“Gives You Wings”
The Red Bull brand is an iconic worldwide model of how a company can create a powerhouse and a style of marketing that many traditional companies would never attempt. The company uses its extreme stunts and sponsorships of extreme sports to promote the brand and product and excel in a style that has attracted a younger generation with a main focus on teenagers to the late twenties. This has mainly been due to the success of Dietrich Mateschitz, who helped found the company with a marketing degree from a school in Austria, and prior corporate marketing experience after working for Blendax, (now Proctor & Gamble) (Solomon). Thus far, the brand has found ways of success even in difficult economic times using its marketing to pave the way for other companies and competitors to emulate. In recent times, Tim Krieglstein has been promoted to a lead marketing position for the company (Ramsay). Krieglstein, as well as the other Red Bull marketers now have a decision to make for the brand in order to stay relevant with their current consumer base. As the clientele ages, their wants in a drink slowly change too. As a company, Red Bull will have to exercise their options and find whether it would be appropriate and cost effective to introduce a different product into the market still living up to the Red Bull advertising ideals of extremity however have a focus on health and wellness. Their other alternative would be to create or buy a brand, as other competitors have done to differentiate all-together in order to focus on their current as well as new older clientele.
The option for Red Bull to create or buy a brand with a healthy focus or for the older clientele is a relatively common practice for brands that want to expand their consumer base. There currently are competitors already in Red Bull’s market that have added or bought brands in order to interest the health craze as well as the older generations. These competitors include the company PepsiCo, who introduced Gatorade (non-caffeinated but has electrolytes for sports), as well as Naked Juice (fruit blended juice with no added sugars or preservatives) and Izze (carbonated fruit juice drink with no preservatives) (Pepsi). Other competitors include Coca-Cola who has created and accumulated hundreds of brands to compete with the ever changing market and entertain every type of person (Coca-Cola). With these corporations already having a competitive advantage to the market that Red Bull would be joining, it poses one of many challenges that they will have to face. Since these companies have existing clientele and have experience in this type of market whereas Red Bull has experience in the energy drink market, Red Bull would have to adapt its brand in order to create success and create a competitive advantage over the other existing companies.
Defining the Problem
Red Bull’s current market consisting of the younger generations gives them an advantage that could allow them to introduce a brand that would essentially meet the current market needs, however slowly expand as the clientele ages and begins to find other important specifications in a drink. This idea of slowly introducing a new brand would require a large amount of cash from the Red Bull Corporation. The other alternative that Red Bull could use would be to attain a company and become its ‘parent company’ as both Coca-Cola and PepsiCo have done. This would involve finding a company that currently exhausts the ideals of Red Bull, or are easily moldable in order for an easy transition for Red Bull to be a successful competitor to Coca-Cola and PepsiCo with their many healthy brands. Red Bull would then have to find ways to successfully market the brand to create interest of international or previously unaware consumers as Red Bull is a worldwide and well...