1.

INTRODUCTION

Red Bull is an energy drink. Red Bull is an adaptation of

the Thai energy drink Krating Daeng, which translates as
"Red Bull". Based on market share, it is the most popular
energy drink in the world.[citation needed] The company was
founded by Thai national Chaleo Yoovidhya and Austrian
national Dietrich Mateschitz. Together with his son,
Chaleo owns a controlling 51 percent interest in the
company; however, Mateschitz is responsible for the
company's operations through the Austrian company Red
Bull GmbH.[1]

Dietrich Mateschitz
Red Bull's slogan is "it gives you wings" and the product
is aggressively marketed through advertising, tournament
sponsorship (Red Bull Air Race, Red Bull Crashed Ice),
sports team ownerships (Red Bull Racing, Red Bull
Salzburg, Red Bull New York) and celebrity
endorsements. In 2009 it was discovered that Red Bull
Cola exported from Austria contained trace amounts of
cocaine.[2][3][4][5][6] Red Bull has also been the target of
criticism concerning the possible health risks associated
with the drink.

Chaleo Yoovidhya
 2. History
Red Bull took many marketing and ingredient ideas from
an energy drink in Thailand called Krating Daeng
(Krating Daeng translates to "red bull" in Thai). Dietrich
Mateschitz, an Austrian entrepreneur, developed the Red
Bull Energy Drink brand. Mateschitz was the
international marketing director for Blendax, a toothpaste
company, when he visited Thailand in 1982 and
discovered that Krating Daeng helped to cure his jet lag.[8]
Between 1984 and 1987, Mateschitz worked with TC
Pharmaceutical (a Blendax licensee) to adapt Krating
Daeng for the European market.

Krating Daeng

At the same time Mateschitz and Chaleo Yoovidhya

founded Red Bull GmbH; each investing $500,000 of
savings and taking a stake in the new company. Chaleo
and Dietrich each held a 49% share of the new company.
They gave the remaining 2% to Chaleo's son Chalerm, but
it was agreed that Mateschitz would run the company.[9]
The product was launched in 1987, in a carbonated format
which is not as sweet as Krating Daeng.[citation needed]
Red Bull was launched in Hungary, its first foreign
market in 1992.[10] It entered the United States market (via
California) in 1997[10] and the Middle East in 2000.[11] In
2008, Forbes magazine listed both Chaleo and Mateschitz
as being the 260th richest persons in the world with an
estimated net worth of $4.0 billion.[12][13]
 3. PRODUCTS
A. RED BULL ENRGY DRINK

INGREDIENTS

i. TAURINE
Taurine is a conditionally essential amino acid which is
naturally occurring in the human body. “Conditionally
essential” means that in some situations or under certain
conditions, as for example, in situations of high stress or
physical exertion, increased amounts of taurine are
eliminated from the body and cannot be replaced by the
body in sufficient amounts.
Taurine is involved in vital functions of the human body.
Taurine acts as an antioxidant and has been shown to
promote detoxification by binding together with harmful
substances and thereby accelerating their excretion from
the body.
Taurine is also contained in different foodstuffs like e.g.
scallops, fish or poultry and is added to most baby food.
ii. GLUCURONOLACTONE
Glucuronolactone is a carbohydrate.
It is naturally occurring in the human body where it is
involved in detoxification processes, supporting the body
in eliminating waste substances from the body.

Glucuronolactone is also present in different foodstuffs

such as grain or red wine.
iii. CAFFEINE
Caffeine is known for its beneficial effects on mental and
physical functions. It has been shown to improve e.g.
reaction speed, alertness and concentration. Caffeine also
stimulates fat-burning during endurance activities and
thereby helps to use fat stores in the body which results in
a more efficient supply of energy.
Caffeine is contained in many foodstuffs such as coffee
tea or chocolate. One can of Red Bull Energy Drink
contains approximately the same amount of caffeine as a
cup of coffee.
iv. B-GROUP VITAMINS
B-group vitamins play an important role in energy
metabolism, such as the build-up and break-down of
carbohydrates, fat and protein. B vitamins are also shown
to support mental and physical performance.
v. SUCROSE
vi. GLUCOSE

BENEFITS
Red Bull Energy Drink is a functional beverage with a
unique combination of ingredients. It has been specially
developed for times of increased mental and physical
exertion.

Red Bull Energy Drink vitalizes body and mind.

Red Bull Energy Drink

- increases performance
- increases concentration and reaction speed
- improves vigilance
- improves the emotional status
- stimulates metabolism
Red Bull’s effects are appreciated throughout the world
by top athletes, busy professionals, active students and
drivers on long journeys.

RED BULL - MORE THAN JUST A MYTH

Red Bull is an Energy Drink that works.

Red Bull Energy Drink has always been and always will
be more than just a hot secret for the night owl and the
non-stop party-animal. It is appreciated by a wide range
of people, such as the overworked taxi driver, the stressed
manager, the exam-anxious student and the pressured
journalist…. It is used by surfers in the summer and
snowboarders in the winter.

For day or night, for job or fun. People who need more
energy learn to value Red Bull Energy Drink. And the
number of people who do is increasing all the time.
FAQ
1. WHEN SHOULD RED BULL ENERGY DRINK
BE CONSUMED?
Whenever you need to boost your energy or
concentration! To best feel its effects, you should drink it
at times of increased mental and physical strain, for
example, on long sleep-inducing motorways, during
intensive working days, prior to demanding athletic
activities or before tests and exams. It is recommended to
drink one can of Red Bull Energy Drink before the start
of a concentration task, the start of a race or game in
sports.
Since Red Bull Energy Drink has not been formulated to
deliver re-hydration, we encourage people who engage in
sports to also drink lots of water during intense exercise.
2. IS RED BULL ENERGY DRINK SUITABLE
FOR VEGETARIANS?
Red Bull Energy Drink is suitable for vegetarians. Red
Bull Energy Drink does not contain any animal products
or substances derived from animals.
3. IS RED BULL ENERGY DRINK GLUTEN
FREE, VEGAN, WHEAT FREE, DAIRY FREE?
 Yes, Red Bull Energy Drink is gluten free, vegan,
wheat free, dairy free!
4. IS TAURINE MADE FROM BULLS'
TESTICLES? IS TAURINE A DERIVATIVE OF
BULLS' TESTICLES OR SEMEN?
The taurine in Red Bull Energy Drink is a purely
synthetic substance produced by pharmaceutical
companies and is not derived from animals or animal
materials.
All ingredients for Red Bull Energy Drink are
synthetically produced by pharmaceutical companies.
This guarantees the highest quality.
RED BULL SUGARFREE

INGREDIENTS
TAURINE
Taurine is a conditionally essential amino acid which is
naturally occurring in the human body. “Conditionally
essential” means that in some situations or under certain
conditions, as for example, in situations of high stress or
physical exertion, increased amounts of taurine are
eliminated from the body and cannot be replaced by the
body in sufficient amounts.
Taurine is involved in vital functions of the human body.
Taurine acts as an antioxidant and has been shown to
promote detoxification by binding together with harmful
substances and thereby accelerating their excretion from
the body.
Taurine is also contained in different foodstuffs like e.g.
scallops, fish or poultry and is added to most baby food.
GLUCURONOLACTONE
Glucuronolactone is a carbohydrate.
It is naturally occurring in the human body where it is
involved in detoxification processes, supporting the body
in eliminating waste substances from the body.

Glucuronolactone is also present in different foodstuffs

such as grain or red wine.
CAFFEINE
Caffeine is known for its beneficial effects on mental and
physical functions. It has been shown to improve e.g.
reaction speed, alertness and concentration. Caffeine also
stimulates fat-burning during endurance activities and
thereby helps to use fat stores in the body which results in
a more efficient supply of energy.
Caffeine is contained in many foodstuffs such as coffee
tea or chocolate. One can of Red Bull Energy Drink
contains approximately the same amount of caffeine as a
cup of coffee.
B-GROUP VITAMINS
B-group vitamins play an important role in energy
metabolism, such as the build-up and break-down of
carbohydrates, fat and protein. B vitamins are also shown
to support mental and physical performance.
ACESULFAME K
Acesulfame potassium is a calorie-free artificial
sweetener, also known as Acesulfame K or Ace K (K
being the symbol for potassium), and marketed under the
trade names Sunett and Sweet One
ASPARTAME/SUCRALOSE
Sucralose is a zero-calorie artificial sweetener. In the
European Union, it is also known under the E number
(additive code) E955. Sucralose is approximately 600
times as sweet as sucrose (table sugar),[2] twice as sweet
as saccharin, and 3.3 times as sweet as aspartame. It is
stable under heat and over a broad range of pH conditions.
3:RED BULL COLA

The cola from Red Bull is a unique blend of ingredients,

all from 100 % natural sources.
In addition, it is the only cola which contains both the
original Kola nut and the Coca leaf. Therefore, it is a very
special recipe. Or what else would you have expected
from Red Bull?
The result is a natural, not-too-sweet cola taste, which
comes from using the right plant extracts.
INGREDIENTS
 Coca leaf
 Kola nut
 Lemon/lime
 Clove
 Cinnamon
 Cardamom
 Pine
 Corn mint
 Galangal
 Vanilla
 Ginger
 Mace
 Cocoa
 Liquorice
 Orange
 Mustard seeds
RED BULL COLA IS AVAILABLE IN THE
FOLLOWING COUNTRIES
AUSTRIA
SWITZERLAND
UNITED KINGDOM
ITALY
IRELAND
RUSSIA
USA
BELGIUM/LUXEMBURG
4: RED BULL ENERGY SHOTS

Red Bull Energy Shot is a concentrated Red Bull Energy

Drink in a 60ml bottle with the same functional
ingredients as in a Red Bull Energy Drink 250 ml can.
Red Bull Energy Shot and Red Bull Sugarfree Shot were
launched in the US as of April 2009, in Australia and
New Zealand as of August 2009 and in Europe as of
September 2009. Red Bull Energy Shots are meanwhile
available in Austria, Belgium, Canada, Croatia, Czech
Republic, France Germany, Hungary, Ireland,
Netherlands, Poland, Russia, Slovenia, Slovakia, South
Africa, Spain, Sweden, Switzerland, UK . More countries
will follow in the next couple of months. There is no
difference in the effect as both products, Red Bull Energy
Drink and Red Bull Energy Shot, contain the same
functional ingredients. While it delivers the same
functionality, Red Bull Energy Shot addresses additional
consumption occasions (e.g. when chilling a can of Red
Bull Energy Drink is not feasible, when wanting to limit
the intake of liquid).
Energy Drinks are classified as normal foodstuffs whereas
Energy Shots are generally classified as food
supplements. Food supplements are concentrated sources
of nutrients or other substances with a nutritional or
physiological effect which are designed to be taken in
measured small unit quantities. The Red Bull team
recommends 1 shot per day. Red Bull Energy Shot
provides Red Bull efficacy in one sip and no carbonation,
making it ideal for non-chilled, on-the-go consumption
occasions. And, besides fitting in your pocket, glove-box
or drawer, it also fits nicely into carry-on luggage as a
shot only contains 60 ml.
INGREDIENTS
TAURINE
GLUCURONOLACTONE
CAFFEINE
B-GROUP VITAMINS
SUCROSE 
GLUCOSE
ACESULFAME K
ASPARTAME/SUCRALOSE
BENEFITS
Red Bull Energy Shot and Sugarfree Shot are the perfect
answer for those times when you need sustained energy
for hours in a sip.
Their special formulation and unique combination of
ingredients have been developed to provide an extra boost
during times of increased mental and physical exertion.
Whether you’re a top athlete or a top executive, a truck
driver or a college student, Red Bull Energy shots can
help vitalize your body and mind.
Red Bull Energy Shot
- increases performance
- increases concentration and reaction speed
- improves the emotional status
- stimulates metabolism
Controversies
• Red Bull has recently faced much controversy in
regards to the health concerns associated with it.
• Due to the high levels of taurine and caffeine it
has been banned in countries such as; Denmark,
Norway, France, Uruguay and Iceland.
• It has been proven that caffeine can be deadly
when consumed in massive doses, but the
amount estimated to prove fatal is 10 grams,
which would require 125 cans of the drink.
• A study conducted in 2007 by American
researchers found that although consumption of
Red Bull could increase both blood pressure and
heart rates it was only dangerous for those
people with heart disease.
• Most claims about the dangers of Red Bull and
other energy drinks have been proven to be
nothing more than urban myths.
 MARKET SHARE

 
 
 

Market Share of Red Bull in the U.S. compared to other

similar products including; Monster, SoBe Energy
Rush, Full Throttle and Rockstar.
 Red Bull controlled approximately 60% of the U.S.
market in 2006 with 3 billion cans sold worldwide.
Red Bull has managed to maintain their strong market
share through advertising and heavy event sponsorship.
Red Bull® dominated the global market in 1987. By 2008
however, they still led with 29%, but energy drink
company Monster was catching up with 23% (The
Nielson Company 2009).
The next section explains how and why, it changed.
In 1987, UK Lucozade and USA Gatorade, although not
specifically energy drinks, crossed over into Red Bull’s
territory, having already been on sale for many years.
Equally,
Kratin Daneng held a market share in Asia, although not
in carbonated form. With over 228 brands listed in 2008,
the picture had become very different. Energy drinks were
an extremely complex market area. In can or re-sealable
bottled format, the sizes varied from the slim original
250ml, to the new 300ml and 680ml varieties. Products
now ranged from regular carbonated energy drinks
through to “Energy Shots” with 25 new versions in 2008,
natural organic non-carbonated forms, and aphrodisiac
drinks.
In 1997, Hansen Natural brought out Monster Energy,
using similar marketing techniques as Red Bull®. Its
tagline “Unleash the Beast” evokes a certain type of
consumer, together with its “Monster Army” of extreme
sports athletes and promotion through events strives to put
Monster on a level footing with Red Bull®. With a
similar calorie count, and blend of ingredients it
resembles Red Bull®, yet is double the size and half the
price, it was bound to sell well.
Coffee energy drinks recently entered the market, such as
SHOCK coffee. However companies including Red
Bull® had already tried similar products without success,
 The Marketing Strategy
Red Bull presents an image of a small, friendly
[Link] company spent $600 million, or 30% of its
revenue on marketing in 2004 whereas Coke spends 9%
of its revenue. This huge sum is spent on extreme sport
sponsorship, live events, and eye-catching design, with
less emphasis on media advertising (Gschwandtner 2004).
This section asks how and why they use these techniques.

SPONSORSHIP
Red Bull® sponsors over 500 extreme sports athletes
worldwide. Examples include Formula 1 Freestyle Skiing,
Break Dancing, and Free Climbing . Additionally, Red
Bull creates events filling every niche, from DJ battles,
Whacky Races, Air Shows through to Festivals.
In 2003, 200 million people watched worldwide as
B.A.S.E. jumper Felix Baumgartner leapt from a plane at
30,000ft above Dover with a carbon wing strapped to his
back. He flew the 22 miles across the English Channel to
Calais at an average of 135mph, setting a new world
record (Wyatt 2003). The stunt was not only a dig at the
outlawing of Red Bull® in France, but also a pre-
marketing strategy to create brand recognition and a“
buzz” about the product .
Red Bull® has tapped into the market of the rich and
famous by purchasing Jaguar and Minardi Formula One
teams in 2004 and 2005 (World Advertising Research
Center 2009). Costing over $100 million a year and
competing around the world, they race under the names
Redbullracing and Torro Rosso ([Link] [ca. 2009];
World Advertising Research Center 2009). With constant
media coverage, and cans of Red Bull® spotted in the
hands of celebrities and the logo splashed all over their
cars, Red Bull® wins even if the two teams lose!
The 5500m2 Hangar-7 in Austria diversified Red Bull®’s
influence. It is home to the 15 Flying Bull show planes, a
chic eatery, and art exhibition. By night, it transforms into
a nightclub, with Vodka Red Bull.
Dedicated pre-market research allows Red Bull® to tailor
events and sponsorship specifically to each
consumer group, state by state, country by country,
seamlessly
Some Of Red Bull Extreme Sports Athletes And Events
ADVERTISING
Simple, playful, nonsensical cartoons help market the
product at anyone with a sense of humour, regardless of
language, reaffirming Red Bull’s nebulous marketing
strategy Coupled with the tagline “Red Bull gives you
wiiings” a deliberate exaggeration, adding intrigue, it
makes the consumer eager to find out for themselves
BRAND IMAGE

Two red coloured bulls charging towards one another.

The small size of the can.

These could not be better connotations of strength (Keller
2004). The package
“says” it is a serious product, not to be taken lightly. The
Red Bull® cut-out in
the pull-ring adds class and interest, whilst the can’s
mixture of blue and silver portrays refreshment. The can’s
simple tagline “Revitalises body and mind” effectively
explains the content’s function in four simple words,
whilst remaining non-specific.
With its fingers in every pie, Red Bull® combines well
thought out brand image, playful advertising, media-rich
events and sponsorship not only to cultivate their edgy
image, but also to ensure every consumer can relate to the
product in some way.
Mateschitz admits,“...we don’t bring the product to the
people, we bring people to the product ...” (Gschwandtner
2004). Red Bull® wants consumers to embrace the
product and all its ideals, as he points out
“Red Bull isn’t a drink, it’s a way of life”(Kum ar, et
al.2004)

PROMOTIONS
The promotion strategy used by Red Bull is the so called
word-of-mouth or Buzz Marketing". This means that Red
Bull strongly relies on it's consumers to orally pass on the
quality and satisfaction of the product.

Reaching the youth is of great importance to Red Bull.

This is why many promotional jobs are offered to young
ambitious people which are very social and have
innovative ideas.
They drive cars with a big Red Bull can strapped on top,
cruise around campuses and offer free samples at parties
and often try to recruit   people for their promotion team
at universities, clubs, gyms or sporting events as young
and energetic people are found there underlining the
image Red Bull aspires. They act as "alpha bees," so if
they like the product, they will tell other people about it.

Red Bull did not stay at only sponsoring...

REVOLUTIONARY MARKETING
This section explores the revolutionary marketing
techniques Red Bull® uses to establish its brand.
The techniques developed out of a demand. In 1987, Red
Bull® could not be exported from Austria, as it was not a
European Union member state. EU law states that if one
country agrees to the sale of a foodstuff, it can be sold in
all EU countries. Each EU member state has a list of
allowable ingredients, and to Red Bull®’s dismay, taurine
was on none of them. Scotland’s allowed list did include
taurine, so Red Bull®’s first EU market entry was in 1992
in the UK via Scotland (Keller 2004). During the EU ban,
with demand high, individuals bootlegged the drink
across borders. Red Bull® was not actually on the “black
market”, but bootlegging did help their semi-legal image
(Keller 2004).
Red Bull®’s entry to the UK market was rocky. It was not
until 1995 that they made profit . Long established
Lucozade led the energy drink sector. Containing energy
boosting minerals and vitamins much like Red Bull®,
Lucozade’s use of“ energy” as part of its tagline obliged
Red Bull® to change to“ stimulant” instead of
“energy”, thus targeting a completely new
consumer (Gschwandtner 2004; Johnson
2002).
Red Bull® was sold as a sports drink, not the holistic
product seen in Austria. Instead of using the known“
buzz” marketing, Red Bull® sold through supermarket
chains and billboard advertising with a new tagline: “you
should
never underestimate what red bull can do for
you” .
By 1996, Red Bull® UK had an astronomical debt of £2.5
million . Their share of the
market only stood at 2% (Johnson 2002). As global
director Kraihamer portrays;
The UK team started from the wrong end ... they were
wrong, they totally misunderstood how to
create a customer base .
Firing the entire sales team, Mateschitz appointed an
Austrian director who increased marketing spending . The
slogan was changed back, and“ Buzz” marketing was
introduced. Teams of students were hired to tap into the
younger markets. Driving Mini’s with big Red Bull® cans
attached, they attended parties, and social gatherings.
 These “alpha bees” would be the
popular ones of friendship groups. If they liked the
product, so
would their friends, creating a“ buzz” about Red Bull®
(Gschwandtner 2004). This coupled with sponsorship of
extreme sports meant that between 1998 and 1999 profits
after tax went from £85,000 to £16 million (Red Bull
Company Ltd 2009).
A similar success story was of Kiwi, Joseph Roberts,
who, when on holiday in Slovenia, saw the opportunity to
market and sell Red Bull® back home. Out partying, he
decided he wanted a soft drink and stumbled upon a can
of Red Bull®. When the bar man refused to sell it
claiming it to be illegal, it made him want it even more.
Eventually, he spent no less than $150 on three cans!
Drinking just one, he realised its potential. A year on he
met with Red Bull® in Austria. On persisting, he gained
rights to sell the drink. Back in New Zealand, his
marketing strategy ensured Red Bull® turned up at the
right parties, bars, and shops. By playing the drink’s
illegal credentials, he used opinion leaders to create a“
buzz” about the product (Cooney 2007). Before he knew
it, he was rushed off his feet:
...We were delivering products from the back of our
cars ... at two three in the morning...
everybody had to do whatever it took... (Cooney 2007,
P.5).
“Buzz marketing” evolved during Red Bull®’s USA
launch in 1997. Organising sales, marketing,
and distribution from the Red Bull® North American
California HQ was impractical.
Instead, a structure similar to that of Red Bull® GmbH
split the USA into eight units covering a set amount of
states . Each unit organised sales, distribution, and pre-
marketing. This meant the“ buzz” was created even
before Red Bull® arrived. The “alpha bees” would poll
consumers’ interests, for Red Bull® to promote the drink
in the right places and sponsor the right events (Hein
2001).
Swot analysis
STRENGTHS
 Market Leadership-within the energy drinks
market Red Bull is the industry leader
throughout the world.
 Marketing Efforts-A lot of promotions and well
targeted campaigns and sponsorship e.g. formula
1 helps to expand Red Bull brand and increase
consumer brand awareness.
 Strong,fresh and fashionable brand identity.
 29% global market share selling in 70 countries.
 4 billion cans sold globally per annum
 High revenue as price is set 10% higher than normal
soft drink due to drink’s function adding value
WEAKNESSES
 Above Average Prices- Price is set 10% higher
than normal soft drink due to drink’s function adding
value
 Lack Of Innovation-There are a lot of competitors in
the market who have their own USP which leaves
Red Bull behind.
 Reliant On Small Product Base-The company only
markets one branded product,Red Bull Energy Drink
along with a sugar-free variant.
 Red bull product line is non-diversified
 Higher price than its competitors
 Red Bull® may have lost its “edge” as it is now
accepted as being “safe” by most governments.
 Lack of patent on Red Bull®’s recipe means that
anyone can copy it
 OPPURTUNITIES

 More sales as Red Bull®’s is “illegal” in EU

countries
 Increased turnover through diversifying product
range and expanding into new markets
 Consumer recognition through sponsorship of
extreme sports and events
 Emerging markets and expansion abroad
 New products. such as Red Bull & vodka, Red Bull
Tea, Red Bull tablets... and so on.
 THREATS
 Consumer might not pay 10% higher as they do not
see drink’s added value
 Competition stealing market share.
 Drink not accepted by new markets
 Economic slowdown
 European Laws against Vitamin/mineral enriched
products, like in Denmark and France
 Lower cost competitors or imports
 Declining growth energy drink market