Company Analysis of Red Bull

Seminar Paper, 2010

14 Pages, Grade: B+


Table of Contents

1. Introduction

2. The History of Red Bull

3. Red Bull´s core sources of innovation

4. Individual skill set of Red Bull

5. Company analysis of Red Bull
5.1. Strengths
5.1.1. Market leadership
5.1.2. Brand value
5.2. Weaknesses
5.2.1. 4 products
5.2.2. Making their own enemies
5.3. Opportunities I
5.3.1. Expansion
5.3.2. Innovation of new products
5.4. Threats
5.4.1. High marketing expenses
5.1.2. Additional accidents of sport stars

6. External Factors & Recommendations

7. Conclusion

List of References

1. Introduction

"Red Bull gives you wings!" Nearly nobody never heard this slogan in his life or saw it somewhere or at least tried a sip of Red Bull. The Austrian company polarizes: Its taste, its marketing or the supposed health harming ingredients in this drink.

Red Bull is the world’s leading manufacturer of energy drinks through its Red Bull brand. Its energy drink is exclusively produced in Austria and consumed in more than 100 countries worldwide - throughout Europe and many parts of North and South America, Africa and Australia. (Datamonitor, 2004)

The drink made the founder of the company Dietrich Mateschitz to the 2nd richest Austrian and the number 208 in the world. (Forbes, 2010)

This paper will have a look on a short history of the company of Red Bull and the core sources of innovation. Secondly it will try to identify and discuss the individual skillset of Red Bull.

Furthermore it will go on with the writers analysis of the company and end with the external factors which the company must react on in the future. This section will also address the writers recommendations to the management of the company.

2. The History of Red Bull

In 1982 the international marketing director for the German toothpaste producer "Blendax", Dietrich Mateschitz, encountered "KratingDaeng" -which means Red Bull in thai language- a "tonic syrup" that was known in Thailand for years(Kotler, 2004). The formula of this "KratingDaeng" began as a popular tonic for blue-collar workers (Grant, 2004) and furthermore all strata of the population to fight tiredness.

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It took Mr. Mateschitz three years to develop the packaging, the image and the marketing strategy. 3 years after discovering the drink at a hotel bar,Mateschitz founds the "Red Bull GmbH" (GmbH is the same as Ltd) as a 49% partner of Chaleo Yoovidhya and his sonwho holds 2% (Ingram, 2002). 2 more years later he obtained the marketing rights of Red Bull and launched his marketing strategy (Kotler, 2004). In those two years between founding the company and launching the marketing strategy Mateschitz had to adjust the taste of Red Bull onto the European market and in 1987 already 1 million cans of Red Bull have been sold in Austria. (Gschwandtner, 2004) After the distribution in Austria Red Bull expanded from 1992 to the Austrian neighbor countries Slovenia and Hungary. 2 years later it was introduced in Germany where it overtook Gatorade within 3 months. Since 1994 Red Bull is available in the United Kingdom. When Red Bull entered the US in 1997 it firstly focused on the western states: California, Oregon, Texas and Colorado (Ingram, 2004).

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Red Bull did never very good in taste tests, some people say that it is to sweet and others just say "No!" (Gschwandtner, 2004). But although hardly somebody really likes Red Bull Dietrich Mateschitz made it to the best-selling and most famous energy drink all over the world.

3. Red Bull´scoresources of innovation

Now this paper will examine Red Bull´s core sources of innovation. The first interesting point to mention is the very unusual strategy of the companies marketing "We do not bring the product to the people, we bring the people to the product" (Kotler, 2004).

Not usual methods made Red Bull this successful. Red Bull relied on the so-called "buzz marketing" or "guerrilla marketing". The image of the drink was created to associate Red Bull with the youth culture and extreme and adventure-related sports. For example: Snowboarding, motor sports, mountain biking and running and dance music parties. (Yagoob, 2005)

Directly from the beginning the aim of Red Bull from the beginning on was to get seen on the street. But how did they manage to reach their goals:

- Blue and silver Mini-Coopers with a giant can of the drink on it
- Free samples of the drink
- Red Bull drank by club DJ´s and empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs (Yagoob, 2005)
- Product placement in popular TV-series or movies (e.g. How I met your mother, The Big Bang Theory, Crank and Ocean’s Eleven)

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Secondly to mention are the sports sponsoring activities of Red Bull. In the early 90´s Red Bull was just known as a sponsor of extreme sport events or fun events as for example the "Red Bull Flugtag" where people in funny and self-made aircrafts/costumes jump in a river from a height of 8 meters to reach the world record in width of 59 meters. Until today 77 "Red Bull Flugtage" took place all over the world (Strobl, 2008). Red Bull was firstly seen as a sponsor of a mass sports athlete when they contracted the well-known Austrian ski-jumper Andreas Goldberger. Since that time a lot changed in the marketing strategies of Red Bull. Although they still highly focus on extreme sports as for example Base-jumping, Snowboarding, Formula 1, DTM or Motorbikes they have got a new focus on mass sports as we can see in their purchases of the football clubs SV Austria Salzburg in 2005, New York MetroStars in 2007 (Bell, 2007) and SSV Markranstaedt. Those clubs are now named Red Bull Salzburg, Red Bull New York and RB Leipzig (NB: in Germany it is not allowed to have the sponsor in the team name) (Ruf, 2009).


Excerpt out of 14 pages


Company Analysis of Red Bull
Griffith University
Catalog Number
ISBN (eBook)
File size
583 KB
company, analysis, bull
Quote paper
Bernd Bodner (Author), 2010, Company Analysis of Red Bull, Munich, GRIN Verlag,


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