Red Bull GmbH: It Gives You Wings

Citra Nurul Uhthi 17/417223/PEK/22786

Desfa Seralantu Sukamdi 17/417225/PEK/22788
Galih Pratama Pujiyanto 17/417245/PEK/22808
Hana Ivana 17/417248/PEK/22811
Helena Hanindya Kartika Putri 17/417251/PEK/22814
Company Profile
• Red Bull is an energy drink sold by Red Bull GmbH, an Austrian company
created in 1987. Red Bull has the highest market share of any energy drink
in the world, with 6.06 billion cans sold in a year (as of 2016)
• Austrian entrepreneur Dietrich Mateschitz was inspired by an existing
energy drink named Krating Daeng, which was first introduced and sold in
Thailand by Chaleo Yoovidhya. He took this idea, modified the ingredients
to suit the tastes of Westerners, and, in partnership with Chaleo, founded
Red Bull GmbH in 1987 in Chakkapong, Thailand. In Thai, daeng means
red, and krating is the word used for a large bovineanimal called a gaur in
formal English. In colloquial English, a gaur is more commonly called a
bull.
Red Bull is sold in a tall and slim blue-silver can, while Krating Daeng is in a shorter gold can.
Entering the Market
• Mateschitz chose a different route to enter the market. He crafted a marketing
agreement with TC Pharmaceuticals owner, Chaleo Yoovidya. This allowed him to
springboard off the competencies and existing infrastructure of TC Pharmaceuticals and
enter the market with minimal upfront investment.
• An agreement was reached. Each partner invested $500,000 of seed money. Mateschitz
and Yoovidya each took a 49 percent stake in the company. The remaining 2 percent
stake was given to Yoovidya’s son, Chalerm. Although the Thai side of the ownership
equation had a slightly majority stake, it was decided that Mateschitz would assume full
responsibilities for running the new company.
• Both the company and the product would be called Red Bull, a translation of the name
Krating Daeng into English. The original Krating Daeng formulation would be modified
into a lighter and bubblier recipe.
• Mateschitz the right to market Red Bull to every country in the world except Thailand.
Meanwhile TC Pharmaceuticals could continue to market Krating Daeng anywhere. Also
the new company would have full access to the brand name, logo, and formulation. Red
Bull GmbH, an Austrian company, was born.
Marketing Mix
The Product
• Red Bull has, basically, been a single-product company with a single-
product strategy. This strategy has worked to catapult the brand to
the top of a market, which it has defined.
• While the original Thai version was thick, sweet, and flat in taste, the
new Red Bull emerged lighter, berry flavoured, and carbonated. He
put it in a tall thin blue can and targeted a young, hip, hard playing,
and hard partying demographic.
• It claims that drinking Red Bull replenishes the lost Taurine to allow
the drinker’s body to regain its full vital processing and thus enhance
performance.
The Company
• Outside the scope of the Red Bull brand, the company has actually
ventured into several complementary businesses.
• There are a Red Bull–sponsored soccer team, a Formula 500 team,
and an aerobatic aircraft team. Also a subsidiary brand, Carpe Diem,
has been created to sell healthy and natural beverages. Additionally,
the company bought Laucala Island in Fiji where it built and now
operates a seven-star resort.
• Today Red Bull is sold in 160 countries worldwide, with sales of about
4 billion cans a year. The company is based in Fuschl am See, Austria.
Promotion
• The original Krating Daeng was marketed to a blue-collar, working-class demographic. It
was a cheap pickme- up to help Thai shift workers and drivers stay awake on the job.
• Mateschitz’s vision for his version of Red Bull did not target this demographic. Instead, he
decided to create an energy drink for young vibrant people that would fuel a “play hard,
party hard” lifestyle. An 18 to 25 year-old demographic was targeted. Red Bull’s slogan is
“It gives you wings,” promising optimum focus and performance for its drinkers.
• TV advertisement, billboards, and traditional print ads are shunned in favor of events,
sponsorships, and people-to-people approaches that promote the cult of Red Bull.
• Red Bull has also borrowed inspiration from Krating Daeng by using sports sponsorship as
a promotional vehicle.
• Operating in 160 countries certainly requires differentiation. However, Red Bull has
managed to be surprisingly consistent in its promotion and in its product worldwide.
 Controversy
Red Bull has been the subject of great controversy.
• In many countries the ingredient Taurine is considered a drug and must
receive governmental approval before being allowed in a product.
Because of this, Red Bull has been banned in many countries including
France, Norway, and Denmark.
• Another issue arose when Red Bull launched its Cola, and it was found
to contain small traces of cocaine. This caused quite a ruckus in Hong
Kong and Taiwan.
• Tragically, there have actually been several deaths of young people
after consuming numerous cans of Red Bull. Although there is no
evidence that Red Bull directly led to these deaths, they caused an
uproar and created negative press coverage. The combination of
alcohol and Red Bull is another hot button issue.
Controversy
• Although controversy has always surrounded Red Bull, it has never
interfered with the upward trajectory of sales and growth.
• One Red Bull promotional video featured a “BASE jump” from the
Christ the Redeemer statue in Rio de Janeiro.
• https://www.youtube.com/watch?v=m0DRxHLGSHM
 Competitive Environment
Red Bull holds firmly to its number one position and continues to grow
At the same time, it is losing market share each year as the entire energy drink sector expands
Major global players like Pepsi and Coke as well as smaller entrants are jumping in with both feet.

Western Europe • Japan

North America
Rest of Asia

Extended Market
North America

40 % market shared 35 % market shared

 Western Europe

Mad bad at Germany Dark Dog at Yunani Shark at Austria Battery at Finlandia
Blue Monster at Spanyol strengthened to third place
a number two The product is
ranking offered in a 330
names that mirror the Red Bull format. ml
Japan

Nutraceutical
100 ml

Chocola BB Solmac
for skin care for hangovers
The Rest of Asia Extended Market

• Afrika
• Rusia
• India2003
• Jepang

• Brazil, after political

problem (1997)

• AfrikaNigeria
Discussion
1. Dietrich Mateschitz is the driving force behind Red Bull. What do
you think the company should consider in terms of his
successorship?
Successor saat IPO?
2. Do you think that Red Bull’s youthful consumers will grow out of Red
Bull? Do you think this will affect its continued dominance of the
market? What do you think that Red Bull should do to address this issue
in its marketing?
• Kemungkinan tidak,due to trend of healthy lifestyle. Misal utk party
paling hits, Coachella ini ga ada RedBull
https://www.coachella.com/guidebook/drink/
• Shifting ke segmen berbeda, misal konsentrasi di sport activity aja.
3. Do you think that Red Bull should expand its product
line or stick to a, basically, single product strategy?
4. What do you think about the Austrian version of Red Bull competing
against the Thai version of Red Bull in many Asian countries? Do you think
that this will be an impediment to Red Bull’s growth in Asia?
• Red Bull versi Austria yang bersaing dengan Red Bull
versi Thailand di banyak negara Asia bisa menjadi
penghambat bagi pertumbuhan Red Bull karena
persaingan ini dapat menyebabkan brand dilution
dan cannibalization.
• Red Bull Austria diposisikan sebagai produk
premium untuk anak muda yang dijual dalam
kemasan kaleng slim sementara Red Bull Thailand
dijual sebagai minuman energi untuk pekerja yang
dijual dengan kemasan botol dan kaleng berwarna
emas. Kedua minuman ini memiliki karakteristik dan
target pasar yang berbeda sehingga seharusnya
keduanya tidak dijual dengan merek yang sama
karena dapat menimbulkan kebingungan di benak
konsumen.
• Kratingdaeng cenderung lebih populer daripada Red
Bull untuk pasar Asia.
5. Do you think that the controversy around Red Bull helps or hinders its
marketing efforts? Do you think Red Bull has a Corporate Social
Responsibility towards its consumers?
Kontroversi Red Bull menghalangi sekaligus membantu upaya pemasarannya. Kontroversi tentang kandungan Red Bull
membuat Red Bull ditolak oleh beberapa negara seperti Perancis, Norwegia, dan Denmark. Masalah lain adalah Red Bull Cola
yang ditarik peredarannya di Hong Kong dan Taiwan karena diduga mengandung kokain dan menyebabkan kematian.
Namun disisi lain, Red Bull juga memanfaatkan kontroversi untuk membantu pemasarannya. Red Bull memiliki banyak video
tentang olahraga ekstrim yang berbahaya dan bahkan ilegal. Red Bull dengan sengaja menggunakan video yang kontroversial
untuk promosi dan menguatkan citra mereknya sebagai merek yang berani menantang aturan.

CSR Red Bull:

• Red Bull ECO-Cooler menggunakan 45% energi lebih sedikit daripada kulkas konvensional. Red Bull telah
menginstal 780.000 ECO Cooler
• Kaleng Red Bull lebih ringan 60% dari beberapa tahun yang lalu
• Red Bull menggunakan kaleng aluminium yang 100% dapat didaur ulang
• Teknik produksi Wall-to-Wall yang digunakan oleh Red Bull menghemat 8.750.000 km perjalanan truk setiap
tahun. Teknik ini melibatkan pembuatan dan pengisian kaleng di situs yang sama dan menghemat lebih dari
6.641 ton emisi CO2 setiap tahun
• Kampanye Red Bull Wings for Life mendanai proyek-proyek penelitian untuk cedera tulang belakang
6. What do you think about Red Bull’s strategy in Japan? Do you think this
market is worth the emphasis that Red Bull is placing on it?
2015 Energy Drink Market Share in Japan
• Red Bull mengganti kandungan produknya sebagai
strategi untuk memasuki pasar Jepang. Namun,
Jepang adalah pasar yang sulit dimenangkan oleh
Red Bull.
• Pasar minuman di Jepang didominasi oleh
minuman tonik. Minuman energi yang sudah lebih
dulu berada di pasar memiliki basis konsumen yang
kuat dan akan sangat mahal bagi merek baru
seperti Red Bull untuk memperjuangkan basis
konsumen di Jepang yang menyusut seiring dengan
tingkat kelahiran yang menurun dan populasi yang
menua dengan cepat.
• Orang Jepang terbiasa dengan minuman energi
yang dikemas dalam botol 50ml, 75ml, 100ml atau
150ml. Bagi orang Jepang, Red Bull lebih terlihat
seperti soft drink dan bukan minuman berenergi.
Conclusion