Redbull Case Analysis

Topics: Energy drink, Marketing, Red Bull Pages: 14 (3914 words) Published: August 22, 2013
The International UNO
Summer School 2012

Red Bull: Case Analysis
Daniel MaderAndreas MairJennie Walker
Ellie WalkerMacon Blount

Marketing Principles
Jeffrey R. Foreman, PhD
MKT 3501.1

Table of Contents
Company Overview 3
Corporate, Business, and Marketing Strategy 5
Market Orientation6
Marketing Macro Environment 7
Consumer Behavior and Psychology 8
Porter’s Five Forces12
Pricing Strategies14
Integrated Marketing Communications 17
Social Media Press Release19
Future Problems for Red Bull 20

Company Overview
I. Mission Statement and Slogan
A. Mission Statement
* No official mission statement could be obtained, since Red Bull is not a publically traded company. B. Slogan
* “Red Bull gives you wiiings.” / “Red Bull verleiht Flüüügel.” * This slogan was popularized via TV commercials in German-speaking countries in the 1990s; the slogan was later translated into English as Red Bull became more internationalized. * Controversy arose over the rights to use the English slogan in the early 2000s when a patent attorney from Sarajevo claimed that he had patented the slogan for his own purposes back in 1997 in Romania. The slogan is still in use today by Red Bull. II. Core Competencies

* Needless to say, the brand has developed an image for power, speed, and recklessness, and dominates the energy drink market all across the globe. * As can be seen in Pricing Strategies, the energy drink is marketed as a premium product. * Special ingredients like taurine and alpine spring water in addition to a high concentration of caffeine in a can half the size of other energy drinks are used to differentiate Red Bull from competitors * Red Bull is known primarily for its dominating position in the energy drink business, selling its Red Bull Energy Drink. * In Austria, the company has also started its own TV channel, called Servus.TV, and a cell phone service called “Red Bull Mobile” * Red Bull sponsors not only many extreme sports athletes, but also a Formula 1 racing team that won both the constructors’ and drivers’ championship in 2010 and 2011 * Red Bull CEO Dietrich Mateschitz has also created the foundation “Wings for Life”, which seeks to support people suffering from paraplegia. The ultimate goal of the foundation is to make paraplegia curable. III. Energy Drink Production

* Production of Red Bull is completely outsourced. Rauch is Red Bull’s licenced partner, and produces and fills the cans in factories in Austria (for the European market) and Switzerland (for Americans) IV. Official Company Figures

* Red Bull employs 8,294 people in 164 countries
* 2011: Company turnover increased by 12.4% from EUR 3.785 billion to EUR 4.253 billion * Key markets: USA (+11%) and Germany (+10%)
* Growing markets: Turkey (+86%), Japan (+62%), France (+35%) and Scandinavia (+34%) Strategy
I. Introduction
* Little official information could be obtained, as Red Bull is not a publically traded organization. Thus, much of what follows is essentially speculation. * For corporate level strategy, see the Overview.

* In recent years, Red Bull has developed several different SBUs, including their own media house for TV, mobile phone services, print and digital media, music publishing, and movie and documentary production; hosting extreme sports events; and of course their Red Bull energy drink. II. Marketing Strategy for Red Bull Energy Drink

* Red Bull started marketing its energy drink to club goers and the underground scene in Austria in the 1980s and 90s. * “Viral” marketing: CEO Mateschitz paid opinion leaders like DJs and students for promoting the energy drink at parties. * Marketing for Red Bull became more diverse as the company became more well-known, both in Austria and abroad. * Comic-style TV spots popularized the slogan “Red Bull gives you wiiings.”, while the Red...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Case Analysis Essay
  • Case Analysis Essay
  • How to Give a Case Analysis Essay
  • Template for Case Analysis Reports Essay
  • Essay about Case Analysis Guide
  • Flextronics Case Analysis Essay
  • Club Med Case Analysis Research Paper
  • Business Case Analysis Essay

Become a StudyMode Member

Sign Up - It's Free