red bull musketeer case study

The Ultimate Red Bull Marketing Strategy Study

Table of contents.

Red Bull has grown from a simple energy drink manufacturer to one of the most recognized brands in the world. It has become synonymous with sports, extreme performance, and victory. Red Bull is the extreme athlete of marketing, literally and figuratively.

A few key statistics and facts about Red Bull:

• Number of Red Bull cans sold worldwide in 2022: 11.582 billion
• Revenue of €9.68 billion
• Red Bull's marketing budget for 2022 is estimated to be €2,9 billion (it is rumored to be around 25-30% of the yearly revenue)
• Red Bull sponsors athletes in 73 countries around the world .
• Number of employees in 2022: 15,779
• The logo is a breed of cattle called gaur.

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Red Bull History

Styrian success-makers.

The reasons for Mateschitz's conservatism lie in his family background. He grew up in modest circumstances in the upper Murgtal in Styria. His outstanding success is not an isolated case in this province. Arnold Schwar is a compatriot, as is the tennis player Thomas Muster, who for a time topped the world rankings ahead of Boris Becker, André Agassi, and Pete Sampras.

He is also a compatriot of Frank Stronach, who emigrated to Canada as a worker and returned to his homeland as a co-owner of the global auto parts manufacturer Magna. Styrians are said to have always been a bit their boss. Stubborn but not rebellious, strong, and persevering. Dietrich Mateschitz, who has been friends with half of Austria since his success and is nicknamed "Didi," has needed perseverance for his story to become a real success.

From jetlag to energy drinks

In 1976, Chaleo Yoovidhya introduced his Krating Daeng drink in Thailand. The name means "red gaur" in English. The maker was inspired by the energy drink Lipovitan, in which the main ingredient is taurine, and was popular with Thai truck drivers and blue-collar manual laborers.

When he visited Thailand in 1982, the Austrian-born Dietrich Mateschitz discovered that by consuming Krating Daeng, he was able to overcome the effects of jet lag, caused by the rapid change of time zones, much more quickly during the trip. Since the energy drink phenomenon was still unknown on the Old Continent, he was astonished at how many people consume the product, and almost immediately approached the owners of the company with the idea of bringing it there.

Mateschitz had been the international marketing manager for Blendax (now part of the Procter & Gamble Group) toothpaste at the time. The Yoovidhya family, which had already become rich through the pharmaceutical industry, welcomed the idea and began to develop a European business policy and strategy with the Austrian marketing expert.

Mateschitz founded Red Bull GmbH with Yoovidhya in 1984 intending to develop it into a global brand. Both parties invested $500,000, however, Yoovidhya and Mateschitz owned only 49-49% of the shares in the new company. The remaining 2 percent of the shares went to Yoovidhya's son Chalerm, but the agreement left Mateschitz as the de facto head of the company.

Product launch in Austria

The product was first launched in Austria in 1987. Mateschitz, still a bachelor at 39, has quit his lucrative multinational job and has been trying to introduce the Asian recipe to Austria for two or three years. The new product, the unusual flavors, the colors, the advertising are not the resounding success he had hoped for. After the initial setbacks, Dietrich Mateschitz does what he has never done before - he takes out a loan. The reason for his reluctance is simple: he was raised at home to believe that "a decent person does not have debts," and like many entrepreneurs, he still does not like financial institutions.

The startup’s growth has almost immediately slowed down because several well-known Austrian beverage companies considered the revolutionary idea too risky and refused to partner with Red Bull. The food authority was also not a fan of Red Bull, considered it dangerous, and banned its marketing in many places - but Mateschitz was not discouraged. Dietrich Mateschitz cites the three most difficult years of his life as the early days of Red Bull.

Being an experienced manager, he refused to lower the price of the not exactly cheap beverage. He is vigilant about consumer behavior. The highly stimulating product was finally a hit in Austrian discotheques. It was tempting to dance the night away. Word of the new wonder “drug” spread quickly across the border. However, on the German side, Red Bull was still not allowed to be marketed. It was banned for a time in Hungary, France, and Denmark because of what they consider to be its high caffeine and taurine content. It is the desire for the forbidden fruit that has brought the real breakthrough. Consumers "smuggle" a bootleg number of Red Bulls across the then non-EU Salzburg border crossing into Bavaria, where it is sold in nightclubs in violation of the law. From then on, the triumphal procession is unstoppable. And during this time, the custom of mixing it with vodka also arises.

Germany and the United Kingdom were introduced to Red Bull in 1994 after the company’s expansion in Eastern and Central Europe. It was able to win a 75 percent market share on the American energy drinks market despite the slow start and late expansion to the US in 1997.

In the process, Red Bull has also garnered some criticism for its use of extreme sports marketing and its impact on health. Due to this, the European Food Safety Authority (EFSA) and other food regulatory agencies have limited the levels of caffeine, taurine, and glucuronolactone in Red Bull and other energy drinks.

Key takeaways:

A serendipitous meeting between the Austrian and Thai founders of Red Bull was quickly followed by the realization of an excellent business opportunity and action. The recipe was ready - even if it still needed to be refined for European tastes - and the parties focused on market development strategies, sales, and marketing activities.

Still, launching the product in Austria was not a success, and many founders would have given up at this point. But Mateschitz kept his eyes open and recognized what the sales drivers would be in the early days.

• Word-of-mouth marketing,
• The feeling of uniqueness (energy drinks were not yet known to the European public),
• A stronger effect than coffee, which, mixed with alcohol, stimulated parties in Eastern Europe as a non-addictive and non-consciousness-altering substance,
• The progressive association of the brand with sports, in addition to nightlife.

Together, these elements have served to build Red Bull's success on an increasingly efficient and planned business foundation.

The Products

The product portfolio of the company.

Three of Red Bull's products are core products that are sold in all relevant markets, regardless of culture or target group:

• Red Bull energy drink: the familiar gray-blue metal can that comes in a 250 ml edition. In some countries, it is also available in a 350 ml and a 500 ml version.
• Sugar-free Red Bull: Instead of sugar from sugar beets, the company uses aspartame, sucralose, and acesulfame K to sweeten the product. The product's other ingredients and packaging are the same as the original energy drink.
• Red Bull Zero Sugar. The Zero and sugar-free variants differ little in terms of content. According to the company, the only difference is the taste.

However, there have also been numerous drinks that have been launched in limited quantities or connected with specific sporting events. These include The Tropical Edition, The Coconut Edition, The Red Edition, and The Summer Edition, currently available in four flavors. However, Red Bull not only limits the time of availability but also sells specific, localized products for the largest markets. For example, ORGANICS by Red Bull, which is only available in German, is not an energy drink but a soft drink that comes in six flavors. These include cola, tonic, and ginger drinks.

Red Bull cans are 100% recyclable. In addition, with only one manufacturing location, 80% of renewable resources are saved rather than using multiple ones.

Product localization

Almost all of the markets in APAC are served by Red Bull, and the company uses local development strategies to cater to consumer tastes in each market. Red Bull markets in the APAC region curate their product portfolios, and it takes a lot of time for each market to develop the most appropriate product selections. Local and center teams are continuously reviewing the portfolio of products to ensure that the energy, taste, and size requirements are met. Though the original blue and silver Red Bull Energy Drink is still a popular beverage, Red Bull is also interested in creating new products to match the changing tastes of the market.

Red Bull Editions are a seasonal range of localized products. To give an example, Red Bull has a Coconut edition in Singapore that includes coconut and blueberry flavors; in Australia, there are Orange editions (orange flavors), Tropical editions (tropical fruit flavors), and Red editions (watermelon flavors).

Each Red Bull market has a local team that interprets the meaning of the products to ensure they are relevant to the target customers. There is room for growth in the energy drink market through premiumization, even though the market is well established.

Manufacturing

A new Red Bull production facility is being built in Glendale, Arizona. A joint venture between Red Bull, Rauch Fruit Juices, and Ball Corporation, RRB Beverage Operating, is investing USD 250 million in the next few years to build a new 700,000 sq ft-sized facility. Originally, the company planned to start manufacturing in 2021, employing 140 people in the process. There is no news available on how COVID-19 has modified the plans.

Instead of keeping the production process in-house, RB outsourced it to Rauch. Among other beverages, it produces Red Bull's drinks in Nüziders, Austria, and Wildenau, Switzerland. It is only 40 kilometers between the two production facilities despite being in different countries.

It was previously made at a Swiss plant and imported to the U.S., but the company's growing popularity in North America and a threat to taxing cans and products imported from Europe, in general, led to the investment.

One of the joint venture partners, the Ball Corporation, which specializes in the production of aluminum and steel packaging for the food and beverage industry, opened an aluminum can manufacturing plant in Goodyear, Arizona in 2019, not far from the new project site in Glendale.

Sales channels

As a manufacturer of soft drinks, Red Bull does not market its products itself but distributes them to restaurants and stores via Red Bull-owned distribution companies. One such company is Red Bull Distribution Company , which is responsible for distribution in North America. The Group currently employs around 6,000 sales staff who distribute its products in 170 countries around the world.

The sales employees directly involved in the sales process are usually field sales representatives. They cover a predetermined territory by driving around and replenishing products from Red Bull in restaurants and convenience stores. They are also responsible for ensuring that the energy drinks are in the right, highly visible places on the shelves and that the company logos get the attention they deserve.

Of course, the larger chains and online beverage stores are already negotiating directly with distributors. The company's sales activities are rounded off by various corporate purchases.

Beverage retailers in particular tend to offer their customers a diversified product portfolio to generate more sales so that they can not only order a specific beverage but also upsell it. This involves offering additional options (both products and services) to a customer who has already been won over, which can then be sold at a much higher profit because there is no need to advertise and approach the customer again. In contrast, Red Bull has opted for a narrow product range - for a long time, there was only one type of energy drink and one flavor. Today, that range has broadened, but there are still many subsectors (e.g., alcohols, premium products) where there is room for further expansion.

Red Bull works with several international and local distributors, typically owned by RB. Sales are always B2B, with restaurants, small and large grocery stores, and corporate customers on the other side.

The Red Bull Brand

The Red bull brand stands out as a category dominating queen holding 42% of the global energy drink market in 2020. Second comes Monster with a 39% market share.

Company culture

The vision statement of Red Bull is “(The company) is 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.” (Source: redbull.com)

According to reviews on Indeed and Comparably , Red Bull is successful not only in building an outward-facing brand but also in creating a high-quality corporate culture. Typical feedback praises the internal social life, work environment, and highlights internal development opportunities. However, as in any other organization, those who work under a poorly performing manager are understandably dissatisfied with management skills, work-life balance, and supervisor availability.

Can of innovation: a branding move

The can became the symbol for Red Bull, even though it has been commonly used among beverage manufacturers. There is, however, a significant difference: instead of the usual 330 ml can, which is a bit chunkier, Red Bull has introduced the 250 ml sized container, which is thinner and taller than usual. There are two reasons for this: the unique appearance makes the product stand out from the competition, and it explains why Red Bull is much more expensive than the usual packaged drinks.

Red Bull’s target market: for those who need energy

Red Bull’s target market is young people between the age of 15 and 45 with high income. The company segments its target market even further offering as the main benefit a sense of belonging and enhanced physical and mental performance.

Matschitz explained the failure of Red Bull's first consumer test by claiming that such products only succeed in their intended environment. In sterile laboratories, no one needs extra energy, so Red Bull could not be treated at its true value. The moment the drink was introduced into gyms, parties, and bars, or even boardrooms, the rejection stopped, because the product found its right target audience.

Red Bull’s logo and design over the years

The energy drink was originally created for Muay Thai fighters and blue-collar workers in Thailand. A logo where two red bulls were readying to fight and the bright yellow sun rising behind them is typical for the APAC region. The only direct change was the “Red Bull” inscription written in bold, English font.

The Red Bull logo did not change significantly over the years. What makes the story special is that Mateschitz's marketing background allowed the team to spend extra time finding the right design. However, both the logo and the name and colors scored poorly on focus-group questionnaires. Nevertheless, the owners stuck to their original vision and did not change the design "rescued" from Thailand. Time has proven them right.

Red Bull brands and subsidiaries

Red Bull Racing

AKA Red Bull AKA RBR AKA Oracle Red Bull Racing is a Formula 1 racing team. The team won the 2021 championship with its driver Max Verstappen.

Scuderia AlphaTauri

AKA AlphaTauri is the second Formula One racing team of Red Bull. Originally the company’s junior team, today its considered to be the sister team of Oracle Red Bull Racing.

New York Red Bulls & New York Red Bulls II

The company’s two American professional soccer teams. The first participates in the Major league and the second in the second tier league.

FC Red Bull Salzburg

AKA FC Salzburg, the company’s Austrian professional football club. Red Bull bought the club in 2015 and changed its colors, a move that its fans found controversial.

FC Liefering

Red Bull's second league Austrian football club.

The German professional football club nicknamed Die Roten Bullen. The company bought the team in 2009 and in less than 9 years took it from the fifth tier league to the top-flight Bundesliga.

Red Bull Brasil & Red Bull Bragantino

The two Brazilian football clubs whose teams compete in the second and top tier of São Paulo state football league respectively.

EHC München & EC Red Bull Salzburg

Red bull’s ice hockey teams. The first competes at the highest level of professional German ice hockey. And the second competes in Austria’s top-tier ice hockey league.

Red Bull Records

It’s Red Bull’s global record label focusing on more niche genres like rock, alternative rock, punk rock and hip hop with bands like Awolnation, Twin Atlantic, and Beartooth.

The example of Mateschitz is rather the exception that proves the rule because his decisions - especially in the early years - were always at odds with business logic and common sense. The launch of the energy drink Red Bull in Europe was prepared through a series of processes: Testing the product, obtaining food safety and market approvals, market research as part of the launch. In the end, there were almost no areas left to support the owners' ideas, as neither the food authority nor market research considered energy drinks to be a good product.

Mateschitz, however, stubbornly stuck to his original ideas and, adapting some of the intellectual property brought from Thailand to European tastes, practically single-handedly created a youthful, trendy and energetic brand Red Bull.

Red Bull Marketing Strategy - Sponsoring Sports, Athletes And Events

Red Bull global marketing strategy focuses, but it’s not limited to, sponsorships of extreme sports, athletes and events of every scale, from local to global.

The company generates massive awareness with its presence in unique first-ever events like Felix Baumgartner parachute jump and in major regular events like the Volcom Pipe Pro and the Freeride world tour.

Red Bull’s marketing strategy, however, includes more traditional marketing practices and channels like TV commercials and social media with millions of followers across its Facebook, Instagram, Twitter, LinkedIn, and Youtube tens of accounts. It runs ads across every channel, trying to appear in front of its target audience everywhere it goes.

Red Bull marketing budget

A question on a lot of people's minds is how much does red bull spend on marketing?  Unfortunately, Red Bull does not share its marketing budget, but it is rumored to be around 25% of the yearly revenue. So whilst we can only guesstimate what it spends, one thing we know is that it's a lot of money and a very important focus for Red Bull.

When the product becomes the means of Red Bull advertising

Sponsored stars are today's flesh-and-blood heroes: athletes, drivers, Formula 1 racers, and extreme athletes who stand for real achievement.

In addition to financial support, the stars receive equipment, clothing, and accessories with the Red Bull logo. And of course their advertised product, energy drinks in the required quantity. Red Bull's branded merchandise is particularly valuable because, unlike many beverage competitors, the company does not mass-produce merchandise - it is available only in the inner circle. 

The international marketing activities of Red Bull are aimed primarily at young people who are attracted to and like extreme sports. The range of extreme sports targeted is very broad and includes:

• Mountain biking
• Snowboarding
• Skateboarding
• Wakeboarding
• Cliff jumping
• Ice skating
• Freestyle motocross
• Break dancing.

Red Bull also uses music and  video games  for marketing purposes and has brought in celebrities like Eminem (through its support of the Red Bull "EmSee Battle Rap championships").

Red Bull is also known for its events, including music and art conventions. In Hungary, the company launched Red Bull Pilvaker in 2012, one of the country's most unique music and cultural projects, which commemorated the 1848 Revolution and the War of Independence with the help of outstanding contemporary art artists. The popularity of Red Bull Pilvaker is reflected in the fact that in recent years all tickets for performances at Erkel Theater, which seats almost 2,000 people, were sold out within a few days.

Red Bull also maintains soccer teams in Austria, Germany, the United States, and Brazil - these teams also carry the brand name, Red Bull. By associating the energy drink with these activities, the company aims to reinforce the "cool" image of the product and thus the strength of the brand. The energy drink has also created a market for over 150 additional souvenir items.

On the PlayStation 3 community platform PlayStation Home, Red Bull created a dedicated in-game island in 2009 to specifically promote the energy drink Red Bull and the racing series Red Bull Air Race. In January 2012, Red Bull also opened its first personal community area, the " Red Bull House of Skate," which featured an indoor skating rink for visitors.

Red Bull's sports sponsorship activities focus on supporting talented young athletes and helping them achieve their goals. The Red Bull Junior program in motorsports is the most prominent branch of this, but the company follows this philosophy in its support for athletes, regardless of the sport. Sebastian Vettel, Daniel Ricciardo, and Danyiil Kvjat are among the most prominent students of the Red Bull Junior program.

Formula One Red Bull Racing

Red Bull Racing is the Austrian Formula 1 team owned by the energy drink company Red Bull. The company's other team is Scuderia Toro Rosso (later Scuderia AlphaTauri).

The team's direct predecessor is the Stewart Grand Prix, founded in 1997 by Jackie Stewart. In late 1999, it was sold to the Ford Motor Company, which raced it under the name Jaguar Racing. In 2004, Ford decided to sell the unsuccessful but costly team. It was bought by Dietrich Mateschitz, owner of the energy drink company Red Bull. The team was then able to take to the grid at the 2005 Australian Grand Prix as the successor to Jaguar, now in the blue and silver colors of Red Bull energy drinks.

Red Bull was no stranger to motorsport's premier class, having previously sponsored Sauber, Arrows, and its predecessor Jaguar. Having started its own team, Red Bull naturally terminated its contract with Sauber (the Arrows had already ceased to exist in 2002). The drinks company has also appeared in the Formula 3000 series and its successor, GP2, and has a European talent scouting program called Red Bull Junior Team. Later Formula 1 drivers have also emerged from the program, with Enrique Bernoldi, Christian Klien, Patrick Friesacher, Vitantonio Liuzzi, and Scott Speed all having raced in the premier class.

RBR enjoyed immediate success in its first season in 2005, thanks to two of its drivers, Coulthard and Klien. The 2005 Red Bull RB1 was based on the already papered Jaguar R6. The team used the weakest Cosworth engines and Michelin tyres throughout the season. The team exceeded expectations to finish seventh among constructors with 34 points.

For the 2006 season, Red Bull Racing changed engine suppliers and used Ferrari V8 power units for the season. Adrian Newey, who was signed from McLaren in November 2005, was appointed as chief designer. Newey did not play a major role in the design of the RB2, which was almost complete by then, and instead started work on the 2007 model. By 2007, the Adrian Newey-designed RB3 was finally completed, with the Renault engine replacing Ferrari's. Mid-season saw the arrival of Geoff Willis, who had worked as technical director at Williams and BAR and then at Honda. Following the departure of Michelin, Red Bull Racing naturally started on Bridgestone tyres. On the racing front, David Coulthard remained with the team, while Mark Webber took the other seat. Webber left the predecessor Jaguar after 2004 and joined the energy drinkers after two disappointing seasons at Williams. The team finished 5th in the constructors' championship with McLaren eliminated and 24 points, David Coulthard 10th with 14 points, and Mark Webber 12th with 10 points.

For 2009, the retiring David Coulthard was replaced by Sebastian Vettel from Toro Rosso, while Mark Webber remained with the team. The team ended the year with a double victory at the Abu Dhabi Grand Prix. Vettel finished second in the individual championship with 84 points, 11 behind world champion Button. The team finished second in the constructors' championship, 18.5 points behind Brawn GP. From 2010-13, RBR enjoyed a truly golden era, its World Championship victories making it unchallenged.

The 2014-20 Formula 1 era brought less success for Red Bull (regularly replaced by Mercedes in first place), but remained a worthy rival to Ferrari. In the 2021 season, with a Honda engine, they continue to pile on the surprises, and their fans are predicting the resurrection of RBR in an ever-strengthening F1 team.

Red Bull Ring ‍

The Red Bull Ring (originally called Österreichring, between 1997 and 2003 A1-Ring) is an Austrian race track in Styria. The circuit itself is located in the territory of the municipality of Spielberg, but its access roads are in the immediate vicinity of the municipality of Zeltweg, which is why it is often referred to as the "Zeltweg circuit". The track was renovated in 2011 with financial support from the energy drink manufacturer Red Bull to make it suitable for Formula 1 again and will be back on the calendar for the 2014 season.

Red Bull Racing has won at its home track four times since its inception.

Red Bull sponsoring other sports

• In 2006, Red Bull announced they would sponsor the NASCAR Team Red Bull. Lowe's Motor Speedway was their first stop in the Nextel Cup Series. The team was shut down in December 2011 and its assets were acquired by BK Racing.
• A major sponsor of Repsol Honda, Red Bull is the title sponsor of Red Bull KTM Factory Racing and Red Bull Honda World Superbike Team.
• Football has also been a huge part of the company's activities. The Austrian club SV Austria Salzburg was purchased by Red Bull on 6 April 2005, and it was renamed Red Bull Salzburg, a move that has been heavily criticized by supporters' groups in Austria and across Europe. FC Liefering has also been purchased as Salzburg's feeder club.
• Since 2000, the company has owned the Salzburg team in the Austrian Hockey League, now named Red Bull Salzburg. Throughout 2012 and 2013, Red Bull became the team's title sponsor and then bought the club outright.
• A new League of Legends team was formed by Red Bull in 2017, Red Bulls, which competed in the European League of Legends Challenger Series from 2017 until it folded in 2018. Several Red Bull sponsored fighting game players to compete in Tekken and Street Fighter games, as well as The International winner OG, who competes in Dota 2.

Felix Baumgartner parachute jump from space

Baumgartner and his team saw a mission in the world record attempt, for which the athlete had been preparing since 2005. The jump offered the opportunity to collect data to improve life-saving for astronauts and pilots or potential space tourists and to study the behavior of the human body in the stratosphere. It is critical to make the return from space safe for space crews, as they may have to eject from the aircraft and it is life-threatening to enter the stratosphere in an unprepared space suit in such an emergency.

The first record attempt was scheduled for Oct. 9, 2012, at 11:42 a.m. local time, but a strong wind prevented the 834,497-cubic-meter balloon from inflating safely, as it was twisted by the wind. Wind gusts of up to 40 km/h were measured at the top of the balloon, although the wind speed was not supposed to exceed 5 km/h.

The next attempt was therefore postponed until Sunday, October 14 - a postponement that tested everyone's patience but was the only way to ensure safety. At the press conference after the jump, FAI record holder Brian Utleya announced that Baumgartner had reached a speed of 1342.8 kilometers per hour (Mach 1.24), breaking the speed of sound. The pilot came down from a height of 39,045 meters in 4 minutes and 20 seconds, covering 36,529 meters in freefall.

Red Bull, like Ferrari , has found in sports the marketing platform that best reaches its audience. However, the company has not limited its sponsorship activities to motorsports but supports all sports from ice hockey to extreme sports. The company invests most of its marketing budget in financing the Red Bull Racing Formula 1 team and maintaining the racetrack at the Red Bull Ring.

Red Bull also supports music as a nightlife player and various events aimed at partygoers.

Final thoughts and key takeaways of Red Bull’s story

Who owns red bull today.

Red Bull GmbH is a private company with its headquarters in Salzburg, Austria. Two billionaires own Red bull:

• Thai businessman  Chalerm Yoovidhya,  who owns the majority of the company sitting at 51%. His net worth as of 2021 is estimated at $24.5 billion.
• Austrian businessman  Dietrich Mateschitz,  who owns 49% of the rest of the company. His net worth as of 2022 is estimated at $26 billion.

Growth by numbers

According to Forbes , the brand that gives you wings sold 6.8 billion cans in 171 countries in 2018. Among the fastest-growing markets were India (+30%), Brazil (+22%), and Eastern Europe (+22%). Using a marketing strategy built around extreme events, Red Bull has sold a total of 75 billion cans since 1987.

Key takeaways from Red Bull's story:

• The founders’ agility: Red Bull would certainly not look the way it does today if the founders - a Thai pharmaceutical entrepreneur and an Austrian marketing manager - had not had a clear vision for the brand right from the start.
• Product portfolio: The soft drinks market is characterized by the dominance of aggregators (e.g. Coca Cola, which contrary to popular belief does not only produce Coke). To counter this trend, Red Bull has from the beginning thought in terms of a small product portfolio and focused on the energy drink market rather than a diversified range. It was not an easy task, as it was a pioneer in the field at the time of its launch - no other energy drink existed in Europe. The company invested a lot of energy in educating the market, which at first did not welcome this unique product, but now it has become an integral part of it.
• Marketing : Instead of investing millions of dollars in television, radio, and Internet advertising, Red Bull took a different approach from the beginning. Although it was initially forced to do so because many countries did not officially license the energy drink, word of mouth is still the strongest element in the company's marketing. The founders succeeded by identifying the two areas where there was a real need for energy drinks and focusing all marketing activities on them.
• Sponsorship : Red Bull quickly found its audience among athletes as well as party-goers, so it's no wonder that the company turned to sports sponsorships. One of Red Bull's main marketing weapons has been its own Formula 1 team, as well as sponsorship of a number of ball and extreme sports.

The companies more than 30-year history is a powerful story of challenges, of working against the wind, of the founders' strong vision, of defying business logic, and of perseverance. Even though the Austrian entrepreneur Dietrich Mateschitz has made countless decisions that would not have worked for others and that go against everything that business can teach us, the success of his company is beyond question.

If there is anything we can learn from him, it is surely his belief in his team and his own instinct to put an unknown product on the world map. Red Bull now inspires millions of people a year, its sales are skyrocketing (based on the sales statistics, every person on earth could drink one Red Bull), and its marketing efforts are leading the way for many other companies in the industry.

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How Red Bull Creates Brand Buzz

• David Aaker

The value of creative, edgy, and on-brand sponsorships.

On Sunday October 14, Felix Baumgartner rose more than 24 miles above the New Mexico desert in the 55-story ultra-thin helium “ Red Bull Stratos ” balloon, jumped off, and reached 830 mph during a 9 minute fall, setting records for both the height of the jump and the speed of descent. It was a Red Bull event and about 8 million of us watched it as it was happening. The post-event pictures on Facebook got nearly 216,000 likes and 30,000 shares in less than 40 minutes, and another 32 million-plus have seen the YouTube account since.

• DA David Aaker is Professor Emeritus at UC Berkeley and the vice chairman of Prophet

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Please note you do not have access to teaching notes, red bull (abridged).

Publication date: 20 January 2017

Teaching notes

This case (an abridged version of UVA-M-0663) describes the history of the Red Bull brand and how the company stimulated and harnessed word of mouth to build a new product category (functional energy drinks) and brand franchise. The case concludes by asking the reader to consider where Red Bull will take its brand, product line, and marketing next, in light of many competitive challenges in the United States. The case was written to foster discussion of nontraditional brand-building strategies and the growing globalization of brands and products targeted toward younger consumers.

Johnson, R.R. , Mitchell, J. , Farris, P.W. and Shames, E. (2017), "Red Bull (Abridged)", . https://doi.org/10.1108/case.darden.2016.000256

University of Virginia Darden School Foundation

Copyright © 2013 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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By: Richard Johnson, Paul W. Farris, Jordan Mitchell

This case describes the history of the Red Bull brand and how the company stimulated and harnessed word-of-mouth to build a new product category (functional energy drinks) and brand franchise. The…

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• Publication Date: Jan 13, 2003
• Discipline: Marketing
• Product #: UV2928-PDF-ENG

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This case describes the history of the Red Bull brand and how the company stimulated and harnessed word-of-mouth to build a new product category (functional energy drinks) and brand franchise. The case concludes by asking the reader to consider how Red Bull should react to competitive challenges in the United States. The case was written to foster discussion of nontraditional brand-building strategies and the growing globalization of brands and products targeted toward younger consumers.

Jan 13, 2003 (Revised: Apr 14, 2016)

Discipline:

Industries:

Beverage industry, Food industry

Darden School of Business

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Red Bull Marketing Strategy: The Case Study

Red Bull is an invincible marketing powerhouse.

When it comes to its marketing strategy, the brand takes great care of everything they do.

However, their marketing efforts always put the audience first.

In fact, their product sales are second to none.

Although Red Bull is active on multiple channels and uses many different strategies, they all revolve around the same concept: creating content and experiences that appeal to people regardless of the energy drink brand. 

Like major publishers, they have become one of the most talked-about brands in the world, producing content, providing mind-blowing programs, and much more.

Table of Contents

Red Bull Company: A Brief History

When the Austrian toothpaste seller Dietrich Mateschitz arrived in Thailand in 1987, Red Bull first heard of the “ energy tonic ” created by Chelio Yovidya. The tonic was thought to help keep drinkers awake and alert.

After three years of testing, Red Bull was launched in Austria, but two businessmen are skeptical. “There is no demand for such a drink in the market,” he said. No one is likely to try. But they were wrong

Today Red Bull dominated 2015 with a 43% market share . The best part? They are still going strong. Considering that Red Bull has kept the market in the first place, it is not bad to dominate almost half of it after almost three decades.

Here, is the infographic showing the growth of the Red Bull brand:

The Case Study of Red Bull’s unconventional marketing strategy

When the Red Bull first appeared, there were no energy drinks and traditional advertising was expensive.

Therefore, the Red Bull became a rookie and chose a different strategy.

What did he actually do?

They went straight to their target audience (men between the ages of 18 and 35) at college parties, libraries, cafes, bars, and other places.

They put the product in the hands of consumers by bringing free samples to the public.

It talked to people promoting its product for free.

They still use the same strategy: wherever they go, they go.

That means sponsoring a music festival or creating the most cultural content, they do.

In fact, the content that Red Bull publishes is displayed on a par with a professional publishing house. They are a media company intended to effectively sell energy drinks, not the other way around.

What is the best way to dominate the market?

Create one that does not yet exist.

This is exactly what happened to Red Bull Energy Drinks 30 years ago.

Thanks to smart marketing and creative strategy, they have been at the top for three decades.

How does Red Bull incorporate a content marketing strategy?

The elements of the Red Bull do exceptionally three things.

• First , it covers topics that interest its audience. Extreme sports, music festivals, and concerts are just some of the topics covered on the Red Bull website. Imagine being able to (or necessarily) enjoy Red Bull wherever you see it and its content covering it.
• Second , it is their ability to sell their brand, but not to push their product. Their content is focused not only on Red Bull sales but also on the pleasure of the readers. In turn, audiences begin to associate their product with the content they want to consume .
• Third , it delivers videos, blog posts, landing pages , and other types of content on the same professional level as the media sites where your target audience uses the content.

Take this video for example. It is packed with ingredients that anyone who loves high-energy, high-impact, and extreme aerobics will appreciate:

How will Red Bull reach its target market?

Red Bull focuses on three important tips for attracting its target audience:

Excellent Content Delivery: The content created by Red Bull’s marketing team is on par with other major media, allowing viewers to access the content.

Massive advertising stunts: Red Bull takes “ Go Big or Go Home ” to the next level by performing massive stunts to freeze everyone and see what happens.

Sponsorship or Event Creation: Red Bull showcases its marketing skills by taking its product and linking it to what the audience likes or creating events for them.

How does Red Bull use events to reach customers?

Part of their strategy is to host and sponsor events that their target market is already participating in. Whether it’s a concert, a film event, or extreme diving, Red Bull creates or sponsors an event around them.

Why is this a great move? His audience is already there. Their target audience is an active group. They love to try new and crazy stunts, extravagant sports, or extravagant at a music festival.

So Red Bull appears in places where they know they are their target audience .

Take Coachella for example. This huge music festival takes place over two weekends in the desert and fans should not miss a single second. This means sacrificing a few hours of sleep.

The Red Bull appears and gives them the wings (and energy) they need to stay awake and play at the festival.

How does Red Bull use advertising stunts to promote itself?

Another part of Red Bull’s marketing strategy is its insane advertising stunts. They sent a man aboard a small ship and a helium balloon 128,000 feet above the ground and sent him out. Known as the Red Bull Stratos Jump, this stunt broke two different world records:

By creating massive stunts like the Stratos jump, it makes his audience (and probably everyone agrees) stop and think, “Yeah? I have to see this.”

8 Ways to Implement Red Bull’s Marketing Strategy

The ability of Red Bull to adhere to its brand and values ​​makes them successful.

1. Maximize the idea behind their slogan

Red Bull’s message strategy revolves around its motto, “ Red Bull Gives You Wings “. It focuses on the idea that its product gives people the “wings” or the energy they need to do what they want.

This motto feeds their content as they create and record the most action-packed, high-flying games and activities the world has ever seen.

Need some help jumping off a plane in a flight suit? Let Red Bull give you the extra encouragement you need.

2. Maintain consistent visual branding

Visual branding created by Red Bull is the key to brand success.

Check out one of his most recent YouTube videos:

Content engages viewers in fast, high-intensity stunts that make them wonder if they can really pull it off.

That side of your seat, Shock Mindset is about the Red Bull brand. Instead, I can say, we gave people the energy (and courage) to try this crazy thing.

3. Build a solid foundation of content

The main content of RedBull can be summarized as follows:

They focus on extreme sports, music, art, dance, nightlife, and more. Due to this wide range, their content can attract the right audience.

Red Bull works with the main ingredients that put them in front of the pack.

Every piece of content they create matches the quality of their publications, such as Buzzfeed, Vice, ESPN, and other publications that can be read. That level of quality seems to come from a powerhouse dedicated to creating consumer media rather than energy drink brands.

4. Let values ​​be your guide

Their values ​​also play a role in their content. They focus on the basic phrase “giving wings to people and ideas”. Everything the Red Bull team communicates revolves around that motto and its values.

The ability to maintain a continuous conversation for the past 30 years has brought them success.

5. Restore the way they use traditional media

Content marketing is not the only thing that dominates Red Bull. The brand also invests a significant stake in traditional mass media channels.

Red Bull TV content works in two formats: videos they create for their online channels (YouTube, social media, etc.) and ads that collaborate with traditional TV channel content:

Its TV content was streamed live on his online hub, Red Bull TV. Their videos and shows are divided into event and movie formats, as well as channel topics such as cliff diving and culture:

It also entered the field of music. In addition to covering or sponsoring major concerts, Red Bull also has its own record label, recording studio, music academy, publishing group, and online radio station.

6. Being strong and proud of social media strategy

Another channel dominated by the Red Bull power is social media .

For example, his Facebook page is filled with visually appealing art videos, music created by his record label that thrills audiences, and sports and events that his audience enjoys.

Red Bull’s message is short and sweet because the first 3 seconds will surprise you with what happens. You have no choice but to go completely:

Their Twitter and Instagram channels instead focus on recognizable images to share and promote conversation with their fans.

Which film is unique to Red Bull? According to Link Human, these films capture motion, drama, and emotion:

Their ability to create dynamic social media posts that generated enough interest to stop fans from scrolling further hit him so hard on social media. Each media element feels like its content is in motion, reflecting the brand’s high-power aesthetic.

7. Expose the product to the public with sponsorships and events

Ultimately, Red Bull’s sponsorships and programs are the last part of their marketing strategy to sell their brand dominance. We divide their efforts into three categories:

• Advertising stunt.
• Events created by them.
• Sponsorship.

Their advertising stunts are insane enough to make the world stop and look. Sure, they have a stratospheric jump, but there are many more.

Take the Red Bull Air Force team for example. This group is dedicated to showcasing some of the strangest aerial feats have ever seen:

There are shows like Red Bull Crashing Ice or Red Bull Queen of the Bay, which respectfully focus on specific sports such as ice cross or surfing. These events focus on sports fans and raise awareness about the Red Bull brand.

Finally, there are sponsorships. From the Electric Daisy Carnival in Las Vegas to Coachella, the Red Bull is involved in everything. This is a great move by the company because who is attending all those events? Their target audience.

Not only that, but those sponsorships allow the Red Bull brand to be exposed to new audiences as they are attended by a large number of people.

8. Creating content around what your audience likes

What do they have in common with each item they cover (and there are many)?

They focus on the activities that people participate in when they consume their products. They also post content that their audience can navigate.

They post large amounts of content on their website and, surprisingly, do not mention their product in any way:

They produce The Red Bulletin, a magazine that distributes 2.2 million copies a month:

In short, if their target audience is consuming content on a particular channel, you can count on Red Bull’s presence.

Finally, What Did We Learn from Red Bull Marketing Strategy?

Needless to say, Red Bull has come a long way in the 30 years since its inception. From a very humble beginning to a mega-brand publishing house, Red Bull is a success story in marketing.

Are you inspired by Red Bull’s marketing strategy?

Let their story serve as a reminder that your company should start somewhere. They did not go to a multinational company overnight from an idea in Thailand. It took time, luck, and some effort (and a lot of great marketing along the way).

• Follow their leadership by starting small. Here are some ideas:
• Create a short series of weekly videos on a topic that will interest your audience.
• Curate social media content that meets your product purpose and the interests of your audience (without mentioning you directly).
• Publish an email newsletter with interesting and useful material that your audience will love (and can slap your logo anywhere).

Here’s the key: To be successful in content marketing like Red Bull, you must put your audience’s interests first and create content publishers.

Instead of imitating other marketers, imitate magazines, TV shows, news websites, and anything else your audience reads and watches.

Want to know more about how to actually do this? Here are some additional reading tips to get you started:

Because Red Bull strategy works

Red Bull’s strategy works for three different reasons:

• The first is his ability to tell a story that appeals to an audience. His focus on everything from extravagant sports to music festivals gives him a vast playing field, but that’s not all.
• Second Red Bull ranks its product in providing content and value to its audience. Attention to the details provided by their marketing team is evident. People who care about what they write, record or create around them.
• Ultimately , their commitment to the values ​​and aesthetics that the brand created when it first launched will drive its marketing. Everything they make is associated with the idea of ​​giving wings to people and ideas to fly.

That’s all if you find this content interesting. Don’t forget to share and leave comments. Thank you.

Other Interesting Reads:

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Oreo Marketing Case Study: A blend of 4Ps of Marketing Mix

What is Brand Engagement & Why it is important?

• Trackback: Puma Marketing Strategy Between Competition & Sponsorship - Mix With Marketing
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A Case Study on Red Bull: “Stratos” Campaign

A Case Study on Red Bull: “Stratos” Campaign 7 min read

In the realm of marketing and adventure, few campaigns have achieved the level of notoriety and awe-inspiring impact as the Red Bull Stratos campaign. Red Bull, renowned for its daring and groundbreaking marketing strategies, orchestrated a truly unprecedented event that not only pushed the boundaries of human achievement but also marked a significant milestone in the annals of scientific exploration. At the heart of this campaign was Austrian daredevil Felix Baumgartner , a fearless individual chosen to undertake a skydiving project that would etch his name into history.

Red Bull Stratos was not just a conventional marketing ploy; it embodied words like dangerous, groundbreaking, earth-shattering, daring, and courageous. Conceived by the energy drink company, the campaign aimed to surpass records by orchestrating the highest-altitude jump ever attempted. On October 14, 2012, Felix Baumgartner ascended 24 miles into the stratosphere above New Mexico, suspended by a helium balloon, before taking a free fall that would test the limits of human courage and scientific understanding. During this breathtaking descent, Baumgartner not only shattered records but also achieved the remarkable feat of breaking the sound barrier without the aid of any engine power.

The live broadcast of this audacious endeavor marked a pivotal moment in the history of global social media events. Red Bull, leveraging its sponsorship of the jump, strategically utilized social media platforms to showcase the magnitude of its reach. This was not just a promotional stunt; it was a calculated move to demonstrate the company’s prowess and ability to make significant strides in the exploration of Earth’s outer layers. The campaign not only served as a testament to human resilience and courage but also contributed to human, medical, and scientific interests by advancing our understanding of the outer reaches of the Earth’s atmosphere. In essence, the Red Bull Stratos campaign transcended traditional marketing boundaries, leaving an indelible mark on both the commercial and scientific landscapes.

Campaign Elements – Social Media will never be the same again

The Red Bull Stratos campaign left an indelible mark on the landscape of brand engagement and social media reach, transforming the event into more than a mere promotional stunt. At its core, Stratos served as a unique community within the larger Red Bull brand , uniting individuals worldwide in their shared passion for witnessing daring feats and memorable moments that defy the ordinary.

YouTube emerged as the primary battleground for the campaign’s social media conquest. The live stream of the event shattered records, with a staggering peak of over 8 million concurrent viewers , surpassing the previous benchmark set during the 2012 Summer Olympics. Red Bull’s adept use of YouTube extended beyond the Stratos event, with the brand consistently posting adrenaline-fueled content, from dirt bike stunts to snowmobile tricks and the iconic Harlem Shake skydiving edition. This strategy catered to their niche yet diverse audience, predominantly comprised of high-energy young adults and teens with a penchant for motor sports, winter sports, skateboarding, and biking—an alignment that resonates with Red Bull’s overall brand identity.

Facebook and Twitter played pivotal roles in amplifying the Stratos narrative , each platform having its dedicated Stratos accounts. These platforms maintained a consistent target audience aligned with the broader Red Bull brand, primarily catering to males aged 18 to 34. The separation of Stratos accounts from the general Red Bull brand was strategically crucial, highlighting the campaign’s distinct mission: “Red Bull Stratos will attempt to make history and deliver valuable learnings for medical and scientific advancement that will aid the exploration of space in future years,” as articulated on its Facebook page. On Twitter, the slogan “Mission To The Edge of Space” underscored the campaign’s unique objective compared to Red Bull’s conventional “Gives You Wings” commercials.

The content shared on these platforms transcended the event itself, offering glimpses into the behind-the-scenes intricacies, interviews with Felix Baumgartner, and snapshots from Stratos museum exhibits. This multifaceted approach not only sustained engagement but also showcased the campaign’s commitment to transparency and its broader impact on medical and scientific advancement, cementing Red Bull Stratos as more than a marketing triumph—it was a cultural phenomenon that resonated across platforms, fostering a sense of community and anticipation for the next daring leap into the unknown.

Results of the campaign 

The Red Bull Stratos campaign stands as a testament to the power of strategic social media engagement, with success concentrated in a condensed timeframe that encapsulated the days leading up to the jump, the jump itself, and the aftermath.

YouTube served as a significant battleground for Red Bull’s social media triumph. The campaign triggered a substantial surge in subscribers, with an average daily growth of 2,142 subscribers, as reported by Socialbakers. Notably, the day of the jump witnessed the most significant spike, attracting a staggering 87,801 new subscribers. This surge catapulted Red Bull’s YouTube channel to a total subscriber count of 10.5 million, showcasing the campaign’s profound impact on expanding the brand’s online community.

On Facebook, Red Bull Stratos’ dedicated page experienced remarkable interactions on October 14, recording over 900,000 interactions and 83,000 shares . A standout post, illustrated in Figure 4, garnered nearly 460,000 likes, 18,000 comments, and 44,000 shares, solidifying its position as the most interacted-with post. Socialbakers’ analysis of reach and engagement suggested that this post could have reached tens of millions of people worldwide, underlining the campaign’s global resonance.

The Twitter front echoed the success seen on other platforms, with over 20,000 mentions in a two-day period . Crucially, the official Red Bull Twitter account did not experience a parallel surge, highlighting the distinctive impact of the Stratos account and its 127,000 followers specifically dedicated to the campaign.

The key to social media engagement lay in the campaign’s narrative specifics. Posts concerning the jump’s particulars, including delays, Felix Baumgartner’s preparation, and his safe landing, drew the highest levels of engagement across platforms. This nuanced approach to content creation not only capitalized on the audience’s anticipation but also cemented the Stratos campaign as a captivating success in the digital realm. In essence, Red Bull Stratos not only broke records in the stratosphere but also soared to new heights in the digital sphere, leaving an enduring mark on the brand’s online presence.

Concluding..

In the annals of marketing triumphs, the Red Bull Stratos campaign stands tall as a resounding success, achieving its scientific, marketing, and social media objectives with unparalleled flair. This endeavor, designed to break barriers and redefine the brand’s identity, emerged as a testament to Red Bull’s prowess beyond merely selling energy drinks.

The campaign not only shattered the sound barrier but also left a mark on social media records. With over 8 million simultaneous viewers and millions more engaging across various platforms, Red Bull Stratos set new standards in the digital realm. The event garnered coverage from 40 TV network stations and 130 digital outlets , while a single Facebook post reached over 2 million people within 40 minutes of Felix Baumgartner’s ground landing . Online conversations worldwide were dominated by Baumgartner, Red Bull, and the Stratos Mission, capturing 54% on Twitter, 26% on Facebook, 6% on blog sites, and 14% on other video platforms.

This triumphant campaign offers valuable lessons for future marketers and those embarking on social media endeavors. Firstly, the power of awe-inspiring and daring content cannot be understated. Red Bull’s ability to create and showcase something extraordinary captivated audiences globally. Moreover, the campaign demonstrated the importance of thinking outside the conventional marketing box, aligning brand values meticulously, and going beyond traditional advertising norms.

Harnessing the potential of social media was a pivotal strategy. Red Bull understood that in the age of interconnectedness, people yearn to be part of something significant. By leveraging popular hashtags like #livejump and #stratos, the brand ensured prolonged engagement, turning a one-time event into a lasting conversation. The campaign’s success also underscores the importance of proactively driving engagement, not merely waiting for it to happen organically. Red Bull took charge of the narrative, providing a platform for the public to discuss and share their experiences.

At the heart of it all was the content. Red Bull Stratos demonstrated the essence of effective social media campaigns — diverse, shareable, and creatively presented content. This campaign didn’t just reach for the stars; it went to the moon and back, leaving an enduring legacy that future marketers can draw inspiration from. In the intersection of daring feats, scientific breakthroughs, and digital dominance, Red Bull Stratos emerged not just as a campaign but as a cultural phenomenon, transcending expectations and setting a new benchmark for excellence in marketing and engagement.

Also Read: A Case Study on Budweiser: “Wassup?” Brand Campaign

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When red bull didn’t give you wings.

Abhishek Sahoo

Created on 20 Mar 2021

Wraps up in 6 Min

Read by 63.2k people

Updated on 16 Nov 2023

"Red Bull gives you wings." - did this ad slogan influence you to try out the drink? Yeah? That's awesome as long as you don't take it literally. And once you do, things can get seriously awkward. That's exactly what happened in the US when a person filed a suit against Red Bull for not giving him 'wings'! Sounds ridiculous? Ya, we know. But it's how it is.

However, that's not entirely the case. You know, the devil's in the details. So, let's dive into this $13 Mn Red Bull fiasco!

But before that, let's have a glance over the company.

A brief about Red Bull

Red Bull is an energy drink offered by Red Bull GmbH, an Austrian private company founded in 1984. It's the brainchild of Austrian entrepreneur Dietrich Mateschitz (it's okay, we also couldn't pronounce it) and Thai businessman Chaleo Yoovidhya . Also, so that you know, the founders are among the top two richest persons in their respective countries.

Besides Red Bull, the company also distributes and markets other drinks like Simply Cola, etc., but Red Bull is the company's forte. The company's revolutionary energy drink Red Bull was originally the Thai truckers' sleep-depriving drink, named Krating Daeng. It was introduced to the European markets in 1987, and the rest is history. Taking the youth by storm, it made its footmark in the US in 1997, and within a year, it had already captured a whopping 75% of the US market! Wotta journey!!

Since then, there has been no looking back. After expanding its markets across 171 countries, the company sold 5.2 billion cans of Red Bull in 2012, thereby making it the world's most-consumed energy drink. And it didn't stop there. In 2019, when the world population reached 7.7 billion, Red Bull sold 7.5 billion cans, meaning almost one can for every person on earth! Shocked? We, too, are!

By the way, if you're aware, you would have known that Red Bull has been famous (or infamous, depending) for its widely popular advertisement -- "Red Bull gives you wings." And that's our matter of discussion today.

The advertisement - a metaphor or a deception?

Source: Red Bull advertisement

So, this is the advertisement we're talking about. Wait, don't tell us, you're also feeling like Red Bull literally meant it gives you wings! No, please.

Basically, this was just a very clever bit of branding technique, indicating high Caffeine content. Red Bull states that a 250ml can of its energy drink contains about 80mg of Caffeine, the same amount as contained in a cup of coffee. And being an energy drink, they charged a premium over a cup of coffee.

Anyway, how does Caffeine relate to wings, you ask? Well, first read this note from healthline.com regarding the effects of Caffeine -- "Caffeine acts as a central nervous system stimulant. When it reaches your brain, the most noticeable effect is alertness. You'll feel more awake and less tired, so it's a common ingredient in medications to treat or manage drowsiness, headaches, and migraines."

Learn the Right Way to Buy and Hold with  Coffee Can Investing

So, when Red Bull said it "gives you wings", what it basically meant was that it stimulates your nervous system, reduces drowsiness, and makes you feel cool and active. Thus, you feel light and energetic. And it does, isn't it? Many even take it as a lite version of hard drinks! Gosh! So, now you know it didn't literally give you wings. Rather, it is a metaphor (a word that carries a different underlying meaning and not its literal interpretation).

And what did Red Bull plan to achieve, you ask? See, Red Bull's niche target market is the youth, and the youth wants mystery and vigour in all endeavours. Therefore, in a bid to entice the youth, they came up with this brilliant ad. As intended, the plane took off and the result... Red Bull became the most consumed energy drink in the world.

Okay, if this was just a metaphor, where was the deception part? Under what grounds was the suit filed? And who filed it? Well, let's explore.

Benjamin Careathers v. Red Bull North America, Inc.

Benjamin Careathers got no chill! Yes, that's our man. He, joined by others later, filed a case against Red Bull in 2013.

Although we did not attend the court proceedings, we feel Mr Benjamin would have said something like this -- " Your honour, I have been drinking Red Bull for over 10 years. It tastes a slight bit bitter, but that's okay. I don't have any complaints regarding its taste. But my problem is with the wings thing. Your honour, after I drink Red Bull, I don't feel like flying. Don't mistake me for being foolish; I am not taking it literally. I just mean that it doesn't make me feel so athletic and energetic. Oh, and if you think that's my problem, then NO. There is a problem with the advertisement itself. They advertise that a can of Red Bull contains the same amount of Caffeine as a cup of coffee. But facts state that a 250ml can of Red Bull contains about 80mg of Caffeine, which is much less than a smaller 207ml of coffee that contains as much as 150mg of Caffeine. And hence, I think the ad is deceptive and misleading. Thus, the premium paid over a cup of coffee also doesn't make any sense. I ought to be compensated for my expectations and consumption. "

Metaphorically put, Red Bull doesn't give you any more 'wings' than a cup of coffee, right?

And the cost-premium bit was also true. For instance, a 356ml cup of premium store Starbucks coffee costs around $1.85 and would contain far more (over 4 times) caffeine than a 250ml can of Red Bull, which costs around $2.19. Eh, gotcha?

In this case, the court ruled in favour of Benjamin and other plaintiffs and, thus, ordered Red Bull a class settlement for all victims. It agreed to pay a total of $13 Mn as compensation to the customers who felt cheated by drinking its energy drink in the last decade. The compensation per victim was a cash payout of up to $10 or two Red Bull products worth $15 combined, with the company handling the shipping charges. This means the higher the number of victims, the lesser the share of compensation of each. And that's how it went.

Also, read  Dollar vs Rupee . Where to Invest?

The aftermath of the Red Bull case

Though Red Bull stood up to the claim settlement, it didn't admit its wrongdoing. Or so to say, Red Bull still believed in its' wings'. This is what the company officially stated -- "Red Bull settled the lawsuit to avoid the cost and distraction of litigation . However, Red Bull maintains that its marketing and labelling have always been truthful and accurate, and denies any and all wrongdoing or liability."

They underestimated the power of customers, and therefore, they had to cough up another $850,000 CAD in another similar case filed in 2019 in the same compensation structure.

And like Bill Gates says, "Your most unhappy customers are your greatest source of learning." This time, they realised and were cautioned. And thus, they changed their ad slogan to "Red Bull gives you wiiings." This was another clever shot, whereby this time, none could sue Red Bull because there won't be any dictionary meaning of 'wiiings' (with 3 i's), while it would still sound like 'wings'! A superb idea, indeed.

Source: Red Bull website

And now you know what's all about Red Bull's $13 Mn fiasco. Yeah?

The bottom line

By the way, Red Bull wasn't the only brand that was dragged to court in such a false advertisement case. New Balance was similarly sued in 2011 for falsely claiming that its toning shoes burnt calories, Dabur was sued in 2017 for the deceptive advertisement of its tal oil doing "dugni tezi se sharirik vikas", L'Oreal was sued in 2014 for misleading customers that its skincare products were "clinically proven" to cause "visibly younger skin in just 7 days", and there were many other such instances.

You see, there is a very thin line separating clever and notorious. And the same works for marketing as well. A clever deceptive marketing tactic may enable a brand to take off, but in the end, if customers catch it, you won't be spared! Because, ultimately, the customer is the only real boss. And as Milton Hershey quotes --

"Give them quality. That is the best kind of advertising."

So, what do you think? Tell us in the comments below.

How was this article?

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An Article By -

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Abhishek has a love for numbers and words alike. With a passion for finance and interest in writing, he’s blending both as a Finance Content Writer at Finology. He writes to simplify the toughest of the technical stuff for readers and tries to make the reading exercise interesting. He is a CA Final candidate and aims to pursue a management degree from a top-notch b-school.

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All the responsibilities we'll trust you with:

Establish and nurture relationships with key influencers, industry players and business partners (including, but not limited to, outlet owners/managers, bar staff, distribution partners, promoters, agencies, etc.)

Build affinity and understanding of the Red Bull brand and products within your network.

Be seen as the credible, reliable and knowledgeable face of Red Bull On Premise.

Deliver excellence with Red Bull's premium brand image in all activities and execution.

Know your territory like the back of your hand.

Follow the company's strategy, create innovative measures and lay the foundation in areas where Red Bull will exploit its full potential in the future.

Master the On Premise universe by staying on the cutting edge of industry knowledge, trends and new opportunities (accounts, occasions, consumers).

Manage internal and external resources (materials, tools, budget) to drive efficiency and effectiveness.

Collaborate with internal (especially on premise- and culture- marketing) and external stakeholders (artists, promoters, agencies, creatives) to leverage business success

Deliver premium execution and creative value-adds to enhance Red Bull's brand image and increase consumption at events (Red Bull events, 3rd party such as para-gastronomy and festivals)

Build and maintain long-lasting collaborations with key stakeholders.

Negotiate win/win partnership agreements which add value to both Red Bull's business and customer's business.

Leverage your impressive communication, sales and marketing ability to keep Red Bull number one On Premise.

Drive and expand the business by identifying the right sales and marketing occasions in which Red Bull should be present (brand, product).

Turn insights into impactful programmes to drive sales and leverage the Red Bull brand image.

Measure success by diligently tracking, analysing and reporting on performance and areas of growth and opportunity.

Your areas of knowledge and expertise

that matter most for this role:

• Sales and Marketing experience preferred.
• Previous experience working in the hospitality, night-life and/or FMCG industry preferred.
• Basic market knowledge and integration into local On Premise industry and community is beneficial.
• Self-motivated and ability to work independently in a high energy, fast-paced, field-based environment.
• Strategic, innovative, commercially aware (shows understanding of sales and finance processes).
• Strong planning, prioritisation and organisational ability.
• Strong analytical ability (analyse sales and customer data).
• Street smart. Know what's going on in the streets – understand all groups of people, what every type of person has to deal with daily and know how to act around them.
• Self-aware and able to adapt communication, presentation and professional appearance according to audience and scene. Excellent communication, active listening skills and the ability to negotiate.
• Ability to work flexible hours (including nights and weekends).
• Full working knowledge of IOS and MS Office.
• Matric required University degree preferred
• Fluency in English (verbal & written)
• Travel 80-90%

Red Bull Musketeer

Musketeers are the personification of the brand in Red Bull's On Premise business.

Johannesburg Gauteng , South Africa

Got what it takes?

In your application we want to see your personal style - what makes you tick and why you think your next opportunity is here with us.

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Giving wings to people and ideas since 1987

In the 1980’s Dietrich Mateschitz developed a formula known as the Red Bull Energy Drink. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category.

Chasing our potential

Since the early days of Red Bull, an entrepreneurial mindset has always guided our approach to work and the environment we create:

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