UNIVER

SITY OF
SURREY

RED BULL: 3 YEAR BRANDING

STRATEGY

MARKETING
GROUP 63

MISS SIRADA UDOMSAK

(6225345)

MR FARHAN KHAN

(6243110)
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1
MR MOHAMAD BASIL ABUTAHA
(6067107)
MR JEHANGIR AHMED KHAN

(6229944)

MR FRANCESCO
TENERO
REPORT
BY

(6241237)

Executive Summary
Red Bull is amongst the fastest growing brands in the world competing with the likes of Lucozade, Gatorade and
others in the energy drinks category. The company has positioned itself as a premium brand for the youth,
athletes and party animals worldwide who take pride in consuming a Red Bull can. Using a differentiation
strategy, the company entered the European market and slowly took over the world with its storm of effective
marketing. The most intriguing part of Red Bulls market plan is their integration of marketing communications
(IMC). They have been actively involved in implementing buzz marketing strategies as well as sponsorship.
Furthermore, this report also focuses on the 3 year strategy developed by Red Bull for a possible brand
extension in which they intend to tap into a new market by introducing a protein shake for people who are keen
on working out and muscle toning. By analysing the ACORN segmentation methods, they segmented different
markets and targeted the ones that fit the criteria of their protein shake. They started off with a bit of viral
marketing through different social networks to create a hype of their product by using product placement. An
effective marketing mix of the 4Ps would help them achieve becoming a key player in an already competitive
market. The 4Cs methods would be used to position properly the new product in order to maintain and enhance
the brand image.

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TABLE OF CONTENTS
1.

INTRODUCTION................................................................................................ 3

2. KEY SUCCESSFUL FACTORS............................................................................... 3

2.1 Segmentation, Targeting, and Positioning....................................................3
2.2 Product......................................................................................................... 4
2.3 Sponsorships and Buzz Marketing..............................................................5
3. RED BULL 3 YEAR STRATEGY: RED BULL MUSCLE..............................................6
3.1 Segmentation and Targeting.........................................................................6
3.2 Positioning.................................................................................................... 9
3.3 Marketing Mix............................................................................................. 10
3.3.1 Product and Packaging.........................................................................10
3.3.2 Price..................................................................................................... 10
3.3.3 Place..................................................................................................... 10
3.3.4 Promotion............................................................................................. 10
CONCLUSION....................................................................................................... 11
REFERENCES........................................................................................................ 12
APPENDIX............................................................................................................. 15
MEETING LOGS.................................................................................................... 16

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1. INTRODUCTION
This report will discuss 3 critical success factors of Red Bull which derive from segmentation, targeting and
positioning, the product, and sponsorship. These factors have led the company to be successful in the past 20
years. The key factors will formulate a marketing strategy for the launch of a new Red Bull product, Red Bull
Muscle and how it will continue to grow in three years time. The marketing strategy will state how this product
will carry Red Bulls brand image to the next level and capture the market of protein shakes.
The content of this report is only limited to UK market.

2. KEY SUCCESSFUL FACTORS

2.1 Segmentation, Targeting, and Positioning
The STP process is the technique to segregate the entire market into different divisions in order to target and
position a product or service better (Baines et al., 2008).
Focusing on Red Bull, they created a new category of drinks, the energy drinks, in which the company used a
differentiation strategy to enter the niche market. Red Bull has set its position in the beverage market creating a
category of its own. In this way Red Bull has defined its own positioning strategy to be known for quite some time
as one of leaders in the energy drink category (McDonald, 2011). The brand and the product itself are perceived
as a premium product in this new market sector where the company has positioned its strategy focusing on the
benefits offered. To meet their goals, Red bull set the price of the drink higher than its competitors as it claims
the drink can give tangible benefits (Keller, 2004).

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Moreover, Red Bull desires to be seen as a driver of performance. The brand is placed in sports, positioning its
energy drink as being beneficial to athletes (Gorse et al., 2010). According to the Red Bull official website, Red
Bull consists of unique high quality ingredients to vitalise body and mind (Red Bull, n.d. a). As a result, this
shortly became a competitive advantage of the company. As Gorse et al. (2010) mentioned, the company
entered the market by focusing on Generation X to create brand awareness, and then developed the product
that met Generation Ys preferences. Target customers such as athletes, workers, clubbers, and college students
became loyal to the product not because of its taste but its efficiency to improve attention, reaction time,
concentration, emotional status, stamina, and speed (McDonald and Boudway, 2011).

Innovation

Red Bull

Taste

Function

Common carbonated drinks

Tradition

2.2 Product
Armstrong et al (2012) define the product as anything in the market that can provide benefits in order to meet
customers needs. Although Marketline in 2012 didn't recognize the product itself as an effective key of the Red
Bull success, focusing their attention more on the promotional aspect. Other authors, such as McDonald and
Boudway (2011), see the new Austrian energy drink a revolutionary item that cracked a hidden market.
It was based on an energy drink sold in Thailand by Chaleo Yoovidhya known as Krating Daeng, which was very

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common for its stimulating proprieties. Red bull took Krating Daeng's main ingredients, caffeine and taurine, to
create this brand-new and unique beverage designed to give the user a burst of energy.
The fact that Mateschitz understood there were no similar drinks in Europe, led him to introduce the drink in the
Austrian market in 1987. After 7 years of its release, in 1994 Red Bull was able to expand into the UK market
(Hein, 2001).
In addition, the brand name Red Bull and its logo also took origin from its Thai predecessor. In fact Krating
Daeng sponsored some boxing and bullfighting competitions. It is from the latter sport event that Mateschitz
chose the name for his company and the image that we can now see on Red Bull cans (Gorse et al, 2010).
Beside the gives you wings slogan, created to quickly communicate the main feature of its unequalled drink,
Red bull focused on packaging to strongly differentiate the new product from the existing carbonate drinks such
as Coca Cola or Pepsi.
Mateschitz and his team spent three years to find the correct can design that could effectively represent the
company image before launching the new product.
The aim was to allow Red Bull cans to stand higher than the competitors and ease the retailers stacking them in
small spaces. Additionally, the single product offering by the company made the Red Bull drink unique, by
limiting to just a few flavours such as Red Bull Cola (Marketline, 2012).
However this exclusivity can limit Red Bull to consider future developments. Growing competition may affect the
companys success unless they consider creating a fresh formula before its existing one becomes obsolete
(Gillander, 2012)

2.3 Sponsorships and Buzz Marketing

Brassington and Pettitt (2006) define sponsorship as a relationship in which a financer, in search
for certain commercial benefits, supports an individual, an organisation or an event.
One of Red Bulls critical success factors is considered under its heavy sponsorship and so called buzz
marketing techniques. Red Bull has shifted from the nightlife mixer to become recognised as a sports energy
drink for increased performance and stamina. Red Bull managed to step into the sports industry after the
Flugtag event. (Gschwantner, 2004).
Red Bull is innovative in terms of sponsorship. Apart from actually paying to have its name displayed for publicity
in sporting events, the company has an active role in running, developing, and creating events. To illustrate this,
Red Bull owns two soccer teams, and two Formula 1 teams with an intention to maintain long term possession
and success (Red Bull, n.d. b).

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Besides team sports, Red Bull also focuses on individual athletes in order to publicise the brand in less popular
sports and to reach the niche audiences for example X Fighters Motocross Freestyle, Red Bull Rampage, and a
Free Ride mountain Bike Competition (Gschwantner, 2004).
Furthermore, Red Bull provided a helicopter to take those base jumpers and cliff divers to unusual mountain
ranges as the attractiveness depends on the level of danger of the events. Through creating an edgy and
energetic appearance by making the brand stand out, Red Bull was able to increase its reputation with its
customers through online sharing (DataMonitor, 2007).
According to Hein (2011), Red Bull uses its own marketing strategy in order to strengthen the brand awareness.
As Sweeny (2004) mentions, the events are not only limited to sports-based projects, Red Bull even established
its own music academy, an internet radio station, a television station, a record label, and music festivals. The
company also makes efforts to set up breakdancing competitions to access urban and street cultures. Red Bull
aims not to gain an economic advantage but rather to increase its recognition (Marketline, 2012).

3. RED BULL 3 YEAR STRATEGY: RED BULL MUSCLE

In order to maintain and enhance Red Bulls brand image, the company is advised to focus on brand extension
over a 3 year period. A way in which Red Bull can pursue this is by creating a new formula to be consumed by
weight lifters and body builders. This will be in the form of a readymade protein drink.

Intrawebnet (2010).

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3.1 Segmentation and Targeting

A basis of conducting psychographic segmentation arose from reviewing a recent government report forecasting
the increasing obesity levels amongst UK citizens. If no action is taken to improve lifestyle habits, 60% of men
and 50% of women will be obese by 2050 (KeyNote, 2011). The same article highlights the importance for
consumers to maintain good healthy lifestyles by availing the opportunity of health clubs, that are Red Bulls
main marketplace.

As the table shows an increasing trend in subscribing to health clubs, Red Bull foresees this as a chance to
break into a new market to target body builders and weight lifters (Key Note, 2011).
ACORN Segmentation Methods
After understanding the individual characteristics of our potential target market, Red Bull has grouped their
customers using the ACORN classification. Wealthy achievers and the urban prosperity groups were identified.

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(Caci information solutions, n.d.)

Considering the characteristics of the product and the existing brand image, the table below illustrates the main
characteristics of the chosen target market.

Variable

Typical user of Red Bull Muscle

Behavioural

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Benefits sought

Energy and performance

Purchase occasion

Intense post workout

Purchase behaviour

Solus buyers

Usage

Heavy

Perceptions, beliefs and values

Favourable for now

Psychographic
Lifestyle

Health and Fitness conscious, sporty

Personality

Rugged outdoorsy and tough

Profile
Age

18 40

Gender

Males

Life cycle

Young singles, middle age

Social Class

Upper middle and middle

Terminal education age

18+

Income

15,000 IAT +

Geographic

Urban

Geodemographic

Wealthy Achievers Group A, Urban Prosperity Group D and E.

(Jobber, 2010)

3.2 Positioning
After reviewing the products offered by competitors in terms of prices and ingredients, Red Bull will position its
Protein Shake as shown in the perceptual map (Workout world, n.d.) (Bodybuilding, n.d.). The way this drink

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distinguishes itself from other competing protein shakes is by containing more natural rather than artificial
ingredients. To clarify this differential advantage, Red Bull Muscle will be associated with the slogan Natural
Supremacy. Furthermore, Red Bull Muscle will base its credibility on the existing brand image; energy and
performance drivers. In the similar way, bodybuilders and weightlifters reflect themselves as proactive, energetic
and sporty. Finally, Red Bull will deliver the same consistent message maintaining some features of the existing
sister brand such as the domain logo and packaging (Kotler and Keller, 2012).

Natural

Red Bull Muscle

Premium (/ml)

CNP
Economical

(?ml)

MaxiMuscle, Lean body

EAS

Artificial

(See appendix)

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3.3 Marketing Mix

3.3.1 Product and Packaging
Red Bull Muscle is a ready-made protein shake. The core function of the product is to provide protein as a key
component. It helps to build muscle and aid recovery for body builders and weight lifters after their workout. The
differential ingredient is the green tea extract. As Sinija and Mishra (p. 239) states, green tea with its thermo
genic properties can also promote faster metabolism of fats and sugars.
Concerning the actual product, Red Bull has decided to conform to its original packaging in the form of a 355ml
aluminium can. As the companys website claims, aluminium cans are neutral in taste and are oxygen-proof in
order to maintain the freshness of the drink and high quality for an extended period of time (Red Bull, n.d.).
Amongst several ready-made protein shakes that are usually consumed in bottles, Red Bull Muscle will be
consumed in an aluminium can to differentiate from other competitors.

3.3.2 Price
After reviewing competitors prices, the Red Bull Muscle will be priced as a premium drink in order to maintain
the brand image. Online purchasing of the product allows bulk buying for customers to save costs.

3.3.3 Place
Red Bull Muscle can be purchased from the big four supermarket stores, e-commerce, and in health clubs.
These placement techniques chosen will help reach Red Bulls target market. Through product innovation, Red
Bull can now allow users of the product to purchase directly from the website.

3.3.4 Promotion
Red Bull can make use of direct marketing by sending sales representatives to health clubs to promote the
protein drink and provide free samples and product information. The company will use digital marketing to utilise
social media such as YouTube and Facebook to advertise the product. Red Bull will use experts from the health
and fitness sector to promote the drink since they have knowledge and hands on experience about the product.
By using experts, customers are more inclined to trust and believe the product benefits.
The product will be launched from January 1 st 2013 in time to meet the needs of body builders and weight lifters
to comply with their new years resolutions to stay fit (KeyNote, 2011). Four weeks prior to the launch, a teaser
trailer will be released on the Red Bull YouTube channel to encourage viral marketing techniques.
In order to create short term buzz marketing Red Bull will use product placement methods. Using celebrities
such as Dwayne The Rock Johnson, who has an active Facebook and Twitter account as a form of digital
marketing enables integrated marketing communication methods. With the intention to promote the release of
Red Bull Muscle, Red Bull aims to advertise the product in The Fast and Furious Six movie next May 2013

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(IMDB, 2012). The purpose for selecting The Rock is that he is an icon for bodybuilders as well as a main
character in the upcoming movie.

CONCLUSION
In conclusion, there are 3 important factors behind Red Bulls success which are its effective STP, its differential
product, and its unique sponsorships. A 3 year strategy of Red Bull will be based on brand extension to maintain
and enhance their traditional brand image and characteristics through Red Bull Muscle.
Moreover, Red Bull should consider extending its existing product variety, for instant, more flavours and the use
of more natural ingredients. Despite the product variety extension, Red Bull should conduct research and
development for brand stretching to Energy Chocolate bar or Red Bull Powder in order to maintain and prolong
the brand in the future.

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REFERENCES
Armstrong, G., Brennan, R., Harker, M. and Kotler, P. (2012) Marketing an Introduction. 2nd Edition.
Harlow: Pearson Education Limited.
Baines, P., Fill, C. and Page, K. (2008) Marketing. New York: Oxford University Press Inc.
Big Red Management (no date). Available at: http://www.bigredmanagement.com/commercial/brandambassador/ (Accessed: 6 November 2012)
Bodybuilding (no date). Available at: http://uk.bodybuilding.com/store/rtd.html (Accessed: 7
November 2012).
Brassington, F. and Pettitt, S. (2006) Principles of Marketing. 4th Edition. Harlow: Pearson Education
Limited.
Caci information solutions (no date). Available at: http://mmedia.glos.ac.uk/modules/mu308/links/acornbrochure.pdf (Accessed: 4 November 2012).
Datamonitor (2007). Lucozade and Red Bull case study: repositioning energy drinks to meet consumers' needs.
London: Datamonitor.
Fahy, J. and Jobber, D. (2012). Foundations of marketing. 4th ed. London: McGraw-Hill.
Gillander, A. (2012) Red Bull: Success Using Buzz Marketing. Victoria: University of Victoria, Gustavsson School
of Business. Bachelor of commerce best business research papers, 06/2012.
GoGeo (2010). Available at: http://www.gogeo.ac.uk/gogeo-java/resources.htm?
start=170&cat=2&newscat=2010&archive=1 (Accessed: 7 November 2012).
Gorse, S., Chadwick, S. and Burton, N. (2010) Entrepreneurship through sports marketing: A case analysis of
Red Bull in sport, Journal of Sponsorship, 3(4), pp. 348-357.

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Gschwandtner, G.G. (2004) The Powerful Sales Strategy Behind RedBull, Selling Power Magazine, pp. 1-11
[online]. Available from: http://www.redbull.com/images/historysection/pdf/1/Selling_Power_DM_Sept.pdf
(Accessed: 26 October 2012).
Hein, K. (2001), A Bull's Market, Brandweek, 42(22), p. 21-24. Business Source Complete, EBSCOhost
[online]. (Accessed: 1 November 2012).
IMDB (2012). Available at: http://uk.imdb.com/title/tt1905041/ (Accessed: 2 November 2012).
Intrawebnet (2010). Available at: http://intrawebnet.com/pics/funny-pics/can-art-red-bull-can-weightlifting-madefrom-red-bull-cans/ (Accessed: 2 November 2012)
Jobber, D. (2010) Principles and Practice of Marketing 6th Edition Maidenhead: McGraw-Hill Education.
Keller, K.L.K. (2004) Building brand equity in non-traditional ways, Coolbrand Storytelling [online]. Available from:
http://www.coolbrandsstorytelling.org/dmdocuments/expert_cases/ECRedbull.pdf (Accessed on: 28 October
2012).
Key Note (2011) Health Clubs & Leisure Centres. 11th edition. Hampton: Key Note. Key Note [online] Available
at: http://www.keynote.co.uk/media-centre/in-the-news/display/health-clubs--leisure-centres/?articleId=53
(Accessed: 3 November 2012).
Kotler, P. and Keller, L. (2012) Marketing Management 14th edition. New York: Pearson Education Limited.
Marketline (2012) Red Bull: A trailblazer in marketing strategy. London: Marketline [online] Available at:
http://web.ebscohost.com/ehost/detail?vid=3&hid=106&sid=dc039334-ae8f4d8480f8c8d5fc37fd40%40sessionmgr113&bdata=JkF1dGhUeXBlPWlwLHNoaWImc2l0ZT1laG9zdC1saXZl#db
=bth&AN=82195884 (Accessed: 30 October 2012).
McDonald, D. (2011) Red Bull's Billionaire Maniac Bloomberg Businessweek, 19 May, pp. 1-5.
McDonald, D. and Boudway, I. (2011) The Mastermind of Adrenaline Marketing Bloomberg Businessweek, 2329 May, pp. 64-70.
Red Bull (no date, a). Available at: http://www.redbull.co.uk/cs/Satellite/en_UK/How-it-allstarted/001243026264745?pcs_c=PCS_Article&pcs_cid=1242989363202 (Accessed: 21 October 2012).

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Red Bull (no date, b). Available at: http://www.redbull.co.uk/cs/Satellite/en_UK/Sports/001242758893111

(Accessed: 24 October 2012).
Red Bull (no date, c). Available at: http://www.redbull.com/cs/Satellite/en_INT/can-lifecycle/001242939604115?
pcs_cid=1242972066285&pcs_pvt=chapter2 (Accessed: 19 October 2012).
Sinija, V.R. and Mishra, H.N. (2008). Green Tea: Health Benefits, Journal of Nutritional & Environmental
Medicine, 17(4), 232-242.
Sweeny, M.C. (2004) Red Bull loses fight with 'copycat' Mean Fiddler. Haymarket Business Publications Ltd
[online]. Available at: http://www.marketingmagazine.co.uk/News/EmailThisArticle/210711/Red Bull-loses-fightcopycat-Mean-Fiddler (Accessed: 11 October 2012).
Workout world (nodate). Available at: http://www.workoutworld.co.uk/supplements/bars-ready-todrinks/default.aspx?View=All (Accessed:7 November 2012).

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APPENDIX
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MEETING LOGS
MEETING 1 Monday 15th October 2012 (1 Hour 30 Minutes)

Discussed the assignment and decided how the group will approach the task.
Brainstormed ideas on how we think Red Bull has been successful.
Allocated research to each group member to find journals and articles on Red Bull paying specific
attention to differentiation and positioning.

MEETING 2 Friday 19th October 2012 (1 Hour)

Discussed what the group had found.

Research how other Red Bull competitors improved their strategy and how they have been successful.

MEETING 3 Monday 22nd October 2012 (3 Hours)

Discussed how Red Bull became widely recognised from their heavily use of sponsorship techniques
including extreme sports.
Started writing up assignment as a group.

MEETING 4 Wednesday 24th October 2012 (2 Hours)

Debated ideas for Red Bulls 3 year strategy (Red Bull Gasoline, Red Bull Coffee).

MEETING 5 Monday 29th October 2012 (4 Hours)

Discussed the 4Ps.

MEETING 6 Thursday 1st November 2012 (3 Hours)

After meeting with the module Co-ordinator to discuss assignment we had a clearer idea for the 3 year
strategy.
We continued to brainstorm ideas to maintain and enhance Red Bulls branding strategy and decided to
create a new product through brand extension, Red Bull Muscle (readymade protein shake).
Started to discuss and focus on Segmentation, Targeting, and positioning for Red Bull Muscle.

MEETING 7 Thursday 8th November 2012 (4 Hours)

Started typing up Segmentation, Targeting, and Positioning for Red Bull Muscle.
Introduction.
Conclusion.
Executive summary.
Compiled all our references.

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MEETING 8 Friday 9th November 2012 (4 Hours)

Compiled group work together.

Contribution sheet.
Checked our work on Turnitin to see if whether we had made any mistakes.
Submitted

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