Red Bull marketing management mini case study analysis submitted to professor Sameer Mathur, IIM Lucknow

1. WE’LL NEVER KNOW OUR
FULL POTENTIAL UNLESS
WE PUSH OURSELVES TO
FIND IT
#GIVES YOU WINGS

2. Founded by Dietrich
Mateschitz in partnership
with Chaleo Yoovidhya
In 1987 in Thailand
Energy Drink Red Bull
first launched in
Austria in 1987
Inspired by existing
energy drink Krating
Daeng
ORIGIN

3. Uphold red Bull Standards
Maintain leadership position in
energy drinks category
Deliver superior customer
service
Highly efficient
Profitable
Manner
MISSION

4. IN 2015
5.96 billion cans sold
across 169 countries
Top markets include Turkey (+25%), Saudi
Arabia (+19%), South Africa (+19%), India
(+18%), Poland (+18%) and Germany (+16%).

5. MARKETING COMMUNICATIONS MIX

6. SALES PROMOTIONS
ADVERTISING
EVENTS AND EXPERIENCES
PUBLIC RELATIONS AND
PUBLICITY

7. Sampling in ideal usage conditions i.e. when consumers feel
fatigue or need a boost of energy e.g. concerts , festivals ,
sporting events.
Points of Purchase : Refrigerated sales units , attractive display
stands ensure a prominent location in every retail environment.
Red Bull Mobile Connect is a customer loyalty program that
allows Red Bull fans and customers to collect energy and use it
to exchange for prices.
SALES PROMOTION

8. Slogan- “Red bull gives you wings”
attaches the brand to high risk
adventures
Skilfully connect with youth around
the globe
Advertises to target audience in
engaging & provoking manner
Anti-traditional, spends next to no
money on TV, Radio or Print Media
ADVERTISING

9. Red Bull “Media House,” offers a wide range of media products and compelling
content throughout various media channels.
VIDEO of famous TV advertisement that expresses their slogan, “Red Bull Gives
You Wings,”

10. RED BULL AIR
RACE
Race series that has
airplane pilots flying at
speeds of 300 miles per
hour, 50 feet above
ground
X-FIGHTERS
A sport that combines dirt
bike riding with daredevil
maneuvers in the air
CRASHED ICE
A downhill race on ice
skates
EVENTS AND
EXPERIENCES
ALIGNS WITH EXTREME SPORTS, ATHLETES & ARTISTS
Sponsored events take originality and extreme sporting to the limit

11. Competitors attempt to fly
home-made, human-
powered flying machines
Attempt to stay true to
the brand’s slogan: “Red
Bull gives you wings”
Here’s a video giving a glimpse of Red Bull
Flugtag held every year
RED BULL FLUGTAG

12. PUBLIC RELATIONS AND
PUBLICITY
RED BULL STRATOS
Space diving project
involving Austrian skydiver
Felix Baumgartner
Live telecast
Generated positive publicity
for the event & Red Bull

13. WHAT ARE RED BULL’S GREATEST STRENGTHS AS MORE COMPANIES
ENTER THE ENERGY DRINK CATEGORY & GAIN MARKET SHARE?
WHAT ARE THE RISKS OF COMPETING AGAINST SUCH POWER HOUSES?

14. STRENGTHS
FIRST MOVER ADVANTAGE-Introducing the
first stimulant drink , Red bull could capture
a large market share.
BROAD GEOGRAPHICAL PRESENCE . wide
distribution centre reaches many
geographic locations to ensure consistent
sales and growth opportunities
Integrated marketing communications plan
reaches its target audience on many different
levels and builds its brand image of
authenticity , originality and community
Non-traditional marketing strategy-
Building buzz

15. RISKS
GROWING HEALTH CONCERNS: Relatively high caffeine & taurine content makes the brand
highly vulnerable to regulatory control
COMPETITION: “ MONSTER” represents biggest threat as it contains natural ingredients, which
seems more desirable than RED BULL
HIGH MARKETING COSTS: Maturity in developed markets makes promotion harder than before
LIMITED PRODUCT PORTFOLIO compared to rising no. of competitors bringing flavour variants
RED BULL’S recipe is subject to copy because of a lack of PATENT

16. DISCUSS THE PROS AND CONS OF RED BULL’S NON TRADITIONAL
MARKETING TACTICS?
SHOULD THE COMPANY DO MORE TRADITIONAL ADVERTISING? WHY
OR WHY NOT?

17. CONSPROS
Successfully connects with Gen Y
consumers.
Falls in line with company’s mission
to be- UNIQUE, ORGINAL,
REBELLIOUS
Enhances brand image
Sets brand apart from others
BUZZ MARKETING + SPONSORING
EXTREME SPORTS ->
CULT FAVOURITE AMONG
CONSUMERS
Premium product
Priced higher than the average
energy drinks price.
Employs traditional advertising
techniques to reinforce the brand to its
consumers, once the market has grown
mature.
Does not use this to establish the market
Marketing strategies are consistent with
the brand image.
THE COMPANY SHOULD NOT DO
MORE TRADITIONAL MARKETING

18. DISCUSS THE EFFECTIVENESS OF RED BULL’S SPONSORSHIPS.
WHERE SHOULD THE COMPANY DRAW THE LINE IN TERMS OF
NOVELTY AND RISK?

19. Red Bull should continue such sponsorships but should be more selective with sole
sponsorships of certain sports or events where the potential for casualty is high i.e. inherently
dangerous sports or events.
Place the brand at the forefront of the energy drink market
Tell the brand story in compelling, innovative ways
SPONSORSHIPS
Reinforce brand positioning as an edgy, lifestyle brand that believes taking
chances is worthwhile

20. SUMMARY

21. DISCLAIMER
Created by Anjali Verma , Ramjas College, University of Delhi, during a
marketing internship by Professor Sameer Mathur, IIM Lucknow