Project Report

on
Marketing strategies of Red bull
Submitted in Partial Fulfillment for the Degree of

Bachelor of Business Administration .

S.S. JAIN SUBODH P.G (Autonomous) COLLEGE JAIPUR

(2018-19)

SUBMITTED BY SUBMITTED To
Harsh phalor Faculty Guide
B.B.A. V Sem.
 TO WHOM SO EVER IT MAY CONCERN

This is to certify that _________ (Name of the Student) student of BBA V Sem from
S.S. Jain Subodh P.G.(Autonomous) College; Jaipur has successfully completed his 45
days project training in our organisation.

His research is very beneficial for the company. His work was excellent. We wish all
success for his future endeavours.

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S.S.Jain Subodh P.G.(Autonomous)College
Jaipur
 DECLARATION

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__________________________________________(Title of the project) is a
bonafide record of work done by me during the course of summer project work and
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S.S. Jain Subodh P.G.(Autonomous) College
Jaipur
 ACKNOWLEDGEMENT

It is not often in life that you get a chance of appreciating and expressing your feelings in
black and white to thank the people who have been a crucial part of your successes, your
accomplishments, and your being what you are today. I take this opportunity to first of all
thank the Faculty at S.S. Jain Subodh P.G.(Autonomous)College, especially Dr.
K.B.Sharma, Principal, and Dr. Rita Jain for inculcating and instilling in me the knowledge,
learning, will-power, values and the competitiveness and professionalism required by me as
a management student.
I would like to give special thanks to Dr./ Ms/ Mr. -------------------- (Faculty Guide) for
educating me silver lining in every dark cloud. Her enduring efforts, guidance, patience and
enthusiasm have given a sense of direction and purposefulness to this project and ultimately
made it a success.
I express my sincere and heartiest thanks to everyone who has contributed towards the
successful completion of the Project, undertaken by me at -------------------- (Name of the
Training Oraganisation).
Last but not the least; I would like to thank my family: my parents, for supporting me
spiritually throughout my life.
The errors and inconsistencies remain my own.

INTRODUCTION
Red Bull is an Austrian company created in 1987 and its main activity is the production of energy drink.
Nowadays, Red Bull can be called as a pioneer in the energy drink category
worldwide and is also considered the most popular energy drink in the world, with
more than 5 billion cans sold in 2012.

Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red
Bull in the mid 1980's. He was inspired by a pre-existing energy drink which was
invented and sold in Thailand. He took the idea of modifying the ingredients and finally founded, with a
partnership, the Red Bull company in Austria. This was not only the launch of a completely new product, in
fact it was the birth of a totally new product category. Today Red Bull is available in more than 165
countries and more than 35 billion cans of Red Bull have been consumed so far

The Red Bull company slogan is "Red Bull gives you wings” and it is synonymous of energy and power
basically. The plan of the firm is that the product should be marketed through advertising, events, celebrity
endorsements, music and generally through extreme sports team ownerships like FC Red Bull Salzburg, Red
Bull New York or Red Bull Racing.

One of the negative facts of the company, is that Red Bull energy drink has been criticized in many aspects
for its marketing with extreme sports videos and events, including those of at least six fatalities because of
the extreme sports that Red Bull promotes. On the other hand, Red Bull was also criticized for health risks in
the past. However, the European Food Safety Authority concluded that the levels of taurine and
glucuronoalactone used in Red Bull and other popular drinks are safe. Even though, Red Bull has a
successful production with an assessed market share of 29% of the global market energy drinks and in the
US, the firm enjoys a 47% share of the energy drink market.
In order to understand the company’s market strategy and campaigns one must understand the company’s
target audience, the important role it plays and how it reaches that target audience. According to Numerator,
the target audience of Red Bull is predominantly between the ages of 18 to 34 year old, both male and
female, who have an average to high income, likes sports, extreme sports and athletic events. Their
customers can be defined as young, independent professional with big dreams and aspirations. Relevant
information is also collected through customer surveys, field trials and focus groups, with the company
ensuring that its buyer profile is consistently updated. This ensures that their strategies continue to be both
relevant and effective at all times. Red Bull focuses on three significant tactics to attract its target audience:
 Publishing quality content that is created by the marketing team in different media outlets that is
consumed by their target audience.
 Red Bull produces large scale publicity stunts that grabs attention of its audience and spreads the
message of the products or company.
 One of the most important tactic used by Red Bull is to sponsor and create events in various
countries so it attracts its young audience.
Red Bull is manufactured in various locations, depending on the geographies and cultures it is
catering. Countries have varying regulations regarding caffeine, sugar, and additives per liter, so
Red Bull must adjust accordingly.

Red Bull consists of the following ingredients:

 Caffeine – Caffeine is known for its stimulating effect on psychological and physiological
functions. Did you know that the amount of caffeine in one Red Bull matches the amount of
caffeine in one cup (250 ml) of coffee?
 Taurine – Taurine is an amino acid which is naturally occurring in the human body. It is
found in high concentrations in muscle, brain, heart, and blood. Taurine is also contained in
different foodstuffs like scallops, fish, poultry, and baby food.
 Glucuronolactone – Glucuronolactone is a metabolite of glucose naturally occurring in the
human body.
 B-group vitamins – The B vitamins contained in Red Bull are B6 and B12. These vitamins
are thought to support mental and physical performance.
 Sucrose & glucose – The combination of sucrose and glucose gives you both instant and
longer lasting energy.
 Alpine spring water – The water used for Red Bull is fresh alpine water of the best quality,
which comes from springs nearby the production sites in Austria and Switzerland.
Aluminium is used to pack the ready drink. The company is justifiably proud of their modern
cans since they are 60% lighter than a decade ago, thus making them easy to be carried and
transported. Not to mention, aluminium cans are virtually unbreakable! Their durability is not
only useful for transport, it also makes them safe and convenient for activities and events.

Beverage cans are also ideal for transportation and stocking. Thanks to their compact and
efficient form, they use about 40% less transport space than glass bottles and 30% less than PET
bottles. Red Bull practices a so-called wall-to-wall production – this means their cans are fully
recyclable, and in such way that not a single gram of aluminium is wasted. This wall-to-wall
production saves more than 5,313 tons of CO2 emissions each year.

International Expansion in the 1990s

Red Bull's distribution expanded into neighboring countries Hungary and Slovenia in 1992. Red Bull was
introduced in Germany in March 1994. By June, it was claiming a quarter of the sports drink market there,
reported the Associated Press, putting it ahead of Gatorade. It was priced about three times as much as a can
of Coca-Cola. Red Bull was introduced in the United Kingdom in 1994 and marketed there as Red Bull
Stimulation after 1996.

Red Bull entered the United States in 1997, focusing at first on four western states: California, Oregon,
Texas, and Colorado. It was marketed to Americans as a non-corporate alternative to Coke and Pepsi, and
both packaging and pricing helped set it apart. The drink was sold in unique, narrow 8.3-ounce cans for $2 a
pop.

Red Bull associated itself with the nascent extreme sports movement. The company sponsored
snowboarding and freeskiing contests and Flugtag, a homemade flying machine challenge (Mateschitz was
an enthusiastic collector of vintage aircraft).

While Red Bull had appealed to athletes and, in the United States, tired white collar workers, the real story
of Red Bull's growth lay in the promise of further endurance at clubbing, giving it a special appeal for young
people exhausted from working hard all week. The Los Angeles Times reported that the beverage appeared
to glow green under the fluorescent light of nightclubs. The drink became a very popular mixer, especially
with vodka. Red Bull deepened its involvement with the club scene by sponsoring a month-long school for
deejays in New York City called the Red Bull Music Academy.

Worldwide sales were logged at 300 million cans in 1998 by Beverage World. By the end of 1999, Red Bull
was sold in more than 50 countries, and sales estimates varied between 600 million and one billion cans
worldwide. Red Bull led the energy drink category in the United States and the United Kingdom, where it
displaced the venerable Lucozade brand owned by pharmaceutical company SmithKline Beecham (later
GlaxoSmithKline).

The company promoted the lift the beverage offered with the slogan "Red Bull gives you wings."
Traditional advertising was limited, as the company focused heavily on getting product samples into the
right hands. The company sometimes put up edgy, graffiti-style billboards. In the late 1990s, Red Bull
produced animated TV ads for mature markets.

By this time, Red Bull GmbH was the most highly valued company in Austria, worth about $11 billion
according to one estimate. This made Mateschitz, with his 49 percent holding, the country's richest
individual.

Continued Success in the 2000s

Mammoth beverage marketers such as Coca-Cola Co. and Anheuser-Busch were pouring out new drinks
designed to capture a share of the success of "cult" energy drinks, a $300 million market. PepsiCo acquired
South Beach Beverages, maker of the SoBe brand, in 2000, and Quaker Oats, owner of Gatorade, the next
year. Liquor distributors were also eyeing Red Bull's share of the mixer market, introducing pre-mixed
premium drinks such as Smirnoff Ice. Former Red Bull employees launched a competitor, Roaring Lion, in
2001, its marketing and distribution tailored for the nightclub market.

Red Bull sued a number of bars for surreptitiously substituting knock-offs when customers ordered mixed
drinks specifying Red Bull. Red Bull's Australian distributor rolled out its own competing beverage called
LiveWire. A court later found Sydneywide Distributors copied Red Bull's packaging too.

Key Dates:
 1982: Dietrich Mateschitz samples Krating Daeng, a Thai energy drink.
 1984: Beverage producer Red Bull GmbH is founded in Austria.
 1987: Red Bull's product begins sales in Austria.
 1992: Red Bull GmbH expands to its first foreign markets.
 1997: Red Bull enters the U.S. market via California.
 2003: Red Bull Sugarfree is introduced. closely. The Bangkok Post reported that more than a
hundred other brands had tried to copy Red Bull's formula in Europe.
 Red Bull made its first forays into the southern hemisphere, via South Africa and Brazil, in 2001. In
October 2002, Red Bull opened a regional headquarters in Dubai and was planning to build a plant
there as well. Red Bull's worldwide sales were estimated at EUR 1.4 billion ($1.32 billion) in 2002.
 Much of Red Bull's success in the United States can be attributed to the dedicated, one-brand
distribution network operated by the company. Mateschitz set up a separate company to develop and
market other drinks, including LunAqua, a New Age brand of water bottled during full moons. A
sugar-free version of Red Bull was rolled out in January 2003.
 2. Profile of the company
Overview of the energy drink industry

Energy drinks are part of the broader soft drink category, which includes carbonated beverages, fruit and
vegetable juices, bottled water, sports drinks, beverage concentrates, ready-to-drink tea, and ready-to-drink
coffee. According to experts, energy drinks are the most popular supplements for teens and young adults in
the United States along with multivitamins. The majority of these drinks are consumed by men between 18
and 34.

Global energy drink sales reached $57.4 billion in 2020. The industry is expected to grow by a compound
annual growth rate (CAGR) by 7% between 2020 and 2025. This growth is attributed to rising incomes and
an increase in sports activities and urbanization. A greater network of channels through which these drinks
are sold, including supermarkets, convenience stores, and e-commerce sites, is expected to help fuel sales
growth in this industry.

North Americans consume more energy drinks than any other geographic market in the world. But research
shows that the Asia-Pacific region is expected to be one of the fastest-growing markets for the industry,
thanks to more disposable income and changing demographics while marketing efforts by the industry in
Europe will help it grow between 2020 and 2025.

The Global Energy Drink Market was valued at USD56.67 billion in 2026F and is expected to grow at an
increasing CAGR of over 7.24% during the forecast period. The Global Energy Drink Market is driven by
the increasing population and the demand of people towards flavored and energy-boosting drinks.
Additionally, growing popularity among consumers for energy drinks, and surging disposable income of
consumers are expected to elevate the demand for energy drinks thereby driving the market growth through
2026F. Owing to rising customer health consciousness and hectic lifestyle, the industry is expected to
experience fast growth. The main purpose of these drinks is to provide instantaneous energy, along with
psychological and physical stimulation. In addition, taurine, another key component, is vital for the
upkeeping of cardiovascular function and the skeletal muscle. The market for energy drinks is driven by
rising health awareness and engaged routine coupled with growing customer knowledge about the fitness
benefits of the energy drink.

Energy drink consumption is increasing, particularly among young adults and athletes. These drinks contain
large doses of caffeine and other legal stimulants. Energy drinks first appeared in Asia and Europe in the
1960s; however, after the introduction of Red Bull in Austria in 1987 and U.S. in 1997, the trend towards
aggressive marketing of these energy drinks has grown tremendously.
The Global Energy Drink Market is segmented into product type, target customer, distribution channel, and
region. Based on product type, the market is further bifurcated into a non-organic and organic energy drink.
Out of which, the non-organic energy drink segment holds the majority of share with 72.57% in 2020. This
is mainly due to the high initial market penetration. At the same time, the organic energy drink segment is
expected to be the fastest-growing product type as consumers are attracted towards organic energy drinks,
including fresh fruit extract that comes in several variants. The organic energy drink has low sugar or sugar-
free component for the adult people, keeping in mind problems like diabetes, etc. Growing consumer trend
towards the value of organic beverages in their dietary habits has had a positive effect on the industry's
demand for the segment.

Based on target customers, the Global Energy Drink Market is categorized into adults, teenagers, and
geriatric populations. Among these, the 'adults' segment accounted for the largest target consumer segment
with a market share of 56.39% in 2020, as there is a growing population of athletes and corporates that
consume these products for extra energy to increase their performance. This is expected to contribute to the
growth of these products in the future. The 'Teenager' category has been projected to observe moderate
growth and penetration in the Global Energy Drink Market.

The major players operating in the Global Energy Drink Market are Red Bull, Pepsi Co, (Gatorade) Nestle
S.A. (Milo), Monster Beverage Corporation, The Coca Cola Company (Powerade), Suntory Beverage &
Food Limited (Lucozade, V energy), Keurig Dr. Pepper Inc. (Venom, Xyigence Energy), AriZona
Beverages USA (Rx Energy), Campbell Soup Company (V8 Energy), National Beverage Corp. and others.
Major companies are developing advanced techniques and launching new low-sugar, fruit base energy drink
to stay competitive in the market.

The industry analysis

Forces Levels of Threat Explanation

Buyers Power Moderate Products with low switching
costs and experience oriented,
minute volume of purchases,
tiny size of buyers, irregular
purchases, more competition
or rival products with low or
nor functional distinction.
Rivals Threat High Developing company with
improving the market
share for each competitor.
Switching costs are very
 low, with many players in
the industry so every
industry have smaller
share of the pie.
Entry Threat Moderate Most beginners are
discouraged if there is
stronger brand in the
market e.g Monster or Red
Bull. No government or
authority restrictions on
entrance and product
function does not have any
patent. The company is
growing and profitable,
therefore, attracting new
investors to the industry.
Threat Substitution High High price of energy
drinks, low switching cost,
and health concerns. Also,
there is brand loyalty as
well as experience that
substitute the lack
Supplier Power Low Production requires
undifferentiated raw
materials and we assume
that purchase are made in
bulk.
Profile of the company

Red Bull is an energy drink brand that is locally sold by the Austrian Company called Red Bull GmbH and
was developed back in 1987. Being the highest-selling energy drink as well as a famous brand all over the
world, Red Bull have gathered enough reputation in the world market. It was founded by Dietrich
Mateschitz, who modified a functional tonic he found on his visit to Asia to match the western taste. He did
all this since he wanted to establish a drink, which did quench not the only thirst but also had some
functional benefits (Red Bull, 2013). It was with the core foundation of this drink that Mateschit developed a
company which is now the world-known for producing the best energy drink and worth Billion dollars
(Zenith International, 2012). Therefore, Red Bull is a titan of energy drink industry and have managed to
establish, grow and dominate into a lucrative new niche in the drinks market right under the traditional
sector like Coca-cola.
The company has increasingly targeted the growing and competitive market for energy drink since their
market has started to decline (Zmuda, 2014). The drink brand itself is incredibly fascinating and of course,
developed upon associating itself with the myriad of teams’ people and events, which makes it more
recognized for its value instead of its product. This triggers the need to explore and implement various
marketing strategies, a with a primary aim of increasing the entire sales of the brand. Currently, the
company has a decision to venture this brand into diversified regional markets
Red Bull is a leading brand, especially among the functional drink segment faced severe issues since it lost
some market shares regionally to the competitors. The company management was by then unsure on the
future development, growth, and diversification of Red Bull. The entire administration including the board
of directors even tried to maintain the premium brand image and reputation of Red Bull. However, the brand
was more diluted, especially in the distribution channel. Therefore, our opinion in this report is that the
entire solution of this Red Bull nightmare lies in the hybrids of various marketing strategies. Marketing
strategies and management is a concept that has earned a fundamental concern with the nature of the
marketing program or else, the mix in concepts of marketing. According to the Journal of Marketing, which
was published by Yoram Wind and Thomas S. Robertson, marketing develops a strategy that depends on the
analysis of the competitors, consumers, and various environmental forces which are supposed to be
combined together with various strategic inputs including the human resource and financial. The primary
aim of this combination is to achieve the overall integrated business strategy.
Today, Red Bull dominates, with over 43% of the market share in 2015. They’re still going strong.
Considering Red Bull created the market in the first place, dominating just about half of it after nearly three
decades years isn’t bad.
Distribution Channels
As soon as the Red Bull cans are filled, they’re transported from Austria and Switzerland to 171 countries
worldwide. The cans travel long distances, whenever possible by ship and rail. Transportation by truck is
considered the last resort, used only when there’s no other means of delivery.

Customer Segments Served by Red Bull

The success of any product strongly depends on its customers. Like any successful company, Red Bull
aspires to hit the right customer in the right manner. According to recent studies, a portrait of the target Red
Bull audience looks as follows:
2.4 Competition information
Red Bull is operating in energy drink segment of soft drink market. It is differentiating itself with the
energy content that it is providing to consumers. This is responding to customer’s interest on well being
and performance. If we divide the soft drinks market, here are some basic categories.

Carbonated Drinks

Diet Drinks

Sports Drinks

Energy Drinks

Red Bull falls in energy drink category. Red Bull competes with other three categories indirectly. To
identify the strength and weakness of competitor’s top selling brand from each category is analyzed.

Competitor name Strengths Weakness

Coca Cola High Availability, Excellent High Carbon Di Oxide Content,
Distribution channel, Low Price, Not preferred by Health
Pepsi
Taste Good ,Variety in Flavour, Conscious, Imaged as non-healthy
Variety in Size, High drink
Mirinda
Advertisement
Sprite

Limca

Fanta

Thumsup

Diet drinks:

Competitor name Strengths Weakness

Diet Coke Medium Availability High Carbon Di Oxide Content
Doubts on Actual Results
Diet Pepsi Good Distribution channel

Medium Price

Taste Good

Variety in Flavour

Variety in Size
 Health Conscious

Sugar Free

Low Calorie

Sports drinks:

Competitor name Strengths Weakness

Gatorade Medium Price Poor Taste

Lucozade Sport Variety in Flavour Low Availability

Variety in Size Weak Distribution Channel

Health Conscious Moderate Taste

Athlete Drink

Energy drinks:

Competitor Name Strengths Weakness

Amul Stamina Health Conscious Poor Taste
Cloud 9 Athlete Drink Low Availability
Bling High Energy Content Weak Distribution Channel
X365 Keeps you awake Poor Taste
High Price
No Variety in size
No Variety in Flavour

Pepsi (KMX) and Coke (Adrenaline Rush) are the global energy drinks which have not yet made their entry
in Indian market. These potential competitors have huge parental advantage. Coke and Pepsi both have
excellent distribution network. Apart from distribution networks their spending on advertisement is huge
which may directly affect Red Bull in future. There is an additional advantage with Red Bull with
competitors. The energy segment is largely unknown in India at this point of time. The competitors spending
on advertisement will create a new market for energy drink which will increase the size of market as a
whole. During initial years with competitors it is more likely that the sales of each participant increases.
Apart from all these categories, there are some indirect competitors which threaten the Energy Drink market.
Tea, Coffee, Ready to Drink Juices, canned coffee products (Amul Café), Ready to drink milk also are
indirect competitors of Red Bull. Since they also serve the purpose of keeping one awake for some time,
these products are used by people because of their easy availability, low prices and ease to make at home.
These are the proxy products which eat into the market, but Red Bull is not directly competing with in the
market.
2.5 SWOT ANALYSIS
Strengths

1. Market Dominance: In the energy drinks sector, Red Bull dominates the US market and it is also
the global leader. With 7.5 billion cans sold in 2019, Red Bull has captured the largest global market
share. Dominant companies enjoy an unfair advantage over competitors. A major strength of the
company is its status and standing within the energy drink industry. Red Bull was the first energy
drink to be developed, sold and popularized in the West. This means that today, the Red Bull name is
synonymous with energy drinks in the cognition of consumers, in much the same way as Sellotape is
to sticky tape, and Hoover to vacuum cleaners. Analysts have described this as a “marketing
triumph” for the brand.
2. Diversified Portfolio: Although the company is best known for its energy drink, it is a
highly diversified conglomerate that operates in many other sectors. Red Bull owns and operates a
number of lifestyle magazines, covering issues such as motor racing, football and celebrity gossip. In
addition, the company has established mobile phone service operations in a number of nations,
including South Africa, Poland, Hungary, Belgium, and its home nation, Austria. In fact, the
company can be found in a number of sectors, from TV broadcasting, to youth academies and
football clubs. While most of its revenue comes from energy drinks, Red Bull is also engaged in car
racing, air racing, auto manufacturing and assembly, and arts.
3. Rapid Growth in Sales: In volume terms, sales are dominated by the US and North American
markets. Furthermore, growth in many overseas and emerging markets has outstripped overall
growth. For instance, in 2013, Red Bull reported that it had boosted net sales in the Indian market by
a massive 55 per cent. Growth was also robust in Scandinavia (16 per cent), Turkey (18 per cent),
Japan, (32 per cent), Russia (13 per cent) and Brazil (12 per cent).In 2019, Red Bull’s sales increased
by 37 in India, 30% in Brazil, 25% in Africa, 15% in Germany, 12% in Austria, 12% in Eastern
Europe, and 9% in the US. An increase in sales leads to an increase in revenues and profits.
4. Intensive Marketing: Another strength of the company lies in its marketing efforts. Red Bull has
pursued an entrepreneurial marketing approach, focusing particularly on sports events sponsorship,
like motorcycle racing. As well as enabling such events to survive and thrive, sponsorship offers
considerable benefits to sponsors like Red Bull. Event sponsorship is a key brand positioning and
image management activity; importantly, it enables companies to reach extraordinarily large
audiences that could not be reached through more conventional methods. The huge awareness and
press publicity created by event sponsorship means that this promotional method is able to target
both broad swathes of the population as well as specific target niches. The use of sport and
 innovative marketing and branding strategies [have been] integral steps in building the company into
one of the largest, most diverse sports empires worldwide.Red Bull’s marketing strategy is highly
intensive and exploits social media and sports. Red Bull Racing is the third-best Formula One Team
and also sponsors hundreds of athletes and teams across different sports.
5. Youthful Icon: Red Bull has nurtured its brand as youthful and exploits all mediums effectively to
entice youths from across the world.
6. Effective Supply Chain: It has developed a highly effective supply chain with reliable suppliers and
dedicated distributors. This has eradicated bottlenecks and ensured that raw materials are always
available, and products are sufficiently stocked in retail stores across the world
7. Global Presence: Another strength of the company is its presence across the world. Red Bull is sold
in 166 markets worldwide From America to Europe, Africa, Asia, and Australia, Red Bull operates
in different markets across the world. Having a broad geographic presence enhances stability and
fuels long-term growth.
8. Strong Brand: Since it was founded, Red Bull has been consistent in its positioning with the slogan
‘Gives You Wings,’ which is catchy and memorable. Over time, the company has nurtured a strong
brand valued at $9.9 billion and ranked #71 most valuable brand in 2019. Red Bull’s marketing
triumph translates to strong and rising net sales. Since the company is privately held, it is not
required to report its financial information, however, data is available for the period 2011-2013.
According to market research analysts Euromonitor (2014) during the period 2011-2012, net sales
grew by 16 per cent and the number of cans of the energy drink rose by 13 per cent. In the period
2012-2013, these figures were lower, at 2 per cent and 3 per cent respectively, but still reflect
significant levels of growth. In 2013 alone, Red Bull reported net sales of 5 billion euros.

Weakness

1. Lack of Variety: Regardless of the products being offered to the market, consumers demand

options. There are so many products Red Bull can offer like iced tea, fruit beverages, snacks, sweets,
and so on but the company insists on offering only two: sugar-rich energy drink and sugar-free
energy drink. The ability of the brand’s competitors to rapidly acquire market share within the
energy drinks market has also been attributed to their diversified product portfolio. Monster, a key
competitor, always offered a variety of flavours of energy drinks to consumers. Under the Monster
umbrella, there are more than 30 different brands, such as Rehab and Java Monster, and each of
these brands are available in a variety of flavors. Red Bull was slow to respond to this competitive
threat, taking almost 25 years to introduce three new Red Bull flavours
2. Offering Unhealthy Products: Consumers are more health-conscious and turning away
from sugared and unhealthy products. Unfortunately, Red Bull is resistant to change and still
depends on unhealthy energy drinks
3. Very Expensive: Products that have been positioned and marketed as premium with unreasonably
high price tags find it difficult to attract middle and lower classes. Also, it exposes companies to the
risk of losing customers and market share to new entrants with cheaper products
4. Difficulty in Enforcing Patent: Red Bull’s recipe is difficult to protect since the company did not
come up with the ingredients. Any company can create a product that closely similar to Red Bull but
with a slight difference in taste and get away with it
5. Declining in market share: In spite of consistent growth in terms of volume sales and corporate
value, Red Bull has experienced a decline in market share since 2009. This decline attributes to the
entry of new competitors to the market, as well as the international expansion of established brands.
6. Lack of production facilities: A further weakness of the company can be found in its production
methods. Analysts suggest that the company’s reluctance to extend its production facilities beyond
the Austrian borders act as a constraint on its ability to boost its production volumes. Although Red
Bull products are sold in 166 countries worldwide, all production occurs in Austria, which means
that the company must expend considerable shipping costs in exporting and distributing its offerings.
While it was reported in 2012 that the company was to invest in a new production facility in Manaus
(Brazil), there is little indication of this intention becoming reality in the near future.
7. Low market share in soft drink industry: Although Red Bull is the dominant player in the energy
drinks market, in the broader soft drinks industry, it is faring less well. Market share in the soft
drinks market is dominated by Pepsi Co, which claims 10.7 per cent of market share, and the Coca
Cola Company, which holds over 25 per cent. The dominance of these two companies in that
industry has traditionally posed a significant barrier to new entrants. In terms of market share, Red
Bull GmbH ranks seventh — a position it has held since 2008 — with just 1.6 per cent of the overall
global soft drinks market. A number of reasons have been advanced to account for the failure of Red
Bull to grow its market share in this market. Importantly, both the Coca Cola Company and Pepsi Co
have very strong brands and widespread and robust distribution networks.

Opportunities

1. Focus on Emerging Markets: The US and Europe are Red Bull’s major markets but are saturated
with numerous brands competing for market share. Red Bull can focus on emerging markets  in
Asia, Africa, and Latin America and benefit from growing middle-class, improved economic
situation, and unsaturated. There are opportunities also in the developing markets. For example,
market research agencies predict that by 2018, the Chinese market will lead in terms of value and
volume growth. Red Bull has already taken steps to capitalizing on this growing market. In 2013,
Red Bull entered into a subsidiary agreement with a Chinese manufacturer, launching an
international version of Red Bull energy into select urban areas. The company also established a
small office in Shanghai in 2014. This will support its expansionary efforts and enable it to become
acclimatized to the Chinese market.
 2. Extend Product Lines: Red Bull can extend product lines to offer more variety, new flavors, and
target a wider segment in the market. A key weakness of Red Bull relative to its competitors is its
failure to introduce alternative variants of its major product. There are some indications that the
company is using the new markets to test a diversification of its basic product portfolio. For example
in China, two versions of Red bull energy are sold — the standard blue can, which is sold
internationally, but also a gold can: a non-carbonated variant which was targeted at lower income
consumers. If this step at diversifying is successful, it could offer greater opportunities for growth in
the future.
3. Introduce Healthy Products: With the increasing number of health-conscious consumers, Red Bull
can invest more in R&D to attain and offer healthy products. This will enable the company to tap
into the increasing demand for healthy food and beverages.
4. Engage in Sports Fully: With years of experience in sports as a sponsor, Red Bull can expand into
sports for business purposes. For instance, it can focus on building Red Bull Racing into the best in
F1.
5. Increase in demand: The Asian Pacific market has recently surpassed North America in terms of
growth in sales volume of energy drinks. One of the reasons for this increased demand is the general
trend of that region towards increased prosperity: between 2008 and 2013, the region recorded
compound annual growth of 16.3 per cent, with China alone growing by a record 277 per cent.
Despite this, in terms of market share, the Asian Pacific market is still the weakest for Red Bull. An
opportunity for global growth is therefore available for the energy drinks giant in this market. This
may take some time, however, has there are some markets to which Red Bull energy has only just
entered, and it may take time for the brand to build its identity in that region

Threats

1. Tougher Regulations: The biggest threat to Red Bull is Red Bull itself. The ingredient mix that
their products contain is not FDA approved. On top that, government and scientists are finding that
high amounts of caffeine, sugar, and taurine are extremely unhealthy and potential fatal. France and
Denmark have gone to such measures as to ban Red Bull as a “cocktail of death.” High amounts of
sugar have been found to cause serious health problems. A small amount of taurine, which is still a
vastly unknown ingredient, is thought to be beneficial, but scientists are beginning to find health
risks it causes. Red Bull energy drinks also contain a highly dangerous chemical called
Glucuronolactone. The US Department of Defence developed this product during the Vietnam War
as a hallucinogenic drug to stimulate troops’ morale .Countries is struggling to manage the
prevalence of lifestyle diseases. In the future, governments can decide to pass tougher regulations
targeting products with unhealthy ingredients.
2. Growing Health-Consciousness: Like most energy drinks, Red Bull consists of unhealthy
ingredients, such as caffeine, concentrates, flavours, and so on. This makes the brand highly
 vulnerable to the ever-increasing number of health-conscious consumers. As more consumers opt for
healthier options like water, juice, and milk, Red Bull’s revenues and profits can decline.
3. Stiff Competition: When the Red Bull energy drink was first developed in the mid 1980s, it was a
unique product. Indeed, Red Bull has been described as the instigator of the entire energy drink
sector. However, more recently, its success has attracted interest from a number of key competitors,
especially Pepsi Co. and The Coca-Cola Company. The latter acquired a 16.7 per cent equity stake in
Monster Beverage Company in August 2014. This is an important strategic move, because through
this deal, TCCC expects to “transfer ownership of its worldwide energy business, including NOS,
Full Throttle, Burn, Mother, Play and Power Play, and Relentless, to Monster.” Coca-Cola and
Monster have already capitalized on their extensive distribution network to launch push ‘Burn’, a
direct competitor to Red Bull in emerging markets in Latin America, while in the US, another energy
drink produced by Monster Beverage Company, ‘Monster’ has now overtaken Red Bell in terms of
volume sales. The latter product is also enjoying huge gains in Eastern Europe, the United Kingdom
and Australia. Given the large number of markets in which the energy drink sector now has a
presence, the development of the Monster/Coca-Cola collaborative project should be considered a
significant threat to the dominance of Red Bull Apart from Monster, Red Bull is facing competition
from small companies that target niches with quality but cheaper energy drinks. If competition from
these companies increases drastically, Red Bull can lose its global dominance.
4. Replication of products has increased: Consumers all across the globe are drinking energy
beverages that taste and look just like Red Bull, mistaking them for the real thing. Red Bull’s
profitability will be threatened even further when more emerging economies gain the technology to
imitate valuable items.
5. Global Economic Crisis is on the Loom: Costly luxury items are the first to be removed from a
limited budget during times of economic crisis. With the approaching recession, Red Bull’s revenues
and profits are risked because its goods are high-priced luxury items. Another threat to the company
is posed by the decline of the North American economy, which has traditionally been the company’s
stronghold. That region’s Compound Annual Growth Rate (CAGR) – a measure of economic
growth- which was 9.9 per cent in the period 2008-2013, is expected to half in the period 2013-2018.
The likely outcome of a lower rate of growth is a reduction in consumer demand, especially for
premium priced products like Red Bull
6. Global Pandemic: Red Bull’s products are consumed in social gatherings like sports events and
parties. With the whole world practicing social distancing and sports events postponed until further
notice, the opportunities to sell products are most shut down.
7. Costs are going up – The ever-increasing operating expenses undermine profits, from rising raw
material costs to excessive marketing charges. The company also faces the law of diminishing
returns in marketing in its mature market, in that the cost to reach the relatively small number of
potential customers remaining in these markets becomes prohibitively high. The company invests
considerable resources in its relationship marketing, and this ongoing cost may also become more
onerous, should sales in its target market fall for any reason. Therefore the company faces the
potential of having high marketing costs leading to smaller sales despite its dominant position in
many markets.
3. RESEARCH METHODOLOGY
3.1.
WHAT IS RESEARCH?

The RESEARCH means the systematic investigation as well as the study of sources or material or
things so that the facts can be established or the conclusion can draw. So, it’s actually about finding the
truth through experiment or investigation using the scientific method.
According to the American sociologist Earl Robert Babbie, “Research is a systematic inquiry to
describe, explain, predict, and control the observed phenomenon. Research involves inductive and
deductive methods.”
Research Methodology

There has been an increasing competition on a company’s competency to provide high quality service.
Research is one of the greatest tools to succeed in a competition. Research is an integral part of any
business either for a profitable or non-profitable organization.
In other words, it’s a way to gather evidence for an organization. Research is one of the ways to gather
evidence for an organization or the ways of collecting accurate sound and reliable information about the
effectiveness of inventions, by providing the effectiveness evidence.
Methodology in research is defined as the systematic method to resolve a research
problem through data gathering using various techniques, providing an interpretation of data
gathered and drawing conclusions about the research data. Essentially, a research methodology is
the blueprint of a research or study.

TYPES OF RESEARCH

1. Qualitative research

It is a scientific method of observation to gather non-numerical data. This type of research refers to the
meanings, concepts, symbols, definitions and the description of things or not to counts and measures.
Qualitative research is defined as a market research method that focuses on obtaining data through
open-ended and conversational communication. This method is not only about “what” people think but
also “why” they think so.

2.Quantitative research

It is a structured way of collecting data and analyzing is to draw conclusions. This method uses a
computational and statistical process to collect and analyze data.

Quantitative data is all about numbers. It involves a large population more people mean more data. With
more data to analyze, we can obtain more accurate results. This method uses close-ended questions
because the researchers are typically looking to gather statistical data. Online surveys, questionnaires,
are preferable data collection tools used in quantitative research.

RESEARCH DESIGN

Research design is the framework of research methods and techniques chosen by a researcher. The
design allows researchers to do on research methods that are suitable for the subject matter and set up
their studies up for success.
There are three main types of research design: Data collection, measurement, and
analysis.

An impactful research design usually creates a minimum bias in data and increases trust in the accuracy
of collected data. A design that produces the least margin of error in experimental research is generally
considered the desired outcome.

Research design is broadly classified into five types are-

 Exploratory Research Design

 Descriptive Research design
 Experimental Research design

1. Exploratory research design

This research conducted for a problem that has not studied more clearly, or to develop operational
definitions and improve the final research design. It helps to determine the best research design, data
collection method and selection of data.
Explanatory design uses a researcher’s ideas and thoughts on a subject to further explore their theories.
The research explains unexplored aspects of a subject and details about what, how, and why of research
questions.

2. Descriptive research design

In a descriptive design, a researcher is solely interested in describing the situation or case under their
research study. It is a theory-based design method which is created by gathering, analyzing, and
presenting collected data. This allows a researcher to provide insights into the why and how of research.
Descriptive design helps others better understand the need for the research.
Descriptive research are those studies which are concerned with the characteristics of particular
individual. The aim is to obtain complete and accurate information in the studies, the procedure to be
used must be carefully planned.

3. Experimental research design

Experimental Research design establishes a relationship between the cause and effect of a situation. It is a
causal design where one observes the impact caused by the independent variable on the dependent
variable. For example, one monitors the influence of an independent variable such as a price on a
dependent variable such as customer satisfaction or brand loyalty. It is a highly practical research design
method as it contributes to solving a problem at hand.

Sampling Techniques

Probability: Sampling is the process of selecting a group of individuals from a population to study
them and characterize the population as a whole. The population includes all members from a specified
group, all possible outcomes or measurements that are of interest. The exact population will depend on
the scope of the study. The sample consists of some observations drawn from the population, so a part
of a subset of the population. The sample is the group of elements who participated in the study. The
sampling frame is the information that locates and defines the dimensions of the universe.

Simple random sampling

In Simple Random Sampling, each observation in the population is given an equal probability of
selection, and every possible sample of a given size has the same probability of being selected. One
possible method of selecting a simple random sample is to number each unit on the sampling frame
sequentially and make the selections by generating numbers from a random number generator.

Cluster sampling

Cluster sampling divides the population into multiple clusters for research. Researchers then select
random groups with a simple random or systematic random sampling technique for data collection and
data analysis.
Systematic sampling

In systematic random sampling, the researcher first randomly picks the first item from the population.
Then, the researcher will select each nth item from the list. The procedure involved in systematic
random sampling is very easy and can be done manually. The results are representative of the
population unless certain characteristics of the population are repeated for every nth individual.
Stratified random sampling

In Stratified random sampling, the entire population is divided into multiple non overlapping,
homogeneous groups (strata) and randomly choose final members from the various strata for research.
Members in each of these groups should be distinct so that every member of all groups get equal
opportunity to be selected using simple probability.

4.2.1 Non-probability sampling

Non-Probability samples are preferred when accuracy in the results is not important. These are
inexpensive, easy to run and no frame is required. If a non-probability sample is carried out carefully,
then the bias in the results can be reduced. The main disadvantage of Non-Probability sampling is
“dangerous to make inferences about the whole population.”

Convenience sampling

Convenience sampling is the easiest method of sampling and the participants are selected based on
availability and willingness to participate in the survey. The results are prone to significant bias as the
sample may not be a representative of population.
Judgment (or Purposive) Sampling

In Judgment (or Purposive) Sampling, a researcher relies on his or her judgment when choosing
members of the population to participate in the study. Researchers often believe that they can obtain a
representative sample by using sound judgment, which will result in saving time and money.

Snowball sampling

This method is commonly used in social sciences when investigating hard-to-reach groups. Existing
subjects are asked to nominate further subjects known to them, so the sample increases in size like a
rolling snowball. For example, when surveying risk behaviors amongst intravenous drug users,
participants may be asked to nominate other users to be interviewed.

Quota sampling

This method is mainly used by market researchers. The researchers divide the survey population into
mutually exclusive subgroups. These subgroups are selected with respect to certain known features,
traits, or interests. Samples from each subgroup are selected by the researcher.

DATA COLLECTION METHOD

SOURCES OF DATA

The research has made use of both primary and secondary data to arrive at necessary conclusion. The
primary data has been collected to analyses the quality of services being rendered. Secondary data has
been collected from various published and unpublished reports/ journals and books, etc.
PRIMARY DATA

Primary data is a type of data that is collected by researchers directly from main sources
through interviews, surveys, experiments, etc. Primary data are usually collected from the source—
where the data originally originates from and are regarded as the best kind of data in research.

The sources of primary data are usually chosen and tailored specifically to meet the demands or
requirements of a particular research. Also, before choosing a data collection source, things like the aim
of the research and target population need to be identified . Primary data collect information about past
conditions or behaviors. For this purpose, the most popular tool of primary data collection is through
direct communication with respondents.

Primary Data Collection Methods

1. Interview

2. Questionnaire and Survey

3.Observation

4. Focus Group

5. Experiment

6. Schedules

SECONDARY DATA

Secondary data are the other important sources through which the data are collected. Secondary data
refer to the data which have already been collected and analyzed by someone else. There are readily
available sources of the data where not to put much effort to collected, because it is already been
collected and part in elderly manner by some researcher, experts. It is a type of data that has already
been collected in the past.
A researcher may have collected the data for a particular project, then made it available to be used by
another researcher. The data may also have been collected for general use with no specific research
purpose like in the case of the national census.

Sources of Secondary Data

With the advent of electronic media and the internet, secondary data sources have become more easily
accessible. Some of these sources are

1. Text books like marketing management research methodology, advertisement and sales promotion,
etc.

2. Internet was made use for the collection of the data.

3. Newspaper were also referred.

4. Business magazines were referred.

5. From Published data including: Government publications, Public records, Historical and statistical
documents, Business documents, Technical and trade journals Unpublished data includes: Diaries,
Letters, Unpublished biographies etc.

Due to covid-19 pandemic it was difficult to collect the data from primary sources, therefore the study has
been concentrated towards secondary sources. Secondary sources of data used are journals, reports, search
engines, company websites and scholarly articles, research papers, and other academic publications.

3.4. Limitations of the study

1. There is possibility of errors in data because the analysis of the study was depended only on the
information available on the internet.

2. The collected information is insufficient due to lack of time.

3. The collected secondary data may not be genuine as the study is done in prevalent covid-19
situation which had never existed earlier

4. Less information was available which has reduced the research work.
ANALYSIS AND PRESENTATON

Internal analysis

1. Product:

Red Bull is a sweet and caffeinated drink that gives high energy to those who consume it.
The product is available in 250ml cans, 350ml bottles with 4 packs. This product is
principally offered in two flavors, even though now there are more flavors available in the
market. The energy drink contains taurine, caffeine, glucuronolactone and B vitamins.

Red Bull is a product that basically offers to improve mental and physical power. The brand name has been
promoting as a product to be used at any time including during sports, work, studying, and socializing.
Moreover, Red Bull promises to enhance the performance during increased stress and strain, increase
concentration and improve reaction speed and also stimulate metabolism in body, or more important, it
vitalizes the body and mind

2. Employees:

As of the end of 2012, Red Bull employed 8,966 people in 165 countries. Compared to the end of 2011
when we had 8,294 employees in 164 countries.

3. Company Growth

A total of 5.226 billion cans of Red Bull were sold worldwide in 2012, representing an increase of 12.8%
against 2011. Owing to higher prices as well as currency fluctuations, company turnover increased by 15.9%
from 4.253 billion euros to 4.930 billion euros. In terms of sales, revenues, productivity and operating profit,
the figures recorded were the best in the company's history so far. Such positive figures can be attributed to
outstanding sales in South Africa (+52%), Japan (+51%), Saudi Arabia (+38%), France (+21%), the USA
(+17%) and Germany (+14%), efficient cost management and ongoing brand investment.

4. Marketing Strategy

Event and sport sponsorship have been key elements for Red Bull’s marketing strategy for many years. Red
Bull has achieved remarkable global success and 30-40% of its sales are re-invested back in marketing and
promotional activity. Red Bull’s strategy has historically been a 3-pronged approach incorporating buzz
marketing, sponsorship and TV advertising. Buzz marketing, including handing out free samples at
campuses and events where under 30s gather, is often used as a way of initially raising consumer awareness
when entering new markets.

In 2012, the company took its marketing literally to an entirely new level with the Stratos campaign which
featured Felix Baumgartner in a record- breaking 128,000 feet jump from the earth’s stratosphere, making
him the first man to break the speed of sound while in freefall. The event was streamed live on line with
viewers able to log in to post comments via Twitter and Facebook. Motorsports is another key focus for the
company with its own very successful F1 racing team.

Red Bull has implemented its own marketing strategy and it is basically summarized in three main
strategies:

 Brand Name: The main idea of marketing strategy for this company is to increase the brand name
by developing an image of power, speed and energy. In order to increase that image, Red Bull
focuses its strategy by expanding the brand name in other sectors, especially in extreme sports. In
this case, it is important to remark that Red Bull doesn’t promote specially the can of energy drink
but also concentrates its marketing strategy to link the brand name with power and energy needed to
practice risk sports.

 Price: By looking at the pricing strategies, the energy drink is marketed as a premium product. It
means that even the competitors established a lower price, consumers generally prefers to consume
Red Bull because of the brand name even that the price is higher than the others in the market of
energy drink.

 Location: Red Bull has been able to identify and maintain his status by adopting detailed and
effective sales strategy by identifying key areas such as bars and clubs which has helped to increase
brand visibility.

 Differentiation: On the other hand, in the last years Red Bull introduced new products into the
market in order to differentiate from the competitors. In this case, the strategy is to offer an energy
drink but with different flavours, without sugar, zero calories, etc.

5. Target market segmentation

Market segmentation for Red Bull consists of a young age group to people from 15 to 30 approximately. It is
segmented to that group because young people are especially open to determined exhaustion and insufficient
energy. It also is segmented to male teenagers and young
people that are most likely to believe in the authenticity
of the energy drinks. Finally, it is also destined to very
specialized groups such as gamers, extreme sports
enthusiasts, risk takers and all the people linked to
extreme sports.

It is also important to remark that recent studies indicate that 65% of the energy drinks market consists of
male consumers.

External Analysis
1. Environment
Economic
Rising disposable incomes encourage premium purchases
Major soft drink manufacturers have been attracted to the sports and energy drink market partly by the
premium prices that currently exist for these market products.

Political
Bans from EU countries
No regulation on labeling of such drinks
Age limits should be set on purchasing
Health risks associated with Red Bull

Social
Negative health concerns
Longer working hours, increased road traffic, more need for energy boost
Increasing consumer concern around diet and personal health
Technological
Improved manufacturing techniques and processes could lead to lower prices
Innovation within the market—new products—looking for ultimate hangover cure

2. MARKET
LIFE CYCLE
 Red Bull is currently in the Maturity stage.
o The company has began to differentiate its product due to the large increase in substitutes
o Much larger emphasis on brand loyalty
Growth figures are slowing down as the product ages (exception with 2011 where growth nearly tripled
from the previous year).
A. Distribution Channels

 To ensure quality Red Bull manufactures and packages all of its products by itself
 The company does not license out or franchise their name
 All for quality control.
 Red Bull sells its product through the sectors mentioned above.
B. Supplier-Retailer Relationships
 Red Bull has recently instituted a new program, called Perfect Partnership, for retailers that
help grow the Red Bull brand, for retailers that help grow the Red Bull brand.
 Retailers will be rewarded based on the amount of Red Bull sold, the visibility of the product,
the percentage of Red Bull in the store as compared to the rest of the energy drinks, and
product placement.

3. COMPETITION

I. Industry Competitors and Extent of Rivalry: Low

 Red Bull has turned their niche market into a mass market and a regular buy for people around
the world.
 Its brand familiarity has given them a key source of competitive advantage.
 Differentiation by Lucozade (another popular energy drink that is trying to enter the market) is a
strategy being used. They are becoming direct competition adding caffeine into their drink
making it a stimulation drink.
  Red Bull has secured distribution channels that make it hard for competitors to enter the market.
 Red Bull has a very loyal customer base, and it’s own research shows that 40% of its customers
would go to another store to find Red Bull if a store didn’t carry their product.

II. Threat of New Entrants: Medium

 Red Bull equates in the stimulant drink industry to Coca Cola or Pepsi in the soft drink industry.
 Supermarket stimulant drinks dominate the budget end of stimulant drinks, but mid range drinks
don’t have many suppliers and attempts to compete with Red Bull’s marketing it a huge barrier to
entry.
 Red Bull’s brand power alone would make it hard for anyone to successfully enter the market.

III. Threat of Substitutes: Low

 Price sensitivity is low within Red Bull’s target segments, and because Red Bull is a spur of the
moment purchased commodity, convenience is a standard purchase criteria for the drink. Brand
power and customer loyalty have created a low situation for product substitution.
 Red Bull’s High prices are linked to their high quality, thus identical substitutes at lower prices
don’t really affect the Red Bull market.
 Other stimulant substitutes such as coffee, Five Hour energy, or energy smoothies, all have
tradeoffs with stimulation duration, caloric intake, and convenience, giving Red Bull its own
niche in the stimulant market.
IV. Bargaining Power of Buyers: Low
 Being a small market with strong customer loyalty, it’s possible for the company to have all of
the pricing power and for the customers to have very low bargaining power.
 There is a pull in the market or a derived demand giving retailers not much bargaining power.
V. Bargaining Power of Suppliers: Low
 Red Bull has a short supply chain meaning high profit at each stage of the chain.
 The production process for Red Bull is uncomplicated, leaving the suppliers with not much
power because there are low input costs.

4. CUSTOMERS
I. Target Market
 Young urban males ages 16 to 29
 Risk takers
 Young consumers and athletes
II. Positioning
 Alcoholic drink mixer
 Extreme Sports
  Sky diving
 Formula 1 sponsor
 Spends 30 to 40% of revenues on hard core marketing
 Buzz marketing
 Guerilla marketing
 Mixed marketing
The marketing strategy of red bull
Red Bull has the control of over 70% of the $1.6 billion market and owes its success to the company’s
intensive unconventional marketing strategies. The company bases its marketing approach around
promoting a high energy philosophy for the lives of its customers, by its advertisements and campaigns it
promotes a way of life more than selling its product. Red Bull also has a young target audience which
consists of the millennial, gen y and gen z, know what their target audience wants and utilize it in their
marketing strategy.
Red Bull sponsors a lot of events in various countries such as Red Bull music academy in USA, parachutes
in South Africa, Go karting events in Kuwait and many more from different countries in an effort to attract
more target audience as they usually attends events like these. It also works with influencers in the field and
shares captivating content that inspires the young audience to be more active and adventurous. By doing all
of this, Red Bull captivates authentic and loyal consumers as they are usually into athletics and sport events.
Because of this effort everybody knows its slogan “Red Bull gives you wings”, as it is used across online
and offline campaigns, televisions advertisements, newspapers and billboard ads. Some of their well-known
strategies used for marketing are: using pickup trucks as mobile displays which were painted blue and silver
with a giant can of the giant mounted on top of the vehicle. The products were designed to be eye catching
and were aimed at promoting the red bull brand as youthful and slightly off the wall.
Red Bull’s Content Marketing Strategy
The Red Bull is known for its content marketing as it is exceptionally planned. They started it with covering
topics that interest their target audience which is sponsoring and advertising extreme sports, concerts and
music festivals. The second is to sell their brands but not force the audience to buy their energy drink.
Their content is designed to make sure the reader enjoys the content not sells Red Bull. By doing this their
audience will associate their product with the content that they love to consume. The third part of content
marketing is to publish videos, blog post, pages and other types of content at different social media
networking sites and channels that their target audience consumes content from.
Analysis of red bull marketing campaign
Earlier campaign
Red Bull first gained a lot of attention because of its “Red Bull gives you wings campaign" which initially
began in the 90’s. Because of this campaign the company sold 300 million cans between the years 1996 to
2006. After this the company began to sponsor sports events of mountain biking, wind surfing,
snowboarding, skateboarding, kayaking, rowing, Formula 1 racing to even parkour, surfing, skating and
break dancing the options were limitless and the company made use of it in campaigning its product.
Red Bull also uses music concert, programs and videogames, commercial with famed celebrities, such as
Eminem and sponsoring events like Red Bull "EmSee Battle Rap championships." The company has also
made history by just being the backing power to football and Formula 1 racing teams and events. For
example, Sebastian Vettel's four Formula 1 championships will be combined with Red Bull Racing.
Stratos space diving project
In the year of 2012, Red Bull hit the global headlines when it decided to try and break the record which at
that time stood for 62 years. The company sponsored an event where an Austrian skydiver Felix
Baumgartner to free fall jump from the Earth stratosphere in a helium balloon. This project was known as
the stratos project, because Baumgartner had to fly approximately 39 kilometers (24 miles) into the
stratosphere over New Mexico in a helium balloon before free falling in a pressure suit and then parachuting
to Earth. After it became successful Baumgartner broke three records including being the first person to
break the speed of sound during a captivating freefall that lasted for four minutes and 19 seconds. This event
was live streamed through YouTube with the help of GoPro cameras and became the most viewed live
stream and a mainstream media platform at that time. This event embodied the company’s slogan, the brand
vision and supplied Red Bull with unique photography that would be used in its marketing campaign for
years.
Red Bull campaigns in India
Red Bull launched a limited festival edition in 2019 which elevated the company’s marketing strategy. The
festival edition can came with a new flavor of the orange, while the company also created a contest
#SpotTheCans. Where the customers had to go to their website and spot four hidden Red Bull Festival
Edition cans in an impressive piece of artwork. After finding them, one could redeem the vouchers and gift
cards at the Reliance Fresh and Reliance Smart stores. The energy drink giant will hosted an engaging on
ground, in store and on campus activations with the help of campus interns/ambassadors to increase the
marketing of the company.
The impact of these campaigns
The stratos project generated a huge number of media attention and a media coverage worth an estimation of
tens of million, which would not be possible to reach just using the traditional marketing strategy. After this
project the company increased 7% of its sales in just six months generating $1.6bn and selling 5.2billion
cans in the following year.
This project was successful because the company put science, engineering and a huge budget which was
1/10th of its annual global marketing budget which was $330 million to fund the project. This lead to the
company to win a Sports Emmy in the category of outstanding new approach to sport event coverage. The
point of this project was to inspire the youth to use their wings and try doing what they taught was
impossible and push the human boundaries.
The total broadcast was over 3 hours long and the Red Bull logo was in every shot. The Stratos campaign is
an extreme but excellent example of creative marketing, and the company’s commitment to the values and
aesthetic that the brand created when they first got their start that makes their marketing work. Everything
they create relates back to the idea of giving people and ideas wings to fly.