Red Bull May Not ‘Give You Wings'

With countless reports of people being hospitalized after chugging down a Red Bull and other energy drinks, the company fails to warn possible customers of the energy drinks potential negative side-affects. And only focus on the glamorous up-side of Red Bull. By not telling the whole story, Red Bull Corporation trick anyone viewing ads about Red Bull. Which is especially important to note when most Red Bull consumers are teens and young adults. The negative consequences of drinking to many Red Bulls, are heart attack and comas to name a

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.

Ever since Red Bull entered the market in 1997, there's been a boost in the sales of these caffeinated energy drinks. These are marketed to increase energy, aid weight loss, improve stamina, concentration, and athletic performance, some even claim to give you superpowers. But not a slight hint is given to the consumers about the high caffeine amounts in them which can lead to serious consequences in both adults and

These manufactures will grab young people attention who are in need to increase and improve their concentration, reaction speed, and emotional state; but they fail to acknowledge the side effect of their products, such as being very tired after several hours of “sugar rush”. An over dosage of Red Bull cause a twenty-eight years old man to have a heart attack (Richards), this incidents is one of many that prove to us that this dangerous products should be banned from super markets and other easily accessed places for younger generation.

This document is part of the requirements of the Foundations of marketing course, the University of Newcastle. It is the first part of the marketing plan for Red Bull, the leader of energy drinks market.

Red Bull energy drink competes in the Non-alcoholic drink market which could be the overall Food and Beverage market. ‘Red Bulls target market is young, on the go, who enjoy extreme sports and live an active nightlife, anywhere from 18-35’(Swartz,Jon).

If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).

Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.("The Top 15 Energy Drink Brands.")

Red Bull receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.

Red bull has dominated the energy market for a decade now. Its popularity and stylish design has allowed it to be charged at a premium price. Red Bull is a stylish and vibrant energy drink that is priced at least five times higher than the ordinary soft drink. Red Bull strongly believes that it offers its consumers something more than a beverage; it believes that it offers them a ‘way of life.’ It provides its consumers with energy and related brainpower to make the most of their time. Due to all of the above reasons, Red Bull can afford to price itself at such a high price. Therefore, it is important that Red Bull chooses those markets where the people have the financial capacity to purchase their product

Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed with the change of its ingredients. Earlier it was an energy drink and later it was functional energy drink. Mateschitz devised the brand positioning that Red Bull “Revitalizes Body and Mind” This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus Red Bulls consumption was not limited to any occasion or activities.

The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.

Red Bull has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and

Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities. Mateschitz’ strategy aimed to target opinion leaders, believing that “the authority of one alpha bee can influence the buying habits of hundreds”. The Red Bull segmentation

Their slogans, “Red Bull Gives You Wings” and “No Red Bull, No Wings” have also proven to be a staple in their brand presentation for many years (Red Bull). While Red Bull is still dominating the industry, they may have some untapped resources in their marketing strategy and product presentation. While the brand is known throughout society they have the ability to reach a larger audience without losing the identity that the brand was built on. In the United States specifically, Red Bull could appeal to American athletes and consumers by sponsoring well-known athletes outside the extreme sports industry.