GIVES YOU WINGS!

HISTORY OF RED BULL:

Headquartered in Fuschi am See, Austria, Red Bull is a privately owned company

founded by Dietrich Mateschitz in Austria in 1984 and launch the product Red bull

onto Austrian market and made its first sale in 1987. Today, the company is

producing and distributing Red Bull energy drinks to 171 countries and over 62

billion cans of Red Bull have been consumed so far.

Since its introduction Red Bull has managed to grab and keep the majority share

of the energy drink market. The marketing strategy of Red Bull is an interesting

one. Red Bull employees an association marketing strategy that would fit the

model for athletic and sports event planners. Red Bull employs marketing tactics

that make you stop and watch. It’s interesting and exciting. Extreme sports, cliff

diving, and concerts. They project an image that appeals to their target market’s

entertainment needs, and then they create a positive association of that event or

production to their product. They sponsor music and extreme sports events where

they create their own sales environments that brings the audience to the product.

Rarely on their website do you ever actually see a Red Bull can. The marketing
focuses more on how do we find new customers rather than how do we sell a

product. New customers then become a stable consumer for their product. Red

Bull’s customer base has proven to be extremely loyal.

GOAL AND PROSPECTS

Red Bull is the short to medium term targets and goals that the organization sets to

achieve the bigger strategic goals set for the long term. The organizational

objectives are important in shaping resource allocation within Red Bull as well as

in determining the policies, schedules and processes that are implemented.

1) To create brand preference for the product as the source for the mind and body

invigoration within generation Y.

2) To maintain the strong brand leadership within the energy drink market by

building more awareness of the high-quality performance of the product

3)To pursue the secondary market target of the older population needing the energy

to maintain their active physical being.

4) Red Bull should develop SMART goals to meet the strategic targets identified in

the mission statement

5) Red Bull should also develop ethical grounds to remain in line with the mission

statement.

6) Red Bull should keep goals flexible, but the means to achieve the goals should

be stringent and should reflect the values drafted in the mission statement.

MARKET SHARE OF REDBULL

Red Bull market share was 43% of the Energy Drinks market in 2020. Red Bull

has the highest market share of any energy drink in the world.

PRODUCT DESIGN
This Austrian energy drink continues to be one of the bestselling

energy drinks in the world. Their boots on the ground marketing

efforts, coupled with the “Red Bull gives you wings” slogan, make

for a successful energy drink formula.

The Red Bull packaging strategy includes the tall yet thin aluminum

that quickly became the signature packaging design for energy drinks.

The can is ideal because of its portability, grip ability and durability.

Differentiating yourself from the crowd is one thing, but the can has become

such a symbol, taking a different packaging approach risks consumers’ recognition.

When looking to stand out, test your packaging innovation against the industry

standard to be sure that your point of differentiation isn’t actually a point of distraction.

Product description

Red Bull is a popular energy drink consumed by millions. Red Bull comes in 8oz,

12oz, or 20oz cans. The package is attractive and eye catching in blue and silver

with the name brand in a contrast red. The can, we have found, is of a make and

material that absorbs and holds refrigeration well. This is most likely a necessity

to the quality of the total product. It has been our experience that a hot red bull

doesn’t taste as good as a crisp cold one. The refrigeration contributes strongly to

the recipe of the drink. Red Bull is crisp, refreshing, and a boost of energy. It has
a light citrus flavor that is considerably less syrupy sweet than its competitor

Monster Energy.

Red Bull Packages are 100% recyclable and cost-efficient to produce. Another win for

the Red Bull can design.

The colors of the Red Bull can include bright clean lines. Marketing for Red Bull is

towards young athletes who are into extreme sports. Matching their demographic, the

symmetrical image of fighting bulls suggests power and endurance.

Red Bull’s high price point is not a detractor of sales. Red Bull employs a high

pricing strategy and their customers willingly pay it. Although there is now a wide

variety of energy drinks in the market that are lower priced, Red Bull’s market

doesn’t seem to waiver with the lower pricing of other competitor’s substitute

products. Red Bull customers associate the energy drink with quality, and they are

willing to carry a higher price for it.

CANADIAN MARKET ANALYSIS

Some of the major competitiors are in the market are Goldwin Healthcare, Power
Horse Energy Drinks GMBH, Monster Beverage Corporation, Nutra like Health
Care etc.
 Major Competitors

1. Goldwin Healthcare

2. Power Horse Energy Drinks GMBH

3. Monster Beverage Corporation

4. Nutra like Health Care

5. Keurig Dr Pepper,

6. PepsiCo,

7. The Coca-Cola Company

PRODUCT AVAILABILITY

The product is sold in most convenience and grocery stores. However, Red Bull

products are subject to more restricted distribution channels. Though, like other

drinks, Red Bull is carried in stores, the stocking, inventory, delivery, and service

of its distribution is performed solely by Red Bull representatives. Products are

displayed in a Red Bull specific case that’s easy to see.

Convenience stores have low capital requirements when compared to the

supermarket/hypermarkets. Owing to the low capital required, the number of

convenience stores in Canada is higher. Since Red Bull are priced on a higher end

compared to other soft drinks and carbonated drinks, and though consumers are

aware of the benefits associated with the consumption, the sales by volume are not

huge. Furthermore, these stores are located in convenient spots, such as close to the

colonies, so that the products are easily available to the nearby residents. This, in

turn, is increasing the demand for products as well as the sales from the

convenience stores.
TARGET MARKET SEGMENTATION

Demographics
The current target market for Red Bull is primarily teenagers and young adults.

Because of the price point, Red Bull can also be perceived as a market aimed at

higher income individual and the business professionals social class

Psychographics

Red Bull wants to appeal to younger individuals interested in music, sports, and

events. The personality traits they are aiming for is a daring lifestyle, open to new

experiences. Busy working professionals who need a boost. They invite

socialization with peers of similar interest. They appeal to, and project, an

energetic, dynamic image and brand identity

Geographic

Red Bull was originally developed in India but has now expanded to 171 countries

globally. Although different cultures employ a wide variety of preferences, taste,

and attitudes, Red Bull translates well across cultures. They are speaking to a

younger generation that has more comfort with global organizations, digital

communications and media, and similar interest. Socialization with peers is also a

strong draw with young adults across cultures. Their brand identity translates

across those markets globally while maintaining consistency in its image and

packaging. Energy and excitement speak to the young in a common language

Media

Red Bull’s media plan is best described as its profile in the market. Energetic and

Dynamic. Red Bull employs its marketing in a way that you would usually

associate with event and sports promoters. The sponsor and create events for

market segments to attend and then positively correlate their product with the

target customers interest. They are selling a lifestyle, a personality, more so than a

product.

Marketing Strategy Table

Product The product is well matured and stable. Reb Bull carries a primary
flavor and occasionally test market other flavor options. The product
has been at market saturation for a long enough period of time that it
would be expected to be heading into decline, but the marketing
strategy has kept the drink relevant and after three decades, still holds
the largest markets share
Price Price Sensitivity is not a primary consideration with Red Bull.
 Customers are loyal and associate the product with quality. The price
can also be price-prohibitive to lower social classes, placing the
product in a perceived higher income and social class. The company
rarely has substantial price reductions or discounts, although it does
offer four and twelve-packs as a bulk option, but with little savings in
the bargain.
Place Red Bull is readily available in convenience and grocery stores. The
distribution channels are controlled by Red Bull and the products are
placed in the store in signature Red Bull cases. Although all products
expire, Red Bull has a decently long shelf-life of 18-24 months after
manufacture. In most cases there is more than ample stock. The
distribution channels are well planned and well stocked so as to cut
cost on fuel and delivery costs.
Promotio Red Bull’s marketing promotions are different than traditional
n marketing campaigns for similar products. The form, function, focus,
and life cycle stage of effectiveness is original and creative. Usually
in the maturation stage, promotion becomes less effective. In the case
of Red Bull, though the product is at full maturation, the marketing
campaign centers around an on-going series new events and its
effectiveness is not tied to the maturation of the product. It is able to
continually promote the product to drive more sales even through the
maturity stage.

MARKET ANALYSIS

So, what drives a marketing strategy for an energy drink when the

product isn’t the primary object of their advertisement? I believe the answer is the
“energy” of the company, the excitement, the daring. Red Bull’s primary target

markets are teenagers and young adults, male and female, any race, in upper

income and higher social classes across the globe.

Red Bull has managed to project a young, energetic, dynamic image for

thirty years. This image is important because it reflects who Red Bull’s target

market is. Young, energetic, dynamic, adventurous customers. In analyzing Red

Bull’s marketing strategy, they are focusing primarily on teenagers and young

adults. Their marketing campaigns are geared to customers who thrive on social

interaction and “extreme” events.

Red Bull also places itself in a price point that would appeal to individuals

who might consider themselves higher income and of elevated social status.

However, the company’s placement of their product makes it readily available to

people in ways that would take advantage of both higher -income stable customers

as well as lower-income variable buyers. The events that Red Bull sponsors and

creates are also accessible to customers online and in videos, so that those who

may not have the financial means to attend, can still feel like they are included.

The company primarily focuses on target markets that it may be perceived

would benefit from a “boost”. Athletes, extreme sports stars, working

professionals, young people who spend weekends out having fun are all in Red
Bull’s sights. They sponsor and create events that showcase popular athletes and

musicians and create a perceived connection between the two.

Red Bull’s product is geographically flexible. They began in Canada and

now have expanded its products across 171 countries selling over six billion cans

last year. The company is never satisfied with the status quo. They are

continuously expanding into new markets. Last year alone they experienced new

growth in developing markets ranging from a 12-30% increase in sales.

In our final analysis of the product we found that though the product has

been at market saturation for some time, they are not experiencing a decline in

profitability. The company rejects the traditional product lifecycle by continuously

renewing themselves in their market advertisements. The product is over thirty,

but the company doesn’t allow the image it projects to get stale or out of date. It

continues to stay relevant with its Peter Pan marketing strategy that keeps it forever

young.

The product is sold in most convenience and grocery stores. However, Red Bull

products are subject to more restricted distribution channels. Though, like other

drinks, Red Bull is carried in stores, the stocking, inventory, delivery, and service
of its distribution is performed solely by Red Bull representatives. Products are

displayed in a Red Bull specific case that’s easy to see.

References:

Energy Drinks: An Assessment of Their Market Size, Consumer,

Demographics, Ingredient Profile, Functionality, and Regulations in the
United States
Heckman, M., Sherry, K., & De Mejia, E. (2010). Energy Drinks: An Assessment
of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality,
and Regulations in the United States. Comprehensive Reviews In Food Science
And Food Safety, 9(3), 303-317. doi: 10.1111/j.1541-4337.2010.00111.x

Red Bull Marketing Strategy

Jadhav, S. (2017). RED BULL MARKETING STARTEGY. Retrieved 20 October
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Red Bull Official Company Profile

Red Bull Energy Drink - Official Website – Company Profile. (2019). Retrieved
21 October 2019, from https://www.redbull.com/us-en/energydrink/company-
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Red Bull Official Website

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