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Red Bull Future Success
Red Bull is a widely recognized energy drink brand produced by a company of the same name based in Austria. They currently export to over 100 countries, including the United States (Data monitor Red Bull). Red Bull is a company that is growing and, if its aggressive global marketing campaign continues to be effective, will likely continue to do so in the upcoming years.
The drink and the company have had a relative short life. Red Bull was founded by Dietrich Mateschitz, an Austrian marketing director and entrepreneur, in 1984 (Redbull.com). The drink itself is based on an energy drink from Thailand, for which Mateschitz discovered the recipe on a trip there in 1982. Mateschitz did not immediately launch his new product. He spent the next few years developing a marketing plan for the drink, and then launched his new product in 1987 (RedBull.com). By 1992, with savvy marketing, Red Bull had already spread to foreign markets and was into the United States by 1997 (Data Monitor Red Bull). A little over a decade later, Red Bull enjoys global popularity.
Marketing for Red Bull focuses on its beneficial effects. The energy drink is advertised as having several benefits, including claims to increased performance, endurance, and concentration, along with decreased reaction time and stimulated metabolism (from the can). The primary active ingredients are taurine, caffeine and sugar, and one can has a comparable effect to a cup of coffee. This quality makes Red Bull a very competitive product with much potential for future growth, based on the number of people worldwide who consume coffee for the boost it gives them, and who might be convinced to try a a carbonated beverage with a similar energy boost effect.
Red Bull places itself for marketing purposes in the relatively new category of function drinks, a category that includes energy drinks, sports drinks and nutraceutical drinks. This category of beverages is a huge market in the United States, with $6.2 billion of revenue in 2008, over half of which, $3.3 billion, came from the energy drink market (Data Monitor: Functional Drinks in the United States). The market for energy drinks in the US has been steadily increasing from year to year. The growing market for energy drinks in general is a good indicator of the potential for future success of Red Bull, a key player in this marketing niche.
The company’s mission statement reveals their vision for the company’s future. The mission statement for the company is:
"We are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice." (Redbull.com)
In other words, Red Bull wants to continue to hold a strong position in the energy drink market and to provide good service to customers and employees. This outlook provides a good base from which to plan for future company growth.
The image of Red Bull is just as important as the product itself in its overall marketing strategy. The company is involved in a wide array of events, primarily centered on action sports. This association with an edgy aspect of popular culture helps to create a strong brand image that people associate with the product. The salient image of Red Bull gives it a significant advantage in the marketplace over other energy drinks. Many other energy drinks have similar ingredients and results, but they lack the strong image that gives Red Bull a definite leg up. The aura of association with Red Bull’s healthy, athletic consumers gives Red Bull a certain cache over more mundane energy drinks and sets them up for further success.