Red Bull is the world's leading energy drink brand. It was founded in 1987 by Dietrich Mateschitz after he was inspired by Asian "tonic drinks". Red Bull uses a unique marketing strategy focused on word-of-mouth promotion and associating the brand with extreme sports and youth culture. Though it faces health concerns and high prices as weaknesses, Red Bull maintains a strong brand and market leadership position through extensive promotion and branding efforts.
2. About Company
• In 1982, Dietrich Mateschitz became aware of products called "tonic
drinks", which enjoyed widespread popularity throughout the Far East.
• In 1984, Mateschitz founded Red Bull. He fine-tuned the product,
developed a unique marketing concept and started selling Red Bull Energy
Drink on the Austrian market in 1987.
• However , such energy drinks was first-time invented in Thailand.
• Today Red Bull has become the worlds leading energy drink, selling more
than 4.6 billion cans in 2011.
3. Marketing Mix: Product
• Red Bull is a sweet,
caffeinated drink aimed
to give consumers the
high energy kick.
Available only in rather
expensive 250ml cans,
350ml bottles, with 4
packs and only two
flavours (original or
sugar-free). It contains
caffeine, taurine, and B
vitamins.
4. Marketing Mix: Promotion
• Strategy called word-of-mouth or “BuzzMarketing”
• “We do not take product to customer. We take
customer to the product” Mr. Dietrich
Mateschitz
• Promotion job for youth
• Promotion through lifestyle
5. Marketing Mix: Price
• Price of RedBull is premium price all over the
world.
• Highest in the market.
• Varies from 2 to 4 dollars per can.
6. Marketing Mix: Place
• RedBull are using tactic not to have official
shops of their production. Instead of that,
company are cooperating with local markets
and exporting production by minimalizing
sales cost to a minimum.
8. Segmentation / Target Market
• Age criteria:
14-16
The Student
16-25
The Fan of Extreme sports
Redbull
users
25-39
The Clubber
39-55
The Careerist
9. Target Market: 16-25
Type
Description
The Student
This group includes all the current students, especially during the
examination time, who are staying late to study and need additional energy
to finish their tasks.
The Fan of Extreme
sport
This group consist not of actual athletes, but of those, who are extremely
into this kind of sport, including motorsport, skiing, windsurfing and all other
areas, which are promoted by “Redbull“ brand. They do not miss any
competition and for them drinking energy drink is like alternative of being in
the real action.
The Clubber
This group includes young and active urban youth, who spend most of their
leisure in variety of clubs, therefore they need plenty of energy to party all
night long. What is more, there was discovered, that “Redbull“ goes
perfectly with alcohol in a lot of cocktails.
The Careerist
This group includes all the new entrants in the business who have a lot of
potential as well as are hardworking persons, and need some additional
energy while staying late after working hours
10. Market Share / Competitors
in Lithuania
Other
7%
Battery
14%
Redbull
37%
Burn
15%
Monster
27%
11. Direct and indirect competitors
Direct
Battery
Burn
Monster
Other energy
drinks
Direct
Indirect
Energetic gum
“Blitz”, “Gerimax”
Energy ice-cream
“ENERGY DRIVE”
Coca-cola
Pepsi Cola
Sprite
Fanta
Coffee “Jacobs”
Chocolate “Karūna”
Indirect
14. Summary
• “Red Bull” - well-developed company,
undisputed leader in the market of energy
drinks.
Recommendation
• To expand taste assortment of drinks.