This document provides a marketing plan for Red Bull energy drink. It discusses Red Bull's history and background, noting it was founded in 1982 and is now the leading energy drink brand globally. The plan outlines Red Bull's mission to be the premier marketer of energy drinks worldwide. It then analyzes Red Bull's target market of active young adults aged 18-35, describes pricing and distribution strategies, identifies major competitors, and sets objectives to increase distribution and brand awareness.

1. Marketing Plan
Red Bull
Tariq Hameed Siddiqui
Hafiz Umair Patel
Hafiz Memon

2. Marketing Plan
Contents
History ................................................................................................................................................. 2
Background ......................................................................................................................................... 2
Introduction ........................................................................................................................................ 3
Mission ................................................................................................................................................ 3
Vision................................................................................................................................................... 3
Marketing Background .......................................................................................................................... 3
Company and Product Review......................................................................................................... 3
Distribution/Penetration .................................................................................................................... 4
Target Market Statement ................................................................................................................. 4
Pricing.................................................................................................................................................. 4
Competitive Analysis.............................................................................................................................. 5
Marketing Plan ....................................................................................................................................... 5
Sales Objectives ................................................................................................................................. 5
Target Market .................................................................................................................................... 5
Target Market of Red Bull ................................................................................................................... 6
Market Segementation Strategy ......................................................................................................... 6
SWOT Analysis......................................................................................................................................... 6
Strengths ............................................................................................................................................. 6
Market leadership ........................................................................................................................... 6
Marketing efforts ............................................................................................................................ 7
Cadbury Schweppes alliance ........................................................................................................... 7
Weaknesses ........................................................................................................................................ 7
Lack of innovation ........................................................................................................................... 7
Reliant on small product base......................................................................................................... 7
Marketing expense ......................................................................................................................... 8
Opportunities ...................................................................................................................................... 8
Diversification of retail outlets........................................................................................................ 8
Extension of product line ................................................................................................................ 8
Geographical expansion .................................................................................................................. 8
Threats ................................................................................................................................................ 9
Public health concerns .................................................................................................................... 9
Maturing market ............................................................................................................................. 9
Consumer awareness of health and well being .............................................................................. 9
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3. Marketing Plan
History
In 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed
widespread popularity throughout the Far East. His idea to market these functional drinks
outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in Hong Kong.
In 1984, Mateschitz founded Red Bull. He fine-tuned the product, developed a unique
marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987.
This was not only the launch of a completely new product, in fact it was the birth of a totally
new product category. Meanwhile Red Bull is present in over 160 countries.
Since 1987, around 30 billion cans of Red Bull have been consumed, more than 4.2 billion in
2010. The responsibility for the success of the world's No. 1 energy drink is shared by the
company's 7,758 employees around the world (compared to 6.900 in 2009). The Red Bull
headquarters are based in Fuschlam See, not far from Salzburg, Austria.
Background
Red Bull GmbH produces the world's leading energy drink. More than a billion cans a year
are sold in nearly 100 countries. Red Bull holds a 70 percent share of the world market for
energy drinks, or functional beverages, a category it was largely responsible for building. Its
dominant position in the fastest-growing segment of the soft drink market in a number of
countries has drawn a number of imitators. Red Bull has become a case study in successful
guerilla marketing in the United States and United Kingdom. Marketing is aimed at hip
young people with active lifestyles, though the formula began as a popular tonic for blue
collar workers in Thailand.
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4. Marketing Plan
Introduction
Red Bull Energy Drink is a functional beverage. Thanks to a unique combination of high
quality ingredients Red Bull Energy Drink vitalizes body and mind. Red Bull Energy Drink
has been developed for people who want to have a clear and focused mind, perform
physically, are dynamic and performance-oriented whilst also balancing this with a fun and
active lifestyle.In short, Red Bull gives wings to people who want to be mentally and
physically active and have a zest for life.
Mission
Our mission is to be the premiere marketer and supplier of RedBull in Asia,
Europe and other parts of the world. We will achieve this mission by
building long term relationships with the people who can make it a reality
Vision
We create a working environment in which employee are respected and
are trained to maximize their skills. We seek to provide reliable products
to our customers and will never compromise on cost for quality. We will
maintain our leadership position in the energy drink market through this
we aim to increase profitability and become a brand which is well known
in energy drink market.
Marketing Background
Company and Product Review
In 1982, Dietrich Mateschitz, creator of Red Bull alongside Chalerm Yoovidhya, saw
where Japan and Thailand were heading in the energy drink market and decided they
wanted a piece of the pie. By 1987, Austria proved to be a difficult market for Red
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5. Marketing Plan
Bull to survive in and soon Mateschitz expanded into Hungry and the rest of German
y. After expanding across Europe with a lot of trial and error Red Bull was $12 mill
ion in the hole. Rather than scrapping Red Bull as a loss, Mateschitz fired all his sta
ff and hired a marketing firm to help him target nightclubs and students. Buzz marke
ting became the main focus of Red Bull’s marketing plan, and soon students were po
unding campus pavement and driving around inMini Coopers with a big Red Bull can
strapped ontop with free samples. His buzz marketing proved to be not only cost effe
ctive, but the very thing that gave Red Bull its appeal. Although Red Bull was not
welcomed with open arms in all countries, such as France, Denmark and Norway, it
was growing and expanding.
Mateschitz soon realized that an extreme sporting event was a profitable avenue to ta
ke Red Bull down. Red Bull started supporting approximately 500 extreme sports athl
etes and hosting exclusive parties for these rock star competitors. By 1997, Red Bull’
s buzz marketing strategy proved successful in the U.S. as well. Events are now hose
d throughout the world ranging from B.A.S.E. jumping to surfing. Their tagline, “give
s you wings” is known worldwide and Red Bull sponsors public and private events s
uch as the X‐games and the Red Bull Air Races.
Distribution/Penetration
Red Bull is distributed in most grocery store, convenience store, and gas station all
across the U.S. such as HyVee, SuperSaver, Safeway, Trader Joes, Conoco, Quick Tri
p.Also found in discount/supercenter stores as Target and Wal‐Mart.In 2002, Red Bull
completed its distribution share and the product is now available in all 50 states.
Target Market Statement
Red Bull’s target market are young, on the go people, who enjoy extreme sports andl
ead an active nightlife, anywhere from 18‐35, who lead an active lifestyles, and are s
keptical of traditional marketing.
Pricing
The pricing of Red Bull varies from if the consumer is buying an individual can, wh
ich the price is Rs.150, compared to a case of Red Bull. The average price of a ca
seof 24 Red Bull is Rs.130, but depending upon the distributor, the prices may vary.
Pricing for energy drinks vary by brand, but Red Bull is the premium.
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6. Marketing Plan
Competitive Analysis
Red Bull can be easily copied because the ingredients were printed on the can,drink
was not patented.Even though the taste of Red Bull did not do well intaste,it was th
e marketing strategy that made Red Bull so successful.
In the late 80s, around the same time Red Bull was spreading across Europe, Americ
an’s were drinking Jolt Cola, which was advertising as having “all the sugar and twic
e the caffeine as Coke”. It can be said that Red Bull was the first energy drink to
be in competition with soft drinks but also created the new energy drink category in
most markets. After Red Bull hit the market hard in the late 90‐the present, many o
ther companies have tried to hop on the energy drink bandwagon such as when Hans
en, the natural soda company, created Monster Energy.
Red Bulls has approximately 100 major competitors, such as 5 Hour Energy Drink an
d Rock Star Energy Drink. Not only do energy drink companies fall in these 100 ma
jor competitors of direct competition but, there is also the sector of soft drinks that h
ave proven to be a viable opponent. Coca‐Cola (Full Throttle & Monster), Pepsi (A
MP Energy Drink) and Gatorade (Rebranded as G and G2) are three of Red Bulls m
ajor competitors. Many celebrities have also taken on the role of putting their face to
an energy drink label, such as Ice‐T creating an energy drink called Liquid Ice,.Howe
ver, in the end, no other energy drink has been able to claim Red Bull’s 70‐90% of
the market share it has in over 100 countries worldwide, despite these competitors.
Marketing Plan
Sales Objectives
We want to maintain our position as the leader in energy drinks and the face of extr
eme sports worldwide, while expanding our reach in the U.S.We want to increase dist
ribution of Red Bull in these states by 5% and increase brand awareness by 85% in
Pakistan as well while keeping a national presence.
Target Market
The uniqueness of Red Bull is that the company does not follow traditional media gu
idelines and that is why they chose the untraditional platform.Their target audience is
very receptive to this.As stated above,the target audiences of Red Bull are people bet
ween the ages of 18‐35,who lead an active lifestyle and what to have a sense of bel
onging in their community,but in an untraditional way. Red Bull’s target audience. No
t only do they not trust traditional media they are turned. These antiestablishment and
adventure seeking individuals that do not follow the rulesand needed Red Bull needed
buzz marketing/extreme sports in order to tap into them.
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7. Marketing Plan
Target Market of Red Bull
• Teenagers
• Youth Adults
• Top Athletes
• Students of college and universities
• Busy professionals
• Drivers on long journey
Market Segementation Strategy
RedBull avoided using usual methods of marketing, relying moew on what is called buzz
marketing or the word of mouth.
Red Bull advertised directly to Generation Y, the so called millennial peope born after 1091
Student Brand Managers who would be used to promote ref bull on university campuses.
These students would be encouraged to throw parties at which cases od red bull would be
distributed.
Brand Positioning Strategy would be clear, engaging and unique and relevant to the target
audience. And the ability to incorporate an element of positive emotional attachment that is
better than just good.
SWOT Analysis
Strengths
Market leadership
Within the energy drinks market Red Bull is the industry leader throughout the world.It has
annual sales of a billion cans, with a significant presence in Europe and the US.In 2003 it
achieved an 80% brand share of the UK energy drinks market. In Europethe company
produces two-thirds of overall volume in the region. The brand is presentin 13 West
European countries and holds the lead in 12 of these. The rest of the top20 brands take a
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8. Marketing Plan
combined 17% share. In terms of market trends, fewer new brandsare being launched
compared with the 1990s, and there has been a clear shakeoutsince 2000. Even the products
offered by leading drinks manufacturers are failing to make major headway against Red Bull,
with products such as Coca-Cola’s Burnabsent from the top five.
Marketing efforts
The heavyweight promotion and expansion of the Red Bull brand, which brought theconcept
of stimulation drinks to the western market, has driven functional drinksgrowth over the
years. The company employs well targeted marketing campaigns thatappeal to the core 18-25
age group. It has promoted its product using its ’Red Bull gives you wings’ slogan and
sponsoring Formula 1 driving; free skiing; BMX biking and other dangerous sports. This has
significantly increased consumer brand awareness of the product, and differentiated it from
its competitors.
Cadbury Schweppes alliance
Red Bull has established an alliance with Cadbury Schweppes in Australia. The alliance has
helped expand the brand’s marketing distribution, allowing more customers to have access to
Red Bull across the nation. Sales, which are already 40% up compared to the same time last
year, are set to rise dramatically as a result of the pending partnership. Red Bull believes
Cadbury Schweppes can help it reach new channels such as food courts, vending machines,
hospitals, colleges and sports and travel facilities, ensuring an increased customer base. Such
partnerships allow the company to reduce competitive threats from its rivals and extend its
sales opportunities.
Weaknesses
Lack of innovation
A number of new energy drinks have been launched in 2004. Raw Energy Fuel Cell is a
Canadian vitamin and glucose drink, which is endorsed by World Wrestling Entertainment.
This product contains no taurine and has less caffeine than rival offerings. It also comes in
330ml PET bottles as opposed to Red Bull’s 250ml cans. Other firms are also making
headway in the market by introducing sports drink packaging and other initiatives. With little
change in its product format, Red Bull is being left behind from the majority of its
competitors. Sting has proven to be a competitor too with a price very low.
Reliant on small product base
The company only markets one branded product, Red Bull Energy Drink (along with a
sugarfree variety). It is therefore vulnerable to market fluctuations, especially as the energy
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9. Marketing Plan
and sports drink category in which it operates is the smallest sector of the overall soft drinks
market. With consumer interest turning away from Red Bull’s major strength of carbonates
towards healthier alternatives, the firm is finding itself as less of a giant in the playing field.
The company would therefore benefit from introducing drinks into other, more successful
drinks categories.
Marketing expense
Extensive marketing efforts are required for Red Bull to boost product sales. The energy
drinks have high association with fashion and youth trends, and the company must project
itself as in line with this in the face of giant rivals such as PepsiCo.
Despite the massive costs Red Bull’s marketing campaigns, its rivals also investinghuge
amounts, resulting in Red Bull gaining smaller returns from these investments.
Opportunities
Diversification of retail outlets
Red Bull has recently detailed an initiative to use vending as a new route to increase sales.
Vending is increasingly acting as an important advertising vehicle and the company is
exploiting this avenue in order to stimulate growth. The manufacturers of Coca-Cola and
Pepsi have long used this route, and firms such as GlaxoSmithKline and Outspan have also
entered the market. Red Bull’s decision to introduce vending illustrates its commitment to
diversify its distribution network and keep up with industry trends.
Extension of product line
New entrants into the market are unlikely, as extensive marketing and promotion are required
to retain market share, needing large financial resources. Datamonitor expects the most
successful new product in the market is likely to be an extension of an existing brand, and
will succeed best in the non-cola carbonates sector of the market. Marketing products as
functional drinks the company may be able to extend its product line, capitalizing on strong
consumer awareness of its brand.
Geographical expansion
With sales derived from 100 countries, Red Bull has an extensive geographical reach. The
company is building upon this by making inroads into developing markets such as India.
With a distribution deal secured with Mount Shivalik and Narang Hospitality Services, these
firms will market distribute and manage the logistics of the drink. Red Bull will initially be
promoted in North, East and Central India, with a view of rolling out the product to further
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10. Marketing Plan
regions in the long-term. The Asia Pacific region holds a good opportunity for growth for
Red bull as in 2003 it accounted for 50.9% of the global market share of the Functional
drinks market (40% of which is energy drinks). The market is also predicted to grow at
CAGR 5.2% in the next five years reaching a market value of around $16.1 billion by 2008.
Threats
Public health concerns
Red Bull’s energy drink has been banned in France due to concerns over its high caffeine
content. Experts fear that the drink could be potentially deadly when combined with alcohol
or when drunk after strenuous exercise. The move has been backed by the EU’s high court,
asserting that the drink is a real risk to public health if consumed in excess. Denmark is the
only other country to ban Red Bull, although authorities in Ireland, Turkey and the US have
expressed concerns about it. The drink is classified as a medicine in Norway and until recent
years was only available in pharmacies in Japan. These issues are creating significant adverse
press for the company.
Maturing market
The energy drinks market has witnessed slowing growth in recent years. In 2003, the
Pakistani carbonated soft drink industry posted volume growth of only +0.6% overall. That
growth rate represents a slight decrease from the 2002 growth rate of +0.8%. It is farbelow
the industry’s annual 2%-4% growth rate range seen throughout most of the1990s. This
slowdown in growth may inhibit the company’s revenue expansion potential going forward.
Consumer awareness of health and well being
Drinks retailers are becoming increasingly aware of the potential growth in bottled water
sales. Per capita consumption of bottled water has now risen to 35 liters, in comparison to one
liter 20 years ago. Consumers are becoming increasingly aware of their health, and bottled
water is associated with health and well being. Although Red Bull has recently launched Red
Bull Sugarfree, the drink’s high caffeine content may remain a concern for the health
conscious.
Strengths - Weaknesses Opportunities - Threats
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11. Marketing Plan
Market leadership Diversification of retail outlets
Marketing efforts Extension of product line
Cadbury Schweppes alliance Geographical expansion
Lack of innovation Public health concerns
Reliant on small product base Maturing market
Marketing expense Consumer awareness of health and
well being
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