Question:
Case Study
Red Bull’s,
Integrated marketing communications mix has been so successful that the company has created
an entirely new drink category—functional energy drinks—and has become a multibillion-dollar
brand
among competition from beverage kings like Coca-Cola and Pepsi. In less than 20 years, Red
Bull has become the energy drink market leader by skillfully connecting with the global youth.
Dietrich Mateschitz founded Red Bull in Austria and introduced the energy drink into Hungary,
its first foreign market, in 1992. Today, Red Bull sells 4 billion cans of energy drinks each year
in over 160 countries. So how does Red Bull do it? The answer: differently than others. For
years, Red Bull offered just one product, Red Bull Energy Drink, in one size—a slick silver 250
ml. (8.3 oz.) can with a European look and feel. Red Bull’s ingredients—amino acid taurine, B-
complex vitamins, caffeine, and carbohydrates—mean it’s highly caffeinated and energizing, so
fans have called it “liquid cocaine” and “speed in a can.” Over the last decade, Red Bull has
introduced three additional products: Red Bull Sugarfree, RedBull Energy Shots, and Red Bull
Cola—each slight variations of the original energy drink. Since its beginning, Red Bull has used
little traditional advertising and no print, billboards, banner ads, or Super Bowl spots. While the
company runs minimal television commercials, the animated spots and tagline “Red Bull Gives
You Wiiings” are meant to amuse its young audience and connect in a nontraditional, nonpushy
manner. Red Bull builds buzz about the product through
grassroots, viral marketing tactics, starting with its “seeding program” that microtargets trendy
shops, clubs, bars, and stores. As one Red Bull executive explained, “We go to on-premise
accounts first, because the product gets a lot of visibility and attention. It goes faster to deal with
individual accounts, not big chains and their authorization process.” Red Bull is easily accepted
at clubs because “in clubs, people are open to new things.” Once Red Bull has gained some
momentum in the bars, it next moves into convenience stores located near colleges, gyms,
health-food stores, and Supermarkets, prime locations for its target audience of men and women
aged 16 to 29. Red Bull has also been known to target college students directly by providing
them with free cases of Red Bull and encouraging them to throw a party. Eventually, Red Bull
moves into restaurants and finally,
into supermarkets. Red Bull’s marketing efforts strive to build its brand image of authenticity,
originality, and community in several ways. First, Red Bull targets opinion leaders by sampling
its product, a lot. Free Red Bull energy drinks are available at sports competitions, in limos
before award shows, and at exclusive after-parties. Free samples are passed out on college
campuses and city streets, given to those who look like they need a lift. Next, Red Bull aligns
itself with a wide variety of extreme sports, athletes, teams, events, and artists (in music, dance,
and film). From motor sports to mountain biking, snowboarding to surfing, dancing to extreme
ailing, there is no limit to the craziness of a Red Bull event or sponsorship. A few have become
notorious for taking originality and extreme sporting to the limit, including the annual Flugtag.
At Flugtag, contestants build homemade flying machines that must weigh less than 450 pounds,
including the pilot. Teams then launch their contraptions off a specially designed Red Bull
branded ramp, 30 feet above a body of water. Crowds
of up to 300,000 young consumers cheer on as the contestants and their “planes” stay true to the
brand’s slogan: “Red Bull gives you wings!” Another annual event, the Red Bull Air Race, tests
Case Study
Red Bull’s,
Integrated marketing communications mix has been so successful that the company has created
an entirely new drink category—functional energy drinks—and has become a multibillion-dollar
brand
among competition from beverage kings like Coca-Cola and Pepsi. In less than 20 years, Red
Bull has become the energy drink market leader by skillfully connecting with the global youth.
Dietrich Mateschitz founded Red Bull in Austria and introduced the energy drink into Hungary,
its first foreign market, in 1992. Today, Red Bull sells 4 billion cans of energy drinks each year
in over 160 countries. So how does Red Bull do it? The answer: differently than others. For
years, Red Bull offered just one product, Red Bull Energy Drink, in one size—a slick silver 250
ml. (8.3 oz.) can with a European look and feel. Red Bull’s ingredients—amino acid taurine, B-
complex vitamins, caffeine, and carbohydrates—mean it’s highly caffeinated and energizing, so
fans have called it “liquid cocaine” and “speed in a can.” Over the last decade, Red Bull has
introduced three additional products: Red Bull Sugarfree, RedBull Energy Shots, and Red Bull
Cola—each slight variations of the original energy drink. Since its beginning, Red Bull has used
little traditional advertising and no print, billboards, banner ads, or Super Bowl spots. While the
company runs minimal television commercials, the animated spots and tagline “Red Bull Gives
You Wiiings” are meant to amuse its young audience and connect in a nontraditional, nonpushy
manner. Red Bull builds buzz about the product through
grassroots, viral marketing tactics, starting with its “seeding program” that microtargets trendy
shops, clubs, bars, and stores. As one Red Bull executive explained, “We go to on-premise
accounts first, because the product gets a lot of visibility and attention. It goes faster to deal with
individual accounts, not big chains and their authorization process.” Red Bull is easily accepted
at clubs because “in clubs, people are open to new things.” Once Red Bull has gained some
momentum in the bars, it next moves into convenience stores located near colleges, gyms,
health-food stores, and Supermarkets, prime locations for its target audience of men and women
aged 16 to 29. Red Bull has also been known to target college students directly by providing
them with free cases of Red Bull and encouraging them to throw a party. Eventually, Red Bull
moves into restaurants and finally,
into supermarkets. Red Bull’s marketing efforts strive to build its brand image of authenticity,
originality, and community in several ways. First, Red Bull targets opinion leaders by sampling
its product, a lot. Free Red Bull energy drinks are available at sports competitions, in limos
before award shows, and at exclusive after-parties. Free samples are passed out on college
campuses and city streets, given to those who look like they need a lift. Next, Red Bull aligns
itself with a wide variety of extreme sports, athletes, teams, events, and artists (in music, dance,
and film). From motor sports to mountain biking, snowboarding to surfing, dancing to extreme
ailing, there is no limit to the craziness of a Red Bull event or sponsorship. A few have become
notorious for taking originality and extreme sporting to the limit, including the annual Flugtag.
At Flugtag, contestants build homemade flying machines that must weigh less than 450 pounds,
including the pilot. Teams then launch their contraptions off a specially designed Red Bull
branded ramp, 30 feet above a body of water. Crowds
of up to 300,000 young consumers cheer on as the contestants and their “planes” stay true to the
brand’s slogan: “Red Bull gives you wings!” Another annual event, the Red Bull Air Race, tests
