Red Bull Casestudy | Business Model | Marketing Strategies
Red Bull’s unique and creative marketing strategy
How did Red Bull get started?
Chaleo Yoovidhya, the founder of T.C Pharmaceutical, introduced a drink called Krating Daeng in Thailand in 1976, which means “red gaur” in English. It became popular among Thai truck drivers and labourers. While working for German manufacturer Blendax (subsequently acquired by Procter & Gamble), Dietrich Mateschitz visited Thailand in 1982 and met Chaleo.
Mateschitz discovered that ‘Krating Daeng’ helped him cure his jet leg while on his visit, and in 1984, Mateschitz founded Red Bull GmbH along with Yoovidhya and turned it into a global brand.
A partnership of Yoovidhya and Mateschitz funded the company by investing US$500,000. Yoovidhya and Mateschitz held 49 percent of the firm; Chalerm, Yoovidhya’s son, held the remaining two percent; but it was agreed that Mateschitz would run the company. The product was first introduced to Austria on 1 April 1987.
How Red Bull Has Developed Its Unique Marketing Strategy?
At the time Red Bull first entered the market, energy drinks did not exist, and traditional marketing was expensive. So, Red Bull decided to go rogue and utilize a different marketing strategy. To reach their target audience (18-35-year-old males), Red Bull went to college parties, libraries, coffee shops, bars, and other locations where those individuals frequent. By offering them free samples, the company put them right in their consumers’ hands.
They take themselves wherever their audience is, whether that means sponsoring a music festival or creating top-notch cultural content, they will do it. Even today, they adhere to a similar strategy: they go wherever their customers are. Red Bull’s content, in fact, is of the same quality as any professional publication. Rather than the other way around, they are a media company that happens to sell an energy drink.
Unconventional marketing strategies of Red Bull
Sponsorship of extreme sports
Unlike some energy drinks, Red Bull has stayed true to its slogan by sponsoring extreme events. By doing so, they enhance their brand awareness and imply that their energy drink gives you amazing, out of this world performance.
Ten years ago, they organized and sponsored an event called Stratos, where Austrian parachute jumper Felix Baumgartner took part and jumped from the edge of space in front of millions of people watching live from anywhere in the world.
This mission was an incredible feat – not only did it break multiple Guinness World Records, like registering the first freefall to break the sound barrier, but it was also a big boost for Red Bull Marketing.
While the estimated cost of the Marketing stunt was about $30 million, Felix’s jump led to breaking over $500 million in sales for the company. Talk about a good campaign!
Despite the estimated cost of the stunt being about $30 million, Felix’s leap led the company to break over $500 million in sales in less than one year!
Organizing and sponsoring such events is nothing new for Red Bull. In 2021, Dario Costa became the first person to fly aircraft through a tunnel, shattering the traditional notions of what is possible.
Excellent advertising strategy
Red Bull’s Marketing strategy lessons include their fun and humorous approach to advertising, They began with a series of distinctive videos with distinctive illustrations that always caught the crowd’s attention back in 2000.
Despite not seeing the logo or the company name until the end of each ad, people immediately recognized the advertisement as Red Bull. This shows the effectiveness of the brand awareness the company has been cultivating for decades.
A wonderful application of Guerrilla Marketing.
For those unfamiliar with the term, Guerrilla Marketing refers to the exploitation of clever and unique methods to increase sales or attract attention, generally utilizing one’s surroundings.
One of their earliest marketing moves was to hire the famous “Red Bull” girls to hand out free beverages to college students, who are part of one of their main target audiences – young people with a lot of energy.
As the students prepared for their exams, Red Bull was the first energy drink they thought of – a beverage that would help them stay awake and focused throughout a long night of learning.
Because this campaign was a success and increased their sales rapidly, Red Bull extended the campaign to other places, too. Since their target customers were 18 to 35-year-old males, they extended the campaign to college parties, coffee shops, libraries, etc.
An inspiring and extraordinary slogan
Red Bull has one of the most well-known and memorable slogans in the world: “Red Bull gives you wings”. Created in 1997, all the way up until today, it hasn’t changed at all, unlike many other brands who would occasionally change their slogans when rebranding.
An effective and consistent branding strategy
Red Bull Marketing isn’t just about individual events or actions, they have established a strong and coherent brand that made them easily recognizable throughout the world through their strong branding.
“Red Bull gives you wings” is the company’s famous tagline, and it has effectively positioned itself as the energy drink for males who live on the edge or who aspire to live that way.
With a consistent, clear and constant message, they reached their target audience very well. The message is simple: they target those who want to boost their focus and athletic performance.
What makes Red bull a powerhouse in marketing strategy?
1) One of their greatest strengths is their ability to captivate an audience with a story.
2) Secondly, they place content and value before their product.
3) Finally, one of the reasons why their marketing works is due to their commitment to the values and aesthetic that they established when they first began.
Marketing mix of Red Bull
(The 4 Ps)
Let’s review Red Bull’s marketing mix with a breakdown of their 4Ps (product, price, place, and promotion).
Its product mix differs from that of many other companies in the beverage industry in that Red Bull’s is quite simple. Although the company has launched multiple flavors, non-alcoholic mixers, and sugar-free versions of the original recipe, the primary driver of sales for Red Bull is the original. As consumers switch from carbonated soda to energy drinks, Red Bull has increased sales.
As the leader of the energy drink industry, Red Bull follows a premium pricing strategy for most of its products, although they still have to take value-based pricing into account when setting standard prices.
In 2020, Red Bull was sold in 171 countries worldwide and will have sold 7.9 billion cans. Easy accessibility is important to the company’s sales numbers, and its availability in supermarkets, convenience stores, nightclubs, and more have played a major role in the company’s worldwide success.
In addition to spending millions annually to drive awareness of its products and ensure their position as the preferred choice of energy drink consumers, Red Bull uses the tagline “Red Bull Gives You Wings” in most of its advertisements, which are usually shared digitally or broadcast on TV and streaming services. Besides traditional advertising, Red Bull sponsors and produces publicity stunts that appeal to young consumers, like Felix Baumgartner standing on his jump pad in the stratosphere before plunging far and faster than any human has ever done in full Red Bull gear.
What is the current market share of Red Bull?
The market share of Red Bull in 2021 was 23.3%. In the 52 weeks ending on May 16, 2021, Red Bull accounted for almost a quarter of all sales of energy drinks in the United States.
Who are the Founders of Red Bull?
Dietrich Mateschitz and Chaleo Yoovidhya are founders of Red Bull.
Who is the current CEO of Red Bull?
Chris Hunt – CEO of Red Bull U.S.
What is the current valuation of Red Bull?
The current valuation of Red Bull is 9.804 billion.
What is the revenue and profit of Red Bull?
In 2020, Red Bull’s global revenue amounted to about 6.31 billion euros worldwide.
Does Red Bull give wings?
The famous energy drink slogan “Red Bull gives you wings” doesn’t give you wings, after a US lawsuit, Red Bull has agreed to compensate customers who purchased the drink in the US between 2002 and 2014.
Does Red Bull contain Alcohol?
Red Bull Energy Drink is a non-alcoholic beverage. No specific scientific evidence has been found linking Red Bull Energy Drink to alcohol consumption.