The 7 P's of Red Bull

1.
THE
DECONSTRUCTION
OF
REDBULL
IT’S
ALL
ABOUT
THE
7
P’S
SEA
170:
7P’S
ASSIGNMENT
Jessica
Forstner
Sharon
Stiasny
Kimberly
Hou
Hartley
Mendelsohn
Natasha
Mladenoska

2.
1 PRODUCT
Chaleo
Yoovidhya,
founder
of
TC
PHARMACEUTICAL
INDUSTRY
COMPANY
LTD,
originally
developed
Red
Bull
in
1962,
in
Thailand.
The
drink
was
sold
as
Krating
Daeng
(Water
Buffalo).
Krating
Daeng
dominated
the
energy
drink
market
in
Thailand
targeting
the
working
class
and
blue
collared
workers.
Dietrich
Mateschitz,
a
former
marketing
executive
from
Austria
stumbled
upon
Krating
Daeng
in
Thailand,
and
in
partnership
with
Yoovidhya,
he
altered
the
flavour
to
appeal
to
the
European
palate
and
created
Red
Bull
GmbH.
Mateschitz
was
aware
he
was
not
only
creating
a
new
brand
but
a
brand
new
market,
the
energy
drink.
Red
Bull
changed
the
landscape
of
the
beverage
world
and
further
set
precedence
as
a
lifestyle
brand.
Red
Bull
is
a
carbonated,
berry
energy
drink
with
benefits
of
increased
endurance,
concentration,
memory,
vigilance
and
speed.
Red
Bull’s
beverage
product
line
includes
Red
Bull,
Red
Bull
Cola
(100%
natural),
Red
Bull
Sugar
Free,
Red
Bull
Zero
Calorie
and
Red
Bull
Editions
(Red,
Blue,
and
Silver;
featuring
different
flavours
cranberry,
blueberry
and
lime).
With
the
variety
of
product
options,
it
is
no
surprise
that
Red
Bull
has
currently
sold
over
40
billion
cans
in
over
166
countries.
Red
Bull
cans
have
a
unique
logo
and
distinctive
shape
and
size.
The
cans
original
iconic
colours
are
blue
and
silver,
however
the
cans
colours
and
patterns
are
modified
for
each
flavour
with
the
same
logo
of
two
gaurs
charging
towards
each
other
in
front
of
a
yellow
sun.
The
sweet,
caffeinated
drink
became
an
instant
success
in
Europe
creating
a
demand
to
further
expand
global
distribution
and
develop
the
brands
philosophy,
“The
World
of
Red
Bull”.
The
World
of
Red
Bull
has
built
a
product
beyond
its
competitors,
altering
branding
as
a
good
and
service.
There
are
no
limitations
for
Red
Bull
as
a
product
as
it
surpasses
a
refreshing
drink
and
has
become
a
major
provider
of
content
and
entertainment.
They
established
Red
Bull
Media
House,
which
produces
reality
television
programs,
full-­‐length
films,
home
entertainment
channels,
web
videos
and
magazines.
They
have
dipped
into
the
music
market
with
Red
Bull
Music
Academy,
an
online
radio
station
and
record
label.
Red
Bull
has
a
mobile
application
and
an
interactive
website
with
detailed
information
on
all
events
taking
place,
past,
present
and
future.
Their
event
list
is
massive,
diverse
and
ultimately
extreme
in
nature
with
events
such
as
Red
Bull
Cliff
Diving,
Red
Bull
X-­‐Fighters,
Red
Bull

3.
World
Series,
and
Red
Bull
Crashed
Ice
to
name
a
few.
Red
Bull,
thus
produces
goods
and
services
in
an
unconventional
way,
further
proving
their
authenticity
as
a
brand.
For
each
P
in
the
Marketing
mix
we
are
focusing
on
the
Red
Bull
product
itself
as
well
as
one
major
event
Red
Bull
produces
and
hosts,
in
this
case
we
have
selected
Red
Bull
Crashed
Ice.
Red
Bull
Crashed
Ice
is
a
major
ticketed
event
that
demonstrates
Red
Bull’s
unorthodox
capabilities
of
producing
branded
entertainment,
which
started
in
2001.
Crashed
Ice
is
an
extreme
winter
sporting
event
that
tours
major
cities
around
the
world.
The
event
features
a
downhill
ice
cross
tournament
with
half-­‐pipes,
vertical
drops,
and
180-­‐degree
turns,
4
skaters
at
a
time.
The
track
is
made
from
steel
panels,
grinders
and
ice
in
an
urban
environment
throughout
the
hosting
city.
The
venue
area
is
plastered
with
Red
Bull
backdrops,
bright
lights
and
music,
with
over
120,000
attendees.
Crashed
Ice
is
an
exciting
social
event
many
people
identify
with,
creating
a
global
fan
base.
Fans
share
the
experience
together
cheering
on
their
favourite
athlete.
Red
Bull
blurs
the
lines
of
the
marketing
and
sponsorship
world,
as
we
know
it.
Their
product
line,
events,
shows,
publications
and
merchandise
blend,
creating
a
social
and
personal
experience.
There
is
no
distinction
between
Red
Bull,
Red
Bull
Events
or
its
merchandise
as
they
all
go
hand
in
hand.
They
are
an
enterprise
with
one
ambitious
marketing
campaign
“The
World
of
Red
Bull”.
2 PEOPLE
Based
upon
the
events
Red
Bull
has
sponsored,
and
the
associations
that
are
conveyed
through
the
brand,
Red
Bull
is
marketed
to
both
males
and
females.
The
primary
markets
of
Red
Bull
are
teenagers
and
young
adults
aged
15
to
29.
Red
Bull
has
many
associations
that
target
specific
demographics.
They
tailor
to
those
who
are
active
in
or
enjoy
extreme
sports.
As
well
as
high
performance
athletes
who
surge
towards
Red
Bull,
notably
those
who
participate
in
extreme
sporting
events
and
others
who
want
to
enhance
their
performance.
Additionally,
college-­‐aged
students
are
an
ideal
market
for
Red
Bull.
The
drink
is
an
alternative
to
other
caffeinated
drinks
and
is
further
consumed
at
social
engagements
which
may
include
alcohol
or
studying.
Red
Bull
Crashed
Ice
is
also
targeted
towards
both
males
and
females
aged
15
to
29
years
old.
The
participants
in
the
event
are
both
males
and
females,
and
must
be
at
least
18
years
of
age.
The
demographic
that
this
event
caters
to
is
ice
skaters,
hockey
players
and
all
around
extreme
sports
enthusiasts.

4. 3 PLACEMENT
As
the
leading
product
in
the
market
for
energy
drinks,
Red
Bull
has
been
able
to
dominate
when
it
comes
to
the
Placement
and
Distribution
of
their
product.
Originating
in
1987
Red
Bull
was
sold
for
the
first
time
on
April
1st
in
its
home
market
Austria.
Today
the
distribution
process
from
manufacturer
to
consumer
still
remains
close
to
its
home
roots
with
all
distribution
beginning
in
Austria
and
Switzerland
to
over
more
than
165
countries
worldwide.
The
distribution
process
strives
on
being
as
eco-­‐friendly
as
possible
in
order
to
reduce
its
carbon
footprint,
Red
Bull
uses
a
method
called
“Wall-­‐to-­‐Wall”
production
at
their
production
sites.
This
means
that
their
cans
are
manufactured
and
filled
at
the
same
sites
–
helping
save
many
miles
of
transport
while
saving
resources
through
short
distances.
In
terms
of
transportation
Red
Bull
predominantly
uses
shipment
by
train
or
ship;
they
will
only
use
trucks
when
absolutely
necessary.
An
advantage
that
Red
Bull
has
for
transportation
is
the
fact
that
the
can
itself
is
compact
in
shape
and
light
in
weight,
which
makes
it
a
more
efficient
transport
packaging
than
PEI
or
glass
bottles.
Even
though
Red
Bull
is
sold
in
over
165
countries
worldwide,
they
are
still
looking
to
expand
into
other
markets
while
targeting
core
markets
of
Western
Europe
and
the
USA.
Red
Bulls
placement
strategy
focuses
on
mass
distribution
into
several
different
sectors
of
the
market.
The
retail
channel
is
the
main
contact-­‐point
of
the
product
and
the
end-­‐consumers.
Red
Bull
is
available
in
almost
all
channels
of
the
retail
market
such
as
bars,
night
clubs,
convenience
stores,
gas
stations
and
campus
corners,
to
name
a
few.
Although
Red
Bull
uses
the
retail
channel
as
its
main
point
of
distribution
it
also
uses
other
methods
such
as
online
and
Point
of
Sale
at
events.
As
a
matter
of
fact,
Red
Bull
has
its
own
online
store
called
“Red
Bull
Shop”
which
allows
consumers
to
purchase
a
wide
array
of
products
and
merchandise
from
events,
team
jerseys,
and
event
media
such
as
live
footage
and
games.
This
year,
Red
Bull
Crashed
Ice
will
be
placed
in
four
different
cities;
Helsinki
(FIN),
Saint
Paul
(USA),
Moscow
(RUS)
and
the
final
stop
being
in
Quebec
(CAN).
At
this
event
the
placement
of
Red
Bull
is
considered
to
be
at
mass.
With
Red
Bull
being
the
official
host
of
the
event
the
Red
Bull
logo
is
plastered
on
all
elements
of
the
event
from
banners,
ice
rink
boards,
signage
etc.
The
Red
Bull
product
itself
is
also
the
main
Point
of
Sale
at
the
event.

5. 4 PRICING (PRODUCT VS EVENT: RED BULL CRASHED ICE)
Red
Bull
energy
drink
is
one
of
the
most
expensive
non-­‐alcoholic
drinks
in
today’s
market.
Their
prices
are
higher
than
their
competitors
and
the
reason
for
this
is
to
maintain
their
image
of
being
a
premium,
high
quality
product.
Red
Bull
uses
two
different
sectors
of
pricing
strategy
that
are
determined
by
the
location
of
the
sale.
The
first
sector
is
called
the
“On”
sector
and
this
is
anywhere
the
product
is
consumed
at
a
location,
including
nightclubs
and
restaurants.
The
second
sector
is
called
the
“Off”
sector
and
it
is
locations
such
as
grocery
stores
and
gas
stations,
where
the
product
is
purchased
and
then
consumed
at
a
later
time.
The
regional
managers
set
the
pricing
in
both
sectors;
however,
there
is
more
fluctuation
of
price
in
“Off”
sector
compared
to
“On”
sector.
An
individual
8.4
oz.
can
costs
approximately
$2.99
in
stores
such
as
Shoppers
Drug
Mart,
which
is
a
part
of
the
“Off”
sector,
while
a
12
oz.
can
costs
roughly
$3.49.
In
grocery
stores
such
as
Walmart,
which
also
falls
under
the
“Off”
sector,
a
4
pack
of
any
Red
Bull
energy
drink
flavour
costs
approximately
$5.98
and
a
12
pack
costs
$17.88.
In
nightclubs
and
restaurants,
which
are
a
part
of
their
“On”
sector,
the
cost
of
Red
Bull
is
inflated
and
can
cost
up
between
$6.00
to
$8.00.
The
Red
Bull
Crashed
Ice
event
in
itself
is
free
to
the
public
at
every
location
it
takes
place.
The
only
additional
costs
that
individuals
can
choose
to
pay
are
for
the
Red
Bull
Crashed
Ice
After-­‐Party,
merchandise,
and
food/beverages.
In
terms
of
the
Red
Bull
Crashed
Ice
After-­‐Party,
the
ticket
pricing
varies
based
on
location.
For
example,
in
St.
Paul,
it
costs
$15.00
for
a
ticket
to
the
after-­‐party.
Regarding
the
merchandise,
it
is
sold
both
on
the
official
Red
Bull
Crashed
Ice
website
and
at
the
event.
A
variety
of
apparel
is
sold,
such
as
shirts,
sweaters,
scarves,
toques/beanies,
hats,
and
jerseys.
The
pricing
for
the
following
according
to
the
Red
Bull
Crashed
Ice
website
goes
as
follows:
ü Shirts:
$25-­‐30
ü Sweaters:
$60-­‐85
ü Scarves:
$30
ü Toques/Beanies:
$25
ü Jerseys:
$70
The
food
and
beverage
pricing
was
not
listed
on
their
website,
however,
it
is
more
than
likely
to
be
sold
at
an
inflated
retail
cost
like
at
many
other
events.

6. 5 PARTNERSHIPS
Red
Bull
has
diversified
its
company
and
has
expanded
into
many
different
markets.
Due
to
Red
Bull’s
vast
coverage
over
many
facets
of
the
business
world,
they
have
limited
their
reliance
and
need
for
many
partnerships.
They
have
few
major
partnerships
that
they
rely
heavily
on,
and
have
many
partnerships
that
are
simply
exchange
relationships.
Red
Bull
has
such
a
huge
market
reach
due
to
its
multi-­‐faceted
structure;
including
everything
from
their
drink
to
their
media
production
company
and
to
their
sporting
events.
Due
to
this,
Red
Bull
has
the
ability
to
implement
and
produce
events
and
promotions
completely
in-­‐house
without
looking
for
strategic
partnerships
to
provide
in-­‐kind
help
or
money.
Although
this
is
the
case
for
Red
Bull,
when
analyzing
a
specific
aspect
of
Red
Bull,
each
event
or
campaign
seems
to
have
their
own
specific
partnerships.
Red
Bull
Crashed
Ice
is
one
of
Red
Bull’s
most
anticipated
events.
Notably,
this
brings
the
notion
that
it
is
an
event
that
will
attract
many
potential
partners
and
sponsors.
Red
Bull
has
been
able
to
capitalize
on
this
opportunity
by
gaining
some
major
contributing
partners
and
a
multitude
of
sponsors.
The
event’s
major
contributing
partners
help
in
the
production
and
broadcasting
of
Red
Bull
Crashed
Ice.
One
of
the
keynote
partners
for
Red
Bull
Crashed
Ice
is
a
company
based
out
of
Germany
and
Switzerland
called
AST.
They
are
the
specialist
ice
fitters
that
build
the
racetrack
for
the
event
at
all
of
its
yearly
locations.
AST
receives
payment
for
their
service;
and
always
has
their
AST
logo
presented
right
after
the
title
Red
Bull
Crashed
Ice
on
all
promotions
and
web
pages.
AST
is
a
key
partner
that
helps
to
develop
the
event.
Another
key
partner
for
the
event
is
GoPro;
providing
exclusive
and
innovative
coverage
of
the
event
from
the
racers
perspective.
All
participating
racers
in
Red
Bull
Crashed
Ice
are
required
to
wear
a
point
of
view
camera
on
their
helmet
as
demonstrated
in
the
rulebook.
Although
the
GoPro
brand
is
not
required
for
these
racers,
it
is
the
brand
that
will
be
provided
to
a
racer
if
they
do
not
have
their
own
point
of
view
camera.
GoPro
also
receives
signage
and
promotion
throughout
the
event
for
the
rental
of
their
equipment.
Additionally,
Microsoft
was
brought
on
as
a
partner
for
content.
In
this
content
partnership,
Microsoft
provides
outlets
for
the
documentary
style
series
that
is
produced
by
Red
Bull.
This
brings
an
alternate
medium
to
reach
the
target
audience.
Microsoft
receives
this
exclusive
content
to
provide
to
their
consumers
on
their
multiple
Microsoft
devices.
In
addition,
Microsoft
created
an
X-­‐Box
game
entitled
Red
Bull
Crashed
Ice
Kinect
which
took
the
partnership
to
new
heights.
Red
Bull
Crashed
Ice
has
built
successful
partnerships
with
AST,
GoPro
and
Microsoft
that
have
flourished
and
has
helped
build
the
event
to
what
it
has
become
today.
Red
Bull
Crashed
Ice
also
has
many
small-­‐scale
partnerships,
which
are
sponsors
of
the
event.
They
are
able
to
have
many
different
sponsors
as
the
event
takes
place
in
four
different
cities
each
year,

7. which
is
able
to
reach
an
International
audience;
primarily
North
America
and
Europe.
The
sponsors
of
the
event
simply
receive
signage
on
the
boards
and
on
the
ice
at
the
event.
This
is
seen
throughout
all
of
the
content
that
is
shown
in
advertisements
and
when
it
is
live
streaming
on
TV
and
on
Microsoft
devices.
The
list
of
their
recent
sponsors
include:
ARE
Skistar,
ARE
Destination,
Betsafe,
Samsung
Galaxy,
TOTT,
Reebok,
EXTREM
Events,
XTravel,
Dios,
Mini
Cooper,
Reaxcer,
Polaris,
Dodge
Dart,
Mac’s
Milk
(Couche
Tard),
GI
Tour,
and
Boston
Pizza.
The
main
sponsors
for
the
event
are
the
ones
that
are
in
Quebec
City
as
this
is
the
destination
of
the
championships
every
year.
Of
the
above
sponsors,
Mac’s
Milk
(Couche
Tard),
GI
Tour
and
Boston
Pizza
were
the
main
sponsors
for
the
most
recent
championships
in
early
2014.
It
is
well
established
that
Red
Bull
Crashed
Ice
has
the
ability
to
bring
in
a
variety
of
different
sponsors
from
all
over
North
America
and
Europe,
which
demonstrates
how
strong
the
brand
Red
Bull
is,
and
how
well
established
Red
Bull
Crashed
Ice
has
become.
6 PHYSICAL EVIDENCE
There
are
many
physical
aesthetics
of
Red
Bull
Crashed
Ice
that
bring
it
to
life.
The
design
of
the
course
begins
with
Chris
Papillon,
and
from
his
experience
as
a
former
Red
Bull
racer
he
is
able
to
apply
his
knowledge
and
expertise
to
create
a
unique
and
innovative
track.
The
sport
of
ice
cross
consists
of
competitive
downhill
skating,
similar
to
ski
cross
where
athletes
are
challenged
by
steep
vertical
drops,
sharp
turns
and
high
jumps
on
a
man-­‐made
course.
As
the
location
of
Red
Bull
Crashed
Ice
moves
from
city
to
city,
the
course
is
recreated
based
upon
the
urban
environment
around
it.
The
track
itself
is
fully
lit,
allowing
for
the
audience
to
follow
the
racers
during
the
event.
The
construction
of
the
course
allows
for
multiple
places
of
logo
placement
such
as
the
Red
Bull
air-­‐filled
arch
and
the
along
the
boards
of
the
course.
Another
main
aspect
of
the
event
is
the
POV
camera
(provided
by
GoPro,
a
partner
of
Red
Bull)
that
the
racers
are
required
to
wear
during
the
race.
The
GoPro
films
the
point
of
view
of
the
racer,
and
captures
the
event
in
a
first-­‐person
perspective.
Additionally,
the
Red
Bull
brand
ambassadors
are
another
feature
of
physical
evidence.
They
have
many
different
outlets
of
promotion,
some
of
which
include
the
distribution
of
Red
Bull
cans
at
positioned
stations,
while
walking
around,
and
out
of
the
Red
Bull
car.
In
addition,
the
majority
of
Red
Bull
brand
ambassadors
are
females.
All
of
these
elements
of
physical
evidence
are
what
make
Red
Bull
Crashed
Ice
unique
and
stand
out
among
all
other
sporting
events.

8. 7 PROMOTION
Red
Bull
uses
a
large
range
of
innovative
promotional
techniques
to
improve
the
process
of
communication
and
drive
consumer
engagement
and
loyalty.
Red
Bull
embraces
innovation
within
its
promotional
mix
and
as
such
is
able
to
create
lasting
impressions
within
its
targeted
consumer
groups.
The
concept
behind
Red
Bull’s
promotional
activities
is
to
give
people
“Wings”,
which
in
turn
translates
as
pushing
the
boundaries
of
what
is
possible
and
enriching
people’s
talents
so
they
can
achieve
their
dreams
and
goals.
As
a
company,
Red
Bull
prides
itself
on
using
“content
marketing”
to
promote
its
product
to
their
target
audience.
The
principle
idea
behind
content
marketing
is
that
“the
brand
creates
storytelling
material
that
attracts
readers,
viewers
and
listeners”.
The
essence
of
this
marketing
strategy
is
to
promote
a
positive
association
with
the
product
and
to
engage
with
the
consumers.
Red
Bull
forms
its
relationships
with
consumers
by
reaching
smaller
target
groups
instead
of
a
mass
audience
to
establish
a
more
interactive
and
engaging
experience;
in
return
this
creates
positive
feelings
by
nurturing
its
targeted
talents.
Point-­‐of-­‐Sale
marketing
is
one
strategy
that
Red
Bull
excels
in
and
is
implemented
frequently
in
the
market.
POS
marketing
is
referred
to
as
a
technique
that
encourages
consumers
to
purchase
products
when
they
are
in
a
retail
outlet.
Red
Bull’s
primary
tool
for
POS
marketing
is
the
branded
refrigerated
sales
units,
which
places
a
mini
glass
refrigerator
in
the
eye
level
of
consumers
in
order
to
engage
a
purchase.
Red
Bull
also
uses
highly
visible
aluminum
window
stickers
to
show
availability
in
stores
believing
that
the
Red
Bull
can
itself
is
the
best
promotional
tool.
Mobile
marketing
is
one
way
in
which
Red
Bull
distinguishes
themselves
in
terms
of
promotions
versus
their
competitors
by
using
the
Red
Bull
mini
coopers,
which
are
top
of
mind
in
consumer’s
perspectives.
This
means
of
promotion
is
one
way
that
Red
Bull
“educates”
consumers
through
sampling
and
trial
tastings
using
the
Red
Bull
“Wings
Team”
to
travel
around
in
the
famous
Mini
Cooper
and
promote
and
introduce
the
product
to
new
markets.
The
promotion
of
Red
Bull
Crashed
Ice
is
distributed
over
multiple
platforms
reaching
its
diverse
target
markets.
They
use
conventional
mediums
such
television
and
radio
advertisements.
The
city
which
hosts
the
event
has
a
vast
marketing
campaign
to
promote
the
event.
They
post
flyers
in
a
variety
of
public
spaces,
sporting
venues,
bars,
and
universities.
Social
media
outlets
such
as
twitter,
Facebook,
and
YouTube
provide
a
beneficial
platform
to
help
advocate
the
extreme,
high-­‐speed
adrenaline
rush
that
embodies
Red
Bull
Crashed
Ice.
All
of
these
marketing
techniques
are
consistent
in
ushering
viewers
back
to
their
brand,
website
and
energy
drink.
Furthermore
sports
networks
and
media
outlets
capitalize
on
the
opportunity
to
push
Red
Bull
Crashed
Ice
as
an
exclusive
sporting
event.
Red
Bull
Crashed
Ice
creates
an
advertising
spectacle
of
epic
proportion
that
establishes
the
“headline
hype”
for
it
partners
and
for
The
World
of
Red
Bull.

9. REFERENCES
About
Red
Bull
Crashed
Ice
(Red
Bull
Crashed
Ice
RSS)
http://www.redbullcrashedice.com/en_CA/article/about-­‐red-­‐bull-­‐crashed-­‐ice
AST:
The
Company
http://www.ast.at/
Branded
Content
Marketing
and
Red
Bull
Media
House
(Executionist
Blog)
http://www.executionists.com/blog/branded-­‐content-­‐marketing-­‐business-­‐can-­‐learn-­‐red-­‐bull/
How
Red
Bull
Takes
Content
Marketing
to
the
Extreme
(Mashable)
http://mashable.com/2012/12/19/red-­‐bull-­‐content-­‐marketing/
Microsoft
and
Red
Bull
team
up
on
Kinect
‘crashed
ice’
game
for
Xbox
Live
Arcade
(Venture
Beat)
http://venturebeat.com/2012/08/28/microsoft-­‐and-­‐red-­‐bull-­‐team-­‐up-­‐on-­‐kinect-­‐crashed-­‐ice-­‐game-­‐for-­‐
xbox-­‐live-­‐arcade-­‐exclusive/
Red
Bull’s
Billionaire
Maniac
(Bloomberg
Business
Week)
http://www.businessweek.com/magazine/content/11_22/b4230064852768.htm
Red
Bull
YouTube
Channel
http://m.youtube.com/channel/UCblfuW_4rakIf2h6aqANefA
The
Powerful
Sales
Strategy
behind
Red
Bull
(Selling
Power)
http://www.sellingpower.com/content/article/?a=9437%2Fthe-­‐powerful-­‐sales-­‐strategy-­‐behind-­‐red-­‐bull
The
Wings
Behind
Red
Bull’s
Wings
(Forbes)
http://www.forbes.com/sites/forbesasia/2013/06/24/the-­‐wind-­‐behind-­‐red-­‐bulls-­‐wings/2/