Promotion strategy

Red Bull rolls new style of marketing strategy; television is not tool for Red Bull. They emphasize to penetrate market by using word to communicate as mouth to mouth or promotion strategy is called word-of-mouth or “Buzz-Marketing” Word-of-mouth or “Buzz-Marketing” is key promotion strategy that make brand successful. This means that Red Bull strongly depend on it’s consumers to pass orally on the quality and satisfaction of the product.

It was be claver strategy by businessman “Mr. Dietrich Mateschitz” and as he said that they didn’t take the product to customers but they took customers to the product; who likes their lifestyle, please come to us. They saw that new generations don’t like whoever to press something to them. So they didn’t press product to new generations but he made new generations came to the product by themselves if they have own lifestyle.

Reaching the youth is the great importance of Red Bull. It is promotion jobs that are offered to young ambitious people which are very social and have innovation ideas. They take a big Red Bull around campuses and offer free samples at parties and often try to recruit; their promotion team to people at university, clubs, gyms or sporting events as young and energetic people are found the underlining the image Red Bull aspires. They will act as “alpha bees”. So if they like the product, they will tell other people about it.

I think this claver strategy; it is ripping new marketing strategy that is lifestyle marketing that competitors cannot do it. It is sturdily marketing decision; they have courage about why doing business in the modern time. Also they learn and understand as well about consumer behavior of their target market including Red Bull’s union was built by using global plan that is important for Red Bull too. At least bring Red Bull successful in global market and I am strongly belief that next 50 years, people are being drinking Red Bull. .

Any how red Bull also had been using traditional advertising techniques such as television, print, radio, billboard, magazine ads.

About commercial advertising, the advertisement aimed to strengthen brand identity rather than create brand awareness and impetus that is other key successful of Red Bull’s advertising. Also these medias were understand as reflecting the high value of the product

Example of commercial advertising

Television advertising





About this cartoon ad caused by almost women saw Red Bull was product for men because it was energy drink. So they established advertising as cartoon to mimic oneself. On the other hand they though that cartoon ad had perceive joyfulness but they had to serious about product as new product, new brand, new benefit and new flavor so they had to try to win. These campaign cartoon ad were launch, together with slogan “Red Bull gives you wing” and very successful in next time. In the fact that, these cartoons were intent to strengthen brand identity rather than create interest and impetus including they sum up positioning statement of Red Bull that “Red Bull revitalizes both body and mind”

Print advertising







Red Bull Campaign made Creative Brand Awareness a University Project .RED BULL - Gives You Wings.




New guerilla marketing campaign for “Red Bull Soapbox Race” in Jerusalem, Israel. It is creativity and fun which not to mention in speed and the event is non-motorized vehicle race. They emphasize the creativity of the vehicles, Avraham advertising agency in Israel. They decide to go for guerilla campaign that will bring to attention the audience will see creative cars and not conventional one.

Radio advertising
Red Bull music academy radio



Red Bull music academy radio has three choices for audiences such as show finder, global network and newsletter to visit and listen. Red Bull music academy also has the RBMA Radio Iphone App that auduience can chose to visit and listen quickly.

Billboard advertising






Magazine advertising








The Red Bulletin is a global magazine published each month in eight countries worldwide. It covers the very latest news from the world of Red Bull in an inimitably witty, intelligent and pithy style. The result is a modern lifestyle magazine focusing on sport, people, art and culture designed to break new ground.

Product strategy

Differentiation product strategy

Red Bull is a sweet, caffeinated drink to give customer the high energy. Red Bull has doing simple marketing which the important condition is different product. Also the heart differentiation of Red Bull is that Red bull was based on Japan’s product; it was beneficial and efficient product. Moreover the Red Bull’s name was shown to increased capacity product. Red Bull built up cognized brand, a different product that competitors cannot offer and Red Bull became new category of Soft drinks

All soft drinks is solving hungry but Red Bull is the first soft drink that is very progressive because Red Bull are innovative and creative product for new generation and Rd Bull is New Age Product; it is not only provide basic usefulness but also increased capacity to body. These are proven dozens of times both Europe and America by academic research “Clinical research”; before being allowed to put them side can.

Furthermore Red Bull is only one product of the world that is not provide only fresh to body and mind but also energy, detoxification, stimulating digestion and increased remembrance.

Nowadays Red Bull was produced to sell average 900-1,000 million cans around the world and Red Bull is very popular energy drink and energy drink market leader of the world.


Multi Pack product strategy

In an industry has getting to adapt product size to larger more and more according to value customers because protect level sales. Many marketers believe that a larger product equal greater value and many people will buy it. In contrast red Bull is maintaining product size, but creating multi packs instead. Also Red Bull's opposing argument is more strong business decision rather than a marketing construction and they are strongly leveraging positive brand equity and asking customers "if you want more, buy more". So this is red Bull’s multi-pack strategy.

Red Bull Australia launched 4 packs in energy and sugar-free which was a very success and Red Bull GmbH has now begun to launch 12 packs in various channels. Big W & Kmart are already stocking and the convenience grocery channel is being implemented.

Example of some stats for Red Bull 12 pack:

• #1 selling SKU for Wal-Mart

• #2nd largest SKU in USA grocery convenience (#1 Red Bull 255ml)

• #1 Fastest growing pack in UK convenience

Product line

Red bull is not fashionable brand, so who buy Red Bull is not expect to receive other value except the real quality. So company’s products are not quite more product line; there are only 4 product lines. As the beginning company was set up to market just one product, Red Bull Energy Drink. Since 2003, company has also produced product a low sugar drink, Red Bull Sugarfree as a signal product firm. Now company has to ensure of sales by launching new products Red Bull Cola and Red Bull Energy Shots are maintaining efficiency market and the sales.

Example of product line

Red Bull Energy Drink


Taurine is a necessary amino acid which is naturally occurring in the human body. Taurine acts as an antioxidant and detoxification which it is involved in vital functions of human body. Taurine is also contained in different foodstuffs; for example scallops, fish or poultry and most in baby food.
Glucuronolactone is a carbohydrate which it is involved in detoxification processes, supporting the body in eliminating waste substances from the body. Glucuronolactone is also contained in different foodstuffs such as grain or red wine.
Caffeine helps to improve reaction speed, alertness and concentration. Caffeine also stimulates fat-burning during endurance activities and thereby helps to use fat stores in the body which results in a more efficient supply of energy. Caffeine is contained in many foodstuffs such as coffee tea or chocolate. Red Bull Energy Drink also contains approximately caffeine as a cup of coffee.
B-group vitamins play an important role in energy metabolism such as the build-up and break-down of carbohydrates, fat and protein. B vitamins are also help to support mental and physical performance.


Red Bull Sugarfree


Taurine is a necessary amino acid which is naturally occurring in the human body. Taurine acts as an antioxidant and detoxification which it is involved in vital functions of human body. Taurine is also contained in different foodstuffs; for example scallops, fish or poultry and most in baby food.
Glucuronolactone is a carbohydrate which it is involved in detoxification processes, supporting the body in eliminating waste substances from the body. Glucuronolactone is also contained in different foodstuffs such as grain or red wine.
Caffeine helps to improve reaction speed, alertness and concentration. Caffeine also stimulates fat-burning during endurance activities and thereby helps to use fat stores in the body which results in a more efficient supply of energy. Caffeine is contained in many foodstuffs such as coffee tea or chocolate. Red Bull Energy Drink also contains approximately caffeine as a cup of coffee.
B-group vitamins play an important role in energy metabolism such as the build-up and break-down of carbohydrates, fat and protein. B vitamins are also help to support mental and physical performance.


Red Bull Cola


The cola from Red Bull is a unique blend of ingredients, all from 100 % natural sources. In addition, it is the only cola which contains both the original Kola nut and the Coca leaf. Therefore, it is a very special recipe.
The result is a natural, not-too-sweet cola taste, which comes from using the right plant extracts.
Ingredients
• Coca leaf
• Kola nut
• Lemon/lime
• Clove
• Cinnamon
• Cardamom
• Pine
• Corn mint
• Galangal
• Vanilla
• Ginger
• Mace
• Cocoa
• Liquorice
• Orange
• Mustard seeds


Red Bull Energy Shots


Taurine is a necessary amino acid which is naturally occurring in the human body. Taurine acts as an antioxidant and detoxification which it is involved in vital functions of human body. Taurine is also contained in different foodstuffs; for example scallops, fish or poultry and most in baby food.
Glucuronolactone is a carbohydrate which it is involved in detoxification processes, supporting the body in eliminating waste substances from the body. Glucuronolactone is also contained in different foodstuffs such as grain or red wine.
Caffeine helps to improve reaction speed, alertness and concentration. Caffeine also stimulates fat-burning during endurance activities and thereby helps to use fat stores in the body which results in a more efficient supply of energy. Caffeine is contained in many foodstuffs such as coffee tea or chocolate. Red Bull Energy Drink also contains approximately caffeine as a cup of coffee.
B-group vitamins play an important role in energy metabolism such as the build-up and break-down of carbohydrates, fat and protein. B vitamins are also help to support mental and physical performance.

Branding

Red Bull is well-known for energy drink. Red Bull is functional product that emphasizes to provide different benefit to customers. Company also built up red Bull as revolutionary product; Red Bull is not only providing basic usefulness but also increased capacity such as increased concentration, strength, detoxification, and stimulating digestion. In the same way Red Bull vitalizes both body and mind. Also Red Bull is lifestyle product; it has trendy and innovative drink that plays with customers’ lifestyle and Red Bull now becomes a new category of Soft drinks positioning. Other important Red Bull puts positioning as luxury product, premium price and premium profitability. Although Red Bull price is higher than Coca-Cola and Pepsi, but with quality of Red Bull, customers can accept it as well. Moreover Red Bull has caffeinated as a cup of coffee and original flavor that is a favorite for customers. It has built these things to satisfy customers’ needs. From these messages were built up as brand awareness of Red Bull.

Brand value

Positioning

Red Bull has positioned brand is trendy drink that play with customers' lifestyle which associated the drink with youth culture, extreme and adventure both daytime and nighttime. Including Red Bull is symbol of freedom life that not clings to old traditional society and split traditional life to meets with new excitement, new innovation and novelty which company has putted them to emphasize brand to clear with target group especially young people.

Target group

Red bull is about seeding early markets; they try to look for different market where competitors turn over and their function benefits will make a difference. Different target group of Red Bull is cool people, 15-35 year olds who have own lifestyle such as extreme sport or x-game people. But they are not only cool people. They also penetrate 35-60 year olds who have to use lots of energy such as truck driver and office workers which they have built up brand and put directly positioning with their target group.

Logo

Red Bull’s logo, two crimson bulls in opposing are charging together and a yellow sun is the epitome of kinetic virility and pugnacity; bull is a symbol of power and yellow sun means balance and strength. This brand symbol saw a more light-hearted side. At the same time company established the slogan “Red Bull gives you wing”. They made customers high expectation was Red Bull gives the real energy, quickly moving and more strength. Also who drank Red Bull; they could do everything that they wanted to do. So these phrases were built up as brand awareness and it made customers want to try.

Key successful

Key successful factors of Red Bull there are:

Distribution
As Red Bull’s distribution strategy is go-to-market principle. They are going slowly and deliberately to main markets. They divide each country into individual, autonomous cells. They enter markets by signing non-exclusive deals with larger distributors. Red Bull has taken distribution back and helping to start small distributorships that can focus on their brand. Another important strategy is company focus on conceptual distribution opposed to weighted distribution. In other words, company sees that distribution as a branding too, not just a number of outlets. It likes Gatorade had developed a conceptual approach to distribution by prioritizing “points of sweat” about make sure that Gatorade has been available everywhere athletes are active.

Marketing Mix (Sampling)
Red Bull’s marketing mix is sampling. Sampling is all about quantity, the reach and the experience of a real difference.
Celebrity Sponsorship
Red Bull takes very seriously celebrity endorsements. They dedicated full-time a senior manager to look after celebrities and make sure that they have a great one. Company doesn’t pay for VIP support but the company positions Red Bull as a part of the celebrity lifestyle instead. It is the method of company that celebrity endorsement has a steep price, but gets advertising and pursue those celebrities that are fans of Red Bull, but don’t pay them.

Merchandising
It is Tchotchkes rule of company to keep merchandising out of consumer reach. The idea is for consumers to try hard to get a hold of any Red Bull merchandising and when they do, they will nourish it like a prized possession. And importantly they will tell their friends and acquaintance about their misadventures. Including it is adding to the mythology of the brand.

Network Relationships
They treated stakeholders as partners or are lucky to work for company. Red Bull wants very contact, they have; whether distributor, event planner, owner store or journalist to be a fan of Red Bull and to be blown away by Red Bull’s customer service. While potential distributors, that have been rejected because the company arrogant and contact with supporters of the brand is considered serious. Every stakeholder is treated with respect. For example, Red Bull gets incredible cultural press coverage. They provide extensive photo files and product sampling for journalists. If that isn’t breakthrough enough, consider this: Red Bull does not only treat business partners with respect, but also treat their social network as business- partners to integrate teamwork with sub-cultures into their company model that is Bottom line, Red Bull discovered and appreciates the value of its business and social network as a source of ability.

Corporate Leadership
Company focus on what’s right for brand and the business in the long term. They don’t alter budget at the end of each quarter to make its numbers to manage their brand rather than the stock price. Increasing maximum profit is a company’s highest goal. Company’s goal is about quality of the product and coaching people before start work which they have to use both patience and investment.

Company Background

Red Bull drink was originally developed in Thailand by Bangkok-based TC Pharmaceutical Industry Company Ltd. by Mr. Chaleo Voovidhya in 1962 and sold under the name of Krating Deang (Red Bull).

Krating Deang was brand to compete with Lipovitan from Japan. Krating Deang also dominated Thai people for along time, especially among blue collar workers such as taxis, truck drivers, construction workers and farmer. Krating Deang was hit up on top of energy drink Thai market by below the line marketing strategy. Krating Deang (Red Bull)’ working class image was boosted by sponsorship of Thai’s boxing matches. At the same time, logo of the two red bulls charging each other was displayed.

After Krating Deang (Red Bull) was very successful in Thailand market; in 1982 Krating Deang was transformed into global brand by Mr. Dietrich Mateschitz, an Austrian businessman. Mr. Dietrich Mateschitz had come to Thailand. He drank krating Deang to relieve sickness; he felt like and interested to take Krating Deang to sold at European market

In 1987 Mr. Dietrich Mateschitz worked with TC Pharmaceutical to adept the taste of Krating Daeng for European customers. Subsequently, Mr. Dietrich Mateschitz and Mr. Chaleo Voovidhya Founded Red Bull GmbH in Austria and began to produced and sold in Europe; Mr. Chaleo Voovidhya, Thai owner had 51% of the share while Mr. Dietrich Mateschitz had 49%, together with Mr. Voovidhy’s son with a 2%.

Red Bull GmbH launched new formula Red Bull which is carbonated and not sweet as the original Thai recipe as Austrian version and Austrian formula has taken almost half of the US market for energy drink. Also Chaleo and his son continue to market Red Bull’s original formula into Asia market.

Nowadays Krating Daeng or Red Bull has shown to around the world to accept in 20 years of success. Red Bull GmbH expands market into 108 countries around the world and Red Bull can claim that it is leading energy drink of the world. In 2007 years ago, Red Bull had 9 plants in 7 countries such as Thailand, China, Malaysia, Austria, Switzerland, Indonesia, and Vietnam to distribute worldwide. Also Red Bull GmbH produces a billion cans a year and holds 70 percent share of the global market for energy drinks. Red Bull has become a case study in the United States, United Kingdom and other countries. Marketing is aimed at young people with active lifestyles.

Letter of Invitations for Professional Comments

Dear, My best partner, in all brands

I am manager of Redbull GmbH. This is a great time that I will receive the good advices from all best partners to develop our weakness and increase our strength more and more.

Red Bull is most popular energy drink in the world and is the first Thai brand that can go to global market. Now day, we offers Red Bull nearly 100 countries around the world and receive market share since 65%, 70% until 90%. Today I can say we are the global market leader in energy drink.

Completely, I am as manager would like to say Thank you all customers. Also I would like to use this great time to invite all professional to be part of the big successful of Thai brand via your comments, good ideas, good advices and etc. on my blog. Please feel free to comment your ideas on my blog.

Yours Sincerely
Miss Pronchanok Sirichana
Manager of Redbull GmbH.

Rationale “Why did I choose this brand?”

If speaking to Red Bull, I believe many Thais do not know but if it is Krating Daeng, many Thais will be Ay!!!. Krating Daeng is energy drink that is known and able to dominate Thai people for a long time especially labor groups. But other groups are less to drink because they see that Krating Daeng is a brand for labor group. In the same way, Red Bull is very popular among teenagers in aboard including famous stars like Britney Spears.

So this is the reason that I chose this brand to present to anyone. I want to anyone know in the fact that Krating Daeng or Red bull has interesting marketing strategy and interesting strategy in stepping to global market. Red Bull also is the first Thai brand that can step to global market. Including management concepts of owner of Red Bull Company “Mr. Chaleo Yoovidhya” bring about to successful business and he becomes the world’s top millionaire. I think that it may be very useful for who want to do business. Also I want to present successful of Thai brand and the ability of Thai people not less that other.

Furthermore, I want to learn deeply in Red Bull brand because I believe that Red Bull has many things interesting and ready to relay to everyone to know as expert

my Journal

Week 6:
Week6, Arjan Gob suggested firstly detailed content for mid-term exam and make sure about product strategy details of oneself because this is the main content for mid-term exam. Next was class activity that was useful to all classmate and me. This activity was not only providing knowledge but also enjoy.

For this week, when I knew about mid-term exam, I felt enthusiastic to learn about Red Bull’s product strategy to ready for exam. Also there was class activity that made me excited. My group, everyone had enthusiastic and prepared oneself for role play. I played a role as Movie Company’s big boss. I felt that I had more confident and able to responsible my duty as well and I was very enjoy with special role play.

For good things, I received from class room. I am pleased to say thank you the best teacher “Arjan Gob”. Many time that Arjan Gob make many students shy including me too courage to open mouth to speak English and activity front of the room by way of teacher. So I think that this is the answer of why Arjan Gob is the one or best teacher of the students.