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Redbull - A Study in Market Differentiation

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Energizing the Brand: Red Bull’s Marketing Journey From 1987 to 2023

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This research paper provides an in-depth examination of Red Bull's pioneering marketing strategies that have cemented its status in the energy drink industry. Renowned for its ties to adrenaline-fueled sports and a distinctive brand image, Red Bull's rise in the beverage industry has been supported by its creative marketing mix that extends beyond the traditional Four P’s framework (Product, Price, Place and Promotion). The company's marketing approach focuses on captivating content and experiential customer engagement, complemented by its adoption of unconventional guerrilla marketing techniques. This study examines key consumer behavior elements to understand the brand's successful audience engagement. Meanwhile, the paper also discusses challenges and criticisms that Red Bull has confronted and addresses those issues by proposing consumer education initiatives to reshape public perception, emphasizing the need to adapt to emerging trends in sustainability and enhanced ethically conscious strategies for target audiences. The sources attributed in this paper include interviews with Red Bull executives, consumer surveys, and a review of academic and industry literature, providing a holistic view of the brand’s dynamic marketing evolution.

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Published: 31 October 2007

A survey of energy drink consumption patterns among college students

Brenda M Malinauskas 1 ,
Victor G Aeby 2 ,
Reginald F Overton 3 ,
Tracy Carpenter-Aeby 4 &
Kimberly Barber-Heidal 1

Nutrition Journal volume 6 , Article number: 35 ( 2007 ) Cite this article

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Energy drink consumption has continued to gain in popularity since the 1997 debut of Red Bull, the current leader in the energy drink market. Although energy drinks are targeted to young adult consumers, there has been little research regarding energy drink consumption patterns among college students in the United States. The purpose of this study was to determine energy drink consumption patterns among college students, prevalence and frequency of energy drink use for six situations, namely for insufficient sleep, to increase energy (in general), while studying, driving long periods of time, drinking with alcohol while partying, and to treat a hangover, and prevalence of adverse side effects and energy drink use dose effects among college energy drink users.

Based on the responses from a 32 member college student focus group and a field test, a 19 item survey was used to assess energy drink consumption patterns of 496 randomly surveyed college students attending a state university in the Central Atlantic region of the United States.

Fifty one percent of participants ( n = 253) reported consuming greater than one energy drink each month in an average month for the current semester (defined as energy drink user). The majority of users consumed energy drinks for insufficient sleep (67%), to increase energy (65%), and to drink with alcohol while partying (54%). The majority of users consumed one energy drink to treat most situations although using three or more was a common practice to drink with alcohol while partying (49%). Weekly jolt and crash episodes were experienced by 29% of users, 22% reported ever having headaches, and 19% heart palpitations from consuming energy drinks. There was a significant dose effect only for jolt and crash episodes.

Using energy drinks is a popular practice among college students for a variety of situations. Although for the majority of situations assessed, users consumed one energy drink with a reported frequency of 1 – 4 days per month, many users consumed three or more when combining with alcohol while partying. Further, side effects from consuming energy drinks are fairly common, and a significant dose effect was found with jolt and crash episodes. Future research should identify if college students recognize the amounts of caffeine that are present in the wide variety of caffeine-containing products that they are consuming, the amounts of caffeine that they are consuming in various situations, and the physical side effects associated with caffeine consumption.

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Energy drink consumption has continued to gain popularity since the 1997 debut of Red Bull, the current leader in the energy drink market [ 1 ]. More than 500 new energy drinks were launched worldwide in 2006 and beverage companies are reaping the financial rewards of the 5.7 billion dollar energy drink industry [ 1 ]. Energy drinks, including Red Bull, Amp, Monster, Rock Star, Rip It, Full Throttle, and Cocaine, are designed to give the consumer a "jolt" of energy provided by the combination of stimulants and "energy boosters" that they provide, including caffeine, herbal extracts such as guarana, ginseng, and ginkgo biloba, B vitamins, amino acids such as taurine, amino acid derivatives such as carnitine, and sugar derivatives, including glucuronalactone and ribose [ 1 ]. Energy drinks typically contain 80 to 141 mg of caffeine per 8 ounces, the equivalent of five ounces of coffee or two 12-ounce cans of caffeinated soft drink such as Mountain Dew, Coca Cola, Pepsi Cola or Dr. Pepper [ 2 ]. Energy drinks have sugar-containing and sugar-free versions. For example, Monster Energy provides 24 grams of sugar per 8 ounces (12% sugar concentration) and Rip It A'Tomic Pom provides 33 grams (14% concentration) [ 3 , 4 ]. Similar to the booming energy drink market, the size of the energy drink container has increased over 300-fold; Monster energy offers consumers a 23 ounces option [ 3 ].

Do energy drinks provide the consumer an extra burst of energy as the advertisements would have you believe? Yes, they do. Smit and colleagues found that energy drinks, as compared to placebo, had energizing effects among 18 to 55 year old participants, with effects being strongest 30 to 60 minutes after consumption and sustained at least 90 minutes [ 5 ]. Caffeine was found to be the primary constituent responsible for these effects. Although there is no human requirement for caffeine, even low doses of caffeine (12.5 to 100 mg) improve cognitive performance and mood [ 6 ]. However, caffeine has been found to have detrimental health consequences. Riesenhuber and colleagues found that the caffeine (but not taurine) in energy drinks promotes diuresis and natriuresis [ 7 ]. Further, acute caffeine consumption reduces insulin sensitivity [ 8 ] and increases mean arterial blood pressure [ 9 ]. High caffeine consumption is associated with chronic daily headaches, particularly among young women (age < 40 years) and among those with chronic episodic headaches and of recent onset (< 2 years) [ 10 ]. Central nervous system, cardiovascular, gastrointestinal, and renal dysfunction have been associated with chronic caffeine ingestion [ 11 ]. In sum, the caffeine in energy drinks will provide the consumer the desirable effects of increased alertness, improved memory, and enhanced mood. However, caffeine can have harmful physical consequences.

Although energy drinks are targeted to the 18 to 35 year old consumer [ 12 ], there has been little research regarding energy drink consumption patterns among young adults in the United States. The purpose of this study was to determine (1) energy drink consumption patterns among college students, (2) prevalence and frequency of energy drink use for six situations, namely for insufficient sleep, to increase energy (in general), while studying, driving long periods of time, drinking with alcohol while partying, and to treat a hangover, (3) and prevalence of adverse side effects and energy drink use dose effects among college energy drink users.

A Registered Dietitian and a Health Educator designed a questionnaire that assessed consumption patterns of energy drinks among college students. We initially interviewed a focus group of 32 college students who were enrolled in a senior-level course. We asked these students open-ended questions regarding situations in which college students use energy drinks, the most common energy drinks college students were using, frequency patterns (average number of energy drinks consumed for each situation the focus group identified and the average number of times per month throughout a semester students use energy drinks for each situation), and side effects from using energy drinks.

Based on the focus group responses we developed a 19-item questionnaire. Questions 1 and 2 assessed demographic information (age and sex). Question 3 was a screening question, used to identify energy drink users, and asked "in an average month for the current semester do you drink more than one energy drink per month?" If a participant indicated "no", then they were instructed to skip the remaining questions in the survey and return the questionnaire to the research assistant. Participants who indicated "yes" to Question 3 were instructed to continue the survey, which assessed the type of energy drink usually consumed (regular or sugar-free), side effects associated with energy drink use (jolt and crash episodes, headaches, heart palpitations), and six situations for energy drink use (insufficient sleep, needing more energy (in general), studying for an exam or to complete a major course project, driving a car for a long time, drinking with alcohol while partying, and to treat a hangover).

For the purpose of this study, a jolt and crash episode was in reference to a feeling of increased alertness and energy (the jolt) followed by a sudden drop in energy (the crash) that occurs in response to using energy drinks.

Each of the six situation questions had two follow up questions that assessed the average number of energy drinks consumed for that situation (for example, how many energy drinks do you drink at one time following a night of not getting enough sleep?) and the average number of times per month for the current semester the student consumes energy drinks for that situation.

To provide a frame of reference regarding what constituted an energy drink, the introduction of the questionnaire included examples of energy drinks that were popular on the campus and in social establishments in the immediate geographic region when the survey was administered, these included Red Bull, Rock Star, Amp, and Full Throttle. The questionnaire was field tested among 10 randomly chosen students who were in a public location on campus. The questionnaire took approximately two minutes to complete and modifications to the questionnaire were not necessary based on the field test responses.

From mid-November to the first week of December 2006, 11 trained research assistants (undergraduate and graduate college students) recruited students at a single college from public locations across campus to participate in the study. The research assistants first ensured that those they approached were students at the university and that the student had not previously completed the questionnaire.

The institution is a state university, located in the Central Atlantic region of the United States. The fall 2006 enrollment statistics indicate an undergraduate enrollment of approximately 18,000 undergraduate and 6,000 graduate students, 85% of undergraduates were 18 to 24 years of age, 12% were 25 to 40 years of age and 3% 41 years of age and older [ 13 ]. Further, 92% of undergraduates attended school full-time whereas the majority (60%) of graduate students attended part time. In regard to ethnicity of the student body, 76% were non-Hispanic White, 16% non-Hispanic Black, 2% Asian, 2% Hispanic, 2% unknown, < 1% American Indian, and < 1% non-resident alien.. Sixty two percent of the total student body is female [ 13 ].

To diversify our sample, research assistants varied the time of day and days of the week during weekdays to recruit participants. In compliance with the university's Institutional Review Board for Research with Human Subjects (University and Medical Center Institutional Review Board number 06-0718), students were informed of the study protocol and those willing to participate anonymously completed the self-administered questionnaire. The project was carried out in compliance with the Helsinki Declaration.

Analyses were performed using JMP IN ® software [ 14 ]. Descriptive statistics included means, standard deviations, 95% confidence intervals, and frequency distributions. Pearson χ 2 was used to evaluate differences in frequency distribution of responses. An alpha level of .05 was used for all statistical tests.

A total of 496 participants, aged 21.5 ± 3.7 years (95% CI 21.3, 21.8) completed the questionnaire. In regard to the first research question, energy drink consumption patterns among college students, 51% of participants ( n = 253) reported drinking greater than one energy drink each month in an average month for the current semester, with significantly more female (53%) than male (42%) energy drink users reported, χ 2 (1, N = 496) = 6.46, p = .01. Seventy four percent ( n = 187) of the 253 users drank sugar-containing versions with significantly more females (35%) than males (12%) drinking sugar-free versions, χ 2 (1, N = 247) = 16.56, p < .01.

Energy drink consumption patterns of college energy drink users for the six situations assessed are reported in Table 1 . Insufficient sleep was the most common reason to drink energy drinks, as indicated by 67% of energy drink users. The majority of users consumed energy drinks to increase their energy (65%) and to drink with alcohol while partying (54%). Fifty percent drank while studying or completing a major course project, 45% while driving a car for a long period of time, and 17% to treat a hangover. There were no significant differences in use of energy drinks for the six situations assessed by sex, as reported in Table 1 .

In regard to the second research question, the percent of users drinking one, two, and three or more energy drinks by situation are reported in Table 2 . The majority of energy drink users consumed one to treat a hangover, for insufficient sleep, to increase energy, and while driving a car for a long period of time. Using three or more was a common practice (49% of users) to drink with alcohol while partying. The percent of users drinking energy drinks 1 – 4, 5 – 10, and 11 or more days in an average month for the current semester are also reported in Table 2 . For the six situations assessed, the majority of users (73% to 86%) consumed energy drinks 1 – 4 days in a month.

To further identify relationships between the six situations of energy drink use and energy drink consumption patterns, we summed the number of situations for reported energy drink use and compared this to the maximum number of energy drinks consumed for any of the six situations. These results are reported in Table 3 . By sum of situation categories, 16% to 20% of energy drink users consumed energy drinks for a total of one to five of the six situations, 7% consumed energy drinks for a total of all six. As total situations increased so did the maximum energy drink consumption for at least one situation. For example, 40% to 81% of energy drink users who reported a total of three or more situations consumed three or more energy drinks for at least one situation, whereas 29% of those with a total of one situation and 18% of those with a total of two consumed three or more for at least one situation.

Regarding the third research question, weekly jolt and crash episodes were experienced by 29% of users, 22% reported ever having headaches and 19% heart palpitations from consuming energy drinks, which did not differ significantly by sex, χ 2 (1, N = 253) < 0.01, p = .97 for jolt and crash episodes, χ 2 (1, N = 234) = 0.37, p = .54 for heart palpitations, χ 2 (1, N = 252) = 0.45, p = .50 for headaches. The data for side effects by energy drinks consumed are reported in Table 4 . There was a significant dose effect for jolt and crash episodes but not for heart palpitations or headaches. For example, 57% of energy drink users who reported experiencing weekly jolt and crash episodes also consumed three or more energy drinks for at least one situation, whereas 35% of those who denied jolt and crash episodes consumed three or more.

Energy drinks are marketed to young adults and marketing efforts may be particularly appealing among college students. For example, Cocaine energy drink, with a Cut Cocaine variety, has been marketed as a "legal alternative" to the class A drug [ 15 ]. On April 4, 2007, the Food and Drug Administration issued a warning to Drink Reboot, the firm that markets Cocaine, citing numerous marketing violations, including promoting this product as a street drug alternative [ 15 ]. Red Bull energy drink is reportedly a "functional beverage" that was designed to increase physical and mental performance and "is appropriate to drink during sports, while driving, and during leisure activities" [ 16 ] whereas Monster energy provides a "double shot of our killer energy brew. It's a wicked mega hit that delivers twice the buzz of a regular energy drink..." [ 3 ]. The purpose of this study was to identify energy drink consumption patterns and side effects associated with consumption of energy drinks among college students. We found that energy drink consumption is a popular practice among college students, particularly if the student has had insufficient sleep, if they need more energy in general, while studying for exams or working on major course projects and while driving an automobile for a long period of time.

Improvements in mental functioning are of interest among college students, many who suffer from sleep deprivation. The American College Health Association reported that 71% of college students whom they surveyed reported insufficient sleep and not feeling rested for at least five of the past seven days [ 17 ]. Sleep deprivation is associated with selecting less difficult cognitive tasks and college students who have sleep difficulties report a greater frequency of stress [ 18 , 19 ]. Findings from our study support the premise that college students use energy drinks to treat sleep deprivation and while studying for exams or completing major course projects. On the other hand, caffeine consumption has not been found to affect academic performance among college students [ 20 ].

The primary ingredient in energy drinks that has a cognitive stimulating effect is the caffeine [ 5 ], whereas high sugar content (18% concentration) does not improve reaction times slowed by sleep deprivation [ 21 ]. Further, the combination of caffeine and taurine has no effect on short-term memory [ 9 ]. Although low doses of caffeine (12.5 to 50 mg) have been found to improve cognitive performance and mood [ 6 ] and 200 mg doses have been found to improve cognitive task speed and accuracy and increase alertness among young adults [ 22 ], the amount of caffeine provided in energy drinks can easily far exceed the amount necessary to promote cognitive functioning [ 23 ]. This is especially true if a student is consuming 16- or 23-ounce cans or multiple cans of energy drinks for a given situation. Although we did not assess the size of the energy drink cans that participants normally consumed, results from our study indicate that in some situations while students are consuming energy drinks, the amount of caffeine that they consume can exceed the amount needed simply to promote cognitive stimulation. For example, 50% of energy drink users in our study drank two or more energy drinks while studying for an exam or working on a major course project, and 36% to 37% drank two or more following insufficient sleep, when they needed energy throughout the day, or while driving an automobile for a long period of time. Further, drinking multiple energy drinks with alcohol was a popular practice among 73% of energy drink users. The practice of consuming greater amounts of caffeine while socializing has also been documented among American youth [ 24 ] and an alcoholic setting is considered by many college students a primary locus to socialize and to meet people [ 25 ].

Results from the present study indicate that female and male college students are using energy drinks in a similar fashion. Whereas we found a greater prevalence of energy drink consumption and greater use of sugar-free varieties of energy drink use among females, we identified no situation differences nor prevalence of side effects from consuming energy drinks between sexes.

There are a number of limitations to this study that deserve discussion. First, in an effort to ensure the survey instrument could be completed quickly, we collected limited demographic information. Based on the descriptive statistics regarding age, we primarily had undergraduate participants and a slightly greater percentage of male participants as compared to the sex distribution at the university. On the other hand, random sampling throughout the weekdays and times of the day at central locations throughout campus was an advantage to the study design. Additionally, this is a rural state university with a fairly homogenous student body. Second, the data collected was self-reported. In particular, frequency patterns of energy drink intake were asked by situation and were treated as independent and distinct events, which may not have been the case. For example, and energy drink user may consume energy drinks because they had not gotten enough sleep and because they were studying for an exam. As a result, assessment of energy drink consumption may have been overestimated for each of the situation events. On the other hand, the results from this study provide important and novel information regarding energy drink consumption habits among college students. Of particular importance is the finding that using energy drinks for a number of situations is common among college students and that those who use energy drinks for three or more of the situations that we assessed tended to drink three or more energy drinks for at least one situation. Further, side effects of jolt and crash episodes, heart palpitations, and headaches are fairly common, as reported by approximately 25% of users, and there is a significant dose effect of energy drink consumption and jolt and crash episodes.

Using energy drinks is a popular practice among college students, as we found that 51% of 496 college students surveyed reported drinking greater than one energy drink each month. Among college energy drink users, consuming energy drinks is particularly popular for insufficient sleep, when one needs more energy in general, to drink with alcohol while partying, and when studying for an exam or completing a major course project. Drinking three or more for a given situation occurs more frequently among those who consume energy drinks for three or more of the six situations that were assessed. Side effects of consuming energy drinks, including experiencing jolt and crash episodes, hear palpitations, and headaches occur in many energy drink users. However, a dose effect was found only for jolt and crash episodes. Further research should identify if students recognize the amounts of caffeine that are present in the wide variety of caffeine-containing products they consume, the amounts of caffeine that are consumed in various situations, and the physical side effects associated with caffeine consumption.

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Department of Nutrition and Dietetics, East Carolina University, Greenville, North Carolina, USA

Brenda M Malinauskas & Kimberly Barber-Heidal

Department of Health Education and Promotion, East Carolina University, Greenville, North Carolina, USA

Victor G Aeby

Department of Health, Physical Education, Recreation, and Dance, Virginia State University, Petersburg, Virginia, USA

Reginald F Overton

School of Social Work, East Carolina University, Greenville, North Carolina, USA

Tracy Carpenter-Aeby

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BMM participated in the study design, performed the statistical analysis, and drafted the manuscript. VGA conceived of the study and drafted the manuscript. AJC assisted with statistical analysis and helped to draft the manuscript. RFO, TCA, and KBH participated in coordination and data collection and helped to draft the manuscript. All authors read and approved the final manuscript.

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Malinauskas, B.M., Aeby, V.G., Overton, R.F. et al. A survey of energy drink consumption patterns among college students. Nutr J 6 , 35 (2007). https://doi.org/10.1186/1475-2891-6-35

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49 Case Study: Red Bull Wins the Extreme Niche

Photo of a can of Red Bull "energy drink."

Red Bull is an Austria-based company started in 1987 by Dietrich Mateschitz that sells one product: an energy drink containing taurine (an amino acid) that’s sold in a slim, silver-coloured 8.3-ounce can. The drink has been an enormous hit with the company’s target youth segment around the globe. In the year 2018, Red Bull boasted sales of $1.06 billion USD in the United States alone [1] , and has held the majority of the energy-drink market share for years, with a 35.3% market share in 2019 (Monster Energy, their closest competitor, held 25.4%). [2] From Stanford University in California to the beaches of Australia and Thailand, Red Bull has managed to maintain its hip, cool image, with virtually no mass-market advertising.

Red Bull’s Targeted Approach to Marketing

“Red Bull. It gives you wings.” Over the years, Red Bull has organized extreme sports events (like cliff diving in Hawaii and skateboarding in San Francisco), parties, and even music festivals to reinforce the brand’s extreme, on-the-edge image. In 2012, they sponsored Felix Baumgartner’s record-setting freefall from 128,000 feet:

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You can view the transcript for Felix “Baumgartner’s supersonic freefall from 128k’ – Mission Highlights” . (opens in new window)

Their grass-roots approach to reaching the youth market worked: “In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi,” said Nancy F. Koehn, author of Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell . Red Bull’s success has also gained attention (and concern) among beverage-industry giants, and some have tried to follow its lead: For a time Coke ran a stealth marketing campaign, packaging its cola in a slim can reminiscent of Red Bull and offering it to customers in trendy bars and clubs in New York City.

“Red Bull Energy Drink Sales U.S., 2015–2018.” Statista. (September 25, 2019). https://www.statista.com/statistics/558082/us-sales-of-red-bull-energy-drinks/ . ↵
"Energy drink market share in the US in 2019." Statista. (2019, September 25). https://www.statista.com/statistics/306864/market-share-of-leading-energy-drink-brands-in-the-us-based-on-case-volume-sales/. ↵

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Red Bull (A)

E. Steen , C. Knoop
Published 25 March 2014

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Knowledge, attitude, and perception of energy drinks consumption among university students in jordan, direct clinical health effects of the consumption of alcohol mixed with energy drink in dutch adolescents, energy drink use frequency among an international sample of people who use drugs: associations with other substance use and well-being., the sport event owners’ perspective, oulun yliopiston kauppakorkeakoulu, related papers.

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Red Bull (a)

Darden Case No. UVA-M-0663

12 Pages Posted: 21 Oct 2008

Paul Farris

University of virginia - darden school of business, ervin shames, richard r. johnson, jordan mitchell.

Date Written: April 14, 2016

This case describes the history of the Red Bull brand and how the company stimulated and harnessed word-of-mouth to build a new product category (functional energy drinks) and brand franchise. The case concludes by asking the reader to consider how Red Bull should react to competitive challenges in the United States. The case was written to foster discussion of nontraditional brand-building strategies and the growing globalization of brands and products targeted toward younger consumers. Excerpt UVA-M-0663 Rev. Apr. 14, 2016 Red Bull (A) Red Bull We don't bring the product to the people. We bring people to the product. —Dietrich Mateschitz, Founder, Red Bull GmbH . . .

Keywords: advertising, advertising strategy, brand management, marketing mix, marketing strategy

Suggested Citation: Suggested Citation

Paul Farris (Contact Author)

University of virginia - darden school of business ( email ).

P.O. Box 6550 Charlottesville, VA 22906-6550 United States 434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

P.O. Box 6550 Charlottesville, VA 22906-6550 United States

HOME PAGE: http://www.darden.virginia.edu/faculty/shames.htm

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The effects of red bull energy drink on human performance and mood

Affiliation.

1 Psychology Department, University of the West of England, Bristol, United Kingdom.
PMID: 11665810
DOI: 10.1007/s007260170021

The effects of Red Bull Energy Drink, which includes taurine, glucuronolactone, and caffeine amongst the ingredients, were examined over 3 studies in a total of 36 volunteers. Assessments included psychomotor performance (reaction time, concentration, memory), subjective alertness and physical endurance. When compared with control drinks, Red Bull Energy Drink significantly (P < 0.05) improved aerobic endurance (maintaining 65-75% max. heart rate) and anaerobic performance (maintaining max. speed) on cycle ergometers. Significant improvements in mental performance included choice reaction time, concentration (number cancellation) and memory (immediate recall), which reflected increased subjective alertness. These consistent and wide ranging improvements in performance are interpreted as reflecting the effects of the combination of ingredients.

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Anatol J Cardiol
v.19(5); 2018 May

Long-term consumption of energy drinks induces biochemical and ultrastructural alterations in the heart muscle

Camelia munteanu.

Department of Molecular Biology and Biotechnology, Babes-Bolyai University; Cluj-Napoca- Romania

Corina Rosioru

Corneliu tarba, camelia lang.

Energy drinks (EDs) target young and active individuals and they are being marketed as enhancers of energy, concentration, and physical and cognitive performance. Their long-term consumption raises serious health concerns related to cardiovascular events. Here we investigate the effects of long-term Red Bull ® consumption and its combination with alcohol on certain biochemical parameters and the ultrastructure of the myocardium.

Male Wistar rats were categorized into four groups and given different treatments via oral administration. The Control (C) group received tap water, the Red Bull (RB) group received 1.5 ml/100 g body weight of Red Bull, the ethanol group (E) received 0.486 mg/100 g body weight of ethanol, and the Red Bull and ethanol (RBE) received a combination of the two beverages for 30 days. In the last 6 days of the experiment, the animals were tested for their physical performance by conducting a weight-loaded forced swim test. Immediately after swimming exhaustion, the animals were sacrificed under anesthesia and samples of the heart muscle were harvested for ultrastructural and biochemical analyses.

Our results showed a significant increase in the heart glucose and glycogen concentrations in the RB and RBE groups. Total cholesterol concentration significantly decreased in the RBE and RB groups. Total protein concentration and ALT and AST activities increased in all groups. The biochemical changes were accompanied by ultrastructural alterations.

Conclusion:

Based on these results, we recommend that athletes and active persons should avoid the long-term consumption of the Red Bull ED and, particularly, its combination with alcohol.

Introduction

Energy drinks (EDs) target young and physically active individuals. They contain large quantities of active components such as caffeine, taurine, and niacin. EDs are branded as agents or enhancers of energy, concentration capacity, and physical and mental performance ( 1 ). However, the consumption of EDs, particularly in large quantities, is associated with the occurrence of cardiovascular events such as cardiac arrhythmias, chest pain, hypertension, and even sudden cardiac death ( 2 ). As such, the safety of the long-term consumption of EDs is questionable.

The explosive increase in the consumption of EDs over the past years has led the scientific community to investigate the influence of such products on human health and to identify the reasons for their consumption. Additionally, the past years have witnessed an increase in the incidence of negative effects associated with the consumption of EDs, the most common adverse effects noticed being the nervous, cardiovascular, and gastrointestinal effects.

The risks are even higher if EDs are combined with alcohol. Several studies have investigated the effect of EDs in combination with alcohol and have shown that EDs significantly reduce the immediate effects of ethylic intoxication, which may lead to an increased consumption of alcoholic drinks ( 3 ). Ferreira et al. ( 4 ) have shown that, when combined with alcohol, Red Bull attenuates the perception of alcoholic intoxication.

In general, the short- and long-term effects of the consumption of EDs are controversial. Several studies have addressed the short-term effects of EDs, targeting specific components of EDs and not EDs in their entirety, and have reported positive short-term effects induced by these specific components. For instance, it has been shown that caffeine activates AMP-activated protein kinase (AMPK), which is a key enzyme that coordinates several signaling pathways that are involved in maintaining cellular energy homeostasis ( 5 ). Additionally, caffeine causes sympathomimetic effects, intensifying heart activity and increasing blood pressure ( 6 ).

It has also been proven that taurine is an indirect regulator of oxidative stress in the myocardium, stabilizing the cellular membranes by directly interacting with phospholipids. It exhibits various biological activities such as a positive influence on the calcium kinetics as well as the protection of the cardiac function and is a modulator of protein kinases and phosphatases in cardiomyocytes. Further, it maintains the normal contractile function of the heart muscle ( 7 ) and reduces arterial pressure ( 8 ).

Some EDs (5-hour ENERGY shots, Monster, Rockstar Energy, and Red Bull) contain niacin (vitamin B3) in doses above the daily recommended intake. Niacin has positive effects in restoring a healthy lipid profile and delaying the progression of atherosclerosis ( 9 ). It has been used for more than half a century in the treatment of lipid disorders, such as abnormally elevated concentrations of LDL, non-HDL cholesterol, triglycerides, and lipoproteins and low concentrations of HDL ( 9 , 10 ).

In fact, most studies have shown that a moderate consumption of EDs over a short period of time improves the cognitive and psychomotor capacities ( 11 ). However, some studies have also highlighted the occurrence of negative effects by the consumption of EDs, such as an increase in the heart rate, and systolic and diastolic pressures and a decrease in the cerebral blood flow ( 12 , 13 ).

Finally, the long-term effects of the consumption of EDs on different systems have been insufficiently studied, and those of such drinks on the cardiovascular system are unknown. However, based on known information (see the preceding paragraph), our hypothesis is that the consumption of EDs represents a serious cardiac risk factor. The aim of this study was to investigate the effects of the chronic consumption of an ED (Red Bull) and of its combination with alcohol and to highlight their influence on certain biochemical parameters and the ultrastructure of the myocardium.

All reagents used in this study were of analytical grade and were purchased from Sigma-Aldrich Chemie GmbH, Germany. The Red Bull ED was bought from a local market.

Animals and treatments

The study was conducted on male Wistar rats, which were kept under standard conditions and had free access to water and food. Experiments were performed according to the national regulations and were approved by the Institutional Ethics Committee (Registration no. 17928/2017).

Twenty-eight albino male Wistar rats, weighing 182.11±4.7 g, were divided into the following four groups, each with seven animals: the Control (C), Red Bull (RB), ethanol (E), and Red Bull and ethanol (RBE). All animals received a standard diet. The C group had ad libitum access to tap water, the RB group were orally administrated with 1.5 ml/100 g body weight of Red Bull in drinking water daily, for 30 days, and the E group received 0.486 mg/100 g body weight of ethanol daily. The RBE group received both Red Bull and ethanol in equivalent concentrations with each of the other two treated groups.

In the last 6 days of the experiment, the animals were tested for their physical performance by conducting a weight-loaded forced swim test. The animals were forced to swim to exhaustion with a load of 10% of their body weight attached to their tails. Each rat was considered to have reached exhaustion when it remained submerged for ≥5 s. Water temperature varied between 28°C and 30°C, and none of the animals were affected by hypothermia.

After 30 days of treatment, immediately after exhaustion, the animals were killed by exsanguination under anesthesia. Samples of serum and heart muscle were harvested for biochemical and ultrastructural analyses, including the measurements of total heart glucose, glycogen, cholesterol and protein concentrations; in addition, serum and heart muscle ALT and AST activities were measured.

Biochemical analyses

The total glucose concentration was determined using the Somogy Nelson colorimetric assay ( 14 , 15 ). Glycogen concentration was determined using the Montgomery method ( 16 ) modified by Lo et al. ( 17 ). Total cholesterol was assayed using ferric chloride ( 18 ). Total protein concentration was determined using the Bradford colorimetric assay ( 19 ) with the Bradford “ready-to-use” reagent. AST and ALT activities were analyzed using the Reitman and Frankel photocolorimetric assay ( 20 ).

Ultrastructural analyses

For electron microscopy analyses, the myocardium specimens were fixed in 2.7% glutaraldehyde and 2% osmium tetroxide, successively washed in phosphate buffer, and dehydrated in increasing concentrations of acetone. They were then embedded in Epon, and slices were cut at 50-90 nm using a Leica UC6 Ultra microtome on a glass knife. The sections were contrasted and visualized at 80 kV using a TEM JEOL JEM-1010. Images were obtained with a Mega Wiew III camera ( 21 ).

Statistical analysis

All data are presented as mean±standard deviation (SD). For statistical analysis of the effects of different treatments, a one-way analysis of variance with Dunnett’s test was conducted. All data were analysed using GraphPad Prism version 6 for Windows (GraphPad Software Inc., La Jolla, CA, USA). Significance was considered at values of p<0.05.

Biochemical results

The effects of Red Bull, ethanol, and their combination on glucose and glycogen concentrations in the heart muscle are shown in Figure 1 . These results revealed that glucose concentration increased in all treated groups, but this was significant only in the RBE group (RBE, 1.233±0.3867 vs. C, 0.6699±0.2759; p=0.0217*) ( Fig. 1a ). A clear increase in the glycogen concentration ( Fig. 1b ) occurred in the RB group (RB 2.946±1.2 vs. C, 1.077±0.4033; p=0.0019**).

An external file that holds a picture, illustration, etc.
Object name is AJC-19-326-g001.jpg

Changes induced by the combined physical effort (swimming test) and consumption of Red Bull and/or ethanol on (a) glucose and (b) glycogen concentrations in the myocardium. The results are presented as mean±SD. P <0.05* and P <0.01** vs. C. C - control; RB - Red Bull; E - ethanol, RBE - Red Bull and ethanol. n=7 in all groups

The concentration of cholesterol was significantly decreased in all treated groups (RB, 2.144±0.3724 vs. C 7.365±3.224; p=0.0004***; E, 2.874±1.071 vs. C 7.365±3.224; p=0.0017**; RBE, 2.264±0.6763 vs. C, 7.365±3.224; p=0.0004***; Fig. 2a ).

An external file that holds a picture, illustration, etc.
Object name is AJC-19-326-g002.jpg

Variations in (a) total cholesterol and (b) protein concentrations in the myocardium after physical effort (swimming test) and consumption of Red Bull and/or ethanol. The results are presented as mean±SD. P <0.05*, P <0.01** and P <0.01*** vs. C. C - control; RB - Red Bull; E - ethanol; RBE - Red Bull and ethanol. n=7 in all groups

Our results showed a slight increase in the myocardial protein concentration in all treated groups, being significant in the E group (E, 105.3±3.883 vs. C, 98.23±4.852; p=0.0475*) ( Fig. 2b ).

AST and ALT activities increased in the myocardium and decreased in the serum in all groups ( Fig. 3 ). The increase in the ALT activity in the myocardium was significant only in the RB group (RB, 144.5±25.06 vs. C, 115.1±13.43; p=0.0203*).

An external file that holds a picture, illustration, etc.
Object name is AJC-19-326-g003.jpg

The combined effects of physical effort (swimming test) and consumption of Red Bull and ethanol on (a) serum AST, (b) serum ALT, (c) myocardium AST, and (d) myocardium ALT activities. The results are presented as mean±SD. P<0.05* and P <0.01** vs. C. C - control; RB - Red Bull; E - ethanol; RBE - Red Bull and ethanol. n=7 in all groups

Ultrastructural alterations

The most serious ultrastructural modifications observed in the heart tissue of rats in the E group ( Fig. 4a - -4d) 4d ) were those that indicated the onset of alcoholic cardiomyopathy (a loose arrangement of myofibrils, and large spaces between myocytes occupied by several swollen mitochondria with dilated cristae). The morphological alterations induced in the heart muscle by EDs were very similar to those induced by ethanol ( Fig. 4e and and4f 4f ).

An external file that holds a picture, illustration, etc.
Object name is AJC-19-326-g004.jpg

Ultrastructure of the ventricular myocardium. (a) Control group: tightly packed intermyofibrillar mitochondria (Mt) surrounded by parallel bands of myofibrils (Myo), with contractile filaments organized in sarcomeres. Numerous lipid droplets (L) are visible in the proximity of mitochondria. Intercalated disks (ID) are visible at the limit between two adjacent cells. Bar, 2 µm. (b) Control group: tightly packed intermyofibrillar and subsarcolemmal mitochondria (Mt) with visible cristae are surrounded by parallel bands of myofibrils (Myo), with contractile filaments organized in sarcomeres. Lipid droplets (L) are visible in the proximity of mitochondria. Intercalated disks (ID) are visible at the limit between two adjacent cells. BV, blood vessel; PM, plasma membrane. Bar, 2 µm. (c) Ethanol-treated group: collagen fibers (C) are abundant in the intercellular space; lysis areas (arrowheads) are visible in the spaces occupied by mitochondria; some mitochondria have altered cristae. Bar, 5 µm. (d) Ethanol-treated group: enlarged spaces between myofibrils are occupied by numerous mitochondria, some showing altered cristae; in contrast, subsarcolemal mitochondria population is reduced, and lysis areas (arrowheads) are visible. Bar, 5 µm. (e) Red Bull-treated group: the intermyofibrillar spaces are enlarged, with numerous lysis areas (arrowheads); numerous mitochondria have altered cristae. Bar, 5 µm. (f) Red Bull-treated group: numerous lysis areas (arrowheads) are present in the intermyofibrillar spaces; several mitochondria show disrupted cristae. Bar, 5 µm. (g) Red Bull and ethanol-treated group: disorganized intercalated disks (ID); numerous mitochondria with disrupted cristae (arrowheads). Bar, 2 µm. (h) Red Bull and ethanol-treated group: numerous vesicles that seem to be filled with glycogen (arrowheads) in the intermyofibrillar spaces, mitochondria having destroyed cristae (Mt), and disorganized intercalated disks (ID). Bar, 5 µm

This study shows, for the first time, that the long-term consumption of EDs, individually or in combination with ethanol, causes biochemical and ultrastructural alterations in the heart muscles.

Our results revealed that both Red Bull and ethanol increased glucose and glycogen concentrations in the myocardium. In the RB group, the increase in the glucose and glycogen concentrations was caused by two ingredients of ED, caffeine and taurine. Normally, caffeine causes calcium release from the intracytoplasmic stores ( 22 ) and activates AMPK via calcium/Calmodulin-dependent protein kinase kinase-β (CaMKK) ( 23 ). AMPK promotes the uptake and use of glucose in the cardiomyocytes ( 24 ). Besides, AMPK either inhibits glycogen synthesis via the phosphorylation of glycogen synthase or activates glycogen degradation via the phosphorylation of glycogen phosphorylase ( 25 ). However, the chronic activation of AMPK, as probably happened in our study, may increase glycogen synthesis by increasing the glucose uptake and the formation of glucose-6-phosphate. This induces the allosteric activation of glycogen synthase that can overcome inhibitory phosphorylation by AMPK ( 26 ). Moreover, it has been reported that taurine increases glucose uptake, glycolysis, and glycogen synthesis in the heart of adult rats ( 27 ).

In our study, ethanol led to a slight increase in glucose and glycogen concentrations. Ethanol decreases the sensitivity to insulin, which is mediated in the heart muscle by tumour necrosis factor-α (TNFα) and/or interleukin-6 (IL-6), inducing the activation of Jun N-terminal kinases, which inhibits the Akt-AS160-GLUT4 signaling pathway ( 28 ). As such, the glucose concentration should have decreased. We cannot provide an explanation of these results, and there is no study on this topic in the literature. However, ultrastructural modifications shown in Figure 4 led us to consider that the Krebs cycle was not correctly functioning and, consequently, the glucose metabolism in the myocardium was affected.

The combined administration of Red Bull and ethanol produced a significant increase in the glucose concentration, which was expected because the independent administration of each of these components increased the glucose concentration in the myocardium.

Glycogen is a vital molecule for the normal functioning of the myocardium. It is necessary for the ontogenetic development of the heart, because it supplies the necessary energy for the growth and development of the organ ( 29 ). In the mature organ, glycogen is found in small quantities, furnishing energy to the excito-conductor system. A large quantity of glycogen is beneficial only under ischemic conditions ( 30 ). Glycogen accumulation in the myocardium favours the incidence of pre-excitation syndrome ( 31 ). Several studies have reported an association of the EDs and/or alcohol with the occurrence of negative effects at the cardiovascular level (palpitations, cardiac arrhythmias, hypertension and even sudden cardiac death) ( 2 , 32 ); therefore, we cannot exclude the possibility that these effects were connected to glycogen accumulation in the myocardium.

Cholesterol concentration significantly decreased in all groups. This effect can in turn be a cause of the myocardial dysfunctions reported in the chronic consumption of EDs and alcohol. A role of cholesterol is to stiffen the cellular membranes and maintain the shape of cells by forming “bridges” (lipid rafts) in the regions where the membrane proteins are expressed ( 33 ). Additionally, cholesterol controls the membrane fluidity, and, consequently, plays an important role in the the cholesterol to phospholipid ratio ( 34 ). The molar ratio of cholesterol to phospholipids in plasma membranes is usually maintained just below unity ( 35 ). Therefore, reducing the cholesterol concentration may lead to membrane destabilization, which may in turn affect cellular metabolism in the myocardium.

The decrease in the cholesterol concentration induced by Red Bull might have been due to the elevated content of taurine and/or niacin present in the ED. This change is somewhat expected because both taurine and niacin are used in the prevention and cure of atherosclerosis ( 36 , 37 ). More precisely, taurine reduces serum cholesterol ( 38 ) and niacin reduces serum cholesterol and triglycerides and increases HDL concentration ( 39 ).

Decreased cholesterol in the myocardium following chronic ethanol treatment has also been reported by Godfrey et al. ( 40 ) and Hu et al. ( 41 ), but no one has ever explained these results and the physiological significance of the phenomenon is unknown.

The combined administration of Red Bull and ethanol induced an even higher reduction of cholesterol in the myocardium than the independent administration of the two components.

Our results show a slight increase in the myocardial protein concentration in all treated groups, being significant in the E group. The slight increase in the protein concentration observed after the administration of Red Bull could be due to the high content of vitamin B6. A dose of Red Bull sold in Romania contains 250% of the recommended B6 daily dose. Vitamin B6 is an essential cofactor in the functioning of over 140 enzymes required for the synthesis, degradation, and interconversion of amino acids ( 42 ).

The formation of protein adducts could be an explanation for the significant increase in the protein concentration in the E group observed in our study. Research has shown that alcohol causes the accumulation of protein adducts in the hepatic, nervous, and muscular tissues, aggravating the ethanol-induced toxicity in these tissues ( 43 ). In a study by Worrall et al. ( 44 ), increased amounts of reduced acetaldehyde protein adducts, unreduced-acetaldehyde, and malondialdehyde-acetaldehyde were found in the cardiac tissue of rats after 6 weeks of alcohol treatment. Furthermore, a previous study has shown that adducts formed by acetaldehyde with proteins stimulate the formation of mRNA responsible for the synthesis of collagen and expression of connective tissue proteins ( 45 ).

AST and ALT activities increased in the myocardium and decreased in the serum following all treatments. According to the ultrastructural alterations caused by Red Bull and ethanol, the activities of these membrane integrity markers were expected to be increased in the serum. However, our results are consistent with those of Mihailovic et al. ( 46 ), who reported an increase in the AST activity with unchanged ALT activity in the heart muscle after a 10-day treatment with ethanol. Our results show that Red Bull had the same detrimental effects as ethanol, at least in the heart muscle. Furthermore, the combination of Red Bull and ethanol had synergistic and/or complementary effects on AST activity.

The most serious ultrastructural alterations observed in the heart tissue of rats treated with ethanol ( Fig. 4c and and4d) 4d ) are those that indicate the onset of alcoholic cardiomyopathy. As pointed out by De Leiris et al. ( 47 ), human subjects and animal models exposed to chronic ethanol consumption undergo functional and structural alterations in the heart tissue. Oxidative stress induces lipid peroxidation, protein oxidation, reduces the GSH content of mitochondria, and disturbs calcium homeostasis, impairing the contractile capacity of the heart muscle. The organelles also show modified structures with disorganized cristae, resulting in altered oxidative metabolism. An excellent work of Tsiplenkova et al. ( 48 ) gives a detailed inventory of the damages caused by ethanol in alcoholic cardiomyopathy, such as the alteration of mitochondrial membranes including organelle swelling and loss of cristae. These authors also noticed an increase in the number of mitochondria with myocytes, in which the space occupied by mitochondria was larger than that occupied by myofibrils. This is consistent with our observation of enlarged intermyofibrilar spaces filled with mitochondria. Interestingly, we also found that the subsarcolemal mitochondria population was reduced, while numerous lysis areas were present.

In addition, we noticed collagen deposits in the intercellular space, which has also been reported by Urbano-Marquez and Fernandez-Sola ( 49 ) in human patients with alcoholic cardiomyopathy.

Whether such altered cardiomyocytes may end in apoptosis or in necrosis remains unclear; however, apoptosis, or even a combination of apoptosis and necrosis, seems to produce myocyte loss in alcoholic cardiomyopathy ( 50 ).

While cardiomyocyte alterations induced by alcohol consumption are well documented, there is very little evidence, if any, concerning ultrastructural alterations induced by EDs in the heart muscle. In some myocytes of the RB group, the myofibril arrangement showed a loose structure and the space between them was occupied by several large (swollen) mitochondria displaying a rarefied matrix and dilated cristae, which led to the assumption that oxidative metabolism was affected. All these morphological alterations correlated with measured biochemical alterations in glucose, glycogen, and cholesterol concentrations and AST and ALT activities reported in our study. The exaggerated proliferation of mitochondria (“mitochondriosis”) in-between narrowed myofibrils was also reported by Tsiplenkova et al. ( 48 ), as a feature of alcoholic cardiomyopathy.

In the myocytes of the RBE group, the cumulated effects of ED and ethanol were even more dramatic, with an increase in the lysis areas, majority of myofibrils without a regular (parallel) arrangement, myofibrils with a part of them fragmented, and several mitochondria with rarefied structures and dilated cristae. Numerous vesicles were present in the intermyofibrillar spaces, probably filled with glycogen, as has been previously reported ( 49 ) in alcoholic cardiomyopathy. These structural alterations also support the biochemical changes measured in our study. Several myocytes had hypochromic nuclei with irregular borders, and the intercalated disks were fragmented and dehiscent.

Study limitations

Our experimental groups were relatively small but allowed for the statistical processing of results. Further, the duration of further experiments should be extended to provide better insights inon the long-term effects of using EDs, and to highlight possible adaptive mechanisms to their components. In addition, we used only one ED. Therefore, we consider that additional studies are needed using several such drinks, particularly because they have different compositions.

Our results explain, to a certain extent, the symptoms described in the literature for those who consume EDs in large quantities or for a long period of time. We particularly refer to glycogen accumulation in the myocardium, which can disrupt the cardiac activity and may favor the occurrence of tachycardia, palpitations, cardiac arrhythmias, hypertension, and even death ( 2 ). The lowering of cholesterol concentration may, in turn, be a cause of myocardial dysfunctions reported in the literature following the chronic consumption of EDs and alcohol. Athletes, as well as active individuals, should avoid both the consumption of EDs and their consumption in combination with alcohol. Our results showed that EDs produce morphological changes in the heart muscle similar to those produced by ethanol. Further research, on different EDs as a whole and on separate components is necessary to deeply understand their detrimental effects and the mechanisms by which they are produced.

Conflict of interest: None declared.

Peer-review: Externally peer-reviewed.

Authorship contributions: Concept – C.M., C.L.; Design – C.M., C.R., C.L.; Supervision – C.L.; Fundings – Internal resources of Faculty of Biology and Geology; Materials – C.R., C.L.; Data collection &/or processing – C.M., C.L.; Analysis &/or interpretation – C.M., C.R., C.T., C.L.; Literature search – C.M., C.L.; Writing – C.M., C.R., C.T., C.L.; Critical review – C.M., C.R., C.T., C.L.

The Ultimate Red Bull Marketing Strategy Study

Table of contents.

Red Bull has grown from a simple energy drink manufacturer to one of the most recognized brands in the world. It has become synonymous with sports, extreme performance, and victory. Red Bull is the extreme athlete of marketing, literally and figuratively.

A few key statistics and facts about Red Bull:

Number of Red Bull cans sold worldwide in 2022: 11.582 billion
Revenue of €9.68 billion
Red Bull's marketing budget for 2022 is estimated to be €2,9 billion (it is rumored to be around 25-30% of the yearly revenue)
Red Bull sponsors athletes in 73 countries around the world .
Number of employees in 2022: 15,779
The logo is a breed of cattle called gaur.

Red Bull History

Styrian success-makers.

The reasons for Mateschitz's conservatism lie in his family background. He grew up in modest circumstances in the upper Murgtal in Styria. His outstanding success is not an isolated case in this province. Arnold Schwar is a compatriot, as is the tennis player Thomas Muster, who for a time topped the world rankings ahead of Boris Becker, André Agassi, and Pete Sampras.

He is also a compatriot of Frank Stronach, who emigrated to Canada as a worker and returned to his homeland as a co-owner of the global auto parts manufacturer Magna. Styrians are said to have always been a bit their boss. Stubborn but not rebellious, strong, and persevering. Dietrich Mateschitz, who has been friends with half of Austria since his success and is nicknamed "Didi," has needed perseverance for his story to become a real success.

From jetlag to energy drinks

In 1976, Chaleo Yoovidhya introduced his Krating Daeng drink in Thailand. The name means "red gaur" in English. The maker was inspired by the energy drink Lipovitan, in which the main ingredient is taurine, and was popular with Thai truck drivers and blue-collar manual laborers.

When he visited Thailand in 1982, the Austrian-born Dietrich Mateschitz discovered that by consuming Krating Daeng, he was able to overcome the effects of jet lag, caused by the rapid change of time zones, much more quickly during the trip. Since the energy drink phenomenon was still unknown on the Old Continent, he was astonished at how many people consume the product, and almost immediately approached the owners of the company with the idea of bringing it there.

Mateschitz had been the international marketing manager for Blendax (now part of the Procter & Gamble Group) toothpaste at the time. The Yoovidhya family, which had already become rich through the pharmaceutical industry, welcomed the idea and began to develop a European business policy and strategy with the Austrian marketing expert.

Mateschitz founded Red Bull GmbH with Yoovidhya in 1984 intending to develop it into a global brand. Both parties invested $500,000, however, Yoovidhya and Mateschitz owned only 49-49% of the shares in the new company. The remaining 2 percent of the shares went to Yoovidhya's son Chalerm, but the agreement left Mateschitz as the de facto head of the company.

Product launch in Austria

The product was first launched in Austria in 1987. Mateschitz, still a bachelor at 39, has quit his lucrative multinational job and has been trying to introduce the Asian recipe to Austria for two or three years. The new product, the unusual flavors, the colors, the advertising are not the resounding success he had hoped for. After the initial setbacks, Dietrich Mateschitz does what he has never done before - he takes out a loan. The reason for his reluctance is simple: he was raised at home to believe that "a decent person does not have debts," and like many entrepreneurs, he still does not like financial institutions.

The startup’s growth has almost immediately slowed down because several well-known Austrian beverage companies considered the revolutionary idea too risky and refused to partner with Red Bull. The food authority was also not a fan of Red Bull, considered it dangerous, and banned its marketing in many places - but Mateschitz was not discouraged. Dietrich Mateschitz cites the three most difficult years of his life as the early days of Red Bull.

Being an experienced manager, he refused to lower the price of the not exactly cheap beverage. He is vigilant about consumer behavior. The highly stimulating product was finally a hit in Austrian discotheques. It was tempting to dance the night away. Word of the new wonder “drug” spread quickly across the border. However, on the German side, Red Bull was still not allowed to be marketed. It was banned for a time in Hungary, France, and Denmark because of what they consider to be its high caffeine and taurine content. It is the desire for the forbidden fruit that has brought the real breakthrough. Consumers "smuggle" a bootleg number of Red Bulls across the then non-EU Salzburg border crossing into Bavaria, where it is sold in nightclubs in violation of the law. From then on, the triumphal procession is unstoppable. And during this time, the custom of mixing it with vodka also arises.

Germany and the United Kingdom were introduced to Red Bull in 1994 after the company’s expansion in Eastern and Central Europe. It was able to win a 75 percent market share on the American energy drinks market despite the slow start and late expansion to the US in 1997.

In the process, Red Bull has also garnered some criticism for its use of extreme sports marketing and its impact on health. Due to this, the European Food Safety Authority (EFSA) and other food regulatory agencies have limited the levels of caffeine, taurine, and glucuronolactone in Red Bull and other energy drinks.

Key takeaways:

A serendipitous meeting between the Austrian and Thai founders of Red Bull was quickly followed by the realization of an excellent business opportunity and action. The recipe was ready - even if it still needed to be refined for European tastes - and the parties focused on market development strategies, sales, and marketing activities.

Still, launching the product in Austria was not a success, and many founders would have given up at this point. But Mateschitz kept his eyes open and recognized what the sales drivers would be in the early days.

Word-of-mouth marketing,
The feeling of uniqueness (energy drinks were not yet known to the European public),
A stronger effect than coffee, which, mixed with alcohol, stimulated parties in Eastern Europe as a non-addictive and non-consciousness-altering substance,
The progressive association of the brand with sports, in addition to nightlife.

Together, these elements have served to build Red Bull's success on an increasingly efficient and planned business foundation.

The Products

The product portfolio of the company.

Three of Red Bull's products are core products that are sold in all relevant markets, regardless of culture or target group:

Red Bull energy drink: the familiar gray-blue metal can that comes in a 250 ml edition. In some countries, it is also available in a 350 ml and a 500 ml version.
Sugar-free Red Bull: Instead of sugar from sugar beets, the company uses aspartame, sucralose, and acesulfame K to sweeten the product. The product's other ingredients and packaging are the same as the original energy drink.
Red Bull Zero Sugar. The Zero and sugar-free variants differ little in terms of content. According to the company, the only difference is the taste.

However, there have also been numerous drinks that have been launched in limited quantities or connected with specific sporting events. These include The Tropical Edition, The Coconut Edition, The Red Edition, and The Summer Edition, currently available in four flavors. However, Red Bull not only limits the time of availability but also sells specific, localized products for the largest markets. For example, ORGANICS by Red Bull, which is only available in German, is not an energy drink but a soft drink that comes in six flavors. These include cola, tonic, and ginger drinks.

Red Bull cans are 100% recyclable. In addition, with only one manufacturing location, 80% of renewable resources are saved rather than using multiple ones.

Product localization

Almost all of the markets in APAC are served by Red Bull, and the company uses local development strategies to cater to consumer tastes in each market. Red Bull markets in the APAC region curate their product portfolios, and it takes a lot of time for each market to develop the most appropriate product selections. Local and center teams are continuously reviewing the portfolio of products to ensure that the energy, taste, and size requirements are met. Though the original blue and silver Red Bull Energy Drink is still a popular beverage, Red Bull is also interested in creating new products to match the changing tastes of the market.

Red Bull Editions are a seasonal range of localized products. To give an example, Red Bull has a Coconut edition in Singapore that includes coconut and blueberry flavors; in Australia, there are Orange editions (orange flavors), Tropical editions (tropical fruit flavors), and Red editions (watermelon flavors).

Each Red Bull market has a local team that interprets the meaning of the products to ensure they are relevant to the target customers. There is room for growth in the energy drink market through premiumization, even though the market is well established.

Manufacturing

A new Red Bull production facility is being built in Glendale, Arizona. A joint venture between Red Bull, Rauch Fruit Juices, and Ball Corporation, RRB Beverage Operating, is investing USD 250 million in the next few years to build a new 700,000 sq ft-sized facility. Originally, the company planned to start manufacturing in 2021, employing 140 people in the process. There is no news available on how COVID-19 has modified the plans.

Instead of keeping the production process in-house, RB outsourced it to Rauch. Among other beverages, it produces Red Bull's drinks in Nüziders, Austria, and Wildenau, Switzerland. It is only 40 kilometers between the two production facilities despite being in different countries.

It was previously made at a Swiss plant and imported to the U.S., but the company's growing popularity in North America and a threat to taxing cans and products imported from Europe, in general, led to the investment.

One of the joint venture partners, the Ball Corporation, which specializes in the production of aluminum and steel packaging for the food and beverage industry, opened an aluminum can manufacturing plant in Goodyear, Arizona in 2019, not far from the new project site in Glendale.

Sales channels

As a manufacturer of soft drinks, Red Bull does not market its products itself but distributes them to restaurants and stores via Red Bull-owned distribution companies. One such company is Red Bull Distribution Company , which is responsible for distribution in North America. The Group currently employs around 6,000 sales staff who distribute its products in 170 countries around the world.

The sales employees directly involved in the sales process are usually field sales representatives. They cover a predetermined territory by driving around and replenishing products from Red Bull in restaurants and convenience stores. They are also responsible for ensuring that the energy drinks are in the right, highly visible places on the shelves and that the company logos get the attention they deserve.

Of course, the larger chains and online beverage stores are already negotiating directly with distributors. The company's sales activities are rounded off by various corporate purchases.

Beverage retailers in particular tend to offer their customers a diversified product portfolio to generate more sales so that they can not only order a specific beverage but also upsell it. This involves offering additional options (both products and services) to a customer who has already been won over, which can then be sold at a much higher profit because there is no need to advertise and approach the customer again. In contrast, Red Bull has opted for a narrow product range - for a long time, there was only one type of energy drink and one flavor. Today, that range has broadened, but there are still many subsectors (e.g., alcohols, premium products) where there is room for further expansion.

Red Bull works with several international and local distributors, typically owned by RB. Sales are always B2B, with restaurants, small and large grocery stores, and corporate customers on the other side.

The Red Bull Brand

The Red bull brand stands out as a category dominating queen holding 42% of the global energy drink market in 2020. Second comes Monster with a 39% market share.

Company culture

The vision statement of Red Bull is “(The company) is dedicated to upholding Red Bull standards while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices, dedicated to coaching and developing our organization as an employer of choice.” (Source: redbull.com)

According to reviews on Indeed and Comparably , Red Bull is successful not only in building an outward-facing brand but also in creating a high-quality corporate culture. Typical feedback praises the internal social life, work environment, and highlights internal development opportunities. However, as in any other organization, those who work under a poorly performing manager are understandably dissatisfied with management skills, work-life balance, and supervisor availability.

Can of innovation: a branding move

The can became the symbol for Red Bull, even though it has been commonly used among beverage manufacturers. There is, however, a significant difference: instead of the usual 330 ml can, which is a bit chunkier, Red Bull has introduced the 250 ml sized container, which is thinner and taller than usual. There are two reasons for this: the unique appearance makes the product stand out from the competition, and it explains why Red Bull is much more expensive than the usual packaged drinks.

Red Bull’s target market: for those who need energy

Red Bull’s target market is young people between the age of 15 and 45 with high income. The company segments its target market even further offering as the main benefit a sense of belonging and enhanced physical and mental performance.

Matschitz explained the failure of Red Bull's first consumer test by claiming that such products only succeed in their intended environment. In sterile laboratories, no one needs extra energy, so Red Bull could not be treated at its true value. The moment the drink was introduced into gyms, parties, and bars, or even boardrooms, the rejection stopped, because the product found its right target audience.

Red Bull’s logo and design over the years

The energy drink was originally created for Muay Thai fighters and blue-collar workers in Thailand. A logo where two red bulls were readying to fight and the bright yellow sun rising behind them is typical for the APAC region. The only direct change was the “Red Bull” inscription written in bold, English font.

The Red Bull logo did not change significantly over the years. What makes the story special is that Mateschitz's marketing background allowed the team to spend extra time finding the right design. However, both the logo and the name and colors scored poorly on focus-group questionnaires. Nevertheless, the owners stuck to their original vision and did not change the design "rescued" from Thailand. Time has proven them right.

Red Bull brands and subsidiaries

Red Bull Racing

AKA Red Bull AKA RBR AKA Oracle Red Bull Racing is a Formula 1 racing team. The team won the 2021 championship with its driver Max Verstappen.

Scuderia AlphaTauri

AKA AlphaTauri is the second Formula One racing team of Red Bull. Originally the company’s junior team, today its considered to be the sister team of Oracle Red Bull Racing.

New York Red Bulls & New York Red Bulls II

The company’s two American professional soccer teams. The first participates in the Major league and the second in the second tier league.

FC Red Bull Salzburg

AKA FC Salzburg, the company’s Austrian professional football club. Red Bull bought the club in 2015 and changed its colors, a move that its fans found controversial.

FC Liefering

Red Bull's second league Austrian football club.

The German professional football club nicknamed Die Roten Bullen. The company bought the team in 2009 and in less than 9 years took it from the fifth tier league to the top-flight Bundesliga.

Red Bull Brasil & Red Bull Bragantino

The two Brazilian football clubs whose teams compete in the second and top tier of São Paulo state football league respectively.

EHC München & EC Red Bull Salzburg

Red bull’s ice hockey teams. The first competes at the highest level of professional German ice hockey. And the second competes in Austria’s top-tier ice hockey league.

Red Bull Records

It’s Red Bull’s global record label focusing on more niche genres like rock, alternative rock, punk rock and hip hop with bands like Awolnation, Twin Atlantic, and Beartooth.

The example of Mateschitz is rather the exception that proves the rule because his decisions - especially in the early years - were always at odds with business logic and common sense. The launch of the energy drink Red Bull in Europe was prepared through a series of processes: Testing the product, obtaining food safety and market approvals, market research as part of the launch. In the end, there were almost no areas left to support the owners' ideas, as neither the food authority nor market research considered energy drinks to be a good product.

Mateschitz, however, stubbornly stuck to his original ideas and, adapting some of the intellectual property brought from Thailand to European tastes, practically single-handedly created a youthful, trendy and energetic brand Red Bull.

Red Bull Marketing Strategy - Sponsoring Sports, Athletes And Events

Red Bull global marketing strategy focuses, but it’s not limited to, sponsorships of extreme sports, athletes and events of every scale, from local to global.

The company generates massive awareness with its presence in unique first-ever events like Felix Baumgartner parachute jump and in major regular events like the Volcom Pipe Pro and the Freeride world tour.

Red Bull’s marketing strategy, however, includes more traditional marketing practices and channels like TV commercials and social media with millions of followers across its Facebook, Instagram, Twitter, LinkedIn, and Youtube tens of accounts. It runs ads across every channel, trying to appear in front of its target audience everywhere it goes.

Red Bull marketing budget

A question on a lot of people's minds is how much does red bull spend on marketing? Unfortunately, Red Bull does not share its marketing budget, but it is rumored to be around 25% of the yearly revenue. So whilst we can only guesstimate what it spends, one thing we know is that it's a lot of money and a very important focus for Red Bull.

When the product becomes the means of Red Bull advertising

Sponsored stars are today's flesh-and-blood heroes: athletes, drivers, Formula 1 racers, and extreme athletes who stand for real achievement.

In addition to financial support, the stars receive equipment, clothing, and accessories with the Red Bull logo. And of course their advertised product, energy drinks in the required quantity. Red Bull's branded merchandise is particularly valuable because, unlike many beverage competitors, the company does not mass-produce merchandise - it is available only in the inner circle.

The international marketing activities of Red Bull are aimed primarily at young people who are attracted to and like extreme sports. The range of extreme sports targeted is very broad and includes:

Mountain biking
Snowboarding
Skateboarding
Wakeboarding
Cliff jumping
Ice skating
Freestyle motocross
Break dancing.

Red Bull also uses music and video games for marketing purposes and has brought in celebrities like Eminem (through its support of the Red Bull "EmSee Battle Rap championships").

Red Bull is also known for its events, including music and art conventions. In Hungary, the company launched Red Bull Pilvaker in 2012, one of the country's most unique music and cultural projects, which commemorated the 1848 Revolution and the War of Independence with the help of outstanding contemporary art artists. The popularity of Red Bull Pilvaker is reflected in the fact that in recent years all tickets for performances at Erkel Theater, which seats almost 2,000 people, were sold out within a few days.

Red Bull also maintains soccer teams in Austria, Germany, the United States, and Brazil - these teams also carry the brand name, Red Bull. By associating the energy drink with these activities, the company aims to reinforce the "cool" image of the product and thus the strength of the brand. The energy drink has also created a market for over 150 additional souvenir items.

On the PlayStation 3 community platform PlayStation Home, Red Bull created a dedicated in-game island in 2009 to specifically promote the energy drink Red Bull and the racing series Red Bull Air Race. In January 2012, Red Bull also opened its first personal community area, the " Red Bull House of Skate," which featured an indoor skating rink for visitors.

Red Bull's sports sponsorship activities focus on supporting talented young athletes and helping them achieve their goals. The Red Bull Junior program in motorsports is the most prominent branch of this, but the company follows this philosophy in its support for athletes, regardless of the sport. Sebastian Vettel, Daniel Ricciardo, and Danyiil Kvjat are among the most prominent students of the Red Bull Junior program.

Formula One Red Bull Racing

File:Daniel Ricciardo, Red Bull Racing F1 Team (43741877491).jpg

Red Bull Racing is the Austrian Formula 1 team owned by the energy drink company Red Bull. The company's other team is Scuderia Toro Rosso (later Scuderia AlphaTauri).

The team's direct predecessor is the Stewart Grand Prix, founded in 1997 by Jackie Stewart. In late 1999, it was sold to the Ford Motor Company, which raced it under the name Jaguar Racing. In 2004, Ford decided to sell the unsuccessful but costly team. It was bought by Dietrich Mateschitz, owner of the energy drink company Red Bull. The team was then able to take to the grid at the 2005 Australian Grand Prix as the successor to Jaguar, now in the blue and silver colors of Red Bull energy drinks.

Red Bull was no stranger to motorsport's premier class, having previously sponsored Sauber, Arrows, and its predecessor Jaguar. Having started its own team, Red Bull naturally terminated its contract with Sauber (the Arrows had already ceased to exist in 2002). The drinks company has also appeared in the Formula 3000 series and its successor, GP2, and has a European talent scouting program called Red Bull Junior Team. Later Formula 1 drivers have also emerged from the program, with Enrique Bernoldi, Christian Klien, Patrick Friesacher, Vitantonio Liuzzi, and Scott Speed all having raced in the premier class.

RBR enjoyed immediate success in its first season in 2005, thanks to two of its drivers, Coulthard and Klien. The 2005 Red Bull RB1 was based on the already papered Jaguar R6. The team used the weakest Cosworth engines and Michelin tyres throughout the season. The team exceeded expectations to finish seventh among constructors with 34 points.

For the 2006 season, Red Bull Racing changed engine suppliers and used Ferrari V8 power units for the season. Adrian Newey, who was signed from McLaren in November 2005, was appointed as chief designer. Newey did not play a major role in the design of the RB2, which was almost complete by then, and instead started work on the 2007 model. By 2007, the Adrian Newey-designed RB3 was finally completed, with the Renault engine replacing Ferrari's. Mid-season saw the arrival of Geoff Willis, who had worked as technical director at Williams and BAR and then at Honda. Following the departure of Michelin, Red Bull Racing naturally started on Bridgestone tyres. On the racing front, David Coulthard remained with the team, while Mark Webber took the other seat. Webber left the predecessor Jaguar after 2004 and joined the energy drinkers after two disappointing seasons at Williams. The team finished 5th in the constructors' championship with McLaren eliminated and 24 points, David Coulthard 10th with 14 points, and Mark Webber 12th with 10 points.

For 2009, the retiring David Coulthard was replaced by Sebastian Vettel from Toro Rosso, while Mark Webber remained with the team. The team ended the year with a double victory at the Abu Dhabi Grand Prix. Vettel finished second in the individual championship with 84 points, 11 behind world champion Button. The team finished second in the constructors' championship, 18.5 points behind Brawn GP. From 2010-13, RBR enjoyed a truly golden era, its World Championship victories making it unchallenged.

The 2014-20 Formula 1 era brought less success for Red Bull (regularly replaced by Mercedes in first place), but remained a worthy rival to Ferrari. In the 2021 season, with a Honda engine, they continue to pile on the surprises, and their fans are predicting the resurrection of RBR in an ever-strengthening F1 team.

Red Bull Ring ‍

The Red Bull Ring (originally called Österreichring, between 1997 and 2003 A1-Ring) is an Austrian race track in Styria. The circuit itself is located in the territory of the municipality of Spielberg, but its access roads are in the immediate vicinity of the municipality of Zeltweg, which is why it is often referred to as the "Zeltweg circuit". The track was renovated in 2011 with financial support from the energy drink manufacturer Red Bull to make it suitable for Formula 1 again and will be back on the calendar for the 2014 season.

Red Bull Racing has won at its home track four times since its inception.

Red Bull sponsoring other sports

In 2006, Red Bull announced they would sponsor the NASCAR Team Red Bull. Lowe's Motor Speedway was their first stop in the Nextel Cup Series. The team was shut down in December 2011 and its assets were acquired by BK Racing.
A major sponsor of Repsol Honda, Red Bull is the title sponsor of Red Bull KTM Factory Racing and Red Bull Honda World Superbike Team.
Football has also been a huge part of the company's activities. The Austrian club SV Austria Salzburg was purchased by Red Bull on 6 April 2005, and it was renamed Red Bull Salzburg, a move that has been heavily criticized by supporters' groups in Austria and across Europe. FC Liefering has also been purchased as Salzburg's feeder club.
Since 2000, the company has owned the Salzburg team in the Austrian Hockey League, now named Red Bull Salzburg. Throughout 2012 and 2013, Red Bull became the team's title sponsor and then bought the club outright.
A new League of Legends team was formed by Red Bull in 2017, Red Bulls, which competed in the European League of Legends Challenger Series from 2017 until it folded in 2018. Several Red Bull sponsored fighting game players to compete in Tekken and Street Fighter games, as well as The International winner OG, who competes in Dota 2.

Felix Baumgartner parachute jump from space

File:Felix Baumgartner, Red Bull Stratos, Hangar 7 (Ank Kumar, Infosys Limited) 01.jpg

Baumgartner and his team saw a mission in the world record attempt, for which the athlete had been preparing since 2005. The jump offered the opportunity to collect data to improve life-saving for astronauts and pilots or potential space tourists and to study the behavior of the human body in the stratosphere. It is critical to make the return from space safe for space crews, as they may have to eject from the aircraft and it is life-threatening to enter the stratosphere in an unprepared space suit in such an emergency.

The first record attempt was scheduled for Oct. 9, 2012, at 11:42 a.m. local time, but a strong wind prevented the 834,497-cubic-meter balloon from inflating safely, as it was twisted by the wind. Wind gusts of up to 40 km/h were measured at the top of the balloon, although the wind speed was not supposed to exceed 5 km/h.

The next attempt was therefore postponed until Sunday, October 14 - a postponement that tested everyone's patience but was the only way to ensure safety. At the press conference after the jump, FAI record holder Brian Utleya announced that Baumgartner had reached a speed of 1342.8 kilometers per hour (Mach 1.24), breaking the speed of sound. The pilot came down from a height of 39,045 meters in 4 minutes and 20 seconds, covering 36,529 meters in freefall.

Red Bull, like Ferrari , has found in sports the marketing platform that best reaches its audience. However, the company has not limited its sponsorship activities to motorsports but supports all sports from ice hockey to extreme sports. The company invests most of its marketing budget in financing the Red Bull Racing Formula 1 team and maintaining the racetrack at the Red Bull Ring.

Red Bull also supports music as a nightlife player and various events aimed at partygoers.

Final thoughts and key takeaways of Red Bull’s story

Who owns red bull today.

Red Bull GmbH is a private company with its headquarters in Salzburg, Austria. Two billionaires own Red bull:

Thai businessman Chalerm Yoovidhya, who owns the majority of the company sitting at 51%. His net worth as of 2021 is estimated at $24.5 billion.
Austrian businessman Dietrich Mateschitz, who owns 49% of the rest of the company. His net worth as of 2022 is estimated at $26 billion.

Growth by numbers

According to Forbes , the brand that gives you wings sold 6.8 billion cans in 171 countries in 2018. Among the fastest-growing markets were India (+30%), Brazil (+22%), and Eastern Europe (+22%). Using a marketing strategy built around extreme events, Red Bull has sold a total of 75 billion cans since 1987.


Revenue	€9.68 billion	€5.9 billion
Number of employees	15,779	10,997
Number of cans sold worldwide	11.582 billion	7.9 billion

Key takeaways from Red Bull's story:

The founders’ agility: Red Bull would certainly not look the way it does today if the founders - a Thai pharmaceutical entrepreneur and an Austrian marketing manager - had not had a clear vision for the brand right from the start.
Product portfolio: The soft drinks market is characterized by the dominance of aggregators (e.g. Coca Cola, which contrary to popular belief does not only produce Coke). To counter this trend, Red Bull has from the beginning thought in terms of a small product portfolio and focused on the energy drink market rather than a diversified range. It was not an easy task, as it was a pioneer in the field at the time of its launch - no other energy drink existed in Europe. The company invested a lot of energy in educating the market, which at first did not welcome this unique product, but now it has become an integral part of it.
Marketing : Instead of investing millions of dollars in television, radio, and Internet advertising, Red Bull took a different approach from the beginning. Although it was initially forced to do so because many countries did not officially license the energy drink, word of mouth is still the strongest element in the company's marketing. The founders succeeded by identifying the two areas where there was a real need for energy drinks and focusing all marketing activities on them.
Sponsorship : Red Bull quickly found its audience among athletes as well as party-goers, so it's no wonder that the company turned to sports sponsorships. One of Red Bull's main marketing weapons has been its own Formula 1 team, as well as sponsorship of a number of ball and extreme sports.

The companies more than 30-year history is a powerful story of challenges, of working against the wind, of the founders' strong vision, of defying business logic, and of perseverance. Even though the Austrian entrepreneur Dietrich Mateschitz has made countless decisions that would not have worked for others and that go against everything that business can teach us, the success of his company is beyond question.

If there is anything we can learn from him, it is surely his belief in his team and his own instinct to put an unknown product on the world map. Red Bull now inspires millions of people a year, its sales are skyrocketing (based on the sales statistics, every person on earth could drink one Red Bull), and its marketing efforts are leading the way for many other companies in the industry.

Red Bull in Fuschl am See: A Special Place for Special People

First Online: 10 May 2016

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Red Bull GmbH was founded in 1984 by Dietrich Mateschitz, who located the company’s headquarters in the Austrian village of Fuschl am See just outside of Salzburg. Before launching the drink in Austria in 1987, Mateschitz spent a year developing the drink’s formula to better suit the tastes of western consumers, including carbonating the drink; despite these changes, Red Bull remained an acquired taste.

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Mahroum, S. (2016). Red Bull in Fuschl am See: A Special Place for Special People. In: Black Swan Start-ups. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-57727-6_7

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Innovation Strategy and Entrepreneurship Red Bull and its successful innovations in the soft drinks market

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Red Bull GmbH

The company product range consists of Red Bull drink, Red Bull sugar free, Red Bull Cola and Red Bull energy shots. Its mission statement is: “We are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner” (Mission/Values, 2011, online)

This article represents a report that presents analysis of marketing communication strategies of Red Bull in two countries – UK and China. The article comprises the review Red Bull’s current marketing communication strategy in UK and China and formulates recommendations for improvement and change for the company.

Red Bull GmbH Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Red Bull GmbH. Moreover, the report contains analyses of Red Bull’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.

Review of the Current Practice

Red bull’s marketing communication strategy, usage of marketing communication strategies by red bull.

Marketing has been identified as one of the most crucial aspects of the business by Red Bull along with many other businesses. Red Bull relies in marketing communication in order to conduct its marketing strategy. Marketing communication can be defined as “all communication activities an organisation undertakes to promote its agenda to its audiences” (Gillis, 2006, p.392).

Marketing communication mix, on the other hand, has been defined as “a number of promotional methods used in combination to promote a particular product through communicating with individuals, groups and organisations in the ‘target group’” (Ruskin-Brown, 2006, p.136)

Moreover, marketing communication mix represents a set of marketing communication modes that can be divided into the following six categories (Kotler and Keller, 2006): advertising, sales promotion, events and experiences, public relations and publicity, direct marketing and personal selling. Each category consists of specific marketing communication tools.

Also, it is important to note that “marketing communication mix refers to totality of efforts made by the firm to communicate with the wholesalers, retailers, present consumer, general public, etc.” (Trehan and Trehan, 2009, p.21). In other words, all the marketing efforts initiated by Red Bull in order to communicate with different stakeholders of the company can be specified as the company’s marketing communication mix.

The Appropriateness of Marketing Communication Messages to the Target Market

A specific customer segment targeted by companies producing energy drinks including Red Bull represent mainly young, urban males within the age range of 16 to 29. These people typically have a habit or aspirations of living on the edge. Accordingly, extreme sports, as well, as other challenging pastimes are popular among this specific category of consumers.

The slogan ‘Red Bull gives you wings’ has been developed by the company in order to attract this specific customer segment, through communicating a message that consumption of the drink makes challenging tasks easier. Moreover, “Red Bull epitomised the modern brand: using the marketing communications mix to become culturally relevant by selling style, a way of life not just product” (Dahlen et al, 2009, p.316).

To summarise the point, it can be stated that Red Bull has formulated appropriate marketing communication messages in order to reach to its target market. As it has been noted, Red Bull target customers are people attempting to live their life fully by leading an active lifestyle and engaging in various dangerous activities. Accordingly, Red Bull marketing communication messages try to convey the idea that the drink provides necessary edge and energy for people that would assist them to lead their desired lifestyle and achieve increased level of performance in many aspects of their life.

Marketing Communications Tools and Media Used by Red Bull

Red Bull communicates its marketing messages to the target customer segment of the company through a wide range of communication tools and media. Marketing communication tools used by the company can be best analysed by dividing them into six broad categories as suggested by Kotler and Keller (2006).

Advertising

Advertising can be defined as “company’s external communication” (Janoschka, 2004, p.15).

Print and broadcast ads . Red Bull is engaged in advertising through print and broadcasting ads in both countries: UK and China. In UK the company has a close partnership with Sunday Telegraph newspaper, distributing the company’s own Red Bulletin magazine with the newspaper, whereas in China Red Bull is advertised occasionally in local newspapers and TV channels.

Billboards. Advertising through billboards is not one of the main marketing strategies for Red Bull. However, billboards are still used to advertise the brand in an occasional manner in UK as well as China.

Packaging outer . The design of packaging outer is used by Red Bull in order to advertise the product. This has been done through displaying the logo of the brand in big size in all Red Bull packages.

Point of purchase displays is one of the main advertising tools used by Red Bull in UK and China. Specifically, in most of the grocery and off-license stores the cans are stored in a container that represents a magnified version of the Red Bull can. Moreover, Red Bull shots are usually placed near the tills advertising the product to all customers of the store.

Symbols and logos are also used by Red Bull as an effective advertising tool in UK, China and other countries. Specifically, the logo of the company, a raging bull is instantly recognised by customers and reminds customers about the value promise of the brand.

Posters advertising Red Bull and sports events sponsored by the company can be found in pubs and clubs in UK as well as China. However, this form of advertising is used in UK in a greater extend compared to China.

Alternative advertising tools currently not used by Red Bull include the use of audiovisual materials, packaging inserts, leaflets, directories and brochures and booklets.

Sales Promotions

Sales promotions is defined by Kurtz et al (2009) as short-term incentives that encourage the sales of products and services.

Sampling has been acknowledged as one of the most effective sales promotion techniques and it is used by Red Bull in an intensive manner. A significant sampling campaign has been initiated by the company with the introduction of Red Bull Cola in Northern America, UK, China and many other substantial markets of the company (Bashin, 2011, online).

In order to achieve a greater level of efficiency, sampling campaigns have been conducted with the use of Mini brand cars that have been specifically designed to carry a magnified version of Red Bull Cola can.

Entertainment is also used by Red Bull for sales promotion purposes. Entertainment activities initiated by the company range from organising Freestyle DJ battles, and dance competitions to various sport events (Featured Entertainment, 2011, online). However, Red Bull initiates entertainments mainly in Europe and US, and the company does not engage in this form of sales promotion in Chinese market.

Other popular sales promotion techniques not engaged in by Red Bull include premiums and gifts, coupons, rebates, exhibitions, and tie-ins.

Events and Experiences

Various types of entertainment events are organised or sponsored by Red Bull in a regular basis. During the year of 2010 alone Red Bull had sponsored more than 23 racing events that include British Grand Prix, Chinese Grand Prix, Australian Grand Prix, and Abu Dhabi Grand Prix to name just a few (2010 Press Releases, online).

Businesses support various types of causes with the purposes of increasing the brand awareness in positive terms. Red Bull supports specific causes for the same purposes as well. For instance, “to raise money for Wings for Life, the charity which funds research into spinal injury, Red Bull is auctioning off some of the most interesting and unique second-hand sporting goods the internet auction site has ever seen” (Coulthard, 2009, online)

Moreover, a number of festivals and arts are sponsored by Red Bull each year that include See No Evil Graffiti Project (Bristol), Fringe NYC Live Art, Edinburgh Festival, Impulstanz Vienna International Dance Festival and others. Sponsoring festivals and arts offers wide brand exposure to the company at the same time creating a good company image.

There are other marketing techniques available Red Bull under the events and experiences category that include organising factory tours and company museums, initiating street activities etc.

Public Relations and Publicity

“Public relations is concerned with an organisation’s relationships with the various groups, or ‘publics’, that affect its ability to achieve its goals and objectives” (McDonald and Wilson, 2011, p.290).

Press kits and publications are initiated by Red Bull in a regular basis to inform the stakeholders of the company in UK, China and other places about new products, events and news related to any other aspect of the business.

Along with many other multinational corporations Red Bull publishes annual reports through which the company communicates important messages to the public and other stakeholders of the company. At the same time, annual reports serve as an effective advertising tool where the main achievements and strengths of the business are highlighted.

Identity media is considered to be one of the most effective advertising tools. This form of advertisement is fully used by Red Bull through developing the brand’s own online TV channel and magazine. Red Bull TV is an online television channel that mainly covers sporting events sponsored by the company and airs other programs that aim to attract the target customer segment of the company. Red Bulletin, on the other hand, is a monthly magazine that is distributed with Sunday Telegraph newspaper.

Red Bull can also explore alternative public relations and publicity tools and techniques that include initiating speeches, seminars, lobbying, as well as, engaging in community relations.

Direct Marketing

Direct marketing is defined by Mueller (2010), as a direct communication between seller and the buyer without use of any intermediary media. There are many forms of direct marketing that include shopping online, telephone shopping, catalogues, shopping through fax, mailings, TV shopping, telemarketing and others.

Direct marketing is mainly popular with products of high value such as technology items, furniture etc. Red Bull does not use any of the above mentioned direct marketing tools for the retail customers.

Personal Selling

Kitchen (2010) explains personal selling as personal sales presentation made by company’s sales representatives with the aims of making sales and initiating customer relationships. The advantages of personal selling are two-way communication of messages, and personal attention to customers, whereas it’s main disadvantage relates to its extremely high costs.

No evidences have been found in secondary research related to the Red Bull’s engagement in personal selling initiatives.

Additional Marketing Tools

Apart from traditional marketing tools and techniques listed above Red Bull is also engaged with a range of additional marketing tools that include product placement and viral marketing. For instance, Red Bull has been effectively advertised in movies such as Hellboy and Hellboy II, where the main character, a positive character is seen drinking Red Bull on several occasions.

Moreover, “Red Bull has integrated its product in the platform game Worms 3D where it serves as a follow up. A clever integration, oddly shaped power-ups with ever weirder results are part of all games in the Worms series. In the game a can of Red Bull serves as a powerful dimulation of the Red Bull slogan ‘Red Bull gives you wings’”(Graaf and Washida, 2007, p.105).

The Key Similarities and Differences of Marketing Communications in UK and China

The key similarities in the use of marketing communication tools in UK and Chinese markets relate to highlighting the high quality of the drink and its ability to increase mental and physical performance of individuals, however there are differences as well.

The key differences in marketing communications of Red Bull in UK and Chinese markets relate to the slogan of the company, as well as the design of the cans.

The slogan of ‘Red Bull gives you wings’ is used by the company in order to sell the drink in European and US markets. In Chinese market, on the other hand, this slogan has been altered to ‘Drink Red Bull when you feel sleepy or tired’ in order to address the cultural differences associated with the local consumers (Xinzhen, 2009, online).

Moreover, Red Bull cans in Chinese stores have a bright yellow colour with words written in black colour, in order to appeal to the preferences of local customers.

The Challenge of Practicing Integrated Marketing Communications (IMC) by Red Bull

The definition of IMC has been proposed as “a communication process that entails the planning, creation, integration, and implementation of diverse forms of marcom (advertisements, sales promotions, publicity releases, events etc.) that are delivered over time to a brand’s targeted customers and prospects” (Shimp, 2007, p.10).

The key features of IMC can be summarised into the following points as proposed by Pickton and Broderick (2005) and Sharma (2009):

Marketing communications have to be devised addressing the needs of customers;
The choice of elements of marketing communication tools depends on the nature of the product (or service) and other factors associated with it;
Marketing messages communicated through different channels have to convey the same idea (which is the value offering of the brand);
Building long-term relationships with customers;
Affecting consumer behaviour.

The Key Issues Impacting upon Red Bull’s Ability to Practice IMC

There are set of issues that impact upon Red Bull’s successful implementation of IMC practices. The greatest issue of this nature relates to the integration of marketing communication efforts implemented through various channels. In other words, unless all elements of Red Bull marketing communication tools are fully coordinated with each other, the quality IMC outcome would be greatly compromised.

Moreover, another issue related to the successful implementation of IMC practices by Red Bull involves marketing communication suppliers such as public relations agencies, advertising agencies, sales promotion companies etc. Specifically, the differences between various business strategies of these companies may negatively affect on the level of integration of the company marketing messages and the level of customer perception of those messages.

The Evidence of IMC in Red Bull’s Marketing Strategy

There is a clear evidence of IMC in Red Bull’s marketing strategy. The company management aim to associate the brand with such ‘values’ as being highly energetic, living and enjoying the life to the full, and performing with an increased level of efficiency in whatever an individual is engaged in etc.

Marketing messages communicated by Red Bull through various channels aim to highlight the above ideas and they do not contradict with each-other. For instance, being an important marketing communication tool the company slogan of ‘Red Bull gives you wings’ is further highlighted by the company initiatives that involve sponsoring racing events.

Recommendations for Improvement and Change for Red Bull

Marketing communication objective for red bull.

Red Bull is to introduce a new marketing campaign in Autumn 2011 in China. The marketing communication objectives for the campaign would include the following points:

To enhance the level of Red Bull brand awareness in China by 50%;
To improve the image of the company among different stakeholders of the company;
To appeal to a new customer segment of girls aged between 16-29 and increasing their share within current Red Bull customers to 40%

Marketing communication objectives for the new Red Bull campaign relate to the company’s organisational objectives in a direct manner. This is because all three objectives formulated above serve the primary objective of profit maximisation of the company, and at the same time they contribute to the long-term growth of the company through increasing the level of brand awareness among population and improving the image of Red Bull in general.

Target Market for Campaign

The importance of selecting appropriate target market is stressed by Pride and Ferrell (2011), who maintain that products and services cannot appeal to everyone due to the differences among individuals in various levels; hence classifications are required among the population according to their common needs.

Red Bull’s target market in China so far has represented males aged between 16-29, that lead an active lifestyle or aspire to lead such a lifestyle. The company has successfully communicated its marketing messages to this target market which has resulted in increasing levels of revenues for the business.

However, there is a potential for further increasing Red Bull revenues, through increasing the target market for the company. Specifically, the marketing campaign to be implemented in Autumn 2011 aims to target girls in China within the same age range of 16-29.

The justification for the selection of the target market can be done by pointing to the fact that due to the increasing forces of globalisation Chinese society is being influenced by the values of Western societies, and as a result increasing numbers of Chinese girls aged 16-29 are starting to appreciate the values of active lifestyle traditionally communicated by Red Bull.

Campaign Message and Creative Idea

The message for Autumn 2011 campaign is “Drink Red Bull & Perform in Full Capacity”. The marketing campaign involves the communication of this message through various channels in an integrated manner.

The effectiveness of the campaign slogan can be justified by pointing to the fact that traditionally Chinese women and girls have assumed secondary roles in society due to cultural characteristics. However, as a result of globalisation numbers of females are increasing within the Chinese society who dare to be active and compete with males in aspects of personal and professional lives. The new Red Bull slogan appeals to this specific category of females.

It is important to note that, the new Red Bull slogan proposed in this report does not contradict with precious slogans, and even compliments them, thus ensuring that traditional Red Bulls customers – males are not negatively affected.

The main creative approach to the implementation of the marketing campaign relates to the use of viral marketing. It has been stated that “the concept of viral marketing starts with the premise that people pass or tell people they know about products or anything they like or even dislike” (Allen, 2010, p.60).

The viral marketing for the campaign is going to be conducted through a range of global social networking sites such as Facebook.com, MySpace.com, and Friendster.com, as well as Chinese social networking sites that include renren.com, igloo.com and kaixin001.com.

Moreover, during the marketing campaign the viral marketing is going to be integrated with other forms marketing that include celebrity endorsements, TV ads, events and experiences, as well as billboards advertisement.

Gantt Chart Plan for the Campaign

The proposed marketing campaign is going to be conducted on the following manner:

Month
Week	36	37	38	39	40	41	42	43	44	45	46	47

The budget for the marketing campaign is going to be distributed in the following manner:


Viral marketing	29.3
Celebrity endorsements	33.4
TV advertisements	14.8
Events and experiences	14.7
Billboards	7.8

Evidence of Integration

The marketing plan for the campaign Autumn 2011 is fully integrated with the general marketing strategy of Red Bull. This statement can be proved by the following two points:

First, the proposed marketing plan will positively contribute to the level of revenues of Red Bull through extending the target customer group of the company.

Second, the Red Bull brand in general is going to be promoted as a result of successful implementation of the proposed plan that contributes to the long-term aims and objectives of the company

Allen, K, 2010, Viral Marketing 100 Success Secrets, Lulu Publications
Bashin, K, 2011, Red Bull Pulls the Plug on Cola and Energy Shot Drinks, Available at: http://www.businessinsider.com/red-bull-pulls-the-plug-on-cola-and-shot-drinks-2011-7 , Accessed August 17, 2011
Company Figures, 2011, Red Bull, Available at: http://www.redbull.com/cs/Satellite/en_INT/company-figures/001242939605518?pcs_c=PCS_Product&pcs_cid=1242937556133 Accessed August 16, 2011
Coulthard, D, 2011, Red Bull auctions F1 car for charity, Available at: http://www.f1technical.net/news/8248 Accessed August, 20, 2011
Dahlen, M, Lange, F & Smith, T, 2009, Marketing Communications: A Brand narrative Approach, John Wiley & Sons
Featured Entertainment, 2011, Red Bull, Available at: http://www.redbullusa.com/cs/Satellite/en_US/Music/001242746208599 Accessed August, 19, 2011
Gillis, TL, 2006, The IABC Handbook of Organisational Communication, John Wiley & Sons
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Janoschka, A, 2004, Wed Advertising: New Forms of Communication on the Internet, John Benjamins
Kitchen, PJ, 2010, A Reader in Marketing Communications, Taylor & Francis
Kurtz, DL, MacKenzie, HF & Snow, K, 2009, Contemporary Marketing, Cengage Learning
McDonald, M & Wilson, H, 2011, Marketing Plans: How to Prepare Them, How to Use Them, John Wiley & Sons
Mission/Values, 2011, Available at: http://sites.google.com/site/bhirabanmgmt396/missions-values Accessed August 16, 2011
Mueller, B, 2010, Dynamics of International Advertising: Theoretical and Practical Perspectives, Peter Lang
Pickton, D, & Broderick, A, 2005, “Integrated Marketing Communications”, Pearson Education Limited, Harlow
Pride, WM & Ferrel, OC, 2011, Marketing, 2012 edition, Cengage Learning
Ruskin-Brown, I, 2006, Mastering Marketing, Thorogood Publishing
Sharma, M, 2009, Product Management: Product Lifecycle and Competitive Marketing Strategy, Global India Publications
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Xinzhen, L, 2009, Red Bull Crisis, Available at: http://www.bjreview.com.cn/quotes/txt/2009-06/19/content_203239.htm Accessed August 20, 2011
2010 Press Releases, Red Bull, Available at: http://www.redbullracing.com/cs/Satellite/en_INT/Sports/Motor-Sports-/Red-Bull-Racing/Red-Bull-Racing-Media/001242906708115?year=2010 Accessed August 20, 2011

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Innovation Strategy and Entrepreneurship Red Bull and its successful innovations in the soft drinks market

Red Bull GmbH

Review of the Current Practice

The Appropriateness of Marketing Communication Messages to the Target Market