Company background

• Founded in 1985 by Dietrich

• Got idea of energy drink from Asian
countries visit.
• Launched Red bull energy drink in 1987 with
slogan meaning “Red bull gives you wiiings”.
• By 1997 it was available in 25 global market.
 About the Product
• Essentially invented the functional
beverages category.
• It means it is mean to consume for
energy not for enjoyment.
• It contains ingredient like caffeine,
taurine and glucuronolactone.
• Along with this three ingredient variety
of sugar & vitamins also contributed.
 Advantage of Red bull
• Improve physical endurance
• Stimulates metabolism and helps
eliminates waste substances.
• Improves overall feelings of well being
• Improve reaction , concentration and
speed.
• Increase mental alertness
 What make it different from
others?
• Flavor : Sweet and carbonated and medicinal taste.
• Package : Available in single package slender blue
& silver 250 ml can.
• Logo :an Oriental themed depiction of two red bulls
about to collide head on front of yellow sun.
• “Energy Drink” successfully communicated product
benefit.
• Also available in brown glass bottle where it
couldn’t list can.
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• Target Audience:
– Not define specific demographic or
psychographic segment.
– Appeal only those people who are mentally or
physically fatigued
– Overworked executives/businessmen
– Truck drivers, clubbers, sports people
– “Hip”, younger generation 14-19, 20-29 age
• 65% of US teenagers (7.6 million teens) say they
drink energy drinks
• Number of teenage consumers has increased by 3
million over the past 3 years
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• Positioning :
– “ Position as revitalizes body and mind”
– Consumer can drink whenever he want to lift whether in
morning , evening or in night.
– Elastic positioning. Not specified consumption occasion.
• Price :
– Premium pricing strategy.
– It set price at least 10% greater than the most
expansive competitor.
– Price between $1.99 and $3.00 in convenience store.
 Advertising Expenditures
• Use distribution as a marketing tool - fashionable
night clubs, convenience stores, and gas stations,
College campus.
• Red Bull increased it’s advertising expenditures
from $2 million in 1998 to more than $40 million in
2003. In 2004, Red Bull spent $600 million
• Energy drink companies market themselves
around extreme sports and adventure. Red Bull
supports 240 athletes worldwide to help promote
their product.
 Competitors
• Industry is dominated by one product - Red Bull
• Rockstar is strongest non-Red Bull brand (distributed by
Coca-Cola)
• Followed by Monster (distributed by Hansen)
• SoBe (distributed by PepsiCo)
• Xyience first launched energy drinks in 2006
 Source of Brand Equity
• Energy category is new brand for customer
• Word of mouth publicity
• Available red bull at sports competition.
• Functional food in Austria – medicinal benefits
• Athlete endorsement , event sponsorship.
• Point of purchase marketing.
 Strength
• Strong, fresh, fashionable brand identity
• Energy drink different from other beverages
• Non-descript consumer makes for infinite market.
• High revenue with price set 10% higher than
normal
• soft drink due to drink’s function adding value
• 99% global market share
 Weakness
• Controversy about the ingredients of
the product.
• Competition came from new hybrid
drink market segment.
• Product is not patented so can be
easily copied.
 Reasons of success
• New Concept
• Health related concept
• Point of purchase strategy
• Marketing activity is good enough to
aware the people about the product
 Maintaining Market Share
• product of the company's innovative
marketing efforts.
• Products ranged from regular
carbonated energy drinks through to
“Energy Shots” with 25 new versions
• When companies start out with one
product, they later diversify or update
the existing range to keep consumer
interest
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• 1st use selling concept : use buzz
market to promote product by giving
free samples.
• After establishing itself it use Product
concept: promote as a energy drink
which giving you wiiing.
• Finally use marketing concept: By
reaching their target audience
successfully than competitor.