TUGAS GLOBAL MARKETING MANAGEMENT

1417203009_WIDYANASARI SHELAWATY

Case 14-1

Red Bull
Dietrich Mateschitz, Red bull's creator, trusted his entrepreneurial: a little bit instead of
relying on traditional marketing research. The u.s. Mateschitz recalls, "When we first started, we
said that there is aot an existing market for Red Bull, but Red Buil will create it. And this is what
finally became true. In other words, Mateschitz succeeded at accomplishing one of the most basic
goals in marketing: the Hades cover ered a market segment with needs that weren't being met by
any the existing product. Today, Red Buil's blue-and-silver cans emblazoned with the iconic
charging bulls logo are recognized around the globe. Mateschitz's marketing a little bit have made
him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on
billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising
strategies and tactics. "We were always looking for a different, more creative point of view, " he
says. For example, Red Bull utilizes a communication tool known as marketer-produced media.
The Red Builetin is a monthly magazine produced by Red Bull The Media House. Red Bull
distributes more than 3 million copies of earth issue through newsstand sales, subscriptions, and as
a free iPad asp. The magazine is available in Austria, Germany, Great Britain, Kuwait, New
Zealand, Poland, and South Africa. in 2011, The Red Bulletin was launched in the United States;
1. 2 million free copies were distributed in major newspapers such as The Los Angeles Times, The
Chicago Tribune, and The New York Daily News. The first U. S. issue featured San Francisco
Giants pitcher Tim Lincecum, one of hundreds of ath- letes who are sponsored by Red Bull. The
u.s. publisher Raymond Roker put it, *We are entering a new age of media in terms of what
consumers of content want and expect.
" Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull
Music Academy is a series of concerts, work- shops, art installations, and other cultural events that
rotate from year to year among different international cities. Red Bull Music Academy also
sponsors stages at international music festivals such as Montreaux Jazz, RBMA Radio is a Web
resource where listeners can access new music, live concerts, interviews, and other content.
Despite the name Red Bull plays down its participation in the Academy, according to the Website,
*Theme Red Bull Music Academy is not a sponsored event but a long-term music initiative,
commit[that to fostering creative exchange amongst those who have made and continue to make a
difference in the world of sound. "Needless to say, the Red Bull logo is visible everywhere, and
coolers filled with the drink are placed in the strategic locations.
In its first two years of existence, the Acaderny was held in Berlin subsequent host cities
have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, Dis,
producers, and musicians are invited to apply to the Acaderny, out of thousands of applicants, 62
people are selected to participate each year. The participants attend workshops and lectures during
the day, in the evenings, they break into teams to write and record music. Red Bull makes no
ownership daims on any music that is produced at the Academy. The u.s. Torsten Schmidt, one of
the academy's founders, explains, 'That's part of the opening speech: there is no catch. We are
going to offer you nothing in the end but the inspiration and this chance of being here together.
in 2013, the Red Bull Music Academy returned to New York City for the first time since
2001. Many of the workshops and iectures were open to the public; for example, a panel
discussion featuring veteran music producer Nile Rodgers, Tony Visconti and Ken Scott was
devoted to David Bowie studio recordings. There were presenta- twins and performances by
industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna
summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way. "The
people behind The academy, they're not just the 'suits'; they are really special people who are

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passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with
them. "Still, there are some drssenting voices. Matthew Herbert is a British electronic musican
whose recordings include "One Pig. an album cataloging the life (and death) of, well, one pig.
Hellas participated in the Red Bull Music Academy in the past, but has no plans to do so in the
future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always
louder than the art. I don't think one would come away from any interaction with them thinking
that they were interested in anything else other than selling caffeinated sugary drinks, he said.
Nirmalya in Distress, a marketing professor at the London Business School, has written a case
study on Red Bull titled "The Anti-Brand Brand. "Kumar gives Red Bull high marks for its
nontraditional marketing communication strategy. As Kumar explains, "Part of being a great
brand is conveying what you stand for in an authentic man- ner so consumers find it believeable.
The music academy and the [Baumgartner] air show have given Red Bull a lot of that.

Discussion Questions

14-10. What is the critical thinking issue raised by the case?

14-11. Summarize the different types of marketing communications that Red Bull uses. Are these
"traditional" or "nontraditional"?

14-12. What communication goal does each of Red bull's marketing communication tools
accomplish? Are you familiar with any addtional brand touch points that aren't mentioned in the case?

14-13. What is the risk of sponsoring a special event such as Felix Baumgartner's historic skydive?

14-14. Red Bull and other energy drinks have generated megative publicity regarding the possible
health hazards. Discuss.

14-15. What makes Red Bull, in Professor kumar's words, an "anti- the brand "?

Sources: Ben Sesario, "Live Music and a Canned Patron," The Now Nonk Tamas (April 26, 2013), p.
Cs; William M. Waildry, Skydivers, Space Jump Pays Off for Rod Buil, USA Foday (October 23,
2012); The NatIves, the "Red Bull Brings its Monthly Magazine, Mod Bulletin, to tha U. S.
Advertising Age (May 8, 2011); Kamy A. Colon, "The Soda with Buzz, For ber March 28, 2005), pp:
126-130.

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ANSWER :

14-10. The critical thinking issue raised by the case is alternatives to advertising
strategies and tactics market research.

14-11. The type of marketing communication used by Red Bull is traditional marketing
research. Dietrich Mateschitz, Red bull's creator, trusted his entrepreneurial: a
little bit instead of relying on traditional marketing research. The u.s. Mateschitz
recalls, "When we first started, we said that there is aot an existing market for
Red Bull, but Red Buil will create it. And this is what finally became true. In
other words, Mateschitz succeeded at accomplishing one of the most basic goals
in marketing: the Hades cover ered a market segment with needs that weren't
being met by any the existing product. Today, Red Buil's blue-and-silver cans
emblazoned with the iconic charging bulls logo are recognized around the globe.
Mateschitz's marketing a little bit have made him a wealthy man; in 2005, for
example, he was featured in Forbes magazine's cover story on billionaires.

14-12. Communication goal each of Red bull's marketing communication is with

typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox
advertising strategies and tactics. "We were always looking for a different, more
creative point of view, " he says. For example, Red Bull utilizes a
communication tool known as marketer-produced media. The Red Builetin is a
monthly magazine produced by Red Bull The Media House. Red Bull distributes
more than 3 million copies of earth issue through newsstand sales, subscriptions,
and as a free iPad asp. The magazine is available in Austria, Germany, Great
Britain, Kuwait, New Zealand, Poland, and South Africa. in 2011, The Red
Bulletin was launched in the United States; 1. 2 million free copies were
distributed in major newspapers such as The Los Angeles Times, The Chicago
Tribune, and The New York Daily News. The first U. S. issue featured San
Francisco Giants pitcher Tim Lincecum, one of hundreds of ath- letes who are
sponsored by Red Bull. The u.s. publisher Raymond Roker put it, *We are
entering a new age of media in terms of what consumers of content want and
expect.”

14-13. The main risk that will occur when changing marketing messages based on
geographical context, will eliminate the consistency of the ad itself, which will
ultimately weaken the awareness of the Red Bull brand in the eyes of
consumers. This is evident when Red Bull entered the UK market by making

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changes to the marketing message, Red Bull was not able to raise brand
awareness for the energy drink category because it was unable to compete with
LACO energy drinks that had been embedded in consumers' minds. What might
be done by Red Bull if it enters other countries in creating their equity is to
expand the market segment based on age because it is proven that Red Bull is
categorized as a market trap in countries that already have energy drink
products. Red Bull uses advertising media such as television, cinema, radio, and
the internet. In other words the company focuses on media that are often used by
young people as the target market. Therefore the company applies the sponsor
strategy in its marketing mix. Sponsors support product image, credibility and
visibility. On the one hand Red Bull joins sponsoring extreme sports as his
target, namely athletes such as Felix Baumgartner's historic skydiving or fun
sports, where Red Bull needs athletes. This strategy contributes to Red Bull
which gives rise to brands (logos and stickers), so that the product market target
is more precisely defined by consumers. Red Bull does not sponsor events. The
company creates its own activities (ie Red Bull Academy of Music) where all
activities are promoted by Red Bull or they promote other activities (ie Speed
Ski World Championship). Finally, sponsor activities attract people's attention to
products and connect them to products.

14-14. Research shows that a can of popular energy drinks might increase the risk of
heart damage. A study conducted on students between the ages of 20 and 24
years found that drinking one can / bottle of caffeinated energy drinks can
increase blood viscosity / viscosity and increase the risk of blood clots forming.
Australian students, who were targeted in this study, showed a cardiovascular
profile similar to someone with heart disease after drinking one can. Red Bull
denies that drinks, which are sold in 143 countries around the world, are
dangerous.

14-15. Nirmalya in Distress, a marketing professor at the London Business School, has
written a case study on Red Bull titled "The Anti-Brand Brand. "Kumar gives Red
Bull high marks for its nontraditional mar- . communication strategy. As Kumar
explains, "Part of being a great brand is conveying what you stand for in an
authentic man- ner so consumers find it believeable. The music academy and the
[Baumgartner] air show have given Red Bull a lot of that.”