers. After graduating with a marketing degree from the University of Commerce in Vienna,
he took up marketing jobs at Unilever and Jacobs Coffee before becoming the international
director for marketing at Blendax, a German company that dealt in FMCG products like
toothpaste, skin creams, and shampoos, in 1979.
Mateschitz’s job involved a lot of travel around the world and during one of his trips to Thailand,
he discovered an ‘energy drink’ called Krating Daeng. The drink was very popular among blue
collar workers in the country. When he sampled it, Mateschitz reportedly discovered that the drink
was good at combating jetlag. The idea of marketing an energy drink in Western markets surfaced
when he realized that though energy drinks had a huge market in Asia, there was no such product
available in Europe.
10
James O’Brien, “How Red Bull Takes Content Marketing to the Extreme,” http://mashable.com,
December 19, 2012.
11
Amy Kellow, “Red Bull takes out 2012’s Best Transmedia Campaign,” www.adnews.com.au, January
15, 2013.
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Red Bull: The Stratosphere Campaign
12
Glucuronolactone is a carbohydrate and taurine is an acidic chemical substance found in the tissues of
many animals.
13
Germany had at first banned Red Bull claiming it was an anesthetic. But reportedly, a large number of
cans were smuggled across the Austria-Germany border to be consumed at weekend parties.
14
A prominent business magazine.
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Red Bull: The Stratosphere Campaign
Red Bull was generally acknowledged by marketing experts as a good example of an ordinary
product being transformed into a powerful brand through innovative marketing. The emphasis Red
Bull placed on marketing was evident from the fact that the company spent around 30 percent of
its annual turnover on marketing - much higher than most other beverage manufacturers who spent
approximately 10 percent.
Red Bull differentiated itself from other canned beverages through a can that was narrower, by
using distinct colors, pricing the product high, and attaching a premium tag to the beverage. Thus
right from the beginning, it avoided competing with carbonated drinks like Coca-Cola and Pepsi.
Red Bull was positioned as an energy drink that ‘invigorated mind and body’ and ‘improved
endurance levels’. The company’s slogan ‘Red Bull gives you wiiings’ reinforced this positioning.
The tagline was promoted through a series of advertisements with cartoon characters which flew
after drinking a can of Red Bull.
The beverage was targeted at people who sought increased endurance, speed, concentration, and
alertness. The company claimed that the drink stimulated metabolism and improved the drinker’s
vigilance and emotional status. However, despite the company’s claims, nutritional experts
declared that the product had no ingredients that could confer actual benefits other than providing
an instant ‘kick’ after consumption.
Red Bull’s main ingredients were caffeine, sugar, some vitamins, and chemical substances like
taurine and glucuronolactone. (Refer to Exhibit I for the ingredients of Red Bull). These were more
or less the same ingredients found in other soft drinks like Coca Cola and Pepsi. However, the
quantities of caffeine and sugar in Red Bull were almost double those found in large servings of
cola soft drinks. The additional caffeine and sugar were thought to be responsible for the ‘lift’
consumers experienced soon after drinking it. According to scientists, sugar and caffeine were
absorbed by the human body immediately and this was what gave the person drinking it a sudden
surge of energy. A similar effect could be obtained by drinking extra-strong sweetened coffee.
Red Bull’s brand image was that of a stimulant or party drink. The values associated with the
brand - irreverence and individualism - appealed to the young urban consumers it targeted. “The
beauty of Red Bull is that it’s the anti-brand brand. Red Bull doesn’t have any of the commercial
trappings of a traditional, off-the-shelf product. It’s underground, even when it’s above ground,
and that appeals to the young people who drink it,” said Marc Gobe (Gobe), the author of
Emotional Branding: The New Paradigm for Connecting Brands to People.15
From the start, Red Bull’s marketing strategy was unconventional. When the drink was first
launched in Austria, Mateschitz understood that its target market in Europe would have to be
different from its blue collar market in Asia. In Europe, coffee was the preferred ‘pick-me-up’
used by all classes of people. However, Mateschitz was confident that he would be able to create a
market around hip, young urban professionals and students who would be open to a new ‘cool’
alternative to coffee.
Red Bull dispensed with traditional modes of advertising to make effective use of buzz marketing
in promoting the beverage to the target market. “We were always looking for a more creative,
different point of view,” said Mateschitz.16
When Red Bull first entered a new market, the company’s sales people provided free cases of the
drink to influential, trend-setting college students, and encouraged them to throw a party for their
classmates and friends. The idea was that once the target group had tried the product, it would be
15
Anni Layne Rodgers, “ It’s a (Red) Bull Market After All,” Fast Company, October 2001.
16
Kerry A. Dolan, “The Soda With the Buzz,” Forbes, March 28, 2005.
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Red Bull: The Stratosphere Campaign
easier to establish the market. This strategy allowed Red Bull to gain immediate acceptance among
the college-going crowd as a cool and happening beverage. It also built its reputation as a party
drink for people who needed the energy to party all night.
Analysts said that Red Bull’s buzz marketing played a critical role in helping it gain a foothold in
new markets. According to marketing experts, ‘Generation Y’ (people born after 1981) was
generally skeptical of traditional marketing. As a consequence, traditional modes of advertising
had little impact on them. Besides, during the 1990s and early 2000s, companies had been
deluging customers with promotional material and people had learned to block out most of these
messages. In this context, what was needed was an innovative method to cut through the clutter
and make an impact on the target market.
Red Bull had decentralized marketing teams to build the product in a new market. The marketing
teams built awareness about the brand among youth icons, locally popular youngsters, DJs, at
clubs, and at other joints frequented by youth. In several countries, the drink gained popularity as a
mixer for vodka.
Red Bull’s grassroots marketing helped it cut through the clutter effectively. The company was
able to get its message across to the target market without being too ‘obvious’ about it. Using
students to market the product to other young people gave it instant credibility in that consumer
age group. “Cool college students have become Red Bull’s best ambassadors because they carry
the most credibility with cynical consumers. It’s almost as if brands have to be elected to be part of
the culture now,”17 said Gobe. The company also ensured that it chose people who were young,
athletic, and stylish to be its brand ambassadors to enhance its image in the market.
In addition to sponsoring student parties, Red Bull employed ‘consumer educators’ to get its
message across to the general public. Consumer educators were the company’s sales
representatives who frequented public places like beaches, exhibitions, and meetings where young
people congregated and gave away free samples of the beverage. Additionally, they distributed
promotional material about the product and answered any questions people might have about Red
Bull. Reportedly, consumer educators often left empty cans on tables in clubs and bars, subtly
making the product one that people saw around and got familiar with.
Red Bull also developed the Mobile Energy Team (MET) program, where students drove around
in cars and pick-up trucks and distributed free cans of the beverage ‘where energy was needed’.
These vehicles were painted blue and silver - the colors of Red Bull - and had an oversize Red
Bull can strapped on the back or top. These Racers, as they were called, created tremendous
visibility for the company, and helped underscore Red Bull’s image as a youthful and hip brand.
An important reason for Red Bull’s success was that the company chose its target market well and
reached it effectively. Visibility and availability were the central themes in all of Red Bull’s
promotions. For instance, Red Bull gave away free samples at organizations and places where
people worked long hours, in stressful conditions. The availability of the drink encouraged people
to try it when they felt enervated, and many of them soon got hooked on Red Bull.
Red Bull was also widely available near gyms and colleges and was aggressively marketed to
bartenders and bar owners. If it was not possible to retail through convenience stores in the
selected region, the sales reps opened kiosks to sell the drink. “We don’t bring the product to the
people. We bring people to the product. We make it available and those who love our style come
to us,”18 said Mateschitz about Red Bull’s promotions.
17
Anni Layne Rodgers, “It’s a (Red) Bull Market After All,” Fast Company, October 2001.
18
“Selling Energy,” The Economist, March 9, 2002.
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Red Bull: The Stratosphere Campaign
When Red Bull first entered a market, the company’s sales reps tied up with distributors in key
locations (near colleges, gyms, etc.). For an initial period of around three months, the company
paid for the distributors’ promotional and advertising costs and also bore the cost of the samples
distributed. Once Red Bull had established its presence in the region, the company gradually
phased out this support.
Red Bull usually attempted to establish an ‘exclusive’ network of distributors in each of its
markets. After it gained a foothold in a new market, the company generally insisted that the
distributors carry only Red Bull and no other beverage, even if the other beverages were not direct
competitors. If this was not possible, the company set up a warehouse in the region and hired
students and other young people to act as distributors. The main task of these budding distributors
was to see that the beverage was supplied to the stores in the region and that it was given
prominent shelf space.
Very soon after entering a new market, Red Bull’s sales reps contacted bars and trendy nightspots
to promote Red Bull to the bartenders and owners. After a bar had placed an order for a certain
number of cases, the company would give it Red Bull branded coolers and other promotion
material. “We go to on-premise accounts first, because the product gets a lot of visibility and
attention. It goes faster to deal with individual accounts, not big chains and their authorization
process,”19 said Markus Pichler (Pichler), executive vice president for strategic planning at Red
Bull North America.
In order to expand its customer range, Red Bull began targeting golf clubs in 2004. The company
successfully secured the distribution in more than half of the golf clubs in the UK where the
energy drinks were served at course shops, on drinks buggies, and in hotels near golf courses. 20 In
addition to this, at the European Professional Golfers Association Tour, the players were
encouraged to drink Red Bull before trying for the final five holes.
Red Bull was also involved in promoting the product through movies. In 2004, in Thailand, Red
Bull released special Red Bull Extra Hellboy edition cans prior to the debut of a science-fiction
action film ‘Hellboy’. For the Thai market, Red Bull advertised its brand when the leading actor
wore a Red Bull T-shirt in a popular and critically acclaimed movie Mon Rak Transistor (A
Transistor Love Story). Similarly, in other countries also, Red Bull promoted its brand through
blockbuster action movies like The Fast and the Furious and Save the Last Dance, in which the
actors were seen consuming the Red Bull drinks.
In 2006, Red Bull started uploading videos on YouTube.21
In 2007, Red Bull launched the Red Bull Media House project, which was a multimedia content
producer. (Refer to Exhibit II for more about Red Bull Media House). In 2011, Mateschitz, said,
“Our media philosophy is as simple as it is correct: the onus is on the media to create content, not
on us to provide it. If our results, achievements, and activities are worth reporting, you will read
about them.”22
19
Kenneth Hein, “A Bull’s market - The marketing of Red Bull energy drink,” Brandweek, May 28, 2001.
20
Mark Sweney, “Red Bull Drops Youth for Golfers in Shift to Mainstream,”
www.marketingmagazine.co.uk, May 25, 2004.
21
John Jurgensen, “The New Producers, It’s a Long Way from the ‘Colgate Comedy Hour.’ Companies
like Red Bull Are Not Just Sponsoring Shows and Sports, They’re Aiming to Create and Own them,”
http://online.wsj.com, December 21, 2012.
22
Ed Hammond, “Red Bull: Where Marketing Goes into Overdrive,” http://www.ft.com, September 28,
2011.
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Apart from being associated with youngsters, the brand established a connect with sports, as it was
marketed as a product that provided energy and stamina. Over the years, Red Bull associated itself
with unorganized and unconventional sports apart from conventional sports like football and
hockey. It was also involved in creating and marketing new sport events. Through these events,
Red Bull promoted its brand and also reached its target audience. The hallmark of the company
was its extreme sports and the spirit to create an event rather than merely sponsor it. Analysts said
that Red Bull was the first company to create a sport to promote its brand, and this helped it
achieve a recognizable presence in the sports market.
Red Bull’s association with extreme sports started soon after its inception, when in 1998, it
launched ‘The Red Bull Dolomitenmann’, an extreme endurance event involving running,
paragliding, kayaking, and mountain biking. The race started at Lienz, Austria. The first round was
mountain running, where the athletes had to cross changing terrain and sections. The gliders had to
start in extreme surroundings of almost 2,440 meter altitude. The cross-country mountain biking
included crossing the gravel paths and forest paths followed by areas where the bikes had to be
carried. The athletes were required to cross slopes and single-file paths. Then came the water
kayaking included boating through wild water regatta with slalom and extremely tough upstream
sections; the athletes needed to battle the currents of river Drau and river Isel. The race finally
ended at Lienz. Every year, more than 100 teams, comprising four players each, competed over
60km in this marathon race.
Another event that Red Bull was associated with was Flugtag (German for ‘flying day’), which
was started in 1991 in Vienna, Austria, where participants built their own flying machines that
were launched from a ramp 9 meters high and had to leap off into a body of water. The event’s
success encouraged Red Bull to start holding it every year at several locations across the world.
The final winner of the Flugtag was judged on the basis of the distance covered during the flight,
innovation in design, and impressing the judges and the crowd through preflight performances.
The success of the event made Red Bull give serious thought to the association with sports and
sports sponsorship and it paved the way for the company to enter into more traditional, high profile
sports like football and hockey. It was estimated that as of 2009, Red Bull spent around US$ 300
million a year on sports, sports marketing, and sponsoring events and athletes.
It owned many enterprises in sports and was associated with several sports teams in Austria,
Germany, USA, Brazil, and Ghana. Several renowned athletes were a part of Red Bull’s sports
teams. Red Bull sponsored and organized sporting activities like kayaking, hang-gliding, rough-
terrain biking, cliff diving, skateboarding, etc. Analysts opined that the association with sports
helped to elevate the brand and get attention without using conventional advertising channels like
television and outdoor advertising. According to Mateschitz, “Since the beginning it has been a
brand philosophy and how to look upon the world, rather than pure marketing for consumer goods.
So it is both ways, the brand is supporting the sports and culture community, as well as the other
way round.”23
Red Bull also sponsored mainstream sports and owned several sporting teams. In April 2005, it
bought the Austrian football team SV Austria Salzburg and renamed it Red Bull Salzburg. The
company also purchased the New Jersey-based MetroStars Major League Soccer team from its
former owner Anschutz Entertainment Group in 2006 and renamed it New York Red Bulls. In
Brazil, Red Bull owned a football club, Red Bull Brasil. In Germany, in 2009, Red Bull took the
license of a football club and renamed it RasenBallsport Leipzig e. V (RB Leipzig). 24 It also took
over the football facility Zentralstadion in Leipzig, and renamed it Red Bull Arena. As of 2014,
RB Leipzig was playing in the 3.Liga, the third division football in Germany.
23
“Marketing with Wings: Dietrich Mateschitz and the Art of Branding,” www.europeanceo.com, October
16, 2013.
24
Red Bull owned 49% of the club according to the specifications of German Football Association.
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Red Bull owned hockey league EC Red Bull Salzburg in Austria and a professional ice hockey
team EHC Red Bull München, in Germany.
In Australia, it owned motor racing team Triple Eight Race Engineering, which it took over in
2013. The team was renamed Red Bull Racing Australia.
Red Bull was actively involved in Formula One. It owned two Formula One teams - Infiniti Red
Bull Racing in Austria and Scuderia Toro Rosso in Italy. Some of the popular drivers of the teams
were Mark Webber (till 2013), Sebastian Vettel, and Daniel Ricciardo. Red Bull first entered the
motor racing arena in 2004 when Mateschitz bought the Jaguar racing team from Ford. Previously,
the company was involved in the sport through its association with the Sauber racing team and
through its sponsorship of the Junior Driver program.
Red Bull also owned a professional football club in Ghana, Africa, and an auto racing team in
Brazil.
One of the sports in which Red Bull was involved was Red Bull Crashed Ice which was a
combination of hockey, downhill skiing, and boardercross. Experts said that this sport was clearly
associated with perseverance and masculinity, which Red Bull wanted to promote. Every year,
several competitors took part in the event that was held in the USA, Canada, and several European
countries. With Red Bull finding several takers among women, the brand extended its target
market and from 2012, began inviting women to participate in the event.
Red Bull was also involved in snowboarding and the team had special helicopters to drop athletes
on to unused mountain ranges.
Red Bull was the first company to conduct Air Races. The idea behind this sport was to merge the
speed and racing of F1 with flying. The team at Red Bull which was involved in coming up with
new sporting ideas, mooted the idea of Air Races in 2001 and the efforts came to fruition in 2003.
Air Race was designed to challenge the best pilots in the world to navigate through inflatable
obstacles known as air gates. The first race was held in 2004 and became a global event the next
year. Every year, ten pilots took part in the events that took place in seven countries. The races
were held near water bodies, air fields, and also near places of natural wonder. These races grew
highly popular within a short span of time, and several television channels across the world
covered the event.
Red Bull was also involved in several extreme sports like Cliff Diving, where divers dived from a
height of around 90 feet; Red Bull Rampage, which was a downhill motorbike competition; street
basketball; motorcycle races; freestyle motocross; winter extreme sports like downhill ice cross;
etc. By being associated with these sports, Red Bull became known as the brand behind extreme
sports.
Red Bull also sponsored several athletes and encouraged them to come up with ideas to conduct
new events. Analysts opined that association with extreme sports had reaffirmed its values and
identity.
Association with sports helped the company make its presence felt in the social media too. By
2013, Red Bull was active on the social media. Arun Hozack, VP-marketing at Red Bull North
America, said, “Personal interactions, athlete sponsorship, event participation, and word-of-mouth
has always been a part of our DNA. Social media in recent years is a natural evolution of our
strategy and has amplified our engagement.”25
However, one of the notable features of Red Bull’s social media participation had been that it
never talked about its products; rather, the community managers were engaged in posting amazing
photographs of games like surfing, snowboarding, car racing, and skateboarding. According to
25
Natalie Zmuda, “Red Bull’s Stratos ‘Space Jump’ Wowed the World -- While Selling a Lot of Product,”
http://adage.com, September 02, 2013.
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Rebecca Lieb, analyst at Altimeter Group, “Look, Red Bull has introduced its content marketing
around and about the product, but it is never directly correlated to the drink itself. Nobody is going
to go to a website and spend 45 minutes looking at video about a drink. But Red Bull has aligned
its brand unequivocally and consistently with extreme sports and action. They are number-one at
creating content so engaging that consumers will spend hours with it, or at least significant
minutes.”26
Since 2005, Red Bull had had an idea that was ready to be converted into a record breaking event
through an Austrian skydiver and base jumper - Baumgartner, who was involved in several
extreme sports. In 1999, Baumgartner had set a world record for the highest parachute jump and
was the first person to sky dive across the English Channel.
The idea of the Stratosphere event was to jump at a speed that broke the sound barrier. In 2007, the
project was started with a team of 300 people. Experts from the fields of engineering, aviation,
medicine, aerospace, skydiving, and science were a part of the team. Specialists in constructing
stealth bombers, surgeons, and medical professionals were also a part of the team. The
development of a capsule to carry Baumgartner into space also began the same year.
In 2008, the team was expanded when Colonel Joe Kittinger (Kittinger), who held the record for
the longest skydive as of 2008, joined it as Baumgartner’s mentor. Kittinger was a US military
pilot who had set the previous skydiving record on August 16, 1960, when he jumped from a
height of 19 miles from a helium filled balloon and reached a highest speed of 600 miles per
hour.27 The training and development program continued and in 2010, the project was finally
launched. Baumgartner announced that he would try to break the ‘space diving’ record set in 1960
by Kittinger.
Red Bull spent almost five years in developing a pressurized life-support capsule and a space suit
for Baumgartner. The capsule weighed 1315 kilos, was 3.4 meters high, and had a width of 2.4
meters. More than 40 engineers, aviators, and scientists contributed to designing the capsule,
which was built by US-based aerospace composites and design company Sage Cheshire
Aerospace. It had four components, a pressure sphere, cage surrounding the pressure sphere, a
foam insulated shell, and a cage.
The capsule was designed to maintain pressure during ascent to the planned 120,000 feet 28. It had a
parachute attached to it along with life gauges, control systems, and communication equipment.
The capsule was attached to a helium balloon that was 165 feet high and 0.0008 inches thick, to
carry it into space. The balloon made of a high-performance polyethylene film, weighed 1682 kilos
and covered 40 acres of land when laid flat on the ground.
The space suit was designed by David Clark Company, which made suits for astronauts, to enable
Baumgartner to withstand temperatures in the range of 1000F to -900F. The four-layered suit had
mirrors to give Baumgartner a better field of vision. Without such a suit, the extremely low air
pressure at the height from which Baumgartner planned to jump could lead to the blood boiling.
The helmet weighed 8 pounds and had a retractable sun shade. There was a visor attached, which
had a heating circuit. Other features of the helmet were an oxygen port and a drinking port. It had a
communications system through which Kittinger could chat with Baumgartner constantly. The suit
was designed to maintain air pressure of 3.5 psi.
26
James O’Brien, “How Red Bull takes Content Marketing to the Extreme,” www.mashable.com,
December 19, 2012.
27
Michael Rundle, Ted Thornhill “What Felix Saw: Red Bull Stratos Body Camera Video,”
www.huffingtonpost.co.uk, October 15, 2012.
28
1 mile ≈ 1.609 kilometers ≈ 5,280 feet
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Red Bull: The Stratosphere Campaign
While the capsule was being manufactured, the position of the cameras and the type of cameras to
capture all the events were decided on. They used nine high definition cameras, three 4K
resolution cameras29 which could be controlled from earth, and three DSLRs, which were
embedded in the capsule. Five high definition30 cameras were placed on Baumagartner’s suit (two
on each thigh and one on chest). An optical tracking camera system called the joint long range
aerospace imaging and relay cameras were developed. These cameras used the technology used in
launching space shuttles. Cameras were also installed on the tracking helicopter to provide aerial
footage. Most of the cameras were modified to function in extreme conditions and in space.
From February 2012, promotional material about the proposed jump began appearing on the
websites of Red Bull, and also on its YouTube channel. The company also launched the official
Twitter account and a blog which detailed the preparations for the jump.
In March 2012, the first test jump was completed by Baumgartner at the New Mexico desert,
where he jumped from 71,581 feet, with a top speed of 587 kilometers per hour. He became only
the third person in history to jump from such a high altitude. During the leap, Baumgartner’s free
fall was for 3 minutes 33 seconds.
In July 2012, the second test jump was conducted, where Baumgartner leaped 90,000 feet (18
miles) in New Mexico. During this test jump, he reached a top speed of 863 kilometers per hour,
and had a free fall for 3 minutes 48 seconds.
This test jumps were filmed. Between March 2012 and October 2012 Red Bull released 6 related
videos on YouTube, which included training clips and teaser trailers. The company also unveiled
many behind the scenes photos and videos. Various interviews and quotes from the project
‘Stratos’ team were released. The video of the event generated around 12 million views. For
several weeks before the event, Red Bull’s YouTube channel received 2,142 subscribers per day
on an average.
In October 2012, the capsule was launched from New Mexico’s Roswell International Air Center at
9.30 a.m. A few minutes into the ascent, Forbes commented, “Red Bull is getting some
incredible exposure around the world with today’s launch. No direct payoff from tickets or TV
deals, but nobody is going to forget today’s Bull-branded leap for quite some time.” 31 Travelling at a
speed of 1,000 feet per minute, the capsule reached the Armstrong Line 32 at 63,000 feet just after an
hour. In about an hour and a half, it reached a height of 90,000 feet.
It travelled for more than two and half hours to reach 127,708 feet into the stratosphere. At 12.07
pm, just before leaping from the capsule, Baumgartner said, “I know the whole world is watching
now, and I wish the world could see what I see. And sometimes you have to go up really high to
see how small you really are.” 33 He made an exit from the capsule at a height of 128,100 feet, and
fell for 4 minutes and 20 seconds, covering a distance of 119,846 feet, before he opened the
parachute. The total descent time was over 11 minutes. The event team reported that the highest
29
4k cameras have resolution of 4000 pixels.
30
High definition cameras from Go Pro brand were used. These were highly popular in shooting extreme
action videos.
31
Chris Smith, “Red Bull Stratos LIVE: Watch Felix Baumgartner Break The Speed Of Sound,”
www.forbes.com, October 14, 2012.
32
At Armstrong point, water boils at 37 °C, as the pressure is low.
33
Chris Irvine, “Felix Baumgartner: Daredevil in Record-Breaking Free Fall Attempt,”
www.telegraph.co.uk, October 14, 2012.
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
vertical velocity during the freefall achieved by Baumgartner was 833.9 miles per hour or 373
meters per second (more than the freefall speed of 690 miles per hour required to break the sound
barrier from the said altitude).34
This record breaking event was widely covered by the media. It was captured by Red Bull Media
House. Right from the time the idea was conceived, the media group was involved in the project.
On the day the jump was scheduled, more than 80,000 subscribers joined the YouTube Red Bull
channel. The event was live streamed and YouTube reported 8 million concurrent views of the
stream. The previous YouTube viewing record was for 500,000 concurrent views, achieved during
the London Summer Olympics Games 2012. 35 In its official blog, YouTube quoted, “Today the
Red Bull Stratos Mission took Felix Baumgartner to the edge of space and back, and the world
tuned in to Red Bull’s YouTube Channel to see it all. At peak, you were watching more than 8
million concurrent livestreams of this mission. We congratulate Felix Baumgartner and the entire
Red Bull Stratos team for their successful mission, and for creating a livestream with the most
concurrent views ever on YouTube.”36
The average number of subscribers on YouTube on the day of the jump reached 87,801 from an
average of 2,142 per day in the first week of October 2012.
The event was telecast in 50 countries through 80 television stations and 280 news websites
embedded a live player from YouTube to broadcast the event. This garnered 52 million web views,
becoming the most watched live stream. The event was telecast live on Discovery network and
became the highest-rated non-prime television event in the channel’s history.
Red Bull also established a dedicated Twitter account, Facebook page, and Instagram feed for the
Stratos event. On Facebook, the event received 900,000 interactions (include likes, comments, and
shares) in one day. The official page of Red Bull received more than 700,000 interactions.
On the day of the event, half of the trending topics on Twitter mentioned the feat. The hashtags
associated with the event included ‘Livejump’, ‘redbullstratos’, ‘Stratos’, ‘felixBaumgartner’,
‘spacejump’, and ‘redbull’.
Within 40 minutes of the picture of Baumgartner’s landing being posted on Facebook, it attracted
216,000 likes, 10,000 comments, and 29,000 shares. Within two days, the likes increased to half a
million. The Red Bull official page also received more than 21,000 comments and 489,000 likes
after the photo of the landing was posted.
The next day, it found 2.6 million social media mentions. It became one of the biggest digital live
events, with over 3.2 million tweets on certified hashtags at Twitter, more than 1 million likes on
Facebook, and around 22,000 photos on Instagram. 37 Ben Sturner (Sturner), President and CEO of
Leverage Agency, said, “The sponsorship transcended sports and entertainment into Pop Culture,
hitting new consumers that Red Bull does not usually capture, and on a global scale. The value for
Red Bull is in the tens of millions of dollars of global exposure, and Red Bull Stratos will continue
to be talked about and passed along socially for a very long time.”38
34
Catharine Smith, “Red Bull Stratos YouTube Live Stream Attracts Record Number of Viewers,”
www.huffingtonpost.com, October 14, 2012.
35
36
“Red Bull Stratos Space Jump Smashes YouTube Records,” http://oursocialtimes.com, October 15, 2012.
“Mission complete: Red Bull Stratos Lands Safely Back on Earth,” www.youtube-global.blogspot.in,
37
October 14, 2012.
“Social Media: Red Bull Stratos,” www.redbullmediahouse.com.
38
Darren Heitner, “Red Bull Stratos Worth Tens Of Millions Of Dollars In Global Exposure For The Red
Bull Brand,” www.forbes.com, October 15, 2012.
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
Around one million social conversations were generated and experts said that this meant that
ninety million people followed the campaign. Two million people joined for Red Bull
subscriptions. This was much more than what the company could have achieved through
advertising on traditional channels. According to Sturner, “You can’t get a photo of Felix without
the Red Bull logo and you can’t talk about him without talking about Red Bull Stratos. When
you’re in the Super Bowl, you’re one of 70 ads or so. When you go around the NASCAR track,
you’re one of 44 teams. This is about owning something that will leave an impression.”39
Red Bull posted a simple update ‘Felix has landed successfully from his jump from the
Stratosphere’. Within 40 minutes of this update, Red Bull received 261,000 likes, 10,000
comments, and more than 29,000 shares of the post that did not advertise the product directly.
Experts said that there was huge activity and a lot of engagement associated with the event. They
said it led to meaningful interaction from people across the world. Those monitoring the event said
that 82% of the consumer activity was positive.
In the digital age of growing social media, Red Bull had understood the need for a big marketing
shift from traditional channels to modern platforms. Analysts were of the view that this stunt made
Red Bull earn millions of fans through social media like Facebook, Twitter, and YouTube.
Analysts said that both the event and its coverage were unprecedented, both technologically and
from the marketing perspective. Dave Thier, who covered topics related to technology and sport,
for Forbes, said that instead of spending money on buying advertisements, Red Bull had come out
with an event to generate interest and conversation among the consumers and had benefited from
the deal too. He said, “Baumgartner’s jump was that perfect social media campaign because it
didn’t go through the networks themselves, but through the people on the networks - Red Bull just
did something that people wanted to talk about, and they used viral channels to do so.” 40
Red Bull Stratos officials said that the project was aimed at understanding how the human body
responded to the extreme environment near the edge of space. Analysts said that the mission
served to further aerospace safety, development of new generation space suits, parachutes systems,
systems to follow during exposure to high altitudes, and supersonic acceleration and deceleration.
The campaign also impacted the company’s sales. In the US, within six months of the launch of
the Stratos, sales increased by 7% to $ 1.6 billion. 41 Sturner estimated that Red Bull benefited
immensely from the event. He said, “The value for Red Bull is in the tens of millions of dollars of
global exposure, and Red Bull Stratos will continue to be talked about and passed along socially
for a very long time.”42 (Refer to Table I for various records set at Social sites by Red Bull Stratos)
National Geographic and BBC made a special program ‘Space Dive’ on the historic space jump.
Four years in the making, the program tracked Baumgartner’s preparations for the event, the
challenges the team faced, the specialists involved in the event, the design of the parachute,
capsule, and space suit, etc. Baumgartner was chosen as ‘People’s Choice Adventurer of the Year’
by National Geographic.
In spite of the success that the event achieved in the social media, there were a few analysts who
were not impressed with the feat and with Red Bull’s association with extreme sports. They said
that Red Bull was going beyond what was necessary to promote the brand. According to an Jeremy
39
Janean Chun, “Red Bull Stratos may Change Future of Marketing,” www.huffingtonpost.com, October
15, 2012.
40
David Their, “Felix Baumgartner’s Jump Proves the Power of Publicity Stunts,” www.forbes.com,
October 15, 2012.
41
Natalie Zmuda, “Red Bull’s Stratos ‘Space Jump’ Wowed the World -- While Selling a Lot of Product,”
http://adage.com, September 02, 2013.
42
Darren Heitner, “Red Bull Stratos Worth Tens of Millions of Dollars in Global Exposure for the Red Bull
Brand,” www.forbes.com, October 15, 2012.
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
Bullmore43, “Yet one of the many brilliant features of the Red Bull communications strategy is that
it earns the brand immense credit for its risk-taking activities while exposing the brand to none.
Risks are taken, certainly; but not by the brand. The risks are borne entirely by the participants. To
be chillingly matter-of-fact about it: if a pilot got killed in a Red Bull air race or if a Red Bull
Formula One driver got killed in a Grand Prix, the reputation of the brand would, if anything, be
enhanced. Without the possibility of disaster, risk is a meaningless concept. For the possibility of
disaster to be kept alive, disaster must occasionally occur.”44
Table I
Records set by Red Bull Stratos on various Social Sites
721,000 fans on Red Bull Stratos Facebook page.
More than 900,000 Likes of Facebook page
51,000 + photo shares.
88,000 new fans after the giant leap.
252,000 followers at Twitter, on @RedBullStratos.
2,000 tweets per second during the jump.
103,000 new followers after the jump.
Source: www.newquest.com.au
43
Jeremy Bullmore is author of popular books like Behind the Scenes in Advertising, and ‘Another Bad
day at office’.
44
Jeremy Bullmore, “No, It wasn’t one Giant Leap for Marketing,” Market Leader, Quarter 1, 2013.
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
Exhibit I
Red Bull’s Ingredients
Each 250 ml can of Red Bull contained the following:
Ingredient
Taurine
Also known as 2-aminoethanesulfonic acid, taurine is important in several
metabolic processes of the body. Taurine functions in electrically active tissues
such as the brain and heart to help stabilize cell membranes. It also has functions
in the gallbladder, eyes, and blood vessels and may have some antioxidant and
detoxifying properties.
Glucuronolactone
A naturally occurring substance manufactured by the human body. Like taurine,
glucuronolactone is supposed to detoxify the body. Little research has been done
on the effects, and the only relevant studies have been conducted on animals so
the risk to humans cannot be adequately assessed.
Caffeine
An alkaloid found naturally in such foods as coffee beans, tea, kola nuts, Yerba
maté, guarana, and (in small amounts) cacao beans.
Niacin (niacinamide)
Also known as nicotinic acid or vitamin B3, niacin is a water-soluble vitamin
whose derivatives such as NADH play essential roles in energy metabolism in
the living cell.
Pantothenic acid (calcium d-pantothenate)
An antioxidant, water-soluble vitamin needed to break down carbohydrates,
proteins, and fats. It is found in whole grain cereals, legumes, eggs, meat, and
other foods.
Vitamin B6 (pyridoxide HCI)
A water-soluble vitamin that exists in three major chemical forms: pyridoxine,
pyridoxal, and pyridoxamine. Vitamin B6 performs a wide variety of functions in
your body - for example, protein and red blood cell metabolism.
Riboflavin
Also known as vitamin B2, riboflavin is an easily absorbed, water-soluble
micronutrient with a key role in maintaining human health. Like the other B
vitamins, it supports energy production by aiding in the metabolizing of fats,
carbohydrates, and proteins and can be found in milk, cheese, leafy green
vegetables, liver, yeast, almonds, and mature soybeans.
Vitamin B12 (cyanocobalamine)
Helps maintain healthy nerve cells and red blood cells, and is needed for the
production of DNA, the genetic material in all cells. Deficiency of vitamin B12 is
the cause of several forms of anaemia. Also called ‘cobalamin’ because it
contains the metal cobalt.
Standard non-medicinal ingredients:
Carbonated water, Sucrose, Glucose, Citric acid, Inositol, Flavours, Caramel
Compiled from various sources
14
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
Exhibit II
Red Bull Media House
Red Bull Media House (RBMH), a media company launched in 2007 Salzburg, Austria, is
focused on sports, culture, and lifestyle. In 2011, it opened its first dedicated media subsidiary
in Los Angeles, USA. RBMH has a global network of correspondents present in more than 160
countries across the globe. It offers content across all media channels such as TV, mobile,
digital, audio and print. RBMH has been offering a wide range of targeted business
opportunities like content distribution, licensing, brand partnerships, and advertising, for
partnership with other companies, affiliates, and media partners. The company has become one
of the world’s leading media companies engaged in creating premium content.
RBMH has been offering a wide range of premium media products for both special interest and
broader audiences. The company includes two specialized units Servus Media and Terra Mater
Factual Studios. Servus, a TV station and print magazine, is available in German-speaking
regions and works on tradition, “love of life”, and authenticity. However, Terra Mater Factual
Studios focuses on cinematic feature films and premium TV documentaries; it works in areas of
wildlife, nature, science, and history, as well as innovative factual entertainment series.
RBMH is a publishing house for high-quality print publications. As of 2014, it offers four
magazines like The Red Bulletin - for those interested in sports, culture and lifestyle; Servus in
Stadt & Land - that focuses on matters that are natural, down-to-earth, authentic, and grounded
in the region; Terra Mater is related with nature, science and old-fashioned journalism; and
Seltenblicke magazine is for those who are interested in the world of showbiz and celebrities.
There are three dedicated TV offerings: the Red Bull TV which has been offering action, sports,
culture, and lifestyle programming; Servus TV which presents culture, technology, and nature
programs; Terra Mater Factual Studios, which works to bring the best in nature and geography
documentaries and feature films.
By focusing on unique concepts and content, RBMH manages all the online activities for the
Red Bull Brand. It also focuses on mobile media and applications. Under the RBMH’s music
portfolios, there are Red Bull Music publishing, Red Bull Records, and Red Bull Music
Academy Radio. RBMH has been developing, publishing, and managing the console games,
browser games, and portal, mobile games, and ingame integration. As of 2014, the media house
is an industry leader in the production and distribution of youth-oriented motion pictures and
non-fiction action sports films.
Compiled from various sources
15
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
1. “ESPN’s George Bodenheimer and Red Bull Media House to be Given Special Honors
at PromaxBDA’s 2013 Sports Media Marketing Awards,” www.reuters.com, November
06, 2013.
2. “The Big Brand Theory: Red Bull’s Social Media Marketing,”
http://socialmediatoday.com, October 21, 2013
3. Mel Peck, “Rival Energy Brand Takes a Cheeky Swipe at Red Bull’s Marketing with
Fun Parody Ad!,” www.thedrum.com, October 16, 2013.
4. “Marketing with Wings: Dietrich Mateschitz and the Art of Branding,”
www.europeanceo.com, October 16, 2013.
5. Natalie Zmuda, “Red Bull’s Stratos ‘Space Jump’ Wowed the World -- While Selling a
Lot of Product,” http://adage.com, September 02, 2013.
6. Ilhan Farah, “Red Bull Stratos Campaign,” http://prwomenalgonquin.wordpress.com,
June 09, 2013.
7. “Sports Emmy Award for 24 mile High Production Studio Created by Red Bull
Media House,” www.redbullmediahouse.com, May 07, 2013
8. Jeremy Bullmore, “No, It wasn’t one Giant Leap for Marketing,” Market Leader,
Quarter 1, 2013
9. Francesca Rice, “The PR Industry’s Favourite Campaigns of Last Year,”
www.prweek.com, March 21, 2013
10. “Red Bull Tops the One Centre’s Transmedia Campaign Chart,” www.bandt.com.au,
January 15, 2013.
11. Amy Kellow, “Red Bull takes out 2012’s Best Transmedia Campaign,”
www.adnews.com.au, January 15, 2013.
12. John Jurgensen, “The New Producers, It’s a Long Way from the ‘Colgate Comedy
Hour.’ Companies like Red Bull Are Not Just Sponsoring Shows and Sports, They’re
Aiming to Create and Own them,” http://online.wsj.com, December 21, 2012.
13. James O’Brien, “How Red Bull Takes Content Marketing to the Extreme,”
http://mashable.com, December 19, 2012.
14. Nicola Kemp, “Six Marketing Lessons from Red Bull Stratos,”
www.marketingmagazine.co.uk, October 19, 2012.
15. “Red Bull Stratos may Change Future of Marketing,” www.bsomultimedia.com,
October 17, 2012.
16. Calum McGuigan, “Red Bull: Masterminds of New Age Marketing,”
www.creativeguerrillamarketing.com, October 16, 2012.
17. Janean Chun, “Red Bull Stratos may Change Future of Marketing,”
www.huffingtonpost.com, October 15, 2012.
18. “Red Bull Stratos Space Jump Smashes YouTube Records,” http://oursocialtimes.com,
October 15, 2012.
19. Darren Heitner, “Red Bull Stratos Worth Tens of Millions of Dollars in Global
Exposure for the Red Bull Brand,” www.forbes.com, October 15, 2012.
20. Michael Rundle, Ted Thornhill “What Felix Saw: Red Bull Stratos Body Camera
Video,” www.huffingtonpost.co.uk, October 15, 2012.
21. David Their, “Felix Baumgartner’s Jump Proves the Power of Publicity Stunts,”
www.forbes.com, October 15, 2012.
22. Ashley Peabody, “Red Bull’s Stratos Mission - More Than Just a Great Ad Campaign
Waiting to Happen,” http://ashleypeabody.wordpress.com, October 14, 2012.
16
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Sem III, Class of 2019-2021.
Red Bull: The Stratosphere Campaign
23. Chris Smith, “Red Bull Stratos LIVE: Watch Felix Baumgartner Break The Speed Of
Sound,” www.forbes.com, October 14, 2012.
24. “Mission Complete: Red Bull Stratos Lands Safely Back on Earth,” www.youtube-
global.blogspot.in, October 14, 2012.
25. Chris Irvine, “Felix Baumgartner: Daredevil in Record-Breaking Free Fall Attempt,”
www.telegraph.co.uk, October 14, 2012.
26. Catharine Smith, “Red Bull Stratos YouTube Live Stream Attracts Record Number of
Viewers,” www.huffingtonpost.com, October 14, 2012.
27. John Tierney, “Daredevil Sets Sight on a 22-Mile Fall,” www.nytimes.com, October 08,
2012
28. “Red Bull to Leverage on F1 to Grow Indian Energy Drinks Market,”
www.mydigitalfc.com, September 30, 2011.
29. Ed Hammond, “Red Bull: Where Marketing Goes into Overdrive,” http://www.ft.com,
September 28, 2011.
30. David Stone, “Red Bull Hits Back at Child Marketing Accusation,”
www.foodmag.com.au, June 06, 2011.
31. “Red Bull North America Assigns Media Responsibilities to Carat,” www.reuters.com,
September 13, 2010.
32. John Tierney, “A Supersonic Jump, from 23 Miles in the Air,” www.nytimes.com,
March 15, 2010.
33. Max Davidson, “Red Bull Flugtag: Flights of Fancy,” www.telegraph.co.uk, June 07,
2008.
34. Caroline Parry, “Marketing Jobs Facing the Axe in Red Bull Restructure,”
www.marketingweek.co.uk, August 02, 2007.
35. “Red Bull Energy Drink Selects Big House Film and Photography Studio, San
Francisco, for its Cutting-Edge Multi-Sensory Marketing Program, Red Bull
MusicLabs,” http://web.archive.org, October 19, 2006.
36. Kerry A. Dolan, “The Soda With the Buzz,” Forbes, March 28, 2005.
37. Sam Mathews, “Athens Success sees Adidas and Red Bull Extend UK Athletics
Sponsorship,” www.brandrepublic.com, February 23, 2005.
38. Mark Sweney, “Red Bull Drops Youth for Golfers in Shift to Mainstream,”
www.marketingmagazine.co.uk, May 25, 2004.
39. “Selling Energy,” The Economist, March 9, 2002.
40. Anni Layne Rodgers, “ It’s a (Red) Bull Market After All,” Fast Company, October
2001.
41. Kenneth Hein, “A Bull’s market - The Marketing of Red Bull Energy Drink,”
Brandweek, May 28, 2001.
42. Kate Fitzgerald, “Red Bull Charged up,” http://adage.com, August 21, 2000.
43. www.redbullmediahouse.com
44. www.youtube-global.blogspot.in
45. www.facebook.com/redbullstratos
46. https://twitter.com/RedBullStratos
47. http://energydrink.redbull.com
48. www.redbull.com
49. www.redbullmediahouse.com
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Sem III, Class of 2019-2021.