1) Red Bull was founded in 1987 when an Austrian entrepreneur was inspired by an existing Thai energy drink. It launched first in Austria and has since expanded to over 171 countries.
2) Red Bull uses an unconventional "murketing" strategy of sponsoring extreme sports and youth culture events rather than traditional advertising. This has helped create a mystique around the brand.
3) In 2017, Red Bull sold over 6 billion cans worldwide, representing continued growth. However, its core markets in Western Europe and the US are now mature, so it aims to expand further in Asia.
1) Red Bull was founded in 1987 when an Austrian entrepreneur was inspired by an existing Thai energy drink. It launched first in Austria and has since expanded to over 171 countries.
2) Red Bull uses an unconventional "murketing" strategy of sponsoring extreme sports and youth culture events rather than traditional advertising. This has helped create a mystique around the brand.
3) In 2017, Red Bull sold over 6 billion cans worldwide, representing continued growth. However, its core markets in Western Europe and the US are now mature, so it aims to expand further in Asia.
1) Red Bull was founded in 1987 when an Austrian entrepreneur was inspired by an existing Thai energy drink. It launched first in Austria and has since expanded to over 171 countries.
2) Red Bull uses an unconventional "murketing" strategy of sponsoring extreme sports and youth culture events rather than traditional advertising. This has helped create a mystique around the brand.
3) In 2017, Red Bull sold over 6 billion cans worldwide, representing continued growth. However, its core markets in Western Europe and the US are now mature, so it aims to expand further in Asia.
1) Red Bull was founded in 1987 when an Austrian entrepreneur was inspired by an existing Thai energy drink. It launched first in Austria and has since expanded to over 171 countries.
2) Red Bull uses an unconventional "murketing" strategy of sponsoring extreme sports and youth culture events rather than traditional advertising. This has helped create a mystique around the brand.
3) In 2017, Red Bull sold over 6 billion cans worldwide, representing continued growth. However, its core markets in Western Europe and the US are now mature, so it aims to expand further in Asia.
Red Bull – 31 Years and Still Counting or Red Bull – A company which had glorious 31 Years
Introduction
The company behind the can – It all started in the year 1987 when Austrian entrepreneur Dietrich Mateschitz was inspired by an existing energy drink named Krating Daeng, which was first introduced and sold in Thailand by Chaleo Yoovidhya. He took this idea, modified the ingredients to suit the tastes of Westerners and in partnership with Chaleo, founded Red Bull GmbH in 1987 in Chakkapong, Thailand. In Thai, daeng means red, and krating is the word used for a large bovine animal called a gaur in formal English. In colloquial English, a gaur is more commonly called a bull.
In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in 171 countries and over 68 billion cans of Red Bull have been consumed so far.
Murketing
Well, you must have heard the word “Marketing” which means the action or business of promoting and selling products or services, including market research and advertising. Now, allow us to welcome you to XIMB by introducing you to the word “Murketing” – a portmanteau of "murky" and "marketing," which was coined by author Rob Walker. Murketing is an advertising strategy that avoids direct sales of a product and focuses instead on vagaries such as marketing buzz, brand identity and publicity. Well known examples of murketing include the launch of Red Bull, which promoted stealth events and competitions that had little to do with their actual product. The use of viral videos, often unattributed or only indirectly attributed to a brand or company, is also considered a "murketing" technique.
“In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi. Red Bull is building a beverage brand without relying on the essential equipment of a mass-marketing campaign. Perhaps the indispensable tools of marketing aren't so indispensable after all." - Nancy Koehn, Professor of Business Administration at Harvard Business School, in 2001.
Here are some tools that Red Bull doesn't use: billboards, banner ads, taxicab holograms, blimps, Super Bowl spots. Even its TV spots --all of which feature the whimsical sketches of a mysterious Austrian artist --serve more to amuse than to educate or entice consumers. Like its product, Red Bull's branding campaign is sleek and small. Its efforts do not atrract a lot of attention yet provide a startling return on investment. Red Bull sets its grassroots ethic into motion with a simple, yet masterful marketing force: student brand managers. In Europe, collegiate buzz junkies have been successfully addicting friends and classmates for years thanks to a foolproof branding plan: Red Bull provides the student representatives with free cases of its energy drink and then encourages the kids to throw a party. (Needless to say, it didn't take long for coeds to discover the benefits of Red Bull and vodka, now a staple at hip bars around the globe.)
In the meantime, Red Bull is simply working to keep tabs on all the rumors circulating about its beverage. Some reports claim that Red Bull is unsafe for minors. Others link the drink to the deaths of various teenagers around the world. France has banned the sale of Red Bull altogether. Consumers don’t appear concerned. In clubs and dorm rooms everywhere, Red Bull remains a popular drink among popular kids. Gobé says that the rumors only contribute to the brand's mystique. "Red Bull is not about safety," he says. "The brand's emotion is over the edge; it's pushing the envelope. Danger is part of the deal. If you can survive Red Bull, you are cool."
Marketing Strategy
Red Bull is sold in a tall and slim blue-silver can, while Krating Daeng is in a shorter gold can. The two are different products, produced separately. The Red Bull company slogan is "Red Bull gives you wings". Rather than following a traditional approach to mass marketing, Red Bull has generated awareness and created a seductive 'brand myth' through proprietary extreme sport event series such as Red Bull Cliff Diving World Series, Red Bull Air Race, Red Bull Crashed Ice and stand-out stunts such as the Stratos space diving project.
Red Bull's marketing arsenal also includes multiple sports team ownerships (Flying Bulls [actually owned by Dietrich Mateschitz], RB Leipzig, FC Red Bull Salzburg, Red Bull Brasil, New York Red Bulls, Red Bull Racing, Scuderia Toro Rosso), celebrity endorsements, and music, through its record label Red Bull Records.
Red Bull's international marketing campaign targets young men mostly with extreme sports. These range from mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, rowing, wakeboarding, cliff-diving, parkour, surfing, skating, freestyle motocross, rallycross, Formula 1 racing, NASCAR racing, to breakdancing. Red Bull uses music and videogames, and has enlisted celebrities, such as Eminem (sponsoring the Red Bull "EmSee Battle Rap championships"). It hosts events like art shows and the "Red Bull Flugtag" (German for "flight day" or "flying day").
Red Bull owns football teams, with clubs in Austria, Germany, the United States and Brazil featuring the Red Bull trademark in their names. By associating the drink's image with these activities, the company seeks to promote a "cool" public image and raise brand power. The energy drink has created a market for over 150 related types of products.
Problem
A total of 6.302 billion cans of Red Bull were sold worldwide in 2017, representing an increase of 4.0% against an already very successful 2016. Taking into account price fluctuations, company turnover even witnessed a 4.2% increase from EUR 6.029 billion to EUR 6.282 billion. In terms of sales, revenues, productivity and operating profit, the figures were up once again and represent the best in the company's history so far. The main reasons for such positive figures include outstanding sales in the Red Bull markets in Turkey (+34%), India (+15%), The Netherlands (+15%), Northern Europe (+13%) and the UK (+13%), combined with extremely efficient cost management and ongoing brand investment.
In terms of future expansion, Red Bull is focusing on the core markets of Western Europe and the USA, growth markets in the Far East and, after demonstrable success on the Austrian test market, on the further roll-out of the Red Bull Organics range. However, these markets are highly mature.
The big markets which Red Bull is currently ignoring are India, Pakistan and China. If the company, which supposedly “Gives You Wings”, can spread its wings here, it can earn profits beyond the limits. QUESTIONNAIRES
1) Make a SWOT(Strength-Weakness-Opportunity-Threat) analysis of the company
2) Analyze the Political, Economic, Social and Technological (PEST Analysis) Environments of these countries 3) Suggest some promotion schemes – it can be completely new or revamping of the current techniques 4) What differentiates Red Bull from the other players in the market? 5) Can the current strategy of the company backfire in India where people are risk averse?
(Make a Presentation of maximum 10 slides excluding cover page and Thank you slides)
