Getting WingsIntegrated Marketing Communications - 4372-01

November 7, 2013Group3

Kirk TeegardinAradit RiveraKarla Garcia

Erika BenavidesJose Oscar Manjarrez

HISTORY:

Red Bull was created by Dietrich Mateschitz. Before creating Red Bull, Dietrich worked at Unilever and Germany’s Jacobs Coffee. The experience he had acquired lead to him becoming the marketing director for Blendax, a company that was later purchased by Procter and Gamble. Dietrich’s job had him traveling all around the world which led to excessive jet-leg. It was one day after flying that he cured his jet-lag problem with a popular Asian energy drink. In 1984, he decided to quit his job and team up with Chaleo Yoovidhya, each investing five hundred thousand dollars, to come up with a new energy drink. Red Bull brand was designed with an enhanced flavor to appeal to westerners. Red Bull was officially launched on 1987, near Salzburg, Austria. They currently only sell energy drinks. While there are several different flavors of the drink, the brand still sells only one product. Many people are aware of this brand due to the extravagant means of marketing and advertising done through sports. (Forbes.com)

In 1988, Red Bull began its trend of sponsoring extreme sports with hosting the Red Bull Dolomitenmane. This was a race created by Red Bull to be one the toughest relay races in the world; contestants competed in a race against each other, and the clock, in several events such as: mountain racing, paragliding, kayaking, and mountain biking. Since they start of this event, Red Bull has hosted this yearly event for sport enthusiasts.

The following year, Red Bull sponsored its first motorsport athlete, Gerhard Berger. With his previous win in Formula 1 racing in 1986, Red Bull picked up this athlete; which the company would later end up sponsoring some of the most talented athletes in the world. The next several years were filled with Red Bull becoming more known and popular with sport athletes.

In 1992, Red Bull hosted the first Red Bull Flugtag. This event took place in California where participants would construct a homemade, human powered flying machine and pilot them off of a six foot meter high deck in hopes of actually flying. The name of the event in German means "Flying Day," which seems appropriate given that people are trying to fly. People were judged not only off of their flying capabilities, but also creativity, and showmanship. The first cartoon advertisement for Red Bull also made its first appearance this year. The ad was created by Kastner and Partners which marked the beginning of the Red Bull cartoon strategy. The advertisement suggested a question to the audience of whether or not Leonardo De Vinci invented Red Bull by showing him paint the famous Red Bull energy drink. Unfortunately, it was not until 1994 when Red Bull had an ad outside of Austria.

The first ad to appear outside of Austria appeared in Hungary, which continued the support of the cartoon strategy, in 1994. This ad displayed a prince frog giving a Red Bull to a princess. Red Bull also began its sponsorship of national athletes by sponsoring windsurfers Bjorn Dunkerback, from the Netherlands, and Robby Naish, from the United States.

By the time 1995 came around, Red Bull was beginning to for known throughout the world. This brand expanded into sponsoring another means of extreme sports for the first time, Formula 1 Racing. Red Bull created a ten year sponsorship for the team Sauber. This team highest rating was eventually achieved in 2001 by being ranked fourth. The year 1995 also had

one of Red Bull's recent endorsements win a championship. Martin Freinademetz won two ISF snowboarding competitions.

In 1997, Red Bull created a new event similar to the Flugtag called the Red Bull Cliff Diving World Series. In this event, competitors jump off cliffs into the water and are judged based on their performance. The judging system is similar to the Olympics diving competitions. This event has since expanded to taking competitors to many different cliff diving locations throughout the world. Like other sports, these cliff diving events take place over a time period, giving the Red Bull brand recognition anywhere it goes.

Red Bull, gaining brand awareness, introduced the Red Bull Academy of Music in 1998. This academy served to recognize the best up-coming music producers, singers, event arrangers, DJ's and musicians. This event has been held every year since then at many different locations throughout the world.

Many people associate the brand Red Bull with flying and other incredible feats involved with aerodynamics. In 1999, Red Bull began to incorporate parachute jumping and airplanes in getting their brand recognized Red Bull created the King of the Air event which was the first international kite boarding event. In this event, kite boarders would fly up to forty feet in the air, over one hundred feet in distance, over water while tugging onto a Red Bull parachute. During this year, in Kuala Lumpur, Malaysia, Baumgartner broke a world record of achieving the highest base jump from the world's tallest building, at the time, from the Petronas Towers. Meanwhile in Salzburg, Austria, a group of aviation enthusiast created The Flying Bulls. This aviation team conducts marvelous flying feats, such as flipping in a helicopter; baring the Red Bull logo.

The year 2000 began with another creation of events for Red Bull. They created a Red Bull Soapbox derby which was first held in Belgium, Germany. Competitors would create man-powered vehicles, raging against the clock down a course. Red Bull this year also had its free live televised event with Red Bull Down Hill Extreme. This event featured athletes of incline skates and long boards competing down Table Mountain in Cape Town, South Africa. Another milestone that occurred this year was Red Bull launching in the Middle East with a commercial featuring Aladdin which was accepted very well.

In 2001, the Red Bull Rampage event was created. This event is a very deadly event where athletes go down a mountain on mountain bikes and up several ramps, competing for the highest score. ESPN's X-Games also had Red Bull X-Fighters which was a new concept mixing freestyle motocross in an arena type environment. Since then, the X-Fighters have had events throughout the world. Red Bull also created a new type of race called Red Bull Crashed Ice. This event features athletes racing on ice down a 300 meter obstacle course full of jumps, gaps, and sharp turns.

The previously mentioned Flying Bulls aviation team in 2003, had Hanger-7 created at Salzburg airport featuring many of the teams airplanes and helicopters displayed for the public. Two new extreme events were created this year as well. The X-Alps is a competition where athletes race against each other over the Alps mountain range. Initially, twelve started this event,

and only three completed the event with the others giving up. They start on Austria's Dachstein glacier and finish their one thousands two hundred mile journey in Monaco, France. The other event created in 2003 by Red Bull as the Red Bull Air Race. This event, featured originally in Austria, has pilots racing at top speeds between set cones. The aviators involved in the competition race against the other pilot's time with a huge crowds watching them.

Red Bull again, in 2004, created a new event with the birth of the Red Bull BC One. In this event, people compete in a break dancing competition. This event is now similar to the Red Bull Cliff Diving World Series since it now has many different levels and competitions leading to the finals.

The following year, 2005, Red Bull began its first very own Formula 1 race team. The company purchased the assets of Jaguar Racing with David Coulthard in charge of team. The team had two drivers, Christian Klien and Vitantonio Liuzzi. In the first year, the team was able to be in top ten numerous times. Red Bull also created an event known as the Red Bull's Elevation which pushed BMX-dirt riding to the next level. In the contest, riders would perform all new jumps and tricks similar to motocross.

By the year 2006 came around, Red Bull was becoming a well known brand throughout many countries. They were constantly coming out with new events and extreme events that would bring in many people to watch them, all while being exposed to the Red Bull logo. This year, Red Bull reconstructed a Mercedes tour bus into creating the Red Bull Tourbus. This bus also features a stage on top of the bus with nightliner facilities inside the bus. Germany has adopted this into using it for showcasing the release of new albums as well as several established band performances. This year also marked the year that Red Bull officially got its own car and team into the United States NASCAR. Another unique event created was the Red Bull Paper Wing's competition where people compete to construct a paper airplane with the longest flight distance, acrobatics tricks, and longest flight time. In the first year this event was introduced, over ten thousand people competed in over fifty countries.

The previously mentioned Red Bull Air Race in 2007 brought in over one million people to witness the competition in Rio De Janerio, Brazil. At the time, this was a new record for attendance in a Air Race Series and in Brazil's sporting history. Red Bull expanded its musical endeavors with creating the Red Bull music studio in Los Angeles, Red Bull Records, and the Red Bull Soundclash event. The Soundclash event is where two bands play on opposite ends to a single audience. It serves as a battle of the bands type of competition and the audience picks their favorite band.

In 2008, Red Bull expanded its music studio's by creating another studio in Cape Town, South Africa. This gave Red Bull an exotic place to record new musical artists. Later in the year, Sebastian Vettel won first place for Red Bull in Formula 1 racing's Italian Grand Prix at Monza. He became the youngest person to ever win and the youngest person to ever get placed into the leader boards. He won another race in 2009. This time he won the Chinese Grand Prix. This same year he was highly ranked eventually placing second in the Drivers Championship.

The year 2010 was a historic year for Red Bull with the opening of the Red Bull Arena in New York. Red Bull also purchased a soccer team naming it the New York Red Bulls. In London, Red Bull opened up another music studio in order to increase the range of music provided. Red Bull's Air Race was also hosted for the first time in New York City, having many people attend the event. Sebastian Vettel and the Red Bull team one its first Formula 1 racing championship giving Red Bull exposure to many consumers.

Red Bull had many of its athletes win many competitions in 2011. Sebastien Loeb became the first driver ever to secure eight championships in a row in rally racing. Alexis Thompson, a Red Bull sponsored golfer, became the youngest person to become the winner of the Ladies Professional Golf Association. Sebastian Vettel, and his team one their second Formula 1 racing championship. One of the original events, Red Bull's Flugtag, reached its one hundredth Flugtag event by hosting them around the world throughout the years.

In 2012, for the first time, one of Red Bull's artists, Awolnation, had its song "Sail" go platinum. Sebastein Loeb continued winning, receiving his ninth straight win in rally racing at Los Angeles X-Games. Sebastian Vettel also won in the Formula 1 Racing Championship, making his team highly recognized for winning three years in a row. A huge feat that was accomplished is also the Red Bull Stratos mission. Felix Baumgartner and his team managed to construct a huge air balloon that ascended to one hundred and twenty-eight thousand feet taking him to the edge of space. Felix was in a space suit and jumped off of the balloon craft. This event contributed to important scientific data that has been used to help develop space suits. (Redbull.com)

Currently in 2013, Red Bull still continues to host events throughout the world. The company has numerous websites giving information on the many different events Red Bull hosts. Since Red Bull started in 1987, the company has become a huge success making the original owners billionaires. Red Bull is now available in over one hundred sixty-five countries and has sold over thirty-five billion Red Bull energy drinks. With all of the endorsements, events, and other means of event promotion, Red Bull has made its brand one of the most recognized brands throughout the world. Everywhere consumers turn, they witness Red Bull's logo which signify that they too can get wings by drinking Red Bull. (Forbes.com)

RED BULL’S PRODUCT LINE:

Red Bull likes to put its entire focus in just the Red Bull Energy Drink brand along with some other sugar free varieties. The following products that Red Bull has to offer are the following:

Red Bull Energy Drink:

The Red Bull Energy Drink is the original product with which the company became known for. With this product Red Bull opened up the energy drink market and has maintained its leadership in the market since then. The ingredients that this product contains are caffeine, taurine, B-group vitamin, sucrose and glucose, alpine spring water.

Red Bull Sugarfree:

Red Bull Sugarfree is the same as the original Red Bull Energy Drink and provides the same benefits; the only difference is that it has no sugar. This energy drink is only three calories per 100 ml, it contains the same ingredients as the original Red Bull but sucrose and glucose are replaced with aspartame and acesulfame K which are artificial sweeteners.

Red Bull Total Zero:

Like Red Bull Sugarfree, Red Bull Total Zero serves the same purpose as the original Red bull and the same benefits. This energy drink however contains zero calories, zero sugar, and zero carbs. This drink was developed for the people that are active and want a boost in their performance without having to worry about calories, sugar, and carbohydrates. The ingredients Total Zero contains are caffeine, taurine, B-group vitamin, aspartame, sucralose, acesulfame K, and alpine spring water.

Red Bull Editions:

The Red Bull Editions come in red, silver and blue. All three editions provide the same effect but with a different taste. These Red Bull editions let consumers of this energy drink choose from three different tastes of lime, blueberry, and cranberry. The red edition has a taste of cranberry, the silver of lime, and the blue gives consumers the taste of blueberry.

All these energy drinks serve the same purpose which is to vitalize the body and mind. The product is design to give you the energy you need to get things done, especially when engaging in something that requires a high level of performance. Red Bull recommends drinking any of the beverages above when you are in a situation in which you have a long journey to travel and you have to drive or when you have long lectures and study sessions that require you to be fully awake and active. Another reason for drinking it may be for athletic performance, which is one of the main reasons why Red Bull products are known. Though the products may vary in some of the ingredients and taste, they are all part of the Red Bull brand offers.

MARKETING COMMUNICATIONS:

Targeting:

Much of Red Bull’s marketing is done through sports which tells us a lot about Red Bulls target consumers. Their main target consumer is people who watch sports; they even narrow it down for us by hosting their own extreme sports competition. People who watch or are involved in extreme sports are usually young, under the age of thirty. Research has shown that 53% of the people who drink energy/ sports drinks are within the age between 14-34 years.

Because Red Bull is an energy drink, they do not limit their target consumers to just sports enthusiasts, they also target anyone who may need an extra pep in their step like truck

drivers, students, teachers and so on. Red Bull is not just an energy drink; it is primarily a utility drink to be taken against mental or physical weariness or exhaustion. Drinking Red Bull helps increase endurance and heightens alertness as well as reaction. Generally spoken, the use of Red Bull helps cope with every day challenges like work, leisure and sports.

Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over one hundred and fifty countries. It would be not very useful to restrict the target market to the geographic areas as well as the psychographic segmentation for the targeted consumer. For a product like Red Bull, it would be far too narrow as it cuts across lifestyles, demographics and socioeconomic boundaries. The best solution would be to set the target market as a behavioral segmentation.

Red Bull’s target group is not determined by a demographic, but by a “state of mind.” Red Bull consumers are driven, active, and dynamic. They want to be physically and mentally fit and wide awake; they break down their target group into three main stereotypes which can be identified as:

-The AthleteIt is usually a person who takes his sport very serious, what means he wants to get the

best out of his body; therefore, you can say Red Bull is part of his diet and sport life. Athletes can use Red Bull to improve endurance and speed.

-The WorkerAnyone with a job especially jobs that require more energy such as construction

workers, doctors, firefighters, and drivers. Drivers are an especially good example because they need to be awake and alert at all times. Students can also be placed in this category because working on school assignments requires them to stay awake at late hours.

-The ClubberThis category is fairly new; in recent years the people found that Red Bull can be used

as a mixer with alcohol. Red Bull sells now 34% of its units on premise. It is almost impossible to find the right target group, the reason for that is because of the various applications of Red Bull. Hence a clear cut categorization in age groups and socio-economics groupings is not feasible. The typical Red Bull drinker is dynamic and active; the gender does not play any role at all. Moreover they found out that the main reason for purchasing energy drinks were to quench thirst (37%) and give boost. Red Bull has a rule regarding the way to serve consumers: the “perfect serve”. Barmen are expected to fill the glass with Red Bull and to give the can with the rest of the Red Bull to the client. The objective is to create visibility for the product in the bar.

Besides fashion, trendy bars and night clubs, Red Bull wants to be present in every store, even the smaller ones, in order to be as close to the consumer as possible. Most of the time, the product is of course sold in every super- and hypermarket, yet in the United States for instance, Red Bull has entered the market by asking for exclusivity to small retailers. In France, Red Bull has had considerable success in gas stations thanks to drivers, who are also important consumers. Like Coca-Cola, the company has managed to infiltrate every channel of distribution worldwide, even in the “OFF” sector, which applies for places where the product is sold to be

drunk later, where the primary aim is setting up advertising in every POS (point of sales) to be as visible as possible.

Positioning:

The brand position for Red Bull comes from out of the product’s benefits, to “vitalize and the body and mind.” Red Bull is considered as the leader of the energy drink industry. It is known to many of the consumers of energy drinks as the one who opened up the market for these type of beverages and it is because of this that it is perceived as a premium/high margin brand product. With this, Red Bull has the ability to charge a premium price because though there are many energy drinks out in the market, Red Bull has positioned itself in the consumers’ mind that nothing can compare to it.

Competition:

As we know, Red Bull is the industry leader in energy drinks throughout the world, but there are several competitors that Red Bull has to consider. Some of the main energy drink competitors in the US are Monster, Rockstar, Amp and NOS. When it comes to market share in the US, Red Bull takes over with 43%, than it is Monster with 39%, than Rockstar with 10%, than Amp with 3%, and NOS with 3% as well [1].

Energy shots, such as 5-hour ENERGY is a big competitor for Red Bull. Red Bull has its own energy shot as part of its product line but the fact that 5-hour ENERGY has just one kind of product makes it be the most popular and efficient among energy shot brands. 5-hour ENERGY “complies with the provisions of the Dietary Supplement Health and Education Act as enforced by the FDA” [5]. It also contains less caffeine than traditional Starbucks Coffee, and they have decaf 5-hour ENERGY for those who are sensitive to caffeine and EXTRA STRENGHT 5-hour ENERGY for those who need much more energy and many flavors to choose from [5]. These factors make 5-hour ENERGY even a bigger competitor for Red Bull.

Cola and Coffee drinks such as Coca Cola and Starbucks are two big competitors for Red Bull, although they are not directly related to the energy drink market, they could be considered as “energy” drinks because of their ingredients such as caffeine and sugar [2]. Coffee has many health advantages that Red Bull does not, such as lowering your risk of death, lowering the risk of prostate cancer, lowering the risk of developing type-2 diabetes, helps protect your brain to resist development of dementia or Alzheimer later in life, lower the risk of developing skin cancer, and reduce risk of developing oral cancer [6]. These advantages in coffee can be seen as benefits for many consumers and could affect Red Bull consumption. Cola drinks contain caffeine which makes you feel more alert when you're tired and might increase your performance when embarking on certain tasks like Red Bull does [7]. Also they contain sugar which wake you up, but make you gain weight faster, for that reason cola drinks with zero sugar were created that way consumers continue purchasing.

Another strong competitor is the sports drinks industry, such as Gatorade, Powerade and Lucozade (a new sport drink from UK that is growing in popularity.) Sports drinks could be a

problem to Red Bull because, both companies have similar target markets, in this case, sport athletes and people who like exercising. Other reason why sports drinks are a barrier for Red Bull is the fact that both energy drinks and sports drinks enhance exercise performance, which is one of the main reason consumer purchase these products [3]. Red Bull specializes on energizing and waking up your body so it can be said that it is a pre-workout supplement. Gatorade took advantage of the popularity of energy drinks and in turn expanded its product line by creating the “G Series,” which is meant to be a whole system to take you from pre-workout all the way through your post-workout fueling [4]. It includes Prime, Perform, and Recover, but the main competitor for Red Bull would be “Prime,” a drink and chews that could be considered as energy supplements or a pre game fuel [4].

Finally pre-workout supplements are a main competitor for Red Bull. Pre-workout supplements are the “newer category of products designed to increase workout intensity and energy as well as enhance the pump and improve in-training strength levels. They typically contain a lot of caffeine and other energy enhancers, as well as creatine, nitric oxide, beta-alanine (in some cases), amino acids (including bcaa's), carbs and other nutrients to help you take your workout to the next level” [8]. Pre-workouts might not target the exact same consumers that Red Bull targets, but the fact that both contain caffeine ingredients and provide similar functions creates a risk for Red Bull of losing customers. The main reason why I think Red Bull remains number one in the market is not because the flavor, or the actual performance it gives you, but the successful marketing it has.

Red Bull Advertising Strategies:

Within the energy drink industry, it’s fair to say that Red Bull is considered the leader throughout the world. How did they achieve such dominance in the market? Through the unique advertising of their main products as being not simply energy drinks, but as being something that can “give you wings” and help you strive for more whether that is sporting wise, or in day-to-day activities. The way Red Bull wants their consumers to think of them is as the drink that has the ability to take them to another level, a drink that allows them to go beyond their own potential.

The core of Red Bulls advertising is aimed at specialized groups, such as athletes, sports “enthusiasts,” and gamers. One of the most effective ways Red Bull gains brand awareness is through sports marketing. Red Bull does an exceptional job of this by marketing their product through numerous sporting events, sports venues, teams, and individual athletes. Their promotional campaigns through sport do such an amazing job of increasing brand awareness and bringing attention in general to the company because of the enormous fan base attached to team, athletes, etc. and because of the relatedness of the product itself to sport, which is all about energy and staying active.

The extensive list of Red Bull's sporting associations, range from its sponsorship of the Cliff Diving World Series through the company’s Formula 1 team. In addition, Red Bull provides sponsorship for celebrity parties and social events, where free Red Bull is provided and can be mixed with alcoholic beverages.

One of the incredible aspects about Red Bull’s advertising and marketing opportunities is that they not only took initiative to sponsor extreme sports and/or events to make a name for themselves and increase brand awareness, but their ability to create such opportunities. If there wasn’t some new and exciting event being talked about or needing sponsorship, Red Bull wouldn’t wait around for something to pop, they would create it. Events like The Kind of the Air event and the Soapbox Derby were things that Red Bull took initiative on and used as a platform to not only introduce something new and exhilarating for sports enthusiasts, but they seamlessly created a link in the consumer’s mind between Red Bull and extreme sports.

You see it all over their social media networks, on Facebook, Twitter, YouTube page... There is a theme of extreme sports across all of them. Sure, there are sports like soccer as well, but Red Bull’s fixation on sports like Cliff Diving and events dangerous events like the Rampage, make it clear that they want the consumer to think of Red Bull when they need to go out and do something BIG. In a way it goes beyond sport, beyond mountain biking, diving, aviation, snowboarding, surfing, soccer or any other type of sport or competition. What Red Bull’s mission with their “Red Bull give you wings,” slogan is for consumers to think of Red Bull whenever they need that extra boost to accomplish anything in life.

This is where it matters, consumers reaching for Red Bull in their day-to-day activities is crucial to the company, because in reality, that is where their bread and butter is in opting for Red Bull whatever the reason may be. It doesn’t have to be an extreme sport or a life risking event, but for everyday activities. They want the consumer to genuinely believe that with the help of a Red Bull energy drink, they can do anything they set their mind on. Whether that may be staying up late to study for an exam, getting through a long day at work, or putting in some needed time at the gym, Red Bull’s image comes to the mind of consumers. Not only that, but they want to inspire people… Inspire

them to surpass their limits through the extreme sport ads, and inspire to go out and accomplish their goals.

One important thing to note about Red Bull’s ads is that they never promote the taste of the products itself, but rather the value of it – what the consumer will gain if they choose to drink it, which of course refers to the surge of energy. They sell the “rush,” the adrenaline, and sports action. Red Bull does a brilliant job of (as the saying goes) thinking ‘outside of the box.’ Such a strategy has allowed them not only to create an emotional connection with the consumers but also encourage them to go after their goals and have a bigger purpose. Because with the wings Red Bull gives you, there pretty much isn’t anything you can’t do. Their strategy isn’t about having a better marketing or advertising campaign, it about doing things differently from the rest. The dedication they show towards the events and campaigns they sponsor are a huge part of how they advertise themselves.

An example of one of Red Bull’s ads is provided above.

Red Bull’s Website and Online Advertising:

-Red Bull’s Website:

Red Bull’s website is simple, colorful, and full of pictures and tabs of all the different events that the company does and sponsors. As the consumer explores the website, they will find a section titled “Explore the World of Red Bull” under this they will find everything in which Red Bull is involved in. From snowboarding, surfing, biking, skateboarding, motorsports, music, adventure, and games Red Bull makes sure that when consumers visit their website they are informed with some of the most important news in regards to these sports and musical party events. Each of these topics have their own tab, when the consumer decides to click in one they are directed to another Red Bull web page full of videos and news specifically related to the topic they have chosen to explore from the official Red Bull site. The interesting part of the website is that on the right top of the page there is a calendar. This calendar has featured and upcoming events that were important for Red Bull or will be taking place. This is an excellent tool to have in the company’s site because it lets Red Bull consumers of these events and they can plan in advance to be a part of them.

Another interesting fact about Red Bull’s website is that every day they recognize the work of different athletes throughout the day. The picture of the athlete is displayed on the website, if the visitor on the site clicks on it, they are directed to another one of Red Bull’s pages where videos, news, awards, and achievements can be found about that specific athlete. This is very effective because it gives Red Bull the opportunity to show the support they invest with the athletes, and it gives the athletes an opportunity to let Red Bull consumers learn about their talent, achievements, and why such an important company as Red Bull sponsors them.

The website also does an excellent job in demonstrating all of Red Bull’s products, which compared to others the brand portfolio for this company is not very large. The website demonstrates each of the products that are offered along with the ingredients included in each of

Red Bull’s energy drinks. Aside from the ingredients, Red Bull also gives some advice on when the best times to drink the energy drink is so if the consumer is not too sure they can always find that information on the website. The website is also very good in providing its consumers with information that is related to the company itself such as how the company was started, its mission, and vision. By providing this information on the website, consumers are able to trust the brand more than simply hearing others on what their perspective on what Red Bull is about or what its products contain.

Overall, Red Bull’s website is not complicated to navigate, it does an excellent job in grabbing consumers’ attention, and it gives them a glance of some of the many things that Red Bull is involved in. With so many different videos and interesting news on all the events and extreme sports, it is easy for the consumer to get hooked and spend a reasonable amount of time learning about the brand and its products.

-Red Bull’s Online Advertising:

Social media plays and important role for Red Bull’s online advertising. With. 1,214,856 followers on Twitter and 40,935,998 likes on Facebook, Red Bull uses each of these online advertising channels to let its consumers on every single event that they sponsor, their products, and simply trying to make social media users aware of the Red Bull brand. A lot of the posts and pictures that Red Bull publishes in these social media have to do with the athletes and the extreme sports that they sponsor. When Red Bull’s millions of followers see these posts they share them or retweet them and make the postings available to their own friends and followers. This makes it a very effective strategy for Red Bull because even those that do not have interest in the brand or in liking the company’s social media pages are exposed to Red Bull’s advertisement. Best way for Red Bull to spread awareness of its products and events.

Aside from Twitter and Facebook, Red Bull also has its own channel on YouTube. This is where Red Bull uploads videos on all the events they sponsor, the parties full of dj’s at clubs that the company takes part in, and all the different advertisement commercials. The advantage of this is that by uploading different types of advertisement videos and the different events, Red Bull gets to find out the effectiveness of it because many of the consumers and non-consumers share their own thoughts and ideas by commenting on the Red Bull YouTube channel.

An excellent way in which Red Bull uses online advertising is by having a video channel online called Red Bull TV. It is different from the YouTube channel that the company has because in this Red Bull covers some of the most important event that they are involved in live and has several shows that can be watched such as “Who is Job?” and “Break n Reality.” Not only that but this Red Bull TV channel can be found in the Red Bull official website. One event that made news worldwide was the free fall jump made by Felix Baugartner of 128,000 feet in a stratospheric balloon. Many people wanting to have a chance to witness the incredible act visited Red Bull Tv. Why? Because Red Bull was the major sponsor and was the one that made the event possible with its sponsorship. With this event, Red Bull’s slogan “Red Bull Give You Wings” could not have had a better fit to the situation happening. By using Red Bull TV, Red Bull maximized its use of online advertising. With this the company was able to let many of its

consumers, and non-consumers who visited the page to simply watch the event, know the major role Red Bull played in such a historic and unforgettable event.

Sale Promotion Strategies:

When it comes to sale promotions, this is not something that Red Bull takes much part in. Compared to its competition, when it comes to price Red Bull always has a higher price than its competitors. The company has done such a great job in positioning itself has the leader in the energy drink industry that consumers do not take price into too much consideration. When thinking of an energy drink, consumers tend to recall Red Bull so it is not necessary for the company to have sales promotions in order to have consumers purchasing the product. The little sales promotion that Red Bull does have is mainly done by its own consumers which has being effective for the company.

All of the Red Bull events work together to get consumers amped up about the product. Such excitement about Red Bull then creates the brand’s own sales promotion through word of mouth and “pull marketing”. The reason pull marketing is so effective is that a lot of the consumers promote Red Bull themselves by telling their friends and family and cause consumers to gravitate toward the brand on their own. The amount of brand awareness created through Red Bull’s “pull marketing” is definitely envious for other brands.

Public Relations:

As far as public relation activities go, few companies can match up to Red Bull. The simple fact that they are a brand that goes out and creates events, sponsors them, and invests in improving society is enough to make them stand out amongst competitors. Take the Red Bull Stratos event for example like it was mentioned before, the sponsoring of Felix Baumgartner’s record-breaking and awe inspiring jump in October 2012 led to positive worldwide exposure for the company with so many people being interested in the event. These sorts of events are essential for good PR on both social networks and mainstream media. All of the sporting events Red Bull sponsors in general, from extreme sports to the “Wings for Life World Run,” along with the events hosted at their arenas, and the individual athletes they sponsor are forms of PR for Red Bull. Such things create buzz and are all about getting the Red Bull name and logo seen by multitudes.

Customer Service:

Red Bull’s customer service is very simple for consumers to make anything concerning Red Bull products. The customer service tab can be found on Red Bull’s main website. Once they click on it, the person trying to get in contact can select the country they are from, provide first and last name, email, phone number, and provide a message in a text box. They also provide the address, phone number, and fax number to the headquarters. Once the message is sent Red Bull gets in contact with the person. This is very effective because depending on the concern or problem, Red Bull has different ways in which to communicate with the person through.

INTERVIEW PLAN

Red Bull Interview of College Students:

Interviewers Gender Age First 3 Brands

Aware of Events

Perceived Quality

Packaging Pricing Preference of Ads.

Repeat Purchase

Loyal Customer

1 Male 21 Red Bull, Monster, Rockstar

Yes High Simple & Good

Fair Humorous No No

2 Female 24 Red Bull, Monster, 5-Hour Energy

No Good Appealing Unfair Grabs your attention

Yes No

3 Male 21 Red Bull, Monster, AMP

Yes High Modern A bit unfair

Extreme Sports

Yes No

4 Female 27 Red Bull, Starbucks, Monster

Yes High Simple & Convenient

Fair Don’t see them

Yes Yes

5 Male 22 Red Bull, Monster, Rockstar

Yes Great The right one

Fair Red Bull gives you wings TV ads.

Yes Yes

6 Male 23 Red Bull, Monster, 5-Hour Energy

Yes Very Well

Aesthetical pleasing

Fair Funny Ads. No No

7 Female 20 Monster, Tab, Red bull

No Good Simplicity Fair TV ads. & Magazine ads.

Yes No

8 Female 25 Red Bull, NOS, Monster

Yes Good Very nice Fair Appealing Maybe No

9 Male 22 Red Bull, Monster, Full Throttle

No Good Nicely dressed

High priced. Unfair.

Funny & Concrete

Yes Yes

10 Female 21 Red Bull, Monster, Starbucks

Yes High Simple & Easy to recognize

Fair Humorous Yes No

Chart Explanation:

The chart above shows the responses of male and female college students between the ages of 20 – 27. We asked the students what were the first 3 energy drinks that came to their mind. Also if they were aware of the many events that Red Bull created. We asked them how do they perceive the quality of Red Bull’s products, what do they think of the packaging used, what do they think of the pricing of Red Bull’s products, what type of advertisements do they like or preferred, if they are willing to repeat the purchase of Red Bull products, and if they are loyal customers to the Red Bull brand.

Interview Results:

The data we have collected is qualitative data that was obtained by interviewing college students. We chose to Interview College students since they are one of Red Bull's primary targets. Before we begun our interviews we hypothesized that Red Bull would be in the top of mind for brand recall energy drinks. We also hypothesized that many people would have favorable attitudes towards the Red Bull brand.

One interview that stood out was from a female, age twenty-four. The first energy drink that came to her mind was Red Bull, followed by Monster then 5hour energy drinks. She was not sure of the many events that Red Bull host's but found them to be "really cool" once we described them to her. What made this interview different was that she is not a loyal customer of Red Bull but she till had only positive things to say about the brand. She enjoys their advertisements, would be willing to purchase the product even though she states that she does not consumer many energy drinks.

In another interview, a male age twenty-one described the Red Bull marketing communications to be "awesome." This individual was also aware of the many events Red Bull hosts and stated that he would love to attend several of the events. He believes that Red Bull should improve their online advertisements since he has not much.

We asked each of our participants to state the first three energy drinks they can think of. Out of all of our participants, one hundred percent stated Red Bull in the top three; with many of them being number one. This data collected proves our initial hypotheses that Red Bull is one of the top of mind brands that are recalled when dealing with energy drinks.

Out of all of the interviews done; a female, aged twenty stated two other brands to be at her top of mind. She listed Monster, Tab, and then Red Bull when everyone else listed Red Bull first. Despite this, she still had Red Bull at top of mind when thinking of energy drinks. She prefers to drink Monster or coffee but stated that she will end up purchasing Red Bull as well. Another important finding was that she viewed Red Bull of high quality but believed the product to be cheap. In several other interviews people found Red Bull to be to expensive.

Another question that was asked to each of our interviewees was what the thought of the Red Bull as a brand and its product quality. The information collected showed us that even the people that drink other products still value Red Bull as a superior brand and to have high quality products. This second finding proves our second hypothesis; making Red Bull a highly favorable brand throughout our participants.

There are some limitations in the data we have collected. Since only ten college students were interviewed this makes the data less accurate to fit with all colleges. Another limitation to consider is that only college students were interviews. There are other types of consumers that drink Red Bull, as stated previously.

Red Bull is well known, even by consumers that do not drink the product. The brand has successfully gained a favorable reputation with the many forms of advertising the brand does.

From motocross to space missions, Red Bull has made an impact on consumers, making it one of the most recognized brands throughout the world.

Positioning Map: Based on consumer survey perceptions

SUGGESTIONS FOR INTEGRATED MARKETING COMMUNICATION:

Red Bull is a brand that has done an excellent job with its integrated marketing communication methods. By sponsoring important events, extreme sports, music, and athletes among other activities it has created immense brand awareness throughout its consumers and even non-consumers. Though the brand has a favorable reputation like already mentioned, it can improve certain parts of its marketing communications.

In today’s society the use of the web is higher than ever before, and though Red Bull has its social media like Facebook, Twitter, and YouTube it does not take complete advantage of them. Posting news about different events that may be going on with Red Bull on these social media pages is a good way to let Red Bull followers know what they are up to, and up to now Red Bull has done a good job with that. What this company can do is take the use of the social media to the next level and get its consumers more involved aside from simply having them share or retweet Red Bull’s postings with their friends. The way that Red Bull can implement this is by maybe having small contests in which consumers can take part in. Such as having its followers share a picture of themselves consuming the product and Red Bull can select a fan of the brand for the week. Simple things in which Red Bull recognizes its consumers can gain the company more brand equity, awareness, and even brand loyalty. Brand loyalty would be very important to gain because based on the interview though most of the things that the interviewees responded about Red Bull were positive, they did not really have loyalty towards the brand.

Low Quality

Fair PriceUnfair Price

High Quality

Another suggestion for Red Bull’s marketing communication is that the company needs to advertise their Red Bull TV channel more than what they do. This online channel can gain Red Bull more consumers because they would be able to see the events that Red Bull takes part in as they are happening live. Aside from that, not many consumers are aware that in this online channel Red Bull has its own show with short seasons that the consumer and even non-consumer can enjoy. If the channel gets advertised more, the company could have more visitors for Red Bull TV and everything that the visitors to the site get to see can be a way for them to recall the brand whenever they hear talk about the certain events or shows. Overall, it is simply important for Red Bull to take more advantage of online advertising.

A sales promotion is also something that Red Bull should consider working on. A lot of it gets done by “pull marketing” which has being very effective for the company because the consumers are the ones who promote the brand themselves. Yet, it is important that Red Bull implements some type of sales promotion to its marketing considering that its price is higher than most of its competitors. Having a sales promotion would be a good way to have people who would normally not purchase the product because of its price with the opportunity of trying it.

Advertising more to the students would be very beneficial for Red Bull. Most of Red Bull’s sponsorships and events deal with extreme sports or music and not much towards those students who consume the product to stay awake during their long study sessions and classes. Red Bull does a good job in making the students part of the description of what their products can be used for but not much in actually advertising to them. One strategy that Red Bull used not too long ago and was effective was that when they were introducing their new Red Bull flavors they created a partnership with Chegg, an online book rental website, and included one of the three flavor cans in the students shipping package. This was an excellent way to make students aware of the new product line. It is important for Red Bull to implement more of these advertising strategies for students, though the sponsorships they have with various extreme sports is very effective for the company, advertising to the other target markets can be beneficial too.

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