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4 & ½ Men: Red Bull 1
Executive summary
Red Bull GmbH was created by Dietrich Mateschitz and Thai Chaleo Yoovidhy in 1984.
Chaleo was already introduced a energy drink in Thailand called “red gaur” and was targeted for
blue collar workers such as truck drivers and labourers, but when Dietrich went to thailand and
was introduced to Krating Daeng the energy drink and Chaleo, he had the idea to make the brand
global, not only for the blue collar but a trendy, upscale drink that was first introduced in
Austrian ski resorts.
Their current marketing strategy is a global campaign that targets men mostly in extreme
sports, that started with skiing and snowboarding, now go even to sponsor the X Games, sponsor
their own Formula 1 team and NASCAR and create their own competitions and even have their
own soccer teams. In the beginning Red Bull marketing activities were limited to television
commercials that were animated with the slogan “Red Bull gives you wiiings” message that
allowed them to open the market not only in Austria but also 25 markets of Europe, South Africa
and New Zealand to over 200 million units with their launch of the new silver and blue container
250mL (8.3 oz.), compared their 1.1 million units the year before.
Their price varies according to its market between $1.99 and $3.00, the company differs
the container according to the area and maintaining the price between a reasonable margin that is
still considered a premium drink. All their revenue comes from the energy drink, and have
multiple advertising campaigns that put them as the leader in the market share of energy drinks.
Red Bull is a very strong brand known worldwide, it does have multiple competitors each time
being more aggressive and the market continues to grow being that their biggest challenge, they
are similarly priced and have most of the same ingredients. They choose to not only target a
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4 & ½ Men: Red Bull 2
certain market segment, but branch out with their campaign “Revitalizes body and mind”
through multiple sponsors to events that have a unique abilities outside of the extreme sports
market and young consumers, such as chess and professional video game players. Their creative
and unique advertisement allows them to be the the leading Energy drink of the world and one of
the most successful new beverages in history.
Interviews with people who consume Red Bull in varying consumption levels, as a group
found very similar responses to why they choose Red Bull over their competitors, and that is
because with Red Bull, the sky is the limit.
Overview of the Brand
Dietrich Mateschitz, a former marketing manager for Procter and Gamble, founded Red
Bull in 1985. He got the idea of the drink while doing business in Asia. Mateschitz observed the
massive popularity of energy drinks in this market and understood the potential for a similar
product in western markets. One energy drink that he had an interest for was “Krating Daeng” or
Red Water Buffalo in Thailand. Dietrich negotiated with the Thai beverage manufacturer TC
Pharmaceuticals for the rights to license the recipe. They agreed on a deal that allow TC
Pharmaceuticals 51% stake in Red Bull (Richey, 2004, pg. 2). In 1987, Mateschitz launched Red
Bull in his native country of Austria where it was exclusive for five years.. With an effective
marketing strategy and nontraditional thinking, he was able to reach two billion cans sold in 120
countries by 2004 (Richey, 2004, pg.1).
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4 & ½ Men: Red Bull 3
Current Marketing Strategy
Red Bull has established itself as the leading energy drink in the market using an
extremely well crafted marketing strategy that has found a way to relate the drink to extreme
sports, an active lifestyle, a younger generation and a party culture. It’s almost impossible to see
the Red Bull logo and not automatically associate it with some form of extreme sport or event
you would want to attend. Red Bull utilizes a unique and effective strategy known as “buzz
marketing.” This means that they throw huge, entertaining, and creative events that consumers
in turn flock too. Therefore they don’t have to bring the product to the consumers, instead the
consumers come to them. This may sound like a difficult strategy but it’s easy to believe
considering that “Red Bull supports close to 500 worldclass extreme sports athletes that
compete in spectacular and often recordbreaking events across the globe” (Gschwandter 1)
A few of the events Red Bull has thrown to promote their product are rail sliding in
Queenstown, New Zealand, air acrobatics in Austria, Mountainbike freeride competition in Utah,
motocross freestyle in Madrid, Spain, the ParisDaker Rally in Senegal Africa, the classic Red
Bull Flugtag which takes place all around the world and they even host a Red Bull music
academy in Berlin, Germany once a year. (Gschwandter 7) The most recent event that Red Bull
has promoted is Red Bull: Can You Make It. On Red Bull’s website this event is described as
“165 student teams from 50+ countries across the globe will have seven days to travel across
Europe using only cans of Red Bull as currency. It’s a journey of adventure, charm and strategy
that leaves one question: Can You Make It?” (Red Bull) By associating their product with these
extreme events, the customers begin to associate themselves with the same level of risk and
adventure when they consume the product.. This marketing strategy is known as “self concept”
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4 & ½ Men: Red Bull 4
and Red Bull uses it very well. In addition to their extreme sports, buzz marketing aspect, Red
Bull T.V. commercials are extremely recognizable due to the effective level of humor they
implement in the advertisement. Although they are straying away from their famous cartoon
commercials, many people still remember how entertaining they use to be. Red Bull is the
industry leader in terms of energy drinks and will continue to be so if they keep up their high
level of current marketing.
Causerelated Marketing
The mutual beneficial collaboration between Red Bull and a non profit would be with
Wings for Life, a nonforprofit spinal cord research foundation. Their mission is to “find the
cure to spinal cord injury, by funding world class scientific research and clinical trials around the
globe aimed at healing the injured spinal cord” (WFL, 2016). Wings for life is built by 12
countries, 247 scientific reviewers and the research has been funded for 11 years. The majority
of their research is funded by the private sector, but is dependent on the donations of individuals
and companies. Using 100% of their donations for research. The administrative costs are covered
by the Red Bull.
Red bull announced that they would partner with Wings for Life in 2012, as special
sponsor for the fundraiser Faces for Charity Actions in cooperation with Formula 1 team Red
Bull racing, reaching 1 million euros in donations, after that the organization started to lead
larger campaigns to generate the need for research donations. Since 2014 Red Bull has founded
and created the annually held race Wings for Life World Run, that consists on 35 routes in 33
countries around the world at the same time, raising more than 3 million euros in donations per
race.
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4 & ½ Men: Red Bull 6
from the exhausted mother & overworked garbageman to trained professional athletes & smart
doctors.
Example of Average Consumer Ages 25 to 45 years old
Robert, the working class business man, has trouble remaining awake, receptive, and
focused at his law office. Balancing a job and a family is tiring for an average 30‐45 year old.
Robert very occasionally invests some of his $35,000 to $100,000 annual income in ways to
keep him awake at work. Coffee doesn’t seem to be doing it; especially through the 10 mile bike
rides, kids soccer games, and boxing classes he participates in after he leaves the office. Robert
strives for perfection. He’s not going to be one of those disorganized, frazzle‐minded slackers
that lounge around the office. Robert is looking for a health conscious way to accomplish his
busy schedule on a daily basis.
Example of Average Consumer Ages 16 to 29 years old
Spencer, the working college student, is struggles staying alert while spending countless
hours studying for a huge test coming up in the next few weeks. Balancing a job as a marketing
intern making $5,000 $20,000 and a pursuing undergraduate degree in marketing. Soda and
coffee won’t keep him retaining all that information, or keep him going after skateboarding at the
beach. He has a lot of struggles at home, studies hard academically, and works hard to make tips.
He seeks a drink that can give him a boost to get through his day to day struggles, and help his
mind stay alert for those long days.
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Target Market/Consumer
Demographics Psychographics Usage Behavior Consumption
collection
Occupation
Ages 16‐29
(more males than
females)
Content
Student
Image Conscious
Youth trends
Active sports
Studying
Physically Active Student
Blue‐collar work
Athlete
Ages 25‐45
(more males than
females)
Influenced
Working
Lifestyles
Benefits
Spending power
Working hard
staying alert
Eat Out
By lunch/snacks
Executive
Business
Average
4 P’s
Product
Mateschitz was offering the first form of energy drink in Western Europe. His first step
of designing the product was to adapt the taste to the tastes of Europeans. Therefore, Red Bull is
more diluted, less caffeinated, and has more carbonation than its Asian predecessor (Richey,
2004, pg. 2). Red Bull started with only one SKU, the signature 8.3oz can that everyone knows
today. This drink was designed for multiple never before seen and unique reasons. The purpose
of Red Bull is to improve physical endurance, stimulate metabolism, improve the “feeling” of
wellbeing, increase reaction speed/focus, and mental alertness (Richey, 2004, pg. 3). Within this
drink is energyenhancing chemicals of caffeine, taurine, and glucuronolactone. Surprisingly,
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4 & ½ Men: Red Bull 8
Red Bull only contains 80mg of caffeine, which is about the same amount of a weak cup of
coffee, and less than a small sized Starbucks drink (Richey, 2004, pg. 2). Finally, the marketing
team tested more than 200 different packaging concepts before the initial launch.
Positioning
One of Red Bull’s major marketing slogans is “Revitalizes body and mind.” This product
was intended from the start to be consumed whenever users needed a lift. With that being said,
the early adopters were in fact the dancers, clubbers, and ravers of Austria’s nightlife. Red Bull’s
marketing team was extremely clever in their strategy for the initial launch. Their team went to
all of the most popular bars and clubs of Austria and just left empty cans of Red Bull throughout
these places (Richey, 2004, pg. 5). This gave the consumer a perception that this product was
popular. This tactic generated a significant buzz and positive word of mouth, which would prove
invaluable to their efforts when it came time for international expansion. However, there was one
drawback to this choice of location for Red Bull’s launch. In the early years, Red Bull was
perceived as just a mixer for alcoholic drinks, and their marketing team had to work hard to fight
this stigma (Richey, 2004, pg. 6). Today, Red Bull is enjoyed by those who live an active
lifestyle.
Price
From the beginning, Mateschitz wanted to compete in the premium price range. Red Bull
is always set at a price that is at least 10% greater than the most expensive competitor (Richey,
2004, pg. 4). This was done for two different reasons. The first being that he thought consumers
would be less likely to trust Red Bull’s energyenhancing benefits if it was priced at the same
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4 & ½ Men: Red Bull 9
level of a typical soft drink. Secondly, Mateschitz wanted his product to have the reputation of
“Best of class” when it came time for competition to enter the energy drink market (Richey,
2004, pg. 4).
Promotion
Red Bull’s effective promotion strategy was one of precision. It was a carefully planned
process that was mapped out for years in advance. As a marketing manager, Mateschitz
understood that the best promotion was “word of mouth.” As previously stated, the early
adopters of this product were the youth of Austrian club scene. These young people were the
perfect demographic to carry out this strategy. What was at first a concern, turned out to be one
of Red Bull’s greatest tools of promotion. When the company first launched its product, the
Austrian government didn’t know what type of food to classify it as which meant that it couldn’t
be exported. This meant that Red Bull was exclusive to Austria for five years before being sold
in other countries. Party goers of neighboring countries such as Germany and Hungary, would
travel to Austria to try this drink after hearing about it through positive word of mouth (Richey,
2004, pg. 5). The product was so popular that it was being bootlegged across borders, which only
increased the mystique and buzz surrounding Red Bull. They had a high demand in other
countries before it was even legal to sell it there.
Sampling
As Red Bull finally entered foreign markets, and started to have a stronger brand
awareness, they began multiple different promotion strategies. The first is sampling. As the
marketing manager for Red Bull, Norbert Kraihamer explained in a interview with Claire
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4 & ½ Men: Red Bull 10
Phoenix , “We have to make sure that people experience the product the right way at the right
moment and in the right situation when they have met with particular fatigue or in need of food”
(Richey, 2004, pg. 8). With this idea, Red Bull sent sampling teams to the desired locations to
ensure the consumer was living this experience. The sampling teams usually consisted of college
age students who were enthusiastic and fun. These types of people made for a believable source
to the desired target market. Today, these are the attractive people driving around in the
distinctive Red Bull cars who patrol around high schools, college campuses, parties, bars,
nightclubs, and major events.
Event Marketing
Currently, Red Bull has two major sponsored events. The Red Bull Soapbox Race and
Red Bull Flugtag or “Day of flight.” These events are designed to emulate the lifestyle that the
company endorses. The Flugtag is an event where teams are required to design a plane that
would be ran off a ramp and to land in a body of water after flight. Bringing the slogan “Red
Bull gives you wiiings” to a more realistic meaning.
Sports Marketing
Red Bull has a significant and growing foothold in the sports world. Believing that sports
is area in which its target market has high interest; Red Bull has purchased the naming rights to
two professional soccer teams. The first team to be purchased is RB Leipzig of the German
Bundesliga. More recently and more prominent to Americans, the company has purchased the
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4 & ½ Men: Red Bull 11
New York Red Bulls of the MLS. This naming right was purchased in 2006 for a total of $100
million (Richey, 2004, pg. 10).
Place
Red Bull’s primary pointof purchase tool is the branded refrigerated sales units that can
be found in countless convenience stores, bars, clubs, sports shops, cafeterias, and commissaries.
This small refrigerator displays the Red Bull logo well and differentiates itself from the
competitors. The biggest benefit that this design has it that it ensures Red Bull a prominent area
in the retail sector (Richey, 2004, pg. 11).
Social Media
Red Bull is one of the most popular energy drinks and By Red Bull utilizing social media they
have not only gained a following but they have been able to save millions of dollars in marketing. Red
Bull’s comprehensive marketing strategy has provided the company with over 35 million followers across
all of their social channels. Red Bull does social media well because they understand their consumers and
what the consumer seeks from the brand; while maintaining the perfect balance between entertaining,
informative and bold.
Red Bull is active on every social platform including: Instagram, Twitter, Snapchat, Facebook,
and Google+.
● Instagram: (4.6 million followers)
● Facebook: (Over 45 million likes)
● Google+: (4.99 million followers and 116 million views)
● Twitter: (2.1 million followers)
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4 & ½ Men: Red Bull 13
Strategic Evaluation
Strengths
Red Bull without question has multiple strengths. The first has to be the fact that it’s a
category leader. As mentioned earlier, it was the pioneer of the energy drink segment in Western
markets. Over time, the company has established a strong and consistent brand image. The brand
is independent, edgy and recognizable globally (Passport, 2016). Red Bull is synonymous with
energy drinks. Another one of Red Bull’s strengths has to be its geographical presence. With the
broaden reach of the company that is unmatched by its competitors. With this geographical
advantage, Red Bull can ensure longterm growth even if certain markets reach maturity
(Passport, 2016).
Weaknesses
Even with all the success of the Red Bull energy drink, there is still some alarming
weaknesses to this company. The first being the over dependence on the energy drink market.
Red Bull is not diversified, and if anything was to happen to this market would cripple the
company’s integrity. This dependence leaves Red Bull vulnerable to the possibility of restrictive
government legislation or even a major loss of demand for the energy drink market (Passport,
2016). Also, the partnership with TC Pharmaceutical has negatively impacted the entry into the
Asian markets (Passport, 2016). As Mateschitz introduced Red Bull in Austria with his effective
marketing strategy, TC started selling the product in Asian markets with their own strategy. This
has created a problem years down the line when Mateschitz turned Red Bull’s eyes to the Asian
markets.
Opportunities
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4 & ½ Men: Red Bull 14
There are a few areas that provides lucrative opportunities for Red Bull. The first is to
focus on emerging markets. These represent new areas for the company to reach consumers for
expansion. The company should continue to implement accelerated promotional campaigns and
sponsorships that are relevant to those regions (Passport, 2016). Finally, in order to reach the
more price conscious consumers of these regions, Red Bull should consider opening new
production facilities in these areas which would lower the cost of production. Currently, all of
the company’s production is done in Austria and is shipped from those facilities (Passport,
2016). More production facilities would only help reach those new consumers in the emerging
markets.
Threats
There are a few developing threats that Red Bull cannot ignore. The first is emerging
competition in the mature markets and are trying to take away Red Bull’s market share
(Passport, 2016). These competitors are Monster, Rockstar, and Mt. Dew Kickstarts which are
all sold in the United States. All three of these products are growing in popularity. Especially
Monster, which is using a very similar marketing strategy in the action sports scene. What these
competitors also have in which Red Bull doesn’t, is the variety of flavors. The variety of flavors
has a possibility of taking away brand loyal consumers form Red Bull. Secondly, there is a
legitimate threat of the rising concern over the health issues related to energy drinks. With the
rise of deaths related consumption of energy drinks, there is an increase in concern by both
consumers and governments of the safety of these products (Passport, 2016). Government
regulation of the product category is a legitimate concern for all competitors in the energy drink
market.
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4 & ½ Men: Red Bull 15
Unique Selling Propositions
Red Bull's unique selling propositions is that they are the most creative and unique
energy drink that has the major market share due to its ability to break down barriers from
different segments and it is a worldwide brad. Furthermore, they were market innovators that
brought energy drinks to the worldwide market and it has a constant contact with its consumers
and population as a whole, advertising in the traditional methods or in a non conventional way
such as the Red Bull Stratos event where a human spaced dived to earth, breaking multiple world
records. They also have a reliable product that consumers know that can count on when they
need to stay wake or give their best performance, due to it enhancing your performance, makes
you stay sharp and functional, focused and energetic.
Main Competition
The most popular competitors of Red Bull include Hansen Natural Inc., Rockstar
International, Coca Cola Co., South Beach Beverage Co., PepsiCo, Inc., and National Beverages
Corp. These companies fight for the market share that Red Bull has dominated over the years.
Red Bull’s market share of nonalcoholic beverages is around 2%, but destroys with a 43%
market share for energy Drinks. The competitors are branches off larger brands like Monster,
whereas Red Bull is a private company.
The top three competitors:
Monster—Hansen’s Natural
The average serving size for Monster is 8 ounces, although it comes in a 16 ounce can, as
well as larger sizes. Per serving, Monster contains 100 calories, 27 grams of sugar and 80mg of
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4 & ½ Men: Red Bull 16
caffeine. Monsters strengths include their product size (twice the size of Red Bull), sponsorships
with teams, athletes, and even bands, and have a lot of promotional items like tshirts, BMX
bikes, and more. Weaknesses include ingredients not evaluated by FDA, less of market share,
and that they were founded on juices which leads to neglect in terms of marketing
Rockstar International Pepsi Co
The average serving size of Rockstar is 8 ounces. The standard size of a Rockstar can is
16 ounces which is double the size of Red Bull. Per serving, Rockstar contains 140 calories, 31
grams of sugar and 80mg of caffeine which is higher than Red Bull. Rockstar International’s
strengthens include cast flavor options, sponsorships athletes, bands, sports and has its own
models for publicity, and that it belongs to a company that trades on New York Stock Exchange.
Rockstar’s weaknesses start with being recently bought out by Pepsi Co, which can cause
marketing neglect and contains the highest level of additional ingredients.
Amp—Pepsi Co and Sobe
The serving size of Amp is 8 ounces. The standard size of an Amp can is 16 ounces. Per
serving, Amp contains 110 calories, 28
grams of sugar and 71mg of caffeine. Amp
contains the same flavor base formula as
Mountain Dew, which is a popular drink in
itself. This can pull loyal consumers who are
seeking the beverage for a different
purpose, to stay awake and get loads of
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4 & ½ Men: Red Bull 17
caffeine. Amp sponsors many popular unique sports such as MMA, athletes not as popular and
events for publicity. Amp is twice the size of a Red Bull (16oz) but is the same price. Amp’s
weaknesses include the low percentage of the market share, being owned by a larger corporation,
and is as cheap as Red Bull but offers twice the drink (16 oz).
Interview I Summary and Analysis
Interview One:
Interviewee I: Brian Danis
Email: briandanis93@gmail.com
Phone Number: (925) 6404600
Demographics/Psychographics:
Brian Danis is a 20 year old male who is from Danville, California. He is a college
student studying Engineering with an emphasis in Finance. He joined Pike his sophomore year
and is an active athlete. He enjoys going to the gym daily to workout, rides his bike around to
class each day, and works as a valet at a local hotel. He tends to consume fast food like Taco Bell
and Five Guys, buys his groceries at Trader Joe's, and is extremely loyal to Red Bull. He loves
Red Bull and claims to have at least 34 on average a week. He was a contestant on Red Bull’s
most recently marketing strategy, Red Bull: Can You Make It, and traveled to Europe trading
Red Bull as currency. His income is approximately $10,000 a year, and lives mostly off his
parents.
Questions:
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4 & ½ Men: Red Bull 18
Need recognition: What led you to realize that you needed or wanted to buy an energy
drink?
I am a college student, here at Cal Poly: San Luis Obispo, and spend hours studying for tests. I
am a business major with an emphasis in finance. I spend on average 10 to 12 hours a week in
the library.
What makes you chose Red Bull?
I really like the taste, it’s weird I know because not many people like it but it keeps me awake
and doesn’t taste bad. I tend to drink 34 Red Bull’s a week because I have to balance school,
work, and friends.
Information search: How many alternatives did you consider?
I have a few alternatives: Rockstar, AMP’d, Monsters, Starbucks, and 5 hour energies.
Sometimes I choose Rockstar if I have too, but will always go with Red Bull if I can. I honestly
like Red Bull Sugar Free.
Evaluation of alternatives: How favorable was your evaluation of these alternatives? What
product attributes were important to you, and how favorably did you perceive these
different alternatives to perform on those attributes?
Personally, Rockstar is the best alternative because it does its job and taste decent. I do not like
the taste of coffee, it is way to bitter. I look for low sugar because I know sugar isn’t good for
you, and I look for what tastes good, and will keep me awake on those long nights.
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4 & ½ Men: Red Bull 21
Brain Danis is the interview that is very brand loyal to Red Bull, and participated in the
Red Bull: Can You Make It challenges in Europe. Brian and a group of friends traveled to
Europe with Red Bull as their only currency. He really loves Red Bull and says he uses it every
week for school. Brian Danis is brand loyal, and only choses Red Bull. He has shirts and posters
all over his room. He uses word of mouth and promotes Red Bull around Cal Poly, Europe, and
his biking team. He is willing to pay higher for each Red Bull, and said he would be willing to
spend $5.00 on a Red Bull. He has low product involvement because Red Bull is cheap, cheaper
in Europe, and one can go buy another Red Bull. Brian Danis is very loyal consumer.
Interview II Summary and Analysis
Interviewee II: Samuel Shepard Hibbs
Email: 8649Hibbs@gmail.com
Phone Number: (916) 2237153
Demographics/Psychographics: Sam is a 22 year old male, born and raised in Sacramento,
California and is currently attending San Diego State University in his fourth year. Sam is
majoring in political science and is planning on attending law school after he graduates. He
joined a fraternity in college and loves to party, socialize, and do fraternal activities. The most
important aspect of Sam’s life is playing and watching sports. He is a diehard Sacramento
Kings basketball fan and he also loves to follow the NFL. Sam lives a very active lifestyle,
frequently playing basketball, occasionally working out, and slams beer religiously. Because
Sam balances being a full time student and a fulltime intern at the law firm of Bremer and
White, he doesn't have very much time in the day to do everything he wants and frequently finds
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4 & ½ Men: Red Bull 28
Solomon, Michael R. Consumer Behavior: Buying, Having, and Being. 11th ed. N.p.: Pearson,
2014. Print.
"Red Bull Can You Make It?" Red Bull Can You Make It? N.p., n.d. Web. 03 May 2016.
<https://www.redbullcanyoumakeit.com/>
Richey, K., Michaels, J., & Keller, K. (2004). Red Bull Building Brand Equity in
NonTraditional Ways Case Study, 126. Location: Publisher.
Kinigadner, H. (2011, April 01). Wings for Life Mission Statement Stiftung für
Rückenmarksforschung. Retrieved May 03, 2016, from http://www.wingsforlife.com/
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