Brief 3 | Red Bull Analyze

Red Bull specializes in energy drinks. The Red Bull Company also distributes and markets a number of other drinks in the United Kingdom including the Carpe Diem range of herbal soft beverages and the Sabai Wine Spritzer. The original Thai Krafting Daeng is often available in many Asian grocery stores in New Zealand, Australia, and Canada. It’s usually cheaper than the domestic (mainstream Red Bull) variety.


Competitors:
The majority of consumers are using Red Bull as a vitamin supplement or energy stimulant in place of preferred stimulants such as ginseng, no doze pills, energy bars, and Ma Huang. Red Bull, with its liquid B-vitamin supplement, competes in the niche market for vitamins and is competing with the larger pharmaceutical companies.

Red Bull is also competing indirectly with various drink mixers such juice, sour mix, and tonic. The most infamous drink mixer use is the Jagarbomb. Red Bull initially marketed its energy drinks to the average club-goers. However, due to various health concerns and fatal incidents associated with Red Bull when mixed with alcohol, explicit warnings have been placed on product labels discouraging improper use.
Advertising:
Red Bull devised an innovative marketing approach to mainly target the young adult and consumers seeking an energy boost. As with any successful business, Red Bull is truly committed to creating superior value to the customers in its market orientation. Red Bull, being first to exploit the energy drinks market, pursues a mix of product oriented and consumer pre-occupied market oriented market strategy.



Sponsoring:
"In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi," says Nancy F. Koehn, professor of business administration at Harvard Business School and author of Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell[v]. "Red Bull is building a beverage brand without relying on the essential equipment of a mass-marketing campaign. Perhaps the indispensable tools of marketing aren't so indispensable after all."
Red Bull essentially threw the traditional marketing book out the window. Their highly acclaimed strategy has been described as: Grassroots, guerilla, word-of-mouth, underground, buzz-marketing and without a doubt, successful.

Target audience:
Red Bull targets young adult consumer ages 16 – 29, young urban professionals, and post secondary school students. Red Bull created strategic program to attract post-secondary students by providing them free cases of drink and convincing them to throw party and also, targeting club goers by stocking Red Bull at the clubs. This viral campaign created a noticeable effect by boasting sales. Supported by sleek advertising, it came out with small silver blue can to attract young urban professionals who prefer stylish life, providing another reason to drink Red Bull, the style, as suggested by the advertisement slogan, “Red Bull Gives You Wings”.


Distribution:
Red Bulls distribution strategy was, like all else, atypical. Instead of targeting the largest distributors with the greatest reach Red Bull targeted small distributors who often became exclusively Red Bull distributors. They even went to the extreme of hiring teenagers / college students and giving them vans to distribute the product. Small independent venues were also the first targets. Red Bull would find the small bars, restaurants and stores and give them a small cooler to sell the beverage from. This was preferred rather than dealing with the demands of the larger stores, who eventually were begging to sell the product.


Urban Legend/Mythical Status:
One effective brand builder was not initiated by the company. Red Bull faced many obstacles in gaining regulatory approval in several countries because of their unique ingredients. During this time a rumor circulated that the taurine used came from bull’s testicles and Red Bull was “liquid Viagra”, which made the drink even more mystic. Adding to the allure was the fact that the beverage has actually been banned in several countries such as France and Denmark.


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