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Red Bull Case Study
Mark Stoiko
Marketing Communications (MKTG–4006–OLA)
Due: Friday, October 9th, 2015
Submitted by:
Harvir Chahal, Rachael Martin, Stephanie McDonald,
Gergana Nankova, Danielle Silva, Kirenjit Uppal

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Table of Contents
Executive Summary .............................................................................................................. 3
Introduction........................................................................................................................... 4
Definition of the Problem..................................................................................................... 5
Situational Analysis .............................................................................................................. 5
Alternatives............................................................................................................................ 6
Recommendation................................................................................................................... 7
Marketing Objectives ........................................................................................................... 8
Marketing Communication Objectives............................................................................... 8
Market Analysis .................................................................................................................... 9
External Influences............................................................................................................... 9
Competitor Analysis ............................................................................................................. 9
Brand Analysis ...................................................................................................................... 9
Target Market Profile......................................................................................................... 10
Positioning Strategy............................................................................................................ 10
IMC Strategy....................................................................................................................... 11
IMC Execution (Action Plan) ............................................................................................ 12
Conclusion ........................................................................................................................... 14
References............................................................................................................................ 15

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Setting the Background
Executive Summary
Red Bull is an adaptation of a Tai beverage, introduced and marketed in various countries
by Deitrich Mateschitz, an Austrian entrepreneur. This product basically established the energy
drink market segment in many countries and functions to combat mental stress and physical
fatigue. This product has been successful around the world due to mainly buzz marketing
strategies and word-of-mouth. The company's approach to build the brand has mainly relied on
"anti-brand" based marketing. Red Bull has maintained its strong brand identity because of its
loyal consumer base and unique business tactics. After careful analysis the main issues that exist
in this case is the lack of improvements in regards to a growing target market and the need for a
new repositioning strategy to compete with newer energy drinks. The company has focused most
of its advertising campaigns towards adventurous or risk taking sport enthusiasts. This way Red
Bull avoids mass marketing and has always attempted to attract consumers by restricting
distribution of their product. If these problems are not solved they might possibly be the cause of
a downfall, in the midst of facing major competitors.
There are four major opportunities that Red Bull can take advantage of while being
situated at the highest point in the market. The company can introduce an extension to their
product line which may include: newer flavours to the current energy drink or sports drinks. Red
Bull could quite possibly tap into product niches, previously foreign to the company. Also, to
expand globally would mean to sustain their status. The company would be able to increase
brand awareness after transforming its "anti-brand" based marketed product. Finally, increasing
availability of its products would increase sales from loyal and newer customers. Along with
that, increasing mass media promotions would allow them to simply grow as a company. There
are some minor setbacks that involve these alternatives. New products could destroy the sales of
others, and currency fluctuations and/or cultural differences may occur across the globe. In
addition, legal obligations could be hard to meet due to unhealthy accusations in the past,
expenses and strong competition could become barriers to success.
In order to reach a solution for Red Bulls current problems, it is recommended that the
company increases product availability in accordance to increasing mass media promotions. This
combination of ideas will relate to an existing target market profile and help achieve marketing
objectives. Red Bull will be able to stay up to date with changing trends and transitions within
the current market. By facilitating a recommended IMC strategy, targeted audiences can be
reached through mainstream advertisement channels such as, sports networks and/or music
channels. A larger demographic can be drawn through the radio, magazines, as well as celebrity
endorsements. Lastly, a positioning strategy statement that would fit the company's current
situation in the market would be: Red Bull, an affordable way of gaining energy and an
experience, at the same time.

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Introduction
Red Bull is an Austrian-produced energy drink that competes in a small niche of the
carbonated soft drink market. Dietrich Mateschitz, an Austrian entrepreneur approached the
manufacturer and was granted a licensing agreement to market the product in other countries.
Red Bull is marketed internationally by Red Bull GmbH, in 120 countries and is the leader in the
energy drink segment, with global sales being estimated to be around $2 billion. Red Bull’s
innovative product created the energy drink segment. The drink is designed to help deal with
mental and physical fatigue. Their combinations of ingredients interact with each other and
provide the energy-building benefit. The key ingredients in a 250 ML can of Red Bull are taurine
(1000mg), glucuronolactone (600 mg) and caffeine (80 mg). Sweeteners such as glucose and
sucrose are also included. Red Bull’s market share in the U.S. and Canada are fairly high and
impressive. Their U.S. market share is estimated to be around 46%, making it the leader in this
market with about $240 million in sales. Their market share in Canada is estimated to be about
50%, with $22 million worth of retail sales. Red Bull’s biggest active competitors are Pepsi and
Coca-Cola, which are described to be leaders, not followers. Unlike its competitors, Red Bull
uses distribution in a different manner. Instead of being readily available it restricts distribution
to attract opinion leaders, and depend on the word-of-mouth strategy to raise awareness. Their
target market is made up of young urban males from ages 16 to 29, who either live on the edge
or at least aspire to do so and are typically interested in extreme sports, adventures and
challenging recreational activities. Red Bull is also widely known for their slogan “Red Bull
gives you wings” which fits right in with their product.

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Case Study Model
Definition of the Problem
Red Bull's main concern at the moment involves the rapid growth of their initial target
market, the youth, as well as the need to reposition their market strategy. The company has been
profitable up until the arrival of their major competitors: Hansen, Pepsi and Coca-Cola's latest
energy drink products. Red Bull compared to other products in the market is only positioned as a
product and lacks the strategic management that a brand would have. Moreover, it costs twice as
much as other popular energy drinks, and contains a high dose of unhealthy ingredients, which
may link to long-term side effects. These problems are an addition to the main problem, which is
prioritizing what and how to reposition Red Bull and aiming a newer, more effective strategy to
target not just the youth, but also older men and women.
According to market share, the numbers suggest that even though Red Bull stands first,
Coca-Cola and Pepsi have enough power in their distribution network to surpass Red Bull. With
that being said, it is essential for the company to make changes, as they should not continue
focusing their marketing approaches on mainly young urban males. Instead, redirecting that
attention to other generations beside Generation Y will help reach a larger target audience that
they seem to ignore, and happen to be key targets. As the case mentions, an older truck driver is
in much need of the same boost of energy as a teenager. Before over-achieving brands like Coca-
Cola and Pepsi begin to attract newer and different users, Red Bull needs to step up their game
so that in the end they are not left behind. Red Bull happens to be situated as a mature brand in
the current saturated market, so redefining its strategy and increasing expectations will maintain
their success.
Situational Analysis
Strengths
 Market Leadership
 High global sales
 Marketing strategy and efforts
 Strong brand identity
 Strong customer support and loyalty
 Caters to customers’ needs
 Competitive advantage being a niche
product
Weakness
 Twice the price of competing drinks
 Contains way too much caffeine
 Has an addictive nature, especially when
consumed in large doses and has potential
long-term side effects
 Has been linked to deaths of three
consumers
 Has been banned in Sweden and France
Opportunities
 Extension of product line: introduce
sports drinks and other flavors
 Global expansion
 Increase availability of product
 Increase mass media promotions
Threats
 Health concerns related to the drink
 Falling behind competition
 Limited to a very specific target market
group that is aging
 Growing market of not just national
competitors but also regional competitors

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Based on the SWOT analysis of Red Bull it is evident that overall, it has a very strong
brand identity. It is a secure company due to its loyal customer base and unique marketing
strategies, which allows it to be one of the leading brands in the energy drink market. They
differentiate themselves from their competitors by not relying on typical methods of promotions;
instead they are very dependent on word of mouth which works best for them. However, they are
encountering many setbacks. Compared to their competitors, not only is Red Bull is a bit higher
in price but there are also many health concerns that people have when it comes to Red Bull.
These concerns may go on to affect not only their reputation, but also their sales. With the
market growing, Red Bull also has opportunities to grow and stay on top as the leader. In order
to stay on top and not fall behind its competitors, Red Bull can extend its product lines, expand
globally, and increase the availability of its products along with increasing its promotions. The
marketing is changing and growing very fast; Red Bull has always been the leader and based on
the SWOT analysis, can continue to do so once it makes the necessary changes.
Alternatives
There are a series of alternatives that Red Bull can use to solve their marketing issue.
They include extending the product line, expanding globally, increasing the availability of their
products, and increasing mass media promotions. However, there are both pros and cons
associated with each alternative which can be seen below.
Alternative Pros Cons
Extension of
Product Line
 Expand into untapped product
niches
 Compete with rivals
 Cater to other target market
needs
 New products may destroy sales
of other ones
 Expensive
 Possibility of new products being
unsuccessful
 Risks undermining brand loyalty
Global
Expansion
 Increase brand awareness
 Increase market share
 Cultural differences
 Currency fluctuation:
unfavourable return on
investment
 Slow delivery time
 Expensive
 Different government laws
Increase
Product
Availability
 Increase market share
 Increase profitability thanks to
market segmentation
 An increase in loyal customers
 Attract new customers
 Expensive
 May not be successfulin certain
segments
Increase Mass
Media
Promotions
 Capture new audiences
 Increase customer loyalty
 Increase brand awareness
 Reach larger audiences
 Expensive
 Competitive
 Legal concerns regarding FTCA
rules

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Recommendation
After a thorough analysis of all the alternatives, the ones which would be in the best
interest of Red Bull to implement would be a combination of increasing the availability of their
products along with increasing their mass media promotions. Although they should be
considering widening their target market, this combination still relates to their existing target
market profile. By increasing availability of their products, but keeping the prices the same,
they will be able to offer their products to their customer’s convenience. Due to the fact that Red
Bull’s target market mostly resides in urbanized cities, it is easy for them to pick up the product.
Therefore by making Red Bull available in supermarkets and vending machines it will only make
it much more convenient for the customer by giving them easier access to the product. The
combination of these two alternatives will also help Red Bull achieve their marketing
objectives. They aim to maintain and increase the 50% market share they have in Canada, and
also to increase their percentage of sales of $16 million. By making their drinks more available
to customers in various locations, it will definitely help spike up the amount of sales from $16
million and can lead to that 50% market share increasing. As of right now they only use a word
of mouth promotion strategy, and they have still managed to become the leader in the market so
if they increase their promotions and market their drinks more, this will not only increase their
market share and percentage of sales, but will also make more people aware of their brand. They
can use promotions to change the negative perception of their brand as well. They can make
advertisements which show positive aspects about Red Bull and overshadow the negative
perceptions. They can emphasize the fact that it is a drink that is meant to provide those in need
with an energy boost, and it helps them get through every tough situation. Most of the marketing
and marketing communications objectives are the same, but the other two marketing
communications objectives can also be achieved through increasing promotions and increasing
the availability of the product. The main reason Red Bull was in danger of falling behind its
competitors, such as Coca Cola, was because Coca Cola had a wide range of product availability
since their drinks are sold almost everywhere. Now Red Bull can catch up to them and expand
their presence in the energy drink market along with creating brand loyalty towards them by
simply also offering their products in a variety of places. There will be no concern of their
consumers switching brands when they will have the option to purchase a can of Red Bull from a
vending machine along with the other brands, this will help strengthen their relationship with
their consumers even more and will result in an increase in brand loyalty as well. Their second
objective which is to increase awareness and attract a younger audience along with more women
than their original aging market can be achieved through mainstream media and promotions. Red
Bull can easily capture their new target markets attention through advertisings. Examples from
our IMC strategy suggest that they can target the younger generation through advertisements on
television channels such as sports networks or music channels. They can attract new female
consumers by advertising in popular magazines or even radio stations. Both of these target
groups can be attracted through celebrity endorsements as well. Along with mainstream media,
sales promotions can also be implemented; for example Red Bull could start a “Buy 3, get 1
free” sales promotion at the grocery stores they will be offering their energy drink. These types
of promotions will encourage the consumers to buy the product and it will result in an increase in
sales and their market share as well. Overall, this combination alternative matches their potential
marketing plan and will help provide the best results when implemented.

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Marketing Objectives
1. To maintain/increase the 50% market share in Canada against the competition.
2. To change negative perception of the brand
3. To increase percentage of sales of $16 million so retailer and wholesaler mark ups can be
reduced from 30%
4. To potentially begin repositioning their strategy so they can target younger market and
more women.
Marketing Communication Objectives
1. Increase awareness through advertising in mainstream media to attract younger audience
and not just the aging market
2. Bring awareness to the positives of the brand.
3. Expand Red Bull’s presence in the energy drink market and work to create brand loyalty
so that there is no switching of brands for consumers with their competitors.
4. Help increase sales.
The available budget for the marketing communications plan will be about $1.8 million, which
most will be allocated to the Marketing Communication Plan.

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Marketing Communications Plan Model
Market Analysis
Red Bull is the leader in the energy drink segment. They market in 120 countries and
their global sales are estimated at $2 billion (Case Report: Red Bull, 2014). They are sitting in a
very saturated market that has competitors such as Coca-Cola and Pepsi-Cola introducing new
products to knock Red Bull off the top. Currently the market size is growing with more energy
drink products being presented, but Red Bull still remains in the lead. The market is growing to
accommodate the new generations, with the originally targeted market growing older, so they
need to establish their brand to reach new young crowds. The energy drink market in Canada and
U.S are very saturated, Red Bull holds 46% of the U.S market and 50% of the Canadian market.
External Influences
Some potential external influences that affect Red Bull may include the social and
demographics trends. People are starting to be more health conscious about what they put into
their body, and some of the ingredients found in Red Bull don’t really scream “healthy for you”.
This could be a downfall for the company in the future if they don’t adapt to the health concerns
of people. At the same time the economy is growing and people are working harder during the
days where they will need a boost, and turning to coffee won’t always be the answer. At the end
of the day, Red Bull will remain the most consumed energy drink in the entire market.
Competitor Analysis
The main competitors of Red Bull are Coca-Cola and Pepsi-Cola, although the energy
drink market is growing bigger with other energy enhanced products being introduced. Products
like Monster Energy, RockStar (Coca-Cola product), 5-Hour Energy, Blue Energy and many
more have obtained a portion in the market. Referring to the case, Red Bull still holds the most
market share in North America, as illustrated in the chart below. Although Red Bull has a strong
brand, they need to continue growing and building it to remain at the top of the energy drink
market with its competitors following closely.
Brand Market Share
Red Bull 50%
Hansen (Monster and Lost Energy) 18%
Coca-Cola (RockStar and Full Throttle) 17%
Pepsi-Cola (Mountain Dew Amp and SoBe No Fear 10%
Other Independent Brands 5%
(Chart: Case Report – Red Bull)
Brand Analysis
Red Bull mainly targets young males who are in need of a “boost’, but that quickly
changes as that targeted generation grows older, making it harder for Red Bull to promote to the
correct audience. They need to develop their brand and attract a new generation of young males
and females. An issue that has affected Red Bull’s brand image is that the drink has been linked
to deaths of multiple people. This brings a health concern for potential consumers. The product

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has also been banned from several countries (France, Sweden, Norway and Denmark), which is a
setback for Red Bull considering they won’t be able to reach that part of the European market.
Red Bull does have a different way of promoting and advertising their products. They are not
interested in the traditional ways of advertising, instead they rely on word-of-mouth and “buzz
marketing” to get themselves noticed. Their products can be found mainly at supermarkets, in
vending machines and college and university campuses where they are most needed. Overall Red
Bull will continue to be a number one choice for consumers when it comes to getting a boost to
start the day or to stay awake during exams.
Target Market Profile
Demographic:
Gender: Males Aged 16 – 35
Marital Status: Single, families
Income: Moderate to high
Occupation: Athletes, professionals, and students.
Psychographic:
Red Bull targets those who are into the “extreme” lifestyle or subculture, such as those
who are into motocross, motorcycle racing, soccer, race car driving, snowboarding, skiing,
surfing etc. Most of the promotions are geared specifically for the sheer physicality of their sport,
and because of the fact that all these different sports require a lot of energy and Red Bull can
provide that. Red Bull also targets professionals who are looking for a caffeine boost during their
busy day in the workplace. Red Bull targets those whose lifestyle also includes a lot of social
media, as they are known to have a lot of promotions and news about events online through their
different social media channels. They also target those who listen to certain bands and watch
certain television shows and have the mentality that they want to have fun, be outdoors, and take
risks.
Geographic:
Red Bull’s target market mostly live in urbanized cities and places where it’s convenient
to pick up the product. Red Bull has 70 – 90 % market share in over 100 countries worldwide as
of 2015, which has increased from 2006 when Red Bull mostly had presence in Canada, which
had 8% of the market that USA had.
Positioning Strategy
Red Bull’s positioning strategy is:
1. They are able to adapt to a changing marketing
2. They are engaging, unique, and innovative when looking at how to target their audience.
3. They make you feel a certain way because you are part of their subculture.
4. They create a look at how a lifestyle can be.
5. They use multiple forms of communicating to their audience through traditional media.
6. When you go to one of their events you feel like you are part of an experience.
Positioning Strategy Statement: Red Bull is an affordable way of gaining energy and an
experience at the same time.

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IMC Strategy
The IMC strategy that we’re going to be using to complete our Marketing
Communication Plan is task and objectives. This way we will be able create activities, allocate
costs for it, and create an execution plan to ensure success. The following plans in the table
below will indicate some of the ways we will go about reaching our intended results.
Marketing Communication Plan
Creative Plan Objectives: To show that Red Bull is a good drink to gain
energy from.
Strategies: Advertising and sales promotion.
Execution: The idea is to create excitement for Red Bull, by
evoking an emotional response from the viewers so that they
will want to buy the product and experience becoming part of
the lifestyle & culture we are promoting.
Media Plan Objectives: To bring awareness to a new market and also to
the brand.
Strategies: We want to reach as many of the target market
as possible, utilizing as much time we can. We’re going to
be using cinema advertising, radio broadcasting, and printed
advertisement.
Criteria for reaching target market:
 Needs to be catchy, smart and funny
 Needs to be able to attract the intended audience, so using
celebrities from favourite sports teams or even regular
people.
 Needs to garner sales and introduce people to the brand.
 Needs to be showcased where the intended audience will
see it.
Rationale for Media Selection: The forms of media we
have selected are the best options because our intended
target market will be able to see and experience what we are
trying to get across through our strategy.
Execution: Creating an activities schedule to decide when
would be the best time to go about doing our different
media strategies.
Timing:
 Advertising on channels such as Sports Net,TSN, MTV,
Much Music and the network channels. Advertising in
Canadian men’s magazines (Men’s Health). You want to
advertise particularly when a sporting event is occurring.
Like the commercials that are being aired right now on
TV featuring athletes in extreme sports. It creates an
experience for the consumer.
 When promoting at the cinema we would make sure to
do it for movies that our target audience would watch.

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They are more likely to be receptive to our ads since they
are already at the theatre.
 Doing commercials on our target market’s favourite
stations.
 Advertising in the different magazines our target market
would be likely to buy. Using their favorite sports
athletes to endorse it.
 By doing sales promotions every once in a while, we will
be able to get our target market to buy on the spot more
often.
Coverage: We want to be able to target everyone across
Canada.
Costs: See Budget Summary
Sales Promotion Plan Objectives: To get our consumers, retailers and even
wholesalers to want to buy Red Bull when we have a
promotion. We want to utilize the push strategy by
increasing our on/off shelf duration. We want to increase our
product usage as well.
Strategies: Offering deals that will benefit the consumer to
buy if they purchase on that particular day.
Tactics:
 Doing promotions at local venues that we know would
attract our target market.
 Sending out packages to different retailers and
wholesalers offering them deals if they buy our product in
bulk.
 We can do sampling at supermarkets and stores so that
the consumer can get a taste of our product and
experience it on the spot.
 Budget: $200,000
IMC Execution (Action Plan)
Activities:
 Advertise on the radio: 102.1 The Edge, 92.5 Kiss FM, 99.9 Virgin Radio, 88.1 Indie radio
station year round, but especially in the summer when our target market is on break.
 Advertise on TV on different channels during big sporting events that fit with our target market.
 Cinema promotions: Monitor when big blockbuster movies come out that fit our target market
and advertise the product during them.
 Do print ad’s every few months in the magazines our target market reads,e.g. Men’s Health.
 Sales promotion: Every other month all throughout the summer. Pick different locations to visit to
offer sales promotion. Ex: “Buy 3 get 1 free”.

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Budget Summary:
The following chart is a summary of how much money we will be budgeting for each
promotion in the Marketing Communication Plan:
Marketing Communication Plan Budget
Media Promotion costs $900,000
Cinema Promotion costs $300,000
Print Advertising costs $500,000
Sales Promotion costs $ 200,000
Total Budget: $1,800,000
Blocking Chart:
The following blocking chart is a breakdown of the timeframe that we will be doing the
different activities to promote Red Bull.
Red Bull Blocking Chart 2015-2016
Activities Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Advertising
Radio (throughout the
year)
Television (Especially in
the summer)
Cinema (Big Blockbuster
movies)
Magazines (throughout the
year)
Sales Promotion
Supermarket sampling
(every few months. Twice
in the summer)

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Summary Insights
Conclusion
Red Bull continues to be a successful brand in the energy drink market. However, the
new competition from companies such as Coca Cola and Pepsi Cola had forced Red Bull to
consider changing up their marketing communications practices. In order to remain on top of the
energy drink market, Red Bull could consider a few options including extending its product
lines, expanding globally, increasing the availability of its products and also increasing its
promotions in order to reach a larger audience. This will also help them to gain new customers
and improve brand loyalty.
In order to narrow it down to one recommendation, we had to consider the main goals
that Red Bull wanted to reach. This goal is that Red Bull wants to remain the top competitor in
its field. Red Bull wants to be remain the first brand that comes to a consumers mind when they
think of energy drinks. In order to do this, it was recommended that Red Bull increases the
amount of places where their product can be bought and also to increase the promotions that they
use. This will lead to an increase in sales, market share, and brand awareness.
Red Bull will be promoted through radio, television, movie theatre, and magazine
advertisements which will, for the most part, be done all year long in order to make Red Bull
memorable. The television and movie theatres ads, however, will mainly take place during the
summer time because it will be the best months to properly reach the target market.
Overall, by following through with this recommendation, Red Bull is sure to remain a
competitive force in the energy drink industry and will, most likely, keep the largest amount of
market share. They will keep the loyalty from their customers while, at the same time, attract
new customers through the new use of mass media promotions.

15. 15
References
123HelpMe.com. (n.d.). Red Bull Market Share. Retrieved from 123 Helpme.com:
http://www.123helpme.com/red-bull-market-share-view.asp?id=165996
Ayyar, R. (2015, January 29). Red Bull on Content Marketing. Retrieved from Tarket
Marketing: http://www.targetmarketingmag.com/article/case-study-red-bull-content-
marketing/
Tuckwell. (2014). Chapter 2 Strategic Planning Principles. In Tuckwell, Integrated
Marketing Communications: Strategic Planning Perspectives (Vol. 4th, pp. 57-63). Toronto,
Ontario: Pearson.
Wikipedia. (n.d.). Super Bowl Advertising. Retrieved Oct 5, 2015, from Wikipedia:
https://en.wikipedia.org/wiki/Super_Bowl_advertising