Red Bull Company Information Commerce Essay

An Austrian Company created Red Bull back 1987. Red Bull is an energy drink and is also also the worlds most popular energy drink, having sold 4. 6 billion cans in 2011. The drink was first bought from Thailand and then altered to match the tastes of folks in america. An individual can of Red Bull has the same amount of as a sit down elsewhere. With regards to the country, the amount of levels of caffeine in a can of Red Charge may differ, as some countries have constraints on how much levels of caffeine is allowed in beverages. The merchandise is sold through advertising incidents such as sport team ownerships, superstar endorsements, and music. However, Red Bull is not market approved in France, Denmark, and Norway. But Red Bull is legal in 164 countries surrounding the world. Because of the potential health risks from the drink, Red Bull has been closely criticized. We will further discuss in detail the health dangers associated with the energy drink in the details of our paper (redbull. com).

Mission Statement

According to Red Bull, "[Their] objective is to be the premier internet marketer and company of Red Bull in Asia, European countries, and other areas of the globe. [They] will achieve this mission by building long-term associations with individuals who makes it become a reality" (redbull. com). The company also offers a vision declaration that targets 5 areas of their company values: People, Collection, Partners, Income, and Efficiency. Red Bull wants to be "a great place to work; where people are encouraged to be the best they could be. " They want to "bring to the planet a portfolio of quality beverages that anticipate and satisfy people's wants and needs. " Red Bull would like to "nurture an absolute network of customers and suppliers; jointly we create value. " They would like to "maximize a long-term go back to shareowners while being conscious of [their] overall obligations. " Red Bull also needs to "be considered a highly effective, lean, and fast-moving firm" (redbull. com).

Situation Analysis

Industry Analysis


In the drink market, energy drinks are arguably the most effective growing & most creative group. Since 2004, the mar has yearly increased volume development by about 14 %. Geographically, the most individuals are in Asia, followed by North America and Western European countries. Based on the 2010 Global ENERGY BEVERAGES Report, "Australia and Latin America are two parts that have documented strong double-digit expansion in energy drink quantities. " Supply is the key drive of sales and energy shots are quickly becoming another "fab" (rcciinsight. com).


In the power drink market there are numerous companies and a go for few vying for Red Bull's top spot. Rockstar, Monster, 5-hour energy, full Throttle, NOS, Pepsi Co. , and Coca-Cola Co. are the primary rivals. Monster energy drink with the emblem of three claws in the condition of an "M" is distributed by Hansen Natural Firm in Corona, California. With a fairly tolerable flavor, this drink sparks you up and packages a significant vicious punch. Rockstar was designed in 2001 and it is one of the speediest growing drinks on the market. This brand also has products that number in the list of energy drinks with alcohol. Full Throttle is produced by the Coca-Cola Company and debuted in past due 2004. They are really famous for their great tastes (buzzle. com).

Consumer Profile

Demographic shifts, as well as changing consumer attitudes, will also have an impact on energy drink sales. Younger consumers have been the primary consumers because of their taste and image characteristics. From a utilization standpoint, energy beverages have benefited using their use as a mixer with spirits. However, promoting the utilization of an energy drink to youthful consumers or as a mixing machine has resulted in negative publicity for some energy drink brands. Matching to Mintel main fads analyst Richard Cope, "Folks are working longer into old age and there's a greater dependence on products geared towards vitality and health in the senior workforce. At the moment energy beverages are marketed on the junior market, " he said, "however they can be more about getting people through the day at an older time (rcciinsight. com). "


Technology, or more specifically the internet, has generated another hyperlink between Red Bull and consumers. When going to their website, people are able to view various areas of the company. You will discover links for: products and company, videos, images, music songs, just epic, game titles, ted bulletin, redbull. tv set, and red bull personal series. This technology does an excellent job of promoting the brand in many various ways (redbull. com).

SWOT Analysis


Red Bull has numerous strengths. The business was founded in 1984 and by 1987 it launched its first product in a completely new category of beverages. Today Red Bull is sold in 164 countries round the world. Since its debut 25 years back, Red Bull has sold 30 billion cans, with more than 4. 5 billion last year. Because of the success both domestically and internationally, the company has broadened to over 8, 000 employees worldwide (redbull. com).

Their command within the energy drinks market is sub-none. They are simply the most popular company. Top-seller Red Bull posted $2. 3 billion in sales, which really is a 14. 3 percent increase, regarding to Symphony IRI data (bevindustry. com).

According to Red Bull, "Numerous scientific studies on the product and the average person ingredients confirm that Red Bull Energy Drink: increases performance, increases attentiveness and reaction acceleration, improves vigilance, stimulates metabolism, and makes you feel more energetic and thus enhances you overall well-being" (redbull. com).


Despite having numerous talents and worldwide recognition, Red Bull still has a few weaknesses. To begin with, Red Bull is in the above average cost range of the power drink market. Second of all, there is a substantial lack of invention. Red Bull only offers a few products where as a few of their competitors offer more. Third, Red Bull's menu is not copyrighted. This could potentially lead to another company creating a virtually identical or exact product with simply a different name. Fourth, Red Bull is not yet a huge organization as they still have less than 10, 000 employees (Tyagi).


The biggest danger to Red Bull is Red Bull itself. The ingredient combine that their products contain is not FDA approved. At the top that, federal and scientists are finding that high levels of caffeine, sweets, and taurine are really harmful and potential fatal. France and Denmark have attended such measures concerning ban Red Bull as a "cocktail of fatality. " High levels of glucose have been found to cause serious health issues. A small amount of taurine, which continues to be a vastly unidentified ingredient, is thought to be beneficial, but researchers are beginning to find health risks it triggers. Red Bull energy beverages also contain a highly dangerous substance called Glucuronolactone. The US Department of Protection developed this product through the Vietnam Warfare as a hallucinogenic medication to stimulate troops' morale. Matching to reviews, "their results in the organism were so destructive, that is was discontinued of the high index of instances of migraine headaches, cerebral tumors, and liver organ diseases that took place in the soldiers who consumed it" (Helmi). Red Bull must carefully watch its bigger competition, Pepsi and Coca-Cola, who would like only to acquire Red Bull's consumers. Also, healthy organic and natural energy drinks are beginning to enter and be competitive on the market (Tyagi).


Red Bull's very best potential lies in its opportunities. Sales of energy drinks have taken on the power of its products compared to this past year. The energy drinks category increased 15. 7 percent for $6. 9 billion in sales, according to Symphony IRI Group, Chicago, for the 52 weeks concluding May 15 in U. S. supermarkets, medicine stores, gas and convenience stores and mass items outlets, excluding Wal-Mart (bevindustry. com). To start with, given that they have only a few products, Red Bull has the opportunity to create new products. Second, they have an unlimited capacity to market and promote their brand. Presently, Red Bull is the major player in the action and outdoor sports advertising. However, if they were to continue doing that, but also enter into another market such as UFC, boxing, or even mainstream sports activities such as soccer or baseball, this might create a potentially exponential consumer base. Third, if Red Bull could partner with a favorite company such as Facebook or Apple, this would create more each day exposure via interpersonal media (Tyagi).

Marketing Objectives

A marketing target is a statement of what's to be achieved through marketing activities. The goal of Red Bull is actually increasing sales more than last year. Red Bull leads a power drink industry up to now; however, Monster has been finding and catching up greatly in the past a couple of years. Therefore, they have to have a good marketing objective to keep carefully the position of number 1 seller within an energy drink industry and increasing their sales. In order to complete their marketing plan, they have to cover several criteria of marketing goal such as natural, measurable, time-specific, and in comparison to a standard (redbull. com).

Red Bull refused to publish their earnings, gains and specific marketing goal; however, increasing their earnings than earlier years is clear and correct their goal of every year. In addition they compute their gross annual profit end of any year every year. In 2011, Red Bull sold 4. 631 billion cans worldwide. It presents an increase of 11. 4% against 2010. Company turnover increased by 12. 4%, from 3. 785 billion Euros to 4. 253 billion Euros. Therefore, their key areas such as earnings, sales, productivity, operating profit, and the information saved were the best in the annals of the business so far. Corresponding to industry marketing information, "The main reason for such intensifying information include exceptional sales, especially in key marketplaces like the USA (+11%) and Germany (+10%) and also in other market segments such as Turkey (+86%), Japan (62%), France (+35%), and Scandinavia (+34%) coupled with successful cost management and ongoing brand investment. " The consequence of these figures signify Red Bull continue increasing sales and completing the goal. Red Bull is efficiently growth because of their marketing plan that increasing their revenue than previous years and processing their annual profit end of any year are sensible, and time-specific (redbull. com).

In order to increase a profit of the company, advertising campaign is one of very important elements. Red Bull builds up unique marketing promotions and many different kind of activities such as hill biking, snowboarding surfing, skateboarding, freestyle motocross, and Method 1 race. They just succeeded in the advertising campaign "Red Bull Stratos. " Felix Baumgartner jumped at 128, 000 toes above the Earth that reached a high speed of 833. 9 a long way per hour. People cannot get an image of Felix without the Red Bull custom logo and that is their marketing strategy. Red Bull considers that marketing is not simply division (Chun).

Their extreme athletics contents signify the symbol of the brand; therefore, they launched Red Bull Mass media House service. Red Bull Media House is a multi-platform mass media company with a focus on sports, culture and lifestyle. They provide and spread the videos, which can be precious, cool, and daring; therefore, people are able to get thrills from the films. The marketing plan of Red Bull Press House is making benefit from its services. They also expect the service serve a function as an advert and help to increase sales of Red Bull. Relating to Red Bull creator and CEO Dietrich Mateschitz, he declares, "In long term, we expect that Red Bull Advertising House to be profitable. " Therefore, their marketing goal of Red Bull marketing House is not clear. There is a realistic to attain their goal when they consider permanent to get gains from its Red bull marketing house services because especially the attentions from teenagers to extreme athletics are increasing. Red Bull Marketing House must also are more popular to be profitable. Their goal is not measurable and time-specific because Dietrich just mentions Red Bull Media House will be profitable in the future. Their plan is too obscure and they do not determine the particular date of their achievement such as December 31, 2015. However, at the same, in addition they consider Red Bull Media House is part of marketing content and desire that the assistance and the video tutorial of Red Bull Mass media House assist sales of Red Bull. Therefore, we can see the logotype of Red Bull on the players' helmets, caps, and t shirts in the movies from Red Bull Advertising House. They can be excited to unveiling Red Bull Marketing House and provide the services; even though, they could not have the ability to make revenue the first a few years because they have a tendency to consider the loss of profits as expenditure of marketing (Iezzi).

Marketing Strategy

Target Marketing Strategy

A target market is a group of individuals that is most probably to buy a firm's product based on similar characteristics, choices, and lifestyles. Right from the start, Red Bull has set out to affiliate itself with youngsters culture and extreme, adventure-related sports. Red Bull's target market is mainly Era Y, aged anywhere between 18-35, who enjoy extreme athletics and a dynamic nightlife. This energetic band of individuals does not reply well to the normal, typical marketing strategies of all companies. Red Bull depends heavily on a strategy that has become known as "viral" marketing, or word-of-mouth, to pass on the attractiveness of the drink, somewhat than traditional methods. Red Bull is trying to be as close as it can be to its consumers in its circulation strategy basically in its advertising strategy with a 'block marketing' strategy. They have put themselves in the heart of their marketplace and made themselves an icon in a multitude of athletics such as hill biking, motocross, BMX, windsurfing, snowboarding, skateboarding, kayaking, cliff-diving, browsing, rally, Method 1 rushing, NASCAR, desert rushing, and even breakdancing. This may be a wide selection, but it is great for Red Bull because each sport is focused around Generation Y, gives them a broad group of fans.

Marketing Mix


Red Bull is arguably one of the very most publicized and well-known organizations in the action sporting activities community, which is remarkable considering they essentially have only one product. This one product was the first energy drink of its kind, and has quite simply remained the same ever since. They have added a few versions of the original, Sugar Free and Total Zero, along with Red Bull Editions that give hook variety of flavour. Red Bull was developed specifically to increase mental and exercise, increase performance and attention during times of stress, and improve reaction acceleration, which is where their slogan "Gives You Wings" started out (redbull. com).


Red Bull distributes their product by way of a few different distribution channels. The first is the Direct Route where the maker interacts with the consumer. They set up booths or have the "Wings Team" drive their Red Bull vehicles to situations and give away their product to consumers first side. The other syndication channel is the wholesaler channel in which Red Bull markets their product to a wholesaler, who then offers it to a shop such as gas stations and convenience stores, who then sell it to the consumer. Red Bull is also mixed up in bar landscape and has stringent rules about combining "the right drink" and a bar. The barmen are instructed to give what remains in the can to the buyer to further Red Bull's visibility of the product (Louvet).


Red Bull's campaign strategy began with the "Wings Team, " who had been attractive girl students, whose role was to establish a romantic relationship with the consumers, to have them discover the product, and find out what consumer opinion was. Red Bull's first target was school campuses, because this is where they believed they could make the biggest impact, on students who had been seeking a supplementary raise of energy. Red Bull would check with with the Learner Brand Administrator at school to ensure that Red Bull was present at every proper instant on the social calendar such as sports and big functions. "The strength of Red Bull is an ability to instill a genuine interest for the brand in the Wings Team and the Scholar Brand Professionals. Thus, these devoted people will promote a good image of the brand and to have a larger positive impact on targeted consumers" (Louvet). Since this, Red Bull has extended drastically and evolved their promotion strategy.

Red Bull explicitly says that they don't involve themselves on the net advertising such as papers and periodicals; instead, they rely on television, cultural marketing, and outdoor multimedia to advertise. Since 1992, Red Bull has generated cheap cartoons with simple but recognizable drawings, revealing funny and simple stories. These were a huge benefit for them because these were easily adjustable to markets all across the world. Red Bull also exhibits outdoor media at every even possible with huge tents and displays, inflatable cans and arches; as well as custom coated helmets, racecars, helicopters, and airplanes for all of their athletes. Social media marketing has become Red Bull's best way of advertising. It is a simple way to get one particular picture, training video, or message around the globe in less than a couple of seconds. They are really famous for his or her viral videos, which are spread entirely by enthusiasts and fans. Red Bull currently has 34. 5 million enjoys on Facebook, 480 thousand followers on Instagram, 843 thousand supporters on Twitter. With all the advancements in Internet and communal advertising Red Bull has found a perfect niche market where the consumer spreads the term faster than the company (redbull. com).


Red Bull perceives themselves as a high quality company that offers a superior quality product, which is why they have a rigorous pricing policy. Their product is the priciest amongst competitors because they're prestigious and also have customer loyalty (redbull. com).

Implementation, Evaluation, and Control

Marketing Research

Red Bull has were able to revolutionize the world of energy beverages. It has permeated globally and expects to extend into even more countries. Their success can be traced to a well-established marketing plan. Since their inception in to the market, Red Bull has relied on their research to follow a successful course. Relating to Lamb, "marketing research can help managers in a number of ways, it boosts the grade of decision making and helps professionals trace problems" (pg. 292). With a well-established online marketing strategy a company can be quite profitable. Red Bull has chosen to reposition themselves by targeting a particular market. They select for targeting more youthful individuals involved with action athletics and with an extremely productive lifestyle. Red Bull has a very unorthodox way of marketing; they count heavily on "buzz marketing" or person to person. It is amazing a globally renowned company come to such success simply with a highly effective online marketing strategy and by word of mouth advertising. Another notion entailed in marketing research is, the ability to understand the ever before changing marketplace. That is another factor that has added to their success because they are alert to the changing fads, especially amongst the younger population or quite simply, technology Y (redbull. com).

Organizational Structure and Plan

According to Lamb, "many of the historic sources of competitive advantage-technology, technology, economies of scale-allowed companies to focus their attempts internally and prosper" (pg. 7). In other words, Red Bull has had the opportunity to become successful since it has adopted through the many factors that instill competitive advantages amidst other brands on the market share. Red Bull really takes under consideration the three factors that allow for a proficient organizational focus. They are customer value, customer satisfaction, and building relationships. Firstly, client satisfaction is "customer's analysis of an good or service in terms of weather it includes attained their needs and objectives" (Lamb, pg 9). Customers that purchase Red Bull curently have an judgment and really know what to expect from the merchandise. Secondly, building interactions, which is appealing to clients or maintain steadily its current customers. "Companies can broaden market show in 3 ways: attracting clients, increasing business with existing customers, and keeping current customers" (Lamb, pg. 9). Thirdly, marriage marketing, as a strategy that targets keeping and bettering relationships with current customers. Each one of these components contribute to customer marriage management. In which, the business designs a business model to reduce costs and increase profitability by strengthening client satisfaction and loyalty. Red Bull will a great job of implementing all the three components in keeping a good relationship with its customers. For instance, a young person who is considering extreme athletics has commitment to the merchandise, because Red Bull is from the sport and it probably sponsors the popular players (redbull. com).

Financial Projections

Red Bull has made a few projections regarding its funds and advertising strategies. Among their strategies was to become more hostile in their strategies, some were launched by the end of the 2011 fiscal yr. According with their website, "In 2011, 4. 631 billion cans were sold worldwide. That's a rise of 11. 4% since 2010. In every key areas such as sales, profits, efficiency and operating profit, the figures saved were the best in the business's history up to now" (redbull. com). In other words, as of the end of 2011, Red Bull employed 8, 294 people in 164 countries. The company's marketing plan for 2012 stated that, " Market Share Red Bull anticipates through the following year to have the ability to increase its market show by 10%, elevating it to 58% of the market share. Through various mass media channel, Red Bull has establish a goal to create itself further ahead from all opponents and build an undeniable brand devotion among another type of demographic" (redbull. com).

Implementation Timetable

In this section, the business implements the marketing strategy and establishes company goals. As described previously, Red Bull hope to generate more sales resulting from their new marketing plan. The business plans to advertise, on the web, trial, sponsorship, promotion, viral and on television. However, for the years to come they hope to shift their target market from young individuals to 35-65 calendar year olds. The business also mentioned some goals for this year. They want to increase income by, "the following season, Red Bull has place an objective to increase earnings by 20% $6. 22 billion. By getting customers in a new demographic, as well as releasing a revamped marketing campaign, Red Bull believes this can be done" (redbull. com). This is to state that, the company has established goals that can be gained if their marketing plan is successful. It is very likely so it can accomplish those goals, simply because even after a long time, it remains the very best name in energy beverages.

Positives, Negatives, and Recommendations


The world's most recognizable and profitable energy drink Red Bull uploaded revenue of more than $5. 1 billion this year 2010, and sales of the product are carrying on to increase each year. Red Bull spends a fantastic 30-40% of these revenue on marketing. The majority of Red Bull energy drinkers are between the ages of 18-34 12 months old men. The drink grabbed the attention of their aim for user and flawlessly grew, and be the brand online marketing strategy that translated into "We could with you and one of you". The recent 2011-2012 focus of Red Bull energy drink is trying to increase awareness on the list of 35-65 crowds, both male and female. The explanation for Red Bull's exceptional marketing strategy depends solemnly on the next four principles (Andy):

1. Consumer engagement through sportsmanship

2. Videos of extreme athletic accomplishments uploaded on YouTube that go viral.

3. Brand popularity through logo design saturation.

4. Attainment of widespread brand popularity and commitment first among a primary demographic, then creating a credible bridge to attain it.

Because Red Bull's concentrating on audience is the "Y Decades", the company is rolling out a "Wings Team" to develop and establish a relationship with the consumers and discuss with consumers about their appreciation or dissatisfaction of the merchandise. One of Red Bull's strategies is to be present at college events, big functions, sporting events, and university/social calendars. One of the many advantages of Red Bull is their genuine enthusiasm because of their brand and consumers who are focused on their energy drinks. These dedicated people are likely to promote a good image of the brand and also have a greater impact on targeted consumers (Louvet).


Even though Red Bull's online marketing strategy is proven to be the best, these are facing a poor publicity about medical risks that the drink contributes to. Because of the countless health risks associated with the energy drink, countries such as Denmark and France have restricted the drink of their markets. The energy drink contains advanced of sugar and caffeine and taurine, therefore leading to a number of health threats such as heart disease, vertigo, hallucinations, damaged tooth enamel, and other long lasting problems. Some studies which were conducted proved that the product is linked to cardiovascular disease and high blood circulation pressure. Unfortunately, the product is not thoroughly "clinically" tested by yet. A downside of Red Bull is that the product is expensive in comparison to other caffeinated beverages. Because of these issues, Red Bull has recently developed Red Bull Cola, which can be an all-natural, made up of no man-made preservatives or flavours energy drink (Louvet).


As a group, we concluded that Red Bull should try to decrease their costs in order to maintain their target market of the young era. In the event the energy drink is constantly on the upsurge in price, it might push the merchandise out of its prestige position on the market. Red Bull is well known for campaigning at institution events, extreme sports, etc. but this must be placed unchanged if the merchandise wants to keep their strategic marketing plan. For the long term of Red Bull, the business should be considering some ethical areas of the product, such as the negative health risk from the drink.

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