Red Bull is an energy drink created in 1987 that has become the highest-selling energy drink worldwide. It pioneered the energy drink market using unconventional marketing strategies like events sponsorships and word-of-mouth promotions targeting younger consumers. Red Bull employs integrated marketing communications including social media, sampling, and sponsorship of extreme sporting events. While its non-traditional approach has been successful, expanding competition and potential health concerns pose risks to market dominance.

1. It Gives You Wiings

2. Contents
 Origin
 Growth Story
 Ingredients and Productlines.
 Competitive Analysis
 Different stratagies employed.
 Managing Integrated Marketing
Communications.
 The Mini Case Solution-kotler keller

3. Origin
 Red Bull is an energy drink sold
by Austrian company Red Bull GmbH,
created in 1987.
 Austrian entrepreneur Dietrich
Mateschitz along with Chaleo Yoovidhya
founded Red Bull GmbH in 1987 in
Chakkapong.
 Entered Hungary, its foreign market in 1992.

4. Growth story
 It entered the United States via California in 1997and
the Middle East in 2000.
 In the U.S., Red Bull enjoys a 47% share of the energy
drink market, and now has a 50% share of the German
energy drink market.
 Its market has extended to more than 160 countries as
of now.
 Now, Red Bull is the highest-selling energy drink in the
world, with 5.73 billion cans sold in 2013.

5. Ingredients and product lines
 Mainly contains amino acid taurine, B-complex
Vitamins,caffiene and Carbohydrates.
 Highly regarded as ‘Liquid cocaine’ and ‘speed
ina can’ by core customers.
 Offered only a single product, RedBull energy
drink in a size of 250 ml since inception.
 Recently introduced three more products:Red Bull
sugar free, Red Bull Energy shots and Red Bull
Cola.

6. Product lines

7. Competitive Analysis

8. Share of Energy Drink Market
Red Bull 42.6
Monster 14.4
Rockstar 11.4
Full Throttle 6.9
Sobe No Fear 5.4
Amp 3.6
Sobe Adrenaline Rush 2.9
Tab Energy 2.3
Monster XXL 0.9
Private Label 0.9
Rip It 0.8
Sobe Lean 0.7
BooKoo 0.5
Sobe Superman 0.4

9. Real Competition
 Redbull’s real competitors are the market
leaders of cola companies such as : Pepsi
& Coca Cola, who have created their
brand leadership since several years in
the International market.

10. Target Market Analysis
 Core age group of 16 to 29.
 Energy drinks with high sugar
levels children and women
 Energy drinks with strong taste
and flavor are preferred by
male consumers.
 Recent studies shows that 65%
of the energy drinks market
consists of male consumers.

11. Customer Analysis
 Young people are especially open to determined
exhaustion and insufficient energy.
 More specifically male teenagers & people in their
20s, are also most likely to believe in the authenticity
of the energy drinks’.
 Appeal to very specialized groups, such as gamers,
extreme sports enthusiasts, and the hip-hop crowd.

12. Target Consumer
Demographics Psychographics Usage Behavior Consumption collection
Age: 16-29
Content
Image Conscious
Influenced
Spending Power
Youth trends
Physically Active
Eat Out
Highly
growing
market

13. Different strategies
employed

14. Market Segmentation
Strategy
 Avoided usual methods of
marketing, relying more on‘Viral
marketing' and word-of-mouth.
 Red Bull advertised directly to
Generation Y: people born after
1981.
 ‘Student brand managers‘ are
encouraged to throw parties at
which free cases of Red Bull would
be distributed at Universities.

15. Corporate Strategies
Mission Statement
To be the premier marketer and supplier of
RedBull in Asia, Europe and other parts of the globe.
Achieve by building long-term relationships with the
people who can make it become a reality.

16. Vision Statement:
 People: Be a great place to work & Keep people
inspired.
 Portfolio: Portfolio of quality beverage that satisfy
people's needs.
 Partners: winning network of customers and supplier
to create mutual & enduring value.
 Profit: Maximize long-term return keeping overall
responsibilities In mind.
 Productivity: Highly effective, lean and fast-moving
organization.

17. Brand Positioning Strategy
 Unique & Relevant to the target
audience.
 positive emotional attachment
 Consistent across multiple
marketing & advertising
mediums
 Able to adapt to a changing
marketplace.

18. Distribution Strategy
Intensive distribution aims to
provide saturation coverage of the
market by using all available outlets
such as:
Bars and clubs.
Gyms and Trendy shops,
Coffee & Pizza Houses.
Restaurants & super Markets.

19. Managing Integrated
Marketing
Communications

20. Integrated Marketing
Communication
Methodologies
How do we communicate?How do we communicate?
How do customers process information?How do customers process information?
Thorough understanding of the audience's needs, emotions &Thorough understanding of the audience's needs, emotions &
activities is essential to ensureactivities is essential to ensure accuracy & relevanceaccuracy & relevance of theof the
message.message.

21. IMC Objectives
RedBull’s IMC objective Are : Sales Promotions.
Create new target markets.
Large display in the Departmental stores.
Bull Hoof stickers on the floors of departmental stores
promoting RB.

22. Integrated Marketing
Communications
Management
Sales Promotion:
 Must encourage the 1st
purchase of
the product in a store.
 Make them aware of the product &
its advantages by offering free
samples.

23. Word of Mouth Marketing
 Targets Opinion
leaders Primarily
by sampling its
product and later
encourage them
to share their
experience to
followers .

24. Events and Experiences
 Red Bull sponsors a wide range
of sports which aligns with its
core slogan.
 Red Bull does an extensive
event sponsoring.
 Event sponsoring attracts
people’s attention towards the
product and connects them.

25. Some famous events

26.  High credibility than Ads
 Reach hard to find buyers
 Create Public Awareness
 Challenge consumer
misconceptions.
 Media Relaitons.

27.  Promotions through social networking sites such
as: facebook, twitter and over the phone directly.
 Message can be tailored as per the specific
customer and can be changed quickly.
Direct and Interactive
marketing

28. Advertising
 Red Bull has an aggressive marketing campaign.
 Red Bull moves to the traditional advertising only
after the market turns mature.
 “Media is not a tool that we use to establish in the
market, its just later in the development” as said by a
senior executive of Red Bull.
 Red Bull achieves this by a humorous and witty
cartoon campaign, transferring the message that
this energy drink helps you to escape by `giving you
wings ´.

29. Few Ad samples

30. Media Plan
TV:
 Still a staple medium of advertising.
 Allows to demonstrate the advantages of
RB.
 Good Reach.
Magazines:
 Economical.
 Provides higher brand awareness.

31. Evaluation & Control
Metrics
Campaign Element Metrics
News Media No. of viewers of the articles
Social Media No. of people using the Blogs
such as Twitter, Facebook
Internet & TV No. of people viewing
particularly when the Ad is being
aired.
Print Advertisement No. Of Subscribers of those
magazines, Newspapers
Product Placement No. of comments (+ or - )
mentioned on social networking
sites.

32. Personal Selling
 Sampling is important part of the
three pillar marketing system.
 As the major purpose of Red Bull is
to energize the company samples
at the right place at the right time,
where it finds its exact target
market.
 Examples of usage are driving,
studying, working night shifts and
sports.

33. The Mini Case solution
Kotler keller 14th edition

34. 1.What are RedBulls great
strengths and weaknesses as more
companies enter the energy drink
category and gain market share?

35. Overview
strengths
 Pioneered the new energy
drink market.
 Easy adaptable advertising
across the globe.
 Market leadership-industry
leader throughout the world.
 Widely succesful
‘Antimarketing’ strategy.
 Marketing Efforts-well-
targeted campaigns and
sponsorship
Risks
 Negative impact from extreme
sports.
 Tight Regulations from the
government on Health
concern.
 Organic energy drinks that can
steal Red Bull market share.
 Consumer awareness of health
and well-being can make them
look for alternatives to lead
healthier life

36. 2.Should redbull do more
traditional advertising?why or why
not?

37. Traditional advertising
Decision
 Target Market – Young people who aggressively use
Technological and social Media platforms, Youtube etc.
 The slogan ‘Red Bull gives you wiings’ align with the extreme
sports and event sponsorships will have a huge influence on
Target Market.
 Use of seeding programs and sampling to opinion leaders
help to acquire potential customers who would have never
tried otherwise with costs much lesser than traditional
advertising.
 So, it should continue with its current strategy of using
traditional advertising only when market is mature.

38. 3)Discuss the effectiveness of Red
Bull’s sponsorships, for example,
Bull stratos. Is this a good use of
marketing budget? Where should
the company draw the line?

39. Bull Stratos
 Red Bull sponsorships such as Bull stratos , annual Flugtag are
highly effective as they align with its tag line ‘Red Bull gives you
wiings’.
 Stratos featured the first man to break the sound barrier with a
free fall on 14th
october 2012 and Flugtag encourages to build a
pilot controlled under 450 pound aeroplane race.
 The sponsorships of events like this will invoke a high energy and
power feeling to the consumer and can be spread to the world
using lowcost through Youtube and RedBull.tv
 Redbull should draw the line if the costs of the sponsorship are
too high and they do not foresee themselves being able to
make up the costs in the near future

40. REDBULL AIR RACEANNUAL
FLUGTAG
BULL STRATOS

41. Sources
 Images from Creative Commons
 http://www.rediff.com/money/2006/may
/24drink.htm
 http://www.thestudentroom.co.uk/showt
hread.php?t=986602
 http://www.trcb.com/business/marketing
/redbull-marketing-strategy-7375.htm
 http://www.drawert.com/red_bull_2.php
 http://energydrinks.factexpert.com/882-
energy-drink-industry.php

42. Summary
 Origin
 Growth Story
 Ingredients and Productlines.
 Competitive Analysis
 Different stratagies employed.
 Managing Integrated Marketing
Communications.
 The Mini Case Solution-kotler keller

43. DISCLAIMER:
 Created by Fayaz Ahamad, NIT
Jamshedpur under the guidance of
Marketing Professor Sameer Mathur, IIM
LUCKNOW