A look at a key feature of Red Bull's business

Some observers say that Red Bull's branding is revolutionary; calling it an 'anti-brand' strategy.The company faced additional problems in the UK where there was already an established drink that was specifically taken as a post-illness beverage. Generations of young Britons had drunk Lucozade as they recovered from colds or flu, so Red Bull had to promote its brand differently. The firm avoided usual methods of marketing, relying more on what is called 'buzz marketing' or word-of-mouth. A brand image was created and cultivated which associated the drink with youth culture and extreme and adventure-related sports, such as motor sports, mountain biking, snowboarding and dance music. Red Bull's target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus spreading its 'left-field' appeal. Image: Red Bull associates its brand with youth culture and extreme and adventure-related sports - one example of this is its Driver Search programme. The aim of the competition is 'to find, test and support budding young American racing talent'. Copyright: Sutton Images, reproduced by kind permission of Red Bull Red Bull then worked to ensure that their brand was visible on the street:

Using pick-up trucks as mobile displays, painted blue and silver with a giant can of the drink mounted on top of the vehicle Designed to be eye-catching, these devices were aimed at promoting the red bull brand as youthful and slightly 'off-the-wall' Cans of the drink were also given out free to people on the street who had been identified as being in need of energy Red Bull was given to club DJs, empty cans would also be left on tables in hot spots such as trendy bars, clubs and pubs

The company also set about promoting the Red Bull brand directly to Generation Y, the so-called 'millennials': people born after 1981 who were believed to be cynical of traditional marketing strategies. Part of this idea involved recruiting 'student brand managers' who would be used to promote Red Bull on university campuses. These students would be encouraged to throw parties (as if encouragement was needed!) at which cases of Red Bull would be distributed. The brand managers would then report back to the company, giving the firm a low cost form of market research data. The use of this kind of marketing strategy has become known as 'viral' marketing. It is as if a company sees no need for traditional informative or persuasive communications, rather in Red Bull's case it used the youth 'underground' to spread the popularity of the drink. So the firm would rather restrict the drink's supply and not advertise it, expecting that growing numbers of target consumers 'catch the bug' and its reputation spreads. Red Bull was a spectacularly successful example of the strategy working even though as we see later, its branding was aided by state intervention in countries like France and Denmark.

By 2004, the worldwide energy drinks market was worth an estimated 1.6 billion; Red Bull had achieved a clear market leading position, with a 70% market share. The lure of fast-growing profits in this market brought many competitors into the functional foods sector, where health and energy drinks have seen sales double every year since their introduction. Many competitors have tried to employ similar marketing strategies and tactics in order to grab sales from the market leader. Not all have been successful, of course. When a firm tried to launch its own energy drink in 2002, it tried to target 16-24 year olds with a poster campaign featuring barely clothed young people exhibiting wounds to their bodies. As the drink was called 'Shark', the relevance of the injuries seemed clear. However, following complaints, the Advertising Standards Authority (ASA) banned the posters, as the campaign appeared to endorse sexual violence. More on this decision can be found on the ASA Web site. The problem that Red Bull now faces is how to build on its incredible sales growth, as it has become a mature brand within a saturated market. Among the challenges that Red Bull faces, the following are some of the most serious:

The loss of its original consumer base, as the 'millennials' become working adults. How should the firm attract a new group of 16 year old consumers? Health concerns that have emerged in several countries over problems associated with high intake of caffeine. Red Bull was banned in France and Denmark following the publication of these concerns. It is classified as a medicine in Norway and until recently could only be bought in pharmacies in Japan. As the health and energy soft drinks market has reached maturity, Red Bull is concerned that it is unable to target mass consumption in these countries. Being over-reliant on a single brand. Until 2003, the company only produced one version of Red Bull. A sugar-free version was introduced in that year. The mature market for energy drinks has attracted some of the global firms, such as Coca Cola, Pepsi as well as Asda/Wal-Mart, with their own brands seeking to gain a competitive advantage over the market leader

Any how red Bull also had been using traditional advertising techniques such as television, print, radio, billboard, magazine ads.

Were very fortunate, our product does something. Its an energy drink and it works, UK Managing Director, Nigel Trood (pictured) told us, On the back of that weve attempted to build a brand experience that consumers associate as something positive and leaves them with a good memory. Its also seen as an inspirational product, a silver can that people like to be seen drinking with associations of a cool and premium drink.

By attempting to build brand awareness through appropriate events around the world the aim is for consumers to know the product and on then experience it though use. Raising credibility and awareness sits at the core of building the brand across its global markets but still allows for a degree of autonomy in local markets. In the UK that means supporting more mainstream sports athletes that have widespread appeal to consumers, as opposed to backing the free sports stars that have a greater draw in other markets. The other factor in maintaining the cool factor for Red Bull is keeping in tune with consumers and more specifically the 14 to 19-year-old target age group. Every year the brand does market research with a sample of one million consumers. We spend a lot of time talking to consumers and have realised we need to listen to and learn from them if we want to seen as innovative, said Trood. Its also important for us nor to simply just throw money at sponsorship. We want to be seen to be playing an active role at the invents were involved in. Digital marketing plays a key role in reaching the youth market with the website serving as the central entry point to the brand and its activities. Perhaps surprisingly though eCRM is not a channel maximised in building the brand. Trood explained, Its never been a topic on our minds. We use TV and cinema to build brand awareness but rather than use e-mail marketing were more interested in talking to consumers one-to-one. Marketing looks to be stepped up in 2008 with a 15% increased investment in the practice in the UK. Under the strategy think global, act local event activity in the calendar include the London leg of the Red Bull Air Race World Series. The inaugural 2007 event was attended by over 50,000 people and was broadcast as live on Channel 4 TV broadcast. An extensive PR and ATL campaign included the worlds first 3D cinema ad and the largest ever outdoor ad.

Its a truly innovative event - the Formula One of the skies. Its a serious sports event and unbelievable to watch, said Trood. Red Bull had to lead the way with an event such as this. No one else would do it. It importantly allows us to carry a big brand message while providing the audience with a great experience they can relate back to the brand. The second major happening is the Flugtag, returning to the capital after an absence of five years. It will see 40 teams of inventors design, construct and fly their man-powered machines in Londons Hyde Park on June 7, watched by an anticipated audience of 80,000 spectators. The event is to be supported by a multi-platform marketing campaign including a 2 million ad spend, live builds of Flugtag machines in key cities across the country and a dedicated network television programme aimed at a family audience. In addition, a regional marketing force (Red Bull Aviators) will be tasked with encouraging local media to support their teams by uploading daily team blogs and video content onto their websites whilst a one-off Flugtag Gazette will be distributed in key areas around London. 5.3 Brand Image Two red coloured bulls charging towards one another. The small size of the can. These could not be better connotations of strength (Keller 2004). The package says it is a serious product, not to be taken lightly. The Red Bull cut-out in the pull-ring adds class and interest, whilst the cans mixture of blue and silver portrays refreshment. The cans simple tagline Revitalises body and mind effectively explains the contents function in four simple words, whilst remaining non-specific (Keller 2004, p.118; Keller, 2004). With its fingers in every pie, Red Bull combines well thoughtout brand image, playful advertising, media-rich events and sponsorship not only to cultivate their edgy image, but also to ensure every consumer can relate to the product in some way. Mateschitz admits,...we dont bring the product to the people, we bring people to the product ... (Gschwandtner 2004). Red Bull wants consumers to embrace the product and all its ideals, as he points out Red Bull isnt a drink, its a way of life (Kumar, et al. 2004).