The_Success_of_Red_Bull

The success of Red Bull With the remarkable improvement of people’s living standard, the advanced science and technology adds much spice to our daily life, especially, it applies on food and beverage. Red Bull is familiar to people as an energy beverage, and it’s one of the most sell well drink all over the world. It is commonly believed that it can bring energy and also it allows people are full of energy. It has aroused wide public concern. There is no doubt that Red Bull brings plenty of economic benefits from the world. But at the mean while, the company is still facing many challenges that they need to solve it. The definition of Red Bull What does exactly Red Bull mean' And compare with other products, what special features that Red Bull has' Red Bull is the earliest energy drink as people know, and it was a carbonated fluorescent yellow liquid. The main ingredients were taurine, caffeine, glucuronolactone, Vitamin B and sugar. Red Bull’s retail price was $2 per can and it sold for up to $6 in bars, much higher than competing soft drinks. Its benefits were to increase physical endurance, improve concentration and reaction speed, improve vigilance and stimulate the metabolism, thus, more and more people to purchase it that can gain more energy when their tired. History First of all, this tonic drink was created by a Thai who named Chaleo Yoovidhya in 1966. Until 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed widespread popularity throughout the Far East. In 1984, Chaleo Yoovidhya and Dietrich Mateschitz decided to establish Red Bull Company. After few years later, they expanded their brand to other countries; meanwhile Red Bull is present in 164 countries. (Bized, 2005) Interestingly, initial market research results were far from promising. Mateschitz (Red Bull founder) did not see early consumer reactions as a failure, there are 50 percent people think it taste crazy and the other think that it taste terrible in initial period. However, Mateschitz thought that it was great, he was optimistic believe no one can beat him. Sales In 1992, the product was distributed in Hungary and Slovenia, followed by Germany and Switzerland in 1994. Red Bull entered the U.S. market in 1997, testing it in California, and taking five years before the drink was distributed nationally. By 2003, the US market generated an estimated 40 percent of Red Bull’s turnover. In 2004, Red Bull sold in over 100 countries. Its 2003 global sales were $1.26 billion and around 1.5 billion cans. Mateschitz’s net worth of over $1 billion made him the third richest Austrian in 2004. Furthermore, a total of 4.631 billion cans of Red Bull were sold worldwide in 2011, representing an increase of 11.4% against 2010; company turnover increased by 12.4% from EUR 3.785 billion to EUR 4.253 billion. In all key areas such as sales, revenues, productivity and operating profit, the figures recorded were the best in the company's history so far. The main reasons for such positive figures include outstanding sales, especially in key markets such as the USA (+11%) and Germany (+10%), and also in other markets such as Turkey (+86%), Japan (+62%), France (+35%) and Scandinavia (+34%), combined with efficient cost management and ongoing brand investment. (2012) Target customers Red Bull is adopted by many different groups, more and more people start to drink energy beverages in their life. For example, Red Bull is wildly used in many sports, and you can see many players drink the energy beverages to recover during the break. For people who have work, Red Bull's function is the main impact to attract them to drink it, because people get tired easily when they do lots workload; however, Red Bull provide energy to them, make them devote themselves to working again. Moreover, teenager is the biggest potential consumer group for Red Bull, especially for students, usually they may or may not often read newspapers and watch TV very inconvenient, but they have enough time and convenience to do entertainment and sport events. Thus, if it comes to sports, they might have a chance to consume Red Bull. Challenges Nowadays, the high-volume, low-price business can obtain vast profits. Red Bull sponsor a lot of brands, such as Ferrari, Renault. In the 2004, Red Bull found it has to make a choice, challenged with defending its 70% worldwide market share of the $2.5billion energy drinks category that it had pioneered. The company was facing a maturing market and an onslaught of competitive brands, some of them promoted by beverage industry giants such as Coca-Cola and Pepsi, others as private labels by mass retailers such as Asda. They based on their primary influence to come up with new energy beverage, and they wanted to share the marketing with the Red Bull. For instance, a Canadian company created the anti-energy drink which named Slow Cow, and its concept is totally different compare to the Red bull. "Slow Cow is the exact opposite of the energy drinks that cause hyperactivity, anxiety and the jitters. The anti-energy drink contains ingredients like theanine, chamomile, valerian, passiflora and other ingredients known for their calming effects." (Hodgson, 2009) Slow Cow promises to help people distress and relax, while increasing mental awareness at the same time. Many people afraid of the health problem of the Red Bull, because it contains various ingredients, and some of them might bring negative affects to people. In fact, Red Bull's energy is derived from a mixture of caffeine, vitamins, carbohydrates and taurine, an amino acid that jump-starts the body's metabolism. Hence, those hormones could hurt human beings' bodily functions, especially for pregnant women and kids, they were easily affects by these chemistries. Besides, many countries made related policies to control the selling of Red Bull; the Red Bull is banned in France; classified as a medicine in Norway; until recently was only available in pharmacies in Japan. (2001, July) Strategies when we talking about strategies, we have to remember that who’s your target consumer, and how much does your brand appeal to them' Is that consumer as engaged with your product' Actually, red bull has done a pretty good job. Image Red Bull’s success shows the way for a number of imitators with energetic names like Monster, RockStar, and Amp. Energy drinks don’t attract drinkers as coffee, tea or wine do. In fact, energy drinks don’t sell for their taste. Instead, they sell on image. For example, many people don’t like the taste of Red bull. Sometimes, they are even hate the taste. Apparently, people are not addicted to Red Bull. However, the sales of red bull’s products have a rapid increase each year, especially in recent couple of years. The main reason could be the image. In another words, customers’ loyalty keeps sales going up. Red bull gives us an expression that it exists in anywhere; we can even see the unique and exclusive advertisement on the car. Distribution Red Bull has an excellent sale and distribution tactics. Recently, Red Bull had started to experiment with the distribution mix. For example, it had been highly successful in a distribution alliance in Australia, where expanded distribution contributed to a 40% in sales between the summer of 2003 and 2004 over its existing core channels of licensed premises, grocery and convenience stores. In China, Red bull changed its image in order to appeal more clients. Sponsorship A major part of Red Bull’s marketing was sponsorship of extreme sports events, and more recently in F1 and motorcycle racing to broaden message reach. Many of these had a flying theme, consistent with the brand’s slogan. Rather than merely sponsoring events, Red Bull also developed its own extreme sports events such as BMW biking, kite-boarding, extreme snowboarding, free skiing, paragliding and skydiving. Slogan Red bull has a distinctive slogan - “gives you wings”. First of all, let us think about have you ever dreamed that you could fly or have you ever wanted to be an astronaut. It appears whether you answered yes to one or both of these questions, the drink that “gives you wings” has an answer for both. Red Bull skillfully invites both to take action and fulfill the biggest dreams they’ve ever had. Instead, the strategy is to make life exciting and fun, no matter what a person’s age. Besides, the slogan is great because it can target almost all of us. Most of us were thinking about flying in the sky when we were a kid, and it seems that Red bull’s slogan could make our dreams come true. Other sponsor For its engaging creativity, and the savvy cultivation of and integration of the Extreme Sports movement, Red Bull leads the category in brand marketing strategy. And now, if you’re more artist than athlete, simply apply to the new Red Bull Music Academy. Yes, the brand plans to appeal to every dream. References: 1. Bized, (2005, January 31). Red Bull Case Study Home Page. Retrieved from http://www.bized.co.uk/compfact/redbull/redbullindex.htm'page=show 2. Company figures. (2012). Retrieved from http://www.redbull.com/cs/Satellite/en_INT/Company-figures/001242939605518' pcs_c=PCS_Article&pcs_cid=1242937556133 3. Hodgson, B.G. (2009, July). Red Bull Has Competition From Anti-Energy Drink Company Slow Cow. Retrieved from http://inventorspot.com/articles/red_bull_has_competition_antienergy_drink_com pany_slow_cow_30636 4. Red Bull: Raging success. (2001, July 13). BBC News. Retrieved from http://news.bbc.co.uk/2/hi/uk_news/1437154.stm 5. Smith, B. (2012, April 20). Why Red Bull Uses Social Media to Get New Customers. Retrieved from http://socialmediatoday.com/fixcourse/492753/why-red-bull-uses-social-media-get-new-customers-instead-only-advertising 6. Andy. (2012, April 4). Putting Your Brand on the Front Page – Lessons from Red Bull. Retrieved from http://www.dragonflyeffect.com/blog/puttin-your-brand-on-the-front-page-lessons-from-red-bull/