RED BULL CASE STUDYFocus on Digital Branding Strategy & Initiatives

By Christine Spitler | February 13, 2014

THE BRANDS.W.O.T. Analysis | The Product | The Extended Brand | Strategic Direction

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strengths opportunities

weaknesses threats

S.W.O.T. ANALYSIS

• Iconic Brand

• Industry Leader• Brand Recall• Entertainment Value• Loyal Fan Base• Digital Developments

• Seldom Featuring of Product • Connotations of “danger”• Bad PR from deaths

• Male skew• Niche market• Not recently innovative

• Product Line Expansion

• Skew Demographic Female

• Unique Packaging

• Celebrity/Athlete Endorsement

• Partnership with Alcohol Brand

• Producing a “Natural” Formula

• Non-traditional competitors

infiltrating the market

• FDA regulation

• More approachable “flavorful”

alternatives

• Cheaper alternatives

• Health Concious Consumers

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THE PRODUCT

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THE PRODUCT

Discontinued in

2011

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BRAND EXTENSION6

Video Images are hyperlinked

STRATEGIC DIRECTIONRed Bull North America Inc in Soft Drinks (USA) Company Profile

(July 11, 2013)

• According to the global company website, Red Bull is focusing on the core markets of Western Europe and the US, as well as the growth markets of Brazil, Japan, India and China. The company is also concentrating on the global roll-out of its new Red Bull Editions.

• Red Bull North America has a strong marketing strategy, similar to that of its parent company. Sponsorship of sports events and using all possible channels (including buzz marketing and TV advertising) to capture the maximum young audience is a key strategy. The launch of the Red Bull Magazine (The Red Bulletin) helps the Red Bull community to connect and engage, and it is a clever strategy to retain consumer loyalty. The company also offers on-demand Red Bull TV, with television shows focusing on spectacular sporting and culture experiences worldwide. The brand has an image of notoriety, danger and controversy, and any reference to potentially dangerous ingredients have actually helped to make the product a big hit among its core youth demographic. Its popularity on the nightclub circuit as a mixer with spirits has also played a major role in the brand’s success among its target audience.

Source: Euromonitor International from company reports, company research, trade press, trade sources

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STRATEGIC DIRECTION

Marketing Strategy

• Red Bull has essentially spared no expense in pursuit of its own path to market domination. The company’s philosophy has been to ignore traditional media advertising and marketing (bar its own unique set of comical cartoon adverts), instead channeling money into sporting, music, and cultural events. Its efforts have been so extensive that the number of sportspeople and events sponsored total in the hundreds… with a recent study estimating that spending money on traditional advertising methods to gain the same amount of recognition would cost around double what Red Bull currently invests…Another key indicator of Red Bull's dedication to its brand image is that its own website is dominated by the sports and events it runs, and information about its own products takes on an almost secondary role.

Source: Red Bull: A trailblazer in marketing strategy: Case Studies published by MarketLine on 19 July 2012

http://advantage.marketline.com/Product?pid=ML00007-012

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DIGITAL PRESENCESocial Media Involvement

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SOCIAL MEDIA PRESENCE1.37 MFollowers

Mostly

RTs

Action Content > Product Feature

42.7 MFans

On AVG1 post/day

Mostly

Outdoor/

Adventure

Pics

1.15 MFollowers

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SOCIAL MEDIA CONT’D

Mostly

RTs3.3 MSubscribers

Most Watched Video: 36+ M Views

4 “sister”

channels

Experience the world of Red Bull like you have

never seen it before. With the best action sports

clips on the web and YouTube exclusive series,

prepare for your "stoke factor" to be at an all time

high.

About: Experience the world of Red Bull like you have

never seen it before. With the best action sports clips on

the web and YouTube exclusive series, prepare for your "stoke factor" to be at an all time high.

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Video image is hyperlinked

THE ENERGY DRINK INDUSTRYKey Trends | The Competition | New Growth Opportunities

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KEY INDUSTRY TRENDS

• “…energy drinks continue to blur the line between functionality and refreshment. In the US, 2013 could have been the year of the “soft drink as energy drink” concept.

• PepsiCo launched Mtn Dew Kickstart early in the year. The product, which contains 5% fruit juice, Vitamins B and C, and an extra jolt of caffeine, was positioned as a breakfast alternative to coffee and featured a refreshing taste vastly different from Red Bull and original Monster.

• Kickstart is not considered an energy drink due to lower levels of caffeine and a lack of taurine or guarana, but the positioning is the same.

• “…consumers wanting both the functionality and flavor for their carbonated pick-me-ups. “

Quoted from “Soft Drinks – New Product Launches, January 2014”

by Jonas Feliciano Analyst – Beverages | Euromonitor International 2014

http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx

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THE COMPETITION

TRADITIONAL NON- TRADITIONAL

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THE COMPETITION

Red Bull’s Growth in Brand Share

Brand Share (Sports AND Energy Drinks)

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NEW GROWTH OPPORTUNITIES

• Redefining Product Category

• Promotion of New/Alternate Uses (i.e.- Alcoholic Mixer, Morning Breakfast Staple)

• Developing a New Approachable Product

• Merges “functionality and flavor”

• Targets consumer afraid/ skeptical of traditional “energy drinks”

• Incorporate More Interactive Story-based Marketing of Loyal Product User.

• Similar to strategies used by loyal car users (i.e.- Toyota loyalist family)

• Feature up-and-coming artist who drinks Red Bull before every performance.

• Record story of BMX athlete who trains with a Red Bull always handy.

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