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Red Bull

In: Business and Management

Submitted By atiqahoth
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1. HISTORY

In 1982, Dietrich Mateschitz learned about so-called “tonic drinks”, which enjoyed wide popularity in Asia. While he was sitting in the bar at the Mandarin Hotel in Hong Kong he got the idea of marketing those particular functional drinks outside Asia. This was not a new idea, but a variation on the Lucozade theme, another popular energy drink marketed by Smith Kline Beecham. However, Red Bull included other ingredients to achieve a different flavor.

(Figure 1: Red Bull Founder- Dietrich Mateschitz)
So it was that in 1984, Mateschitz founded the Red Bull GmbH company. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987.
Red Bull rapidly gained in popularity, giving people wings right from the start. In 1992, Red Bull touched down in its first foreign market, in Hungary. Today, Red Bull is energizing over 100 countries around the globe, such that many superstores have copied the idea with their own brand products, which invariably are inferior in one aspect or another.Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA, New Zealand, South Africa, Eastern and Western Europe.
Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States. (Ohio, Tennessee and the Dakotas are among the few states without it.) In less than three years, Red Bull singlehandedly established and then lifted the booming energy drink category from a base of $12 million in (wholesale) dollar sales to $42 million in 1998 and $75 million in 1999, per Beverage Marketing Corp. Others soon followed, building energy drinks to a $130 million business. Now Coke (KMX) and Anheuser-Busch (180) are jumping in. Last year, Red Bull's market share stood at 65%, while the...

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