Red Bull Energy Drink
I. RED BULL’S HISTORY.
Corporate legend has it that in the early 1980s, while traveling to Asia on business, Austrian Dietrich Mateschiz came across some very popular “energy drinks”. With his (self-describe) “uncanny instinct for successful product innovations”, he schlepped a small sample of energy beverages back to Europe along with a big idea. Then with a clear vision and a lot of scientific know-how, Dietrich (and what was surely several unnamed food scientists) gave birth to the Red Bull Energy Drink.
In 1997, Red Bull sold one million cans, helped no doubt by its introduction to US consumers after a decade on European shelves. In 1998, Red Bull sales mutated to over 300 million cans and last year in what at first appears to be some kind of bookkeeping typo Red Bull reported world wide sales of one billion US$.
Indisputably, the dominant energy-drink brand, Red Bull has chosen to stick with its one product beverage line, avoiding branching out into similar areas such as energy bars or other sports-related products.
Red Bull was introduced to the Lebanese market in 2001. The mother company in Austria operates directly in Lebanon through a brand manager who reports to the regional manager of the Middle East and the Far East based in Dubai. Red Bull Lebanese brand manager is Mr. Elias Hankach. Red Bull is an energetic drink that has two brand lines: Red Bull original and Red Bull sugar free. The main ingredients of Red Bull are: Taurin, caffeine and a lot of vitamins. There is only one size of Red Bull can on the market that is produced in Austria, and the product is standardized world wide.
II. BRAND ELEMENTS.
1. Brand name: Red Bull is the brand name of the product. It is a Compound, Arbitrary name, because it’s a combination of two unexpected real words with no obvious tie-in to the company. Because the brand name is simple, different, distinctive unusual, easy to pronounce and spell, the company have build strong brand awareness through out the world. Whenever we say energy drink; the world says Red Bull.
2. Logo and Symbols: Red Bull is using an abstract logo that is related directly to the name. The components of the logo are two thick-necked Herculean crimson bulls in opposing charge against a yellow sun. This sun represents the human mind, the bulls represent the muscles and t...
... middle of paper ...
...mer.
VIII. PROBLEMS ENCOUNTERD.
The trouble in paradise for Red Bull is that the brand exists in a world of smoke and mirrors, rumors and urban legends. Red Bull problems can be divided in to international and local problems. Internationally and because it’s a well known company many rumors about it components, like taurine is made from bulls’ testicles… The company has answered all the questions concerning the roomers on its web site. In Lebanon the major problem is in night clubs were people are asking for Red Bull in there drinks but served with something else. Whenever the company knows of such an act it is taking action against this night club because he’s cheating the consumers and when there are asking for Red Bull they are getting less.
IX. Conclusion.
Since the birth of Red Bull, marketers worked very effectively to turn an unknown product into what it is now! A leader in its segment with a high brand equity leaving competitors far behind.
Some of our recommendations:
• Ads must have a Lebanese aspect so they can attract Lebanese customer more.
• They should try to under saturate the market.
• Try to increase a bit sales promotion.
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The energy bar market grew from a grass roots effort focused on the consumer base of performance athletes. These athletes usually obtained products at competitive events that were geared towards the everyday consumer. The build up of this market is attributed to PowerBar, but there was significant contribution from others.
Red Bull is an energy drink that doesn't do well in taste tests. Some say it's too sweet. Others just shake their heads, saying, "No." Its contents are not patented, and all the ingredients are listed on the outside of the slim silver can. Yet Red Bull has a 70 to 90 percent market share in over 100 countries worldwide. During the past 15 years, the drink has been copied by more than 100 competitors, but such companies as Coca-Cola and Anheuser-Busch have been unable to take market share away from Red Bull.
Red Bull is an energy drink manufactured, distributed, and marketed by Red Bull GmbH, which is a company in Austria. The company was established in 1987 in Austria and hit the global markets in 1996. Red Bull is the most popular energy drink across the world selling an estimated 5.2billion cans in 2012 as reported by Symphony IRI. The company commands a 50% and 46% market share of energy drink industry in Canada and United States respectively. The brand is also marketed in Europe, Asia and has recently ventured the African market with the establishment of a distribution depot in South Africa. Further, the company generated approximately $400 million in sales in America and Canada alone in 2012.
Red Bull has becoming hugely successful and operates within the global soft drink marketplace. Within the soft drink industry its niche is the ‘energy drink’ market, of which Mateschitz was largely responsible for creating. Red Bull currently is the leading energy drink across the entire globe. It holds 70% of the market worldwide (Gschwandtner, 2004). Once the drink was passed by health ministries, Red Bull entered the Austrian market, soon thereafter then moved into Germany, United Kingdom and the USA by 1997.
Our society face various problems related to energy drinks. Daily Mail (2017) states that the affordability of energy drinks has made school children dependent on them and Australian students performance were worse than before, due to excessive intake of energy drinks. 35 year old Mick Clarke was dead after excessive intake of energy drinks (Harradine 2014). Three Canadian males died after drinking Red Bull (Energy drinks suspected to have caused deaths of 3 Canadian 2012). Similarly, many people face these kind of problems many of the cases are published and thus, hidden
Background - RedBull was launched in 1987 by GmbH and was derived from a Thai drink KratingDaeng. Austria was the first place where Red Bull started its business in 1987.It started its business in Hungary in 1992 and the United states in 1997. These were the first foreign market for a Red Bull energy drink. Itsslogan “RedBull Gives You Wings” started in German...
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
“The term energy drink refers to a beverage that contains caffeine in a combination with other ingredients such as taurine, guarana, and B vitamins, and that
1.Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together . The fact that Red Bull is seen as a luxury and sports drink is a strength, weakness, opportunity, and threat within itself (Kansara, 2); being labeled as such sets Red Bull apart from their competitors, pushing them into one field and industry to prosper in and be associated with, leaving them opportunity to determine the way that industry will grow as they are the pioneers but also threatening their hopes for expansion. In a nutshell, in order for Red Bull to truly work towards their mission
Red Bull. 5 Hour Energy. Monster. These energy drinks are becoming increasingly popular not just for teenagers and college kids, but in the world of athletics as well. Athletes around the world are drinking these beverages for a boost in athletic performance and stamina to get an edge over their opponents. These drinks are even being promoted by professional athletes! This increasing popularity and consumption begs the question: are these drinks safe? I decided to dig into this question, and I have found some pretty startling answers. The drinks may bring enhanced performance and energy, but they also come with potential health risks. These health risks heavily outweigh the benefits the drinks could possibly bring.
Making a successful public presentation or speech to an audience was a very big task for me before I joined the public speaking class. I was always frightened and very nervous. Since then I now understand the process of making a speech or a presentation including coming up with a topic and from this topic develop the main points of the speech, research, organize my points, revise them, edit and make a magnificent presentation to any audience. People in the audience might sometimes agree or disagree with my opinion or points, it was therefore necessary to communicate my information clearly to the audience without making any judgments since every person was entitled to a different opinion and views about things.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging
The way we communicate can be very important in representing ourselves in our community. In the beginning, of the semester, we watched a movie regarding a royal member whom was looked down upon because of his verbal pauses. However, throughout the movie he learns to work with his speaking style. He may have not completely eliminated the flaw but, he did learn how to overcome and adjust with it is style of public speaking. Public speaking is very power it as the authority to make an audience shock, upset, surprised, disbelief, and even to become inspired. By using structure in a speech and applying ethos, pathos, and logos can create a deeper connection to the audience. Therefore, the most impactful part of a speech is its introduction. Such that if the speaker implies a power attention getter they are able to deliver their message successfully. In my class presentation, the times I won speaker of the day I noticed that within my speech the only reason why I was selected was because I provided a strong attention getter and because my voice was very loud and it had minimal of verbal pauses. I have learned that any speech can be delivered successfully when the elements of structure and practiced are present. For most of my presentation to prepare I would practice my speech by recording myself with a tape recorder and then replying. This allowed