Red bull is my favourite brand when it comes to Marketing, though I am not really a fan of its taste. A company with only one brand its bucket has an estimated net worth of $ 25 billion.
In the early days, Red bull used to dump their empty cans at the various spots in the city to create hype in the market. Why did we call Red bull a marketing company? Keep reading to know more.
In 1982, during the business trip to Thailand Dietrich Mateschitz was suffering from jet lag. Jet lag is a temporary sleep disorder causing due to sudden changes in time zones. He tried a local soft drink Krating Daeng that made him feel better within minutes. Surprised Mateschitz decided to dig more and created an empire called RED BULL.
Mateschitz came back to his home country and tried for investors to invest in his dream. However, investors told him that there is no market for such a drink when Pepsi and Coca-Cola rule market.
Disheartened but not ready to lose, he invested half of his property and asked the original founder of Krating Daeng, Chaleo Yoovidhya to invest. Chaleo provided formula and Mateschitz made some variations as per western taste. Until the date, the production of the drink and filling of the cans takes place in Thailand, whereas Red Bull invests its resources only on selling the drink
The production cost of one can of Red Bull is $ 0.09 while the average wholesale price is $ 1.87 per can. That means it earns 20 times the cost of production.
In 2019, it earned more than 4000% of profit margin.
Red Bull created the whole world of marketing around its one and only product. Let us see some major marketing strategies used by Red Bull.
A] Promoting music fests and events-
Their usual target has been a young male in the age group 18 to 40.
They sponsor cyclists, chess players, parachuting, skateboarding, break dancing, mountain biking, hockey, formula racing, and rubric cube competitions. The players sponsored by the Red Bull are always the top performers. Therefore, in other words, Red Bull creates influencers.
B] Space jump of 2012-
IN 2012, a man jumped from space with Red Bull logos everywhere.
The project cost was huge, approximately $ 50 million; but it got global attention. Almost every leading news channel in the world covered this story. The worldwide marketing of the project was approximately $ 60 billion. Therefore, definitely, it was worth it.
C] Collaborations and Hiring students for marketing-
They appointed popular students in the universities as their brand managers. The only task their brand managers were supposed to perform was throwing parties at different locations. Red Bull would sponsor those parties.
It was normal to see Volkswagen beetles with huge Red Bull cans strapped on their backs; showing up at universities, office buildings, fests, and gyms.
D] Distributing free samples-
Beautiful girls with a backpack full of Red Bull cans have been a common thing to see in the house parties (Europe). People love free things. These girls would give free samples with their beautiful smiles.
E] Cartoon Marketing-
We cannot miss their hand-drawn cartoons, animal characters that can fly after drinking Red Bull.
After all, it gives wing to everyone.
F] Outlaw brand-
Red Bull was an Austrian brand and banned in Germany. Many young Germans would cross the border to Austria to buy and experience this banned drink. This way, the product became famous in Europe as an outlaw brand. This way, Red Bull stayed in news and could gain huge mouth publicity.
By the end of 2019, they sold more than 7.5 billion cans in a year.
Therefore, no matter whether Red Bull gives you wing or not; the advertisement and brand marketing definitely gives them wings.