Thursday, September 1, 2011

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

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