Marketing Management Systems at Red Bull Essay

Red Bull is an energy drink. Red Bull is an version of the Thai energy drink Krating Daeng, which translates as “ Red Bull ”. Based on market portion, it is the most popular energy drink in the universe. [ 1 ] The company was founded by Thai national Chaleo Yoovidhya and Austrian national Dietrich Mateschitz. Together with his boy, Chaleo owns a commanding 51 percent involvement in the company ; nevertheless, Mateschitz is responsible for the company ‘s operations through the Austrian company Red Bull GmbH. [ 2 ]

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Red Bull ‘s motto is “ it gives you wings ” and the merchandise is sharply marketed through advertisement, tournament sponsorship ( Red Bull Air Race, Red Bull Crashed Ice ), athleticss squad ownerships ( Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig ), famous person indorsements, and with its record label, Red Bull Records, music [ 3 ]. In 2009 it was discovered that Red Bull Cola exported from Austria contained trace sums of cocaine. [ 4 ] HYPERLINK “ # cite_note-newsmeat_com-meat_php_articleId_51718664_channelId_2951_buyerId_newsmeatcom_buid_3281-4 ” [ 5 ] HYPERLINK “ # cite_note-enuws_com-5 ” [ 6 ] HYPERLINK “ # cite_note-abc_net_au-2585388-6 ” [ 7 ] HYPERLINK “ # cite_note-patrickhenrypress_info-_p_669258-7 ” [ 8 ] Red Bull has besides been the mark of unfavorable judgment refering the possible wellness hazards associated with the drink

Red Bull contains taurine, glucuronolactone, caffeine, B vitamins, sucrose and glucose. Red Bull sugar-free besides contains phenylalanine in topographic point of saccharose and glucose

Red Bull ‘s claims

Red Bullclaims to:

Increase public presentation

Increase concentration and reaction velocity

Improve watchfulness

Improve emotional position

Stimulate metamorphosis

Give you wings

Caffeine content

Red Bull ‘s invigorating effects are attributed to its high caffeine content. A individual can of Red Bull contains 80A mg/250A milliliter of caffeine [ 27 ] HYPERLINK “ # cite_note-27 ” [ 28 ]. This is about the same as one cup of normal java, or somewhat less depending on the brewing method [ 29 ] The existent caffeine degree in Red Bull can change depending on state, as some states have legal limitations on how much caffeine is allowed in drinks.

Red Bull drinkers may see inauspicious effects as a consequence of caffeine.

Legal position

Red Bull has been capable to prohibitions in France, Denmark and Norway. The prohibition has been lifted in Norway and Denmark. [ 30 ] The Gallic prohibition was challenged by the European Commission and ( partly ) upheld by the European Court of Justice in 2004.

Red Bull has an aggressive international selling run. The legion sponsored activities range from utmost athleticss like windsurfing, snowboarding, skateboarding, kayaking, wakeboarding, cliff-diving, surfing, skating, freestyle motocross, rally, Formula 1 racing, and breakdancing to art shows, music, and picture games. In maintaining with their mark market of immature males, Red Bull has besides enlisted aid from famous persons, such as Eminem that would appeal to this group ( patronizing the Red Bull “ EmSee Battle Rap titles ” ). It besides hosts events like the “ Red Bull Flugtag ” ( German for “ flight twenty-four hours ” or “ flying twenty-four hours ” ) and other such competitions. Red Bull besides sponsors association football squads, with nines in Austria, Germany, the United States and Brazil having the Red Bull hallmark in their names. By tie ining the drink ‘s image with these activities, the company seeks to advance a “ cool ” public image and raise trade name power. In add-on, the slender container is used to propose a “ sexier ” image than some other Cola opposite numbers. Hence, this one energy drink has helped make a market for over 150 related types of ware, [ 31 ] like Red Rooster and Blue Lightning.

Red Bull ‘s motto, “ it gives you wings ”, is widely used in these selling activities. Claims about the drink ‘s effects and public presentation have been challenged on assorted occasions, with the UK ‘s Ad Standards Authority enforcing advertisement limitations in 2001 in response to ailments foremost recorded every bit early as 1997. [ 32 ] Even with all of the concerns sing Red Bull, in 2000 the corporation earned around $ 1 billion in worldwide gross revenues and Red Bull held 65 % of the market portion. [ 33 ] In Malaysia, nevertheless, Red Bull does non utilize its “ Gives you wings ” motto, but alternatively a individual one-word motto, Bullleh!, a word drama on the Malay word Boleh ( lit: Can be done ) and the word Bull.

In the PlayStation 3 ‘s new societal app, PlayStation Home, Red Bull has developed its ain in-game island, specifically publicizing its energy drink and the Red Bull Air Race event. In late November 2009, Red Bull brought out two new infinites, the Red Bull Illume infinite, and the Red Bull Beach infinite having the Red Bull Flugtag, both released on the same twenty-four hours.

In the picture game Worms 3D, Red Bull could be drunk by the worms, giving them the consequence of faster motion.

Red Bull is displayed on practical track-side hoardings during gameplay and in the gap cinematic in the picture game Wipeout XL.

Team ownerships

Red Bull Brasil – a football ( association football ) squad presently playing in the Brazilian Campeonato Paulista Serie A2.

RB Leipzig – a football ( association football ) squad presently playing in the German Regionalliga Nord

Red Bull New York – a association football franchise viing in the United States ‘ Major League Soccer

Red Bull Racing, one of two Red Bull Formula One squad, this one based in Milton Keynes, England

Scuderia Toro Rosso ( Italian interlingual rendition of Team Red Bull ), the other Red Bull Formula One squad based in Faenza, Italy.

Team Red Bull, a racing squad viing in the US based stock auto rushing competition NASCAR.

FC Red Bull Salzburg, an Austrian football ( association football ) nine based in Salzburg and viing in the Austrian Bundesliga

EC Red Bull Salzburg, a member of the Austrian Hockey League based in Salzburg, Austria

1. The Product/ Competitors/Industry



Red Bull is a sweet, caffeinated drink aimed to give consumers the high energy boot.

Available merely in instead expensive 250ml tins, 350ml bottles, with 4 battalions and merely two

‘flavours ‘ ( original or sugar-free ). It contains caffeine, taurine, glucuronolactone, and B

vitamins. Founded in 1984 by Austrian man of affairs Dietrich Mateschitz, Red Bull has

go the universes taking energy drink, a basic in many immature, and active people ‘s lives.



Large planetary companies such as Coca Cola and Pepsi have introduced their ain energy drink versions to their merchandise base. Mother ( by Coca Cola ), Amp ( Pepsi ), V, Battery, 180, RedEye and Bennu being merely some in the ever-growing energy drink market.

Competition besides presents itself in original athleticss drinks, such as Gatorade ( Pepsi ) and

Powerade ( Coca Cola ). Furthermore, premixed alcoholic drinks like the Smirnoff scope signifier portion of the competition.



Red Bull has going enormously successful and operates within the planetary soft drink market place. Within the soft drink industry its niche is the ‘energy drink ‘ market, of which

Mateschitz was mostly responsible for making. Red Bull presently is the taking energy drink across the full Earth. It holds 70 % of the market worldwide ( Gschwandtner, 2004 ). Once the drink was passed by wellness ministries, Red Bull entered the Austrian market, shortly thenceforth so moved into Germany, United Kingdom and the USA by 1997.

2. Needs, Privations and Demands satisfied by Red Bull



There are three basic human needs that Red Bull satisfies, physical, societal and single demands. ‘Human demands are provinces of felt deprivationaˆ¦ sellers do non contrive these demands ; they are a basic portion of human makeupaˆ¦People in industrial societies might seek to happen or develop objects that will fulfill their demands. ‘ ( Kotler et al. 2006 )

First, a physical demand is when tired drivers are experiencing the demand to fall asleep due to tire ; and this can compromise their safety. A driver needs to remain awake and alarm when driving to debar danger and this demand is satisfied by Red Bull. In fact it has become a ‘hot point amongst tired drivers halting at gas Stationss. ‘ ( Gscwandtner 2004 ).

A societal demand for illustration is where ‘humans have a societal demand for belonging ‘ ( Kotler. 2004 ) and this demand is satisfied by belonging to a group. A group could be people with the same involvements eg utmost athleticss. Red Bull associates itself with energy, danger and youth civilization, and markets its merchandise through its sponsorship of youth civilization and utmost athleticss events.

Consumers who drink Red Bull are ‘automatically ‘ introduced to the Red Bull civilization, and their societal demand is so satisfied.

The concluding demand is single. An person may hold a demand for concentration or self-look and this could be inhibited by weariness or fatigue. Red Bull realised that it could satisfy this demand by ‘energising and exciting the head ‘ ( Red Bull 2008 ). For illustration, if they are fatigued, a university pupil may see an inability to retain cognition and hence show an inability to show themselves.

2.2 Privations

A privation can be defined as ‘the signifier taken by human demands as they are shaped by civilization and single personality ‘ ( Kotler et al. 2006 )

Extreme jocks want to speed up their public presentation and to resuscitate themselves rapidly after each event and this privation is satisfied by Red Bull. Red Bull promotes its ingestion ‘to increase physical endurance, better concentration and reaction velocity, better watchfulness and excite metamorphosis. ‘ ( Red Bull, 2008 ).

2.3 Demands

‘Demands are human wants backed up by purchasing power and given their resources, people demand merchandises with benefits that add up to the most satisfaction. ‘ ( Kotler et al. 2006 ).

Another manner of seting it is that ‘demand for a productaˆ¦is both a willingness and an ability to pay for the merchandise that will fulfill a peculiar privation ‘. ( McColl et al. 1998 )

Red Bull is arguably one of the most expensive soft drinks on the market, a can of Coke by and large costs around $ 2.50 for 375ml whereas a smaller 250ml can of Red Bull is sold at $ 3.75. Consumers are willing to pay the higher monetary value for Red Bull because it satisfies their demands and wants, it besides delivers on its promise to ‘Vitalize Body and Mind. So irrespective of size of the can or monetary value, consumers are willing to pay for Red Bull ‘s merchandise.

3. The Marketing Management Philosophy

In our sentiment, Red Bull fits into three of the selling direction doctrines.

When it foremost entered the market it could be viewed in the merchandising construct stage. Laminitis

Dietrich Mateschitz even stated. “ If we do n’t make the market, it does n’t be. ”

( Gschwandtner 2004 ). Mateschitz used bombilation selling to advance the merchandise by giving consumers free samples.

Once Red Bull established itself it so moved into the merchandise construct doctrine. It seems that many consumers buy the Red Bull merchandise entirely based on what benefits it can give them, i.e. increased well-being and energy. Red Bull tins are branded with the tagline

‘Vitalises organic structure and head ‘ and it is good known by consumers that imbibing Red Bull can alleviate fatigue.

The concluding doctrine the merchandise fits into is the selling construct. ‘This is where an administration delivers target market satisfactions more efficaciously and expeditiously than rivals. ‘ ( Kotler et al. 2006 ). This can be done by researching its mark audience and the company has shown this by the fact that ‘Red Bull has a 70 to 90 per centum market portion in over 100 states worldwide ‘. ( Gschwandtner 2004 ). This clearly indicates that Red Bull ‘s current selling scheme is working good and they are in front of their rivals in the market topographic point.

4. The Selling Challenges

4.1 Competition

This is likely one of the biggest menaces to Red Bull to day of the month. Major rivals such as Coca Cola and Pepsi are continually seeking to recover market portion off Red Bull. Erythroxylon Coca Cola and Pepsi have launched their ain energy drink versions to vie straight with Red Bull ‘s merchandise, yet with no existent impact on the market, illustrations of this are Think ‘V ‘ Energy Drink and Coke ‘s version ‘Mother ‘.

4.2 Negative Promotion

Assorted media worldwide have reported that Red Bull is harmful for one ‘s wellness. The

Gallic Health Authority has gone one measure farther by non the Red Bull merchandise for sale in France believing it is non in conformity with the state ‘s wellness and nutrient ordinances. Other media studies have been targeted towards parents saying the caffeine degrees in Red Bull can be unsafe if consumed by children/teenagers, which coincidently is precisely who is in the merchandise mark market.

Red Bull has gone to the extremes of seeking scientific cogent evidence that its merchandise is safe for ingestion and released legion statements to control the negative media attending and reiterate that their merchandise is safe for ingestion by all ( Red Bull, 2008 ).

4.3 Inability to travel frontward with the merchandise

Red Bull is good known for its advanced advertisement nevertheless the merchandise could be in danger of going stale. By eschewing conventional advertisement methods and choosing for on-line advertisement and Generation Y sketch adverts, the purpose of pulling 15 – 30 twelvemonth olds is working, but for how long? Unite this with their big investing in utmost athletics events

Internet Explorer Red Bull Air Race and athlete sponsorship, it has to be asked what do they make next? Has it already been done?

4.4 Ability to derive new clients and retain current client trueness

With Red Bull ‘s mark market presently aimed at the Generation Y ‘s ( 15 – 30 twelvemonth olds ) there is the inquiry of whether this coevals will go on to imbibe Red Bull as they grow older. And will the following approaching coevals accept this merchandise as their ain.

4.5 Health and Social Implications

Due to turning force per unit area on administrations in society, Red Bull now promotes their merchandise with current social and wellness issues in head. Childhood fleshiness and type 2-onset diabetes has become a major issue across western developed states. By presenting ‘sugar free ‘ Red Bull this has opened up a new chance to the ‘health witting ‘ and diabetics.

Pull offing this issue will be a changeless procedure and Red Bull must be seen to be seting their merchandise to accommodate society.

4.6 Merely holding one merchandise

One peculiar issue Red Bull has to see is their limited merchandise scope. Unlike their major rivals such as Coca Cola and Pepsi, who have assorted different merchandises in different drink categories ( H2O, soft drinks, electrolytes ) Red Bull does non. Merely holding one merchandise can be a positive nevertheless, for illustration Red Bull can concentrate 100 % attempt on their merchandise while non being distracted by other influences, nevertheless the downside is that should the market portion of that merchandise lessening in the hereafter, Red Bull has no back up merchandise to cover the loss.

5. Bing client orientated/market driven

5.1 The Consumer

Customers are more sophisticated and educated in the market topographic point today ; they can now research merchandises before doing a purchase. For illustration there are specialist magazines to ‘assist in the determination on ( the ) brandaˆ¦but more likely ( consumers ) turn to the cyberspace for information on what might be described as a complex merchandise ‘ ( Kotler et al. 1998 ). Another ground could be that rivals are more advanced than of all time with advertisement and selling runs. Kevin Rudd for illustration achieved this when he used the ‘MySpace ‘ website as a medium to mount his premier ministerial selling run.

5.2 Point of Difference

Further to this impression selling organisations need to make a point of difference ( POD ) in the market topographic point. In such a concentrated market consumers look for a POD, when opening a java store a bourgeois would happen themselves up against competition. So how do they distinguish themselves from another cafe ? How can they go ‘top of head ‘ to their mark market?

Gloria Jeans Coffee is a good illustration, when they entered the market they provided non merely a service but besides an experience. They designed their java stores like sofa suites, with large sofas to make a plain feel. They besides offered wireless cyberspace ( WiFi ) services to pull the business communities and adult females who wanted to work online while holding a java.

5.3 Competition

Competition is going more intense in any industry. For illustration supermarket giants like Coles and Woolworth ‘s are deluging their shops with self-branded merchandises, which is frequently forcing independent trade names off the supermarket shelf and driving little concerns out of the market. These giants have bulk purchasing power which means they have the ability to base on balls nest eggs to their clients. Self-branded merchandises are marginalizing the smaller independent trade names.

6. Decision

Red Bull is a extremely successful company responsible for 70 % of gross revenues in the energy drink market to day of the month. Their merchandise is good known by consumers to ‘vitalize organic structure and head ‘ and is by and large purchased by most for this intent. Red Bull have strong rivals who are invariably seeking to derive market portion off Red Bull, nevertheless, it is apparent that Red Bull ‘s current selling doctrines are working in maintaining them a market leader. Red Bull is cognizant of their selling challenges and they are invariably adjusting and developing their selling attack to get the better of or even avoid hereafter concerns.


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