1. Red Bull: A brand Built on Marketing
Posted on December 28, 2011 by clairelouvet
Photo by AntwerpenR
How a company with a single product manages to intimidate the Coca Cola Company.
With its unique product, Red Bull is the perfect example of a successful business development strategy. In twenty years the b rand has certainly become a reference in
terms of energy drinks but also in terms ofmarketing strategy.
Red Bull’s ambitious objective is to dethrone Coca-Cola. The two brands have the same advantage: they are the first product oftheir kind in their own markets, and so
competitors can only try to imitate them. Red Bull was the first energy drink to be launched and has achieved today a clear market leading position with 4,204 billion
cans sold worldwide in 2010, representing an increase of7,6% against 2009.
The most dynamic markets, in terms of sales, are Turkey, Japan, Brazil and USA; which demonstrates that the brand is successful in both the developed and the
developing world. Today Red Bull is a company present in 162 countries with the same, consistently strong brand image all around the world, and Red Bull ensures to
retain the integrity ofthis image meticulously. However, ifthe brand has the same image worldwide, it does not mean that the methods used to conquer local markets
are exactly the same everywhere. The company has known how to cleverly implement its strategy with local teams in each market.
Targeting the “ Y Generation”, sick ofall the classic marketing strategies, Red Bull is trying to be as close as possible to its consumers in its distribution strategy and
likewise in its promotion strategy by having a ‘street marketing’ strategy. The “Wings Team’s” role is to establish a relationship with the consumers, to have them
discover the product, to talk with themabout this controversial product and to convey the information from the consumers to the company about their appreciation or
dissatisfaction ofthe product. In most countries the wings are typically attractive female students; but ofcourse there has to be some men because of worldwide
cultural differences such as in the Middle East for example, where the patriarchal concept ofa society prevails. The best way to be close to its consumers and to
convince themis to hire them! The Student Brand Manager is an ambassador of the brand in their own school. Their objective i s to be sure that Red Bull is present at
every strategic moment in the student social calendar: integration week-end, sportive events, big parties etc… The strength ofRed Bull is an ability to instill a genuine
passion for the brand in the Wings Teamand the Student Brand Managers. Thus, these committed people are more likely to promote a good image of the brand and to
have a greater positive impact on targeted consumers. Well known physical evidence that will attest to this process is the Red Bull car: a Mini One with a can above it,
painted with Red Bull colors. But in some countries this car doesn’t have the can on it.

2. Photo by Tobrouk
The brand speaks to this generation with a worldwide positioning: “Red Bull vitalizes body and mind” and its slogan i s known by all: “Red Bull gives you wiiings.”
The company is besides famous for its unusual methods ofmarketing. Since 1992, Red Bull has created cheap cartoons with simp le but recognisable drawings, telling
funny and simple stories, easily adaptable to every local market. Every year each subsidiary can choose some spots in the Red Bull cartoon data base according to the
situation in their own current market. One ofthese spots is called “Pigeon 1” and has been imagined without any lyrics and t hus, easily adaptable; it is the most
awarded but also controversial spot ofall the Red Bull campaign!
The Red Bull product has been widely criticised because ofsome ingredients like taurine. But this argument has only served t o expand brand awareness further and
has reinforced the reputation ofthe brand. Red Bull has indeed managed to create a real buzz through the utilization ofits key marketing strategy, word ofmouth,
which works in every market all around the world. In some countries the target consumer segment began to adopt nicknames for the product such as “liquid
cocaine”. The banning ofthe product in the French market until 2008, for example, has totally empowered the brand which has entered th e market by capturing
French people’s imagination on its first day by blocking the Champs Elysées in Paris, having Red Bull cars all over the city and an athlete riding some buildings in L a
Défense.
Red Bull wants to be seen has a high quality product and the company is therefore particularly strict regarding its image and pricing policy. Regarding price, Red Bull
is indeed more expensive than its competitors, but the company has still 70% market share. For instance, in what Red Bull cal led the “ON” sector, which applies to
restaurants, cafés, hotels, pubs and night clubs, every beverage served with Red Bull has to be sold at a specific price determined in advance by Red Bull’s sales
manager of the country. Furthermore, Red Bull has a rule regarding the way to serve consumers: the “perfect serve”. Barmen are expected to fill the glass with Red
Bull and to give the can with the rest ofthe Red Bull to the client. The objective is to create visibility for the product i n the bar. Besides fashion, trendy bars and night
clubs, Red Bull wants to be present in every store, even the smaller ones, in order to be as close to the consumer as possible. Most ofthe time, the product is ofcourse
sold in every super- and hypermarket, yet in the United States for instance, Red Bull has entered the market by asking for exclusivity to small retailers. In France, Red
Bull has had considerable success in gas stations thanks to drivers, who are also important consumers. Like Coca-Cola, the company has managed to infiltrate every
channel ofdistribution worldwide, even in the “OFF” sector, which applies for places where the product is sold to be drunk later, where the primary aimis setting up
advertising in every POS (point ofsales) to be as visible as possible.
Away from localised marketed adaptation, Red Bull looks to standarise its marketing strategy and advertising and image through communication in extreme sports, as
this is consistent worldwide. Red Bull’s innovative communication strategy aims to INVEST massively (15% ofits turnover every year) in sponsoring athletes and
even entire teams in specific sports which offer dramatic shows and which are watched all over the planet. This is an expensive strategy but results thus far suggest it
is a worthwhile endeavor. Its two main competitors are: the Coca Cola Company and Monster; which are distributed in France us ing many ofth saaem distribution
channels and points ofsale.
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