Company History   Original idea of Red Bull emerged in 1984.

  Dietrich Mateschitz (Austrian entrpreneur) developed the brand.

  Development took over 3 years, was thought to be a failure in United States.

  Developed from Thai energy drink called: Krating Daeng, which means “Red Bull”

  Global company; Red Bull entered its first foreign market, Hungary in 1992

  Enters the United States in 1997

  Most known slogan: “Red Bull, it gives you wiiings”

  Has Tournament sponsorship (Red Bull Air Race, Crashed Ice), Sports team ownership, and celebrity endorsements

  70% market share

  More then 1 billion cans a year are sold in over 100 countries.

The Product   Red Bull was designed for times of

increase in mental and physical extortion   increases performance

- increases concentration and reaction speed - improves vigilance - improves the emotional status - stimulates metabolism

  “Vitalizes body & mind”

  Red Bull contains taruine, glucuronolactone, caffine, B vitamins, sucrose, phenylalanine, glucose. No high fructose corn syrup.

  Slender, “sexy” bottle

  Original Packaging: 8.3 oz can

  Now offered in various sizes & sugar free

Nutrition Facts: Serving Size: 8.3 fl. oz Servings per Container: 1 Amount per serving: Calories: 110 Total Fat: 0g Sodium: 200mg Protein: 0g Total Carbohydrates: 28g Sugars: 27g

Current Advertising   Huge in international marketing

  Sponsors extreme sports (cliff diving, wakeboarding, surfing, motocross, racing, etc…)

  Hosts numerous events   Red Bull Flugtag “flight day”   Red Bull Paperwings   Red Bull Aire Race World Championship   Red Bull Music Academy

  Teamed up with nightlife

  Sponsors soccer teams in: Salzburg, Austria, Leipzig, Germany, New York, USA, Brazil

  Mobile Displays (college campus tours)

  Free samples

  Reggie Bush first NFL athlete to endorse in 2009.

Competition “Often copied, never equaled”

  Red Bull is the leader in energy drink markets

  70% of market share

  1,000 smaller players have entered the market since Red Bull’s success

  Top 7 Energy Drink Competitiors: Vault, Full Throtle, Tab, Rockstar, Am, Sobe, Monster

  Former Red Bull employees launched a competitor, Roaring Lion, in 2001

  its marketing and distribution designed for nightclub market.

  Red Bull sued a number of bars for substituting knock-offs when customers ordered mixed drinks specifying Red Bull.

Red Bull 42.6 Red Bull 35.2 Monster 14.4 Monster 27.3 Rockstar 11.4 Rockstar 11.1 Full Throttle 6.9 Full Throttle 6.6 Sobe No Fear 5.4 Amp 5.1 Amp 3.6 No Fear 2.7 Sobe Adrenaline Rush 2.9 NOS 2.1 Tab Energy 2.3 Adrenaline 2.1 Monster XXL 0.9 Sobe 0.6 Private Label 0.9 BOOKOO 0.6 Rip It 0.8 Arizona 0.5 Sobe Lean 0.7 Lost 0.5 BooKoo 0.5 Rip It 0.5 Sobe Superman 0.4 Vitamin Energy 0.5 Von Dutch 0.4 Jeff Gordon 24 0.5

2006 % Dollar Sales 2007 % Dollar Sales

Red Bull 40 Monster 23 Rockstar 12.3 AMP 8 Full Throttle 4 Doubleshot 2 NOS 1.5 No Fear 1.4 Private Label 1 SOBE Adrenaline 0.7 Vitamin Energy 0.5 SOBE Lean 0.5 Venom 0.44 Jolt 0.4 Go Girl 0.4

2008 % Dollar Sales

• Red Bull is always a leader • Even combining Monster & Rockstar doesn’t equal Red Bull

success

Target Demographic  Males

  Ages: 18-34

  Attended college

  HHI: <$40,000

  Never married

  Race: other

  Region: Midwest

Psychographics   Avid cable watchers

  Gamers

  Take interest in extreme and recreational sports (such as skateboarding)

  Interest in music (mainly hip hop, rock, & metal)

  Students

  Enjoy eating out

  Like to be physically active

Geography

  Red Bull is an international company

  Operates website

  Focus: Midwestern region of United States

Media Objectives   Increase in Red Bull sales

  Maintain the image, be seen as key ingredient to top performance

  Reach other possible target markets

•  Gain new generation of consumers/ consumer recognition

Marketing Objectives • To increase brand awareness through television, print, and internet

advertising.

• Maintain users and reach an increase in market share by 10% with new consumers

• Keep customer loyalty, and continue to be a leader for the competition

Seasonality  Winter, caffeinated sales boost

 Summer, when consumers are more active

 Red Bull can be used to stimulate energy, common for people going out late at night/

early morning consumers

 Generally consumed year round, no major peak month

Media Plan/Strategies   Advertise year round/ ½ yearly within three leading magazines quoted by MRI

reports.   GQ, Rolling Stone, Car & Driver

  Advertise late fringe during winter/holidays when many people are staying in to watch tv/having holiday parties. Primetime advertising will take place in the summer when the target demographic has more free time to enjoy going out.   Networks such as: ESPN, MTV, VH1, HBO, Local Cable, Comedy Central

  Internet Advertising will play a big role because internet is a huge part of a Red Bull consumers life   Sites such as: Facebook, Yahoo!, ESPN

  Geared to the young, active world. Advertising in these several places can also reach consumers in different demographics

  **Red Bull is a huge buzz brand, some of the best advertising comes from word- of mouth

  The focus will be geared twords print advertising, to reach our target demographic as well as new consumers.

Media Mix

  Television   ESPN   HBO   VH1   MTV   COMEDY CENTRAL

  Magazine

  GQ   Rolling Stone   Car & Driver

  Internet   Yahoo!   Facebook   ESPN

Television  Late Fringe: $20,000 x 9 points= $180,000 per week  Advertise:  Nov-Feb total: 14 weeks = $ 2,520,000

 Primetime: $25,300 x 11 points = $278,300 per week  Advertise:  June-Aug: 12 weeks in summer = $3,339,600

TELEVISION TOTAL: $5,859,600

Magazine   GQ “Gentlemen’s Quarterly”

 Rate full page 4 color (1x rate) $129,306

 12 issues= $1,551,672

  Rolling Stone

 Rate full page 4 color (1x rate) $174,065

 6 issues= $1,044,390

  Car & Driver

 Rate full page 4 color (1x rate) $187,269  6 issues= $1,123,614

MAGAZINE TOTAL: $3,719,676

Online  Facebook

 Yahoo!

 ESPN

 $10 CPM x 1,000,000 impressions  Cost for 1,000,000 Imp: $10,000/month

 3 websites total cost per month= $30,000

 Advertise 1 year on all 3 sites = $360,000

  TOTAL budget for Magazine, Website & Television Adversiting = $9,939,276

59%

4%

37%

Television

Internet

Magazine

Budget

Sources   www.redbull.com

  http://www.fundinguniverse.com/company-histories/Red-Bull-GmbH-Company-History.html

  http://www.bized.co.uk/compfact/redbull/redbull7.htm

  Bevnet

  http://www.energyfiend.com/2007/04/the-15-top-energy-drink-brands