Red Bull Marketing

Global
Strategic
Marketing
Assessment 1
By: Sam Deegan
Keith Hogan
John Keating
Stephen Walsh
Assignment Global Strategic Marketing Red Bll
Declaration
! certi"y that this assignment is all my o#n #ork and contains no $lagiarism% By sbmitting
this assignment& ! agree to the "ollo#ing terms:
Any te't& diagrams or other material copied "rom other sorces (inclding& bt not limited to&
books& )ornals and the internet* ha+e been clearly ackno#ledged and re"erenced as sch in
the te't% ,hese details are then con"irmed by a "ller re"erence in the bibliography%
! ha+e read the sections on re"erencing and plagiarism in the handbook or in the W!,
$lagiarism policy and ! nderstand that only assignments #hich are "ree o" plagiarism #ill be
a#arded marks% ! "rther nderstand that W!, has a plagiarism policy #hich can lead to the
sspension or permanent e'plsion o" stdents in serios cases%
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Contents
/
Table of Figures
0
1. Introduction
,his Report has been ndertaken as part o" the continos assessment "or the Global
Strategic Marketing modle% ,he report consists o" t#o indi+idal sections& the "irst section
e'amines or chosen indstry& the energy drinks indstry and analysis it in terms o" its si1e&
scope 2 sales model% !n the second section #e take a look at or chosen company operating
#ithin the indstry& "or this #e ha+e chosen Red Bll% !n this section #e shall take an in3
depth look at ho# the company positions itsel" #ithin the market& ho# it di""erentiates itsel"
"rom competitors& #hat market segment it targets 2 ho# it reaches them%

4
2. Analysis of te !nergy Drinks Industry
2.1. "ackground
,o analyse the scale 2 scope o" the energy drinks !ndstry #e mst "irst de"ine #hat an
energy drink is& according to (Merrieam3Webster Dictionary& .560* an energy drink is:
usually a carbonated beverage that typically contains caffeine & other
ingredients (such as Taurine & Ginseng) which are intended to increase the
drinkers energy levels
,he "irst recorded mass prodced energy drink #as prodced in 6750% ,his energy drink is
no# one o" the most "amos brands on the planet& 8oca 8ola% 8oca 8ola #as the "irst drink
e+er marketed as an energy booster 2 contained cocaine at the time o" release% $rior to this
the only stimlant drinks a+ailable #ere natral ones sch as ,ea 2 8o""ee% 9+er time the
landscape o" the energy drinks market has changed& the "irst modern energy drink #as sold
in 67:; and its maker remains the dominant player in the market to this day& #hich is Red
Bll #hich #e look "rther into in the company analysis%
2.2. Industry Si#e$ Gro%t & 'rofitability
<
,he energy drinks market has boomed in recent years& according to (King& .56/* energy
drink 8onsmption
has gro#n on
a+erage 65= since
.55; bringing
consmption p 6%4
Billion >itres to 0%4
Billion >itres in the
space o" )st "or
short years%
8onsidering these
"igres the energy
drinks indstry is
clearly a Bll market&
#hich is in a phase
o" rapid e'pansion
as corroborated by
?igre @ 6 to the
right% ,his gro#th
shold not sti"le in
the near "tre de
to the brgeoning
B%R%!%8%S economies #hich #ill represent ne# gro#th regions as the present markets sch
as Aorth America matre% A trst#orthy !ndstry #ide sales "igre is hard to obtain in relation
to the energy drinks market& thogh (Benith !nternational& .56.* estimates the market to be
#orth appro'imately C/; Billion& to pt this in perspecti+e (Smirke& .56/* placed the total
re+ene o" the global recorded msic indstry at C6<%4 Billion& #hich demonstrates the
gro#th that energy drinks indstry has ndergone%
2.(. Com)etiti*e Sco)e
8ompetiti+e scope is a concept de+eloped by Michael D% $orter% 8ompetiti+e scope can be
EWideF& meaning the target market consists o" many smaller market segments or EAarro#F&
meaning it is "ocsed on a speci"ic Aiche ($orter& 67:4*% ,he Dnergy Drinks !ndstry itsel"
"ocses on a niche age grop o" 6:3/0 year old males (Ackerman& .56/*& thogh +arios
companies are attempting to #iden their age appeal de to the increasingly more cro#ded
market 2 entice a larger "emale consmer base% ,his means that the once narro# "ocs is
slo#ly #idening& in part de to the e'isting aging cstomer base& and also de to more
mainstream sponsorships sch as ?ormla 6%
2.+. Market ,eaders
,he energy drinks market operates on an international scale% ,he !nternational market is an
oligopoly #hich is dominated by a small nmber large players& this is demonstrated belo# in
(?igre @ .*% !t is ho#e+er clear that Red Bll 2 Monster Dnergy are by "ar the biggest
players% ,hese companies are increasingly obtaining ne# cstomers at the e'pense o" so"t
drink man"actrers sch as 8oca38ola 2 $epsi%
;
Figure - Functional Sales Performance Overview

As a reslt #e are seeing companies sch as these e'ploiting their e'tensi+e distribtion
channels to nderct many o" the e'isting energy drinks makers& e'amples o" this inclde
8oca38olaGs Brn brand #hich is 05= cheaper than crrent market leader Red Bll (,re"is&
.560*& bt is yet to de+elop its market de to its relati+e in"ancy compared to the other
brands%
2.-. Sales Model & .S'
2.-.1.Market Segmentation
All the energy drink brands ha+e tried to emlate the sccess o" Red Bll 2 target the same
segment o" 6:3/0 year old males (Ackerman& .56/*% ,he methods sed to reach this
adience sally inclde associations #ith +arios e'treme sports like Sno#boarding&
Skateboarding& ?6 and World Rally 8hampionship% Di""erences bet#een prodcts are
generally con"ined to price& can si1e 2 "la+or& thogh there is an e'panding market "or more
concentrated EshotF +ersions% !n terms o" price& energy drinks are generally "ar more
e'pensi+e than other so"t drinks& o" #hich Red Bll is "ar 2 a#ay the most e'pensi+e brand&
ne#comers tend to try nderct Red Bll to try achie+e a greater market share%
Dnergy drink can si1es are steadily becoming larger as competitors attempt to di""erentiate
themsel+es% Hsing larger cans portrays an image o" impro+ed +ale 2 highlights attempts to
increase per capita consmption rates #hich are generally Iite lo# +erss so"t drinks ($R
Ae#s#ire& .56/*& this has been +ery sccess"l as this consmption "igre has dobled
since .55<% ,here is also a gro#ing segmented demand "or ne# "la+ors& thogh the
original energy drink flavour still holds <:= o" the market share according to (8anadean&
.56/*& it has shrnk "rom o+er :5= o" the market share in .550% ,his is #here brands sch
as Monster ha+e traditionally had the most sccess in attracting cstomers "rom Red Bll
de to their limited range o" "la+ors%
,he ne#est threat to the traditional energy drinks brands is the emergence o" energy shots
sch as 4 Hor Dnergy% ,hese energy shots aim to pro+ide the same bene"its as the
traditional energy drinks sch as Red Bll 2 Monster& bt in a smaller package #ith "e#er
calories 2 sgar% ,he branding thogh is some#hat more distincti+e& 43Hor Dnergy
positions itsel" as more o" an energy spplement than a be+erage% Many o" the players sch
as Red Bll 2 Monster ha+e released concentrated +ersions o" their prodcts to compete
#ith these bt as o" yet ha+e not gained the same traction as 4 Hor Dnergy%
:
Figure - Largest Energy Drinks Manufacturers Revenues
2.-.2.An !*ol*ing .ni/ue Selling 'oint
Dnergy drinks ha+e nder#ent to some e'tent a perception change o+er the last decade&
originally they #ere seen as a "nctional short term energy "i'& or a pick me p to keep yo
alert "or a short #hile& e%g% a late dri+e home% ,his "nctional perception has dramatically
changed 2 #ith it the niIe selling point o" these energy drinks& to Iote #ho is essentially
the "onder o" the !ndstry& Dietrich Mateschit1 the Red Bll 8D9& the H%S%$ is no#
some#hat more philosophical:
What ed !ull stands for is that it gives you wings" which #eans that it
provides skills" abilities" power etc$ to achieve whatever you want to$ %t is an
invitation as well as a re&uest to be active" perfor#ance'oriented" alert" and
to take challenges$ When you work or study" do your very best$ When you do
sports" go for your li#its$ When you have fun or (ust rela)" be aware of it and
appreciate it$ (%e**i" +,-+)
,his is clearly "ar "rom its "nctional origins 2 aims to sell an e'treme li"estyle& hence the
pre+alence o" e'treme sports in the +arios brands ad+ertising port"olios% ,he brands no
longer aim to sell yo a liIid energy boost& bt a piece o" this #ild 2 e'treme li"estyle% ,his
is #hy the +arios brands all try to otdo each other in e'treme sports sponsorships&
becase they mst constantly psh this e'treme image to stick ot "rom the competition e%g%
the Red Bll Stratos space )mp%
2.-.(.Sales
As yo can see "rom the "igre belo#& the "igres acIired "rom ($R Ae#s#ire& .56/* clearly
sho# that the +ast ma)ority o" sales come "rom prchases in local shops% ,here is also
signi"icant amonts o" energy drinks prchased "rom mass merchandisers 2 #arehoses&
#hile not stiplated #e belie+e that many o" these sales are to bars 2 nightclbs% ,his is de
to the gro#ing trend o" mi'ing energy drinks #ith spirits #hich is coming increasingly nder
scrtiny& de to a nmber o" high pro"ile incidents (Hni+ersity o" Michigan& .56/*%
Figure - Energy Drinks Sales Breakown
2.0. 1ey Dri*ers in te !nergy Drinks Market
,here are a "e# key elements that can be dra#n "rom a $%D%S%,%D%> Analysis (in Appendi' @
!!*& "irstly the energy drink indstry seems to ha+e been +ery resistant to the "inancial
do#ntrn o" .55:& as its gro#th #hile slo#ed has contined strongly% Ae# gro#th is
e'pected to come "rom the BR!8S& the Middle Dast 2 >atin America in the medim term%
,here is gro#ing !dentity crises #ithin the indstry as all the competitors ha+e merely
replicated Red Blls e'treme sports image 2 accentated it% ,his is making it increasingly
more di""iclt to create an indi+idal brand%
7
$olitically 2 socially the indstry is recei+ing negati+e media attention de to the high pro"ile
cases #here energy drinks ha+e been linked to coronary deaths% ,his is reslting in political
pressre to limit the places #here these drinks are a+ailable& placing sgar ta'es to redce
their consmption 2 protecting yonger consmers "rom energy drink ad+ertising% As a reslt
o" this 2 ne# healthy li+ing trends amongst consmers many energy drinks companies ha+e
released sgar3"ree 2 lo#3carb options% As a reslt the t#o main en+ironmental pressres
appear to be Social 2 >egal& the indstry itsel" "or the time being is sch a bll market it
ignores the crrent economic en+ironment% Socially it is a rather mi'ed bag generating both
opportnity in demand "or ne# segmented health conscios prodcts& #hile then negati+ely
a""ecting the indstry #ith pblic criticism o" its e""ects on coronary isses% ,echnologically 2
en+ironmentally speaking there seems to be little more pressre than any other indstry to
be a large case "or concern%
(. Com)any Analysis of 2ed "ull
(.1. An Introduction to 2ed "ull
Red Bll #as "onded in Astria in the mid3:5Gs by Dietrich Mateschit1& Dietrich modi"ied a
"nctional tonic he "ond on his tra+els in Asia to sit #estern tastes% Dietrich did this
becase he #anted to create a drink& #hich not )st Ienched thirst bt also had a "nctional
bene"it (Red Bll& .56/*% !t #as #ith the "ondation o" Red Bll that Mateschit1 not only
created a company #hich no# has a trno+er C0&./4 million a year& bt a #hole ne#
indstry #hich is no# #orth C/; Billion (Benith !nternational& .56.*%Red Bll is a titan o" the
energy drink indstry& one #hich it has managed to create& dominate 2 gro# into a lcrati+e
ne# niche in the mineral drinks market right nder the nose o" traditional indstry po#ers
sch as $epsi 8o 2 8oca38ola%
,hese companies ha+e increasingly targeted the gro#ing energy drinks market as their o#n
markets ha+e begn to decline (Bmda& .560*% ,he Red Bll brand itsel" is incredibly
"ascinating 2 is bilt pon associating itsel" #ith a myriad o" teamsG e+ents 2 people&
probably to the point that it is no# more recognised "or its +ales than it is "or its prodct% !t is
ranked the 07
th
most +alable brand in the #orld according to (Drobrand& .560* ahead o"
other !nternational brands sch as ?acebook& ,esco 2 !KDA% ,his re"lects the e""ort Red Bll
pt into brand bilding as it rein+ests /5305= o" sales in marketing ($assport& .56/*% ,his
brand has not been bilt pon traditional marketing techniIes& bt by embracing modern
marketing techniIes sch as Ambsh Marketing& Digital Marketing 2 closely linked ,eam 2
D+ent Sponsorship "rom its +ery beginning% ,his makes Red Bll a common topic o"
discssion by marketers 2 consmers alike%
65
(.2. Te Aims$ 3b4ecti*es & 5alues
,his section attempts to nco+er the message that Red Bll con+eys #hen marketing itsel"
to the masses& or more speci"ically to males aged 6:3/0% As pre+iosly Ioted in the
!ndstry Analysis& Dietrich Mateschit1 stated:
What ed !ull stands for is that it gives you wings" which #eans that it
provides skills" abilities" power etc$ to achieve whatever you want to$ %t is an
invitation as well as a re&uest to be active" perfor#ance'oriented" alert" and
to take challenges$ When you work or study" do your very best$ When you do
sports" go for your li#its$ When you have fun or (ust rela)" be aware of it and
appreciate it$ (!e11i& .56.*
?rom this statement #e can dra# the "ollo#ing conclsions& Red Bll associates itsel" #ith
the idea o" Sel"3Actalisation that Eyo mst be all yo can beF 2 by consming Red Bll yo
are one step closer to this% Red Bll positions itsel" as the tool to help yo scale montains& it
"or this reason that they associate themsel+es #ith people #ho treat these montains or
other e'treme en+ironments as their playgrond& or bend the en+ironment to their #ill% ,he
company slogan rein"orces this& Red Bll Egi+es yo (the* #ingsF& 2 so all yo ha+e to do is
"ly% !t is clear "orm this that Red Bll +ales are based on:
A#areness
Mind 9+er Matter
Risk
Sel"3Actalisation
Sel"3Moti+ation
Sccess
(.(. Com)any Milestones
As yo can see "rom the belo# milestones& #hich #ere taken "rom the o""icial site (Red Bll &
.560*& there is an increasing "ocs on bilding the brand throgh more mainstream sports
sch as ?6 2 "ootball& as opposed to the e'treme sports Red Bll has traditionally
associated #ith in the past% ,his highlights a gro#ing need to broaden the appeal o" the
prodct de to the nmber o" competitors% Also noticeable is the increasing se o" sccess
to mark milestones in the most recent milestones& #here in the past the company milestones
#ere more "ocsed on participation or e+ent creation%
Jear
67:; Red Bll #as ?onded
66
67::
,he company began its association #ith e'treme sports& holding an e'treme
sports marathon relay race& #hich combined montain rnning& paragliding&
kayaking 2 montain biking
67:7
Red Bll began associating itsel" #ith athletes& the "irst being ?6 dri+er Gerhard
Berger
677.
,he #idely kno#n Red Bll gives you wings cartoons begin& the "irst "eatred
>eonardo da Kinci creating the E#asterpiece kno#n as Red Bll
Red Bll began its ?lgtag e+ent& #hich in+ol+es e+eryday people designing
homemade gliders #hich are then demonstrated to the pblic 2 )dged on
creati+ity& sho#manship 2 the distance "lo#n
6770
,his #as the "irst year that Red Bll began to sponsor international athletes in the
"orm o" top #indsr"ers B)orn Dnkerbeck 2 Robby Aaish
Red Bll began to air its ad+ertisements otside Astria
6774
Red Bll prchased a ma)ority share in the ?6 Saber team 2 began a 65 year
partnership
6777
?eli' Bamgartner began his long relationship #ith Red Bll by completing the
highest recorded base )mp o"" $etronas to#er
.555 Red Bll is lanched in the Middle3Dast
.556
,he Red Bll Jnior team #as established& #hich has since prodced #orld
champions sch as Sebastian Kettel
.55/ ,he Red Bll Air RaceGs began
.554 Red Bll Racing #as established a"ter Red Bll prchased the Jagar ?6 team
.55< Red Bll Aascar established
.55; D8 Red Bll Sal1brg declared Hockey >eage champions
?8 Red Bll Sal1brg #in the Astrian ?ootball >eage
Red Bll Records established
.565 Red Bll Ae# Jork ?8 mo+ed into their ne# Stadim the Red Bll Arena
Red Bll Racing dri+er Sebastian Kettel #ins his "irst World 8hampionship
.56.
?eli' Bamgartner )mps "orm the edge o" space& breaking mltiple records
inclding the "irst spersonic "ree3"all& the longest e+er "ree3"all 2 the highest e+er
)mp
Sebastian >oeb #ins his 7
th
consecti+e WR8
.56/ Sebastian Kettel 2 Red Bll Racing #in their 0
th
consecti+e titles
8yril Despres #ins his 4
th
Dakar Rally
Figure - !om"any Milestones
6.
(.+. 2ed "ulls 'roduct 2ange
(.+.1.'roducts
Red Bll has a +ery limited prodct range especially in relation to its competitors% ,his is a
+ery serios problem de to the "alling market share o" original "la+or energy drinks in the
market% As a reslt Red Bll released a limited edition range in the H%S this comprises o"
three ne# "la+ors ($assport& .56/*:
Re# 8ranberry
Silver: >ime
Blue# Bleberry
,hese ne# prodcts are still too ne# to be assessed "or sccess thogh ne# prodct
lanches "or Red Bll ha+e not #ent #ell in the past& sch as the Red Bll 8ola brand #hich
#as discontined% Red Blls latest prodct& Red Bll Bero 8alories& #as "irst lanched on to
the market in ?rance in .56/ and is set to reach the H%K market in smmer .560 (Morton&
.560*% ,his prodct is aimed at the more health conscios consmers by o""ering an energy
drink #ith no calories or sgar% ,his is Red BllGs second health conscios +ersion a"ter the
lanch o" their sgar "ree prodct a decade ago% ,his ne# prodct range helps Red Bll
compete #ith main ri+als Monster #ho also ha+e introdced health conscios options sch
as their lo'carb prodct%
Red Bll traditionally ha+e sed a slim3line .45 ml can si1e% Ho#e+er they ha+e recently
introdced a ne# spersi1ed 0;/ml can in an attempt to raise per capita consmption& #hich
is lo# compared to other ca""eine drinks& the introdction also represents direct competition
to its ri+als Monster Dnergy #hose standards can is 455 ml (Anon%& .560*% Red Bll ha+e
come nder criticism "or the +olme o" sgar contained #ithin these spersi1ed cans as they
contain an e'cessi+e 6/ teaspoons in each can (Webb& .56.*%
(.+.2.'roduct 'ositioning
Red BllGs is considered the premim prodct on the energy drinks market 2 is priced
accordingly% ,he company ses the pricing to a psychological e""ect& #hich creates a belie" in
consmers that the prodct is sperior to its competitors (Maglo""& .560*% !t is "or this reason
partly& despite comparable sales bet#een Monster Dnergy 2 Red Bll& Red Bll has "ar
sperior re+eneGs% ,his positioning has been spported de to Red BllGs ?irst Mo+er
Ad+antage (?MA*& being the "onder o" the market Red Bll has bilt p the brand loyalty to
maintain this pricing& e+en in the "ace o" "ar cheaper competition& an e'ample o" #hich #e
highlighted earlier is 8oca38olaGs Brn brand #hich is 05= cheaper%
6/
(.+.(.Target Market
Red Bll targets an 6:3/0 year old male segment o" the market (Ackerman& .56/*& they do
attempt to reach this market throgh the +arios e'treme sports associations& the Red Bll
Air Race& 8li"" Di+ing etc% Ho#e+er this market is incredibly satrated as all o" the ma)or
brands target this segment sing the same approach% As a reslts #e see Red Bll more so
than the other brands attempting to broaden its appeal% ,hey attempt to do this in a nmber
o" #ays& "irstly the yonger generation are more health conscios 2 are concerned #ith the
health e""ects o" energy drinks than the pre+ios generation (Radcli""e& n%d%*% Secondly there
is lo# consmption o" energy drinks amongst #omen& many o" #hom are more health
conscios than men%
,his has seen the introdction o" sgar3"ree 2 1ero calorie editions& this represents a rapidly
gro#ing share o" the market% !t has also seen an increased e""ort to endorse role models to
get arond legislation to reach minors be"ore spending habits are set& thogh the company
denies this& itGs a constantly le+ied criticism (Montage3Jones& .566*% !n an e""ort to
strengthen its appeal to #omen Red Bll has associated itsel" #ith a nmber o" high pro"ile
sportspeople sch as pro"essional gol"er Ale'is ,hompson 2 Skier >indsey Konn%
(.+.+.Com)etitors6Substitutes
Red BllGs largest competitor has been stated throghot this docment many times&
Monster Dnergy 2 Red Bll represent the lion share o" the energy drinks market #ith
appro'imately :5= market share (8a""eine !n"ormer& .56/*% Monster Dnergy has a mch
more di+ersi"ied prodct line than Red Bll #ith a larger +ariety o" "la+ors% Monster also
o""er a mch larger can "or the same price as Red Bll in an attempt to represent a better
+ale% While Red bll is trying to #iden its scope to attract ne# cstomers& Monster Dnergy
ho#e+er has an e'tremely narro# "ocs aggressi+ely targeting Red Blls traditional market
o" 6:3/0 year old men& this is re"lected in Monster DnergyGs "ar more mascline image% ,his
strategy to their credit has #orked incredibly #ell& as it only took 4 years "or Monster Dnergy
to o+ertake Red Bll as the market leader !n the H%S% (Bockley& .560*%
(.+.-.Marketing Metods
As #eG+e stated Red Bll has an inno+ati+e marketing strategy #hich does ha+e elements o"
traditional (passi+e* marketing sch as print 2 tele+ision ad+ertisements& this is sally
managed by Red Bll Hose #hich amongst other responsibilities !sseGs the monthly Red
Blletin maga1ine% Ho#e+er the ma)ority o" ad+ertising in+ol+es modern (acti+e* marketing
techniIes sch as:
Digital Marketing
o Blogs
o Kiral Ad+ertisements
o Social Media
60
,eam 9#nership
D+ent 9rganisation
Ambsh Marketing
Red Bll is a prime e'ample o" Ambsh Marketing% Ambsh marketing in+ol+es the
in+estment o" time& energy& kno#ledge 2 creati+ity rather than money to achie+e its aims
(Dntreprener& .56/*% ,his is something Red Bll ha+e done "antastically in the past& Iite
early on they aimed to create brand b11 on the clb scene& they did this by making sre
local DJGs #ere seen #ith the prodct 2 as a reslt Red Bll became Iite poplar amongst
clbbers& this techniIe is no# kno#n as seeding (?DS& .56/*% ,he company is +ery acti+e
social media 2 stri+es to se it to its "ll potential& in "act it is so acti+e on t#itter that 07%/=
o" all energy drink related t#eets mention Red Bll (Ae#s Reptation& .56.*%
Where Red Bll really e'cels is in team o#nership 2 e+ent organisation% Bt #hy are #e
sing the terms team o#nership 2 e+ent organisation instead o" sponsorship& becase Red
Bll doesnGt do plain sponsorship +ery o"ten% ,raditionally sponsors #ill pay to ha+e their logo
associated #ith a team to deri+e marketing +ale by association e%g% Adidas sponsoring the
9lympics& this ho#e+er can be ndermined by competitors ambsh marketing campaigns
sch as Aike did in the 677< 9lympics% !n Red Blls case they integrate the team or e+ent
into the company and intrinsically link their +ales 2 branding so tightly they cannot be
ambshed& "or e'ample the Red Bll Racing ?6 is #holly o#ned by Red Bll& it is called Red
Bll in short& and the car bares its colors 2 logo% So i" Monster Dnergy #ant to associate
themsel+es #ith the team it is near impossible becase the branding is so identi"iable #ith
the team%
,his trend contines to their other teams D8 Red Bll Sal1brg& Ae# Jork Red BllGs ?8 etc%
8ompetitors cannot e+en ambsh the stadim as they are generally Renamed the Red Bll
Arena or some +ariation 2 decked ot in the Red Bll logo 2 colors% ,he interesting aspect
o" these +entres is that #hile in the short term Red Bll makes a signi"icant in+estment&
they also rn these teams like a bsiness 2 trn o+er a pro"it relati+ely Iickly% ,he same
goes "or Red Bll e+ents& yo see the same re3occrring theme #ith Red Bll ?lgtag& 8li""
Di+ing etc% ,hese e+ents are all intrinsically linked to the brand 2 pre+ent ambshing% Most
o" these e+ents are re3occrring& 2 there"ore enable annal brand interaction #ith potential
cstomers%
64
+. Conclusion
+.1. Industry Analysis
!n conclsion the Dnergy Drink indstry is clearly a pro"itable one% ,he sccess o" Red Bll
has ltimately attracted many en+ios eyes& #hich ha+e no# entered the market looking "or
their share% Dspecially those #ho ha+e made signi"icant pro"its "rom the no# declining so"t
drink indstry #ho are looking to compensate "or loses% ,he le+el o" competition has
increased risk "or those in the market #ith the largest share as they ha+e the most to lose&
this is de to the high sbstittability o" prodcts a+ailable%
,he market is "reIently becoming more 2 more segmented in terms o" "la+ors& +arios
sgar3"ree 2 lo#3carb options% 8ompanies are "inding it di""iclt to create an indi+idal image
that can separate them "rom their competitors% ,his is likely to change so companies can
position themsel+es to target grops sch as #omen& #ho crrently ha+e a +ery lo#
consmption rates in comparison to men% 9+erall the indstry shold contine to gro# sales
de to +ery high sales gro#th "rom emerging economies%
+.2. Com)any Analysis
!n being the "irst mo+er Red Bll has a distinct ad+antage& o+er the years it has de+eloped
strong brand recognition 2 loyalty% !t is ho#e+er becoming a +ictim o" its o#n sccess% ,he
prodct is positioned at a premim price 2 is easily sbstittable& as a reslt there is a
gro#ing nmber o" competitors entering the market 2 nderctting Red Bll% ,his is leading
to a slo# erosion o" its market share& especially "rom Monster Dnergy #ho is no# the market
leader H%S% !n the past the Red Bll branding has al#ays been distincti+e de to its
association #ith e'treme sports sch as sno#boarding 2 motocross& it is ho#e+er losing this
distincti+e image as all the ne# entrants are emlating this approach%
Whereas in the past Red BllGs appeal has al#ays been to the 6:3/0 male segment& it no#
has to look else#here de to the le+el o" competition% ,his is #here Red Bll can car+e ot a
ne# competiti+e ad+antage% !n an e""ort to steal a slice o" Red Blls market share
competitors are entering #ith increasingly more mascline e'treme images% As a reslt Red
BllGs image is no# Iite soft in comparison to its competitors% As a reslt o" its competitors
narro# "ocs Red Bll has the most potential to #iden its "ocs otside o" this segment&
#hile still being capable o" competing in its crrent market%
6<
"ibliogra)y
Ackerman& J%& .56/% .ew /ork Ti#es$ L9nlineM
A+ailable at: http:NN###%nytimes%comN.56/N56N.<NsportsNice3cross3blends3hockey3gear3and3
high3speed3at3red3bll3crashed3ice3#orld3championship%html
LAccessed 6. 9ctober .56/M%
Anon%& .560% L9nlineM
A+ailable at: http:NNenergydrink%redbll%comNred3bll3editions
Bockley& B%& .560% !everage 0aily$ L9nlineM
A+ailable at: http:NN###%be+eragedaily%comNMan"actrersNJppies3drink3Red3Bll3and343
Hor3Dnergy3s3)st3treading3#ater3Monster38D93sggests
LAccessed 6: April .560M%
8a""eine !n"ormer& .56/% 1affeine %nfor#er2 Top -3 4nergy 0rinks$ L9nlineM
A+ailable at: http:NN###%ca""einein"ormer%comNthe3643top3energy3drink3brands
8anadean& .56/% 5.ewswire2 Global energy 0rinks eport +,-6$ L9nlineM
A+ailable at: http:NN###%prne#s#ire%comNne#s3releasesNglobal3energy3drinks3report3.56/3
.0../60/6%html
LAccessed 6< April .56/M%
Dntreprener& .56/% 4ntrepreneur$ L9nlineM
A+ailable at: http:NN###%entreprener%comNencyclopediaNgerrilla3marketing
LAccessed .6 9ctober .56/M%
Drobrand& .560% anking the !rands$ L9nlineM
A+ailable at: http:NN###%rankingthebrands%comN,he3Brand3Rankings%asp'O
ranking!DP..62yearP<76
LAccessed 6< April .56/M%
?DS& .56/% 708$ L9nlineM
A+ailable at: http:NN"ds%op%comN###%op%comNpd"N6/N7;:5677<7<046-chapter6%pd"
!e11i& ,%& .56.% L9nlineM
A+ailable at: http:NN###%"astcocreate%comN6<;775;Nred3bll3ceo3dietrich3mateschit13on3
brand3as3media3company
King& M%& .56/% /ahoo2 7inance ' 9$:$ L9nlineM
A+ailable at: https:NNk%"inance%yahoo%comNne#sNglobal3energy3drinks3indstry3
55555550.%html
LAccessed / April .560M%
Maglo""& >%& .560% 8#all !usiness$ L9nlineM
A+ailable at: http:NNsmallbsiness%chron%comNpremim3pricing3strategy3665;%html
6;
Merrieam3Webster Dictionary& .560% ;erria#'Webster 0ictionary2 4nergy 0rink$ L9nlineM
A+ailable at: http:NN###%merriam3#ebster%comNdictionaryNenergy=.5drink
Montage3Jones& G%& .566% !everage 0aily$ L9nlineM
A+ailable at: http:NN###%be+eragedaily%comNReglation3Sa"etyNRed3Bll3denies3child3
marketing3claims3in3ne#3stdy
Morton& A%& .560% L9nlineM
A+ailable at: http:NN###%)st3drinks%comNne#sNred3bll3adds3red3bll31ero3calories3to3k3
port"olio-id66.;;4%asp'
Aestle& M%& .56/% 7ood 5olitics$ L9nlineM
A+ailable at: http:NN###%"oodpolitics%comNtagNenergy3drinksN
LAccessed .5 April .560M%
Ae#s Reptation& .56.% eputation';etrics$ L9nlineM
A+ailable at: http:NNreptation3metrics%orgN.56.N65N.;Nmonster3energy3drink3"da3probe3
reptation3crisis3measring3the3contagion3e""ect3to3top3o"3mind3brand3red3bllN
$assport& .56/% 4uro#onitor$ L9nlineM
A+ailable at: http:NN###%eromonitor%comNmedialibraryN$D?NRedBll38ompany3$ro"ile3
SW9,3Analysis%pd"
$orter& M% D%& 67:4% 1o#petitive <dvantage$ 6st ed% Ae# Jork: ?ree $ress%
$R Ae#s#ire& .56/% 5.ewswire2 .ew eleases$ L9nlineM
A+ailable at: http:NN###%prne#s#ire%comNne#s3releasesNenergy3drinks3and3shots3s3market3
trends3675<76476%html
LAccessed 6< April .560M%
Radcli""e& S%& n%d% ;ens 7itness2 .utrition$ L9nlineM
A+ailable at: http:NN###%mens"itness%comNntritionN#hat3to3drinkNenergy3drinks3heart3health
Red Bll & .560% ed !ull2 =istory$ L9nlineM
A+ailable at: http:NNenergydrink%redbll%comNred3bll3historyQ+ideoN.//;:::6.4556
Red Bll& .56/% 1o#pany2 ed !ull$ L9nlineM
A+ailable at: http:NNenergydrink%redbll%comNcompany
LAccessed 4 9ctober .56/M%
Red Bll& .560% 4nergy 0rink2 ed !ull$ L9nlineM
A+ailable at: http:NNenergydrink%redbll%comNred3bll3energy3drink
6:
Smirke& R%& .56/% !illboard2 .ews$ L9nlineM
A+ailable at: http:NN###%billboard%comNbi1NarticlesNne#sNdigital3and3mobileN6407764Ni"pi3
digital3msic3report3.56/3global3recorded3msic
,re"is& .560% 7orbes2 8peculations$ L9nlineM
A+ailable at: http:NN###%"orbes%comNsitesNgreatspeclationsN.560N5/N6/Ncoca3cola3in3bra1il3
global3e+ents3and3energy3drinks3cold3dri+e3gro#th3part3.N
Hni+ersity o" Michigan& .56/% 8cience 0aily$ L9nlineM
A+ailable at: http:NN###%sciencedaily%comNreleasesN.56/N6.N6/6.5.6<.64:%htm
Webb& S%& .56.% L9nlineM
A+ailable at: http:NN###%dailymail%co%kNne#sNarticle3..6.<:5NRed3Bll3gi+es3#ings3Sper3
si1ed3energy3drink3%html
Benith !nternational& .56.% >enith %nternational2 5ress elease$ L9nlineM
LAccessed 0 April .560M%
Bmda& A%& .560% <dvertising <ge2 <rticles$ L9nlineM
A+ailable at: http:NNadage%comNarticleNcmo3strategyNso"t3drink3sales3decline3
acceleratesN.7.057N
67
A))endices
A))endi7 I 8 '.!.S.T.!., of te !nergy Drinks Market
'olitical
$olitically the energy drinks indstry is nder scrtiny de to incidents #here Red Bll or
other energy drink consmption has led to deaths sally in con)nction #ith alcohol
consmption% While these deaths are "e# 2 "ar bet#een& they ha+e still recei+ed signi"icant
media attention% By e'tension& the shock o" rare cases& sch as these ha+e cased many
legislators to react #ho are no# beginning to look at restricting its sale (Aestle& .56/*% As
most o" the political matters that a""ect Red Bll are based on restricti+e legislation& #e shall
talk abot this in the >egal section%
!conomic
Dconomically the energy drinks indstry has contined e'panding at a doble "igre rate "or
the last decade& this gro#th has largely been na""ected by the do#ntrn 2 has
otper"ormed other comparable indstries% ,his is Iite a testament to the gro#ing
poplarity o" energy drinks especially as they tend to be "ar more e'pensi+e than sbstittes
sch as co""ee 2 mineral% ,he interesting thing is yo #old e'pect the opposite to be tre
de to declining personal e'penditre #orld#ide de to the .55: "inancial crash% ,he "act is
#orld#ide "igres are masking the slo#ing do#n o" sales in matre economies #hich are
no# belo# the 65= mark& thogh these gro#th "igres are still Iite high the tre gro#th
no# lies in the BR!8S(especially in Soth A"rica* 2 the Middle3east%
Social
Dnergy drinks companies are +ery acti+e on social media sites sch as ,#itter 2 ?acebook&
Red Bll in particlar as it is mentioned in nearly hal" o" all energy drink related t#eets%
Socially the energy drinks brands are seen as cool de to the e'treme sports image 2 team
sponsorships% ,his cool image has helped companies sch as Red Bll become Iite
poplar #ith clbbers& stdents 2 dri+ers% Dnergy drinks ho#e+er recei+e a lot o" criticism +ia
ne# digital media sch as blogs& especially in relation to deaths that #ere cased by
e'cessi+e energy drink consmption in combination #ith spirits% 8onsmption o" alcohol
together #ith energy drinks is Iite poplar amongst stdents 2 clbbers de to the energy
boost& as a reslt this has a doble edged s#ord "or energy drinks companies% Dnergy drinks
companies are also being s#ept p in the general #ellness trend #hich has e'isted "or the
past "e# years& 2 has reslted in the release o" lo# carb 2 sgar "ree options%
Tecnological
!n terms o" technological "orces e""ecting the en+ironment these are mainly limited to
impro+ed man"actring 2 transport capability% !nno+ation in this indstry tends to come "rom
prodct segmentation% ,he most important ,echnological "actor in the Dnergy Drinks !ndstry
is the !nternet% ,his in+ention has allo#ed people across the #orld interact #ith the brands
.5
"rom the com"ort o" their home& #hether it is +iral ad+ertisements to create b11 sch as the
Red Bll Strats e+ent #hich had the largest li+e adience on Jo,be e+er or merely
interacting #ith their social media page%
!n*ironmental
While this cold ha+e come nder the social section& #e decided to keep this separate to
highlight its importance to the modern consmer% While there is certain polltions case by
the man"actring o" energy drinks the !ndstry is +ery "ocsed on package recycling% ,he
most common "orm o" packaging is the alminim can #hich is 655= recyclable% Some o"
the cheapest brands do se plastic packaging "or their larger prodcts sch as 6 litre bottles
bt these again are recyclable 2 are a relati+ely small percentage o" sales%
,egal
>egally #e are seeing increasing measres being taken against all nhealthy prodcts sch
as so"t drinks& especially in relation to ad+ertising at children% Dnergy drinks in particlar are
taking a lot o" "lak "rom political establishments #hich are looking to limit their point o" sale%
,his is do#n to t#o reasons rising obesity amongst children 2 adlts& 2 also the high pro"ile
deaths linked #ith energy drink consmption% While not illegal reglators are looking at
ideaGs sch as sgar ta'es to help redce consmption o" these prodcts% ,here is also
restrictions being placed on ad+ertising at children& #ho are a prime target "or companies
looking to become recognised by consmers be"ore spending habits are set%
A))endi7 II 8 S.9.3.T
Strengts
Market Leader
As market leader Red Bll has a strong brand image 2 the #ord Red Bll has become
interchangeable #ith energy drinks in some contries mch like Hoo+er did #ith Kacm
8leaners% ,his highlights ho# po#er"l the brand is%
Broad Market Presence
Red Bll& as pre+iosly stated is a+ailable in o+er 6<< contries #orld#ide this #ill pro+ide
stable gro#th into the "tre e+en as crrent markets matre%
First Mover Advantage
As the "irst entrant into the market Red Bll has bilt p +ery strong brand loyalty as a reslt%
9eaknesses
Limited Range
Red Bll has mo+ed to recti"y this by releasing its limited Red& Sil+er 2 Ble "la+ors in
.56/ bt its sccess remains to be seen i" it per"orms in relation to its competitors mlti3
"la+ored lines%
.6
Social Stigma
As Red Bll as a #ord is sed interchangeably #ith energy drinks& #hen negati+e reports
arise in relation to energy drinks& Red Bll itsel" tends to take most o" the media "lak rather
than competitors%
3))ortunities
Emerging Markets
Red BllGs #ide market presence represents ma)or opportnities in gro#ing economies sch
as the BR!8S& bt also regionally sch as the Middle3Dast 2 >atin America #here sales
gro#th is e'ceptionally high despite its premim pricing in non3high3income contries
New Production Facilities
Red Bll has positioned ne# man"actring "acilities across the #orld to meet regional
demand #ith this in+estment in place& Red Bll clearly has an ad+antage o+er its
competitors%
Less Masculine Image
As #e talked abot in the main body o" the report Red Bll has a some#hat less mascline
image than its competitors& this may enable Red Bll to make in#ard progress into the
"emale market segment #here energy drinks ha+e traditionally not "ared #ell #ith relati+ely
little competition%
Low Consumption Rates
Red Bll is most "amos "or its slim3line can& bt there is a gro#ing trend to#ards larger cans
to take ad+antage o" the lo# per capita consmption rate o" energy drink consmers& +erss
that o" so"t drinks or co""ee% ,his represents a strong potential area o" gro#th as sers are
already "amiliar #ith the brand%
Treats
Competition
As Stated there is ma)or gro#th potential in the BR!8S& thogh Red BllGs premim prodct
#ill "ace sti"" competition in these ne# markets "rom lo# cost brands sch as 8oca38olaGs
Brn% Dspecially as it may tilise 8oca38olaGs e'isting distribtion net#ork%
Large marketing costs
As #e discssed earlier Red Bll rein+ests /5305= o" its sales back into marketing& this is an
e'tremely large percentage o" Re+ene% Bt this may come do#n as it enters #eaker
..
economies as High 9D8D economies sally ha+e "ar higher marketing costs than those
otside% !t also demonstrates the le+el o" competition "or brand recognition to #arrant sch
e'penditre%
Image Replication
As #e discssed earlier all ne# entrants tend to enter the energy drinks market #ith a more
e'aggerated Red Bll e'treme sports image& this in trn is making it increasingly harder to
distingish bet#een the +arios brand messages%
./

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