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History And Background Of Red Bull

Paper Type: Free Essay Subject: Business
Wordcount: 2116 words Published: 1st May 2017

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In 1987 Red Bull the energy drink is created by Austrian company in term of market share. By 4.6 billion cans sold during 2011 this made Red Bull the most widely held energy drink in the world. Krating Daeng was an energy drink which was firstly made-up and sold in Thailand that energy drink inspired Dietrich Mateschitz the Austrian entrepreneur tom take the idea of the energy drink and with his partner Chaleo Yoovidhya they founded Red Bull with the taste of western. Red Bull is sold in a tall and thin blue-silver can; featuring in Thailand and in several parts of Asia it is sold in a wider gold can with the title of Krating Daeng or Red Bull Classic. The two are dissimilar goods, produced individually.

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“Red Bull gives you wings” this is Red Bull’s slogan and the product is marketed via advertising, events (Red Bull Air Race, Red Bull Crashed Ice), the ownerships of sports team (Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig, Red Bull Brasil), superstars endorsements, and music, in its record brand Red Bull Records. It has been the target of analysis concerning the likely health risks related together with the drink. An analysis by the European Food Safety Authority (EFSA) over and done with the intention of in the levels used in common energy drinks, like Red Bull, the level of taurine and glucuronolactone are not dangerous.

Positioning Strategy

R&A Group will carry on arranging Red Bull and Red Bull events as a rare, off the radar subculture. Focusing on the Red Bull vehicle will be an event in itself, making buzz on roads. With using Red Bull to direct drinkers to Red Bull events we will achieve something in rising drinking and awareness in lagging markets and continue reliable across the Egypt. The events will be a put where likeminded people are able to came jointly, enjoy, be inspired, and sense enjoy a part of the special Red Bull family. R&A Group will not modify Red Bulls active tagline, Red Bull “Gives You Wings”, as we believe the company has by now recognized a tag line that numerous people previously familiar with. R&A Group will maintain to operate the tag line on products and only make the tag line extra clear on products, like on the give‐a‐ways that the university Reps will be giving out.

Marketing Mix Implementation Tools

“Red Bull Gives You Wings” across the Egypt Red Bull is an energy drink that represents a lifestyle, and we want to bring that lifestyle to the masses. Our marketing mix will consist of Public Relation promotions, non‐traditional advertising, and sponsorships of extreme sports athletes and events. By using this mix, we will attract traditional media to cover our product without creating traditional ads ourselves. We plan to keep the price of Red Bull the same as it is now, but do free give‐aways during PR events and during sponsored events.

Our PR event is a cross‐country road trip in Red Bull’s Mini Coopers. The road trip will consist of 100 two‐men teams that will be making stops at major colleges and universities across the U.S., including Yale, Berkley, Notre Dame, and the University of Nebraska‐Lincoln. In addition to the stops in major cities, special attention will also be given to North Dakota, South Dakota, Ohio, and Tennessee to increase consumption and brand awareness. During their stops, they will host events that give‐a‐way free Red Bull and Red Bull products as well as other prizes such as flat screen T.V.s and Playstation 3s. It will be a year long event of appearances by the Red Bull Mini Coopers at college campuses in major cities. These colleges will be contacted ahead of time to arrange free interns to

help plan and set up the events. Students will be able to play video games, test drive the Mini Cooper, win prizes, all while drinking Red Bull. Red Bull will continue to have heavy sponsorship of their 500+ athletes and at the Winter and Summer X Games. Clothing, banners, mini events will be the main tools during

these sponsorships that will be picked up by the local and national television and radio stations covering these athletes careers and sporting events.

The mission Statement of Red Bull is as follows:

“We are committed to presenting Red Bull values, at the same time as maintaining the leadership place in the energy drinks groups while delivering the best quality purchasers service in a extremely efficient and money-making manner. We build a way of life where workers share most excellent practices devoted towards coaching and budding our organisation like an employer of choice.”

Marketing Plan

Sales Objectives

We want to maintain our position as the leader in energy drinks and the face of extreme sports worldwide, while expanding our reach in the U.S. Currently North Dakota, South Dakota, Tennessee, and Ohio are lagging in Red Bull awareness and consumption. We want to increase distribution of Red Bull in these states by 5% and increase brand awareness by 85% in these markets while maintaining our national presence.

Marketing Objectives and Strategies

Our marketing objective and strategy is to open local events to grab youth on university grounds and at sporting events in Cairo, Giza, Sharm ElSheikh, Hurgahda and Alexandria. These events will present a number of our sponsored sports players making star appearances and give‐a‐ways of Red Bull and Red Bull products. In addition, Red Bull Mini Cooper cars will make up their way from corner to corner in Egypt, particularly in big cities, promoting the product and handing over free Red Bull cans. The Red Bull Mini Cooper cars their direction will be college campuses in major cities like AUC, BUE, GUC and Academia Bahrya promoting the product and its way of life. A million of samples will be spread.

SWOT analysis of Red Bull:


Most famous energy drinks right now in the world.

Red Bull represents a exact, touchy

Subculture, as even now being consumed with a category of demographics.

Three dissimilar versions (Cola, Sugar‐Free, and Regular) make available for types with no distribution the product too thin.


Raise understanding of Red Bull’s dominance inside the energy drink market

Make stronger relationship between Red Bull’s target customers.

Rise Red Bull’s sales in certain markets for example the Egypt, Saudi Arabia, & Tunisia.


Not a patented drink product


Healthiness dangers linked among the excess of consumption.

Competition is greater than ever


The powers of Red Bull are market leadership place, marketing hard work, their well-known flavour and the characteristic of the stylish design and up to date.


The weak points of Red Bull are the cost and the lack of the technique patent as efficiently as less range of the products.


Red Bull has chances to increase the objective markets in a good way as the product lines expansion.



This is possibly one of the major threats to Red Bull at the present time. Main competitors like Power Horse and Coca Cola are frequently looking for return to market share of Red Bull. Power Horse and Coca Cola have launched introduced their specific energy drink variety to participate in a straight line with Red Bull’s products, up till now without actual effect on the market.

Negative publicity

A range of international media have stated that Red Bull is risky for one’s healthiness. The French Health Authority has moved out one step extra by not approving the Red Bull product against selling in France, considering it is not in compliance among the country’s food and health rules. Previous media states that have been targeted concerning parents stating that the levels of caffeine inside the Red Bull can be risky if used by kids / young people, who are accurately the product’s goal customer. Red Bull has gone to the limits of looking for scientific evidence that its product is not dangerous for use and at large several reports to control the negative media awareness.

Failure to shift forward by the product

Red Bull is famous because of its ground-breaking advertising; nevertheless the product possibly will be in threat of turning into up to date. With shunning usual advertising ways and choosing the online advertising and animation advertisement, the purpose of draw the attention of 15 – 30 year olds is effective, but for how long? Mix this plus their huge investment within tremendous sport events but what will be their then the next move to remain on being innovating and catching the attention.

Aptitude to get new consumers and keep present consumer loyalty

By Red Bull’s target market at present planed at teenagers there is the doubt of whether this age group will carry on drinking Red Bull since they grow up. And will the then be a future generation says yes to this product?

PEST Analysis of Red Bull


If Government forces health and safety limitations on the quantity of energy drinks that have to be consumed, it would have an effect on the quantity of energy drinks that are purchased.

If Government set up import/export charges on the energy drinks market, it may rise / reduce the quantity of energy drinks that are imported and exported.


Inflation would raise the cost of drinks and all at once, customers’ actual disposable earnings will decrease. Consequently, customers are probably to purchase a less amount of energy drinks, because they are not requirements.


If business come to a decision to begin its product in a new country, its prices possibly will increase, as since it will have to make another language labels.

Since the population of youths rises, energy drinks companies possibly will observe an improve in the quantity of drinks sold.


Additional hi-tech technology possibly will allow companies to produce extra drinks with less cost and also getting better quality of the packaging.

Companies can use the Internet to assist advertise and encourage its products. Moreover it can sell huge amounts of its product straight to its customers. It is the latest method to link with customers i.e. low-cost and well-organized market study method.

Segments where Red Bull is growing fastest:

RED BULL with sugar:


Men and women aged 16-29


Mostly people who are located in the city, while they are probably to be very busy and fatigued. Red Bull appears to have a cooler in the majority of bars and clubs in the city in addition to in suitable stores.


Persons who are fatigued / worried and wish for relaxation and having fun.


Undergraduate and young experts to increase energy during work long day at work.

RED BULL zero-sugar:


Women aged 16-29


Mostly in the city where there are a lot of young experts women.


Drivers who are fatigued and require improving their concentration. Women who would like energy improver but are on a diet.


Women who have a car and drive it frequently for long rides or are continuously stuck in traffic after work. In addition to fatigued health

Problem Children :

Build selectively.

Focus on defendable niche where dominance can be achieved.

Harvest or divest the res.


Build sales and market share.

Invest to maintain increase leadership position.

Repel competitive challenges.



Focus on defendable niche

Cash Cows:

Hold sales and market share

Defend position

Use excess cash to support stars selected problem children and new product development

Developing strategies:

Ansoff and marketing communications

Existing Products

New Products

Existing Markets

Retention, switching, volume increase

Awareness, information, trail, endorsement

New Markets

Awareness switch, trial

Brand awareness, brand associations / values


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