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An Austrian Company created Red Bull back in 1987. Red Bull is an energy drink and is besides the universes most popular energy drink, holding sold 4.6 billion tins in 2011. The drink was foremost sold in Thailand and so modified to accommodate the gustatory sensations of people in the United States. A individual can of Red Bull has the same sum of as a cup of java. Depending on the state, the degree of caffeine in a can of Red Bill can change, as some states have limitations on how much caffeine is allowed in drinks. The merchandise is marketed through advertisement events such as athletics squad ownerships, famous person indorsements, and music. Unfortunately, Red Bull is non market approved in France, Denmark, and Norway. But Red Bull is legal in 164 states around the universe. Due to the possible wellness hazards associated with the drink, Red Bull has been to a great extent criticized. We will further discourse in item the wellness hazards associated with the energy drink in the contents of our paper ( ) .

Mission Statement

Harmonizing to Red Bull, “ [ Their ] mission is to be the prime seller and provider of Red Bull in Asia, Europe, and other parts of the Earth. [ They ] will accomplish this mission by constructing long-run relationships with the people who can do it go a world ” ( ) . The company besides has a vision statement that focuses on 5 facets of their company values: Peoples, Portfolio, Partners, Profit, and Productivity. Red Bull wants to be “ a great topographic point to work ; where people are inspired to be the best they can be. ” They want to “ convey to the universe a portfolio of quality drinks that anticipate and satisfy people ‘s desires and demands. ” Red Bull wants to “ foster a winning web of clients and providers ; together we create value. ” They want to “ maximise a long-run return to stockholders while being aware of [ their ] overall duties. ” Red Bull besides wants to “ be a extremely effectual, thin, and fast-moving organisation ” ( ) .

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Situation Analysis

Industry Analysis


In the drink market, energy drinks are arguably the fastest growth and most originative group. Since 2004, the March has yearly increased volume growing by about 14 % . Geographically, the most consumers are in Asia, followed by North America and Western Europe. Harmonizing to the 2010 Global Energy Drinks Report, “ Australia and Latin America are two parts that have recorded strong double-digit growing in energy drink volumes. ” Handiness is the cardinal thrust of gross revenues and energy shootings are rapidly going the following “ fab ” ( ) .


In the energy drink market there are legion companies and a choice few competing for Red Bull ‘s top topographic point. Rockstar, Monster, 5-hour energy, full Throttle, NOS, Pepsi Co. , and Coca-Cola Co. are the chief rivals. Monster energy drink with the logo of three claws in the form of a “ M ” is distributed by Hansen Natural Corporation in Corona, California. With a reasonably tolerable gustatory sensation, this drink sparks you up and battalions rather a barbarous clout. Rockstar was formulated in 2001 and is one of the fastest turning drinks in the market. This trade name besides has merchandises that figure in the list of energy drinks with intoxicant. Full Throttle is produced by the Coca-Cola Company and debuted in late 2004. They are well-known for their great spirits ( ) .

Consumer Profile

Demographic displacements, every bit good as altering consumer attitudes, will besides hold an impact on energy drink gross revenues. Younger consumers have been the primary consumers due to their gustatory sensation and image features. From a ingestion point of view, energy drinks have benefited from their usage as a sociable with liquors. However, advancing the usage of an energy drink to younger consumers or as a sociable has led to negative promotion for some energy imbibe trade names. Harmonizing to Mintel chief tendencies analyst Richard Cope, “ Peoples are working longer into retirement and there is a greater demand for merchandises geared towards verve and wellness in the senior work force. At the minute energy drinks are marketed towards the young person market, ” he said, “ but they will go more about acquiring people through the twenty-four hours at an older age ( ) . ”


Technology, or more specifically the cyberspace, has created another nexus between Red Bull and consumers. When sing their web site, people are able to see assorted facets of the company. There are links for: merchandises and company, picture, exposures, music paths, merely heroic poem, games, ted bulletin,, and ruddy bull signature series. This engineering does an first-class occupation of advancing the trade name in many different ways ( ) .

SWOT Analysis


Red Bull has legion strengths. The company was founded in 1984 and by 1987 it launched its first merchandise in a wholly new class of drinks. Today Red Bull is sold in 164 states around the universe. Since its introduction 25 old ages ago, Red Bull has sold 30 billion tins, with more than 4.5 billion last twelvemonth. Due to their success both domestically and internationally, the company has expanded to over 8,000 employees worldwide ( ) .

Their leading within the energy drinks market is sub-none. They are by far the most popular company. Top-seller Red Bull posted $ 2.3 billion in gross revenues, which is a 14.3 per centum addition, harmonizing to Symphony IRI informations ( ) .

Harmonizing to Red Bull, “ Numerous scientific surveies on the merchandise and the single ingredients prove that Red Bull Energy Drink: additions public presentation, increases concentration and reaction velocity, improves watchfulness, stimulates metamorphosis, and makes you experience more energetic and therefore improves you overall well-being ” ( ) .


Despite holding legion strengths and world-wide popularity, Red Bull still has a few failings. To get down with, Red Bull is in the above mean monetary value scope of the energy drink market. Second, there is a significant deficiency of invention. Red Bull merely offers a few merchandises where as some of their rivals offer more. Third, Red Bull ‘s formula is non patented. This could potentially take to another company bring forthing a really similar or exact merchandise with merely a different name. Fourth, Red Bull is non yet a big corporation as they still have less than 10,000 employees ( Tyagi ) .


The biggest menace to Red Bull is Red Bull itself. The ingredient mix that their merchandises contain is non FDA approved. On top that, authorities and scientists are happening that high sums of caffeine, sugar, and taurine are highly unhealthy and possible fatal. France and Denmark have gone to such steps as to censor Red Bull as a “ cocktail of decease. ” High sums of sugar have been found to do serious wellness jobs. A little sum of taurine, which is still a immensely unknown ingredient, is thought to be good, but scientists are get downing to happen wellness hazards it causes. Red Bull energy drinks besides contain a extremely unsafe chemical called Glucuronolactone. The US Department of Defense developed this merchandise during the Vietnam War as a hallucinogenic drug to excite military personnels ‘ morale. Harmonizing to studies, “ their effects in the being were so annihilating, that is was discontinued of the high index of instances of megrims, intellectual tumours, and liver diseases that occurred in the soldiers who consumed it ” ( Helmi ) . Red Bull must carefully watch its larger rivals, Pepsi and Coca-Cola, who would wish nil more than to obtain Red Bull ‘s consumers. Besides, healthy organic energy drinks are get downing to come in and go competitory in the market ( Tyagi ) .


Red Bull ‘s greatest potency lies in its chances. Gross saless of energy drinks have taken on the energy of its merchandises compared to a twelvemonth ago. The energy drinks class increased 15.7 per centum for $ 6.9 billion in gross revenues, harmonizing to Symphony IRI Group, Chicago, for the 52 hebdomads stoping May 15 in U.S. supermarkets, drug shops, gas and convenience shops and mass ware mercantile establishments, excepting Wal-Mart ( ) .To Begin with, since they merely have a few merchandises, Red Bull has the chance to make new merchandises. Second, they have an limitless ability to publicize and advance their trade name. Currently, Red Bull is the major participant in the action and out-of-door athleticss advertisement. However, if they were to go on making that, but besides enter into another market such as UFC, pugilism, or even mainstream athleticss such as football or baseball, this would make a potentially exponential consumer base. Third, if Red Bull could spouse with a popular company such as Facebook or Apple, this would make more mundane exposure via societal media ( Tyagi ) .

Marketing Aims

A selling aim is a statement of what is to be accomplished through selling activities. The end of Red Bull is evidently increasing gross revenues more than last twelvemonth. Red Bull leads an energy drink industry so far ; nevertheless, Monster has been catching up greatly in the yesteryear a few old ages. Therefore, they need to hold a good selling aim to maintain the place of figure one marketer in an energy drink industry and increasing their gross revenues. In order to carry through their selling program, they need to cover several standards of marketing nonsubjective such as realistic, mensurable, time-specific, and compared to a benchmark ( ) .

Red Bull refused to print their net incomes, net incomes and specific selling end ; nevertheless, increasing their net income than past old ages is clear and accurate their end of every twelvemonth. They besides compute their one-year net income terminal of a twelvemonth every twelvemonth. In 2011, Red Bull sold 4.631 billion tins worldwide. It represents an addition of 11.4 % against 2010. Company turnover increased by 12.4 % , from 3.785 billion Euros to 4.253 billion Euros. Therefore, their cardinal countries such as grosss, gross revenues, productiveness, operating net income, and the figures recorded were the best in the history of the company so far. Harmonizing to industry selling studies, “ The chief ground for such progressive figures include exceeding gross revenues, particularly in cardinal markets such as the USA ( +11 % ) and Germany ( +10 % ) and besides in other markets such as Turkey ( +86 % ) , Japan ( 62 % ) , France ( +35 % ) , and Scandinavia ( +34 % ) combined with efficient cost direction and ongoing trade name investing. ” The consequence of these figures indicate Red Bull continue increasing gross revenues and carry throughing the end. Red Bull is successfully growing because of their selling program that increasing their net income than past old ages and calculating their one-year net income terminal of a twelvemonth are realistic, and time-specific ( ) .

In order to increase a net income of the company, advertizement is one of really of import elements. Red Bull builds up alone selling runs and many different sort of activities such as mountain biking, snowboarding surfboarding, skateboarding, freestyle motocross, and Formula 1 rushing. They merely succeeded in the selling run “ Red Bull Stratos. ” Felix Baumgartner jumped at 128,000 pess above the Earth that reached a high velocity of 833.9 stat mis per hr. Peoples can non acquire a image of Felix without the Red Bull logo and that is their selling scheme. Red Bull considers that selling is non merely section ( Chun ) .

Their utmost athleticss activities contents represent the symbol of their trade name ; hence, they launched Red Bull Media House service. Red Bull Media House is a multi-platform media company with a focal point on athleticss, civilization and life style. They provide and distribute the picture, which are cherished, cool, and adventuresome ; hence, people are able to acquire bangs from the films. The selling program of Red Bull Media House is doing net income from its services. They besides expect the service serve a map as an advertizement and aid to increase gross revenues of Red Bull. Harmonizing to Red Bull laminitis and CEO Dietrich Mateschitz, he states, “ In long term, we expect that Red Bull Media House to be profitable. ” Therefore, their selling aim of Red Bull media House is non clear. There is a realistic to accomplish their end when they consider long term to acquire net incomes from its Red bull media house services because particularly the attendings from immature people to extreme athleticss are increasing. Red Bull Media House besides needs to go more popular to be profitable. Their end is non mensurable and time-specific because Dietrich merely references Red Bull Media House will be profitable in the hereafter. Their program is excessively obscure and they do non find the day of the month of their accomplishment such as December 31, 2015. However, at the same, they besides consider Red Bull Media House is portion of selling content and desire that the services and the picture of Red Bull Media House assist gross revenues of Red Bull. Therefore, we can see the logotype of Red Bull on the participants ‘ helmets, caps, and shirts in the films from Red Bull Media House. They are excited to establish Red Bull Media House and supply the services ; even though, they might non be able to do net incomes the first a few old ages because they tend to see the loss of net incomes as outgo of selling ( Iezzi ) .

Selling Scheme

Target Marketing Strategy

A mark market is a group of persons that is most likely to purchase a house ‘s merchandise based on similar features, penchants, and life styles. From the beginning, Red Bull has set out to tie in itself with youth civilization and extreme, adventure-related athleticss. Red Bull ‘s mark market is chiefly Generation Y, aged anyplace between 18-35, who enjoy utmost athleticss and an active night life. This active group of persons does non react good to the typical, authoritative selling schemes of most companies. Red Bull relies to a great extent on a scheme that has become known as “ viral ” selling, or word-of-mouth, to distribute the popularity of the drink, instead than traditional methods. Red Bull is seeking to be every bit near as possible to its consumers in its distribution scheme and likewise in its publicity scheme by holding a ‘street selling ‘ scheme. They have put themselves in the centre of their mark market and made themselves an icon in a broad assortment of athleticss such as mountain biking, motocross, BMX, windsurfing, snowboarding, skateboarding, kayaking, cliff-diving, surfing, rally, Formula 1 racing, NASCAR, desert racing, and even breakdancing. This may be a broad choice, but it is great for Red Bull because each athletics is focused around Generation Y, which gives them a wide fan base.

Marketing Mix


Red Bull is arguably one of the most publicised and well-known organisations in the action athleticss community, which is phenomenal sing they basically merely have one merchandise. This one merchandise was the first energy drink of its sort, and has fundamentally remained the same of all time since. They have added a few fluctuations of the original, Sugar Free and Total Zero, along with Red Bull Editions that give a little assortment of spirit. Red Bull was developed specifically to increase mental and physical effort, addition public presentation and concentration during times of emphasis, and better reaction velocity, which is where their slogan “ Gives You Wings ” started ( ) .


Red Bull distributes their merchandise through a few different distribution channels. The first is the Direct Channel where the manufacturer interacts with the consumer. They set up booths or have the “ Wings Team ” drive their Red Bull autos to events and manus out their merchandise to consumers first manus. The other distribution channel is the jobber channel in which Red Bull sells their merchandise to a jobber, who so sells it to a retail merchant such as gas Stationss and convenience shops, who so sell it to the consumer. Red Bull is besides involved in the saloon scene and has strict regulations about blending “ the right drink ” and a saloon. The bartenders are instructed to give what remains in the can to the consumer to farther Red Bull ‘s visibleness of the merchandise ( Louvet ) .


Red Bull ‘s publicity scheme began with the “ Wings Team, ” who were attractive female pupils, whose function was to set up a relationship with the consumers, to hold them discover the merchandise, and see what consumer sentiment was. Red Bull ‘s first mark was college campuses, because this is where they felt they could do the biggest impact, on pupils who were seeking an excess encouragement of energy. Red Bull would confer with with the Student Brand Manager at school to guarantee that Red Bull was present at every strategic minute on the societal calendar such as featuring events and large parties. “ The strength of Red Bull is an ability to transfuse a echt passion for the trade name in the Wings Team and the Student Brand Managers. Therefore, these committed people are more likely to advance a good image of the trade name and to hold a greater positive impact on targeted consumers ” ( Louvet ) . Since this, Red Bull has expanded drastically and changed their publicity scheme.

Red Bull explicitly states that they do non affect themselves in print advertisement such as newspapers and magazines ; alternatively, they rely on telecasting, societal media, and out-of-door media to publicize. Since 1992, Red Bull has created inexpensive sketchs with simple but recognizable drawings, stating amusing and simple narratives. These were a immense benefit for them because they were easy adaptable to markets all across the Earth. Red Bull besides displays out-of-door media at every even possible with immense collapsible shelters and exhibits, inflatable tins and arches ; every bit good as usage painted helmets, racecars, choppers, and aeroplanes for all of their jocks. Social media has become Red Bull ‘s best manner of advertisement. It is an easy manner to acquire one simple image, picture, or message around the Earth in less than a few seconds. They are celebrated for their viral pictures, which are spread wholly by fans and followings. Red Bull presently has 34.5 million likes on Facebook, 480 1000 followings on Instagram, 843 1000 followings on Twitter. With all the progresss in Internet and societal media Red Bull has found a perfect niche market where the consumer spreads the word faster than the manufacturer ( ) .

Monetary value

Red Bull sees themselves as a high quality company that offers a high quality merchandise, which is why they have a rigorous pricing policy. Their merchandise is the most expensive amongst rivals because they are esteemed and have client trueness ( ) .

Execution, Evaluation, and Control

Marketing Research

Red Bull has managed to revolutionise the universe of energy drinks. It has permeated globally and hopes to spread out into even more states. Their success can be traced to a well-established selling program. Since their origin into the market, Red Bull has relied on their research to follow a successful way. Harmonizing to Lamb, “ selling research can assist directors in several ways, it improves the quality of determination devising and helps directors hint jobs ” ( pg. 292 ) . By holding a well-established selling scheme a company can be really profitable. Red Bull has chosen to shift themselves by aiming a specific market. They opt for aiming younger persons involved in action athleticss and with a really active life style. Red Bull has a really irregular manner of selling ; they rely to a great extent on “ bombilation selling ” or word of oral cavity. It is astonishing that a universe renowned company reached such success merely with an effectual selling scheme and by word of oral cavity advertisement. Another construct entailed in marketing research is, the ability to understand the of all time altering market place. This is another factor that has contributed to their success because they are cognizant of the altering tendencies, particularly amongst the younger population or in other words, coevals Y ( ) .

Organizational Structure and Plan

Harmonizing to Lamb, “ many of the historic beginnings of competitory advantage-technology, invention, economic systems of scale-allowed companies to concentrate their attempts internally and thrive ” ( pg. 7 ) . In other words, Red Bull has been able to go successful because it has followed through the many factors that instill competitory advantage amongst other trade names in the market portion. Red Bull truly takes into consideration the three factors that allow for a adept organisational focal point. These are client value, client satisfaction, and edifice relationships. First, client satisfaction is “ client ‘s rating of a good or service in footings of conditions it has met their demands and outlooks ” ( Lamb, pg 9 ) . Customers that purchase Red Bull already have an sentiment and cognize what to anticipate from the merchandise. Second, constructing relationships, which is pulling new clients or keep its current clients. “ Companies can spread out market portion in three ways: pulling new clients, increasing concern with bing clients, and retaining current clients ” ( Lamb, pg. 9 ) . Third, relationship selling, as a scheme that focuses on maintaining and bettering relationships with current clients. All these constituents contribute to client relationship direction. In which, the company designs a concern theoretical account to cut down costs and increase profitableness by beef uping client satisfaction and trueness. Red Bull does a great occupation of implementing all of the three constituents in keeping a good relationship with its clients. For illustration, a immature individual who is interested in utmost athleticss has trueness to the merchandise, because Red Bull is associated with the athletics and it likely sponsors the popular jocks ( ) .

Fiscal Projections

Red Bull has made a few projections sing its fundss and advertisement schemes. One of their schemes was to go more aggressive in their schemes, some were introduced at the terminal of the 2011 financial twelvemonth. Harmonizing to their web site, “ In 2011, 4.631 billion tins were sold worldwide. That is an addition of 11.4 % since 2010. In all cardinal countries such as gross revenues, grosss, productiveness and operating net income, the figures recorded were the best in the company ‘s history so far ” ( ) . In other words, as of the terminal of 2011, Red Bull employed 8,294 people in 164 states. The company ‘s selling program for 2012 stated that, “ Market Share Red Bull anticipates through the undermentioned twelvemonth to be able to increase its market portion by 10 % , raising it to 58 % of the market portion. Through assorted media channel, Red Bull has set a end to put itself farther in front from all rivals and construct an undeniable trade name trueness among a different demographic ” ( ) .

Implementation Timetable

In this subdivision, the company implements the selling scheme and establishes company ends. As explained antecedently, Red Bull hopes to bring forth more gross revenues ensuing from their new selling program. The company plans to publicize, on the web, test, sponsorship, publicity, viral and on telecasting. However, for the old ages to come they hope to switch their mark market from immature persons to 35-65 twelvemonth olds. The company besides stated some ends for this twelvemonth. They want to increase gross by, “ the undermentioned twelvemonth, Red Bull has set a end to increase gross by 20 % $ 6.22 billion. By deriving clients in a new demographic, every bit good as let go ofing a revamped run, Red Bull believes this is possible ” ( ) . This is to state that, the company has established ends that can be attained if their selling program is successful. It is really likely that it can carry through those ends, merely because even after many old ages, it remains the top name in energy drinks.

Positives, Negatives, and Recommendations


The universe ‘s most recognizable and profitable energy drink Red Bull posted gross of more than $ 5.1 billion in 2010, and gross revenues of the merchandise are go oning to increase each twelvemonth. Red Bull spends an incredible 30-40 % of their gross on selling. The bulk of Red Bull energy drinkers are between the ages of 18-34 twelvemonth old males. The drink grabbed the attending of their mark user and cleanly grew, and go the trade name selling scheme that translated into “ We are with you and one of you ” . The recent 2011-2012 focal point of Red Bull energy drink is seeking to increase consciousness among the 35-65 crowds, both male and female. The ground for Red Bull ‘s singular selling scheme relies solemnly on the undermentioned four constructs ( Andy ) :

1. Consumer battle through sportsmanship

2. Videos of utmost athletic achievements posted on YouTube that go viral.

3. Brand acknowledgment through logo impregnation.

4. Attainment of widespread trade name acknowledgment and trueness foremost among a nucleus demographic, so constructing a believable span to accomplish it.

Because Red Bull ‘s aiming audience is the “ Y Generations ” , the company has developed a “ Wings Team ” to develop and set up a relationship with the consumers and to discourse with consumers about their grasp or dissatisfaction of the merchandise. One of Red Bull ‘s schemes is to be present at school events, large parties, featuring events, and school/social calendars. One of the many strengths of Red Bull is their echt passion for their trade name and consumers who are committed to their energy drinks. These committed people are likely to advance a good image of the trade name and have a greater impact on targeted consumers ( Louvet ) .


Even though Red Bull ‘s selling scheme is proven to be the best, they are confronting a negative promotion about the wellness hazards that the drink leads to. Because of the many wellness hazards associated with the energy drink, states such as Denmark and France have banned the drink from their markets. The energy drink contains high degree of sugar and caffeine and taurine, hence doing a assortment of wellness hazards such as bosom jobs, dizziness, hallucinations, damaged tooth enamel, and other lasting jobs. Some surveies that were conducted showed that the merchandise is linked to bosom disease and high blood force per unit area. Unfortunately, the merchandise has non been exhaustively “ clinically ” tested as of yet. A disadvantage of Red Bull is that the merchandise is expensive compared to other caffeinated drinks. Due to these issues, Red Bull has late developed Red Bull Cola, which is an all-natural, incorporating no man-made preservatives or spirits energy drink ( Louvet ) .


As a group, we concluded that Red Bull should seek to diminish their pricing in order to keep their mark market of the immature coevals. If the energy drink continues to increase in monetary value, it might force the merchandise out of its prestige place in the market. Red Bull is known for candidacy at school events, utmost featuring events, etc. but this must be kept unchanged if the merchandise wants to go on their strategic selling program. For the long tally of Red Bull, the company should be believing about some ethical facets of the merchandise, such as the negative wellness hazard associated with the drink.

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