P07. Red Bull Marketing Strategy

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  • 1. RED BULL: BUILDING BRAND EQUITY Presented By: P07. Ashish Mathew Areekattel Dr. V. N. BRIMS
  • 2. MARKETING ACTIVITY “We do not market the product to the consumer, we let the consumer discover the product first and then the brand with all its image components.” Red Bull engaged in marketing activities: • Television • Print & radio advertising • Event marketing in sports • Sampling • Point of purchase promotion
  • 3. ADVERTISING • Dietrich Mateschitz created Red Bull “Adult cartoon” Advertising with an Intelligent dialogue about product benefits. • Animated ad examples: Dracula, Adam & Eve, Frankenstein, Devil, etc. • It targeted anyone with a sense of humour to establish a wide consumer base.
  • 4. SAMPLING • The sampling Campaigns were conducted at places like – Concerts – Parties – Festivals – Sporting events – Beach – Highway rest places – Campus libraries. • Red Bull student Brand managers – Research on drinking trends – Designed marketing initiatives – Wrote stories for student newspapers
  • 5. EVENT MARKETING • Red bull controlled all aspects including name, logo, promotion and media production • Classic Events: – ‘Red Bull Soapbox Race’ – ‘Red Bull Flugtag’ which was a comical event in which participants constructed a flying object and attempted to launch it off. The winner of the event received free lessons for a pilot’s license. • Sporting Events: – Red Bull Snow thrill extreme skiing competitions in France & Alaska – Red Bull Cliff Diving world tour event in Hawaii. • It reinforced the brands positioning as an independent, stimulating beverage.
  • 6. SPORTS MARKETING • It also sponsored Action sports such surfing, snowboarding, skydiving, skateboarding, rock climbing, mountain biking, etc. • Red Bull wanted to project in its brand personality: innovative, individual, non-conformist, unpredictable and humorous. • In Nov 2004, it acquired its own Formula 1 creating Red Bull Racing. It expanded its racing participation by sponsoring the “Red Bull junior Team” and the “Red Bull Driver search.” • In 2006, Red Bull started a two car NASCAR Team in which one of the cars would bear the number 83 representing the 8.3 ounces in each can of Red Bull.
  • 7. POINT-OF-PURCHASE MARKETING • Its primary tool was the branded refrigerated sales units. It placed miniature glass refrigerators which displayed the Red Bull logo, in convenience stores, bars, clubs, sports shops, office buildings, cafeterias and commissaries. • It also used highly visible aluminium window sticker to indicate availability, believing the can itself to be the best promotional tool.
  • 8. EUROPEN EXPANSION • The European Union’s (EU) policy for approved food products dictated that if a food was approved in one EU country, it could be sold in all EU countries. • Most countries had a list of allowable food ingredients and taurine was not on any of the lists. • Fortunately Scotland had a negative list and Red Bull ingredients were not on the list which gave an entry point. • First EU test market was setup in UK and rapidly entered all the rest of EU market, however French market banned the product which is not proven 100% safe.
  • 9. MARKETING STEPS in UK • Red Bull entered in 1995 and altered the marketing formula in 3 significant ways: – The company marketed Red Bull as a sports drink, not a stimulation drink. – It did not pursue a word of mouth strategy, choosing instead to sell via the largest beverage channels. – It created new advertising and focussed on billboards rather than electronic media. • They used the slogan "Never underestimate what Red Bull can do for you” which did not clarify Red Bull’s positioning. • Between 1997 and 2001, share of sports and energy drink market rose from under 2% - 48% • Red Bull went from selling 3.2 million cans per year in 1995 to more than 290 million in 2000 and claimed 86% share of functional energy drink market in 2001. • Red Bull was 3rd biggest product by value in the soft drinks market, behind Coca- Cola and Pepsi.
  • 10. COMPETITION • Red Bull began exponential sales growth internationally and faced a lot of competition – Virgin: Virgin dt – Anheusher-Busch: 180 – Coca-Cola: Burn – Pepsi-Cola: SoBe Adrenaline Rush and Mountain Dew Amp – Other Brands: Indigo, Hype, Bawla, XTC and Magic. • Between 1995 and 2000 in UK, the beverage consultancy Zenith International Reported more than 40 product launched in functional energy category that resembled Red Bull: small, thin metal cans, metallic hues and animal imagery. • But Red Bull dominated the functional energy drinks market with 72 % share in 1999. • Competitors used similar marketing tactics to Red Bull’s – Coca-Cola used word-of-mouth strategy – PepsiCo’s Mountain Dew Amp used Sponsorship and Sampling strategy – PepsiCo’s SoBe Adrenaline Rush pursued grass-roots strategy • Sampling teams • Point-of-purchase materials • Sponsored SoBe Team Lizard athletes • Distribution concentrated on Bars, Convenience stores & restaurants – Red Devil Sponsored Asprilla motorbike team – Virgin dt sponsored Radio One Love Parade dance festival • Other brands used SEX appeal – Red devil brand claimed its product would “make you horny” – Go-Go Passion Brand marketed itself as ”Viagra for Girls” – SoBe Adrenaline Rush used tagline”Get it up. Keep it up. Any Questions?”
  • 11. RED BULL IN US • In 1997 Red Bull entered US; the company used “Cell approach” and divided the country into targeted geographic segments rather than nationwide launch. • The brand’s first test market was Santa Cruz, California, beachside town known for its active lifestyle built around surfing and skateboarding. Then it moved to San Francisco, then to Venice beach near Los Angeles and then Hollywood. • It initially targeted high-end nightclubs, bars, exclusive health clubs and gyms. • It gradually increased distribution and recruited student brand managers to organise on-campus promotions – Renting out study rooms during finals week – Stocking with free cans of Red Bull and school supplies
  • 12. EFFECTIVE USE OF MEDIA • Red Bull spent less than $20 million on media, developing two animated cartoons each year. • In addition to the sporting events, Red Bull introduced "Red Bull Rock ‘n‘ Air festival” and “Red Bull Music Academy” brought together two weeks of collaboration, learning and performance in 2000 • In 2001, Red bull was the number one seller in Store24 convenience stores, bigger than any single beer, milk, water or soda brand and had a market share of 70 %.
  • 13. MY PRESENCE IN SOCIAL NETWORKS • https://www.facebook.com/ashish.mathew.39 50 • https://twitter.com/ashishmathewin • http://www.linkedin.com/profile/view?id=106 250582&trk=nav_responsive_tab_profile • http://www.slideshare.net/ashishmathew395 0 • https://plus.google.com/u/0/1103711012919 01261600/about