Ch. 5 - Developing a Global Vision

"You don't have to twirl a red cape in front of this bull to get a charge out of it! Red Bull markets its eponymous energy drink around the globe".
In 2010, more than 4.204 billion cans were sold in over 161 countries. 7,758 employees generated 3.78 billion euros in turnover.Red Bull holds a 70 percent share of the world market for energy drinks, or functional beverages, a category it was largely responsible for building.

 

Red Bull's distribution expanded into neighboring countries Hungary and Slovenia in 1992. Red Bull was introduced in Germany in March 1994. By June, it was claiming a quarter of the sports drink market there, reported the Associated Press, putting it ahead of Gatorade. Red Bull was introduced in the United Kingdom in 1994 and marketed there as Red Bull Stimulation after 1996. Red Bull entered the United States in 1997, focusing at first on four western states: California, Oregon, Texas, and Colorado. It was marketed to Americans as a non-corporate alternative to Coke and Pepsi, and both packaging and pricing helped set it apart. The drink was sold in unique, narrow 8.3-ounce cans for $2 a pop.
Worldwide sales were logged at 300 million cans in 1998 by Beverage World. By the end of 1999, Red Bull was sold in more than 50 countries, and sales estimates varied between 600 million and one billion cans worldwide. Red Bull led the energy drink category in the United States and the United Kingdom, where it displaced the venerable Lucozade brand owned by pharmaceutical company SmithKline Beecham (later GlaxoSmithKline).

 

 Recently Red Bull has begun to market towards India. Being a country with huge economical potential, due to the fact that India has one of the two largest geographical areas,greater linguistic and sociocultural diversity than any other country in the world but among the highest levels of income disparity in the world. Red Bull marketed towards India in 2003, the brand can be viewed as a pioneer in India becuase it was the brand that created the energy drink category. According to the Economic Times the Indina energy drink market is estimated to be about 100 crores(a unit in the Indian/Pakistani number system equal to ten million).Red Bull is talking about a volume of 15,000 cans a month in 2007 according to 'Rediif India Aboard'' a internet website for Indian news in New Delhi.

 

In order to get thier product into so many countries and sell at large quantitities Red Bull uses intensive distribution-A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go. If one were to be looking to purchase Red Bull he/she could find it in any one of the listed places below-

 

*Super markets

 

*Gyms

 

*Coffe Houses

 

*Subway

 

*Convience Stores

 

*Pizza outlets and ext.

 

 

 

 

 

 

 

 

Ch.4 The Marketing Enviroment

Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA , New Zealand , South Africa , Eastern and Western Europe . So it would be not very useful to restrict the target market to the geographic areas as well as the psychographic segmentation for the targeted consumer that’s because for a product like Red Bull it would be far to narrow as it cuts across lifestyles, demographics and socio-economic boundaries. So the best solution would be to set the target market as a behavioural segmentation. The reason for that decision is because in a behavioural segmentation the individual’s relationship with the product and the use and benefit sought from the product. Red Bull is not just an energy drink it is primarily a utility drink to be taken against mental or physical weariness or exhaustion. It’s use helps to increase endurance and heighten alertness as well as reactions and generally spoken the use of Red Bull helps to cope with the challenges of every day life, which includes work, leisure and sports.

Red Bull Target Market

The Athlete
It is usually a person who takes his sport very serious, what means he wants to get the best out of his body. Therefore you can say that Red Bull is part of his diet and sport life. So in this case Red Bull is for him a very good and easy way to improve his endurance or speed.

 The Worker          
This could be anyone who has to work hard such as a manager or a street worker. Anyone who wants to get pushed up and would rather like to have a Red Bull than a coffee.

 The Clubber
This category is fairly new, in recent years the people found out that Red Bull can be used as a very good mixer with alcohol. Red Bull sells now 34% of its units on premise. It is almost impossible to find the right target group, the reason for that is because of the various applications of Red Bull. Hence a clear cut categorization in age groups and socio-economics groupings is not feasible. But what we can be sure of is that the typical Red Bull drinker is dynamic and active, the gender does not play any role at all. But it is more likely that more less younger people who really like to go out fall for Red Bull. Research (PHT, 11/97 Smith Kline Beecham Energy & Sports Drinks Report) has shown that 53% of the people who drink energy/ sports drinks are within the age between 14-34 years. Moreover they found out that the main reason for purchasing energy/sports drinks were to quench thirst (37%) and give boost.


Some observers say that Red Bull's branding is evolutionary, calling it an 'anti-brand' strategy. The company faced additional problems in Pakistan where there were already many established drinks available.

The firm avoided usual methods of marketing , relying more on what is called 'buzz marketing' or word-of-mouth. A brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports, such as motor-sports, mountain biking, snowboarding and dance music parties. In other countries Red Bull's target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus spreading its 'left-field' appeal.
Red Bull then worked to ensure that their brand was visible on the street:

• Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle.
• Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly 'off-the-wall'.
• Cans of the drink were also given out free to people on the street who had been identified as being in need of energy
• Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs.

The company also set about promoting the Red Bull brand directly to Generation Y, the so-called 'millennial': people born after 1981 who were believed to be cynical of traditional marketing strategies . Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties (as if encouragement was needed!) at which cases of Red Bull would be distributed. The brand managers would then report back to the company, giving the firm a low cost form of market research data.

 

Ch.3 Ethics and Social Responsibilty

Red Bull, which distributes its product in aluminium cans sells more than 4 billion cans a year! That means a lot of aluminium cans are used to deliver the product in top quality to places all over the globe. Naturally, Red Bull’s production and distribution has an environmental impact. Red Bull is very aware of its environmental responsibility, and is constantly striving for improvement in this area, with the aim to keep environmental impact at an absolute minimum.


*Less energy and fewer raw materials-
Wall-to-wall production is just one of the ways in which Red Bull reduces its environmental impact. This kind of production dramatically shortens transport distances, resulting in lower CO2 emissions, in addition to other benefits. Increasing the can recycling rate not only cuts down on Red Bull’s usage of precious virgin raw materials, but saves on the energy needed to process these. Reduction of the can’s weight has also made a difference: the less aluminium goes into cans in the first place, the smaller the carbon footprint.

Red Bull environmental sustainability - can lifecycle
According to the company, Red Bull cans are the world's most recycled drink packaging.
Red Bull believes that part of its success lies in its efficient and highly modern production system. Taking an old can and using it again takes 95 percent less energy compared to using new aluminium and significantly reduces Red Bull's carbon footprint.

Using aluminium was a conscious decision from Red Bull for various reasons. Aluminium cans are oxygen-proof and neutral in taste, so the drinks retain their flavour for a long time. As aluminium cans are 100 percent recyclable, they can be melted down and reused an infinite number of times, saving a huge amount of cost and energy.

-With all the spare cans that the world has from the product, the company created a innovative nationwide movement which helps in thier recycling cause.

Red Bull Art of Can: Inspired Recycling

The Red Bull Art of Can is a nationwide hunt for creativity and is open to everyone, from full-time artists to anyone with a creative flair. Build, sculpt, weld, glue, hammer, bend, fold, print, tape and paint, whatever you like!
The Red Bull Art of Can offers a platform for anyone, regardless of age, who wants to explore his or her creative talent. Artists, students, grandparents and all those inbetween are invited to submit their works of art. The Red Bull Art of Can is a true expression of one's imagination, with little or no restrictions placed on the budding artist.
Your primary material must be a silver and blue Red Bull can (Sugarfree and Cola are also an option), but you will need to add plenty of imagination and creativity. Make a sculpture, a picture, a 3D model, a mobile, or a piece of modern art, but make it beautiful, colourful, clever, amusing or outrageous.

Chap. 2.Strategic Planning for Competitive Advantage

A thorough analysis of energy drink producer Red Bull concludes that the company was set up to market just one product, Red Bull. Eventually it started marketing a variety of slightly modified energy drinks. Now Red Bull is energizing people around the globe, touching down in over a hundred countries worldwide. The ambition of Red Bull is maintaining the
top-brand status in the energy drink market and clearly distinguishing themselves from their competition, who is marketing almost the same product against extremely low prices.
Red Bull uses every means of marketing to reach their target groups. Their marketing is mainly based on the “3 pillars of Red Bull; Sampling, Advertising, Sponsoring”. This means that next to normal advertisements, they drive around in Red Bull –modified cars handing out cans of red bull and sponsor big extreme sports events and competitions. In this way Red Bull is not just promoting their energy drink but is also selling a lifestyle, seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.
The Red Bull consumers can be divided into three segments: athletes, clubbers and workers. Each of these using the Red Bull energy drinks to meet their personal needs. Whether these are obtaining physical edges, mental edges or just consumption for pleasure.

SWOT Analysis

Strengths

• Market leadership- Within the energy drinks market Red Bull is the industry leader throughout the world. Marketing Efforts- a lot of promotions and well targeted campaigns and sponsorship e.g. formula 1 helps to expand Red bull brand and increase consumer brand awareness.

• Strong , fresh & fashionable brand identity.

Weaknesses

• Above-average prices.

• Lack of innovation- there are a lot of competitors in the market and they have their own USP which leaves Red Bull behind.

• Reliant on small product base- The company only markets one branded product, Red Bull Energy Drink (along with a sugar free variety).

• Lack of patent on RB ‘s recipe means anyone can copy it.

Opportunities

• Extension of product line- this will help to retain market share.

• Hardcore Advertising and Promotions.

• Consumer recognition through sponsorship of sports events.

• New ventures like partnership with Facebook.

Threats

• Health concerns- tougher rules from government on high caffeine content.

• Consumer awareness of health and well being- people may start to drink other alternatives as it is associated with healthier life style.

• Drinks might not be accepted in the new markets.

• Organic energy drinks might steal RB’s market share.

Misson Statement

'To Spread Our Wings Over The World'

Red Bull GmbH 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 efficent and profitable manner. We create a culture where empolyees share best practices, dedicated to coaching and developing our organization as an employer of choice.

Our mission is to be the premier marketer and supplier of Red Bull in Asia,Europe, and other parts of the globe. We will acheive this mission by building long-term relationships with the people who can make it become a reality.

Red Bull: A History

Red Bull is a energy drink sold by the Austrian company Red Bull GmbH. It was created in 1987  by the Austrian entrepreneur Dietrich Mateschitz, on market share Red Bull is the most popular energy drink in the world,with over 3 billion cans sold every year.. Dietrich Mateschitz was inspired by an already existing drink called Krating Daeng which he discovered in Thailand. He took this idea, and to suit the tastes of Westerners, modified the ingredients,and founded Austrian  Red Bull GmbH in partnership with Chaleo Yoovidhya. Chaleo Yoovidhya invented the Thai energy drink Krating Daeng, In Thai "daeng" means red and "Krating" is a reddish brown animal which is equivalent to a bison.Between 1984 and 1987, Mateschitz worked with TC Pharmaceutical (a Blendax licensee) to adapt Krating Daeng for European consumers. At the same time Mateschitz and Chaleo Yoovidhya, the owner of Krating Daeng, founded Red Bull GmbH; each investing $500,000 of savings and taking a 49% stake in the new company. They gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company. That left the Thais as silent partners. Red Bull GmbH launched the “Austrian” version of Red Bull in 1987, which is carbonated and not as sweet as the original Thai recipe. It is the Austrian  formula that has taken almost half of the U.S market for energy drinks;and up to 80% of the market in some other countries. Red bull is sold in a tall slim blue-sliver can while the Thai drink is sold in a gold can in parts of Asia. Both are different products and are sold  separately.  In 2010, more than 4.204 billion cans were sold in over 161 countries. 7,758 employees generated 3.78 billion euros in turnover. The headquarters of Red Bull GmbH are located in Fuschl am See,Austria.The Red Bull company also distributes and markets a number of other drinks including Simply Cola, the Carpe Diem range of herbal soft beverages and the Sabai Wine Spritzer.

Red Bull, being a market-oriented organization aims there product towards a specific group ( young urban professionals) by implementing many different marketing schemes/plans;example-Initially, Red Bull distributed free cases of the drink to college students in an attempt at viral advertising. This strategy was wildly successful, resulting in the rapid proliferation of sales