Interesante artículo de la Revista Contagius acerca de Red Bull.

1. case study / red bull /
A BULL MARKET

2. 44 / 45
CASE STUDY / RED BULL / A BULL MARKET /
RED BULL DEFIES GRAVITY AND
CONVENTION. ONCE THE PRESERVE OF
TIRED THAI TRUCK DRIVERS, THE BRAND
SHIFTED NEARLY TWO BILLION CANS LAST
YEAR AND DOMINATES EVERY NATIONAL
MARKET IN WHICH IT IS PRESENT. ITS
GRASSROOTS MARKETING AND SAMPLING
STRATEGY HAS SPAWNED A LEGION OF
ADMIRERS, FROM HIP CLUBSTERS TO
JADED CUBICLE-DWELLERS. ITS CAPACITY
TO MAKE FRIENDS ALONG THE ENTIRE
SPORTING SPECTRUM, VIA CRICKETERS
AND GOLFERS TO AEROBATIC PILOTS AND
PEOPLE WHO THROW THEMSELVES OFF
MOUNTAINS FOR FUN HAS TURNED THE
BLUE AND SILVER CAN INTO A SYMBOL FOR
A WAY OF LIFE / SUZY BASHFORD UNCOVERS THE STORY
BEHIND AN ICONIC DRINK THAT SELLS ON FUNCTION RATHER THAN TASTE /

3. case study / red bull /
Revolutionary. Multi-faceted. Anti-brand. Non- cricketers said when they got home after that,’ smiles
conformist. These are all terms that have been used to Kastner.
describe Red Bull's marketing approach. But ask the Red Bull boasts at least 70% of every national market
man who came up with the now ubiquitous ‘Red Bull in which it is present and is still growing rapidly. Last
gives you wiiings’ slogan to shed some light on this year company sales rose by 32.3% from 1.261 billion
hugely successful brand strategy, and you realise it is Euros to 1.668 billion Euros. Sales were up 50% in the
actually overwhelmingly simple. USA, 43% in the Middle East, 40% in Australia and
‘Red Bull is all about making friends. Not buying people. 30% in Eastern Europe. Also in 2004, the company
Because Red Bull became a friend, a real personality, established new subsidiaries in Canada, Turkey, Russia
people feel emotional towards it. They do things for us and Romania.
that they wouldn't do for Coca-Cola,’ says Johannes Red Bull's appeal has grown by targeting opinion
Kastner, founder of international advertising network formers, who drive sales through word of mouth and by
Kastner & Partners. The agency has been working on association. Extreme sportsmen. Hollywood stuntmen.
the account since 1984, three years before the brand's Barmen at the trendiest haunts. Formula 1 drivers. Now,
official launch, and has been integral to its product even golfers. This seeding strategy has made Red Bull
design and development. the clear global energy drink market leader, selling
This is hardly the answer you would expect for a brand 1.935 billion cans in 2004.
with such an edgy image, steeped in urban legend and What these key audiences say is infinitely more
living life at the limits. The strategy is so simple that it important to Red Bull than what the media says.
could even be mistaken for a playground guide on how Compared to many other brands in the 'lifestyle' sector,
to get down with the ‘in’ crowd. In fact, the way that Red Bull certainly doesn't bend over backwards to woo
Kastner describes the approach is startlingly similar to and accommodate reporters writing about the company,
the definition of a good friend given on charity yet it still manages to garner significant media coverage
Kidscape's website: ‘Good friends show an interest in for its exploits.
what people do; go around with a pleasant expression
At Red Bull events, journalists tend to come away with
on their face; ask to join in, don't demand; offer to help
the impression that the PR team's attention is clearly on
others with work or carry things; invite people to do
the participants for whom the event is being thrown,
something; hang around places where other people
rather than the peripheral media types. To Red Bull, the
they make friends with are; are good at thinking of
participants are the real opinion-formers. After all, as
interesting things to do; are willing to share; are
Red Bull knows, showing off is no way to make friends
humourous; and are good at organising games or
and influence people.
activities.
(www.kidscape.org.uk/childrenteens/makingfriends/1m ‘To advertise oneself is not good. We don't say “come
akingfriends.shtml) and look at how wonderful we are everybody”. That
would not be laid back. That would be aggressive, old-
Whether Red Bull is building a start-gate to allow an
style marketing. It's always better to let others say how
up and coming snowboarder to improve his race
great we are’, states Kastner.
technique, throwing parties with free drinks so that
clubbers can dance all night or helping students stay He adds that Red Bull doesn't even promote one of its
awake while revising, these rules of the playground are most defining and famous worldwide events in a way
applied scrupulously. that garners positive coverage for the brand: the
Flugtag. Participants make wings and attempt to fly in
‘We have a lot of respect. We don't push people to do
their homemade contraptions, a sight witnessed by
anything. We give them ideas. We give them a product.
thousands of spectators, sometimes more than 50,000.
They can do want they want. In TV clips we never ask
According to Kastner, the Flugtag is only advertised in a
them to say things or give them logos. We're there to
way that helps people who have created the machines
help them. We're there to give them experiences they
be seen. At Flugtag time, Red Bull replaces its normal
can't buy. It's humanistic thinking,’ says Kastner.
above the line ads with pictures or footage of previous
An example of one such experience came after the competition participants. These may catch people
English cricket team famously won The Ashes this drinking Red Bull or wearing a Red Bull helmet, for
summer. Red Bull flew the team members and their wives example, but the branding is incidental to the main
in one of its 'Flying Bulls', a Douglas DC-6, to Venice for a message that focuses on encouraging performers to
week. Even before this gesture, Andrew Flintoff and Kevin take part.
Pietersen happily told the broadcast media how they drank
Kastner argues that such a strong bond has been
Red Bull before a game. ‘You can imagine what the

4. 46 / 47
©Karoly Arvai
RACE WORLD SERIES / THE FLYING BULLS AEROBATICS TEAM 2005 /
FLUGTAG / BRATISLAVA 2005 /
©Christian Pondella
FLUGTAG / MIAMI 2004 /
“Because Red Bull became a friend, a real personaliy,
people fel emotional towards i. They do things for
us that they wouldn't do for Coca-Cola.”
©Mattias Fredriksson
©Berhard Spottel
FREESTYLE SKIING / HENRIK WINDSTEDT / FELIX BAUMGARTNER / CHANNEL CROSSING /

5. case study / red bull /
created between consumers and Red Bull, that when rid of his jetlag and, recognising its potential as an
they walk down the street clutching their can they are energy-giving drink, he spent the next few years refining
using it to identify themselves: ‘They want to express the recipe. Today, Mateschitz owns 49% of the
something by holding this can. They want to say “I am business, with his Thai partner Chaleo Yoovidhya also
like the personality of this can”. They want to say we are retaining 49%. The remaining stake is owned by another
professional. We are smart. We are good at sport. We Thai associate, Chalerm Yoovidhya.
first kissed a girl when we were twelve. We smoked Mateschitz wanted Kastner to help him with the
cigarettes very early. Maybe we've spent a night in marketing strategy. A famously fraught few years
prison before because of a big party we had. But we are followed. Not only did the duo struggle to agree on a
smart, we don't spend all our time getting drunk.’ slogan, but the product researched appallingly. Nobody
In other words, as Lars Emilson, the chief executive of had ever encountered anything like it before. Or tasted
the brand's can company Rexam said in September anything quite like it. When they did, many hated it.
when it delivered its 10 billionth unit to Red Bull: ‘The Many focus group participants thought the tonic tasted
can has become a symbol for a way of life’. This symbol sickly sweet like liquid jelly babies or cough medicine.
is Red Bull's capital. As Austrian billionaire founder And they thought it was substantially over-priced for its
Dietrich Mateschitz has said: ‘we have no real material slim can size.
assets, our asset is the brand’. Some were also put off by the strange-sounding
Red Bull's slogan itself arose from the friendship chemicals on the ingredients list, like taurine and
between Mateschitz and Kastner. This partnership too glucuronolactone. The rumour mill went ballistic. Was it
has been fundamental to the brand's strong personality, bad for children? Or an aphrodisiac? Or the equivalent
says Kastner: ‘We'd both lived the 70s, with The Stones of 14 espressos? Was it really made of bulls' testicles?
and Spencer Davis and so on and we thought differently But Mateschitz was convinced that if people
[to other marketers]. Advertising was always telling understood the product's functional benefits - that it
people things like “Your laundry is not white enough”. ‘vitalises body and mind’ - they would buy it. He also
We always thought that was stupid. We thought saw the merit in leveraging all the myths around the
differently. Finally with Red Bull we were able to execute brand to his advantage.
our thinking. We were two entrepreneurs. We didn't
‘The rumours and confusion add to the brand. These
take ourselves too seriously. We weren't pushy. We
myths and word of mouth add up to something quite
were laid back. The brand is very personal. We're both
close to a magical potion,’ explains Carsten Beers,
in it. That's why it's so authentic.’
international account supervisor at Kastner & Partners.
The pair met while studying at the World Trade
The brand is still boosted by the air of mystique that
Institute in Vienna and Mateschitz turned to Kastner
hangs over it today, aided by France's ongoing ban of
when planning the launch of Red Bull. Born in 1945,
the product on the grounds that it is ‘harmful’. ‘This is
Mateschitz grew up in the Mürz valley, Styria,
just the French protecting their own market and they
surrounded by a family of teachers. He, however, didn't
need an excuse, so they say they need more research
thrive academically at school. According to Trend, an
on taurine, a harmless acid. But it helps the rumour. Red
Austrian magazine which crowned Mateschitz its 'Man
Bull gets smuggled into France from Switzerland and
of the Year' in 2000: ‘At age 18, Mateschitz headed to
Belgium’, says Beers.
Vienna and spent the next 10 years happily bumming
around as a student. The essentials were sent from Undeterred, Mateschitz launched Red Bull in Austria in
home and he earned the luxuries himself: as a travel 1987. Problem was, at that time there was very little
guide, as a barman in Switzerland, as a steel-worker in marketing budget because all the investment had gone
Sweden.’ into production, research and gaining government
approval for the product from the health ministry. And
The magazine afforded Mateschitz this accolade
Mateschitz does not believe in borrowing money,
because ‘he's a marketing wizard. He has taken a
preferring to run his company via cashflow rather than
product which is nothing special and made an
debt. Red Bull was forced into a grassroots strategy,
international success of it, through sheer strength of
which has since become its trademark.
brand image and clever marketing’.
This approach is often credited as the main reason the
At 28, Mateschitz got a job in marketing at Unilever
brand succeeded in creating the energy drinks market.
where he was responsible for Omo, Sunlight and Lux. It
But The Henley Centre's Tamar Kasriel, head of
was through his travels marketing toothpaste for
knowledge venturing, believes its fortune can be
Blendax in 1982 that he came across a tonic that Thai
attributed to more than just clever marketing: ‘Red Bull
drivers used to stay alert at the wheel. He drank it to get

6. 48 / 49
©Jürgen Skarwan
©ulrichgrill.com
HANGAR-7 / SALZBURG, AUSTRIA 2005 /
HANGAR-7 / SALZBURG, AUSTRIA /
AIR RACE WORLD SERIES / NETHERLANDS 2005 /
©Markus Leodolter
CLIFF DIVING / AUSTRIA 2005 /
"We have no real material assets,
©Szolt Szigetvary
our asset is the brand.” / Dietrich Mateschiz
BUDAPEST 2005 /
©Jürgen Skarwan
©Karoly Arvai
“TOGETHER” / GUNTHER EICHER / AUSTRIA 2002 /
MOUNTAINBIKE FREERIDE /

7. case study / red bull /
has been very smart or very lucky, or both. Some of its present in over 100 countries.
success is down to its first mover advantage and some That's not to say it does not do traditional marketing.
is because of the revolutionary, subversive edge given to Red Bull executes a highly conservative, ‘problem and
it by its early, grassroots marketing. Through both, it now solution Procter and Gamble style’, above the line
takes the lead on fuelling people's ability to have fun.’ strategy, says Kastner. But the brand's playful cartoon
Many blatant copycat rivals have crashed and burned ads, which air globally, are more of an amusing aside to
in Red Bull's wake. The aptly named Burn, owned by complement the core events and sponsorship strategy.
Coca-Cola, fell flat when it tried to take on Red Bull in As an adjunct they're often overlooked, which could
the UK market in 2000. explain why some pundits applauded Red Bull's ‘stealth’
strategy on entering the US despite the fact it spent
Ex-Coca-Cola marketer Phil Roman, now chief
$100m on traditional media.
executive of agency Meerkat Culture, believes Red Bull
still has its stranglehold because no one has come up As it becomes more mainstream, viral marketing is
with a better product yet. ‘All of them have dabbled and becoming increasingly important. In the UK for the last
struggled and finally failed to say “here's a clear two years, for example, agency Blowfish has been
positioning of something that's different and here's tasked to create parties that keep the brand on the right
why”’, he says. ‘But Sprite 3G [Coke's latest energy side of cool. ‘Our brief was to do something quirky and
drink launch] will be interesting. It tastes good for a interesting and keep Red Bull alive in an underground
start.’ way,’ says Chris Pearce, managing partner at Blowfish.
But Red Bull has never been about the taste. Launch Targeting ‘movers and shakers in key towns’, Blowfish
marketing focused on sampling. The brand had to organised a series of secret parties. The most
persuade consumers to drink for a physical benefit, fashionable haunts were targeted with flyers bearing the
rather than the taste. It enlisted an army of souped-up headline 'Please keep on the grass', accompanied by a
super samplers, driving cars with giant Red Bull cans blurry image of an armoured vehicle and a URL but no
mounted on their roofs. These teams policed the streets Red Bull branding.
targeting the tired outside gyms, university campuses ‘Red Bull wanted to do something that was an antidote
and offices. to the heavily branded and overt TV advertising targeting
Red Bull was one of the first companies to realise the the mainstream. This was about discovering something
power of student brand managers. Little encouragement for themselves,’ says Pearce. ‘Personal invites were
was needed for students to throw parties other than the distributed and invitees were told by text where to meet.’
free cases of Red Bull, especially when they realised ‘On the night we picked up about 400 people in buses
what a potent mix Red Bull and vodka proved. The brand and transported them to the country. Everyone was
manager role is an informal one, with students chosen saying “what the hell are we doing?” They thought they
for their outgoing personalities. In return, Red Bull gives were being abducted when we took them on a 25
them free drinks, covers the social costs incurred and minute walk along a dirt track’, says Pearce. When they
makes a modest contribution towards funding their reached the top of the hill, they looked down into the
studies. illuminated valley to see bars, dance floors and the
The brand has stuck to this grassroots strategy when armoured truck in the centre. Free Red Bull was
launching in new territories. After conquering the everywhere, but no banners or logos.
Austrian market, Red Bull launched in Hungary and This is typical of the type of underground marketing
Germany in 1992, before entering the UK in 1995 and done by Red Bull around the globe. Pearce admits it's
California, the first state in the US, in 1998. It is now incredibly difficult to measure the effectiveness of such
©Sutton Motorsport Images
niche marketing. But as Kastner says, ‘making friends is
not about asking what you get out of something’.
Red Bull's Music Academy is another case in point.
‘We thought we should be present in music’, says
Kastner. ‘But we didn't want to sponsor a big contest.
We wanted to help young musicians improve their
talents.’ Founded in 1998 and headquartered in
different international cities each year, the Academy
selects DJs, singers, songwriters and producers to
spend two weeks with renowned musicians, to
exchange ideas, learn and network. During this time they
RED BULL FORMULA 1 / come face to face with their music heroes, from pirate

8. 50 / 51
radio station operators to turntablists to ‘sonic theorists’. ‘Red Bull has sponsored so many of these sports
Drummer Bernard Purdie, boogie pioneer Leroy personalities that it has become ubiquitous. It's
Burgess, mixer Bob Power and African jazz artist Hugh everywhere you turn. Whether it's snowboarding,
Masekela have all been guest lecturers. skateboarding or BMX-ing, the place is saturated with
The Music Academy is supported by its more recent people drinking Red Bull. They’ve seeded it beautifully.
ventures such as Artsehcro. Spelling orchestra They've been particularly good at linking with high
backwards, this initiative brings the DJ's turntable into profile, potentially dangerous events that have grabbed
the classical music world. The brand also has what it attention, like speed skiing,’ says Matt Hales, planning
calls its own ‘web radio’. It consists of a library of new director at sports marketing agency Octagon.
music, which can be heard while accessing a photo One of Red Bull's most famous athletes is Austrian
archive of Red Bull events. base jumper Felix Baumgartner, who became the first
Another fundamental part of Red Bull's strategy to man to fly across the English channel without using an
target opinion formers is extreme sports. As Soft Drinks aircraft in 2003. Instead, he was supported by a pair of
International magazine's features editor Annette Red Bull branded, carbon fibre wings. On touchdown
Sessions says: ‘Red Bull has become almost his words could not have more ‘on brand’ had Red Bull
synonymous with speed sports. Its many sponsorships marketers chosen them. ‘It was total freedom,’ he said,
have given it a high profile in activities as diverse as echoing Mateshitz's mantra that Red Bull gives people
motor racing, bobsleds and aerobatic flying. Its the freedom to do what they want. Baumgartner's words
marketing strategy, including the sponsorship of such and pictures were then promptly beamed around the
action sports, must be working: the brand hasn't needed globe and seen by over 200 million people (Selling
to change direction in either its formula or packaging. Power magazine, USA, September 2004).
There have been no makeovers, no on-pack promotions, More recently, Red Bull has moved into mainstream
no two for the price of ones etc, that are seen elsewhere events and sponsorships. Using the hook of extreme
to regenerate and bring new life to brands.’ sports, it launched the Taurus World Stunt Awards to
Indeed, the only product change the brand has made honour Hollywood stuntmen and women in front of a
since it launched is the introduction of a sugar-free star-studded audience on the Paramount Pictures lot.
variant, which has boosted sales. Extreme sports suit As Mateschitz said at this year's gala ceremony: ‘Stunt
the brand because they accentuate the product artists are the ultimate extreme athletes, so it seemed
benefits; when athletes are pushed to the limits of their only natural to create an event that would reward these
endurance, whether they're base jumping, kayaking, free unsung heroes.’
skiing, mountain-biking or cliff diving, Red Bull is there Less predictable is Red Bull's move into traditional
to stimulate body and mind. sports like cricket, Formula 1 and particularly golf. Last
The bolder the event, the better. Earlier this year Red year it created the Red Bull Final 5 competition on the
Bull held a ‘Big Wave’ surfing competition in Africa. ‘In European PGA Tour. As players dip in energy levels,
the end, the waves weren't big enough and the event they are encouraged to drink Red Bull for the final five
was cancelled, but Red Bull picked up plenty of holes.
sympathetic media exposure in local sports journalists However, Giles Morgan, managing director of Hill &
and specialist international media,’ says Sessions. Also Knowlton's sports marketing and sponsorship division,
this year, Red Bull held the first bobsled race, which believes Red Bull is approaching these new markets in
took place at Mount Hermon, Israel. a way that won't threaten its heartland youth positioning:
Red Bull is particularly fond of aligning itself with new ‘Rather than just slapping a label on an event, they've
and gravity-defying sports. Two years ago it invented the gone down the route of describing the function and
‘Air Race’, a World Series competition described as a benefit of what's in the can. They want to show that it's
cross between aerobatic flying, auto racing and skiing not just beneficial for 17 to 25-year-olds or clubbers.
slalom. Pilots execute a series of mandatory high-speed Grannies can drink it. And why wouldn't they?’
manoeuvres, withstanding G-forces up to 10 times their Red Bull's move into Formula 1 motor racing is as far
body weight. from logo slapping as is possible. By buying the old
The brand is also keen to back promising athletes, Jaguar team at the end of 2004, the brand is really
rather than the big names. It will often ask sports putting its neck on the line; after all, it wouldn't look
champions who they believe to be the next generation of good if a product that claims to enhance performance
winners, the idea being that Red Bull will help them trailed at the end of the grid, would it?
reach their potential. In total, Red Bull sponsors around Hales believes it's too soon to judge how successful
300 athletes. this sponsorship will be. ‘The transition into the new

10. 52 / 53
©Staudinger & Franke
MASTERS OF ORIGAMI / AUSTRIA 2005 /
CHALLENGE / FOUNDER DIETRICH MATESCHITZ
KNEW THERE WAS POTENTIAL IN THE ENERGY-
team has been such a big job. Only next year will we GIVING TONIC HE FIRST SPOTTED IN THAILAND
really see a Red-Bull-ified team. Then we'll see some BEING GUZZLED BY TIRED TRUCK DRIVERS. HIS
really creative uses of the team’, he says. BIG CHALLENGE WAS TO PERSUADE THE REST
Already Red Bull has put its own spin on this traditional OF THE WORLD TO CONSUME A SOFT DRINK FOR
marketing arena, by launching its own magazine to ITS FUNCTION, RATHER THAN ITS TASTE. NO ONE
accompany race days, called Bulletin. It contains all the HAD ENCOUNTERED ANYTHING LIKE IT BEFORE.
trackside gossip, from news about drivers' girlfriends to FOCUS GROUPS THOUGHT IT TASTED HORRIBLE.
Bernie Ecclestone's latest bugbear. RUMOURS EMERGED THAT THE DRINK CON-
In August it threw a Star Wars themed event to TAINED LIFE-THREATENING CHEMICALS, AND
celebrate the formation of the new team during the PEOPLE THOUGHT IT WAS EXPENSIVE.
Monaco Grand Prix weekend and promote the release PROTRACTED DEVELOPMENT COSTS ATE INTO
of Episode III: Revenge of the Sith. Director George RED BULL'S LAUNCH MARKETING BUDGET.
Lucas schmoozed with the Stormtroopers and the
Formula 1 glitterati. SOLUTION / BY TARGETING OPINION FORMERS
WITH GRASSROOTS MARKETING INITIATIVES, RED
Although the Formula 1 deal gives Red Bull a bold
BULL CREATED AN IMAGE AROUND THE BRAND
global positioning, some observers have questioned the
THAT MADE DRINKING IT SYMBOLISE FREEDOM,
move and hinted that it is Mateschitz's personal affinity
AND LIVING LIFE TO THE MAX. IT HAS DONE THIS
to the sport that led to the decision to invest, rather than
BY BEFRIENDING PARTYING STUDENTS AND
sound marketing sense. Similar aspersions have been
EXTREME SPORTS ATHLETES THROUGH ITS MANY
cast in relation to Red Bull's aviation interests, such as
QUIRKY EVENTS AND SPONSORSHIPS. THESE
Hangar-7 (a huge glass hanger at Salzburg airport
PROPERTIES ARE HIGHLY PR-FRIENDLY,
which houses a collection of old aircrafts, the Flying
ATTRACTING SIGNIFICANT MEDIA EXPOSURE.
Bulls) and its restaurant Ikarus, which showcases
WHEREVER PEOPLE ARE IN NEED OF
acclaimed chefs every month.
STIMULATION FOR THE BODY AND MIND, RED
But as Giles Morgan says, in today's world obsessed BULL IS THERE. THE STRATEGY CONTINUES
with return on investment and research panels TODAY WITH A GROWING NUMBER OF OPINION
‘marketers can sometimes disappear up their own FORMERS DRINKING RED BULL, SUCH AS
marketing strategies’. CRICKETERS AND GOLFERS, AND TELLING THE
‘Marketers can be very pompous about CEOs creating REST OF THE WORLD ABOUT IT. RED BULL'S
associations on a whim, or putting money into their WEBSITE SERVES AS A PORTAL INTO THE
favourite pastimes. But why the hell not? In Red Bull's DIVERSE ARRAY OF ACTIVITIES ENDORSED BY
case, that's very close to the idea of living your life how THE BRAND.
you want to’, he adds.
Many marketers also lose confidence in their ideas if RESULTS / IN ALL NATIONAL MARKETS IN WHICH
they don't immediately produce a payback. This is RED BULL IS PRESENT, IT HOLDS AT LEAST A
something that Mateschitz has never done. He 70% SHARE. NO OTHER RIVAL HAS GOT CLOSE,
relentlessly persevered, even when the outlook was DESPITE THE CONSTANT ONSLAUGHT OF
bleak. LAUNCHES IN THE ENERGY DRINK SECTOR. IT
HAS MANAGED TO DO THIS WITHOUT THE
As Beers points out, many successful brand case
NEED TO DISCOUNT ITS PRODUCT OR REVAMP
studies read like fairytales that follow a logical
ITS IMAGE.
progression to an inevitable, happy ending. ‘But just
IN 2004 RED BULL SOLD 1.935 BILLION CANS.
because a brand gets to be successful doesn't mean
COMPANY SALES ROSE BY 32.3% FROM 1.261
that it's logical. Often articles have a selective
BILLION EUROS TO 1.668 BILLION EUROS. SALES
perception of events. You read them and think “hey,
ARE UP 50% IN THE USA, 43% IN THE MIDDLE
anyone can do it”. We should never forget that
EAST, 40% IN AUSTRALIA AND 30% IN EASTERN
Mateschitz had very hard times.’
EUROPE. FOR MANY, RED BULL'S SLIMLINE CAN
The founder's passion and commitment runs through CHARACTERISES ENERGY DRINKS AND HAS
the company DNA. Though this human touch will not BECOME AS ICONIC AS THE COCA-COLA
always be predictable, logical or rational, there's no BOTTLE. IN FACT, ACCORDING TO BEVERAGE
doubt that when the brand grabs the bull by the horns, DIGEST, RED BULL NOW OUTSELLS COKE AND
it's a force to be reckoned with. PEPSI IN AMERICAN CONVENIENCE STORES.

11. case study / red bull /
ANALYST’S INSIGHT / By John Band /
Consumer Markets Analyst at Datamonitor
If you're planning to launch a new product into the over-
crowded soft drinks market, you've got two options.
Either start with a small-scale launch, with a possible
roll-out to other regions if everything goes well (maybe if
this is successful, you'll eventually roll the brand out
nationwide or internationally). Or go for a huge, all-guns-
blazing global launch, supported by vast amounts of
above- and below-the-line marketing.
The first approach is popular among low-cash start-ups,
the second among drinks giants - Innocent smoothies
and lemon-and-lime Diet Coke are good examples. But
what about a huge global launch over a short time peri-
od without significant input or support from any of the
established multinational drinks companies? What
about doing this initially with no above-the-line market-
ing support at all?
Red Bull is not an example that drinks marketers ought
to follow slavishly: Dietrich Mateschitz's roll-out plan was
so bold that, but for the fact he owned the company, no
CEO would ever have greenlighted it. The success of
this strategy owes a great deal to being in the right place
at the right time, as clubbers tired of beer and alcopops
while extreme sports took off worldwide.
Nonetheless, Red Bull's launch was clear evidence that
viral and word-of-mouth marketing is now the most
important advertising medium for new product launches,
utterly eclipsing the traditional 30-second TV spot.
Consumers are so jaded and immune to conventional ad
claims that if you want them to trust a new brand, you
need to go for their friends and their idols. Above-the-
line media still have a role, but this role is to maintain
interest in existing brands and to support below-the-line
campaigns.
www.datamonitor.com
AD SPEND EURO BY ADVERTISING + COUNTRY
APRIL 2005 - JUNE 2005
NETHERLANDS
SWITZERLAND
PAN-EUROPE
DENMARK
GERMANY
BELGIUM
SWEDEN
FRANCE
SPEND
SPAIN
ITALY
MILLIONS
UK
3,000
2,700
2,400
2,100
1,800
1,500
1,200
0,900
0,600
0,300
0,000
TELEVISION
UK D F E
NEWSPAPER
I B NL S DK
MAGAZINE
CHE PAN
EUROPE
Source: www.xtremedigest.com

12. 54 / 55
RED BULL / BRAND MAP/
HERITAGE / Most of the world's iconic
©Ian Hylands
brands are rooted in a good story. Red
Bull's humble origins as an obscure ori-
ental stimulant sparked a rags-to-riches
tale rooted in the power of effective mar-
keting. The myths surrounding the GRASSROOTS MARKETING / Wh
drink's strange-sounding chemicals - an Red Bull launched in 1987, the marketi
aphrodisiac? The equivalent of 14 budget had largely been eaten up by t
espressos? Made of bulls' testicles? add new product's development cos
up to something close to a magical Reluctant to run the company on de
potion. founder Dietrich Mateschitz a
advertising partner Johannes Kastn
opted for a grassroots strategy, whi
has become the brand's trademark. R
©ulrichgrill.com
Bull is a rare drink, sold on physi
benefit rather than taste. Hence t
inaugural army of street sampler
targeting the tired outside gym
university campuses and offices.
CREDIBILITY / Copycat rivals have
crashed and burned in Red Bull's wake.
It has retained its stranglehold on the
energy drinks category because of a
clear and consistent positioning, free of
the usual retail gimmicks and packaging
redesigns: the product genuinely does
deliver on its claim to 'vitalise body and
mind'. EVENTS / BUZZ / Red Bull sees event
marketing as an antidote to heavily
branded mainstream advertising. This
chimes with the brand's 'making friends,
not buying people' positioning. Activities
range from secret parties that keep a
subversive brand on the right side of
©DanielGrund.com
cool to PR-friendly Air Races and the
famous Flugtag, watched by up to 50,000
spectators in one go. Red Bull's appeal
has grown by targeting opinion formers,
©Jürgen Skarwan
who drive sales through word of mouth.
PONSORSHIP / CULTURE / Red Bull's SPONSORSHIP / SPORTS / Red Bul
usic Academy helps young DJs, synonymous with speed sports a
ngers, songwriters and producers gravity-defying stunts. The bra
arn from renowned musicians. Its sponsors 300 athletes, many of wh
aurus World Stunt Awards honour are up-and-coming rather than big na
ollywood stuntmen. The brand also stars - the idea being that Red Bull
uns its own 'web radio' - a library of help them reach their potential.
ew music, accompanied by a photo Extreme sports suit the brand beca
rchive of Red Bull events. Its ties to they accentuate the product benef
©DanielGrund.com
viation are symbolised by Hangar-7 at when athletes are pushed to the limits
alzburg airport, which houses a endurance, Red Bull stimulates body a
ollection of old aircraft, and a mind. Red Bull has also infiltra
estaurant, Ikarus, which showcases traditional sports like cricket and g
cclaimed chefs. and now runs its own Formula 1 team