Red Bull

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Overview about Red Bull
Red Bull is an energy drink. Red Bull is an adaptation of the Thai energy drink Krating Daeng, which translates as "Red Bull". Based on market share, it is the most popular energy drink in the world. The company was founded by Thai national Chaleo Yoovidhya and Austrian national Dietrich Mateschitz. Red Bull's slogan is "it gives you wings" and the product is aggressively marketed through advertising, tournament sponsorship sports team ownerships (Red Bull Racing, Red Bull Salzburg, Red Bull NewYork) and celebrity endorsements. In 2009 it was discovered that RedBull Cola exported from Austria contained trace amounts of cocaine. Mateschitz adapted the product to Western tastes by diluting it, lowering the caffeine content, and adding carbonation. Red Bull essentially invented the functional energy´ beverage category in Western markets, named thus because the beverages were meant to be consumed for energy, not enjoyment purposes. Both the Thai version and Mateschitz’s version of Red Bull contained the following energy-enhancing ingredients: caffeine, taurine, and glucuronolactone. These three ingredients, along with a variety of sugars and vitamins, contributed to the following properties claimed by Red Bull: Improves physical endurance, Stimulates metabolism and helps eliminates waste substances, Improves overall feeling of well-being, Improves reaction speed and concentration, Increases mental alertness. Red Bull did not define a specific demographic or psychographic segment as its target market. Rather, the company sought to reach a broad range of consumers based on their need for a stimulating drink. By not defining a narrow consumer target, Red Bull ensured that it could grow into numerous market segments. In mature markets, Red Bull achieved its highest penetration in the 14±19 age range, followed by the 20±29 range. On Product review, Red Bull is a sweet, caffeinated drink aimed to give consumers the high energy kick. Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only two flavours (original or sugar-free). It contains caffeine, taurine, glucuronolactone, and B vitamins. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull has become the world’s leading energy drink, a staple in many young and active people’s lives. For Competitors, big global companies such as Coca Cola and Pepsi have introduced their own energy drink versions to their product base. Mother (by Coca Cola), Amp (Pepsi), V, Battery, Red Eye and Bennu being just some in the ever-growing energy drink market. Competition also presents itself in original sports drinks, such as Gatorade (Pepsi) and Powerade (Coca Cola). Furthermore, premixed alcoholic drinks like the Smirnoff range form part of the competition. Red Bull has becoming hugely successful and operates within the global soft drink market place. Within the soft drink industry its niche is the energy drink market, of which Mateschitz was largely responsible for creating. Red Bull currently is the leading energy drink across the entire globe. It holds 70% of the market worldwide. Once the drink was passed by health ministries, Red Bull entered the Austrian market, soon thereafter then moved into Germany, United Kingdom and the USA by 1997.

Question 1 (a)
What created Red Bull’s success? Where is the core franchise and benefit? Has the product’s positioning changed over time?

The launch of Red Bull has been the most successful beverage launch of the last decade. It´s success is due to partnering a quality product with well-thought out original communication strategy. Which resulted in establishes Red Bull, not as fashion phenomenon, but as premium brand with continues growth. Red Bull´s real product benefits justified a premium price. It is by far the most expensive non-alcoholic drink on the market. Red Bull is 3 to 6 times more expensive than Coke. Word of mouth (WOM) promotion is based on the principle of pull...
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