Red Bull Energy drink was founded in the 1980s by Austrian entrepreneur Dietrich Mateschitz in partnership with Chaleo Yoovidhya. This came as an inspiration to an existing drink called Krating Daeng, which was introduced in Thailand by Chaleo Yoovidhya. Dietrich modified the ingredients and the first red bull drink was sold in Austria in the year 1987.
Red Bull is available in 169 countries and around 5.9 billion were sold in the year 2015 around the world. It has grown and has now become the highest selling energy drink in the world. It started as an energy drink consumed by Thai truck drivers and laborers and now has now become the most preferred energy drink worldwide by sportsmen, workaholics, youth and many active people’s lives. Red Bull is especially produced targeting the sports people and it is considerably growing in that segment worldwide.
When it comes to hitting the marketing in the Philippines, Red Bull must examine how the implementation strategy using the marketing mix. In addition to that, the company must understand the cultures, beliefs, and way of life of Filipinos to adapt the product into the social structure of the country.
Product
Red Bull drink idea came from Krating Daeng which is a non-carbonated energy drink available originated in Thailand. Red Bull drink contained ingredients like that but a few more added to accommodate the western taste and became carbonated. The product mix of Red Bull can be elaborated as follows. Red Bull energy drink contains caffeine, taurine, B vitamins, sucrose and glucose which is mainly required by workaholics, sports people or even youth who want to party at night. As there is a usual trend that occurs in the younger segment, they came up with a sugar free variant called Red Bull SugarFree which contains aspartame and acesulfame K instead of sucrose and glucose. The drink is available in a tall blue-silver can with 2 red bulls on the front whereas Krating Daeng is a gold short can. The two products are produced differently and available in different countries and red bull is a much more popular energy drink worldwide.
With the different variety of drinks, Red Bull can expand into the market of the Philippines by promoting their sugar-free
• The Red Bull energy drink is a functional product developed especially for periods of increased mental and physical exertion.
In today's world, the name Red Bull and the slogan "Red Bull Gives You Wings has been inscribed into the minds of consumers around the globe. The popular energy drink, which seems to have sky-rocketed in US as well as world-wide sales is no miracle drug, although it does seem that way by the overflowing demand. Known to many as a coffee substitute, Red Bull is able to give its buyers that extra push or burst of energy to keep their day going due to its increased amounts of caffeine, without the nasty aftertaste of coffee. No doubt its marketing strategies have made a massive impact on its increased sales, but at its start, it is no lie to call Red Bull a self-made success. In a time where everyone is
Over the last decade, drinks containing high amounts of caffeine, sugar, and other ingredients that increase energy have been rapidly growing in popularity. Clearly these beverages are known as energy drinks. Energy drinks have gotten so popular that it is extremely rare to find a convenience store that doesn’t sell a variety of them. Students use energy drinks to cram the night before a test, athletes use them to exercise, party animals mix them with alcohol to drink more than humanly possible, and some people just drink them to stay awake at work after a sleepless night. Red Bull, one of the most popular energy drinks in the market, claim to enhance
Red Bull targets only a particular segment of market and therefore makes its product only available at those places where the target can be reached. The energy drink can be bought at colleges, supermarkets and is mainly associated to extreme sports. In particular, the energy drink has also known a tremendous success in India, where the segment is the fastest growing in the category, due to India’s youth centric population and fast urbanization. Red Bull was actually the brand that created energy drink category in India (Docstoc, April 2012).
Red Bull is now in the position as the market leader of energy drinks sector, which hold up to 70 percent of the market shares
The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing.
Red Bull energy drink competes in the Non-alcoholic drink market which could be the overall Food and Beverage market. ‘Red Bulls target market is young, on the go, who enjoy extreme sports and live an active nightlife, anywhere from 18-35’(Swartz,Jon).
Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")
Red Bull is a privately owned company, producing and distributing the Red Bull energy drink to more than 165 countries worldwide. The company was founded by Dietrich Mateschitz in Austria in 1984 and launched Red Bull onto the Austrian market in 1987. Since then more than 35 billion cans of Red Bull have been consumed. Red Bull employs over 8,900 people throughout the world, its corporate headquarters are located in Fuschi am See, Austria. (N/A, 2012).
After seeing the success that Red Bull has got in the energy drinks market, new brands are entering this market. Hence, it is essential for Red Bull to make certain changes in its marketing, production and
Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
Red Bull has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and
Red Bull can be called as a pioneer in the energy drink category worldwide. In India too, Red Bull was the brand that created the energy drink category.
Red Bull has a large market share in the energy drink market and it is one of the most popular energy drinks in the world, this may help us to increase the demand for the product and maybe develop a new product within the same brand.