...RED BULL IN INDIA The case has been written by Prof. Rishabha Nayyar, Director, Genesis Institute of Business Management (GIBM) for the purpose of an in-class discussion. The content and data is fictitious and has no relevance whatsoever to any existing brand in the market. The case attempts to drive understanding / application of the marketing concept. Rakesh Singh was sitting in his office waiting for the Board of Directors to call him to the conference room. Rakesh has been appointed a year ago as the CEO of Red Bull India Ltd. and had been given the responsibility of growing the brand. However, a year had passed and the results were not there for showing. Rakesh was carefully looking at everything in his office being very sure that this was probably the last time he would ever see it again! Background Red Bull is a highly successful branding story. The brand came into existence in 1984. The brand was created by an Austrian professional turned businessman Mr Dietrich Mateschitz. The story goes like this -The original inventor of Red Bull energy drink is said to be Chaleo Voovidhya, a Thai businessman. In 1962 he created a drink named Krating Daeng (meaning Red Bull in Thai). In 1982 when Mr Dietrich visited Thailand, he came across this product which helped him to tide over the jetlag very quickly. Impressed by the product efficacy, Dietrich decided to take this product to Europe. He started Red Bull Gmbh with equity participation from Chaleo Voovidhya. By the year 1987...
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...Background of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusual styles of marketing and have up till now sustained their position. But whether or not these unconventional strategies can carry on being effective with competitors like Sting and Speed emerging and keeping in mind the behaviors of the Pakistani consumers, is yet to be answered. The difference of Red Bull customers outside Pakistan and Pakistani consumers is vast and hence those extreme sports, club partying do not entirely relate to them. This needs to be addressed any marketing activities should be planned keeping in mind the different nature of the Pakistani consumer who are usually more susceptible to what they see on television, print and radio. The emergence of competitors like Sting and Speed means that Red Bull can now face a problem if they do not start extensive marketing campaign through not just BTL but also ATL methods too, just like its competitors are currently doing. If Red Bull remains in myopia, its downfall may soon be inevitable at the hands of big brands like Sting...
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...RED BULL HISTORY In 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed widespread popularity throughout the Far East. His idea to market these functional drinks outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in Hong Kong. In 1984, Mateschitz founded Red Bull. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Meanwhile Red Bull is present in 164 countries. Since 1987, around 30 billion cans of Red Bull have been consumed, more than 4.6 billion in 2011. The responsibility for the success of the world's No. 1 energy drink is shared by the company's 8,294 employees around the world (compared to 7.758 in 2010). The Red Bull headquarters are based in Fuschl am See, not far from Salzburg, Austria. [http://www.redbull.com/cs/Satellite/en_INT/How-it-all-started/001242939605518?pcs_c=PCS_Article&pcs_cid=1242937556879] The Target Market 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 . So it would be not very useful to restrict the target market to the geographic areas as well as the psychographic segmentation for the targeted consumer that’s because...
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...sales of Red Bull? Criteria: Market Penetration , Market Development, Product Development, Diversification. (10) Market Penetration: An increase in sales can be made through new promotions or a wider range of adverts and advertising platforms, that will increase the consumption of Red Bull. With minor changes to their product, for example the taste, different flavours, Red bull will also meeting their consumers need for variety. Although I believe that Red Bull already has a very firm market share, as Red Bull was the highest selling energy drink in the world, with 5.387 billion cans sold in 2013, there is still a lot of competition in the energy drink market, like Monster , Red Bull will also need to look into a rewards program to make sure they keep their loyal customers and to attract new customers to the brand. Expansion to other markets, such as Asia and Japan, which has a high percentage of youth, will also help increase Red Bull sales. Market Development: Red Bull can vary their current product and introduce it into a new market by making their product low cost. Different geographical markets can be targeted locally and abroad, to reposition Red Bull as the drink of choice. A variety of sales channels can be used to target different groups of people, for example instead of selling the product in retail shops , the product can be bought online and shipped/couriered to the buyer. The use of social media platforms can also be beneficial to give Red Bull an advantage...
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...Case: Red Bull Red Bull’s success is a result of a great marketing strategy including product placement and creating brand loyalty. Success is also a result of avoiding marketing myopia. Red Bull accomplished this by claiming to satisfy more than just your thirst. Dietrich Mateschitz took the energy drink concept of Krating Daeng in Thailand and broadened it usage by also marketing Red Bull as a sports drink, functional drink, and nutritious drink. Their success was also stemmed from their marketing approach to reach their consumers directly by “word of mouth” concept. After early success, Red Bull has repositioned itself in the market after they failed disastrously in the United Kingdom in 1996. Red Bull moved its marketing strategy from sports energy drink segment to functional energy drink segment. Being an alcohol mixer also contributed to Red Bull’s success. Their direct marketing strategy towards pubs, bars, nightclubs, and deejays proved to be highly successful. Since Red Bull is being distributed in this manner, it became inevitable that people will soon consume this product with alcohol. Red Bull’s success formula is “word of mouth” marketing and being in the forefront of high energy sporting events and athletes. They used word or mouth first then traditional advertising last. Red Bull maintained its position as a functional energy drink category in order to stay successful. Red Bull knew when to turn on the advertising by watching the market...
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...RED BULL – MARKETING CASE STUDY INTRODUCTION Red Bull Gmbh was founded in 1984 by Dietrich Mateschitz after having been amazingly impressed by Far East functional drinks properties. Strongly convinced of the incredible market opportunity for such a drink category, he developed the formula of Red Bull Energy Drink and in 1987 the first Red Bull can was sold for the first time. This was not only the launch of a completely new product, but it was the birth of a totally new product category. The launch of Red Bull has been the most successful beverage launch of the last decade and drinking Red Bull has become a sort of fashion phenomenon. Today Red Bull is available in more than 165 countries and more than 35 billion cans of Red Bull have been consumed so far. Today Red Bull is the world’s leading energy drinks producer and it has approximately 70% of the market share in the worldwide energy drink market. Red Bull is privately held and therefore does not report its financial results but reliable data ensure that the company is an increasing and continuously growing profitable business nowadays with an average increase in sales of 10-12 % each year. Its motto is "Red Bull Gives You Wings". 1) RED BULL’S MARKETING STRATEGY SEGMENTATION Red Bull has a distinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. First Red Bull has segmented the market according to age (demographic variable), personality...
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...The International UNO Summer School 2012 Red Bull: Case Analysis Daniel Mader Andreas Mair Jennie Walker Ellie Walker Macon Blount Marketing Principles Jeffrey R. Foreman, PhD MKT 3501.1 Table of Contents Company Overview 3 Corporate, Business, and Marketing Strategy 5 Market Orientation 6 Marketing Macro Environment 7 Consumer Behavior and Psychology 8 Porter’s Five Forces 12 Pricing Strategies 14 Integrated Marketing Communications 17 Social Media Press Release 19 Future Problems for Red Bull 20 Company Overview I. Mission Statement and Slogan A. Mission Statement * No official mission statement could be obtained, since Red Bull is not a publically traded company. B. Slogan * “Red Bull gives you wiiings.” / “Red Bull verleiht Flüüügel.” * This slogan was popularized via TV commercials in German-speaking countries in the 1990s; the slogan was later translated into English as Red Bull became more internationalized. * Controversy arose over the rights to use the English slogan in the early 2000s when a patent attorney from Sarajevo claimed that he had patented the slogan for his own purposes back in 1997 in Romania. The slogan is still in use today by Red Bull. II. Core Competencies * Needless to say, the brand has developed an image for power, speed, and recklessness, and dominates the energy drink market all across the globe. * As can be seen in Pricing...
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...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...
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...Red Bull History and Ingredients…. Buyer Behaviour - MKT2600D Surenthiran Theannilawu - THSUD11 Contents Introduction 2 History of Red Bull 2 Ingredients 5 1. Taurine 5 2. Glucuronolactone 5 3. Caffeine 5 Buyer Behaviour Theory - Classical Conditioning 6 1. Definition 6 References 8 Introduction This report is a summary of the presentation that has been given out by me on the topic of Red Bull history and Ingredients. Red Bull “Gives You Wings…..” perhaps one of the most known slogans these days. Red bull headquarters is based in Fuschl am See, near Salzburg Austria.Approximately 4.6 billion cans of Red Bull are consumed each year where the product is available around the globe in 164 countries. I have analyzed how a drink which was sold to truck drivers and laborers in Thai become a globally well-known no.1 energy drink. And thereafter I have discussed about the ingredients of Red Bull its benefits and drawbacks. In spite of a lot critics faced by Red Bull, it currently holds the no.1 position in energy drink selling more than 4.6 billion cans around 164 countries according to Red Bull Official Web site. Perhaps, Red Bull is next best well known drink after Coke. This report basically outlines the history of Red Bull, the ingredients, and followed by a buyer behavior theory which I have applied to get more clarity and insight on this topic. History of Red Bull The product was actually founded way back in 1960s by a Thailand business...
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...CASE STUDY OF RED BULL OVERVIEW Dietrich Mateschitz, an Austrian businessman founded red bull in 1984 in Austria. He introduced the drink in Hungary, its first foreign market, in 1992. Red Bull currently is the leading energy drink across the entire globe and holds 42% of the markets share worldwide .Today Red Bull has annual sales of around 4 billion cans in 160 countries including Austria, Germany, United Kingdom, Brazil, Japan, India and South Korea and USA. Their target market is centered on the youth otherwise known as the ‘Generation Y’. Red Bull started with the Red Bull Energy Drink (a slick silver 250ml can with a European look and feel) and later added three(3) of it functional product that is the Red Bull Sugar free, Red Bull energy shot and Red Bull cola. Big global companies such as Coca Cola and Pepsi has introduced their own energy drink versions to their product base and are strongly competing with the Red Bull brand. MARKETING STRATEGY It was generally acknowledged that Red Bull's success was the product of the company's integrated marketing communication efforts to constantly develop the brand. The information below discusses the marketing strategy adopted by Red Bull in the case. - The company's effective employment of buzz marketing in new markets that target trendy shops, clubs, bars, stores, convenience stores(gym, colleges and supermarket) to create widespread brand recognition - Sponsorship of sporting activities, especially extreme sports including...
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...you name for Red Bull? XS Energy, Monster, Rockstar, NOS, 5 Hour Energy, and Burn Energy are direct competitors for Red Bull. These brands focus on developing and selling energy drinks, and have their market shares in the market. Coca-Cola, Minute Maid, Pepsi, Mountain Dew, Fanta, and Starbucks are indirect competitors. These brands provide beverages except mental and physical stimulation drinks. People buy drinks from all the beverage brands if they did not need energy shot. 2. Describe Red Bull’s target market(s). Red Bull has three major target markets that are the athlete, the worker, and the clubber. The athlete, which group needs mental and physical simulation, undoubtedly is a target market for Red Bull. Red Bull for an athlete is an easy and good way to hone his or her stamina, and improve his or her speed. The worker, for example, a long-distance truck diver and a blue-collar worker, is very physical and demanding when he or she works. Red Bull is used as a popular mixer with vodka. It can remain young people and white-collar workers who have fun in a club active, so that the consumer will spend more time there and spend more money there. On the other hand, Red Bull has targeted on youth (16-29 years old) with buzz. 3. How would you describe Red Bull’s product position? Besides the original product line, Red Bull has expanded their product lines Red Bull Sugarfree, Total Zero, Energy Shot, and Red Bull Editions. As its slogans: “Red Bull gives you wings...
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...Red bull is the world's oldest and most successful energy drink brands. In 1966, Red Bull was born in Thailand as a kind of vitamin energy drink, and then Austrian entrepreneur Dietrich Mateschitz was inspired by this pre-existing energy drink and took this idea, modified the ingredients to suit the tastes of westerners. Now it has more than 40 years of history so far with excellent quality and good reputation, Red Bull drinks are sold in more than 140 countries and regions around the world, rank the leading position in the global functional drinks industry (www.redbull.com). As a part of the beverage market around the world, energy drink is becoming more and more popular and can be defined as a type of beverage which contain mainly caffeine or even some stimulant drugs and be able to provide costumers the mental or physical stimulation. Energy drinks are regarded as a subset of the larger group of energy products, which includes bars and gels. Moreover, there are many brands and varieties of energy drinks exist in the drink market, some of them may be carbonated, and generally contain large amounts of caffeine and other stimulants, and some of them may also contain sugar or other sweeteners, herbal extracts and amino acids (p1,2013). As we know, As the leader in energy drink market, red bull take the largest share of the market, the profit will increase rapidly when the market size increase bigger and bigger as well. http://www.slideshare.net/Roel_Kock/red-bull-powerp Environment...
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...Red Bull's Innovative Marketing: Transforming a Humdrum Product into a Happening Brand Abstract: The Red Bull energy drink was launched in Austria in 1987, by Dietrich Mateschitz. He claimed to have experienced the invigorating properties of a popular Thai energy drink, Krating Daeng, on a trip to Thailand. Realizing that a similar product could have good potential in Western markets, Mateschitz obtained the license to manufacture a carbonated version of Krating Daeng from its Thai owners. Obtaining permission to sell Red Bull in Europe was not easy, as it contained several ingredients whose effects on the human body were untested However, permissions were eventually obtained, and Red Bull became exceptionally successful in all the markets in which it was launched. It was generally acknowledged that Red Bull's success was the product of the company's innovative marketing efforts. This case study discusses the marketing strategy adopted by Red Bull GmbH, including the company's effective employment of buzz marketing in new markets, and its sponsorship of sporting activities, especially extreme alternative sports, to enhance its image. The case also talks about Red Bull's target markets, and its pricing and differentiation strategies. It includes a section on the various controversies surrounding Red Bull, and the effects of these on its brand image. The competitive situation in the energy drinks market and Red Bull's position vis-à-vis competitors, is also discussed. The case...
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...Q.1: Advantages: Red bull uses unique marketing methods such as the free sampling in popular spots offered by logoed cars. They have selective venues for a good, exclusive focus. The student brand manager concept familiarizes entire campuses with the brand, the brand managers recruitment system itself being selective (and requires the applicants to be very familiar with the red bull brand). Disadvantages: First of all, some markets are overflown due to the rather selective targeting of red bull. More importantly, the targeting of colleges, while emphasizing the fact that Red Bull mainly targets athletes and people in need of energy, cause some dissociation considering the very high association of red bull and alcoholic drinks in student environments. This, combined with the many health concerns regarding the mixing of caffeine and red bull, causes major criticism of the brand. Q.2. Red bull could have dealt with such rumors by bringing emphasis to the fact that health authorities such as the FDA never actually proved that red bull and alcohol was harmful. Moreover, their omission of particular ingredients such as ephedrine and guarana should be put forward. In a global point of view, they should put forward the fact that correlation (of health hazards and the drink) does not imply causation. Finally, a stricter control regarding the distribution of products on campuses and how they are consumed and used should be a priority for Red Bull if they really want to remain true...
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...Red Bull Gives You Wings: Red Bull’s promotional efforts are unique in a variety of ways when compared to it’s mainstream competitors. Instead of promoting the quality of Red Bull’s taste, they emphasized the effect it had on the drinker such as “increased performance, concentration, reaction time, speed, vigilance, and emotional status” (428). The company gained brand recognition by giving away free samples from a fleet of “logo-bearing off roaders” operated by young attractive operators and word of mouth (429). The company also agreed not to say anything in response to the rumors that flourished about the product ingredient taurine which was said to be a derivative of bull testicles or even bull semen. Instead of trying to put out the rumors, Red Bull used them to their advantage. It attracted attention and increased customer’s interest. Compared to other products such as Coca Cola and Pepsi, Red Bull never focused its advertising on TV commercials. Instead, the goal was to create an experience around the product. Red Bull founder, Dietrich Mateschitz, wanted the brand to hit young people right in the face in a way that they experienced Red Bull to the fullest. They sponsor and promote sporting events and athletes, and even musical events. They also create original programming on their YouTube channel and even have their own music and entertainment production company. Promoting Red Bull through these unique methods helped Red Bull catch the eyes of consumers and established...
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