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Red bull case study
1.
2. • Red Bull, a multibillion-dollar beverage
brand was founded by Dietrich
Mateschitz in 1987.
• It was the birth of completely new
category- The Energy Drink.
• MISSION: “We are dedicated to upholding Red
Bull standards, while maintaining the leadership
position in the energy drinks category when
delivering superior customer service in a highly
efficient and profitable manner”
3. Products :
• Red Bull Energy drink
• Red Bull total zero
• Red Bull sugar free
Ingredients:
• Caffeine
• B-complex vitamin
• Amino acid taurine
• Carbohydrates
4. Two charging bulls representing POWER, RED signifies perseverance and SUN symbolizes
ENERGY
5. PRESENT POSITION IN THE MARKET:
• Markey share of 44%
• Positioned in 171 countries
• A history of 30 years
• #70 World’s most valuable brand
• Sales of around $6.4 B
6.
7. Target Market:
• Ages 15-30
• College students
• Athletes
• Gamers
• People in the workplace
• Bars/restaurants
• Active individuals
8. OBJECTIVES
• To be seen as unique and rebellious product
• To build its brand of authenticity and originality
• To be the most preferred among youth
• Increase brand awareness and sales among females by
15% to 20%
9. Opportunities
• Growing market: Energy drink sales are projected to grow 40% by 2015
(Mintel)
• Increase product line
• Partnership/advertising with social media
• Gaining customer loyalty throughout multiple generations rather than just
target market
• Consumer recognition through sponsorship of sporting events
11. PROMOTION
Red Bull takes advantage of BUZZ MARKETING techniques:
• Personal selling: free distribution samples in college campuses, clubs, and places where
many young people hang out.
• Advertising: Strong athlete endorsements and sponsorship of events in the extreme sports
world.
• Social Media: Use Facebook and twitter to reach out to their consumers, release
promotions and endorse athletes.
• Build hype around their athletes and events with YouTube videos.
12. PROMOTION
EVENTS and EXPERIENCES:
• Create and host big tailgate tent party with games and giveaways
• Free spirit cans supplied by the Wings Team before the games and at the
tailgate party tent
• Competitions held throughout day to win ultimate Red Bull tailgate swag
• Live music or DJ at the tailgate tent
13. • Red Bull sponsored F1 team is one of
the brand’s major identity.
• Annual Flugtag events attract around
300,000 consumers worldwide.
The Flugtag event promotes the brand
slogan “Red Bull gives you wings”
14. THE COMPETITION
1. MONSTER:
• 34% market share
• Larger brand- including 6 product lines
• Similar marketing strategy to Red Bull
• More edgy than Red Bull focuses on living "life on the edge" and the extreme
lifestyle
15. 2. Rockstar:
• 9% market share
• Advertises itself as the "world's most powerful energy drink”
• Available in 19 flavors
3. Full Throttle:
• 2% market share
• Same target market as other energy drinks
• Owned by Coca Cola
• Partners will USO and NHRA
• Minimal television advertisements
16. STRENGTHS
• Red Bull can compete within the market -share of soft drinks, nonalcoholic drinks and
energy drinks
• First energy drink produced, created its own market
• Strong Brand Recognition
• Controls well over 40 percent of the energy drink market
• CELEBRITY ENDORSEMENT: Promotions team is active throughout communities through
famous sports athletes and entertainment celebs
• SPONSORSHIP: Strong sponsorship in areas such as Motorsports, biking, surfing,
snowboarding, music, and gaming
• BRAND POSITIONING: Red Bull vitalizes body and mind- confident energy giving drink.
17. WEAKNESSES
• Product hasn't changed much over the years
• Limited packaging options at the retail level.
• Limited Product Line
• Only have 6 total: Original, Sugar-Free, Total Zero, and
the Red Bull editions
18. RISKS
• Health concerns: tougher rules from government on high caffeine content
• Failure in the new product/service
• Negative impact from extreme sports
• Unexpected threats reflecting poorly on the brands image:
1. events- getting out of control or irresponsible
1. sponsorships making bad decisions or being poor role models
19. Should Red Bull start traditional advertising?
Why or Why not?
• Modern media channels have to be used for advertising
• Traditional method is not effective to target youth market
• Strong presence in social media platforms and use of high technology
are important keeping in mind the target market
• The non-traditional advertising through continuing sponsoring its
present events bring brand awareness targeting the Gen Y.
20. VIEWS ON EFFECTIVENESS OF RED BULL’S SPONSORSHIP
• Stratos is being used as means of having their slogan “Red Bull
gives you wings”
• Sponsoring high energy events helps in promoting the concept
that Red Bull drinks can invoke such high energy and power to
consumer
• Company should draw a line when costs of sponsorship are very
high and do not foresee themselves being able to make any
profits/improvements or is ineffective