Contents0.0 Abstract 1.0 Introduction 2.0 History 3.0 Does Red Bull® Revitalise the Body and Mind? 3.1 What are the ingredients in Red Bull®? 3.2 Red Bull®’s adverse health effects 3.3 Has Red Bull® profited from controversy?
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4.0 Red Bull® a non-descript market?
5.0 How is Red Bull Marketed? 5.1 Sponsorship 5.2 Advertising 5.3 Brand Image 5.4 Some of Red Bull’s extreme sports athletes and events in pictures 6.0 Revolutionary Marketing 7.0 Maintaining market share 8.0 Competition and Intellectual property 9.0 Discussion 9.1 Diversification of product range 9.2 Drinks for the “Health Conscious” consumer 9.3 New Marketing Ideas 9.4
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(Kratin Daeng
[ca. 2008]) Dietrich Mateschitz (Gschwandtner 2004).
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The iconic eye-catching logo and slogan “red bull gives you wings” were then designed (Gschwandtner 2004). By 1990, despite high sales figures, and a lot of promotion, Red Bull®’s finances were in the black. To this point, funding had been 90% equity from the two partners and 10% bank loans (Gschwandtner 2004; Dolan 2005). Ambitious Mateschitz now believed Austria too small a market for Red Bull®. In 1993, Red Bull® moved into such countries as Hungary and Germany, planning to pre-market the little 250ml can by word of mouth across Europe (Gschwandtner 2004). Red Bull®’s Kraihamer commented, “We do not market the product to the consumer, we let the consumer discover the product first” (Keller 2004, p.119). This “Buzz” marketing proved highly successful, and inexpensive. Red Bull®’s controversial ingredients made it a “cool” fashion icon. Its mixability with vodka, coupled with extreme sports sponsorship, helped the drink tap into the young “hip” market (Cooney 2007; Gschwandtner 2004). By 1997, Red Bull® had conquered most of Europe including the UK. It then moved onto the USA, working state by state with a similar “buzz” technique (Hein 2001). Today Red Bull® is now Austria’s most successful brand, worth more than €10.9 billion, with diamond producer, Swartzkopf being worth half as much (Muller 2009). 3.0 Does Red Bull® “Revitalise the Body and Mind”? Red Bull® is billed as a
• Determine under what conditions each of the “energy drinks” might be useful to the consumer.
Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.
Ever since Red Bull entered the market in 1997, there's been a boost in the sales of these caffeinated energy drinks. These are marketed to increase energy, aid weight loss, improve stamina, concentration, and athletic performance, some even claim to give you superpowers. But not a slight hint is given to the consumers about the high caffeine amounts in them which can lead to serious consequences in both adults and
This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.
In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is
These manufactures will grab young people attention who are in need to increase and improve their concentration, reaction speed, and emotional state; but they fail to acknowledge the side effect of their products, such as being very tired after several hours of “sugar rush”. An over dosage of Red Bull cause a twenty-eight years old man to have a heart attack (Richards), this incidents is one of many that prove to us that this dangerous products should be banned from super markets and other easily accessed places for younger generation.
With countless reports of people being hospitalized after chugging down a Red Bull and other energy drinks, the company fails to warn possible customers of the energy drinks potential negative side-affects. And only focus on the glamorous up-side of Red Bull. By not telling the whole story, Red Bull Corporation trick anyone viewing ads about Red Bull. Which is especially important to note when most Red Bull consumers are teens and young adults. The negative consequences of drinking to many Red Bulls, are heart attack and comas to name a
This report was written to assess the company Red Bull and their energy drink Red Bull Energy Drink, in a manner in which the market/industry, environment, competitors, customers, and the brand were all analysed by using secondary research. A SWOT analysis was also conducted. Through this research and analysing, it was found that Red Bull is the dominating leader in the energy drink market and sells the most units of its product worldwide. However the company does have close competitors in Monster Energy Drink and Rock star Energy Drink. Although Red Bull has massive internal strengths in being leader in the market share and sponsorship of events, it also has weaknesses in lack of innovation and diversity. Their
Red Bull has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and
Based on data obtained from limited English sources dated 2005 to 2010, energy drinks have become more popular among teenagers and young adults (Rath, 2012). SixWise.com’s (2008) article “What is really in a hot dog?” provided evidence that just because the product is purchased by the public does not automatically mean it is beneficial long term (Wyrick). This new craze of energy drinks has the world consuming them at a staggering rate. The debates concerning the effects among energy drink consumption in all age groups are real and impacts most of us in some shape or form. Some people will argue there are benefits found in some of the ingredients that enhance the psychological and physiological mental and cognitive performances such as
Red Bull has a large market share in the energy drink market and it is one of the most popular energy drinks in the world, this may help us to increase the demand for the product and maybe develop a new product within the same brand.
If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).
Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")
Red Bull receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.
After seeing the success that Red Bull has got in the energy drinks market, new brands are entering this market. Hence, it is essential for Red Bull to make certain changes in its marketing, production and