1. 1740 Stewart Street
Santa Monica, CA 90404
Phone: (310) 393-4647
Web: www.redbull.com/us/
Red Bull North America, Inc.
Katie Caldwell, Kip Darmody, Casey Edwards, Nick Horning, Joseph
Panzarella, Zachary Scheck, Sarah White
RED BULL
INVASION SERIES
2. Table of Contents
About Us………………………………………………………………………………………………………………………………………………………………………………..3
Invasion Dates and Locations …………………………………………………………………………………………………………………………………………………..4
Purpose, Vision, and Strategy Statements…………………………………………………………………………………………………………………………………..5
Niche Market Breakdown…………………………………………………………………………………………………………………………………………………………6
Strategy Wheel………………………………………………………………………………………………………………………………………………………………………7-9
Value Proposition…………………………………………………………………………………………………………………………………………………………………..10
Activity System Map. ………………………………………………………………………………………………………………………………………………………...11-12
Activity Analysis…………………………………………………………………………………………………………………………………………………………………12-13
Strategy Canvas………………………………………………………………………………………………………………………………………………………………………14
Tests of Resource Value………………………………………………………………………………………………………………………………………………………….15
7 Questions (Zero to One) ………………………………………………………………………………………………………………………………………………….16-17
Five Forces Industry Analysis……………………………………………………………………………………………………………………………………………...17-18
Value Net………………………………………………………………………………………………………………………………………………………………………………19
PARTS Analysis……………………………………………………………………………………………………………………………………………………………….…….20
Innovation Game Plan……………………………………………………………………………………………………………………………………………………….20-22
Summary of Business Strategy………………………………………………………………………………………………………………………………………….………23
Biases Checklist…………………………………………………………………………………………………………………………………………………………………24-25
Appendix…………………………………………………………………………………………………………………………………………………………………….………..26
3. 3
The Red Bull Invasion Series (RBIS) is a nationwide paintball series that adds adventure and a modern gaming twist to the sport of
paintball. From snowy mountains in Colorado to aircraft carriers on the East Coast, regional tournaments offer extreme climates and
local landscapes for high-level competition, while high-quality live streaming on Redbull.tv allows viewers to immerse themselves in
these settings.
The Red Bull Invasion Series consists of twelve weekend-long invasions, or tournaments, played in six geographic regions — the
Northwest, West, Southwest, Southeast, Northeast, and Midwest. Tournaments rotate through each region twice on a bimonthly basis,
beginning in April. Friday and Saturday comprise preliminary rounds played on standard paintball courses with a regional theme. The
Final Four advance to the main event on Sunday, where teams compete on the geographically inspired courses and are streamed on
Redbull.tv to millions of viewers.
The winners of each tournament advance to the Red Bull Last Stand, the championship of the RBIS, held in November. An All-Star
Game is played a month before in October with a Hunger Games style format — each region has two MVPs from the regular season’s
tournaments that play together as a pair. The last pair standing earns their teams a first-round bye in the Last Stand — a 12-team single-
elimination tournament that crowns the best paintball team in America.
About Us
Season Format
Gameplay
Gameplay is centered on the tactical concept of invasion — breaching your enemy’s territory while protecting your own. The RBIS
leverages this through its three game modes, played by 7-man teams (can have up to 10 players):
1. Elimination - A traditional paintball game whereby players attempt to eliminate the other team before time expires.
2. Capture the Flag - The most classic and iconic game of paintball. Both teams must attempt to invade the other’s territory,
retrieve their opponent’s flag, and bring it back to their base within the allotted time.
3. Invasion - Unique to the Red Bull Invasion Series, only one team has a flag and must stay on their half of the course to
protect it while their opponent attempts to invade their territory to capture it and return it to midfield.
• Each game type has a time limit of 20 minutes, with five minute breaks in between.
For preliminary rounds on Friday and Saturday, teams play a Best-of-Three series, with Invasion as the elimination game, if needed. For
semi-final and championship matches on Sundays, teams play a Best-of-Five series. Games four and five, if needed, will be voted on by
fans through social media channels.
Registration/Tickets
Teams can register online through APPA1
, the world’s #1 paintball event registration system. Registration costs $2,500 per team for
each tournament (each tournament is capped at 32 teams). While general admission tickets to the tournaments are free, customers can
purchase VIP hospitality upgrades for watch parties and gaming lounges.
4. Date of Event City, State Region
April 8-10 New York City, NY Northeast
April 22-24 Madison, WI Midwest
May 6-8 Seattle, WA Northwest
May 20-22 Las Vegas, NV West
June 3-5 Tucson, AZ Southwest
June 17-19 Baton Rouge, LA Southeast
July 1-3 Annapolis, MD Northeast
July 22-24 Chicago, IL Midwest
August 5-7 Portland, OR Northwest
August 19-21 Denver, CO West
September 2-4 Austin, TX Southwest
September 16-18 Miami, FL Southeast
October 14-16 TBD RBIS All-Star Game
November 11-13 Santa Monica, California Red Bull Last Stand
= Invasion
= Red Bull Office
Invasion Dates and Locations
5. 5
To provide entertainment through thrilling, interactive experiences by changing the way paintball is played and consumed.
To elevate paintball to the forefront of contemporary sports.
Purpose Statement
Vision Statement
Strategy Statement
By creating a unique paintball experience through geographically inspired courses — captured through first-person live streaming and
an expo atmosphere — the series will bridge adventure seekers and eSports with paintball in North America to create new demand for
Red Bull to monetize within the next decade.
• Geographically inspired courses = Courses will be designed as a natural extension of the local landscape to provide
participants with an adventurous terrain to navigate as they compete.
• First-person live streaming = Just like eSports, viewers will be allowed to toggle through the perspectives of competitors to
experience the terrain for themselves through the use of GoPro technology.
• Expo atmosphere = The weekend-long tournaments will act as expos with vendors/exhibitors from targeted niche markets,
gaming lounges, and viewing parties and will trigger small fires in each town.
• Adventure seekers2
= From snowboarders to rock climbers to mountain bikers, these extreme/endurance athletes pride
themselves on their ability to conquer the terrain they engage on a regular basis.
• eSports3
= These online gamers enjoy competition as much as any other demographic and immerse themselves within virtual
reality, like adventure seekers do with their landscape, especially through live streaming as fans.
Small Fires
Similar to other Red Bull owned or sponsored events like the Red Bull Signature Series, Red Bull Flugtag, Red Bull Crashed Ice, and
various music festivals; the Red Bull Invasion Series will employ a small fires approach to generate excitement and publicity for
upcoming tournaments. With the help of brand ambassadors on nearby college campuses and grassroots marketing through the Wings
Team and brand integration at local events and hotspots, conveniently located Red Bull offices will build hype and anticipation in the
community surrounding the event. By starting at a local, regionalized level with these small fires, the Red Bull Invasion Series will build
a loyal following that will allow the sport to expand deliberately into nearby, geographic markets. This core progression from regional,
small fires to a nationwide phenomenon is critical to the long-term success of the Red Bull Invasion Series.
6. Niche Market Breakdown
Both adventure seekers and online gamers are young and interactive — the first with physical terrain, and the second with digital
landscapes. By creating a unique, innovative product that allows for interaction on these two separate levels — how it’s played and
consumed — the Red Bull Invasion Series can appeal to both niche markets. Furthermore, we have carefully chosen to engage
these two particular markets for several reasons:
• Both demographics are growing exponentially alongside certain trends that accelerate its growth.
o The rapid emergence of live streaming has allowed eSports viewership numbers to skyrocket recently, thus
leading to higher exposure and participation rates.
§ 71 million people watch competitive gaming worldwide4
o “In a recently released data summary, provided by Superdata Research, the total market for eSports reached a
new record of $612 million in 2015.”5
o The increase in marketing, exposure, and participation geared toward outdoor and adventure activities has
grown with the introduction of Go Pro technology and the steady development of niche extreme sports like
obstacle course races, CrossFit, and the X Games.
• “Although games like
League of Legends and DotA 2 are
often what come to mind when
thinking about eSports, the US
scene is still heavily dominated by
first-person shooters. Call of Duty
still dominates the top viewer spot,
at 28 percent, while Halo and
Battlefield are 3rd and 5th place
with 8 percent and 7 percent
respectively.”6
• “eSports fans live in
households with strong spending
power, as the household income
for this group is 10% higher than
that of U.S. gamers overall” at
$64.9k, which proves valuable for
sponsors and advertisers.7
7. 7
Strategy Wheel
Create and capture
new value by
leveraging a unique
experience and
online content.
Red Bull
Media House
(“Content
Marketing”)
Sales and
Sponsorship
Event
Operations
Consumer
Experience
Course
Design
Community
and Public
Relations
Consumer
Marketing
and Social
Media
Innovation
and
Technology
Strategy Wheel Breakdown
Red Bull Media House = The in-house, multi-platform media and publishing company will leverage “content marketing”
surrounding the Red Bull Invasion Series that has a direct consumer impact on our targeted demographics.
• Content Marketing can be described as entertainment and media production that creates storytelling material, highlighting
the unique, adrenaline-pumping experience of Red Bull’s new version of paintball, as well as the bold nature of the brand
itself.
• Part of this entertainment production is Red Bull TV, the media platform that will stream the Red Bull Invasion Series and
create visual content of the extreme terrain and those athletes that engage the course during high-level competition.
• The Red Bull Invasion Series will also be leveraged across all Media House platforms, ranging from digital media to The Red
Bulletin to the Red Bull Content Pool, taking full advantage of Red Bull’s content strategy that emphasizes breathtaking
experiences and adventurous landscapes.
8. Strategy Wheel Breakdown (Continued)
Sales and Sponsorship:
• Red Bull will sell vendor/exhibitor spaces at each regional expo and sponsorship deals to companies that align with paintball,
adventure sports, and our targeted demographics, such as paintball equipment manufacturers, extreme apparel companies, gaming
companies, etc.
• Similar to the X Games, partners will activate in a way that enhances the experience of consumers at the expos.
Event Operations:
• Will work on the set-up and breakdown of the expos, vendors, and courses and includes security.
• Also includes game operations that allow matches to run smoothly on precise schedules, as well as travel operations that ensure
the expos travel efficiently from region to region.
Consumer Experience:
• The fan experience at expos will be enhanced through sponsor activations, watch parties, gaming tents that bring an eSports
presence, as well as local food vendors.
• Includes guest services and volunteer operations that improve consumers’ overall interaction with the events.
• The Red Bull Invasion Series will start “small fires” in each city that it travels to — with the help of original programming, brand
ambassadors, and grassroots marketing — in an effort to build concentrated, yet intense excitement for the event.
Course Design
• Each region’s courses will be proactively designed as a bold extension of the natural environment and local landscapes.
• Courses will be adjacent to the expos, if the terrain allows it, which will also be meticulously designed to optimize the safety and
accessibility of consumers and to maximize the footprint for partners.
Community and Public Relations:
• Red Bull Invasion Series will engage with the community through partnerships with local charities and military philanthropic
organizations, like Wounded Warriors, as well as brand ambassadors on nearby college campuses and the Wings Team to
stimulate excitement for both the community and event.
• As a part of its PR strategy, Red Bull will position paintball as one of the safest sports in the country and a tactical competition
based on strategy and communication, not violence or hand-to-hand combat.
9. 9
Consumer Marketing and Social Media:
• Marketing initiatives will be regionally inspired on an event-by-event basis to contribute to the idea of “small fires”, with a
country-wide emphasis on viral marketing.
• Social media will be leveraged extensively as a means of this viral marketing, as well as consumer interaction with the
product and expos.
• Fans will be able to vote for different game modes during Sunday competitions.
Innovation and Technology:
• The Red Bull Invasion Series will invest heavily in streaming technology and bandwidth to ensure that live streams are
smooth and high-definition, as well as Virtual Reality (VR) experiences for fans down the road.
• GoPros attached to players’ helmets, and strategically placed cameras throughout the course will make live streams possible.
o GoPro already has a relationship with Red Bull as an Official Partner of the Signature Series.
o Live streams will include POV feeds from competitors, general feeds of the course and match, and a real-time
scoreboard and map that depicts where players are located.
o Viewers will be able to toggle between POV feeds, watch the action from different perspectives via split-screen, and
hear the teams communicate their strategy.
o Red Bull will also invest in high-tech equipment, such as headsets for communication and night vision goggles for
potential night matches.
Strategy Wheel Breakdown (Continued)
10. 0
1
2
3
4
5
6
Poor (1) to Excellent (5)
Value Components*
Value Proposi9on
PSP Events
Red Bull Invasion Series
Na<onal X-Ball League
*The higher the line at each
component, the greater the value that
component delivers for the business —
making it easy to see where which
company excels and sets itself apart.
Value Proposition Breakdown
There are four value components that give the Red Bull Invasion Series a serious competitive advantage over Paintball Sports
Promotions (PSP) and the National X-Ball League (XBL):
• Content Marketing = With the Red Bull Media House in its back pocket, the Red Bull Invasion Series is able to produce
high-quality and high-quantity content that appeals to a targeted set of niche demographics.
• Live Streaming Capability = While both the PSP and XBL offer live streams of their championship games, it is not on the
same level of a platform as Red Bull TV, which reaches considerably more customers at a much higher quality.
• Course Design = The unique geographically-inspired courses bring an element of unpredictability, openness, and extremity
to a professional sport that is, but shouldn’t be, confined by dull, inflatable obstacles and standardized courses.
• eSports Presence = Unlike both the PSP and XBL that focus entirely on one demographic — paintball competitors — the
Red Bull Invasion Series also targets an additional niche market of online gamers through its live streaming capability that
mirrors eSports streams, as well as gaming lounges at the regional tournaments.
11. 11
Activity-System Map
Activity-System Map Break Down
• Geographic Location: Host cities of the RBIS were strategically picked because of their proximity to Red Bull offices and
the representative terrain of the specific region that will provide athletes with a challenging, yet magnificent landscape to
compete on. The extension of the environment for the paintball course will provide a unique experience unlike anything
present paintball leagues offer.
• Expo Style Atmosphere: In order to enhance the consumer experience of RBIS, the production style of the event is
designed with focus on the extreme sports audiences’ interest in an interactive environment, similar to the X Games.
Extreme sports players and viewers are less influenced by mass media, which is why RBIS will focuses heavily on experiential
marketing. Both established brands and smaller vendors would have access to a consumer market that is highly affluent.
• eSports: The integration of eSports into RBIS tournaments is an integral component of the RBIS. RBIS aims to draw from
the large and ever-growing consumer market of eSports and seeks to capitalize on the demand for an eSports element that is
lacking in current paintball leagues across the United States. RBIS will apply the last mover advantage by featuring eSports
gaming lounges at the RBIS locations and streaming features modeled after an eSports experience.
12. Activity System Map Breakdown (Continued)
• Streamed Matches: RBIS will leverage Red Bull TV to stream matches online to viewers. The service will cost nothing to
users but will require an account with login. The information provided is a critical component that allows RBIS to capture
audience data in order to improve and change content based on user feedback.
• Gameplay Styles: In order to differentiate itself from past and present paintball leagues, the Red Bull Invasion Series has
developed an evolutionary style of play fittingly named, “Invasion”. This unique style of play will be trademarked specifically
for the Red Bull Invasion Series.
o A Hunger Games style All-Star game will also be featured that hasn’t been played on a professional scale to date,
despite significant popularity on a recreational level. Our All-Star game, like MLB’s, has major significance, as it
determines first round byes for the Red Bull Last Stand.
Activity Analysis
13. 13
Activity Analysis (Continued)
To ensure that the Red Bull Invasion Series has a clear
competitive advantage in the market, we feel taking a small
fire approach will be the first stepping-stone to catapult the
brand in front of the competition. The strategic locations of
the tournaments, along with the unique playing
environments provide an experience that is unmatched.
Offering this and premium online streaming to niche
markets of eSports enthusiasts and adventure seekers is a
strategy that is not currently offered by other leagues and
events. With Red Bull’s power and unmatched branding
there is no doubt the RBIS will have a clear advantage in the
paintball industry.
RBIS NXL
PSP
Events
Strong
Competition
3 4 4
Unique
Playing
Environments
5 2 2
Interactive
Expo
Experience
4 2 2
High Quality
Streaming
5 3 2
Comparatively, it is apparent that the newly created
Red Bull Invasion series surpasses its market
competition in all four categories. The only lacking
category is RBIS’s ability to provide competitive
players but this will increase as the exposure increases,
allowing RBIS to capture premier talent among paint
ball teams around the country. The playing field will
be a strong draw for both players and audiences that
will distinguish RBIS from past leagues and
tournaments. The interactive expo experience along
with high quality streaming services sets the RBIS
apart from its competition and is a critical element
that will influence the future success of the series.
Competitive Advantage
How does the RBIS measure against
competitors?
14. Strategy Canvas (Blue Ocean)
By decreasing the number of competition levels and thus courses, international events, inflatable barriers, and bleachers for live
attendance, the Red Bull Invasion Series will eliminate costs that are unnecessary to its differentiation strategy. But because the
aspects that create a blue ocean for Red Bull are so expensive, it is imperative that we develop multiple revenue streams to offset these
necessary costs. These revenue streams will include the following:
• Sponsorships (includes in-kind deal with GoPro to supply cameras)
• Vendor/exhibitor sales
• Registration fees from each event
• Merchandise/concession sales
• Advertising revenues from live streams
• VIP hospitality packages
Simultaneous Pursuit of Differentiation and Low Cost
15. 15
Tests of Resource Value
Investment and Upgrading of Resources
Investing in Red Bull’s strong brand equity and the multimedia infrastructure of its Media House allows the Red Bull Invasion
Series to quickly become a credible brand and product itself, as well as to avoid depreciation. As Red Bull upgrades its multimedia
offerings, namely a linear TV channel and virtual reality experiences8
, the RBIS will be able to take advantage and leverage these
resources for our own benefit.
16. The 7 Questions Every Business Must Answer
The Engineering Question: The Red Bull Invasion Series is a paintball product that can be measured as ten times better than
standard paintball leagues and events based off of geographically inspired course designs and live-streaming technology. Location-
based courses are an originally innovative aspect of paintball that has yet to be attempted and live-streaming technology, while having
made a positive impact in other sports and events, has yet to be applied to the game of paintball. Additionally, with Red Bull
sponsoring the series, a level of exposure and element of credibility not yet established in the sport of paintball will be produced.
The Timing Question: In the past half-decade there have been advancements in technology and general interest in the various
markets we are infiltrating. Major League Baseball Advanced Media, Twitch, and even the evolution of Periscope are all examples of
streaming technologies that have been only recently established and already have the capability to support a large audience.
Comparable outdoor adventure events such as the Spartan Race, Tough Mudder, and X Games have all garnered increased interest
through the last few years. For example, from 2010-2015 obstacle race events have increased their participation revenue alone from
$15.9 million to a projected $434.1 million9
. Lastly, a slight increase of participation in the sport of paintball has been measured
during 2013; this after the sport stabilized itself with steady participation rates during the past four years after the numbers
plummeted during the economic recession10
.
The Monopoly Question: Our monopoly in the paintball industry and to a lesser degree, the outdoor adventure market, will be
achieved by a stronger brand, differentiated viewing options, and our unique tournament set-up. By launching our paintball league
off of Red Bull’s brand we will immediately have an edge on our competitors. We will acquire attention from the market with the
brand, but we will formulate interest with our virtual viewing options. By placing GoPros on every participant, viewers will get to
watch the game up close and personal from their homes. Moreover, our utilization of different North American terrains for our
tournament locations will further distance us from our competition by engaging every customer across the country.
The People Question: Red Bull is a perfect fit to present the Red Bull Invasion Series and is fully capable with its existing
infrastructure. Red Bull’s Media House possesses the technology to stream the events and a current consumer-base to view them.
Logistically, Red Bull has offices across the country and near most of our selected locations to provide the local support and
knowledge necessary to host the events. Company-wide, Red Bull USA has proved to be a rather progressive and independent branch
17. 17
The 7 Questions Every Business Must Answer (Continued)
The Distribution Question: Technologically, our product will be easily distributed for any and all to consume, especially considering
Red Bull’s existing infrastructure. The actual competition and the accompanying festivities will be able to be attended by anyone
interested, but we estimate that locals will be the initial consumers. Following Red Bull’s “small fires” philosophy, we have aimed to
host our product in strategic areas such as college towns where we can establish the Red Bull Invasion Series and then leverage those
areas for growth in the future. Red Bull has brand ambassadors located at many colleges throughout the nation and we plan to use
them to introduce the event to the campus.
The Durability Question: As far as the live-streaming aspect of our product is concerned, we believe that it has the potential to be
very durable. Due to the last-mover advantage of taking the established sport of paintball and placing it into the established
environment of live-streaming, a product that can generate profits for years to come can be created. The live, festival-like events we
will be hosting will be less durable, as they are easily copied and can more easily lose appeal through time. But, through thoughtful
site selections, continually evolving attractions, and an adapted league structure to that comparable to most professional sports
leagues in America, our hope is that the live events can be more durable.
The Secret Question: Unbeknown to the average consumer, the reason the Red Bull Invasion Series will succeed is because of the
backing of Red Bull. The credibility and exposure that Red Bull provides is crucial to the sport of paintball, as other leagues have had
trouble obtaining a foothold on a market to support them. Red Bull provides this as well as the proprietary technological capabilities
to pull it off that other companies are legally incapable of obtaining. Lastly, the bridging of the niche markets of adventure seekers
and online gamers gives us a specific reason for success that no one else has tried.
Five Forces Industry Analysis
Defining the Relevant Industry:
• Scope of Products/Services = paintball, outdoor adventure sports, live streaming, eSports
• Geographic Scope = United States (although the digital scope of live streaming is international in nature)
18. Five Forces Breakdown
Power of buyer: (Low) Although there are other options when it comes to playing paintball semi-professionally or
professionally, there is no league that provides the national competition, technology incorporation, or large branding that we
are implementing. With Red Bull’s branding we will immediately be set apart from smaller paintball tournaments, and our use
of live online streaming and national tournaments will further create a matrix that paintball consumers cannot ignore.
Power of supplier: (Low) To make our live streaming events and expositions at the tournaments the best possible, we will need
to rely on multiple suppliers. The opportunities of sponsorships and attention from our viewers though will increase our
bargaining power. GoPros will be placed on individual players to capture every event of the tournament, but there are many
suppliers of small durable cameras giving us the option to choose from the lowest price. Furthermore, the companies attending
our expos at the tournaments will desire to attend our events to reach the exposure of the fan base we are attracting.
Threat of entrants: (Medium) The costs to start up individual and regional tournaments are not extremely high. As seen
already, there are many smaller leagues attempting to find a niche in the paintball market. The issue with an entrance into this
market is the cost of branding and finding a large enough community to scale the league. By starting our league off with the
Red Bull brand we will be a step ahead of our competitors, but the threat is still prevalent.
Threat of substitutes: (Low) Paintball is a unique form of safe warfare that cannot be replaced with many other activities.
Airsoft wars and paintball marksmanship competitions are a few of the substitutes that could possibly pull consumers away
from our tournaments, but not at a scale that is dangerous to our survival or growth. Moreover, there are collegiate
competitions, which are different from the tournament we are creating, but our brand and unique product will move into their
market more than they will move into ours.
Current rivals: (Medium) There are a few large-scale paintball leagues in the U.S. today such as the National X-Ball League and
Paintball Sports Promotions (PSP). These two leagues are established in the paintball community providing some of the best
tournaments possible. Both leagues provide the same product with no differentiation between the two though leaving a lot of
room for a unique competitor that can capture the market. To offset the current rivals in this market we must provide a
different atmosphere and competition aspect to paintball that is not yet provided by the leagues now.
Long-Term Profitability Strategy
Based on the five forces described above, we have decided to position ourselves where the forces are weakest to claim market
share and become the last mover in this industry. It has become clear that the threat of new entrants, substitutes, and current
rivals is not strong enough to hold claim to what market share there is, so by moving into this area we can be most successful.
To date there is not much differentiation among the current paintball leagues, but a strong desire for the product is there. By
creating a unique national league, with a strong Red Bull brand, we can control the market share while increasing the barriers
of entry and decreasing the already low possibility of substitutes. We also plan to exploit market trends in the online streaming,
eSports, and adventure sports industries by offering a unique product that appeals to the demographics heavily involved in
these markets.
20. PARTS Analysis Breakdown
Changing the Players (see Value Net) - Unlike traditional paintball, the Red Bull Invasion Series bridges adventure seekers and
online gamers with the sport, adding new players to the paintball industry.
Changing Added Values - Our added value consists of combining the sport of paintball, technological streaming innovations, and
adventure event elements. More specifically, our product raises value through a small fires approach that attempts to build local
excitement with weekend-long expos, a wide geographic range, unique playing environments, premium online streaming, and Red
Bull’s strong brand and ability to produce and stream content.
Changing the Rules - Our blue ocean strategy of creating new demand gives us the freedom to make our own rules, as we aim to
make the competition irrelevant. Because of this fact, we have the ability to manipulate the rules more easily to our benefit than
other potential entrants can. Through Red Bull’s small fire approach, we will be able to test the rules for each region to see what
works and what doesn’t before moving on to the next location.
Changing the Tactics - We will be changing the tactics by lifting the fog that is currently over the sport of paintball. By providing the
sport in novel form and at little to no cost for consumers, the sport of paintball can be exposed at an unprecedented level, especially
given Red Bull’s reach and multimedia capabilities.
Changing the Scope - We will be changing the scope by creating linkages to eSports and the adventure niche market through live
streaming capabilities, gaming lounges at the expos, and geographically-inspired courses that allow players to engage in extreme
terrain during competition. We will also be expanding the digital scope of paintball by providing a high-quality platform, Redbull.tv,
to stream games across the world.
Innovation Game Plan
Step One - Pick Your Playing Field: Our playing field will be the combination of the eSports, outdoor adventure, and paintball
markets. By combining the three markets, each specific market will obtain an element that is not available in its current state. eSports
consumers will be able to view real-life, first-person shooting competitions in the form of paintball. Outdoor adventurers obtain a
new form of competition to participate in and in the relatively familiar setting of a weekend event. Paintball competitors and
hobbyists are given a novel form of the sport to compete in that is unlike any preceding league or event.
Step Two - Open up the Disruptive Playbook: We plan to do an extreme makeover and make the usually ugly business of paintball
attractive. Paintball leagues are currently not well known, popular, or very unique from one another. In fact, one of the three
nationwide tournament series’, the National Professional Paintball League, was just disbanded in 2014. Our product promises to
wholly disrupt the present state of paintball and prosper by providing an exceptional product cheaply. The Red Bull Invasion Series
can be consumed at no cost by either streaming online or attending the live event and the competitors need to pay a participation fee
that is less than the standard fee is for paintball events. By providing an event series that possesses greater value for consumers and
participants, the Red Bull Invasion Series should flourish.
21. 21
Innovation Game Plan (Continued)
Step Three - Build Your Growth Playbook: Innovations will be examined in the following three industries: eSports, paintball,
and outdoor adventure.
- eSports:
o Streaming Technology – There have been continual positive advancements in streaming technology that have
been made in dozens of platforms. In some regards, Red Bull itself has been the leader in advancements,
most notably with the ability to effectively stream extreme events in challenging conditions.
o Advertising/Sponsoring on Streams – Inevitably, advertising has found its way into streaming services. Major
League Baseball’s Advanced Media has inserted commercials throughout their streamed games, sponsors host
online gaming competitions (for example, the Coke Zero Challenger Series)11
, and advertisements can even
be found within games (Game of Thrones advertised in League of Legends)12
. The public’s acceptance of
advertisements and sponsorships only allows streaming companies to make more money and would be
considered a positive advancement.
o Interactivity – The innovation of interactivity has had both positive and negative impacts. Positively,
companies have used their streaming connection with consumers to receive quicker feedback. For example,
Xbox has recently begun releasing versions of games to be downloaded and played, in order to determine any
final modifications needed to be made. Negatively, the public does not always respond to increased
interactivity as expected. The innovation of 3D-streaming televisions for example quickly failed, as it was
unable to grab a share of the market.
o Fees to View Streams – Fees to view streams, most specifically eSports streams, are only in the developmental
stages of innovation and cannot be determined as positive or negative at this time. Currently, it is free to
stream eSports competitions on Twitch, but viewers can subscribe to channels for five dollars13
. The
voluntary, five dollar subscription is likely setting the stage for further streaming fees.
- Paintball:
o Safety Equipment and Regulations – In a sport where shooting others is the object of the game, safe
equipment and regulations are a must. Each year, sports are safer and more properly regulated than the year
before and paintball is no exception. Today’s equipment is the safest equipment there has ever been.
o Gun Advancements – Similar to the evolution of safety equipment, paintball guns have continually been
made more effectively and safely. Lightweight, semi-automatic paintball guns with slick designs and accurate
sightings are the norm. Furthermore, the paintballs themselves have become more reliable to shoot as well as
safer to get hit by.
o Commercialization of Paintball – Paintball is a relatively new sport with its beginnings only dating back to
1981. Throughout the years, various attempts have been made to commercialize the sport to different levels
of success. There are currently two prominent professional leagues that play in the United States, but a third
was shut down just two years ago. Attempts to commercialize the sport in specific demographics have also
been made with leagues made at the college level, but no substantial ground has been had there either.
22. Innovation Game Plan (Continued)
- Outdoor Adventure:
o GoPros – GoPro has been releasing their cameras since 2005, but only in the last few years have they gained
significant ground. What is special about the GoPro cameras is not the cameras themselves, but the content
they can capture. Their cameras have continually been used in new formats and conditions to capture never
before seen footage. This would be considered a positive innovation, as Red Bull has already taken advantage
of GoPros for footage in competitions such as Red Bull Rampage14
.
o Obstacle Race Courses – Outlined earlier, obstacle-based racing has found a profitable place in the United
States market. In participation fees alone, the industry is earning $418 million more per year than it did in
2010. Moreover, the plateau for this market has yet to be reached, as new events are hosted across different
areas of the country each year, from the Spartan Race to Tough Mudder and Color Run.
o Donations to Charity – The attempt to donate some of the enormous profits in obstacle-based racing to
charity has not been as successful. Any charitable donation is meaningful, but there is a cloud of doubt about
whether or not these events are doing enough. Tough Mudder for example, does not donate any of their
participation fees to charity; they only incentivize participants to raise money to be donated by offering $25
off their individual participation fee. Spartan Race on the other hand, has been investigated by news teams
about whether or not their promises to donate money have been fulfilled15
. The charitable donations these
businesses have promised are a good idea, but the programs need to be implemented more carefully to avoid
such scrutiny.
Step Four - Build Your Innovation Game Plan: When assessing innovations in the eSports industry, the continued
advancements in streaming technology is a trend that can be taken advantage of. With Red Bull specifically possessing its own
Media House, we are the perfect fit for a live-streamed paintball series. With advancements in the safety and equipment of the
paintball industry always being made, there is room for innovation to other aspects of the sport. One element of the game that
could be innovated is course designs. Paintball courses have experienced limited evolution over time, as inflatable obstacles
placed on a grass field for competitions have become the accepted norm. There is definite room for improvement in this
element of the game. As far as the outdoor adventure industry goes, the trend of various outdoor events being developed,
specifically the popularity of the obstacle courses can be taken advantage of. Creating a weekend event with components similar
to those found in other outdoor events can be successful.
Steps Five, Six and Seven - Experiment: After tedious brainstorming and thinking through multiple options for our project,
the Red Bull Invasion Series is what we have settled on. At this point in time, doubling-down is the option to take, as we
believe a winning strategy has been formulated and it is time to move forward.
23. 23
Synthesis and Summary of Business Strategy
The goal of our business strategy is simple: to create new demand for Red Bull to capture within the next decade. As the last mover
in a relatively weak and carefully chosen industry, we are able to notice something that others haven’t yet — the potential bridging of
two similar, exponentially growing niche markets: adventure seekers and online gamers. By starting small fires across the country with
regional expo-style tournaments, emphasizing interactive streaming technology, and creating the last great innovation in the paintball
industry, the Red Bull Invasion Series will appeal to, and dominate, both of these niche markets in the context of paintball. In the
process, we will leverage Red Bull’s brand, its existing holds on adventure sports and eSports, as well as our Red Bull Media House to
deliberately expand into related and broader markets. Small fires will spread rapidly, engulf the relevance of the competition, and
leave Red Bull with monopoly profits to capture for years to come.
Red Bull’s founder, Dietrich Mateschitz, can sum up this business strategy for the Red Bull Invasion Series16
:
24. Avoiding Bias 12 - Question Checklist
Self-interested Bias- Since Red Bull is the owner of the series there is potential that we will make decisions in the interest that
is best for our company and not for our sponsors.
Affect Heuristic - It is important that we love the idea but it is also important we maintain a neutral perspective. We have done
that by thoroughly going through the associated risks that could come with implementing this series and the potential benefits.
Groupthink- Even though we all want to be unanimous in our decision for this series, it was imperative that everyone explored
all the possible dissenting opinions on the team. We discussed a lot of possible actions and the potential downfalls. Meetings
with our supervisor (Dr. Bowers) also helped us consider other options.
Saliency Bias- We decided not to follow any previous paintball league models, even ones that have had some success. But our
decision to make the Red Bull Invasion Series was in part due to some of the success that Red Bull has had with its other series,
such as the Red Bull Signature Series. We believe that if we follow a similar sport model with small fires and infuse it into
paintball, it could be a very successful professional league within a couple of years.
Confirmation Bias - We confirmed our decision by exploring all models of sport play. We concluded that changing the
traditional paintball model into a destination or live streaming entertainment can change the game that we are used to
playing/watching.
Availability Bias - It’s imperative that we not overlook the data that is missing by creating our rules for the tournament on a
rolling basis. By setting a concrete system of how we are going to run a national paintball tournament before we know all of the
factors, we are more likely to make mistakes.
25. 25
Avoiding Bias 12 - Question Checklist (Continued)
Anchoring Bias - To avoid anchoring bias we looked up the niche markets for eSports and adventure sports and how both have
grown exponentially. We made the decision to start small and grow our numbers in participants and viewers in a couple of years.
Halo Effect - Although Red Bull comes with a lot of advantages with regards to the creation of this series, we have to avoid the
assumption that we possess every key to success and continue to innovate and upgrade our product.
Sunk Cost Fallacy - (When considering this new investment we did not follow the traditional model of Red Bull? Overly attached to
past decisions?) -We did not follow the traditionally conservative approach of Red Bull by deciding to do something different and
bring in more fan interaction online.
Overconfidence - We aren’t overconfident with this plan but we believe that it has great potential to be successful. To avoid this bias
we have made ourselves aware of the potential downfalls and do not want to repeat the past mistakes of other paintball leagues.
Disaster Neglect - As a group we have developed a premortem mindset and considered the worst-case scenario. We have looked at
previous failed attempts from previous paintball leagues and made sure we considered all possible downfalls.
Loss Aversion - Adding the live streaming element is changing live entertainment from what we are used to seeing. Also
incorporating more fan activations will help us avoid loss aversion. Lastly we are creating courses that are in different locations and
set up uniquely to the location that will help bring in an exciting element to paintball.
27. 27
RED BULL
INVASION SERIES
1740 Stewart Street
Santa Monica, CA 90404
Phone: (310) 393-4647
Web: www.redbull.com/us/
Red Bull North America, Inc.
The University of Texas at Austin
KIN 357 – Strategic Management of Sports Organizations