INNOVATIVE MARKETING

Case Study

Group 2AlwinManojRajivTulsi

Sudivya

Who are we• 1982 : Thailand “Krating

Deung”• 1984 -87 : Dietrich

Mateschitz Approached Chaleo yoovidhya with proposal to market the drink in Europe.

• Thai name meaning “Red Water buffalo” was changed to Red Bull for European Markets.

• 1987 : Launched in Austria• 1997: Entered US Markets

• One of today’s most contemporary brands associated with some of the most exciting sporting events around the world and has helped to define the ‘cool’ factor for brands.

• So, it may be a surprise to some that the Red Bull brand is almost 25-years-old.

• The packaging and product has changed little since launch but brand vision and strategy has seen the company evolve to become a dominant player in the energy drinks market.

Target Customers• Young Business

People Consumed entirely by work

• Sports People• Students• Cubbers

(Weekend Parties)

Building the Brand• The strategy for building the brand

has been created around a simple goal. Whenever a consumer is in need of energy, the company wants then to automatically think of Red Bull.

• The brand uses traditional media channels such as TV, cinema and press. But more important has been the role of word of mouth marketing, playing on associations with energy, danger and youth culture.

• This has been fostered through an alignment with extreme sports and adrenalin-fuelled activities, as well as street culture and music events. Through happenings such as these the roles of engagement and brand experience play a critical role.

Innovative Marketing• Avoided usual methods of

marketing, relied on 'buzz marketing' or word-of-mouth.

• A brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports.

• Red Bull's target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus spreading its 'left-field' appeal.

• Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle.

• Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly 'off-the-wall'.

• Cans of the drink were also given out free to people on the street who had been identified as being in need of energy.

• Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs.

Visibility of Brand

• In the US, an 8.3 ounce can of Red Bull sold for around $2, which was around double the price of a 12 ounce can of Coke.

• In the UK, a 250 ml can of Red Bull was sold for around £1.

• A unique feature of Red Bull’s marketing was that the company sold the beverage in only one size

Price

• The company also set about promoting the Red Bull brand directly to Generation Y, the so-called 'millennial': people born after 1981 who were believed to be cynical of traditional marketing strategies.

• This idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses.

• These students would be encouraged to throw parties (as if encouragement was needed!) at which cases of Red Bull would be distributed. The brand managers would then report back to the company, giving the firm a low cost form of market research data

From extreme sports to brand loyalty

• To distil the remarkable success of Red Bull’s strategy, consider these four concepts:

• Consumer engagement through sportsmanship, heroics and ideals

• Viral videos depicting feats of athleticism and bravery – evoking the rush people seek from drinking the product

• Brand recognition through logo saturation

• Attainment of widespread brand recognition and loyalty first among a core demographic, then carefully building a credible bridge to achieve it in another

IssuesThe problem that Red Bull now faces is

how to build on its incredible sales growth, as it has become a mature brand within a saturated market. Among the challenges that Red Bull faces, the following are some of the most serious:

• The loss of its original consumer base, as the 'millennial' become working adults. How should the firm attract a new group of 16 year old consumers?

• Health concerns that have emerged in several countries over problems associated with high intake of caffeine

• Being over-reliant on a single brand. Until 2003, the company only produced one version of Red Bull. A sugar-free version was introduced in that year.

• The mature market for energy drinks has attracted some of the global firms, such as Coca Cola, Pepsi as well as Asda/Wal-Mart, with their own brands seeking to gain a competitive advantage over the market leader

Competitors• Hansens Natural – 18%• Coca Cola (Rockstar

full throttle) – 17%• Pepsi (Amp, Fear)- 10%• Independent/ Reginoal

– 5%

• But it’s marketing strategies take into account the indirect competitors too.

Suggested• As the market matures and

new players come to the fore, Red Bull has to review it’s marketing strategy

• Need to maintain health concern issues to ensure it does damage the brand image

• Build the strength of brand and still maintain customer and stakeholder value while building further brand equity.

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