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Red Bull gives you wings |
Somehow I always get inspiration for a post when I’m driving in my car, and then I’ll swerve and pull over to write it down so I don’t forget it 
About 2 years ago I bought a book called ‘100 Great Businesses and the Minds Behind them’ by Emily Ross and like the title suggests, it gives short summaries of a few pages on some of the biggest companies in the world and how they got founded. Companies include Nike, Adidas,Microsoft,Apple,Wal-Mart,Google, many others and …Red Bull.
I want to share the story of Red-Bull and how it came about, seeing that next to Coca Cola it is probably the best known drink world wide.
RED BULL:
” A fizzy energy drink in a slimline can has juggernauted its way to beverage superstardom. Launched in 1987 in Austria, Red Bull now sells more than 1.9 million cans of sweeet,caffeine-packed energy drink in over 70 countries in the world each year.
Red Bull is enjoying up to 90 percent share of the energy drink market in countries where it is sold.
The man behind the brand is tan,tall, and media-shy Austrian billionaire Dietrich Mateschitz-a former toothpaste salesman and marketing executive for German company Blendax,later acquired by multinational food company Protector & Gamble.
It was Mateschitz who took a Thai drink favoured by blue-collar workers,students and drivers and turned it into a global phenomenon.
While working in Asia, Mateschitz came across caffeine-filled energy drinks on sale throughout the region. Often foul-tasting,the drinks often contained exotic ingredients that promised to remedy ailments from flu to impotency. They were sold at premium price in tiny bottles or vials.According to company history,Mateschitz got the idea for his business while sitting in the Mandarin Hotel in Hong Kong in 1982,sipping on such a drink.
Mateschitz started investigating the potential for energy drinks and began about the fortunes being made from selling them locally. He set about finding a formula that he could take back to Austria.
The answer was Krating Daeng,Thai for “red water buffalo”. The Thai version of Red Bull in a non-fizzy drink containing synthtic taurine (an amino acid),caffeine,sugar, and glucuronolactone, a substance that is claimed to give its drinkers increased stamina,enhanced mental alertness and physical endurance.
Krating Daeng had been created by Thai Chaleo Yoovidhya TC Pharmaceutical Company in 1978. Chaleo happened to be a Blendax licensee in Thailand,and met with Mateschitz in Bangkok and struck a deal so that Mateschitz could license the drink in Austria.
“I eventually managed to convince him” says Mateschitz. Both Yoovidhya and Mateschitz own 49 % of Red Bull, and Yoovidhya’s son has the other 2 %. They initially each invested $500 000 of savings in the deal.
Mateschitz then spent 3 years analyzing the market,working on the new formula,developing a market strategy, and finalizing the design of the can (smaller than a Coke can but more expensive for consumers to buy) before he finally got approval from Austria’s Ministry of Health. Mateschitz founded Red Bull GmbH in 1987 in Fuschl,Austria, near Salzburg. Mateschitz says he spent millions in developing the product for the western market but won’t disclose where he found his backers.
Mateschitz took a health tonic,made it less syrupy,gave it more fizz,put it into a sleek,slim can, and turned it into a “smart drink” that claims to enhance performance. He was not deterred by terrible market research that told him his drink was truly disgusting. It is made primarily from synthetic ingredients, many of which are supplied by pharmaceutical industries.
The debut of Red Bull in 1987 was an enticing market proposition at the time when a new wave of sports drinks were taking off in the western market. Red Bull had a positive response from the market. It was first launched outside Austria in Hungary and then gradually throughout Europe. Red Bull took on the U.S. market in 2001 and, after a slow starsales are now booming.
“When we first started,we said there is no existing market for Red Bull.But Red Bull will create it.And that is what finally became true,” says Mateschitz.
Part of Mateschitz’s genius is how he has positioned Red Bull in the marketplace. He built Red Bull’s reputation away from the mainstream,connecting the drink to a world far from ordinary,to extreme sports,the hippest bars,vintage aeroplanes, and aerobatic teams,to every kind of motor-racing and adventure,to Flugtag (a daredevil competition where people build their own flying machines), and even to a wacky cartoon version of Leonardo da Vinci, who stars in many of Red Bull’s advertising campaigns.
Mateschitz puts the success of Red Bull down to marketing: “It is essential that one develops a unique communication and advertising strategy, above and below the line, a campaign that combines body and mind in a very non-conformist way. The image of Red Bull is definitely nothing to do with any food product,but has a luxury,lifestyle identification.”
The brand is all about mystique (and you thought it was just a drink). The company devised tactics such as recruiting cool college students to act as “consumer educators” They take cases of Red Bull to the “right” parties to create a buzz about it, rather than trying to promote the product through regular channels. Red Bull has fleets of custom-built cars driving around city streets promoting the brand, and then there has been the supporting role of celebrities such as Madonna,Britney Speares and Demi Moore, snapped by paparazzi drinking their afternoon Red Bull pick-me-up as part of their so-called daily lives.
Through these channels, the company has created a brand associated with a life less-ordinary – a world away from other types of Red Bull drinkers: those working away in a call center,office or study,needing a kick-start.
The Red Bull marketing campaign has not been cheap to pull off. Sports Illustrated Magazine estimates that, in 2002, Red Bull spent $80 million on sponsoring extreme sports events suck as the Flugtag human flying competitions and kite-boarding from Miami to the Cuban coastline (without shark nets).Red Bull sponsors up to five hundred extreme athletes and has a motor racing academy in Austria for studying and developing the athletic potential of motor racers.
The greatest publicity triumph so far has been a Red Bull-sponsored crossing of the English Channel by Austrian Felix Baumgartner, who jumped from a plane 9000 meters above Dover and glided across the Channel aided only by carbon-fibre fixed wings, to land in Calais 6 minutes later. Mateschitz also has a Formula One racing team. Overall, an estimated 30 percent of revenue is spent on marketing the product.
The real threat to the continued success of Red Bull is from a health perspective. Critics argue that Red BUll has introduced a new generation to caffeine addiction. THe drink has already been banned in Canada,Denmark,Norway and France. The company itself recommends drinking no more than 8 cans a day.
Mateschitz shies away from the media,preferring the brand to take center stage. He is known as a bit of a playboy,likes extreme sports and owns a Fijian island, He has built an office in Fuschl in the shape of two volcanos. With an estimated fortune of $2 billion, he can easily afford an aircraft hanger that houses his collection of sixteen priceless aircraft.
Sales have already reached $2 billion and the company is now looking to Mexico,Russia and the Middle East to start drinking the sugary, caffeinated Red Bull. Mateschitz can be confident that a few more priceless airplanes are not going to break his bank”
To some of you this may not at all be interesting, but to me I loved reading about each and every major company, and how their owners grew one tiny little idea into a multimillion dollar company, known in most countries around the world.
The common theme is having an idea, standing behind it with everything you’ve got, don’t take note of the nay-sayers and non-believers, and working hard for as long as it takes for your idea to take form.
I hope you enjoyed the story, think about it the next time you have a Red Bull 
P.s. If you’re just like me, this book is really worth getting. Get a copy of it at your local bookstore or order it from amazon here:
Have a Rockin’ day
Diggy
Wow, I didn’t know Redbull existed for such a long time
Haha, yeah, it’s a year younger than me
Cool post. I just recently broke my Red Bull addiction, I LOVE the stuff. I really admire that company for their brilliant marketing efforts. I wrote a post about how they got me over at my blog a while back.
Heya Nate!
Thanks for stopping by
I love it too, so addictive!
Cool, I’m gonna go look for that post
Thanks. That article gives me wings
)
You’re Welcome Polina!
Welcome to Upgrade Reality:)
Thanks for leaving a comment!
Very interesting story. I love case studies like that, because there’s so much to be learned from other people’s successes and mistakes. Good to know you’re interesting in history and marketing like I am! We’ll have some information to share, no doubt!
I love this kind of stuff, it’s always great to learn and study from those who have already achieved what we still want to achieve:)
Thanks for stopping by Colin!
here’s a true but embarrassing story. went to london in summer 2000 and my friend introduced me to redbull vodka’s at a club. i was in heaven. a strong drink that could have you dancing all night long. i bought a case and took it back to new york where i lived…only to discover that, guess what, they sold it in new york, too. i just never SAW it. ha!
And, wow, it’s been around that long!
thanks for the cool and educational post today
more, more, more!
Haha, yeah those redbull vodka’s certainly get you super energetic and overly friendly
More is to come soon:)
Thanks for stopping by Papa!
[...] devised tactics such as recruiting cool college students to act as … Here is the original: Red Bull gives you wings- Upgrade Reality Share and [...]
Man red bull is an amazing drink. I wasn’t aware that it was such a successful business. I mean 2 billion dollars in sales what an accomplishment.
Great post!
Thanks Jonothan!
Yeah it’s pretty amazing how big the brand actually is!
20+ years you say. Didn’t know it had been around for so long.
And don’t get me started on Red Bull vodkas. I’m not sure if the person who came up with that should be celebrated or lynched…
Hi Dave
Much longer than any of us thought right?
Haha, in moderation they are good!
Good story! I only tried Red Bull once and it wasn’t particularly to my liking. I do love the company’s history and marketing skills though.
In Japan, sports and energy drinks are huge business. There are dozens of types in convenience stores here. Prices go from $2 to $15 for a small one person bottle.
They can be a good jolt of energy, but I can’t imagine having more than 8 cans a day. You would be bouncing off the walls.
I say the Red Bull Flying Competition in Budapest a couple of years ago. That was very cool!
I’ve heard so many stories about Japan and the East, I really really really want to go!
As soon as I’m making enough of a passive income from online to support my travels I’m packing my things and getting on a plane
Thanks for stopping by John!
Great Story. Red Bull UK has been a huge success story, I knew the CEO and in the mid 90s he was establishing it via a word of mouth buzz. He wanted club DJs, bar workers, truck drivers to be drinking it BEFORE marketing it to the consumer. He gave me a few cases to take to a project I was running backstage at the MTV Europe Music Awards and that strategy paid off. Forget the official drinks backstage, all the bands and crew came to our fridge for the Red Bull.
I recently did a video interview with Harry Drnec, ex CEO Red Bull that you can see here http://www.tinyurl.com/harrydrnec
Hey Ian!
Welcome to UpgradeReality and thank you for stopping by!
Wow, you knew the CEO? That is so so cool. I know my grandfather actually went to a party hosted by the founder of Red Bull, Mateschitz. He told me about it one time, was crazy how much money they spend
I don’t understand the success of Red Bull at all. The product itself is an very awful, very unhealthy and very expensive drink.
What I know best of the marketing are the TV commercial here in Germany, and they are just extremely stupid and annoying.
I just can’t believe that anyone buys this bull-shit!
Hey Marie!
Thanks for expressing your views.
Honestly, I must admit I agree with you, it is rather unhealthy, the caffeine and sugar and artificial ingredients, although every now and then a can of chilled Red Bull I find rather delicious.
It all comes down to the clever marketing campaigns, sponsoring of huge events, association with extreme sports and celebrities.
People are crowd-followers and will do a lot of things just to be cool and part of the top crowd.
Thanks for stopping by
Diggy – reading biographies/autobiographies, or case studies of successful businesses is always a good idea. Thanks for this – one of the things I do is model the things others do to get the same result. I guess the take home message here is that we can create a new, unique, edgy identity (no matter if we are speaking about a product, or about OURSELVES).
Cheers,
Yavor
Hey Yavor!
Welcome! Great to see you here!
You’re welcome, I’m glad you enjoyed the article. I think the best way to learn is to study those who have already achieved what we want to achieve!
Have a fabulous weekend!
Yes this is example of what marketing can do. Build company from nothing.
My favourite example is Despair Inc., they really don’t produce anything that is useful by itself, it’s all good unconventional marketing.
I know about the power of marketing more than anyone having worked at the top of companies such as Shell and Unilever. Most people have no idea about the millions of dollars and years of hard work that go into something as simple as Vaseline or Spaghetti sauce
You must have seen some amazing secrets and tactics watching the giants do battle.
I think it’s all about brain-washing and repetition to get people to associate a certain product with a condition or word.
Say Tomato sauce, what comes to mind? For me its Heinz.
Energy Drink? Red Bull
Etc etc
Thanks for sharing!
Hey, great stuff! I really like your perspective on Self Improvement. You’ve got a subscriber in me, and I’ll be coming around often!
Ibrahim | ZenCollegeLife.com´s last blog ..12 Tips For the Perfect Dorm
Heya Ibrahim!
Welcome to Upgradereality!
Glad to have you as a reader, and anytime you wanna send me an email with a question or just to chat, do it
have an awesome day!
Hi Diggy,
Where can I get formal information about the RB gives you wings campaign? I am doing a project on that campaign as part of my MBA course