It Gives You Wiings

Contents

Origin Growth Story Ingredients and Productlines. Competitive Analysis Different stratagies employed. Managing Integrated Marketing

Communications. The Mini Case Solution-kotler keller

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.

Growth story

It entered the United States via California in 1997

and 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.

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.

Product lines

Competitive Analysis

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

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.

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.

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.

Target ConsumerDemographics Psychographics Usage Behavior Consumption collection

Age: 16-29 Content

Image Conscious

Influenced

Spending Power

Youth trends

Physically Active

Eat Out Highly growing market

Different strategies employed

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.

Corporate StrategiesMission 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.

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.

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.

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.

Managing Integrated Marketing Communications

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 ensure activities is essential to ensure accuracy & relevance accuracy & relevance of the of the message. message.

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.

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.

Word of Mouth Marketing

Targets Opinion leaders Primarily by sampling its product and later encourage them to share their experience to followers .

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.

Some famous events

High credibility than Ads Reach hard to find buyers Create Public Awareness Challenge consumer

misconceptions. Media Relaitons.

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

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 ´.

Few Ad samples

Media Plan

TV: Still a staple medium of advertising. Allows to demonstrate the advantages

of RB. Good Reach.

Magazines: Economical. Provides higher brand awareness.

Evaluation & Control Metrics Campaign Element

MetricsNews Media No. of viewers of the articlesSocial 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.

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.

The Mini Case solution Kotler keller 14th edition

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

Overviewstrengths

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

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

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.

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?

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

REDBULL AIR RACE

ANNUAL FLUGTAG

BULL STRATOS

Sources

Images from Creative Commons http://www.rediff.com/money/2006/may/

24drink.htm http://www.thestudentroom.co.uk/

showthread.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

Summary

Origin Growth Story Ingredients and Productlines. Competitive Analysis Different stratagies employed. Managing Integrated Marketing

Communications. The Mini Case Solution-kotler keller

DISCLAIMER:

Created by Fayaz Ahamad, NIT Jamshedpur under the guidance of Marketing Professor Sameer Mathur, IIM LUCKNOW