This report is aimed at studying the marketing environment of Red Bull. It provides information obtained through research regarding their products, marketing strategies, their sustainability factors and how they impact the industry that they are in. This report will pay particular attention to strengths and weaknesses, opportunities and treats while offering some explanation for observed changes and also comparing the primary competitors and their marketing mixes. The report will cover aspects of where Red Bull is in terms of industry and how they have managed to grow and stay market leaders for a long time. The report will comment on the prospects of the company and make recommendations that would improve future sales.
Red Bull: How it all began!!
Red Bull being the most popular energy drink in the world sells 3.5 billion cans annually and has a huge fan following that makes them the market leaders for the functional food industry. They have achieved all this through some of the world’s best marketing and promotional strategies. They have gained popularity in the sporting, music and other events by using celebrities, massive sponsorships and a tagline that says it all, "Red Bull gives you wings.”[ Sheila Shayon . (2011).]
The Red Bull Story on how it all began is quite an interesting one! It all seems to have started from a mix of different cultures, a partnership that started by chance and an idea that was derived from the need to ‘stay awake’!
‘Krating Daeng’- which literally means Red Bull derived from the Thai Language. Dietrich Mateschitz, while on a trip to Thailand for his job to promote a brand of toothpaste, he found this formula helped with his jet lag. Mateschitz after meeting with Yoovidhya, discussed the potential of this product and partnered with each other to create and market a new brand of the same drink. They helped create a formula keeping Western tastes and regulations in mind by minimising the levels of animal based ingredients.[ Dindeo, Inc. . (2008-2013)] In Austria on April 1st1987, Red Bull was sold for the very first time as an Energy Drink. This marked the birth of a new product and also the making of a new product category. It also marked the rise of an industry that will later be called as functional foods. Today Red Bull is sold in more than 166 countries and more than 40 billion cans of Red Bull have been consumed so far. As of the end of 2013, Red Bull employed 9,694 people in 166 countries.[ www.redbull.com/au/en.]
Birth of a new Industry :
Before we go ahead and talk about where Red Bull stands in the energy drink industry, it is good to know about the industry itself. Energy drinks are defined as beverages that contain caffeine combined with other energy enhancing ingridients like taurine. It also containes calories and other vitamins that are vital for energy production in the human system. (Heckman, Sherry, & De Mejia, 2010). The same source of reference also positions energy drinks in the ‘functional’ category of drinks, (Heckman, Sherry, & De Mejia, 2010).
Now that it is known what industry Red Bull belongs to, lets take a quick look at how they adequately fit into the functional drink industry. According to an article in Nutrition Journal, Red Bull is the leader in the energy drink market (Malinauskas, Aeby, Overton, Carpenter-Aeby, & Barber-Heidal, 2007)
Red Bull basically dominates the energy drink market single handed even though they are a single and private company. They are the first company to produce and sell such a drink, which is why they are still the most famous amongst the lot.
Red Bull has created a trend and won the heart of many athletes and young individuals around the world. They have set trends and paved way for many other energy drink manufacturers who try to get as close as possible but, unfortunately, Red Bull will remain the market leaders for many years to come, thanks to their marketing strategies which…