Jany Vargas 4101 Marketing Research Professor Sonia Lambert Assistant Deputy Chairperson
Product:
Red Bull Energy Drink:
This functional beverage provides you with wings whenever you need them. It is best to drink while on the road, lectures, study sessions, at work and while engaging in sporting activities. This beverage is composed of Caffeine: it helps stimulates the human body and can be found in coffee, tea, cocoa beans and cola nuts. Taurine: an amino acid that the human body already possesses and it is also on fish, scallops, poultry and most infant formulas. B-group vitamins: vitamins are essential for the human body. There are two types of vitamin: fat soluble and water soluble, Red Bull contains water-soluble vitamins. Water-soluble vitamins does not get stored as much in the body as fat soluble vitamins. Sugars: a recognizable carbohydrate that can be found in many edible items like fruits, and fruit juices. Carbohydrates are basic nutrients consumed in the daily diet Alpine Waters: The water used for Red Bull is fresh alpine water of best quality, which comes from springs nearby the production sites in Austria and Switzerland. Water is the base for the energy drink to be made.
→ Based on the product life cycle Red Bull is currently on the growth and maturity stage. This is an energy drink that it is recognized in many parts of the world and in 2016 they sold over 6+ billion cans of energy drinks. As of right now Red Bull is in 171 countries and that number continues to grow. Red Bull’s ultimate goal is to be recognized all around the world. They have been so successful because of their ability to adapt to the changes of consumers and market. For example these days people are drawn towards being more healthy and as a result Red Bull created products with zero calories and zero sugar people. Another example is being socially responsible, their cans are made from recycle items which helps the planet. Everything they do from events to sports games transmits their message of Red Bull giving you wings when you need it.
Company Behind the popular Drink:
Red Bull GmbH:
Red Bull GmbH is the company in charge of creating the Red Bull energy drink, they are located in Austria and are well-known for sponsoring events, sports and much more. They have been in the business for 30 years and over 62 cans of their products have been consumed so far. That number continues to increase as well as their growth around the world.
Some of the company’s Subsidiaries:
The Red Bull Racing Team:
The Red Bull Munchen Hockey Team
Red Bull North America Inc and Red Bull Canada Ltd: are in charge of distributing the energy drinks in their region.
Red Bull Technology Ltd: They are partnered with Red Bull Racing and focus on manufacturing, engineering, motorsports and formula one.
Red Bull’s Master Brand: Red Bull Media House:
A media multi-media platform that focuses on sports, lifestyle and culture, this is an umbrella brand of Red Bull. it offers a variety of preou quality media products and content all across their media channels. Red Bull Media House offers content that it is appealing to its global audience and it goes under the categories of: → Print → Digital → Audio → Mobile. Each of their categories and logos are described as follow:
Red Bull TV:
Red Bull TV is in charge of streaming events that are sponsored by Red Bull all around the world. Events vary from sports, music and lifestyle entertainment. Aside from obtaining this service online, viewers also have the opportunity of downloading the Red Bull Tv app which gives them access to its content wherever they go.
RedBull.com:
Its focuses are: sports, music and lifestyle It is available in 50 countries and 36 languages. Some of the content the website provides are: → insight stories → spectacular videos → Images → Games → Cinema → Books → Audio Streams
Red Bull TV Online:
This online platform serves as a to-go on-demand service that provides “high - quality” programs that revolve around red bull events. Each Red Bull event is broadcast live.
Red Bull Mobile:
Only available in Austria and Poland. This is a mobile service that provides its user an exclusive access to the world of Red Bull. it combines both real life experiences and digital entertainment for its user and it's truly a state-of-the-art service.
Apps offered by Red Bull:
Redbull Tv Mobile App: Provides the services of Red Bull TV on the go.
Red Bull Wallpapers: Provides live- wallpapers and amazing sports images for android users
RBMA Radio: A radio station that provides good music to its users
Clashem: Provides 5 second video battles of people doing stunts.
Red Bull Illume: It provides its users with a collection of pictures from action sports.
Red Bull Records:
This is an independent record label which gives artists the opportunity of pursuing their dreams and developing their skills even further. They have offices in Los Angeles and London. Red Bull records has a very diverse music genre and some of the artist line-up include platinum album certified.
Red Bull Music Publishing:
It helps develop people who aspire to become composers and it is also a business that establishes partnerships with different artists and brands. It is located around the world. Some of its artists are:
Red Bull Music Academy Radio:
It was first launched in 2005 and provides a wide variety of music to its 600,000 listeners each month. Some of their genre are indie, pop, rock and soul. It is available online and on mobile apps.
Games:
Red Bull offers: → Mobile games → Gaming and eSports channels → Ingame integration. Some of the games are:
Red Bull Air Race The Game: this is one of Red-Bull’s most iconic world series turned into a game.
Gran Turismo 6: this game comes with exclusive cars designed by Red Bull.
Red Bull Reality Check: this is a reality series game that brings together the virtual and real world. Users have the opportunity to play against their favorite athlete.
Cinema:
Red Bull showcases their audio-visual production in their cinema, some of their featured films are: → Fourth Phase:
→ Streif - One Hell of a Ride:
→ On Any Sunday: The Next Chapter
→ Cerro Torre: a Snowball Chance in Hell:
Some of their action features are:
→ Days of my Youth:
→ Where the Trail Ends:
→ We - a Collection of Individuals:
The Red Bulletin:
The Red Bulletin is an international men’s magazine it focuses on: → sports → Adventure → Culture → Music → Lifestyle This magazine is currently in the markets of Austria, France, Germany, Mexico, Switzerland and UK. it is in both print and digital
→ Logo of the digital version
Benevento Publishing:
Benevento Publishing is a brand under the Red Bull Media House umbrella and it is also the residence of four unique imprints:
→ Ecowin which publishes non-fiction books that always make the best sellers list.
→ Servus launched in 2014 and it is compliment to Servus Tv and Servus Magazine
→ Pantauro offers insight to the world of Red Bull
Some of the books published under Benevento are:
Servus am Marktplatz
Via this platform Red Bull offers its customers a variety of Austrian and German products. They have a life that focuses on craftwork and each product that is displayed comes with the story of the crafter and the idea behind its creation.
SpeedWeek:
A platform for motorsports which focuses on two and four wheel racing events around the world.
Servus TV:
Only available in Austria, Germany and Switzerland. It advertises classic TV, Sponsoring and special advertising formats. It delivers the best programming for the residents around the servus area.
Terra Mater Studios:
Its focus is to deliver programming that is centred around nature, wildlife, science and history. It also showcases amazing picture galleries and is available in print form for those who aren’t tech savvy.
Servus in Stadt & Land:
It is a magazine focuses on the simple things that “make life good” such as gardening, food and drink, health and well-being, people and places. It also focuses on culture and folklore. Servus in Stadt & Land is also available in digital form, its distribution circle is Austria, Germany, Switzerland, Luxembourg, and South Tyrol.
Bergwelten:
This magazine is both in print and online. Its distribution area is Austria, Germany, Switzerland and South Tyrol. The focus of this magazine are: → Mountain regions and people → Nature and culture → Sports and equipment → Fashion and Lifestyle.
Marketing Brand Strategy:
Red Bull is a multi product brand because they make sure to add their name to every single product that is part of their line up. They also sponsored many events and sports team that also have their name included. Aside from their well-known energy drinks Red Bull also has the following:
The New York Red bulls is an example of something that Red Bull decided to acquire. This is a smart decision because this give them the opportunity to advertise their product with their own team. The Team's stadium called the Red Bull Stadium has the logo and color scheme included.
The Red Bull Car: has the logo, name and even a can of the well-known drink.
Other products created by Red Bull:
Red Bull knows their audience and every decision that is made is carefully throughout which can be seen by their success in everything they release in the market.
Line Extension:
Red Bull Sugar Free:
This is an energy drink without sugar and it only contains 3 calories per 100ML. It is best to drink while on the road, lectures, study sessions and a day or night out. It is made of the same ingredients as the original with the exception of one ingredient: Aspartame & Acesulfame K: The most tested and most used sugar substitutes in the world. Acesulfame is a non-caloric sweetener and it is used on gum, dairy products, and baked goods. Both are safe to use and have been approved by the FDA.
Red Bull Total Zero:
This product gives consumers the choice of still be able to consume an energy drink minus the calories and sugar. Can be drink for any occasion such as a study session, hang out session with friends and/or road trip. Contains the same ingredients that Red Bull sugar free contains. Despite the fact that it does not contain sugar or calories it gives the same benefits that the original Red Bull does.
Red Bull Editions:
Red Edition:
This energy drink contains the same amount of calories and ingredients as the original one with a cranberry taste. → Contains Sugar → 80 mg of Caffeine
Silver Edition:
An energy drinks that still gives its consumers wings when they needed while also giving them a rich lime taste. → Contains sugar → 80 mg of caffeine
Blue Edition:
This is a blueberry flavored energy drink with the same ingredients as the original drink. → Contains sugar → 80 mg of caffeine
Yellow Edition:
Originally a limited edition drink only for the summer. There are two options of caffeine and ounces for the yellow edition, consumers have the choice to pick the one that serves the best for the amount of energy wings they need for the day. → Tropical flavored → 80 mg or 114 mg of caffeine → 8.4 fl oz or 12 fl oz
Purple and Lime Edition:
The purple edition is acai flavored and it contains no sugar but it still provides the same amount of energy ( wings) that consumers need
The lime edition is limeade flavored and it also does not contain sugar.
Kiwi Apple Edition:
This drink contains same ingredients as the original red bull drink with a kiwi - Apple flavor.
Orange Edition:
Tangerine flavored energy drink with the same ingredients as the original Red Bull.
The Summer Edition:
This grapefruit twist Citrus energy drink was only available this past summer it contains the same ingredients as the original.
Brand Extension:
Red Bull Simply Cola:
This product is made from natural ingredients that come from 100% natural sources. Simply Cola is not an energy drink even though is part of the Red Bull company, because it is made of natural ingredients it is not too sweet. This product is made for people who want to have an alternative to cola. Some of the ingredients are Cocoa, orange, cinnamon, lime, lemon, caffeine and ginger. The idea for this product was created during the 80s when the company was first created, Red Bull felt that back the was not the right time to introduce this product so they kept it a secret until the perfect time came. Simply Cola was launched in Austria in the year 2008.
Price:
→ Red bull price varies depends on the ounce of the can: ( prices are based on stores) Original Red Bull: 8. Oz : $ 1.99 - $ 2.29 12 Oz: $ 2.29 - $ 3.19 16 Oz: $ 3.19 - $ 3.29
Red Bull Total Zero: 8. Oz : $ 2.29 12 Oz: $ 2.50 - $3.19
Red Bull Sugar Free: 8. Oz : $ 1.98 - $ 2.29 12 Oz: $ 2.50 - $ 3.19 16 Oz: $ 3.29 - $ 3.99
Red Edition: 8. Oz : $ 1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19
Blue Edition: 8. Oz : $ 1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19 Silver Edition: 8 Oz: $ 1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19 Purple and Lime Edition: 8 Oz: $1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19 Yellow Edition: 8 Oz: $1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19 Kiwi- Apple Edition: 8 Oz: $1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19
Orange Edition: 8 Oz: $1.65 - $2.00 12 Oz: $ 2.50 - $ 3.19
Summer Edition: 12 0z: $ 2.99 - $ 3.19
→ Red Bull does not implement penetration pricing or skimming pricing because based on observations in price range, their price per can and ounce varies on the store overall prices. For example Wal-Mart is known for their low prices in products and an 8 oz can of original red costs $ 1.98 and in Kmart an original 8 oz can of Red Bull is $ 2.29. Red Bull Segments their market by geographic area (region and density) demographics ( age, gender,lifecycle stage, income and occupation) Behavioral (degree of loyalty, degree of sought, personality and user status) and psychographic (social class and lifestyle)
Place: → In the United States Red Bull can be seen in supermarkets ( Foodtown, Ctown, Bravo etc) Bodega stores, gas stations, 7Eleven. It can also be seen in stores like Target, Walmart, Costco, Walgreens, Kmart, Sam’s Club, CVS and Rite Aid. The list of places where Red Bull can be accessed goes on and on. Based on the research Red Bull distribution strategy is selective because their channels of choice are popular retailers. For example in New York City there is a bodega everywhere which grants easy access to the energy drink. Lastly stores like WalMart and Costco allows consumers to buy the energy drink in packs for at a discount price.
Promotion: → Red Bull’s advertising started with several funny cartoon commercials showcasing different situations where people drink a can of Red Bull and suddenly get “ wings” to fly away. For example there was one about a married couple, where the wife was telling the husband that his mother in law was coming to visit and he was thinking of ways to shorten the visit. He suddenly thinks about giving her a can of Red Bull, which will make her fly away. This is a way of saying that Red Bull can give you the lift or wings you need in any situation. In each commercial Red Bull does not directly tell people to consume their product, they simply show what can happen if people decide to drink a can of Red Bull. Not to mention the commercials are very entertaining and funny. Red Bull also utilizes athletes and even consumer of their products on the commercials giving it a realistic feeling. → Red Bull mainly creates commercials which are advertised on television or on their Red Bull TV platform. It is easier to target their consumers digitally than it is with billboard ads. Their products are mainly promoted via events, sponsorships and even video games. They really connect and understand their audience which is why they are very loyal to Red bull. They are very good at creating events where people will consumer their products and have fun. Red Bull knows how to create the perfect atmosphere whether it is at a sports game or one of their music events and that's why they are considered as more than just an energy drink.
Appendix Beginning of Red Bull: → Red bull was founded in the 1980s by Dietrich Mateschitz an austrian businessman. The energy drink was inspired by an already existing in the far east. The very first Red Bull drink was sold on April 1st, 1987 in its hometown Austria. From that very first sale red bull has been able to revolutionize the 171 countries that is now part of. Thailandese version (original) of Red Bull:
→ This version is more contrater and sweeter than the Austrian version.
“Red Bull Founder.” Who Makes Red Bull? Red Bull Company - Origin & Founder :: Energy Drink :: Red Bull USA, energydrink-us.redbull.com/en/company. “The Origins of Red Bull.” Logo Design Love, 12 Feb. 2017, www.logodesignlove.com/red-bull- origins.
→ Red Bull Simply Cola has had lots of controversy, German officials believed that simply cola contained cocaine. As a result they decided to banned the product from six of their states across the country. This was all caused because of one of the ingredients found in simply cola called coca leaf. However this ingredient is used in many drinks in order to add flavoring. A spokesperson of Red Bull Germany stated that it is perfectly safe to use the ingredient in Europe and The United States. While researching the price range for red bull products Simply Cola was the only product whose price range did not showed up.
Paz, Jean Friedman-Rudovsky / La. “Red Bull's New Cola: A Kick from Cocaine?” Time, Time Inc., 25 May 2009, content.time.com/time/world/article/0,8599,1900849,00.html.
→ Despite the controversy Red Bull still remains on top and continues to generate sales. Their cartoon commercials are very popular and Red Bull has a website titled Flying Planet: Red Bull Commercial, where people can go an watch all commercials.
Stills of some of the commercials:
Commercials for Red Bull Tv:
A still of a commercial featuring NBA star Anthony Davis
Link: https://www.ispot.tv/ad/A_WH/red-bull-action-featuring-anthony-davis-song-by-gallant#
Store display of Red Bull:
( Store Display in Tokyo, Japan)
( Store Display at a CVS Pharmacy)
Everything under the Red Bull media house was found at: https://www.redbullmediahouse.com/products-brands/print.html https://www.redbullmediahouse.com/products-brands/tv.html https://www.redbullmediahouse.com/products-brands/online.html https://www.redbullmediahouse.com/products-brands/mobile.html https://www.redbullmediahouse.com/products-brands/music.html https://www.redbullmediahouse.com/products-brands/games.html https://www.redbullmediahouse.com/products/cinema.html https://www.redbullmediahouse.com/products/books.html
→ words underlined and in blue are linked to the websites where the information was found, also some of the images are linked to the webistes as well.