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Red Bull Market

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Interesante artículo de la Revista Contagius acerca de Red Bull.

Interesante artículo de la Revista Contagius acerca de Red Bull.


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  • 1. case study / red bull / A BULL MARKET
  • 2. 44 / 45CASE STUDY / RED BULL / A BULL MARKET /RED BULL DEFIES GRAVITY ANDCONVENTION. ONCE THE PRESERVE OFTIRED THAI TRUCK DRIVERS, THE BRANDSHIFTED NEARLY TWO BILLION CANS LASTYEAR AND DOMINATES EVERY NATIONALMARKET IN WHICH IT IS PRESENT. ITSGRASSROOTS MARKETING AND SAMPLINGSTRATEGY HAS SPAWNED A LEGION OFADMIRERS, FROM HIP CLUBSTERS TOJADED CUBICLE-DWELLERS. ITS CAPACITYTO MAKE FRIENDS ALONG THE ENTIRESPORTING SPECTRUM, VIA CRICKETERSAND GOLFERS TO AEROBATIC PILOTS ANDPEOPLE WHO THROW THEMSELVES OFFMOUNTAINS FOR FUN HAS TURNED THEBLUE AND SILVER CAN INTO A SYMBOL FORA WAY OF LIFE / SUZY BASHFORD UNCOVERS THE STORYBEHIND AN ICONIC DRINK THAT SELLS ON FUNCTION RATHER THAN TASTE /
  • 3. case study / red bull / Revolutionary. Multi-faceted. Anti-brand. Non- cricketers said when they got home after that,’ smiles conformist. These are all terms that have been used to Kastner. describe Red Bulls marketing approach. But ask the Red Bull boasts at least 70% of every national market man who came up with the now ubiquitous ‘Red Bull in which it is present and is still growing rapidly. Last gives you wiiings’ slogan to shed some light on this year company sales rose by 32.3% from 1.261 billion hugely successful brand strategy, and you realise it is Euros to 1.668 billion Euros. Sales were up 50% in the actually overwhelmingly simple. USA, 43% in the Middle East, 40% in Australia and ‘Red Bull is all about making friends. Not buying people. 30% in Eastern Europe. Also in 2004, the company Because Red Bull became a friend, a real personality, established new subsidiaries in Canada, Turkey, Russia people feel emotional towards it. They do things for us and Romania. that they wouldnt do for Coca-Cola,’ says Johannes Red Bulls appeal has grown by targeting opinion Kastner, founder of international advertising network formers, who drive sales through word of mouth and by Kastner & Partners. The agency has been working on association. Extreme sportsmen. Hollywood stuntmen. the account since 1984, three years before the brands Barmen at the trendiest haunts. Formula 1 drivers. Now, official launch, and has been integral to its product even golfers. This seeding strategy has made Red Bull design and development. the clear global energy drink market leader, selling This is hardly the answer you would expect for a brand 1.935 billion cans in 2004. with such an edgy image, steeped in urban legend and What these key audiences say is infinitely more living life at the limits. The strategy is so simple that it important to Red Bull than what the media says. could even be mistaken for a playground guide on how Compared to many other brands in the lifestyle sector, to get down with the ‘in’ crowd. In fact, the way that Red Bull certainly doesnt bend over backwards to woo Kastner describes the approach is startlingly similar to and accommodate reporters writing about the company, the definition of a good friend given on charity yet it still manages to garner significant media coverage Kidscapes website: ‘Good friends show an interest in for its exploits. what people do; go around with a pleasant expression At Red Bull events, journalists tend to come away with on their face; ask to join in, dont demand; offer to help the impression that the PR teams attention is clearly on others with work or carry things; invite people to do the participants for whom the event is being thrown, something; hang around places where other people rather than the peripheral media types. To Red Bull, the they make friends with are; are good at thinking of participants are the real opinion-formers. After all, as interesting things to do; are willing to share; are Red Bull knows, showing off is no way to make friends humourous; and are good at organising games or and influence people. activities. (www.kidscape.org.uk/childrenteens/makingfriends/1m ‘To advertise oneself is not good. We dont say “come akingfriends.shtml) and look at how wonderful we are everybody”. That would not be laid back. That would be aggressive, old- Whether Red Bull is building a start-gate to allow an style marketing. Its always better to let others say how up and coming snowboarder to improve his race great we are’, states Kastner. technique, throwing parties with free drinks so that clubbers can dance all night or helping students stay He adds that Red Bull doesnt even promote one of its awake while revising, these rules of the playground are most defining and famous worldwide events in a way applied scrupulously. that garners positive coverage for the brand: the Flugtag. Participants make wings and attempt to fly in ‘We have a lot of respect. We dont push people to do their homemade contraptions, a sight witnessed by anything. We give them ideas. We give them a product. thousands of spectators, sometimes more than 50,000. They can do want they want. In TV clips we never ask According to Kastner, the Flugtag is only advertised in a them to say things or give them logos. Were there to way that helps people who have created the machines help them. Were there to give them experiences they be seen. At Flugtag time, Red Bull replaces its normal cant buy. Its humanistic thinking,’ says Kastner. above the line ads with pictures or footage of previous An example of one such experience came after the competition participants. These may catch people English cricket team famously won The Ashes this drinking Red Bull or wearing a Red Bull helmet, for summer. Red Bull flew the team members and their wives example, but the branding is incidental to the main in one of its Flying Bulls, a Douglas DC-6, to Venice for a message that focuses on encouraging performers to week. Even before this gesture, Andrew Flintoff and Kevin take part. Pietersen happily told the broadcast media how they drank Kastner argues that such a strong bond has been Red Bull before a game. ‘You can imagine what the
  • 4. 46 / 47 ©Karoly ArvaiRACE WORLD SERIES / THE FLYING BULLS AEROBATICS TEAM 2005 / FLUGTAG / BRATISLAVA 2005 / ©Christian Pondella FLUGTAG / MIAMI 2004 / “Because Red Bull became a friend, a real personaliy, people fel emotional towards i. They do things for us that they wouldnt do for Coca-Cola.” ©Mattias Fredriksson ©Berhard Spottel FREESTYLE SKIING / HENRIK WINDSTEDT / FELIX BAUMGARTNER / CHANNEL CROSSING /
  • 5. case study / red bull / created between consumers and Red Bull, that when rid of his jetlag and, recognising its potential as an they walk down the street clutching their can they are energy-giving drink, he spent the next few years refining using it to identify themselves: ‘They want to express the recipe. Today, Mateschitz owns 49% of the something by holding this can. They want to say “I am business, with his Thai partner Chaleo Yoovidhya also like the personality of this can”. They want to say we are retaining 49%. The remaining stake is owned by another professional. We are smart. We are good at sport. We Thai associate, Chalerm Yoovidhya. first kissed a girl when we were twelve. We smoked Mateschitz wanted Kastner to help him with the cigarettes very early. Maybe weve spent a night in marketing strategy. A famously fraught few years prison before because of a big party we had. But we are followed. Not only did the duo struggle to agree on a smart, we dont spend all our time getting drunk.’ slogan, but the product researched appallingly. Nobody In other words, as Lars Emilson, the chief executive of had ever encountered anything like it before. Or tasted the brands can company Rexam said in September anything quite like it. When they did, many hated it. when it delivered its 10 billionth unit to Red Bull: ‘The Many focus group participants thought the tonic tasted can has become a symbol for a way of life’. This symbol sickly sweet like liquid jelly babies or cough medicine. is Red Bulls capital. As Austrian billionaire founder And they thought it was substantially over-priced for its Dietrich Mateschitz has said: ‘we have no real material slim can size. assets, our asset is the brand’. Some were also put off by the strange-sounding Red Bulls slogan itself arose from the friendship chemicals on the ingredients list, like taurine and between Mateschitz and Kastner. This partnership too glucuronolactone. The rumour mill went ballistic. Was it has been fundamental to the brands strong personality, bad for children? Or an aphrodisiac? Or the equivalent says Kastner: ‘Wed both lived the 70s, with The Stones of 14 espressos? Was it really made of bulls testicles? and Spencer Davis and so on and we thought differently But Mateschitz was convinced that if people [to other marketers]. Advertising was always telling understood the products functional benefits - that it people things like “Your laundry is not white enough”. ‘vitalises body and mind’ - they would buy it. He also We always thought that was stupid. We thought saw the merit in leveraging all the myths around the differently. Finally with Red Bull we were able to execute brand to his advantage. our thinking. We were two entrepreneurs. We didnt ‘The rumours and confusion add to the brand. These take ourselves too seriously. We werent pushy. We myths and word of mouth add up to something quite were laid back. The brand is very personal. Were both close to a magical potion,’ explains Carsten Beers, in it. Thats why its so authentic.’ international account supervisor at Kastner & Partners. The pair met while studying at the World Trade The brand is still boosted by the air of mystique that Institute in Vienna and Mateschitz turned to Kastner hangs over it today, aided by Frances ongoing ban of when planning the launch of Red Bull. Born in 1945, the product on the grounds that it is ‘harmful’. ‘This is Mateschitz grew up in the Mürz valley, Styria, just the French protecting their own market and they surrounded by a family of teachers. He, however, didnt need an excuse, so they say they need more research thrive academically at school. According to Trend, an on taurine, a harmless acid. But it helps the rumour. Red Austrian magazine which crowned Mateschitz its Man Bull gets smuggled into France from Switzerland and of the Year in 2000: ‘At age 18, Mateschitz headed to Belgium’, says Beers. Vienna and spent the next 10 years happily bumming around as a student. The essentials were sent from Undeterred, Mateschitz launched Red Bull in Austria in home and he earned the luxuries himself: as a travel 1987. Problem was, at that time there was very little guide, as a barman in Switzerland, as a steel-worker in marketing budget because all the investment had gone Sweden.’ into production, research and gaining government approval for the product from the health ministry. And The magazine afforded Mateschitz this accolade Mateschitz does not believe in borrowing money, because ‘hes a marketing wizard. He has taken a preferring to run his company via cashflow rather than product which is nothing special and made an debt. Red Bull was forced into a grassroots strategy, international success of it, through sheer strength of which has since become its trademark. brand image and clever marketing’. This approach is often credited as the main reason the At 28, Mateschitz got a job in marketing at Unilever brand succeeded in creating the energy drinks market. where he was responsible for Omo, Sunlight and Lux. It But The Henley Centres Tamar Kasriel, head of was through his travels marketing toothpaste for knowledge venturing, believes its fortune can be Blendax in 1982 that he came across a tonic that Thai attributed to more than just clever marketing: ‘Red Bull drivers used to stay alert at the wheel. He drank it to get
  • 6. 48 / 49 ©Jürgen Skarwan ©ulrichgrill.com HANGAR-7 / SALZBURG, AUSTRIA 2005 /HANGAR-7 / SALZBURG, AUSTRIA / AIR RACE WORLD SERIES / NETHERLANDS 2005 / ©Markus Leodolter CLIFF DIVING / AUSTRIA 2005 / "We have no real material assets, ©Szolt Szigetvary our asset is the brand.” / Dietrich Mateschiz BUDAPEST 2005 / ©Jürgen Skarwan ©Karoly Arvai “TOGETHER” / GUNTHER EICHER / AUSTRIA 2002 / MOUNTAINBIKE FREERIDE /
  • 7. case study / red bull / has been very smart or very lucky, or both. Some of its present in over 100 countries. success is down to its first mover advantage and some Thats not to say it does not do traditional marketing. is because of the revolutionary, subversive edge given to Red Bull executes a highly conservative, ‘problem and it by its early, grassroots marketing. Through both, it now solution Procter and Gamble style’, above the line takes the lead on fuelling peoples ability to have fun.’ strategy, says Kastner. But the brands playful cartoon Many blatant copycat rivals have crashed and burned ads, which air globally, are more of an amusing aside to in Red Bulls wake. The aptly named Burn, owned by complement the core events and sponsorship strategy. Coca-Cola, fell flat when it tried to take on Red Bull in As an adjunct theyre often overlooked, which could the UK market in 2000. explain why some pundits applauded Red Bulls ‘stealth’ strategy on entering the US despite the fact it spent Ex-Coca-Cola marketer Phil Roman, now chief $100m on traditional media. executive of agency Meerkat Culture, believes Red Bull still has its stranglehold because no one has come up As it becomes more mainstream, viral marketing is with a better product yet. ‘All of them have dabbled and becoming increasingly important. In the UK for the last struggled and finally failed to say “heres a clear two years, for example, agency Blowfish has been positioning of something thats different and heres tasked to create parties that keep the brand on the right why”’, he says. ‘But Sprite 3G [Cokes latest energy side of cool. ‘Our brief was to do something quirky and drink launch] will be interesting. It tastes good for a interesting and keep Red Bull alive in an underground start.’ way,’ says Chris Pearce, managing partner at Blowfish. But Red Bull has never been about the taste. Launch Targeting ‘movers and shakers in key towns’, Blowfish marketing focused on sampling. The brand had to organised a series of secret parties. The most persuade consumers to drink for a physical benefit, fashionable haunts were targeted with flyers bearing the rather than the taste. It enlisted an army of souped-up headline Please keep on the grass, accompanied by a super samplers, driving cars with giant Red Bull cans blurry image of an armoured vehicle and a URL but no mounted on their roofs. These teams policed the streets Red Bull branding. targeting the tired outside gyms, university campuses ‘Red Bull wanted to do something that was an antidote and offices. to the heavily branded and overt TV advertising targeting Red Bull was one of the first companies to realise the the mainstream. This was about discovering something power of student brand managers. Little encouragement for themselves,’ says Pearce. ‘Personal invites were was needed for students to throw parties other than the distributed and invitees were told by text where to meet.’ free cases of Red Bull, especially when they realised ‘On the night we picked up about 400 people in buses what a potent mix Red Bull and vodka proved. The brand and transported them to the country. Everyone was manager role is an informal one, with students chosen saying “what the hell are we doing?” They thought they for their outgoing personalities. In return, Red Bull gives were being abducted when we took them on a 25 them free drinks, covers the social costs incurred and minute walk along a dirt track’, says Pearce. When they makes a modest contribution towards funding their reached the top of the hill, they looked down into the studies. illuminated valley to see bars, dance floors and the The brand has stuck to this grassroots strategy when armoured truck in the centre. Free Red Bull was launching in new territories. After conquering the everywhere, but no banners or logos. Austrian market, Red Bull launched in Hungary and This is typical of the type of underground marketing Germany in 1992, before entering the UK in 1995 and done by Red Bull around the globe. Pearce admits its California, the first state in the US, in 1998. It is now incredibly difficult to measure the effectiveness of such©Sutton Motorsport Images niche marketing. But as Kastner says, ‘making friends is not about asking what you get out of something’. Red Bulls Music Academy is another case in point. ‘We thought we should be present in music’, says Kastner. ‘But we didnt want to sponsor a big contest. We wanted to help young musicians improve their talents.’ Founded in 1998 and headquartered in different international cities each year, the Academy selects DJs, singers, songwriters and producers to spend two weeks with renowned musicians, to exchange ideas, learn and network. During this time they RED BULL FORMULA 1 / come face to face with their music heroes, from pirate
  • 8. 50 / 51radio station operators to turntablists to ‘sonic theorists’. ‘Red Bull has sponsored so many of these sportsDrummer Bernard Purdie, boogie pioneer Leroy personalities that it has become ubiquitous. ItsBurgess, mixer Bob Power and African jazz artist Hugh everywhere you turn. Whether its snowboarding,Masekela have all been guest lecturers. skateboarding or BMX-ing, the place is saturated with The Music Academy is supported by its more recent people drinking Red Bull. They’ve seeded it beautifully.ventures such as Artsehcro. Spelling orchestra Theyve been particularly good at linking with highbackwards, this initiative brings the DJs turntable into profile, potentially dangerous events that have grabbedthe classical music world. The brand also has what it attention, like speed skiing,’ says Matt Hales, planningcalls its own ‘web radio’. It consists of a library of new director at sports marketing agency Octagon.music, which can be heard while accessing a photo One of Red Bulls most famous athletes is Austrianarchive of Red Bull events. base jumper Felix Baumgartner, who became the first Another fundamental part of Red Bulls strategy to man to fly across the English channel without using antarget opinion formers is extreme sports. As Soft Drinks aircraft in 2003. Instead, he was supported by a pair ofInternational magazines features editor Annette Red Bull branded, carbon fibre wings. On touchdownSessions says: ‘Red Bull has become almost his words could not have more ‘on brand’ had Red Bullsynonymous with speed sports. Its many sponsorships marketers chosen them. ‘It was total freedom,’ he said,have given it a high profile in activities as diverse as echoing Mateshitzs mantra that Red Bull gives peoplemotor racing, bobsleds and aerobatic flying. Its the freedom to do what they want. Baumgartners wordsmarketing strategy, including the sponsorship of such and pictures were then promptly beamed around theaction sports, must be working: the brand hasnt needed globe and seen by over 200 million people (Sellingto change direction in either its formula or packaging. Power magazine, USA, September 2004).There have been no makeovers, no on-pack promotions, More recently, Red Bull has moved into mainstreamno two for the price of ones etc, that are seen elsewhere events and sponsorships. Using the hook of extremeto regenerate and bring new life to brands.’ sports, it launched the Taurus World Stunt Awards to Indeed, the only product change the brand has made honour Hollywood stuntmen and women in front of asince it launched is the introduction of a sugar-free star-studded audience on the Paramount Pictures lot.variant, which has boosted sales. Extreme sports suit As Mateschitz said at this years gala ceremony: ‘Stuntthe brand because they accentuate the product artists are the ultimate extreme athletes, so it seemedbenefits; when athletes are pushed to the limits of their only natural to create an event that would reward theseendurance, whether theyre base jumping, kayaking, free unsung heroes.’skiing, mountain-biking or cliff diving, Red Bull is there Less predictable is Red Bulls move into traditionalto stimulate body and mind. sports like cricket, Formula 1 and particularly golf. Last The bolder the event, the better. Earlier this year Red year it created the Red Bull Final 5 competition on theBull held a ‘Big Wave’ surfing competition in Africa. ‘In European PGA Tour. As players dip in energy levels,the end, the waves werent big enough and the event they are encouraged to drink Red Bull for the final fivewas cancelled, but Red Bull picked up plenty of holes.sympathetic media exposure in local sports journalists However, Giles Morgan, managing director of Hill &and specialist international media,’ says Sessions. Also Knowltons sports marketing and sponsorship division,this year, Red Bull held the first bobsled race, which believes Red Bull is approaching these new markets intook place at Mount Hermon, Israel. a way that wont threaten its heartland youth positioning: Red Bull is particularly fond of aligning itself with new ‘Rather than just slapping a label on an event, theyveand gravity-defying sports. Two years ago it invented the gone down the route of describing the function and‘Air Race’, a World Series competition described as a benefit of whats in the can. They want to show that itscross between aerobatic flying, auto racing and skiing not just beneficial for 17 to 25-year-olds or clubbers.slalom. Pilots execute a series of mandatory high-speed Grannies can drink it. And why wouldnt they?’manoeuvres, withstanding G-forces up to 10 times their Red Bulls move into Formula 1 motor racing is as farbody weight. from logo slapping as is possible. By buying the old The brand is also keen to back promising athletes, Jaguar team at the end of 2004, the brand is reallyrather than the big names. It will often ask sports putting its neck on the line; after all, it wouldnt lookchampions who they believe to be the next generation of good if a product that claims to enhance performancewinners, the idea being that Red Bull will help them trailed at the end of the grid, would it?reach their potential. In total, Red Bull sponsors around Hales believes its too soon to judge how successful300 athletes. this sponsorship will be. ‘The transition into the new
  • 9. 52 / 53 ©Staudinger & FrankeMASTERS OF ORIGAMI / AUSTRIA 2005 / CHALLENGE / FOUNDER DIETRICH MATESCHITZ KNEW THERE WAS POTENTIAL IN THE ENERGY- team has been such a big job. Only next year will we GIVING TONIC HE FIRST SPOTTED IN THAILAND really see a Red-Bull-ified team. Then well see some BEING GUZZLED BY TIRED TRUCK DRIVERS. HIS really creative uses of the team’, he says. BIG CHALLENGE WAS TO PERSUADE THE REST Already Red Bull has put its own spin on this traditional OF THE WORLD TO CONSUME A SOFT DRINK FOR marketing arena, by launching its own magazine to ITS FUNCTION, RATHER THAN ITS TASTE. NO ONE accompany race days, called Bulletin. It contains all the HAD ENCOUNTERED ANYTHING LIKE IT BEFORE. trackside gossip, from news about drivers girlfriends to FOCUS GROUPS THOUGHT IT TASTED HORRIBLE. Bernie Ecclestones latest bugbear. RUMOURS EMERGED THAT THE DRINK CON- In August it threw a Star Wars themed event to TAINED LIFE-THREATENING CHEMICALS, AND celebrate the formation of the new team during the PEOPLE THOUGHT IT WAS EXPENSIVE. Monaco Grand Prix weekend and promote the release PROTRACTED DEVELOPMENT COSTS ATE INTO of Episode III: Revenge of the Sith. Director George RED BULLS LAUNCH MARKETING BUDGET. Lucas schmoozed with the Stormtroopers and the Formula 1 glitterati. SOLUTION / BY TARGETING OPINION FORMERS WITH GRASSROOTS MARKETING INITIATIVES, RED Although the Formula 1 deal gives Red Bull a bold BULL CREATED AN IMAGE AROUND THE BRAND global positioning, some observers have questioned the THAT MADE DRINKING IT SYMBOLISE FREEDOM, move and hinted that it is Mateschitzs personal affinity AND LIVING LIFE TO THE MAX. IT HAS DONE THIS to the sport that led to the decision to invest, rather than BY BEFRIENDING PARTYING STUDENTS AND sound marketing sense. Similar aspersions have been EXTREME SPORTS ATHLETES THROUGH ITS MANY cast in relation to Red Bulls aviation interests, such as QUIRKY EVENTS AND SPONSORSHIPS. THESE Hangar-7 (a huge glass hanger at Salzburg airport PROPERTIES ARE HIGHLY PR-FRIENDLY, which houses a collection of old aircrafts, the Flying ATTRACTING SIGNIFICANT MEDIA EXPOSURE. Bulls) and its restaurant Ikarus, which showcases WHEREVER PEOPLE ARE IN NEED OF acclaimed chefs every month. STIMULATION FOR THE BODY AND MIND, RED But as Giles Morgan says, in todays world obsessed BULL IS THERE. THE STRATEGY CONTINUES with return on investment and research panels TODAY WITH A GROWING NUMBER OF OPINION ‘marketers can sometimes disappear up their own FORMERS DRINKING RED BULL, SUCH AS marketing strategies’. CRICKETERS AND GOLFERS, AND TELLING THE ‘Marketers can be very pompous about CEOs creating REST OF THE WORLD ABOUT IT. RED BULLS associations on a whim, or putting money into their WEBSITE SERVES AS A PORTAL INTO THE favourite pastimes. But why the hell not? In Red Bulls DIVERSE ARRAY OF ACTIVITIES ENDORSED BY case, thats very close to the idea of living your life how THE BRAND. you want to’, he adds. Many marketers also lose confidence in their ideas if RESULTS / IN ALL NATIONAL MARKETS IN WHICH they dont immediately produce a payback. This is RED BULL IS PRESENT, IT HOLDS AT LEAST A something that Mateschitz has never done. He 70% SHARE. NO OTHER RIVAL HAS GOT CLOSE, relentlessly persevered, even when the outlook was DESPITE THE CONSTANT ONSLAUGHT OF bleak. LAUNCHES IN THE ENERGY DRINK SECTOR. IT HAS MANAGED TO DO THIS WITHOUT THE As Beers points out, many successful brand case NEED TO DISCOUNT ITS PRODUCT OR REVAMP studies read like fairytales that follow a logical ITS IMAGE. progression to an inevitable, happy ending. ‘But just IN 2004 RED BULL SOLD 1.935 BILLION CANS. because a brand gets to be successful doesnt mean COMPANY SALES ROSE BY 32.3% FROM 1.261 that its logical. Often articles have a selective BILLION EUROS TO 1.668 BILLION EUROS. SALES perception of events. You read them and think “hey, ARE UP 50% IN THE USA, 43% IN THE MIDDLE anyone can do it”. We should never forget that EAST, 40% IN AUSTRALIA AND 30% IN EASTERN Mateschitz had very hard times.’ EUROPE. FOR MANY, RED BULLS SLIMLINE CAN The founders passion and commitment runs through CHARACTERISES ENERGY DRINKS AND HAS the company DNA. Though this human touch will not BECOME AS ICONIC AS THE COCA-COLA always be predictable, logical or rational, theres no BOTTLE. IN FACT, ACCORDING TO BEVERAGE doubt that when the brand grabs the bull by the horns, DIGEST, RED BULL NOW OUTSELLS COKE AND its a force to be reckoned with. PEPSI IN AMERICAN CONVENIENCE STORES.
  • 10. case study / red bull /ANALYST’S INSIGHT / By John Band /Consumer Markets Analyst at Datamonitor If youre planning to launch a new product into the over- crowded soft drinks market, youve got two options. Either start with a small-scale launch, with a possible roll-out to other regions if everything goes well (maybe if this is successful, youll eventually roll the brand out nationwide or internationally). Or go for a huge, all-guns- blazing global launch, supported by vast amounts of above- and below-the-line marketing. The first approach is popular among low-cash start-ups, the second among drinks giants - Innocent smoothies and lemon-and-lime Diet Coke are good examples. But what about a huge global launch over a short time peri- od without significant input or support from any of the established multinational drinks companies? What about doing this initially with no above-the-line market- ing support at all? Red Bull is not an example that drinks marketers ought to follow slavishly: Dietrich Mateschitzs roll-out plan was so bold that, but for the fact he owned the company, no CEO would ever have greenlighted it. The success of this strategy owes a great deal to being in the right place at the right time, as clubbers tired of beer and alcopops while extreme sports took off worldwide. Nonetheless, Red Bulls launch was clear evidence that viral and word-of-mouth marketing is now the most important advertising medium for new product launches, utterly eclipsing the traditional 30-second TV spot. Consumers are so jaded and immune to conventional ad claims that if you want them to trust a new brand, you need to go for their friends and their idols. Above-the- line media still have a role, but this role is to maintain interest in existing brands and to support below-the-line campaigns. www.datamonitor.com AD SPEND EURO BY ADVERTISING + COUNTRY APRIL 2005 - JUNE 2005 NETHERLANDS SWITZERLAND PAN-EUROPE DENMARK GERMANY BELGIUM SWEDEN FRANCE SPEND SPAIN ITALY MILLIONS UK 3,000 2,700 2,400 2,100 1,800 1,500 1,200 0,900 0,600 0,300 0,000 TELEVISION UK D F E NEWSPAPER I B NL S DK MAGAZINE CHE PAN EUROPE Source: www.xtremedigest.com
  • 11. 54 / 55 RED BULL / BRAND MAP/ HERITAGE / Most of the worlds iconic ©Ian Hylands brands are rooted in a good story. Red Bulls humble origins as an obscure ori- ental stimulant sparked a rags-to-riches tale rooted in the power of effective mar- keting. The myths surrounding the GRASSROOTS MARKETING / Wh drinks strange-sounding chemicals - an Red Bull launched in 1987, the marketi aphrodisiac? The equivalent of 14 budget had largely been eaten up by t espressos? Made of bulls testicles? add new products development cos up to something close to a magical Reluctant to run the company on de potion. founder Dietrich Mateschitz a advertising partner Johannes Kastn opted for a grassroots strategy, whi has become the brands trademark. R ©ulrichgrill.com Bull is a rare drink, sold on physi benefit rather than taste. Hence t inaugural army of street sampler targeting the tired outside gym university campuses and offices. CREDIBILITY / Copycat rivals have crashed and burned in Red Bulls wake. It has retained its stranglehold on the energy drinks category because of a clear and consistent positioning, free of the usual retail gimmicks and packaging redesigns: the product genuinely does deliver on its claim to vitalise body and mind. EVENTS / BUZZ / Red Bull sees event marketing as an antidote to heavily branded mainstream advertising. This chimes with the brands making friends, not buying people positioning. Activities range from secret parties that keep a subversive brand on the right side of ©DanielGrund.com cool to PR-friendly Air Races and the famous Flugtag, watched by up to 50,000 spectators in one go. Red Bulls appeal has grown by targeting opinion formers, ©Jürgen Skarwan who drive sales through word of mouth.PONSORSHIP / CULTURE / Red Bulls SPONSORSHIP / SPORTS / Red Bul usic Academy helps young DJs, synonymous with speed sports a ngers, songwriters and producers gravity-defying stunts. The bra arn from renowned musicians. Its sponsors 300 athletes, many of whaurus World Stunt Awards honour are up-and-coming rather than big naollywood stuntmen. The brand also stars - the idea being that Red Bulluns its own web radio - a library of help them reach their potential.ew music, accompanied by a photo Extreme sports suit the brand becarchive of Red Bull events. Its ties to they accentuate the product benef ©DanielGrund.comviation are symbolised by Hangar-7 at when athletes are pushed to the limitsalzburg airport, which houses a endurance, Red Bull stimulates body aollection of old aircraft, and a mind. Red Bull has also infiltraestaurant, Ikarus, which showcases traditional sports like cricket and gcclaimed chefs. and now runs its own Formula 1 team