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Essay: Red Bull: The Revolutionary Energy Drink That Dominates the Market

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  • Subject area(s): Marketing essays
  • Reading time: 6 minutes
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  • Published: 1 October 2019*
  • File format: Text
  • Words: 1,501 (approx)
  • Number of pages: 7 (approx)

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The Red Bull energy drink was created in 1978. Red Bull is the most alcoholic beverage that is most popular. Red Bull sales increased by 24.3% over the already very successful 2020 year to $9.804 billion globally in 2021. The group’s turnover climbed from EUR 6.307 billion to EUR 7.816 billion, a 23.9% rise. Because of their sponsored marketing strategies, Red Bull has risen to the top of the sector. They offer material in addition to selling the actual products. Sponsorship of events and sporting events has long been a crucial part of their marketing strategy. Red Bull launched the Red Bull Edition range in 2013. Despite competition from other energy drink manufacturers, Red Bull has stuck to its original recipe and packaging. Red Bull has established itself as the name for the group of energy drinks through the creation of a revolutionary product. It will be offered for sale in more than 171 countries globally by the year 2022. Red Bull has employed a variety of tactics, including the Ansoff matrix, the Boston matrix, the Abell matrix, the focus and differentiation model, and others.
Red Bull was inspired by the Thai beverage Krating Daeng, which Chaleo Yoovidhya originally brought to Thailand in 1976. Thai labourers and truck drivers liked it because of how affordable it was. Daeng means red in Thai, while Krating refers to the reddish-brown “gaur,” a bovine that is somewhat bigger than a bison. Dietrich Mateschitz, an entrepreneur from Austria, adapted an existing energy drink’s components and packaging to appeal to Western consumers. Red Bull GmbH was formed in Chakkapong in 1987 in collaboration with Chaleo. The name brand is contrasted in red on the package, which is appealing and eye-catching in blue and silver. Red Bull gives you a surge of energy and is sharp. In 1987, Red Bull became the first energy drink on the market.
Since its debut, Red Bull has been able to seize and hold the lion’s share of the market for energy drinks. A model for athletic and sports event planners would be the association marketing approach used by Red Bull. The “extreme” image the company presents helps it stand out from the competition. Red Bull uses marketing strategies that compel you to watch concerts, cliff diving, and extreme sports.
They present an image that appeals to the entertainment demands of their target market, and they subsequently establish a favourable association between that occasion or production and their offering. They support events including extreme sports and music, setting up their own sales surroundings to draw spectators to the merchandise. You hardly ever see a Red Bull can on their website. Instead of how we sell a product, marketing focuses more on how we locate new customers. Then, new clients develop into loyal users of their goods. The clientele of Red Bull has shown to be incredibly devoted. The high price of Red Bull does not hinder sales.
Customers are willing to pay Red Bull’s high prices because of its high pricing approach. Although there are many energy drinks on the market right now that are less expensive, Red Bull’s market doesn’t seem to be affected by the cheaper prices of other competitors’ replacement goods. Customers of Red Bull are willing to pay more for the energy drink because they believe it to be of good quality.
Products from Red Bull are well-established and consistent on the market. The product has been on the market for so long that one would expect it to be in decline, yet the marketing plan has kept the drink relevant and, after 30 years, it still commands the biggest market share. Convenience and supermarket stores carry Red Bull with ease. The products are presented in the store in distinctive Red Bull cases, and Red Bull controls the distribution networks. Despite the fact that all products eventually go bad, Red Bull has a respectable shelf life of 18 to 24 months after production. There is typically more than enough stock. In order to reduce the cost of fuel and delivery, the distribution channels are carefully planned and well-stocked. The marketing initiatives for Red Bull are distinct from conventional marketing campaigns for comparable goods. The life cycle stages of efficacy, as well as their structure, function, and concentration, are novel and inventive. Usually, promotion loses its effectiveness as a person matures.
Although Red Bull’s product is fully developed, the marketing campaign revolves around a constant stream of new events, and its success is unrelated to the product’s development. Even after the product reaches a certain maturity level, it can still be continuously promoted to increase sales.

Red Bull’s distinctiveness means that price sensitivity is not a key factor in its business decisions. Customers are devoted and connect the brand with excellence. Additionally, the price may be prohibitive for those in lower social classes, classifying the goods as belonging to a higher socioeconomic group. Although the business does offer four and twelve-packs as a bulk option, there are typically just minor price reductions or discounts available.
In order to compete effectively, Red Bull concentrates on a small number of market categories. Red Bull targets thrill-seekers, especially busy workers and college students. 18 to 34 years old is the target age group for this population. All things considered, though, Red Bull’s main target market consists of individuals who have a voracious hunger for high-stakes activities. Sports, academics, and social events are among the focus areas of Red Bull. Red Bull is consumed by 32% of respondents while they are engaging in sports, 36% of respondents while participating in the study, and 20% of respondents while at a party.
Red Bull’s media strategy is best summed up by its “Energetic and Dynamic” market positioning. Red Bull uses marketing techniques that you would often associate with organisations that promote events and sports. They organise and support events that specific market segments can attend, after which they successfully link their goods to the preferences of their intended clients. More so than a commodity, they are selling a lifestyle and a personality.
In 2012, the US market continued to dominate Red Bull’s sales. Despite fierce competition from newer competitors in most of its key areas, the corporation has been able to hold onto the top spot in volume terms. The company’s premium positioning has allowed its rating to remain more stable in terms of value. This premium focus will put increasing pressure on Red Bull’s market share as the dynamics of anticipated demand shift to emerging nations, where consumers continue to be more price sensitive. Through distribution partnerships like TCCC/Monster and PepsiCo/Rockstar as well as their respective directly owned brands, Burn and Sting, TCCC and PepsiCo have emerged as the company’s two biggest rivals.
To provide free drinks to college students, Red Bull used “Red Bull Girls” sales soared as a result of this strategy’s astounding success. Grab a Red Bull to help you stay focused all night long while you’re studying for that test. The energy drink sector was completely new to the global F&B industry thanks to Red Bull’s explosive popularity.
The Ansoff matrix (product market expansion grid) is a strategic planning that provides a framework to support executives, senior managers, and marketers in developing strategies for future growth. The concept was devised by applied mathematician and business manager Igor Ansoff, a Russian-American.
The four strategies of Ansoff Matrix are:
In the age ranges of 14 to 19 and 20 to 29 years old, Red Bull attained considerable market penetration. Red Bull showed to be well-liked for social gatherings; 32% of those surveyed claimed to consume it at night in pubs and bars, and 13% said it was their preferred beverage at that time.
Red Bull developed new 16 products like Red Bull green edition, Red Bull yellow edition, Red Bull zero, Red Bull sugarfree, Red Bull Red edition, Red Bull summer edition, Red Bull Purple edition, etc in their existing markets.
Red Bull was first created in Austria but has since spread to 171 nations worldwide. Red Bull is universally appealing, even though diverse civilizations have a vast range of distinct tastes, preferences, and attitudes. They are addressing a younger generation that is more accustomed to dealing with international organisations, digital media, and shared interests. Young adults from many cultures are drawn to peer socialisation. The young can understand the language of excitement and energy.

Instead of sticking to just selling energy beverages, Red Bull is expanding into other industries. It has been expanding recently and becoming a media enterprise unto itself. The corporation can engage with a worldwide brand that is passionate and exciting by taking part in sporting sponsorships and events. The company established the Carpe Diem brand to capitalise on the health and wellness trend in soft drinks, and it is also available in RTD tea and bottled water. A high-end RTD tea market in Western Europe is called Carpe Diem Kombucha.

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