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Abraham Lincoln University Red Bull GmbH Product Position Case Study Discussion

Abraham Lincoln University Red Bull GmbH Product Position Case Study Discussion

Question Description

Case Study Redull

Case Study-Red Bull Red Bull GmbH is a privately-owned company based in Austria. Red Bull energy drink is based on the Thai energy drink, Krating Daeng (Thai for Red Bull), first produced in Thailand by the T.C Pharmaceutical Company. The formula became popular as a tonic for blue-collar workers in Thailand. Red Bull Beverage Company Inc. became a subsidiary of the T.C. Pharmaceutical Company in Thailand in 1984 and Red Bull GmbH began marketing Red Bull in Austria in 1987. One million cans were sold in Austria during the first year of production. The original formula was adjusted for “western” tastes adding sugar and carbonation. Its unique selling proposition was increased stamina and mental concentration relevant to its initial target market of long-distance truck drivers. Red Bull was introduced to the US in 1997 focusing on four western states: California, Oregon, Texas, and Colorado. While the target appeal was initially to athletes, it soon became clear that Red Bull had a special appeal to young, white-collar workers looking for endurance for after-hours “clubbing.” Red Bull is marketed in a unique, narrow, 8.3-ounce can be retailing for about $2. A consumer can simply purchase one can, one size, one label, and one sticky-sweet liquid. The can looks like a global product. Red Bull GmbH has divided the US into eight decentralized sales units-each responsible for creating distribution channels, making sales calls, and developing targeted marketing strategies for the unit. Its slogans, “Red Bull gives you wings” and “Red Bull vitalizes body and mind” speak directly to the core product. Today, global sales of Red Bull exceed $1billion annually and hold a 65% share of the energy-drink market (45% in the US). Red Bull has targeted its young demographic (16 to 29 year-olds) with buzz. There’s more to the guerrilla strategy than just building buzz at clubs. Student brand managers (brand evangelists) are enlisted for college campuses and sales teams will open off premise accounts at convenience stores near colleges, gyms, health-food stores and supermarkets Part of their strategy is borderline “hokey”-they have representatives seek out individuals who need energy and give them a free can Red Bull’s strategy does not include the traditional mass-marketing media. The consumer will not see billboards, banner ads, or Super Bowl TV spots. Red Bull is targeting a market that has grown skeptical of the traditional media message. Its target market is looking for uniqueness authenticity and self-identity in the brands they choose. In the overcrowded beverage market, Red Bull has become the “anti-brand.” Red Bull sponsors contests, special events, and a variety of sporting events-especially focusing on auto racing and extreme sports. Its sporting-event sponsorships are intended to “speak to” athletes and give credibility to that sport on behalf of the participating athletes. Red Bull has formed a unique feeling of community within many sports groups. In 2007, Red Bull joined the “virtual world” by signing an agreement with Sony for exclusive content within its Playstation@ Home platform. It seems that Red Bull willl have its own “space in the virtual world, coming in the form of its very own island. Questions :

1.How would you describe Red Bull’s product position?

2. Where in your local grocery store are you most likely to find Red Bull?

3 How Red Bull promotes its products?

for the second question note that I live in (Oman, salalah) and i can find redbull every where


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