Written by Tom Lloyd
Following the launch of Red Bull in 1987 it has grown to become one of the largest selling energy drink brands in the world. With an estimated 70 percent market share, the fizzy drink that ‘gives you wings’ is available in 162 countries and has annual sales of four billion units and rising. It is then no wonder that their bovine logo is so immediately recognisable; however there must be more to this business phenomenon than an irresistible drink that just flies off the shelves.
On a trip to Thailand in 1982, Austrian businessman Dietrich Mateschitz noticed the invigorating, jet lag beating qualities of Krating Daeng. Literally translating as ‘Red Gaur’ or ‘Red Bull’, the drink was being widely consumed as a stimulant, and he saw an opportunity to market the product in Europe. Shortly after this the company Red Bull GmbH was co-founded by Mateschitz and the Thai creator of Krating Daeng, Chaleo Yoovidhya. The recipe needed some alteration for the western pallet, but Mateschitz was confident that he could draw on his former experience as the international marketing director for German toothpaste company Blendax to make Red Bull a world wide success.
The marketing strategy employed by the company has been somewhat different to that of other drinks companies, indeed the aggressive brand expansion; largely by means of sports sponsorship is unique to Red Bull. Capitalising on the drink’s stimulating and energising effect on the body, properties that are key for sports men and women, Red Bull has become as recognisable, if not more so for its presence within sport as it is for the beverage itself.
Of course sponsorship within the sporting world is nothing new, team kits and individual players have long been emblazoned with corporate logos and Red Bull are no different, accumulating hundreds of sponsorship deals over the last two decades across all sporting disciplines. For example, Red Bull has sponsored the Citroën WRC rally team, receiving tremendous success and exposure as Sebastian Loebe has won the last seven consecutive championship titles. They also have countless individuals on their books, such as trials biker and internet sensation Danny Macaskill who help to bring the brand to the widest possible audience. However where Red Bull’s marketing strategy is unique is in the actual ownership of certain sporting franchises and the creation of new platforms upon which to market their brand. If a mass appeal sport doesn’t already exist, then Red Bull simply creates it and slaps their brand all over it.
Eminent examples of this creative marketing include; the Red Bull Air Race, which pits the world’s greatest pilots against each other over the skies of the world’s greatest cities, the Red Bull Cliff Diving World Series and the Red Bull X-Fighters World Tour, where extreme motorcycle stunts are performed to huge crowds across the globe. It is with these high octane adrenaline sports that the brand is perhaps most associated, reaching out to their target audience of the young and the restless, and there are many other examples. But the charging bull logo is prominent in many other more run-of-the-mill, pre-existing sports such as Red Bull racing and sister team Toro Rosso in Formula One, Team Red Bull that competes in NASCAR, as well as owning professional football teams in Austria, Brazil and the USA such as the New York Red Bulls and SV Salzburg.
There are problems raised when a company becomes as involved with something so passion educing as sport. Fans have aired concerns over the company’s motives being more for economic gains than sporting achievement, as well as the apparent insensitivity towards regional pride; not content with rebranding sports teams to incorporate the brand name, Red Bull often change club colours to match the company’s red gold and blue colour scheme, as was the case when SV Salzburg lost their long held and adored violet and white identity.
Whilst sports sponsorship is a huge element within Red Bull’s marketing scheme, consuming one third of the annual marketing budget, the company does utilise other avenues aside from conventional advertising, although its cartoon television campaigns have become quite iconic. Increasingly, Red Bull has attempted to associate itself with more cultural events such as music festivals, and street dancing competitions. They have even opened a music studio in London, giving a free space for people to further their music careers and showcase their work. There has also been the use of gorilla marketing techniques, whereby teams of people will attend events all over the world in branded vehicles giving out free samples and offering prizes. In the most, these activities are still aimed at a youthful target audience, recruiting from university and college campuses. But by whatever means Red Bull markets its products, it shows no sign of slowing down; as the number of events, teams and individuals sponsored increases, so does the number of world wide sales.
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