Red Bulls Innovative Marketing

Presented bySHARMIN ALAM 10bsp1100 YOGESH MUNDHRA 10bsp1085 BALDEEP SABHARWAL 10bsp1095 MANOJ 10bsp1077

BACKGROUND
y Founded by Dietrich Mateschitz, university graduate in y y y y y

marketing from university of commerce in Vienna. Realized the need of energy drink in European market Krating Daeng, energy drink good at combating jetlag, was launched in European market by Mateschitz. An humdrum product transformed into a happening brand. Thai name Krating Daeng which means Red water buffalo was translated to Red bull. Despite of the poor response during the market research, the product was launched.

Krating Daeng, an energy drink found in Thailand

y Named as red bull to make it suitable for western

Product Description

market. y Packaging changed to slim blue and silver can. y Included ingredients like
1. Caffeine 2. Glucoronolactone 3. Taurine 4. Sugar y Company reported to hold almost 70% of energy drinks

market in 2005. y Position as an energy drink thatinvigorated mind and body-improved endurance level.

Red Bull Energy Drink

y Increases performance y Increases concentration and

reaction speed y Improves vigilance y Improves the emotional status y Stimulates metabolism

Marketing Strategies

Grassroots Marketing
y Innovative method to cut through the clutter

-Gave away free samples -College going, young, athletic, stylish people as brand ambassador -Employed consumer educators -Distributed promotional materials -Answered queries that people might have about Red bull -Made available near gyms and colleges -Aggressively marketed to bartenders and bar owners

Marketing Strategies Contd..

y Developed MET Program-

- MET- Mobile Energy Team - Painted vehicles in blue and silver. - Free cans were distributed where energy was needed.

Mobile Energy Cars

y Sports sponsorship for adventure seeker and risk takers

-

Football

- Kayaking - Hand-gliding - Rough-terrain - Biking - Cliff diving - F1 racing - Promoted driving talent among the youngsters
y

Red Bull was closely associated with Motor racing

Some events Sponsored by RED BULL

Marketing Strategy contd..

y Positioned the brand to the College going crowd as a cool and

happening beverage.
y Built its reputation as party drink y Visibility and availability were the central themes y Media is not the tool that we used to establish the market, its

the critical path.Its just later in the development.- David Rohdy.

y Focused on only one product.

Controversies
y Approval issues y Nature of drink and ingredients y Taurine (acidic chemical substance) y Glucoronolactone y High sugar and caffeine y Followed by banned in France and Denmark

Controversies contd..
y Mixture with alcohol y Lack of company collaboration y Unsuitable for minors: students y Rumours fuelled the sales of red bull y Sponsored website started rumour sections to keep the

myth growing and evolving.

Threats
y Imitation y Emerging competitors

-endorsed by American celebs -smaller brands posed serious competition -sponsored extreme sports and racing stars -variety in competitive product -slogans fly twice as high by the competitor -followed similar strategies -formed relationship with vodka and mixtures -introduced drinks in multiple flavour

Threats contd..
y Growing health consciousness y Low brand resilience y ADA criticised :

-red bull for lacking restorative effect on tired mind body. -contains high in simple sugar and some caffeine. -didnt rate high with customers on taste dimensions

and

Conclusion
y Ranked 7th among top 20 growth brands y Marketing strategies seemed rather simple and easy to pull y y y y y

off Strategies were subtle and successful like no other Successful brand around a rather pedestrian product of questionable merit Flexibility to take a risk as private company Enduring brand with the strength for growth and survival Low brand resilience

Thank you