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Red Bull Case Study Essay

1. What is the case all about?
2. What created Red Bull’s success? Where is the core franchise and benefit? Has the product’s positioning changed over time? What is the role of alcohol mixing to Red Bull’s success?
3. What is Red Bull’s success formula? For which kind of product/beverage categories will this formula work? How does Red Bull know when to turn on the advertising? What metrics would you use to make this judgment?
4. Why did the first U.K launch go awry?
5. What changes were made for the U.S market? Should other changes be considered?
6. Assume tough competition is coming. How can Red Bull protect its franchise? What actions would you recommend?
7. What should Red Bull’s competitors do? Coke? Pepsi? Anheuser-Busch?
8. If you were an investor in Red Bull, would you take your money and run or stay for the long haul?

Needless to say, the brand has developed an image for power, speed, and recklessness1, and dominates the energy drink market all across the globe. As can be seen in Pricing Strategies, the energy drink is marketed as a premium product. Special ingredients like taurine and alpine spring water in addition to a high concentration of caffeine in a can half the size of other energy drinks are used to differentiate Red Bull from competitors Red Bull is known primarily for its dominating position in the energy drink business, selling its Red Bull Energy Drink. In Austria, the company has also started its own TV channel, called Servus.

TV, and a cell phone service called “Red Bull Mobile”2 Red Bull sponsors not only many extreme sports athletes3, but also a Formula 1 racing team that won both the constructors’ and drivers’ championship in 2010 and 20114 Red Bull CEO Dietrich Mateschitz has also created the foundation “Wings for Life”, which seeks to support people suffering from paraplegia. The ultimate goal of the foundation is to make paraplegia curable5. Red Bull product was positioned not for specific occasions, but rather for a range of occasions. With the flexible brand positioning “Revitalizes Body and Mind,” Red Bull touted itself as suitable for such occasions such as when a long day is over, and a long night starts. On long sleep – inducing motorways. During intensive working days when the date planner is filling up, and your energy reserves are emptying out.


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