MarketingPlanOutline:RedBull MarketingBackground CompanyandProductReview In1982,DietrichMateschitz,creatorofRedBullalongsideChalermYoovidhya,saw

whereJapanandThailandwereheadingintheenergydrinkmarketanddecidedthey wantedapieceofthepie.By1987,AustriaprovedtobeadifficultmarketforRedBullto surviveinandsoonMateschitzexpandedintoHungryandtherestofGermany.After expandingacrossEuropewithalotoftrialanderrorRedBullwas$12millioninthehole. RatherthanscrappingRedBullasaloss,Mateschitzfiredallhisstaffandhiredamarketing firmtohelphimtargetnightclubsandstudents.Buzzmarketingbecamethemainfocusof RedBullsmarketingplan,andsoonstudentswerepoundingcampuspavementanddriving aroundinMiniCooperswithabigRedBullcanstrappedontopwithfreesamples.Hisbuzz marketingprovedtobenotonlycosteffective,buttheverythingthatgaveRedBullits appeal.AlthoughRedBullwasnotwelcomedwithopenarmsinallcountries,suchas France,DenmarkandNorway,itwasgrowingandexpanding. Mateschitzsoonrealizedthatanextremesportingeventwasaprofitableavenueto

takeRedBulldown.RedBullstartedsupportingapproximately500extremesports athletesandhostingexclusivepartiesfortheserockstarcompetitors.By1997,RedBulls buzzmarketingstrategyprovedsuccessfulintheU.S.aswell.Eventsarenowhosed throughouttheworldrangingfromB.A.S.E.jumpingtosurfing.Theirtagline,givesyou wingsisknownworldwideandRedBullsponsorspublicandprivateeventssuchastheX gamesandtheRedBullAirRaces.

 Distribution/Penetration RedBullisdistributedinmostgrocerystore,conveniencestore,andgasstation

acrosstheU.S.suchasHyVee,SuperSaver,Safeway,TraderJoes,Conoco,QuickTrip,and7 11.Itisalsofoundindiscount/supercenterstoressuchasTargetandWalMart.In2002, RedBullcompleteditsdistributionshareandtheproductisnowavailableinall50states (Todd,Heather). TargetMarketStatement RedBullstargetmarketareyoung,onthegopeople,whoenjoyextremesportsand leadanactivenightlife,anywherefrom1835,wholeadanactivelifestyles,andare skepticaloftraditionalmarketing(Swartz,Jon). Pricing ThepricingofRedBullvariesfromiftheconsumerisbuyinganindividualcan, whichthepriceis$1.99,comparedtoacaseofRedBull.Theaveragepriceofacaseof24 RedBullis$65.99,butdependinguponthedistributor,thepricesmayvary.Pricingfor energydrinksvarybybrand,butRedBullistypically$1.99(Dolan,Kerry). SalesandMarketShareAnalysis ThesaleofRedBullhasonlyincreasedfromthetimeMateschitzintroduceditback in1987.In2008RedBullsnetsaleswas$4.28billion,whichwasup7.9%fromthe previousyear.AcontributortothesesalesisthefactthatRedBullstartedtodistribute moretotheMiddleEast,FarEastandSouthAmerica(DPA).Insomecountries,RedBull commands80%ofthemarketshare.IntheU.S.whereRedBullenjoysa47%shareofthe energydrinkmarket,salesaregrowingannuallyata40%clip(Dolan,Kerry).

 CompetitiveAnalysis RedBullcanbeeasilycopiedbecausetheingredientswereprintedonthecanand

thedrinkwasnotpatented.EventhoughthetasteofRedBulldidnotdowellintastetests, itwasthemarketingstrategythatmadeRedBullsosuccessful(Gschwandtner,Gerhard). Inthelate80s,aroundthesametimeRedBullwasspreadingacrossEurope, AmericansweredrinkingJoltCola,whichwasadvertisingashavingallthesugarand twicethecaffeineasCoke.ItcanbesaidthatRedBullwasthefirstenergydrinktobein competitionwithsoftdrinksbutalsocreatedthenewenergydrinkcategoryinmost markets.AfterRedBullhitthemarkethardinthelate90thepresent,manyother companieshavetriedtohopontheenergydrinkbandwagonsuchaswhenHansen,the naturalsodacompany,createdMonsterEnergy. RedBullshasapproximately100majorcompetitors,suchas5HourEnergyDrink andRockStarEnergyDrink.Notonlydoenergydrinkcompaniesfallinthese100major competitorsofdirectcompetitionbut,thereisalsothesectorofsoftdrinksthathave proventobeaviableopponent.CocaCola(FullThrottle&Monster),Pepsi(AMPEnergy Drink)andGatorade(RebrandedasGandG2)arethreeofRedBullsmajorcompetitors. Manycelebritieshavealsotakenontheroleofputtingtheirfacetoanenergydrink

label,suchasIceTcreatinganenergydrinkcalledLiquidIce,NellysPimpJuiceandLil Johns,CrunkJuice. However,intheend,nootherenergydrinkhasbeenabletoclaimRedBulls70 90%ofthemarketshareithasinover100countriesworldwide,despitethesecompetitors (Penalty,Jeff).

 ProductAwarenessandAttributes

RedBullisknownworldwidenotonlybecauseofwhatsinsidethecanbutbecause ofthelifestylethebrandrepresents.RedBulldoesnottakeadvantageofthetraditional media,insteadtheyrelyonsponsoringextremesportingeventsandtheygiveawayfree samplesofRedBullattheevents.RedBullreliesheavilyonbarsandnightclubsforits samplingevents,alternativesportshavealsoproventobeasuccessfulproducttrialarena. Thecompanyunderwritesanumberofextremesportscompetitionsandsponsorsabout threedozenalternaathletes(Hein,Kenneth). DemandAnalysis ThedemandofRedBullincreaseseachyearandthatisevidentwithhowrapidly RedBullhasspreadnotonlyallovertheUnitedStatesbuttheworld.Fromjustlookingat themarketshareanalysisofRedBull,salesareincreasingeveryyearandsalesare expectedtokeeprisingwitheachcomingyear.EventhoughRedBullsdemandhas increasedwitheachcomingyear,theRedBullsU.S.marketsharehasfallenfrom75%in 1998toroughly47%today(Dolan,Kerry). PurchaseRatesandBuyingHabits RedBullconsumersareloyalpurchasers.TheybuyRedBullforitshighenergykick beforeaclass,beforeaworkout,beforeperforminginasportingeventoranytimethey needtogetanextraboosttoperformattoplevel.RedBullisalsopurchasedtodrink recreationallyduringsocialfunctionsandatnightclubsandbarstocreatevariousalcoholic beverages.

5 ProblemsandOpportunities: Problems:RedBullisnotapatenteddrinkproduct,thereforeanyoneisabletopick

upacan,readtheingredientsandgointobusinessforthemselves.Thisisoneofthe reasonsthemarketisfloodedbycompetition.InadditiontothisRedBull,alongwithall energydrinksandsupplements,hasreceivednegativepressfromamedicalstandpoint. Highlevelsforcaffeineandsugarcancreatenegativeeffectsonheartrateandblood pressurealongwithdehydration. Opportunities:RedBullisoneofthemostpopularenergydrinksintheworld.They earnedthistitlebyintelligent,consistentmarketing.RedBullhastheopportunityto maintaintheirpositionandgrowbycontinuingtotargettheirnichetargetaudienceby heavilyusinguntraditionalmarketingtacticsandtraditionalmarketingtacticssparingly. Thiswillnotonlymaintaintheirdominanceintheenergydrinkmarket,itwillstrengthen theirrelationshipwiththeirtargetaudience(Mr.Burgundy). Strengths
Mostpopularenergydrinksintheworld. RedBullrepresentsaspecific,edgy subculture,whilestillbeingconsumed byavarietyofdemographics. Threedifferentversions(Regular,Sugar Free,andCola)allowforvarietywithout spreadingthebrandtoothin.

Opportunities
IncreaseawarenessofRedBulls dominanceintheenergydrinkmarket Strengthentherelationshipbetween RedBullstargetaudiences. IncreaseRedBullssalesinspecific marketssuchastheDakotas,Tennessee, &Ohio.

Weaknesses
Notapatenteddrinkproduct

Threats
Healthrisksassociatedwithover consumption. Competitionisincreasing

 MarketingPlan SalesObjectives Wewanttomaintainourpositionastheleaderinenergydrinksandthefaceof extremesportsworldwide,whileexpandingourreachintheU.S.CurrentlyNorthDakota,

SouthDakota,Tennessee,andOhioarelagginginRedBullawarenessandconsumption.We wanttoincreasedistributionofRedBullinthesestatesby5%andincreasebrand awarenessby85%inthesemarketswhilemaintainingournationalpresence. TargetMarket

(Malinauskas,Brendaet.al.) TheuniquenessofRedBullisthatthecompanydoesnotfollowtraditionalmedia guidelinesandthatiswhytheychosetheuntraditionalplatform(Hein,Kenneth).Their targetaudienceisveryreceptivetothis.Asstatedabove,thetargetaudiencesofRedBull arepeoplebetweentheagesof1835,wholeadanactivelifestyleandwhattohaveasense ofbelongingintheircommunity,butinanuntraditionalway.Butthereismuchmoreto

RedBullstargetaudience.Notonlydotheynottrusttraditionalmediatheyareturnedoff byit.Theseantiestablishmentandadventureseekingindividualsthatdonotfollowthe rulesandneededRedBullneededbuzzmarketing/extremesportsinordertotapinto them(Rodgers,AnniLayne). ThetargetaudiencesofRedBullarepeoplewhoworkhardandplayhard.They taketheirprofessionveryseriouslybutliketohavefunintheirfreetime.Fromthecollege classroomtotheboardroom,thesepeopledontcheckoutoflifeatfiveoclock.The commonthreadconnectingRedBullconsumersisthattheyallenjoystayingactiveby participatinginsportingevents,watchingsportingevents,playingvideogamesor socializing(Hein,Kenneth). MarketingObjectivesandStrategies Ourmarketingobjectiveandstrategyistolaunchlocalizedeventstoattractyouth oncollegecampusesandatsportingeventsinNorthDakota,SouthDakota,Ohio,and Tennessee.Theseeventswillfeaturesomeofoursponsoredathletesmakingguest appearancesandfreegiveawaysofRedBullandRedBullproducts.Wewillhosta SoapboxRaceandaFlugtagFlightlabeventtheinmajorcitiesinthesestatesinorderboost awarenessandconsumptionofRedBullinthoseareas.Inaddition,RedBullvehicleswill maketheirwayacrosstheUnitedStates,specificallyinlargercities,promotingthebrand andgivingawayfreesamples.TheRedBullvehiclerouteswilltravelwithrepstocollege campusesinmajorcitiespromotingthebrandanditslifestyle.Amillionsampleswillbe distributedbytheseRedBullRepsandhaveacodeonthebottomofeachcan.Also,an additionalmillioncanswillbedistributedacrosstheU.S.tobesoldbyretailers.These codescanbeenteredonlinetowinfreeRedBull,aVIPtripfortwotothe2010winterX

 GamesinAspen,CO,aVIPtripfortwotothesummerXGamesinLosAngeles,CA,orfree entrypassestotheSoapboxRaces,orFlugtagFlightlabeventshostedinourtargetstates. National,onein50cancodeswillgiveawayfreeRedBull,fourintwomillionwillgive

awaythetwowinterandtwosummerXGamepackages.Inourtargetstates,200canswill awardrecipientswithpassestotheirlocalSoapboxRacingandFlugtagFlightlabevents. AswellastargetingNorthDakota,SouthDakota,OhioandTennessee,therewillalso betwogroupsoftwopeopleassignedtoeachstate.TheseMiniCooperteamswillgoto collegesandmajorcitiespromotingRedBullandadvertisingtheWinterandSummerX Games. PositioningStrategy R&AAgencywillcontinuetopositionRedBullandRedBulleventsasaunique,off theradarsubculture.SpottingtheRedBullvehiclewillbeaneventinitself,creatingbuzz onthestreetsandwatercoolertalk.ByusingRedBulltoguidedrinkerstoRedBullevents wewillsucceedinincreasingconsumptionandawarenessinlaggingmarketsandstay consistentacrosstheU.S.Theeventswillbeaplacewherelikemindedpeoplecancome together,havefun,becreative,blowoffsomesteamandfeellikeapartoftheexclusiveRed Bullfamily.R&AAgencywillnotchangeRedBullsexistingtagline,RedBullGivesYou Wings,becausewefeelthecompanyhasalreadyestablishedataglinethatmanypeople alreadyknowabout.R&AAgencywillcontinuetousethetaglineonproductsandjust makethetaglinemoreevidentonproducts,suchasonthegiveawaysthatthecollege Repswillbegivingout.

 MarketingMixImplementationTools RedBullGivesYouWingsacrosstheUnitedStates

RedBullisanenergydrinkthatrepresentsalifestyle,andwewanttobringthatlifestyleto themasses.OurmarketingmixwillconsistofPublicRelationpromotions,nontraditional advertising,andsponsorshipsofextremesportsathletesandevents.Byusingthismix,we willattracttraditionalmediatocoverourproductwithoutcreatingtraditionalads ourselves.WeplantokeepthepriceofRedBullthesameasitisnow,butdofreegivea waysduringPReventsandduringsponsoredevents. OurPReventisacrosscountryroadtripinRedBullsMiniCoopers.Theroadtrip willconsistof100twomenteamsthatwillbemakingstopsatmajorcollegesand universitiesacrosstheU.S.,includingYale,Berkley,NotreDame,andtheUniversityof NebraskaLincoln.Inadditiontothestopsinmajorcities,specialattentionwillalsobe giventoNorthDakota,SouthDakota,Ohio,andTennesseetoincreaseconsumptionand brandawareness.Duringtheirstops,theywillhosteventsthatgiveawayfreeRedBull andRedBullproductsaswellasotherprizessuchasflatscreenT.V.sandPlaystation3s.It willbeayearlongeventofappearancesbytheRedBullMiniCoopersatcollegecampuses inmajorcities.Thesecollegeswillbecontactedaheadoftimetoarrangefreeinternsto helpplanandsetuptheevents.Studentswillbeabletoplayvideogames,testdrivethe MiniCooper,winprizes,allwhiledrinkingRedBull. RedBullwillcontinuetohaveheavysponsorshipoftheir500+athletesandatthe WinterandSummerXGames.Clothing,banners,minieventswillbethemaintoolsduring thesesponsorshipsthatwillbepickedupbythelocalandnationaltelevisionandradio stationscoveringtheseathletescareersandsportingevents.

 MarketingPlanBudgetandCalendar Partofour50milliondollarbudgetismeanttofocusonNorthDakota,South

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Dakota,TennesseeandOhiotomakethemfeelmoreasiftheyarepartoftheRedBull communitybytyingthemintomajoreventsthatRedBullsponsors.Thebulkofour50 milliondollarbudgetwillbegoingtowardssponsoringtheWinterandSummerXGamesas wellaspurchasinggiveaways. $15,000,000=January2010 o SponsoringWinterXGames $15,000,000=August2010 o SponsoringSummerXGames $30,000=InbetweenthemonthsoftheSummerandWinterXGames o Theoneinfiftycangiveaway $40,000=January2010(Winter),August2010(Summer) o TheroomandboardfortheSummerandWinterXGames o Transportation= Winter=FourRedBullsnowmobiles Summer=FourRedBullmopeds

o 8VIPpasseseachfortheWinterandSummerXGames $5,000,000=Throughouttheyear,teamsoftwowilldrivetotwelvemajor citieswhichwillbeinourtargetstates. o RedBullvehicletripsandevents $10,000=AprilandNovember2010 o ForfreeentryfeetoSoapboxandFluegtagFlightEvents

 $1,000,000=Throughouttheyear. o Oncollateral RedBullclothing PlayStations XBoxes VideoGames XGameDVDs Bluetoothplayers FlatScreenTVs

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$10,000,000=NovemberandDecemberbeforeWinterXGamesandJune andJulybeforeSummerXGames. o TVadvertisementsWinterandSummerXGames

$3,920,000=NovemberandDecemberbeforeWinterXGamesandJuneand JulybeforeSummerXGames. o MagazineadvertisementsinmensmagazinesadvertisingWinterand SummerXGamesanddirectmailsenttomenadvertisingWinterand SummerXGames.

 WorksCited

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Dolan,Kerry.TheSodaWithBuzzForbes28March2005:1. http://www.forbes.com/free_forbes/2005/0328/126_2.html DPA.RedBullsgrowthratehalvedin2008BusinessNews4February2009:1. http://www.earthtimes.org/articles/show/254168,redbullsgrowthratehalvedin 2008.html Gschwandtner,Gerhard.RedBullSellingPowerSeptember2004:111. Hein,Kenneth.ABullsMarketthemarketingofRedBullenergydrinkBrandweek28 May2001:14. http://findarticles.com/p/articles/mi_m0BDW/is_22_42/ai_75286777/pg_2/?tag=content ;col1 Malinauskas,Brendaet.al.RedBullNutritionJournal2007:1 Mr.Burgundy.TheHealthEffectsofEnergyDrinksAssociatedContent17May2007:12. http://www.associatedcontent.com/article/234299/the_health_effects_of_energy_drinks_p g2_pg2.html?cat=51 Penalty,Jeff.ABriefHistoryofEnergyDrinksSwindleMagazineIssue062009:1 Rodgers,AnniLayne.Itsa(Red)BullMarketAfterAllFastCompany19December 2007:12.http://fastcompany.com/articles/2001/10/redbull.html Swartz,Jon.MoremarketersusesocialnetworkingtoreachcustomersUSAToday27 August2009:13.http://www.usatoday.com/tech/news/20090827socialnetworks marketers_N.htm Todd,Heather.RedBullNorthAmerica,IncBeverageWorld15May2003:1. http://www.allbusiness.com/retailtrade/eatingdrinkingplaceseating/41301141.html