Evaluating Red Bull's Marketing Strategies in the Energy Drink Market

Red Bull has achieved over 50% market share with more than $1 billion in worldwide sales by implementing innovative marketing strategies. This review delves into the influence of digital marketing on young adults' interest in energy drinks, the impact of sponsorship in increasing customer base, and the effectiveness of targeted advertising campaigns. By understanding these elements, students can gain insights into how Red Bull effectively reaches its niche market while maintaining high quality.

Running head: MARKETING STRATEGY OF RED BULL
Marketing Strategy of Red Bull
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Contents
Abstract............................................................................................................................................2
1.0 Introduction................................................................................................................................3
2.0 Literature Review......................................................................................................................3
3.0 Methodology..............................................................................................................................4
4.0 Marketing Strategies..................................................................................................................5
4.1 Strategy 1...............................................................................................................................5
4.2 Strategy 2...............................................................................................................................5
4.3 Strategy 3...............................................................................................................................6
5.0 Conclusion.................................................................................................................................6
6.0 Recommendations......................................................................................................................6
References........................................................................................................................................8

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Abstract
This paper has highlighted the marketing strategy of Red Bull. The paper is divided into
three broad sections i.e. the literature review, methodology and the marketing strategies adopted
by the company. The three main strategies are discussed in the paper. The methodology is
analyzed shortly and the literature from peer reviewed journals is discussed in this paper.
Further, certain conclusions are drawn and recommendations are set for the development and
increasing the profitability of the company.

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1.0 Introduction
Red Bull is an energy drink which is sold by an Austrian company and it has the highest
amount of market share in energy drink. The marketing strategy of Red Bull includes multiple
sports team ownership. It has created brand awareness among the customers in a short span of
time. This paper will highlight the marketing strategy of Red Bull. Various literatures will also
be analyzed in the paper related to the marketing strategy. The food safety authority of European
country has approved that Red Bull contains adequate amount of caffeine and it safe for
consumption. Red bull has also positioned itself as a premium drink and the product has
expanded internationally in different markets within a short span of time. The company has also
carried out international market campaign and it has targeted the youth and the sportsmen
(Miles‐Chan et al. 2015).
2.0 Literature Review
According to Buchanan and Yeatman (2017), the digital marketing strategy has enhanced
the interest of the young adults in the consumption of energy drink. This has led to the increase
in the weight gain and the various communicable diseases in youths as well as adults. It has also
been found that the advertisements in the social media sites or other modes of digital
advertisement have attracted the youths and thus the consumption of Red Bull is high among the
children. Although, Red Bull is categorized as a non-alcoholic beverage, but it contains small
proportion of caffeine which increases the mental alertness and thus helps as an energy booster.
Bustin et al. (2015) has opined that the brand name of the drink has attracted the customers and
this has affected the personality traits. The subliminal advertisement has increased the sensitivity
of the people and the various dispositional factors laid potentiating effect. The various situational

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factors also increase the sensitivity of the people to subliminal advertising and the messages are
more effective for the people who are craving for the drink. The personality atrits of the
individuals are closely associated with consumer choice. There is some sensation which is
associated with the preference for this kind of energy drink such as Red Bull. The situational
factors such as thirst increases people’s sensitivity for the subliminally refreshed drink. Freeman
et al. (2014) has predicted that the face book pages are used as a marketing feature to increase
customer’s engagement and interaction. The apps developed by Face book allow the customer to
place the orders directly through face book. The youth and the adolescent are mainly found to be
engaged with the app and they are the targeted market of Red Bull. This has also helped Red
Bull to capitalize the users on the social networks and they can reach the marketing messages to
the people. According to Wen et al. (2014), e-commerce marketing has helped Red Bull in the
expansion of its business. Red Bull is a functional beverage and it has established solid fans
foundation. With the rapid development of the social media sites such as Facebook. Red Bull has
set up its own home page on Facebook. It has also set up an interesting and powerful call to
action in its website and thus it becomes difficult for the users to escape when they visit the
home page of Red Bull for the first time. The users can also choose the application which is fit
for them according to their convenience after visiting the home page of Red Bull.
3.0 Methodology
The methodology helps in discussing the processes and methods which are to be followed
to meet the research objectives. In this case, quantitative data will be used to find out which type
of marketing strategy is adopted by Red Bull. Moreover, secondary data will be collected from
the annual report of the company. The various marketing strategies which are adopted by the
company will also be discussed in detail. The data will be analyzed using different types of

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statistical tools like SPSS and thus it will help to meet the research objectives. Moreover, the
research will be based on ethical approach and it will ensure reliability and validity. The work
will not be plagiarized and the data gathered from the secondary source will not be manipulated.
Thus, it will help to meet the research objectives (Bryman and Bell 2015).
4.0 Marketing Strategies
The marketing strategy of any company is drawn from the market research and it focuses
on the product mix so as to maximize its profitability and sustainability of the business. Red Bull
has used various marketing strategies such as word-of-mouth, event sponsorship, point-of-
purchase, advertisement, sampling program, athlete endorsement (Cornil et al. 2017).
4.1 Strategy 1
In the point-of-purchase sale of Red Bull, certain prominent locations are set. The
products are sold in branded refrigerated unit and the van drivers distribute and make sure that
the product is available in those points. There are also a team of dedicated people who are
engaged in the vehicles which are covered by Red Bull logo and they supply the stock to the
various locations. They also make sure that there is proper advertising of the product (Rosenthal
and Morin 2016).
4.2 Strategy 2
Red Bull has also tried to venture in sponsoring athletes to build the brand equity. It is
one of the most important tactics and the athletes perceive it as successful and powerful. It is
sponsoring sports events such as “Red Bull Signature Series”. It has also participated in event
marketing such as creating and sponsoring events and thus this has enhanced the brand equity

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and the brand image. It has provided sponsorship in Red Bull Flugtag event, Red Bull
Ramoagde, Red Bull Soap Box Race, Red Bull Cape Fear and many more (Schmidt et al. 2017).
4.3 Strategy 3
The word-of-mouth strategy has involved “micro-targeting” such as bars, clubs, shops
and stores. The youths have also influenced their peer groups after consumption. This has also
led to seeding program and created a buzz among the youths. This strategy was adopted in
various sports competition and by various opinion and cultural leaders. Moreover placing empty
cans in the bars and clubs has also created popularity among the people. It has also applied a
strategy in its advertisement which stated that the drink is meant for brave and energetic people.
This has helped the company in increasing the sales volume (Wesnes et al. 2017).
5.0 Conclusion
Thus, it can be said that the Red Bull has captured more than 50% of the market share
and it has more than $1 billion sales worldwide. The sponsorship marketing strategy adopted by
the company has led to increase in its customers. The company has also used various types of
advertisement to attract the people. As the product is for the niche market, it has been able to
reach only a particular segment of the society. It is necessary that the company must concentrate
on sales without compromising the quality.
6.0 Recommendations
In the presence of a large number of competitors in energy drink, red Bull will have to
introduce new flavors so as to keep the customers attracted and motivated for their product. It
must also use new innovation in packaging which will make the product more attractive. To

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maintain its identity in the market, it must expose its product in a different way than the other
brands. The company must follow the average pricing strategy rather than the high pricing
strategy. Moreover, the packaging must be in different sizes so that customers of all segments
can purchase the product. The company must also try to focus on celebrity endorsement and it
must use sports celebrity to endorse the product and capture the market.

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References
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Buchanan, L., Kelly, B. and Yeatman, H., 2017. Exposure to digital marketing enhances young
adults’ interest in energy drinks: An exploratory investigation. PloS one, 12(2), p.e0171226.
Bustin, G.M., Jones, D.N., Hansenne, M. and Quoidbach, J., 2015. Who does Red Bull give
wings to? Sensation seeking moderates sensitivity to subliminal advertisement. Frontiers in
psychology, 6.
Cornil, Y., Chandon, P. and Krishna, A., 2017. Does Red Bull give wings to vodka? Placebo
effects of marketing labels on perceived intoxication and risky attitudes and behaviors. Journal
of Consumer Psychology.
Freeman, Becky, Bridget Kelly, Louise Baur, Kathy Chapman, Simon Chapman, Tim Gill, and
Lesley King. "Digital junk: food and beverage marketing on Facebook." American journal of
public health 104, no. 12 (2014): e56-e64.
Miles‐Chan, J.L., Charrière, N., Grasser, E.K., Montani, J.P. and Dulloo, A.G., 2015. The
thermic effect of sugar‐free Red Bull: do the non‐caffeine bioactive ingredients in energy drinks
play a role?. Obesity, 23(1), pp.16-19.
Rosenthal, T.M. and Morin, D.P., 2016. A little Red Bull may give you wings, but it probably
will not affect your Tpe. Anatolian journal of cardiology, 15(11), p.923.

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Schmidt, L., Chandon, P., Pessiglione, M. and Plassmann, H., 2017. Red Bull Gives You
Incentive Motivation: Understanding Placebo Effects of Energy Drinks on Human Cognitive
Performance. bioRxiv, p.097717.
Wen, L., Ni, Y. and Huang, B., 2014, May. Analysis of the Application of Social E-commerce
Marketing [C]. In Proceedings of the 2012 2nd International Conference on Computer and
Information Application (ICCIA 2012). Atlantis Press.
Wesnes, K.A., Brooker, H., Watson, A.W., Bal, W. and Okello, E., 2017. Effects of the Red Bull
energy drink on cognitive function and mood in healthy young volunteers. Journal of
Psychopharmacology, 31(2), pp.211-221.