Marketing & Distribution – Red BullGives you wiings to fly

Executive Summary

• 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.

• The brand came into existence in 1984.

• The brand came to India in 2003. Although the brand has been keeping a low

profile compared to the Cola majors , Red Bull has created a category of energy

drinks in the Indian market.

• According to Economic Times ( 30.05.08) the energy drink market in India is

estimated to be around 100 crores.

• The market now has two main players Red Bull and Power Horse.

• RB has an assessed market share of 29% of the global market of energy Drinks.

• In the U.S., Red Bull enjoys a 47% share of the energy drink market, and now has

a 50% share of the German energy drink market.

A thorough analysis of energy drink producer Red Bull concludes that the company was set

up to market just one product, Red Bull. Eventually it started marketing a variety of slightly

modified energy drinks. Now Red Bull is energizing people around the globe, touching

down in over a hundred countries worldwide.

The Red Bull consumers can be divided into three segments: athletes, clubbers and

workers. Each of these using the Red Bull energy drinks to meet their personal needs.

Whether these are obtaining physical edges, mental edges or just consumption for pleasure.

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The ambition of Red Bull is maintaining the top-brand status in the energy drink market

and clearly distinguishing themselves from their competition, who is marketing almost the

same product against extremely low prices.

Red Bull uses every means of marketing to reach their target groups. Their marketing is

mainly based on the “3 pillars of Red Bull; Sampling, Advertising, Sponsoring”. This

means that next to normal advertisements, they drive around in Red Bull –modified cars

handing out cans of red bull and sponsor big extreme sports events and competitions. In

this way Red Bull is not just promoting their energy drink but is also selling a lifestyle,

seemingly people are willing to be a part of this Red Bull extreme sports lifestyle.

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INTRODUCTION

Fundamental Definition : a usually carbonated beverage that typically contains

caffeine and other ingredients (as taurine and ginseng) intended to increase the

drinker's energy

First Known Use of ENERGY DRINK

1904

Contractual Definition An energy drink is a type of beverage containing stimulant drugs,

chiefly caffeine, which is marketed as providing mental or physical stimulation. There is

a myriad of brands and varieties of energy drinks. They generally contain large amounts

of caffeine and other stimulants. Many also contain sugar or other sweeteners, herbal

extracts and amino acids and may or may not be carbonated. They are a subset of the

larger group of energy products, which includes bars and gels.

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History

Energy drinks were an active subset of the early soft drink industry, which was originally

dominated by pharmacists and less scrupulous patent medicine salesmen. Coca-Cola, for

instance, was originally marketed as an energy booster; its name was derived from its two

active ingredients, both known stimulants: Coca leaves and kola nuts (a source of

caffeine). Fresh coca leaves were replaced by "spent" ones in 1904 because of concerns

over the use of cocaine in food products.

In the UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for

"aiding the recovery;" in the early 1980s, it was promoted as an energy drink for

"replenishing lost energy."

One of the first energy drinks introduced in America was Dr. Enuf. Its origins date back

to 1949, when a Chicago businessman named William Mark Swartz was urged by

coworkers to formulate a soft drink fortified with vitamins as an alternative to sugar

sodas full of empty calories. He developed an "energy booster" drink containing B

vitamins, caffeine and cane sugar. After placing a notice in a trade magazine seeking a

bottler, he formed a partnership with Charles Gordon of Tri-Cities Beverage to produce

and distribute the soda.[1] Dr. Enuf is still being manufactured in Johnson City, TN and

sold sparsely throughout the nation.

In Japan, the energy drink dates at least as far back as the early 1960s, with the release of

the Lipovitan. However, most such products in Japan bear little resemblance to soft

drinks, and are sold instead in small brown glass medicine bottles or cans styled to

resemble such containers. These "eiyō dorinku" (literally, "nutritional drinks") are

marketed primarily to salaryman. Bacchus-F, a South Korean drink closely modeled after

Lipovitan, also appeared in the early 1960s, and targets a similar demographic.

In 1985, Jolt Cola was not introduced in the United States. Its marketing strategy centered

on the drink's caffeine content, billing it as a means to promote wakefulness. The initial

slogan was, "All the sugar and twice the caffeine."

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Energy drinks are sometimes sold in resealable bottles.

In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US

beverage company (one that had interests outside energy drinks), but Pepsi discontinued

the product in 1999. Pepsi would later return to the energy drink market with the AMP

brand.

In Europe, energy drinks were pioneered by the Lisa and a product named Power Horse,

before the business savvy of Dietrich Mateschitz, an Austrian entrepreneur, ensured his

Red Bull product became far better known, and a worldwide best seller. Mateschitz

developed Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan.

Red Bull is the dominant brand in the US after its introduction in 1997, with a market

share of approximately 47%.

In New Zealand and Australia, the current leading energy drinks product in those markets

V was introduced by Frucor Beverages It is now serves over 60% of market in New

Zealand and Australia].

By 2001, the US energy drink market had grown to nearly 8 million per year in retail

sales. Over the next 5 years, it grew an average of over 50% per year, totaling over $3

billion in 2005.[Diet energy drinks are growing at nearly twice that rate within the

category, as are 16-ounce (470 ml) sized energy drinks. The energy drink market became

a $5.4 billion dollar market in 2007, and both Goldman Sachs and Mintel predicted that it

would hit $10 billion by 2010. Major companies such as Pepsi, Coca-Cola, Molson, and

Labatt have tried to match smaller companies' innovative and different approach, with

marginal success.

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Energy drinks are typically attractive to young people. Approximately 66% percent of its

drinkers are between the ages of 13 and 35 years old, with males being approximately

65% of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical

Society's Institute for Good Medicine found that: 20% of respondents ages 21–30 had

used energy drinks in high school or college to stay awake longer to study or write a

paper; 70% of respondents knew someone who had used an energy drink to stay awake

longer to study or work.[6] Energy drinks are also popular as drink mixers.

UK supermarkets have launched their own brands of energy drinks at lower prices than

the major soft drink manufacturers. These are mostly produced by Canadian beverage

maker Cott. Tesco supermarkets sell 'Kx"'(used to be known as 'Kick') in 250 mL cans

and 1 L bottles, Sainsbury's sell 'Blue Bolt' in similar packaging, Asda sell 'Blue Charge'

in similar packaging and Morrison's sell 'Source' in 250 mL cans. Cott sells a variety of

other branded energy drinks to independent retailers in various containers.

Since 2002, there has been a growing trend for packaging energy drink in bigger can.

Since in many countries, including the US and Canada, there is a limitation on the

maximum caffeine per serving in energy drinks, this allows manufacturers to include a

greater amount of caffeine by including multiple servings per container. Popular brands

such as Red Bull, Hype Energy Drinks and Monster have increased the amount of ounces

per can. (For example, when Red Bull first came on the U.S. market, it was primarily in

250 mL (8.4 oz.) cans; it now sells cans as big as 600 mL (20 oz.), and Monster now sells

a can as big as 32 oz. (946 mL).) Most energy drinks in the United States, with a few

exceptions, primarily sell their drinks in 16 oz. (473 mL) cans, a trend provoked in part

by companies such as Rockstar Energy promoting the 16-ounce cans over Red Bull's

smaller ones in the mid-2000s. Conversely, the emergence of energy shots has gone the

opposite way with much smaller packaging.

In 2007, energy drink powders and effervescent tablets were introduced, in the form of a

tablet or powder that can be added to water to create an energy drink. These can offer a

more portable option to cans and shots.

As of 2009, the industry has moved towards the use of natural stimulants and reduced

sugar.

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On August 14, 2012, the word "energy drink" was listed for the first time in the

mainstream Merriam-Webster's Collegiate Dictionary.

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Ingredients

Energy drinks generally contain methylxanthines (including caffeine), B vitamins, and

herbs. Other commonly used ingredients are carbonated water, guarana, yerba mate, açaí,

and taurine, plus various forms of ginseng, maltodextrin, inositol, carnitine, creatine,

glucuronolactone, and ginkgo biloba. Some contain high levels of sugar, and many

brands offer artificially sweetened 'diet' versions. A common ingredient in most energy

drinks is caffeine (often in the form of guarana or yerba mate). Caffeine is the stimulant

that is found in coffee and tea. There is little or no evidence that any of the ingredients

found in energy drinks other than caffeine or sugar have a significant physiological

effect.

Energy drinks contain about three times the amount of caffeine as cola. Twelve ounces of

Coca-Cola Classic contains 35 mg of caffeine, whereas a Monster Energy Drink contains

120 mg of caffeine.

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Effects

Energy drinks have the effects caffeine and sugar provide, but there is little or no

evidence that the wide variety of other ingredients have any effect. However, a variety of

physiological and psychological effects have been attributed to energy drinks and their

ingredients. Two studies reported significant improvements in mental and cognitive

performances as well as increased subjective alertness. Excess consumption of energy

drinks may induce mild to moderate euphoria primarily caused by stimulant properties of

caffeine and may also induce agitation, anxiety, irritability and insomnia. During repeated

cycling tests in young healthy adults an energy drink significantly increased upper body

muscle endurance. It has been suggested that reversal of caffeine withdrawal is a major

component of the effects of caffeine on mood and performance.

Restorative properties were shown by a combination of caffeine and the sugar glucose in

an energy drink, and some degree of synergy between the cognition-modulating effects of

glucose and caffeine was also suggested. In one experiment, a glucose-based energy

drink (containing caffeine, taurine and glucuronolactone) was given to eleven tired

participants being tested in a driving simulator. Lane drifting and reaction times were

measured for two hours post-treatment and showed significant improvement.

Two articles concluded that the improved information processing and other effects could

not be explained in terms of the restoration of plasma caffeine levels to normal following

caffeine withdrawal.

Consumption of a single energy drink will not lead to excessive caffeine intake, but

consumption of two or more drinks in a single day can. Other stimulants such as ginseng

are often added to energy drinks and may enhance the effects of caffeine, and ingredients

such as guarana themselves contain caffeine. Adverse effects associated with caffeine

consumption in amounts greater than 400 mg include nervousness, irritability,

sleeplessness, increased urination, abnormal heart rhythms (arrhythmia), and dyspepsia.

Consumption also has been known to cause pupil dilation when taken with certain

antidepressants or SSRIs. Most mainstream energy drinks do not provide electrolytes,

and have a higher likelihood of an energy "crash-and-burn" effect. Caffeine in energy

drinks can cause the excretion of water from the body to dilute high concentrations of

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sugar entering the blood stream, leading to dehydration. If the body is dehydrated by 1%,

performance is decreased by up to 10%.

In the US, energy drinks have been linked with reports of nausea, abnormal heart rhythms

and emergency room visits. The drinks may cause seizures due to the "crash" following

the energy high that occurs after consumption. Caffeine dosage is not required to be on

the product label for food in the United States, unlike drugs, but some advocates are

urging the FDA to change this practice.

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Effects of caffeine

In November 2010, the University of Texas Medical School at Houston reported that

energy drinks contain more caffeine than a strong cup of coffee, and that the caffeine

combined with other ingredients (sometimes not reported correctly on labels) such as

guarana, taurine, other herbs, vitamins and minerals may interact. Energy drinks

consumed with alcohol may affect heart rates, blood pressure and even mental states. The

caffeine content of energy drinks range from 80–300 mg per 16-oz serving whereas a 16-

oz cup of coffee can contain 70–200 mg.

Health experts say caffeine prevents sleepiness and delays the feeling of drunkenness

normally experienced when drinking alcohol, causing some people to continue drinking

after they normally would have stopped. Caffeine is a very mild diuretic in comparison

with alcohol, but some experts believe that mixing energy drinks with alcohol can cause

greater dehydration than alcohol alone.

Health concerns and sales restrictions

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A health warning on a can of Power Horse energy drink: "Consumption of more than two

cans in a day may be harmful to your health. Not to be used for pregnant women, breast

feeders, children under the age of 16, people with heart disease, high blood pressure,

diabetes, allergy to caffeine, and athletes during exercise."

The energy drink Red Bull did not get market approval in France after the death of an 18-

year-old Irish athlete, Ross Cooney, who died within hours after playing a basketball

game and consuming four cans of the product. This market approval was challenged in

the European Court of Justice in 2004, and consequently lifted. Norway did not allow

Red Bull for a while, although this has recently been revoked. The United Kingdom

investigated the drink, but only issued a warning against its consumption by children and

pregnant women.

In November 2012, President Ramzan Kadyrov of Chechnya (Russian Federation)

ordered his government to develop a bill banning the sale of energy drinks, arguing that

as a form of "intoxicating drug", such drinks were "unacceptable in a Muslim society".

Kadyrov cited reports of one death and 530 hospital admissions in 2012 due to

"poisoning" from the consumption of such drinks. A similar view was expressed by

Gennady Onishchenko, Chief Sanitary Inspector of Russia.

In 2009, a school in Hove, England requested that local shops refrain from selling energy

drinks to students. Headteacher Malvina Sanders added that "This was a preventative

measure, as all research shows that consuming high-energy drinks can have a detrimental

impact on the ability of young people to concentrate in class." The school negotiated for

their local branch of the Tesco supermarket to display posters asking students not to

purchase the products. Similar measures were taken by a school in Oxted, England,

which banned students from consuming drinks and sent letters to parents.

Some countries have certain restrictions on the sale and/or manufacture of energy drinks

for example; in Australia and New Zealand, energy drinks are regulated under the

Australia New Zealand Food Standards Code; limiting the caffeine content of 'formulated

caffeinated beverages' (energy drinks) at 320 mg/L (9.46 mg/oz) and soft-drinks at 145

mg/L (4.29 mg/oz). Mandatory caffeine labeling is issued for all food products containing

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guarana. On June 7, 2012, the parliament of Latvia approved changes in the legislation of

sale of consumable goods, to prohibit sale of energy drinks to persons under the age of

18.

Branding : Red Bull

25 YEARS AND COUNTING

Dive into some interesting information about the company and the journey Red Bull had

throughout the last 25 years.

History

Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in

the mid 1980's. He created the formula of Red Bull Energy Drink and developed the

unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was

sold for the very first time in its home market Austria. This was not only the launch of a

completely new product, in fact it was the birth of a totally new product category. Today

Red Bull is available in more than 165 countries and more than 35 billion cans of Red

Bull have been consumed so far.

8,966Employees

As of the end of 2012, Red Bull employed 8,966 people in 165 countries - Compared to

the end of 2011 when we had 8,294 employees in 164 countries.

In 165Countries around the world

In terms of further expansion, Red Bull is targeting the core markets of Western Europe

and the USA and the growth markets of Brazil, Japan, India and South Korea, while also

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focusing on the worldwide roll-out of the Red Bull Editions. Growth and investment will

– as is customary at Red Bull – continue to be financed from the operating cash flow.

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Red Bull

Red Bull Energy Drink is a functional beverage providing various benefits, especially in

times of increased performance:

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Swot analysis

Strengths:

• According to Economic Times ( 30.05.08) the energy drink market in India is

estimated to be around 100 crores.

• The market now has two main players Red Bull and Power Horse.

• RB has an assessed market share of 29% of the global market of energy Drinks.

• In the U.S., Red Bull enjoys a 47% share of the energy drink market, and now has

a 50% share of the German energy drink market.

Weaknesses:

• Above-average prices.

• Lack of innovation- there are a lot of competitors in the market and they have

their own USP which leaves Red Bull behind.

• Reliant on small product base- The company only markets one branded product,

Red Bull Energy Drink (along with a sugar free variety).

• Inexperience: is only 6 years old in India.

• Lack of patent on RB ‘s recipe means anyone can copy it.

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Opportunities:

• Extension of product line- this will help to retain market share.

• Hardcore Advertising and Promotions.

• Consumer recognition through sponsorship of sports events.

• New ventures like partnership with Facebook.

Threats:

• Health concerns- tougher rules from government on high caffeine content.

• Consumer awareness of health and well being- people may start to drink other

alternatives as it is associated with healthier life style.

• Drinks might not be accepted in the new markets.

• Organic energy drinks might steal RB’s market share.

Promotion Analysis

• Competitive Analysis

• Opportunity Analysis

• Target Market Analysis

• Customer Analysis

• Market Segmentation Strategy

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Competitive Analysis

Target Market Analysis

• Core target market segments for RB consists of the core age group of 15 to 60.

• Energy drinks with high sugar levels are more popular among children and

women, while energy drinks with strong taste and flavor are more preferred by

male consumers.

• Recent studies also indicated that 65% of the energy drinks market consists of

male consumers.

•

Customer Analysis

• Young people are especially open to determined exhaustion and insufficient

energy.

• More specifically male teenagers & people in their 20s, are also most likely to

believe in the authenticity of the energy drinks’.

• As a result, the majority of energy drinks are developed for and advertised to this

younger generation.

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• Appeal to very specialized groups, such as gamers, extreme sports enthusiasts,

and the hip-hop crowd.

Market Segmentation Strategy

• RedBull avoided usual methods of marketing, relying more on what is called

'buzz marketing' or word-of-mouth.

• Red Bull advertised directly to Generation Y, the so-called 'millennial': people

born after 1981.

• ‘Student brand managers' who would be used to promote Red Bull on

university campuses. These students would be encouraged to throw parties at

which cases of Red Bull would be distributed.

Marketing – Red BullDietrich Mateschitz founded Red Bull in 1984 after discovering the widespread popularity of tonic drinks in the Far East. He developed the Red Bull Energy Drink, launching the product on the Austrian market in 1987. Since then, Red Bull has launched a range of products, including Red Bull Cola in 2008 and Red Bull Energy Shots in 2009. Today Red Bull has annual sales of around 4 billion cans in 160 countries. Red Bull has adistinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. This approach allows Red Bull to engage with consumers using new and exciting channels of communication. In recent years social media has become a vital marketing tool for many organisations. Its increasing popularity, predominantly with young audiences, has had a huge impact on modern marketing techniques. Digital and social media campaigns are integral to Red Bull’s marketing strategy.The role of the marketing functionTo meet the needs of its customers, every organisation seeks a distinctive marketing mix.This is often referred to as the 4Ps. It involves focusing on:· product – the specific features and benefits of the product· place – where and how the product is sold· price – setting the right price in each market· promotion – using the most suitable form of promotion to reach customers.For example, the marketing mix for Red Bull Energy Drink is based around:· a distinctive product - the taste of the product is unlike any other, it also has afunctional effect in comparison to other soft drinks· it is easy to obtain as it is sold in a variety of places – including retail outlets and foodand drink establishments· Red Bull uses a premium pricing strategy. The product is priced above that ofcompetitors’ products. Consumers will pay a premium for Red Bull due to the quality ofthe product and the product’s benefits. This is reflected in the fact that it is the world’s

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best-selling energy drink.However, perhaps the most interesting element of Red Bull’s marketing mix is its approach to promotion. Red Bull embraces innovation within its promotional activities and as such is able to create a lasting impression on consumers. The concept behind its promotional activity is to give people ‘Wiiings’. This translates as pushing the boundaries of what is possible and nurturing people's talent so they can achieve their goals and dreams. The aim of the promotion element of the marketing mix is to grow the business and increase market share. Businesses develop a promotional strategy in order to encourage customers to purchase their products. Many base their approach on AIDA principles. AIDA is an acronym that is shorthand for the stages in a sales process.

Reasons for popularity of Red Bull

Helps to improve CONCENTRATION

Next to B-complex vitamins, taurine and sucrose & glucose, Red Bull Energy Drink

contains caffeine (80mg per 250ml can). It was scientifically proven that caffeine helps to

improve concentration. This has also been concluded by the European Food Safety

Authority in their scientific opinion: See EFSA Journal (2011): No. 2054

Helps to increase ALERTNESS

Red Bull Energy Drink contains caffeine, taurine, B-complex vitamins, sucrose &

glucose. Scientific evidence proves that caffeine (80mg per 250ml can) helps to increase

alertness. This was also confirmed by the European Food Safety Authority in their

scientific opinion: See EFSA Journal (2011): No. 2054

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Contributes to normal MENTAL PERFORMANCE

Next to caffeine, taurine, sucrose & glucose, Red Bull Energy Drink contains B-complex

vitamins (vitamin B3 (Niacin), vitamin B5 (Pantothenic acid), vitamin B6, vitamin B12).

It was scientifically proven that vitamin B5 (Pantothenic acid) contributes to normal

mental performance. This has also been concluded by the European Food Safety

Authority in their scientific opinion: See EFSA Journal (2009): No. 1218.

Contributes to the REDUCTION OF TIREDNESS AND FATIGUE

It was scientifically substantiated that the B-Complex vitamins (Vitamin B3

(Niacin), Vitamin B5 (Pantothenic acid), Vitamin B6, Vitamin B12), contained in Red

Bull Energy Drink, contribute to the reduction of tiredness and fatigue. This was also

confirmed by the European Food Safety Authority in their scientific opinion

Red Bull is a great drink to give you that 'bit' of energy or edge which can be really handy

just before training or competition. Red Bull gives you wings."

Red Bull1. The Product/ Competitors/Industry1.

1 ProductRed Bull is a sweet, caffeinated drink aimed to give consumers the high energy

kick.Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only

two‘flavours’ (original or sugar-free). It contains caffeine, taurine, glucuronolactone, and

Bvitamins. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull

has become the worlds leading energy drink, a staple in many young, and active people’s

lives.1 .

2 C o m p e t i t o r s Big global companies such as Coca Cola and Pepsi

have introduced their own energy drink versions to their product base. Mother (by Coca

Cola), Amp (Pepsi), V, Battery, 180, RedEyeand Bennu being just some in the ever-

growing energy drink market.Competition also presents itself in original sports drinks,

such as Gatorade (Pepsi) andPowerade(Coca Cola). Furthermore, premixed alcoholic

drinks like the Smirnoff range form part of the competition.1 .

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3 I n d u s t r y Red Bull has becoming hugely successful and operates

within the global soft drink marketplace. Within the soft drink industry its niche is

the ‘energy drink’ market, of whichMateschitz was largely responsible for creating. Red

Bull currently is the leading energy drink across the entire globe. It holds 70% of the

market worldwide (Gschwandtner, 2004). Oncethe drink was passed by health ministries,

Red Bull entered the Austrian market, soonthereafter then moved into Germany, United

Kingdom and the USA by 1997.

N e e d s ,   W a n t s   a n d D e m a n d s   s a t i s f i e d b y Red Bull

2.1NeedsThere are three basic human needs that Red Bull satisfies, physical, social and

individualneeds. ‘Human needs are states of felt deprivation… marketers do not invent

these needs; theyare a basic part of human makeup…People in industrial societies might

try to find or developobjects that will satisfy their needs.’

Firstly, a physical need is when tired drivers are feeling the need to fall asleep due to

fatigue;and this can compromise their safety. A driver needs to stay awake and alert when

driving toavert danger and this need is satisfied by Red Bull. In fact it has become a ‘hot

item amongsttired drivers stopping at gas stations.’ (Gscwandtner 2004).A social need for

example is where ‘humans have a social need for belonging’ (Kotler. 2004)and this need

is satisfied by belonging to a group. A group could be people with the sameinterests eg

extreme sports. Red Bull associates itself with energy, danger and youth culture,and

markets its product through its sponsorship of youth culture and extreme sports

events.Consumers who drink Red Bull are ‘automatically’ introduced to the Red Bull

culture, andtheir social need is then satisfied.The final need is individual. An individual

may have a need for concentration or self-expression and this could be inhibited by

fatigue or weariness. Red Bull realised that it couldsatisfy this need by ‘energising and

stimulating the mind’ (Red Bull 2008). For example, if they are fatigued, a university

student may experience an inability to retain knowledge andtherefore show an inability to

express themselves.

2 . 2 W a n t s A want can be defined as ‘the form taken by human

needs as they are shaped by culture andindividual personality’ (Kotler et al.

2006)Extreme athletes want to accelerate their performance and to revive themselves

quickly after each event and this want is satisfied by Red Bull. Red Bull promotes its

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consumption ‘toincrease physical endurance, improve concentration and reaction speed,

improve vigilanceand stimulate metabolism.’ (Red Bull, 2008).

2 . 3 D e m a n d s ‘Demands are human wants backed up by buying

power and given their resources, peopledemand products with benefits that add up to the

most satisfaction.’ (Kotler et al. 2006).Another way of putting it is that ‘demand for a

product…is both a willingness and an abilityto pay for the product that will satisfy a

particular want’. (McColl et al. 1998)Red Bull is arguably one of the most expensive soft

drinks on the market, a can of Cokegenerally costs around $2.50 for 375ml whereas a

smaller 250ml can of Red Bull is sold at$3.75. Consumers are willing to pay the higher

price for Red Bull because it satisfies their

needs and wants, it also delivers on its promise to ‘Vitalize Body and Mind. So regardless

of size of the can or price, consumers are willing to pay for Red Bull’s

product.3 . T h e   M a r k e t i n g   M a n a g e m e n t   P h i l o s o p h y In our

opinion, Red Bull fits into three of the marketing management philosophies.When it first

entered the market it could be viewed in the selling concept phase. Founder Dietrich

Mateschitz even stated. “If we don’t create the market, it doesn’t exist.”(Gschwandtner

2004). Mateschitz used buzz marketing to promote the product by givingconsumers free

samples.Once Red Bull established itself it then moved into the product concept

philosophy. Itseems that many consumers buy the Red Bull product wholly based on

what benefits it cangive them, i.e. increased wellbeing and energy. Red Bull cans are

branded with the tagline‘Vitalises body and mind’ and it is well known by consumers that

drinking Red Bull canalleviate tiredness.The final philosophy the product fits into is the

marketing concept. ‘This is where anorganisation delivers target market satisfactions

more effectively and efficiently thancompetitors.’ (Kotler et al. 2006). This can be done

by researching its target audience and thecompany has shown this by the fact that ‘Red

Bull has a 70 to 90 percent market share in over 100 countries worldwide’.

(Gschwandtner 2004). This clearly indicates that Red Bull’scurrent marketing strategy is

working well and they are ahead of their competitors in themarket

place.4. The Marketing Challenges.

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4 . 1 C o m p e t i t i o n This is

probably one of the biggest threats to Red Bull to date. Major competitors suchas Coca

Cola and Pepsi are continually seeking to regain market share off Red Bull. CocaCola

and Pepsi have launched their own energy drink versions to compete directly with

RedBull’s product, yet with no real impact on the market, examples of this are Think ‘V’

EnergyDrink and Coke’s version ‘Mother’.

4 . 2 N e g a t i v e   P u b l i c i t y Various media worldwide have reported

that Red Bull is harmful for one’s health. TheFrench Health Authority has gone one step

further by not approving the Red Bull product for sale in France believing it is not in

compliance with the country’s health and food regulations.Other media reports have been

targeted towards parents stating the caffeine levels in Red Bullcan be dangerous if

consumed by children/teenagers, which coincidentally is exactly who is inthe product

target market.Red Bull has gone to the extremes of seeking scientific proof that its

product is safefor consumption and released numerous statements to curb the negative

media attention andreiterate that their product

is safe for consumption by all (Red Bull, 2008).

4 . 3 I n a b i l i t y   t o   m o v e   f o r w a r d   w i t h   t h e   p r o d u c t Red Bull is well

known for its innovative advertising however the product could be indanger of becoming

stale. By shunning conventional advertising methods and opting for online advertising

and Generation Y cartoon adverts, the aim of attracting 15 – 30 year olds isworking, but

for how long? Combine this with their large investment in extreme sport eventsie Red

Bull Air Race and athlete sponsorship, it has to be asked what do they do next? Has

italready been done?

4 . 4 A b i l i t y   t o g a i n   n e w   c u s t o m e r s a n d r e t a i n c u r r e n t   c u s t o m e r

l o y a l t y With Red Bull’s target market currently aimed at the Generation Y’s (15 – 30

year olds) there is the question of whether this generation will continue to drink Red Bull

as theygrow older. And will the next upcoming generation accept this product as their

own.

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4 . 5 H e a l t h   a n d S o c i a l I m p l i c a t i o n s Due to growing pressure

on organisations in society, Red Bull now promotes their  product with current societal

and health issues in mind. Childhood obesity and type 2-onsetdiabetes has become a

major issue across western developed nations. By introducing ‘sugar free’ Red Bull this

has opened up a new opportunity to the ‘health conscious’ and diabetics.Managing this

issue will be a constant process and Red Bull must be seen to be adjusting their  product

to suit society.

4 . 6 O n l y   h a v i n g   o n e   p r o d u c t One particular issue Red Bull has to

consider is their limited product range. Unliketheir major competitors such as Coca Cola

and Pepsi, who have various different products indifferent beverage classes (water, soft

drinks, electrolytes) Red Bull does not. Only havingone product can be a positive

however, for example Red Bull can concentrate 100% effort ontheir product while not

being distracted by other influences, however the downside is thatshould the market share

of that product decrease in the future, Red Bull has no back up product to cover the loss.

 

5 . B e i n g   c u s t o m e r o r i e n t a t e d / m a r k e t d r i v e n

5 . 1 T h e   C o n s u m e r   Customers are more sophisticated and

educated in the market place today; they cannow research products before making a

purchase. For example there are specialist magazinesto ‘assist in the decision on (the)

brand…but more likely (consumers) turn to the internet for information on what might be

described as a complex product’ (Kotler et al. 1998). Another reason could be that

competitors are more innovative than ever with advertising andmarketing campaigns.

Kevin Rudd for example achieved this when he used the ‘MySpace’website as a medium

to mount his prime ministerial marketing campaign.

5 . 2 P o i n t   o f   D i f f e r e n c e Further to this notion marketing

organizations need to create a point of difference(POD) in the market place. In such a

saturated market consumers look for a POD, whenopening a coffee shop a

businessperson would find themselves up against competition. Sohow do they

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differentiate themselves from another café? How can they become ‘top of mind’to their

target market?Gloria Jeans Coffee is a good example, when they entered the market they

providednot only a service but also an experience. They designed their coffee shops like

lounge rooms,with big couches to create a homely feel. They also offered wireless

internet (WiFi) servicesto attract the businessmen and women who wanted to work online

while having a coffee.

5 . 3 C o m p e t i t i o n

Competition is becoming more intense in any industry. For example supermarketgiants

like Coles and Woolworth’s are flooding their stores with self-branded products, whichis

often pushing independent brands off the supermarket shelf and driving small

businessesout of the market. These giants have bulk buying power which means they

have the ability to pass savings to their customers. Self-branded products are

marginalising the smaller independent brands.

6 . C o n c l u s i o n

Red Bull is a highly successful company responsible for 70% of sales in the energy

drink market to date. Their product is well known by consumers to ‘vitalize body and

mind’ and isgenerally purchased by most for this purpose.

Red Bull have strong competitors who are constantly trying to gain market share off Red

Bull,however, it is evident that Red Bull’s current marketing philosophies are working in

keepingthem a market leader. Red Bull is aware of their marketing challenges and they

are constantlyadjusting and developing their marketing approach to overcome or even

avoid futureconcerns

VARIOUS LAWS APPLICABLE

As of 2013 in the United States some energy drinks, including Monster Energy and

Rockstar Energy, were reported to be rebranding their products as beverages rather than

as dietary supplements. As beverages they would be relieved of F.D.A. reporting

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requirements with respect to deaths and injuries and can be purchased with food stamps,

but must list ingredients on the can.

FOOD IMPORTS AND

EXPORTS 329

14 Compliance with food import and

export regulations

Key points

• Fees for importing food into Australia are higher than those faced by New Zealand

importers. Despite charging for import clearance for food safety on an hourly basis,

the time taken for the process is not monitored or recorded in either country.

• A lack of consistency in the interpretation of food safety regulations across

Australian jurisdictions increases the costs to businesses in ascertaining import

requirements and managing imported product recalls.

• Application of food safety requirements throughout the production chain for domestic

businesses, but not for imported businesses, may unduly raise the opportunity costs of

domestic businesses (unless similar requirements are made in the importer’s home

country) and has contributed to some products that are not approved for production

nevertheless being imported.

• Charges faced by Australian exporters of food, with the exception of meat exporters, are

generally higher than those for similar activities in New Zealand, even with the benefit of

a 40 per cent Australian government rebate. The costs to business of AQIS services are

higher than some comparable domestic services provided by other agencies.

• Duplication in export and domestic regulation puts an undue compliance burden on

some Australian primary product exporters, while the integrated regulatory structure in

New Zealand means this is less of an issue there. Both countries some times impose

stricter requirements than necessary on exports going to countries with less demanding

requirements than their own.

• The extent to which multiple and overlapping audits impose additional costs on

businesses varies more between industries than jurisdictions.

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– All Australian jurisdictions have memoranda of understanding between regulators to

facilitate the recognition of audits and reduce business compliance costs.

– In both Australia and New Zealand, meat exporters incur greater costs and more

regulatory intervention than other businesses. In Australia, about $80 million per year, or

80 per cent of export certification costs, relate to red meat.

• Businesses in both Australia and New Zealand noted areas in which a lack of skills or

knowledge in regulator staff result in additional regulation compliance costs.

• Compared with New Zealand, Australia’s regulatory system for exports relies lesson

electronic processing to reduce business compliance costs and is less able to embrace

improvements in the domestic food safety system associated with shifts toward outcome

based standards.

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Employees of Red Bull

Board of Directors

Ahmad Bin Byat

Chairman

Ahmad Bin Byat is considered one of the most well known corporate leaders in Dubai,

providing leadership and strategic direction to several key economic initiatives that drive

forward Dubai’s knowledge-based economy. As an integral member of high level

executive teams, his decisions have had a strong impact on the economic growth of the

Emirate of Dubai.

As the CEO of Dubai Holding, Bin Byat occupies several high-ranking directorial

positions in Dubai including Director General of the Dubai Technology and Media Free

Zone Authority, Executive Chairman of TECOM Investments, Executive Chairman of du

- the Emirates Integrated Telecommunications Company, and member of the Board of

Trustees for Dubai School of Government.

He has also previously held a number of prestigious positions including Secretary

General of the Executive Council of Dubai Government, President of Dubai Government

Excellence Programme, Executive Chairman of the Dubai Real Estate Corporation, a

member of the Board of Trustees for Zayed University and Director General of the Dubai

Education Council.

A high achieving professional, Bin Byat has left an indelible mark on positions that he

has held, including key managerial positions with Etisalat.

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His educational background, leadership qualities and technology skills have made him a

highly resourceful and inspiring corporate leader. His charisma and motivational skills

have helped him build high-performing teams, create partnerships, and nurture long-term

relationships.

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Younis Al Khoori

Vice Chairman

Younis Al Khoori is the Undersecretary at the Ministry of Finance and is also on the

Board of Directors for UAE Central Bank, and Vice Chairman of Emirates General

Petroleum Corporation (EMARAT).

Jassem Mohamed Al Zaabi

Board Member

Jassem Mohamed Al Zaabi is the Executive Director of the Information and

Communications Technology (ICT) Unit of Mubadala.

Jassem is the CEO of Yahsat, an Abu Dhabi based satellite communications company

and is Chairman of Injazat Data Systems. He serves on the Board of Directors of

Emerging Markets Telecommunication Services Limited, Advanced Technology

Investment Company (ATIC), Abu Dhabi Ports Company (ADPC) and Emirates Nuclear

Energy Corporation.

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Waleed Al Muhairi

Board Member

Waleed Ahmed Al Mokarrab Al Muhairi is the Chief Operating Officer of Mubadala

Development Company.

He also serves as Chairman of the Board of Directors of Yahsat, Mubadala Infrastructure

Partners, Advanced Technology Investment Company (ATIC) and Cleveland Clinic Abu

Dhabi. He is Vice Chairman of Tabreed and a Director of AMD, Piaggio Aero Industries

and Abu Dhabi Future Energy Company (Masdar).

Fadhel Al Ali

Board Member

Fadhel Al Ali is the Executive Chairman of Dubai Holding – Operations, and manages

the Dubai Holding Corporate Office as well.

In addition to being on the Executive Committee of Dubai Holding and several of its

entities including Jumeirah Group. He is also on the Board of Dubai Financial Services

Authority, Emaar Properties PJSC and Marfin Popular Bank.

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Abdlhamid Saeed

Board Member

Abdulhamid Saeed is the Managing Director and Board Member of First Gulf Bank. He

is also the Chairman of Aseel Islamic Finance, Vice Chairman of First Gulf Libyan Bank

and Managing Director of Reem Investments.

Abdulhamid also plays a major role in Government bodies as a member of the Economic

Committee of The Higher National Security Council, a Board and Executive Committee

Member of the Abu Dhabi Securities Exchange, and Emirates Investment Authority. He

is the Managing Director and Board Member of First Gulf Bank, Vice Chairman of First

Gulf Libyan Bank, Chairman of First Gulf Financial Services, Chairman of Aseel

Finance, and Managing Director of Reem Investment

Ziad Galadari

Board Member

Ziad Abdulla Galadari is the Founder and Principal of Galadari & Associates and has

been practicing as Advocate, Legal Advisor and Arbitrator since 1983. He is the

Chairman of Galadari Investments LLC. and a member of the Board of Directors of

Dubai World Trade Centre and DANA Gas.

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Abdulla Al Shamsi

Board Member

Abdulla Hamad Rahma Al Shamsi is currently the General Manager of United Arab

Shipping Agencies Co. (Emirates). He is also the Vice President of Dubai Shipping

Agents Association.

Al Shamsi is the Chairman of Dubai Properties Group and the Chairman of Middle East

Container Repair Co. (LLC).

Saeed Rashed Al Yateem

Board Member

Saeed Rashed Al Yateem is Assistant Undersecretary of Budget and Revenues Affairs at

the Ministry of Finance.

He supervises UAE Federal Government Budgeting process and performance and UAE

Federal government Public Revenues.

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Marketing & Distribution – Red BullGives you wiings to fly

Mohamed Al Suwaidi

Board Member

Mohamed Al Suwaidi is the Executive Director of Asset Management at Emirates

Investment Authority.

Prior to that, Mr. Al Suwaidi has worked for Abu Dhabi Investment Authority as the

Executive Director of the Treasury Department for ten years. Mohamed also has

significant experience serving as a Board Member for several UAE organizations. He is

currently a board member of Zayed Higher Organization for Humanitarian Care &

Special needs since 2005

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VISION

Vision Statement:

• People: Be a great place to work where people are inspired to be the best they can

be.

• Portfolio: Bring to the world a portfolio of quality beverage that anticipate and

satisfy people's desires and needs.

• Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value.

• Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.

• Productivity: Be a highly effective, lean and fast-moving organization.

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Marketing & Distribution – Red BullGives you wiings to fly

Mission Statement

Our mission is to be the premier marketer and supplier of

RedBull in Asia, Europe and other parts of the globe. We will

achieve this mission by building long-term relationships with the

people who can make it become a reality.

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STRATEGY

Great Strategy Begins with Great Research.

• Once the brand’s core values have been identified, the road towards effective brand

proposition development begins.

• Development of the brand statement- commencing a Brand development strategy.

Red Bull - Digital Media Advertising Campaign

Re-energizing consumers at both ends of the day

The Energy Shots variant are located near Customer face Display Units (CDUs) at the till

point, in direct proximity to the digital signage screen, and in the ideal location for

advertising to prompt immediate consideration and purchase.

Background

Red Bull used the Forecourt network for the launch of its Red Bull Energy Shots variant

in February 2010. Since then Red Bull has utilised the Forecourt network to its full extent

by running tactical advertising campaigns at specifically selected time to reach their core

target audience.

Campaign details

The Red Bull advertising campaign first ran in November 2009 across the Forecourt

network, then in February 2010, April 2010, August 2010 and again in March 2011.

Digital out of home’s flexibility enabled Red Bull to advertise on the forecourt

convenience network at the most relevant times of day –first thing in the morning,

between 6am and 10am, for a wake-up energy boost; and early evening, between 4pm

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and 8pm, when consumers are looking for a quick lift to keep them going throughout the

evening. We worked with Red Bull to animate the first Red Bull Energy Shots static

creative, which was linked inextricably with the forecourt environment. It featured the

unmistakable Red Bull animated cow driving a car, and ended on a still of car keys and

an Energy Shots carton.

Red bull continued to engage with a motoring audience, using their creative to make an

explicit link between a motoring audience and an ideal drink choice for boosting energy

whilst on the move.

Results

EPOS analysis was ran for one of the Red Bull campaigns which showed a 20% sales

uplift. This was particularly impressive given that at the same time a price promotion was

running on the 250ml Red Bull Energy cans so we might have expected less of an uplift.

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Brand Positioning Strategy

• Clear, Engaging, Unique, & Relevant to the target audience. 

• Able to incorporate an element of positive emotional attachment that is better

than just "good”. 

• Echoed within business, internally and externally.

• Consistent across multiple marketing & advertising mediums (print, online

presence, etc). 

• Continually toughened within the organization so that employees consistently

deliver what is promised. 

•   Able to adapt to a changing marketplace.

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Distribution Strategy

• Intensive distribution aims to provide saturation coverage of the market by using

all available outlets such as:

• Super markets,

• Gyms,

• Coffee Houses: Subway, Barista, Costa Coffee, Café Coffee Day

• In n Out Convenience Stores.

• Pizza Outlets.

Objectives:

• RedBull’s objective is: Sales Promotions.

• Create new target markets.

• Large display in the Departmental stores.

• Bull Hoof stickers on the floors of departmental stores promoting RB.

Prmotions via net

• Promotions through social networking sites such as: facebook, twitter, Hi5.

• Also, Ad promos on websites such as NDTV, zoom India.

Estimated Budget for Red bull

Prmotions via consumers

• Red Bull sponsors the motorsports or fun sports, but always where Red Bull is

needed.

• Red Bull does event sponsoring.

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Marketing & Distribution – Red BullGives you wiings to fly

• Event sponsoring attracts people’s attention towards the product and connects

them.

• Advertising: Red Bull has an aggressive marketing campaign.

• Red Bull uses all the available media channels, meaning cinema, TV, radio, press

and the internet.

• In other words the company focuses on the media through which it reaches its

primary target market-young people.

• RB allows the consumers to interpret the product & the moments of use

themselves.

• Red Bull achieves this by a humorous and witty cartoon campaign, transferring

the message that this energy drink helps you to escape by `giving you wings ´.

Personal Selling:

• Sampling is another very important part of the three pillar marketing system.

• As the major purpose of Red Bull is to energize the company samples at the right

place at the right time, where it finds its exact target market.

• Examples of usage are driving, studying, working night shifts and sports.

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Evaluation and Control Metrices of Promotional strategies:

Campai

gn Element

Metrics

News Media No. of viewers of the articles

Social Media No. of people using the Blogs such as Twitter, Facebook

Internet & TV No. of people viewing particularly when the Ad is being aired.

Print

Advertisement

No. Of Subscribers of those magazines, Newspapers

Product

Placement

No. of comments (+ or - ) mentioned on social networking sites.

Budget:

Magazine:

• Femina, People, Rolling Stones.

• 15k per page * 12 mnths- 180,000

Newspapers:

• HT City & Delhi Times

• 1lac per page * 4 weeks * 12 mnths- 4800000

• Radio:

10k per mnth * 12 – 120000

TV:

5 lacs * 4 weeks * 12 - 2400000

Total Expense:

31,80,000

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TABLE No.1TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE

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AGE NO. OFRESPONDENTS

PERCENTAGE

20-24 30 45%

25-29 19 26%

30-34 14 18%

Above 35 12 11%

TOTAL 75 100%

Analysis

From the above table it is clear that 45% of the respondents are aged between 20 and 24,

26% between 25 and 29, 18% between 30 and 34 and only 11% aged above 35 years.

Interpretation

It is revealed that majority of respondents are between 20 and 29 years. From this we can

conclude younger generation and middle age are more interested in Red Bull because it is

thrilling and inclined towards the product.

GRAPH No.1

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GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE

TABLE No.2TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

GENDER NO. OFRESPONDENTS

PERCENTAGE

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MALE 49 65%

FEMALE 26 35%

TOTAL 75 100%

Analysis

From the above table it is clear that 49% of respondents were male and female

respondents constituted just 26% of total responses.

Interpretation

It is clear that most of the users of Red Bull are males mostly because men are addicts to

it.

GRAPH No.2GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

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TABLE No.3TABLE SHOWING-THE OCCUPATION OF RESPONDENTS

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OCCUPATION NO.OFRESPONDENTS

PERCENTAGE

STUDENT 29 38%

GOVERNMENT SERVICE 9 12%

EX-SERVICEMEN 3 4%

PROFESSIONAL 21 28%

SELF-EMPLOYED 13 18%

TOTAL 75 100%

Analysis

From the above table it is clear that 38% of the respondents were students pursuing their

graduation or post graduation studies and 28% were professionals. 18% of the

respondents were self employed, 4% were ex-serviceman and 12% belonged to

government services.

Interpretation

It is clear that users are mostly Professional males, 20-35 years of age including some

students because it helps in focusing and staying awake.

GRAPH No.3GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS

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TABLE No.4TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

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INCOME GROUP NO. OFRESPONDENTS

PERCENTAGE

LESS THAN 1,20,000 39 52%

1,20,001-3,60,000 10 14%

3,60,001-7,20,000 14 18%

ABOVE 7,20,000 12 16%

TOTAL 75 100%

Analysis

From the above table it is clear that 52% of the respondents had an annual income of

lesser than 1,20,000, 18% had income between 3,60,001 and 7,20,000, 16% earned more

than 7,20,000 per annum and 14% had income between 120001 to 3,60,000.

Interpretation

It shows that Red Bull is placing their products in the appropriate and reasonable price

range and the people of income bracket less than 1,20,000 can easily afford this product.

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GRAPH No.4GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

TABLE No.5

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TABLE SHOWING- THE RESPONDENTS INVOLVEMENT WITH ANY EXTRACURRICULAR ACTIVITIES ON CAMPUS OR OUT OF OFFICE

YES/NO NO. OF RESPONDENTS PERCENTAGE OF REPONDENTS

YES 23 30%

NO 52 70%

TOTAL 75 100%

Analysis

From the above it is clear that 30% of the respondents are involved in extracurricular

activities and 70% of them do not participate.

Interpretation

It clearly shows that majority of the respondents do not participate in any extracurricular

activities.

GRAPH No.5

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GRAPH SHOWING- THE RESPONDENTS INVOLVEMENT WITH ANY EXTRACURRICULAR ACTIVITIES ON CAMPUS OR OUT OF OFFICE

TABLE No.6TABLE SHOWING-THE RESPONDENTS CONSUMPTION OF RED BULL

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CONSUMPTION NO. OF RESPONDENTS PERCENTAGE OF RESPONDENTS

EVERYDAY 15 19%2-3 DAYS A WEEK 20 27%4-5 DAYS A WEEK 12 16%

ONCE A WEEK 7 10%EVERY 2-3 WEEKS 9 12%

ONCE A MONTH 7 9%LESS THAN ABOVE 5 7%

TOTAL 75 100%

Analysis

From the table it clearly shows that 19% of the respondents consume Red Bull everyday,

27% of them 2-3 days a week, 16% of them 4-5 days a week, 10% once a week, 12%

every 2-3 weeks, 9% once a month and 7% less than above.

Interpretation

It is clear that in customers there is a high regularity amongst consumption by customers

in a week.

GRAPH No.6

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GRAPH SHOWING-THE RESPONDENTS CONSUMPTION OF RED BULL

TABLE No.7

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TABLE SHOWING- THE INCREASE IN CONSUMPTION OF RED BULL BY THE RESPONDENTS AFTER ADVERTISEMENTS

YES/NO NO. OFRESPONDENTS

PERCENTAGE

YES 47 62%

NO 28 38%

TOTAL 75 100%

Analysis

From the table it clearly shows that 62% of the respondents are affected by the

advertisements and 38% of them are not.

Interpretation

It is clear there is an increase in consumption of Red Bull after advertisements and hence

this marketing strategy has benefited.

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Corporate Social Responsibility

The Red Bull Spirit CSR program aims to encourage volunteers and promote the

volunteer spirit in Thai society.

In our capacity as CSR program manager for Red Bull Spirit, Siamentis worked with the

client and local communities to create a number of volunteering opportunities suitable to

the varied interests and time availability of different groups of volunteers.

CSR Programs that Enhance Brands and Create Social Impact

Concept and Development of the Red Bull Spirit CSR program

Our unique approach to integrate CSR programs management with communication

programs has proven to be extremely effective. ?The success of the Red Bull Sprit CSR

program is a case in point.

As CSR Program Manager, we helped to develop the volunteer program, identify and

coordinate with partners (NGOs and community workers), and manage activities to

ensure that volunteers take home fulfilling and rewarding experiences.

Examples of Volunteer Activities

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As creative agency, we have been responsible for the development of the Red Bull Spirit

brand and its identity, managing all aspects of its communication program (printed

materials, commercials ads, etc.), including the development and maintenance of its

website.

Since the official launch of the program in March 2008, the agency has taken the Red

Bull Sprit CSR program from concept through to conception to to become one of the

most recognizable CSR brands in Thailand.

Our communication program aims to create awareness about Red Bull Spirit and

volunteer opportunities open to the public, as well as to raise public awareness and create

a better understanding of current challenges in Thai society, such as community forest

issues, food security, and the issues faced by people with mental disabilities.

In October 2009, Media Asia ranked Red Bull Spirit TV commercials among the 15 most

recalled TV commercials, standing shoulder-to-shoulder against some of the largest

advertisers in Thailand despite its modest media budget. Siamentis is the creative agency

responsible for the creative concept and production supervision of the TVC.

In December 2009, Media Asia published a story about building brands through CSR

using Red Bull Spirit as a case study.

Our integrated approach to CSR program and communications management has created a

wide-reaching positive social impact by attracting thousands of people to volunteer while

generating public awareness and goodwill for the client and their brand.

 

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Business Ethics and Corporate Social Responsibility 1e

A new text for new realities: Business Ethics & Corporate Social Responsibility charts a

course for students through the unprecedented challenges and turbulence of modern

business and its implications for people across the globe.

Moving beyond the Anglo-American focus of existing works, the authors employ a

refreshingly international perspective to leave students with a broad and reflective

understanding of business ethics. A flexible 3-part structure, developed from extensive

market feedback, aligns with the latest course structures, while a strong focus on

environmental ethics and sustainability throughout provides market-leading coverage of

this vital issue. An unparalleled range of case studies, including chapter cases and longer

premium cases supplied by HBR, Ivey and ECCH, combine with a full set of online

supporting resources to make this the complete introduction to business ethics in a

rapidly evolving world.

Features

Full international coverage that looks beyond the traditional European and

American contexts to provide the complete picture

Hundreds of real-world examples that illustrate ethical decision-making in action

and what to learn from results

Balanced discussion of all the key players in business ethics and corporate social

esponsibility including SMEs, NGOs and MNCs

Integrative case studies from premium providers featuring a diverse range of

organizations including Red Bull, IKEA, and UNHCR

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Adva n tage s :

B-Vitamins

Red Bull stimulates the metabolism to aid in concentration and performance, and

is said to help with endurance and reaction speed. Ingredients include B-vitamins,

B6 and B-12 to help relieve stress, especially helpful to women experiencing

PMS (premenstrual syndrome). Red Bull contains taurine, which is broadly

classified as an amino acid that aids in tissue repair and is essential for the

development of the nervous system. Meat and fish, especially, contain taurine in

its natural form, which is also an anti-inflammatory agent.

Carbohydrate and Sugar Content

Red Bull energy drink with taurine contains 27 grams of carbohydrates per 8-

ounce serving, while 54 grams of carbohydrates are imbibed on drinking the

entire 16.9-ounce can of Red Bull and 26 grams of sugar are consumed in each 8-

ounce serving -- double that amount if drinking the whole can. The pancreas then

secretes insulin in order to convert the carbohydrates and sugars into glucose,

which in turn equals energy.

Caffeine

High levels of caffeine, which give a false sense of energy to the consumer, are

contained in Red Bull. The combination of caffeine, carbohydrates and sugars

provide the energy in Red Bull energy drink. Caution should be taken when

consuming large amounts of caffeine as too much of a good thing is not

necessarily better. France banned Red Bull after the death of a young Irish athlete

on drinking four cans of Red Bull energy drink and then participating in a

basketball game. Denmark also banned Red Bull. Sold in the UK, Red Bull

contains a warning aimed at pregnant women.

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RED BULL DOESN’T JUST GIVE YOU WINGS — IT MAY ALSO GIVE YOU A

HEART ATTACK!!!!

Did you know that just one can of the popular stimulant energy drink Red Bull

may increase your risk of heart attack or stroke? The risk also affects young people who

are probably the biggest consumers of this type of drink.

The caffeine-loaded beverage causes blood to become sticky, a pre-cursor to cardio-

vascular problems such as stroke. (1) As little as 1 hour or sooner after drinking Red

Bull, your blood system becomes abnormal, as might be expected from a patient with

cardiovascular disease.

Red Bull is banned in Norway, Uruguay and Denmark due to the health risks and

questions regarding the safety of Red Bull and other energy drinks, keep being reported

in the media regularly. (2) 

Previously, A Current Affair ran a segment on the dangers of Energy Drinks and Doctor

John Tickell conducted a series of tests on two teenagers.  The Doctor was horrified

young people are legally allowed to buy these drinks which contain 3 to 4 times the

caffeine of a can of cola.

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The two teenagers in this story both experienced effects to their blood pressure and heart

rate. 

Not only do these energy drinks contain high levels of caffeine— sometimes 15 times the

recommended amount, they contain high levels of artificial sweeteners such Aspartame,

which alone has been shown to have multiple neurotoxic, metabolic, allergenic, foetal,

and carcinogenic effects.

These drinks are marketed towards the young, especially those of drinking age. 

Mixing energy drinks with alcohol, which is combining a stimulant with a depressant, has

become an increasingly popular occurrence at parties and nightclubs. 

The combined effect of these substances is unknown, but researchers say overloading

your body with heavy stimulants and heavy depressants could lead to heart failure ,

(3) and according to previous news stories about fatal outcomes from this deadly mixture,

that’s not just a theory!

Who should avoid these drinks?

Everybody should avoid these types of drinks…!!! 

We have listed below those who are at a higher risk from consuming energy drinks, so if

you know of someone who regularly drinks these beverages, you may like to pass this

article on to them, so they can make an informed decision whether or not to give them

up.  It is wise to avoid these drinks if you:

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Are pregnant or lactating

A child

Are sensitive to or have a low tolerance of  caffeine

Suffer from anxiety

Suffer from high levels of stress

Suffer from chronic fatigue syndrome

Have high blood pressure

Are predisposed to cardiovascular disease

Have any kind of blood clotting disorder

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Side Effects of Red Bull Energy Drink

Red Bull is a fortified beverage that can be used to supplement energy and concentration.

It contains several invigorating ingredients, each of which has a slight nuance in

function. While often beneficial, when taken in excess, some ingredients can cause

undesirable side effects.

Weight Gain

Because of the amount of sugar contained in a can of Red Bull, weight gain can be an

unhealthy side effect of Red Bull consumption. According to DietFacts.com, one 8.3

ounce can of Red Bull has 27 grams of sugar. The Mayo Clinic says that sugar intake has

a direct correlation with weight gain, especially for individuals who do not exercise

frequently or people who struggle to maintain a healthy weight. Weight gain can result in

a number of health-related problems, including heart complications and lethargy.

Excessive sugar intake can also contribute to the development of diabetes and a reduction

in the function of the immune system.

Anxiety

One of the energy-boosting ingredients in Red Bull is caffeine. An 8.3 ounce can of Red

Bull contains 80 mg of caffeine. According to an article by Woojae Kim of the

Massachusetts Institute of Technology entitled "Debunking the Effects of Taurine in Red

Bull Energy Drink," the caffeine in energy drinks is the greatest contributor to the

energy-producing effect, not the taurine or grucuronolactone, as the manufacturer

proposes. Excessive caffeine consumption can produce anxiety, nervousness, restlessness

and insomnia.

Cardiovascular Risk

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The caffeine in Red Bull can also cause increased blood pressure. This can be dangerous

for individuals who intend to engage in intense physical exertion or have had previous

heart problems or complications. High blood pressure can also trigger irregular heart

rhythms, which could be detrimental to the heart and potentially fatal to the individual.

Consumption of energy drinks has also been associated with an increased risk of heart

attacks and cardiac failure. Roger A. Clemens of the University of Southern California's

School of Pharmacy says that mixing alcohol with energy drinks, such as Red Bull, can

cause cardiovascular risk, shortness of breath, and rapid heartbeat.

Dehydration

Dehydration is always a concern for athletes. However, individuals who consume

caffeine, like that in Red Bull, may have an increased risk of dehydration. Excess

caffeine intake has been shown to result in headaches and nausea, all symptoms of

dehydration. Redbull.com warns that Red Bull "has not been formulated to deliver re-

hydration" and recommends athletes drink plenty of water during exercise.

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Risks of Red Bull Ingestion

By Simon Fuller, eHow Contributor

Red Bull is a popular brand of energy drink, first launched in the United States in 1997,

and now enjoyed by consumers including workers and party-goers, who drink Red Bull to

increase productivity and to stay awake into the early hours. Studies have been

conducted into the negative effects of consuming Red Bull, however, with some concerned

about the consequences of Red Bull on the human body.

Risk of Mania

Some medical professionals have expressed concerns about the potential of Red Bull to

induce a manic episode in individuals. These worries mostly concern taurine and inositol,

two ingredients found in the energy drink. According to a report by Verinder Sharma,

printed in the German Journal of Psychiatry in 2010, and entitled "Red Bull and Mania,"

taurine has in the past been responsible for triggering psychotic episodes, while inositol

has also been associated with manic problems, especially in patients suffering from

bipolar disorder.

Induces Reckless Behavior

Many drinkers of Red Bull combine this energy product with large amounts of alcohol,

particularly with vodka, which is often promoted by alcohol vendors as a highly-suitable

accompaniment. Consumers view the combination as supplying a lot of energy, allowing

them to keep partying all night, but the downside is that Red Bull and alcohol make

drinkers especially reckless. This recklessness can lead drinkers into dangerous situations

like drunk driving or sexual activity they later regret. Research from North Carolina's

Wake Forest University Baptist Medical Centre, published in 2007, found that of 4,271

U.S. college students questioned, those who combined Red Bull and alcohol were two

times more likely to receive medical attention after drinking than those who stuck to

alcohol alone.

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Perception of Drunkenness Reduced

Another problem for individuals combining alcohol with Red Bull is that drinkers suffer

from a reduced perception of how inebriated they are when Red Bull is added to the

equation. This means they are more likely to drive while drunk, for example, since their

perception of their own motor coordination is likely to be incorrect. Research from

Brazil's Universidade Federal do Parana found that when compared to alcohol alone,

ingesting both Red Bull and alcohol had a significant effect on an individual's ability to

perceive symptoms of weakness and headache, in addition to motor coordination;

essentially, the individual feels less drunk than she actually is.

Heart Problems Risk

Red Bull contains high levels of caffeine, and some experts have highlighted this

ingredient as inducing heart risks in long-term consumers of the product. Researchers at

the Cardiovascular Research Centre at the Royal Adelaide Hospital and Adelaide

University in Australia, who surveyed students in their 20s, found a link between even

small doses of Red Bull and an increase in the risk of blood clots in a person. The

caffeine in Red Bull has also been linked to heart attack incidents, as reported by the

Times Online newspaper website.

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CONCLUSION

Red Bull, the producer of the number one energy drink in the world was founded in 1984

by Dietrich Mateschitz in Austria. Since 1987, Red Bull has sold more than 30 billion

cans, 4.6 billion alone in 2011. Red Bull’s headquarters are based in Austria but the

product is now available in 164 countries. They are not only an energy drink producer,

but also own a variety of sports teams, their own music label and run many high profile

advertising events. Currently Red Bull employs more than 8,294 people worldwide.

Some of the company objectives include:

Expand the products presence among the maturing target market.

Maintain and increase market share within a highly competitive market.

Maintain excellent marketing.

Red bull is well known for their very unique advertising strategies that include high

profile events. Most recently ‘Red Bull Stratos’ where Felix Baumgartner broke five

world records including highest free fall jump and fastest speed in a free fall (Guinness

World Records, 2012). Events like these are representative of the internal company

culture as well. We will display in this report how Red Bull takes a unique approach to

company culture as well as some of their motivation practices.

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QUESTIONNAIRERESPONDENT INFORMATION

Name:1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:

Less than 1, 20,000 1, 20,001-3, 60,000 3, 60,001-7, 20,000 Above 7, 20,000

5. Are you involved with any extracurricular activities on campus or out of office? Social events you participate in?

Yes No

6. Have you consumed an energy drink before?

Yes No

-If “yes” why? / If “No” why not? Yes No

7. Have you tried the Energy Drink “Red Bull”?

Yes No

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8. How often do you consume Red Bull?

Everyday 2-3 days a week 4-5 days a week

Once a week Every2-3 weeks Once a month

Less than above

9. Has marketing or advertising affected your consumption of Red Bull?

Yes No

10.Please specify your source of awareness of Red Bull?

Magazines TV Ads Friends

Website/blogs Other Sources (Please specify)

11.Why do you buy Red Bull?

For Relieving Fatigue For staying Awake

Daily Routine Increase Concentration Hangover Remedy Others

12.Where do you usually buy Red Bull?

Convenience Store Supermarket Drug Store

Others

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13.What are important factors to choose Red Bull? Please provide your top 3 answers.

Energy Price TV Commercial

Ads on newspaper/magazine Marketing Campaign

Package Brand

Taste Word of Mouth

14.How much do you usually spend on Red Bull per week?

Range of Rs.100 Range of Rs.200 Range of Rs.300

Range of Rs.400 Range of Rs.500 More than above

15.Would you prefer any other energy drink over Red Bull?

Yes No

If Yes why?

16.Do you think Red Bull is over priced?

Yes No

17.Have you ever faced difficulties in finding Red Bull?

Yes No

Are you satisfied with availability of Red Bull in market?

Extremely satisfied Not at all satisfied

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18.What do you think is the Red Bulls supremacy over its competitors in

the market?

Price Taste Brand Image

Promotion

19.Which company do you think has the highest market share in the

energy drink segment?

Red Bull XXX

Cloud 9 Others

20.Any Suggestions

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BIBLIOGRAPHY

Books Referred

Marketing Management, 13th edition - Philip Kotler.

Survey Research Method - Charles Babbie.

Magazines Referred

The Red Bulletin

Websites Referred

www.google.com

www.wiiings.com

www.redbull.com

www.wikipedia.com

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