History of Red Bull
• 1982 – Dietrich Mateschitz, while visiting Asia,
started drinking “tonic drinks”, which were
very popular in East Asia
• 1984 – Mateschitz founded Red Bull in Austria,
fine-tuning the already existing Krating Dang
recipe for a European market
• 1987 – Mateschitz started selling Red Bull
Energy Drink
History of Red Bull
• To date, over 30 billion cans of Red Bull have
been consumed worldwide, in over 160
countries
• Red Bull first expanded to foreign markets in
1989 to Singapore, 1992 to Hungary, 1994 to
Germany, 1995 in the UK, and finally 1997 to
the USA, starting in California
Growth of Red Bull Globally
•
•
•
•
•
•
•
1987: Available in 1 country
1992: Available in 3 countries
1995: Available in 15 countries
1998: Available in 45 countries
2001: Available in 73 countries
2004: Available in 124 countries
2009: Available in 160 countries
What is It?
• The key ingredients of Red Bull are taurine (1000
mg), glucuronolactone (600 mg), and caffeine (80
mg) in a 250-mL can. The product also contains
sweeteners, such as sucrose and glucose.
• All ingredients are synthetically produced by
pharmaceutical companies to ensure the highest
quality. The composition and ingredients are
uniform throughout the world, except for slight
variations in vitamin content due to national
regulations
Market Background
 Energy drink fighting arena is very aggressive especially for on ground activities in
order to own TOM awareness as well as sales over time
 Consumer target is wide from young adult to much older age, 54. However, key
players tend to build equity among younger groups then retain loyalty over time
to sustain consumer base
 M150 is leading the category with more than 50% share. Krating Dang (REDBULL)
is the runner up and it’s not easy to overthrown M150
 M150 has invested behind the brand via ATL that aims to the younger groups (1525 years old males). BTL is segmented in order to attract across all age groups
 Brand message are mainly about moral support shadowed with energy boosting
mood and tone
Product feature
Sold in a small brown bottle.
The blue label with the bulls
running across.
Brand name:
KRATING = BULL
DANG = RED
Price tag 10 baht (33 cents)
Lipo
6%
CBD
10%
Shark
6%
0.357 Wrangyer
Looktung
2%
2%
1%
With brand & strong distribution of M150
is able to dominate market with 55%
share, followed by Krating Dang (RED
BULL) and Carabao Dang respectively.
M150
55%
Krating Dang
18%
Brand Positioning
Urban
Young
15+
Old 50+
Traditional
Target Consumer
Demographic
Psychographic




Male 18-40 yrs.
Blue collar
Urban lifestyle
Income 5000-9000 baht





($170-$300 per month)
Optimistic
Determine
Fight for a better thing
Work hard to support their
children education
Target behaviors
Hang out place
Hyper market
Modern trade
Music
Country, Blue, Local song
Goods
Food
Road side restaurants
Street stalls
Take away foods
Buy just what they need
Seek out promotion
Electronic appliances
2nd hand
Fake item
Target insight
 Focus on both themselves
and other.
 Devote themselves to earn
as much as they can for
family.
 Must work hard to build a
better life.
 The city means to reach
their dream.
Integrated
Marketing
Communication
Brand Personality





Teens
Extreme
Aggressive
Adventure
Active lifestyle
Krating Dang (RED BULL) IMC quite to concern
with Modern Image, especially in music marketing
it focusing in 15 – 25 years olds only. However
KTD keep adult age with Thai boxing.
TVC
Radio
Promotion
CSR
Internet
Sport
Event
Print
advertise
Music
Event
Billboard
TVC
Radio
Promotion
CSR
Internet
Sport
Event
Print
advertise
Music
Event
Billboard
TVC
Radio
Promotion
CSR
Internet
Sport
Event
Print
advertise
Music
Event
Billboard
TVC
Radio
Promotion
CSR
Internet
Sport
Event
Print
advertise
Music
Event
Billboard
TVC
Radio
Promotion
CSR
Internet
Sport
Event
Print
advertise
Music
Event
Billboard
Target Market in US
• 18 – 34 Males with an “on-the-go” or
“extreme sports” lifestyle
• 34% of 18-24 describe themselves as regular
consumers of Energy Drinks
• Around 50% of US College Students in 2009
consumed at least 1 Energy Drink a month for
either an Energy Boost, to compensate for lack
of sleep, or for boozing (Red Bull Vodka,
Jaeger & Rockstar)
Competitors in the US
• Coca Cola – Full Throttle & Rockstar
(Distribution Deal)
• PepsiCo – Mountain Dew Amp & SoBe No Fear
• Hansen Natural – Monster
• Niche Energy Drinks (Low Calorie, Sugar Free,
formulated for Women)
The Cost
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•
•
•
Red Bull (8.3oz) @ Jackson’s : $2.29
Monster (16oz) @ Jackson’s: $2.39
Rockstar (16oz) @ Jackson’s: $2.19
Red Bull is 593% more expensive in the US,
compared to Thailand
• Red Bull is 84.7% more expensive, per oz,
compared to Monster, 101.6% for Rockstar
Red Bull Market Share
Sales in 2009
21.1%
Red Bull
42.6%
3.6%
Monster (Hansen)
Rockstar (Coke)
Full Throttle (Coke)
6.9%
Amp (PepsiCo)
The Rest
11.4%
14.4%
It gives you wiiings…
• Red Bull’s aggressive and unique marketing
strategy really helped it dominate the US market
when it first came out
• Cheap, Cheesy, Cartoon commercials we all
remember
• Massive sponsorship and expansion into the
extreme sports market, which was also going
through a huge boom when Red Bull was
introduced to the US (Milk & Cookies)
• Moved to a new ad campaign
Sponsorship & POS
• Bar’s and Nightclub’s have Red Bull coolers
• Red Bull Flugtag, Air Race, Cliff Diving, X-Fighters
(motocross), Crashed Ice, Rampage, Paperwings
• Red Bull Records
• Sponsored Professional Sports (Red Bull New York
MLS, Red Bull Salzburg Austria, RB Leipzig
Germany)
• Two Formula 1 teams (Team Red Bull & Scuderia
Toro Rosso). In 2010 Red Bull won the
Constructor & Driver championship in Formula 1
Going Green
• Over 4 billion aluminum can’s were sold last year
• Red Bull tracks the can’s entire carbon footprint
lifecycle
• Reduced can weight, increased recycling rates
• Increased can transportation by rail & sea,
reducing/replacing road transportation wherever
possible
• Using ecologically efficient refrigerators & cooling
agents (All coolers they purchase are ECO coolers
whenever possible)
Questions?
Sources
• http://www.redbullusa.com
• http://onlinelibrary.wiley.com/doi/10.1111/j.1
541-4337.2010.00111.x/pdf
• http://wps.prenhall.com/wps/media/objects/
3357/3438371/chapter%20cases/tuckwell_cas
e04.pdf
• www.youtube.com
• www.bevnet.com