How Red Bull Maintain Their Stronghold

Topics: Energy drink, Red Bull, Red Bull GmbH Pages: 23 (8095 words) Published: May 6, 2011
Contents0.0 Abstract 1.0 Introduction 2.0 History 3.0 Does Red Bull® Revitalise the Body and Mind? 3.1 What are the ingredients in Red Bull®? 3.2 Red Bull®’s adverse health effects 3.3 Has Red Bull® profited from controversy?

2 3 3-4 4-5 5 6 6-7 7 8 8 9 9 10 11-12 13 14 14 15-16 16-17 17 17 18 18-19 20 21-24 25

4.0 Red Bull® a non-descript market?
5.0 How is Red Bull Marketed? 5.1 Sponsorship 5.2 Advertising 5.3 Brand Image 5.4 Some of Red Bull’s extreme sports athletes and events in pictures 6.0 Revolutionary Marketing 7.0 Maintaining market share 8.0 Competition and Intellectual property 9.0 Discussion 9.1 Diversification of product range 9.2 Drinks for the “Health Conscious” consumer 9.3 New Marketing Ideas 9.4 Expanding the business model 9.5 Business Ideas and Partnerships 10.0 Swot Analysis 1987 VS 2009 11.0 Conclusion 12.0 References 13.0 Appendix

Definitions: Well being; a person’s physical mental and environmental health Neutraceuticals; foods which have medicinal effects on human health

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When we first started, we said there is no existing market for Red Bull ... but Red Bull will create it. And this is what finally came true. Dietrich Mateschitz (Dolan 2005 p.1) Red Bull®’s 1987 launch established an “energy drinks” market. In 2009 they continue to dominate the globally. How did they achieve? How do they plan to maintain their stronghold? 0.0 Abstract In 1987, revolutionary marketing and advertising techniques coupled with fortunate circumstances enabled Red Bull to create the “energy drink” market. In today’s diverse and ever-expanding market of 228 competitors, Red Bull is likely to lose overall global market share. Ever optimistic, Red Bull continues with extreme sports sponsorship, creating events, nurturing the Red Bull® “lifestyle”, a strategic business plan including expanding into emerging markets and developing products and plans to include multi-million dollar resorts and theme parks. Red Bull® has every reason to be confident of its future.

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1.0 Introduction In 2008, the worldwide Functional Drinks market was worth $26.9 billion. Relatively new and still developing, by 2013 the market is expected to expand by 64.3% to a value of $44.3 billion (Datamonitor PLC 2008), spread over three different categories: Sports, Energy, and Nutraceutical. These products aim to improve users, physically and mentally or just improve “well-being” (Moosa 2002; Datamonitor PLC 2008). With energy drinks being the largest sector at 47.3%, Red Bull®, was first of its kind, holding a 29% global market share in 2008. (Datamonitor PLC 2008). “Spreading its wings” internationally since its birth in 1987, 2008 saw Red Bull® GmbH worth €10.9 billion, selling over four billion cans worldwide in 70 countries (Müller 2009). 2.0 History Red Bull® was the brainchild of Austrian, Dietrich Mateschitz, ex-managing director of toothpaste manufacturer Blendex, where he travelled widely, experiencing different cultures (Gschwandtner 2004). On one business trip, Mateschitz read that one of Japan’s highest taxpayers was Mr. Taisho, manufacturer of an energy giving drink. Later in Thailand, he learned that taxi drivers use these drinks to counter fatigue. Mateschitz also noted that the drink’s ingredients lacked a patent (Gschwandtner 2004). Armed with this information, in 1984 he approached Chaleo Yoovidhya, owner of Thai company TC pharmaceuticals, producer of the “Kratindang” energy drink (Gschwandtner 2004). Mateschitz’s concept was to form a company selling its own energy drink worldwide at a premium price (Keller 2004). Chaleo agreed, each took a 49% stake, investing half a million dollars. Chaleo’s son took the remaining 2%, and Mateschitz agreed to run Red Bull® (Dolan 2005). Red Bull® was first established in Austria. Initially wary of the product’s unusual ingredients, Austria’s government insisted on stringent scientific safety testing. Thus, Red Bull® was not...
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