Red Bull Marketing

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The Red Bull Branding Story

Report by:
myparanoidego

Table Of Contents:

Executive Summary…………………………………………………………………….. 3

1.0 Introduction…………………………………………………………………………… 6

2.0 Brand Positioning and Values………………………………………………..... 8

3.0 Brand Characteristics……………………………………………………………... 11

4.0 Product Benefits and Consumer Satisfaction…………………………….13

5.0 Brand Communities……………………………………………………………….. 15

6.0 Brand Equities……………………………………………………………………….. 16

7.0 Conclusion……...……………………………………………………………………… 19

8.0 Appendix……………………………………………………………………………….. 20

9.0 References…………………………………………………………………………….. 20

Executive Summary

Red Bull GmbH is a small company, who manufactures “Functional Drinks” or “Energy Drinks” on a global scale. Originating in Thailand the two key players in the rise of Red Bull were Thai national Chaleo Yoovidhya and Austrian national Dietrich Mateschitz. After visiting Thailand in 1985, Mateschitz discovered “Krating Daeng” meaning ‘Red Bull’, and spent the next two years pioneering to create a carbonated version to suit the taste of Western culture.

From 1987, Red Bull was launched in Austria with the tag line “Red Bull verleiht Flüüügel” (Red Bull Gives You Wiiings). It wasn’t until 1992 that Red Bull began to roll out in other European countries. “Part of the growth strategy was to enter new markets slowly and methodically in order to maximise buzz and build anticipation” Keller, K. L (2008 *A)

By 1997, Red Bull was available in 25 markets globally, including Western and Eastern Europe, New Zealand and South Africa. Over the decade since its inception Red Bulls sales by 200%, from 1.1 million units to over 200 million units, and by 2004 the company had worldwide annual sales of nearly 2 billion cans in 120 countries.

The Marketing Strategy used by Red Bull was not to pound the market with their presence but to be seen as an exclusivity, and to be perceived as the drink for all occasions when needed. In this way, marketers left empty cans in nightclubs, placed samples and dispensers in universities and allowed the value of Red Bull to spread via word of mouth. Red Bull marketed the following properties:

* Improves Physical Endurance
* Stimulates Metabolism and Eliminates Waste Substances
* Improves Overall Feeling of Well-being

* Improves Reaction Speed and Concentration
* Increases Mental Alertness

These characteristics of the Red Bull product opened itself up to a whole range of potential consumers and marketing situations. Because of its properties, Red Bull used the slogan “Revitalizes Mind and Body”, and positioned the drink using a premium pricing strategy, marking the price up by at least 10% on the most expensive competitors product.

Norbert Krailhamer explains:
“We are much more expensive that [cola]. This is OK because ours is an efficiency product, so we can charge this price premium, which is the secret of its success… Due to the respect for a price premium brand… we can charge what is fair for the benefit” Keller, K. L (2008 *A)

A large portion of Red Bull’s success has to do with the use of the distinctive Red Bulls and Rising Sun logo and slender 250mL can as seen on their sponsorship sign writing and general advertising. It is debatable whether or not Red Bull would be as popular and successful without this insignia. Evidence of this can be traced to the introduction of Red Bull in Germany , where the demand was so great that they sold out of canned stock and had to switch to glass bottles to keep up with the demand. As soon as the bottles were introduced the demand dropped.

The success of Red Bulls marketing strategy can be highlighted with the bungled entry of Red Bull into the United Kingdom in 1995. The marketers believed that the United Kingdom was too different from the Austrian market, so altered the marketing plan. The changes occurred in three distinct ways: “Extract:

1) the company marketed Red Bull as a...
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