The Great Marketing Strategy On Example Of Red Bull

Company Background

Red Bull GmbH is the famous energy drink brand. Born in 1966. Red Bull's products are mainly supplemented with energy and have been widely promoted worldwide. Red Bull has been operating in brand promotion for a long time and has established brand reputation and influence by sponsoring extreme sports, motorsports and flying sports. The promotion in various countries is quite successful, Red Bull GmbH sold 6.8 billion cans energy drink and it has been sold in more than 170 countries and regions. Forbes (2019) argues the company’s market value at US 9.9 Billion and World's Most Valuable Brands 2019 ranked in 71.

Market situation

Dess, Gregory (2018) pointed out “SWOT analysis a framework for analyzing a company’s internal and external environment and that stands for strengths, weaknesses, opportunities, and threats.”. We can analyze the Red Bull’s market situation based on SWOT analysis.

In Strengths, Red Bull GmbH is a powerful brand in an energy drink. The drink that gives you wings; everyone will know that is Red Bull. The company creates a strong slogan and brand image. Furthermore, Red Bull has long sponsored various sports events and sporting teams, such as skydiving, skateboarding, and Formula One racing team. It is good at using public relations to increase the exposure of its brand and attract that kind of customer.

In weakness, Red Bull GmbH has a limited product line. The company relies on selling energy drinks and it cannot sell other drink products. In addition, compared to other energy drinks on the market, the price is higher than other energy drinks brands.

In Opportunity, the world's two largest emerging markets are Asia and Africa, where consumer incomes are growing rapidly while daily spending is growing rapidly. As consumers become richer, we can expect them to spend more on high-end products such as Red Bull. In addition, office workers and student groups often work late, increasing the market demand for energy drinks. On the other hand, Red Bull build their own image is that it will good performance when drinking Red Bull energy drinks while playing sports, and increase the demand for young people to drink Red Bull energy drinks while playing sports.

In threats, more and more people are pursuing good performance while also pursuing health, and high sugar and high caffeine are affecting consumers' impressions of Red Bull energy drinks, thus affecting the sale of energy drinks. Besides that, there are gradually different competitors in the energy beverage industry, such as Coca Cola's new coca-cola energy and monster.

Promotion Campaign

'Red Bull gives you wings', Many people know this Red Bull drink advertising slogan! Because in the past ten to twenty years, Red Bull has invested a lot of money in various media advertisements, especially television advertisements, no matter Hong Kong or around the world. In addition, Red Bull has always used animation as the theme of brand advertisements. It is very impressive, lively and wild.

Visiting Red Bull's official website, you may intuitively think that this is a website focusing on music or sports events, and it is not easy to see the words promoting energy drinks on it. As mentioned above, we can see many Red Bull logos on helmets, parachute tops, and helicopter fuselage. Red Bull not only sponsors events but also hosts many sports events such as Flugtag, Red Bull 3 Peaks and Red Bull Air-race. Thus, Red Bull creates an image that when you need to be active or improving performance while working, exercising, reading, playing games or fitness, you can drink Red Bull to improve your performance.

Marketing Communication Objectives

In direct objectives, Red Bull GmbH has many brand advertisements for their products. Blattberg and Neslin (1990) argue a sales promotion such as adverting or event will make the direct effect of sales. Red Bull GmbH sold 6.8 billion cans energy drink in 2018, compared with the sales performance in 2017, it has increased by 7.7%. Group turnover increased from € 5.336 billion to € 5.541 billion, an increase of 3.8%.

In indirect objectives, Red Bull GmbH sponsors many extreme sports events and owns a formula 1 race team. The team has made great achievements in the world. By sponsoring certain entertainment, sport, and cultural activities to promote their brand, in order to build the corporate image and increase awareness of Red Bull, to achieve advertising purposes, thereby promoting product sales. In addition, such overwhelming publicity of sports activities will affect the attitude of potential customers. They will feel that drinking red bull energy drinks will improve their sports performance.