Extreme Sprots for Advertising in Red Bull

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“Extreme Sports in Advertising”

Student Number - 1222114
TM6004- Marketing Communication
Lecturer-Victor Pineda
Number of Words- 2447
12 March 2013

Table of Contents
Introduction3
Review of the Literature4
Findings6
Recommendation7
Conclusion8

Introduction
Extreme sports have started as a niche activity which is defined by most people by rebellious youth performing outrageous stunts. The participants were labelled as delinquents and were characterized for their unconventional use of public spaces, but the perception began to change in the mid-1990s as the youth of America became enchanted with these counter-cultures, non-traditional sports and daring enthusiasts that participated in them. (Active Network Rewards, 2007) The advertisers are using these extreme sports as an effective way to keep their brands “cool” in the minds of the youth. The brands like Mountain Dew, Panasonic, Toyota, and Red Bull are some of the examples of the wide array of industries that are marketing significant investments to reach extreme sports enthusiasts. (Active Network Rewards, 2007) The extreme sports market segment is difficult to measure because of the fact that there are no clearly defined boundaries, because there are different kinds of Extreme Sports well known to people. This paper would talk about Red Bulls advertising strategy using Extreme Sports. The reason for the researcher choosing Red Bull as the company to be talk about is because during 2012, Red Bull is the top 1 energy drinks based on dollar sales. Here are the following top 8 energy drinks:

Table 1 : Top 8 Energy Drinks Based on Dollar sales in 2012
Top 8 Energy Drinks| Sales in 2012|
Red Bull| $2.95 billion|
Monster| $2.6 billion|
Rockstar| $0.78 billion|
Amp| $0.30 billion|
NOS| $0.25 billion|
Full Throttle| $0.14 billion|
Xyience Xenergy| $0.04 billion|
VPX Redline| $0.02 billion|
(Energy Fiend, 2006 - 2012)
Another reason that the researcher chose Red Bull is that the company is participating in different Extreme Sports. In Table 1 also it shows the competitors of Red Bull, the main competitor of Red Bull is Monster which is distributed by Coke. The Monster Energy Drink is also a well-known energy drink brand, also monster is also investing to advertise and compete in Extreme Sports. Red Bull started when Dietrich Mateschitz was in Hong Kong, during 1982, and was musing into the popularity of ‘tonic drinks’ that were big sellers in the Far East when the idea of selling similar beverages in the West came to him. He then went on to form a partnership with a couple of local businessmen who were already producing a drink called ‘Krating Daeng’ (Thai water buffalo) and it was from this that Red Bull was born. (Jones, 2009) He founded Red Bull GmbH with his Thai partners Chaleo & Chalerm Yoovidhya. They have agreed that Mateschitz would run the company and after much research, testing and setbacks, the caffeinated energy was finally launched in Austria in 1987. (Jones, 2009) During 1887 when Red Bull was founded and hit the Austrian market the company’s key strategy for the company’s growth was to engage the company into action sport athletes to believe in and endorse the product. (Jessop, 2012) Review of the Literature

The following are some of the sports that Red Bull is sponsoring: * BMX
* Formula One
* NASCAR
* Rallying
* Surfing
* Etc.
In 2006 the CEO and founder of Red Bull Dietrich Mateschitz estimated that the company is spending $300 million, or a third of the company’s annual marketing expenditures on their sports sponsorships. (Ho, 2006) This is a huge amount of money to spend on sporting events by a company. This just shows how aggressively Red Bull is targeting this segment of the market that it currently owns. This segment has come under pressure recently with the involvement of the big guns of the drinks world Coca-Cola and Pepsi. They also...
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