History of Red Bull

• 1982 – Dietrich Mateschitz, while visiting Asia, started drinking “tonic drinks”, which were very popular in East Asia

• 1984 – Mateschitz founded Red Bull in Austria, fine-tuning the already existing Krating Dang recipe for a European market

• 1987 – Mateschitz started selling Red Bull Energy Drink

History of Red Bull

• To date, over 30 billion cans of Red Bull have been consumed worldwide, in over 160 countries

• Red Bull first expanded to foreign markets in 1989 to Singapore, 1992 to Hungary, 1994 to Germany, 1995 in the UK, and finally 1997 to the USA, starting in California

Growth of Red Bull Globally

• 1987: Available in 1 country• 1992: Available in 3 countries• 1995: Available in 15 countries• 1998: Available in 45 countries• 2001: Available in 73 countries• 2004: Available in 124 countries• 2009: Available in 160 countries

What is It?

• The key ingredients of Red Bull are taurine (1000 mg), glucuronolactone (600 mg), and caffeine (80 mg) in a 250-mL can. The product also contains sweeteners, such as sucrose and glucose.

• All ingredients are synthetically produced by pharmaceutical companies to ensure the highest quality. The composition and ingredients are uniform throughout the world, except for slight variations in vitamin content due to national regulations

Market Background Energy drink fighting arena is very aggressive especially for on ground activities

in order to own TOM awareness as well as sales over time

Consumer target is wide from young adult to much older age, 54. However, key players tend to build equity among younger groups then retain loyalty over time to sustain consumer base

M150 is leading the category with more than 50% share. Krating Dang (REDBULL) is the runner up and it’s not easy to overthrown M150

M150 has invested behind the brand via ATL that aims to the younger groups (15-25 years old males). BTL is segmented in order to attract across all age groups

Brand message are mainly about moral support shadowed with energy boosting mood and tone

Product feature

Sold in a small brown bottle.

The blue label with the bulls running across.

Brand name:KRATING = BULLDANG = RED

Price tag 10 baht (33 cents)

M15055%

Krating Dang18%

CBD10%

Lipo6%

Shark6%

0.3572%

Wrangyer2%

Looktung1%

With brand & strong distribution of M150 is able to dominate market with 55% share, followed by Krating Dang (RED BULL) and Carabao Dang respectively.

Young15+

Traditional

Urban

Brand Positioning

Old 50+

Target Consumer

Demographic

Male 18-40 yrs. Blue collar Urban lifestyle Income 5000-9000 baht ($170-$300 per month)

Psychographic

Optimistic Determine Fight for a better thing Work hard to support their

children education

Target behaviors

GoodsBuy just what they needSeek out promotionElectronic appliances2nd handFake item

FoodRoad side restaurantsStreet stallsTake away foods

MusicCountry, Blue, Local song

Hang out placeHyper marketModern trade

Target insight

Focus on both themselves and other.

Devote themselves to earn as much as they can for family.

Must work hard to build a better life.

The city means to reach their dream.

Integrated Marketing Communication

Brand Personality

Teens Extreme Aggressive Adventure Active lifestyle

Krating Dang (RED BULL) IMC quite to concern with Modern Image, especially in music marketing it focusing in 15 – 25 years olds only. However KTD keep adult age with Thai boxing.

TVC

Radio

Internet

Print advertise

Billboard

Music Event

Sport Event

CSR

Promotion

TVC

Radio

Internet

Print advertise

Billboard

Music Event

Sport Event

CSR

Promotion

TVC

Radio

Internet

Print advertise

Billboard

Music Event

Sport Event

CSR

Promotion

TVC

Radio

Internet

Print advertise

Billboard

Music Event

Sport Event

CSR

Promotion

TVC

Radio

Internet

Print advertise

Billboard

Music Event

Sport Event

CSR

Promotion

Target Market in US

• 18 – 34 Males with an “on-the-go” or “extreme sports” lifestyle

• 34% of 18-24 describe themselves as regular consumers of Energy Drinks

• Around 50% of US College Students in 2009 consumed at least 1 Energy Drink a month for either an Energy Boost, to compensate for lack of sleep, or for boozing (Red Bull Vodka, Jaeger & Rockstar)

Competitors in the US

• Coca Cola – Full Throttle & Rockstar (Distribution Deal)

• PepsiCo – Mountain Dew Amp & SoBe No Fear• Hansen Natural – Monster• Niche Energy Drinks (Low Calorie, Sugar Free,

formulated for Women)

The Cost

• Red Bull (8.3oz) @ Jackson’s : $2.29• Monster (16oz) @ Jackson’s: $2.39• Rockstar (16oz) @ Jackson’s: $2.19• Red Bull is 593% more expensive in the US,

compared to Thailand • Red Bull is 84.7% more expensive, per oz,

compared to Monster, 101.6% for Rockstar

Red Bull Market Share

42.6%

14.4%

11.4%

6.9%

3.6%

21.1%

Sales in 2009

Red BullMonster (Hansen)Rockstar (Coke)Full Throttle (Coke)Amp (PepsiCo)The Rest

It gives you wiiings…

• Red Bull’s aggressive and unique marketing strategy really helped it dominate the US market when it first came out

• Cheap, Cheesy, Cartoon commercials we all remember

• Massive sponsorship and expansion into the extreme sports market, which was also going through a huge boom when Red Bull was introduced to the US (Milk & Cookies)

• Moved to a new ad campaign

Sponsorship & POS

• Bar’s and Nightclub’s have Red Bull coolers• Red Bull Flugtag, Air Race, Cliff Diving, X-Fighters

(motocross), Crashed Ice, Rampage, Paperwings• Red Bull Records• Sponsored Professional Sports (Red Bull New York

MLS, Red Bull Salzburg Austria, RB Leipzig Germany)• Two Formula 1 teams (Team Red Bull & Scuderia

Toro Rosso). In 2010 Red Bull won the Constructor & Driver championship in Formula 1

Going Green

• Over 4 billion aluminum can’s were sold last year• Red Bull tracks the can’s entire carbon footprint

lifecycle• Reduced can weight, increased recycling rates• Increased can transportation by rail & sea,

reducing/replacing road transportation wherever possible

• Using ecologically efficient refrigerators & cooling agents (All coolers they purchase are ECO coolers whenever possible)

Questions?

Sources

• http://www.redbullusa.com• http://onlinelibrary.wiley.com/doi/10.1111/j.1

541-4337.2010.00111.x/pdf• http://wps.prenhall.com/wps/media/objects/

3357/3438371/chapter%20cases/tuckwell_case04.pdf

• www.youtube.com• www.bevnet.com