How Red Bull Dominates the US Energy Drink Market (2024)
The corporate branding strategy that led to selling one in four drinks
After visiting Thailand in the 1980s, Austrian-born Dietrich Mateschitz developed the Red Bull energy drink and cofounded Red Bull GmbH with Chaleo Yoovidhya, a Thai business tycoon who developed Krating Daeng. They sold their very first can of Red Bull on April 1, 1987, in its home market of Austria.
With more than 32 years of history, Red Bull marketed itself through advertising, events (Red Bull BC One, Red Bull Flugtag, Red Bull Rampage), music (Red Bull Music Academy), sports teams’ ownership (Infiniti Red Bull Racing, New York Red Bulls, FC Red Bull Salzburg, Team OG) and endorsements (Eminem, Shaun White).
Its trademark logo, the two red-colored bulls with yellowish highlights along with the bolded red words “Red Bull,” can be seen prominently on their tall and slim blue-silver flagship product, the Red Bull Energy Drink.
To understand Red Bull’s corporate branding strategy, an understanding of its positioning, target market, and gaps between them (if any) has to be established first.
Red Bull’s target market can be identified as young urban males that live on the edge or aspire to do so. They’re also generally interested in extreme sports and challenging recreational activities.
The positioning Red Bull takes has shown it understood its target market well — as it made it's brand aspirational through the various events it organized described earlier on. By doing so, it allows Red Bull to connect well with its target market, hence making Red Bull’s positioning effective.
Red Bull also managed to be consistent, clear and constantly communicating to its target market through the various events it organized.
They have been consistent through the repetition of its value proposition “Red Bull gives you wings,” which signifies how Red Bull can boost your cognitive and physical performance, as this is what the target market is looking for. The message is also clear as they’ve used the same slogan, “Red Bull give you wings,” repeatedly since the start and revolved their advertisements around that slogan.
Red Bull also manages to constantly communicate its message by utilizing various platforms like advertisements, endorsements, and online channels.
After analyzing Red Bull’s positioning and target market, it can be deduced there’s almost no gap to fill as Red Bull is able to communicate its positioning in a consistent, clear, and constant manner to its target market.
Under the dimension of the Corporate Citizenship Image, Red Bull has performed well by establishing a positive image. This positive image is formed by their concern with the environment, shown through the emphasis of their 100%-recyclable aluminum cans.
The display of concern for the environment is very evident from the fact it’s prominently displayed together with their significant company information, like the company’s history and product, on their main website.
By doing so, it develops the second tier of the Brand Equity Model, both the Performance and Imagery blocks. In terms of the Performance block, by having 100%-recyclable aluminum cans, it reduces the weight of the can.
This makes it easier to hold, lift, and consume and makes it even lighter to carry around, especially in bulk. The aluminum cans are also oxygen-proof and neutral in taste, so the drink stays fresh, giving it top quality for a long time — making the drink taste good. Hence, the associations from both the lightweight can and the good taste help Red Bull develop its Performance block positively.
When looking at the Imagery block, one would perceive Red Bull as a responsible corporate citizen for its efforts in going great lengths to ensure its carbon footprint remains as minimal as possible throughout the entire life cycle of the can. With that, Red Bull is able to positively develop its Imagery block, too.
Next, when looking at the dimension of Corporate Product Image, Red Bull is evaluated to have done well.
One good example of its corporate branding efforts to develop this dimension would be the Red Bull Stratos campaign. Launched in late 2012, the Red Bull Stratos campaign features Austrian skydiver Felix Baumgartner ascending to the stratosphere on a helium balloon before jumping off in a pressure suit, freefalling for over four minutes until he deployed his parachute, allowing him to land safely back to Earth.
The success of this event can be associated with the high quality of the Red Bull brand through the Red Bull sponsored equipment, which didn’t malfunction when achieving this novel feat. The Red Bull brand is also able to associate itself as being innovative through this first-of-a-kind feat, breaking the record of the highest altitude free fall.
The Red Bull Stratos Campaigns, thus, develops the entire brand equity pyramid of Red Bull, from base salience to resonance.
First, the salience is improved by the mainstream press and the sharing of the video of this campaign. Secondly, the Performance block is developed by the success of this Red Bull event. Thirdly, the Judgment block is developed by the high quality and professionalism — the Red Bull event was completed successfully in one try. Fourth, the Imagery block is developed by the audience who’d associate such a novel Red Bull event as cool. Fifth, the Feeling block is developed from the excitement of the Red Bull event. Lastly, the audience feels resonance by being engaged and affiliated with the Red Bull Stratos campaign.
It can be said this high-profile campaign is one of the key events in the year that contributed to the 8% increase in Red Bull’s brand value in 2012. It saw a lower 6% increase in 2013, and in 2011, a year before the Red Bull Stratos campaign, it only showed a 4% increase.
Moving on to the next dimension of the Corporate Service Image, the evaluation for this dimension is Red Bull is doing well in engaging with its fans and consumers. This can be seen on their social media page — where they actively engage their fans, replying to their comments and conversing with them.
The warm, friendly image Red Bull maintains through their effort in engaging with the feedback of their fans positively impacts the brand-building blocks of Performance and Imagery, whereby fans will associate Red Bull’s image as a subject-matter expert in its performance and someone they can relate to for imagery.
The last dimension, the Corporate Credibility Image, can be divided into three parts — expertise, trustworthiness, and likability. Red Bull has done well in this dimension, too, as it manages to improve the whole brand-building pyramid.
One of the ways in which Red Bull has done well is it endorses many skilled athletes. By endorsing skilled athletes, Red Bull associates itself with experts of the various sports.
This gives the image that Red Bull supports the athletes and thus is able to concoct a product of outstanding quality to support the skilled athletes. This develops the Performance and Imagery blocks of the brand-building pyramid.
According to a news article written by Geraint Smith, there were three deaths linked to the consumption of Red Bull. Even though those tragic events happened, Britain’s Food Standards Agency said it didn’t plan to launch an investigation as Red Bull’s spokesperson reiterated there was rigorous scientific testing even before the drink came out on the market and it had had a safe record stretching back 14 years.
In light of this, it can be seen that Red Bull is trustworthy as they had a long safety track record, and the officials didn’t further pursue the matter. This reassures Red Bull’s consumers that Red Bull is reliable, professional, and cares about their customers, developing the Feelings and Judgment blocks of Red Bull’s brand-equity pyramid.
Red Bull also cultivated a plethora of events (Red Bull World Cliff Diving Series, Red Bull BC One, Red Bull Rampage, and Red Bull Flugtag) that run successfully every year.
This wide array of events are aligned with the passion and interest of its target market, which allows Red Bull to be more likeable — as the audience shares the same passions as the brand. This develops Red Bull’s Salience block from the wide number of events and also the Resonance block from the engagement of its passionate consumers.
Based on the evaluations above, Red Bull has strategically positioned itself in a target market where its corporate branding strategy is synergistic. This allows Red Bull to accelerate the growth of its brand equity, which, in turn, enables Red Bull to command a premium on its products and compete with its competitors.
By consistently innovating and conducting high-profile events, as well as sponsoring teams and athletes, Red Bull will be able to continue churning out meaningful content that builds brand value, which will ultimately enable Red Bull to dominate in the energy drinks market for years to come.
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Sponsoring or creating events: Red Bull proved its marketing prowess by taking its product and associating it with things its audience loves by sponsoring or creating events for them.
Says Red Bull founder Dietrich Mateschitz, “If we don't create the market, it doesn't exist.” Mateschitz's secret to creating a $16 billion worldwide stampede for Red Bull lies in a highly ingenious “buzz-marketing” strategy that herds consumers to exclusive and exciting events that get high media coverage.
The Marketing strategy of Red Bull is a combination of high quality content across all digital channels, sponsorships of extreme sports that drives brand awareness and word-of-mouth, Guerrilla Marketing, a humoristic advertising approach, as well as powerful and consistent branding.
They don't directly promote their product often, but when they do, they always promote it in a way that entices their target audience. The clearest example of this can be seen in their slogan, “Red Bull gives you wings.” Red Bull gives you wings.
Red Bull was the leading brand within the United States energy drinks market in the 52 weeks ending on May 15, 2021 responsible for almost one half of all sales. ... Market share of the leading energy drink brands in the United States in 2022.
In the U.S. retail landscape, Red Bull was ranked as leading energy brand in 2019, based on sales. ... Leading energy drink brands in the United States in 2022, based on sales (in million U.S. dollars)*
The target audience for Red Bull is independent professionals with an average to higher income. Red Bull markets their product by appealing to the consumer first, then sales. This brand has grown from being the only energy drink on the market to being in more than 170 countries around the world.
Established in 1987, Red Bull is an established beverage company. Red Bull, who specialized in energy drinks, greatest strength is its unique marketing strategy and alignment with distributers. Its dominance can be attributed to the organization's capacity to focus on its strengths while compensating for weaknesses.
Unlike of many companies of similar sizes, Red Bull is a private company, not a corporation. As such, the management is free from shareholder pressure for short-term profitability and the company's strategy can be directed towards achieving long-term growth of the business.
In the U.S., energy drinks are the most popular supplements for teens and young adults. The majority of these drinks are consumed by men between 18 and 34. This growth is attributed to increasing awareness and an increase in sports activities among the younger population.
Now, the consumers are familiar and consider themselves part of the brand. They want to live an energized life, with lively culture which considers adventure as their main aspect of life. Red Bull give them wings because these people believe they can fly. Red Bull's lifestyle is all about thrill.
Red Bull's marketing strategies are a success story of making a specific drink well-known, especially among young people. The brand spends 84% of its profits on marketing.
In 2021, Red Bull had an estimated brand value of 15.99 billion euros, up from 15.11 billion the year prior. The energy drink manufacturer remained Austria's most valuable brand by a significant margin. ... Brand value of Red Bull worldwide from 2016 to 2021 (in billion euros)
How much market share does Red Bull have? As of 2020, Red Bull had a very strong 43% of the global share of the energy drinks market. With Red Bull and Monster accounting for a whopping 82% combined market share of the global market.
In 1987, the company sold its first can of Red Bull in Austria. In 1996 Red Bull began operation in the United States and has seen steady growth ever since.
The popular energy drink Red Bull sold 9.8 billion cans in 2021 worldwide, up from just over four billion cans in 2011. Red Bull is one of the most popular energy drinks in the United States, controlling about 42.5 percent of the market.
Men between the ages of 18 and 34 years consume the most energy drinks, and almost one-third of teens between 12 and 17 years drink them regularly. There are two kinds of energy drink products.
Red Bull competitors include PepsiCo, Keurig Dr Pepper, The Coca-Cola Company and Monster Beverage . Red Bull ranks 1st in CEO Score on Comparably vs its competitors.
The unique selling point of red bull is the energy it gives people. Also it is one of the first energy drinks to come out. Its also the most bought energy drink as it is reliable and actually gives of the energy.
However, this energy drink may also have some risks and side effects that you should be aware of before you drink it. Red Bull side effects can include weight gain, insomnia, tooth decay and possible increased risk of osteoporosis. Red Bull health risks also include interactions with alcohol and some medications.
The global energy drinks market is projected to grow at a compound annual growth rate of 8.1% through 2030, due to consumers' increasing focus on wellness, endurance and alertness, according to Acumen Research and Consulting.
This has been brought about by a growing focus on fitness and health by consumers. Energy products are sold as a replacement for carbonated beverages. In recent years, thus, the number of people moving away from carbonated drinks to energy drinks has increased significantly.
Energy drinks are intended to boost your energy, alertness and concentration. People of all ages consume them and they continue to grow in popularity. But some health professionals have warned that energy drinks may have harmful consequences, which has led many people to question their safety.
Beyond sponsorship, Red Bull owns several extreme sporting events including Flugtag (an acrobatic flight competition), the Red Bull Air Races, and teams in multiple sports including F1, NASCAR, soccer, and ice hockey.
They're widely used as an alternative to other caffeinated drinks like coffee to provide an energy boost throughout the day. Red Bull and Monster are similar in many ways but have slightly different ingredients and flavor profiles.
Monster was the second leading energy drink brand in the United States that year, generating sales of 1.76 billion U.S. dollars. ... Energy drink sales in the United States from 2017 to 2021 (in billion U.S. dollars)
The first energy drink appeared in the U.S. in 1949 and was marketed as “Dr. Enuf”. In Europe, they were launched for the first time in 1987; then the market expanded throughout the world, becoming very popular after the launch of Red Bull in 1997.
They have essentially taken a low-cost, carbonated, caffeinated syrup and made it into a household name. Perhaps the most successful drinks brand since Coca Cola – and Red Bull didn't need cocaine in its recipe to attract customers!
Red Bull makes money by selling its energy drinks at a massive margin and reinvesting the bulk of its massive profits into its marketing campaigns, Red Bull maintains consumer awareness of its brand, boosting its sales.
Thus it is famous for its insane publicity stunts. They sent a man up 128,000 ft above the earth in a small ship and helium balloon and had him free fall out of it. This stunt, commonly known as the Red Bull Stratos Jump (https://youtu.be/FHtvDA0W34I) broke two different world records.
Red Bull's current straight-line speed advantage gives it “very good protection” over the rest of the Formula 1 teams, according to Ferrari sporting chief Laurent Mekies. Red Bull clinched its first F1 constructors' championship since 2013 after winning Sunday's United States Grand Prix courtesy of Max Verstappen.
In total, Red Bull spent 1.6 billion euros on sponsorships and advertising in 2020, or about one-quarter of its annual revenue; in years not disrupted by the pandemic, the percentage was closer to 30%. Monster, by contrast, spends around 21% of sales on marketing.
In 2021, Red Bull had an estimated brand value of 15.99 billion euros, up from 15.11 billion the year prior. The energy drink manufacturer remained Austria's most valuable brand by a significant margin. ... Brand value of Red Bull worldwide from 2016 to 2021 (in billion euros)
The Red Bull Energy Company makes money by selling its signature drink, Red Bull. It is a product that meets the needs of its customers. They also profit from the extensive promotion and marketing of the Red Bull energy drink, which promotes sales.
Red Bull has a competitive advantage over its competitors
Red Bull has a continual international marketing strategy by sponsoring a variety of great sports to promote a “cool” public image and enhance brand power. The product has remained the top energy drink throughout its growth due its effective marketing strategy.
Red Bull continues to dominate as the energy drink leader, with Monster (original) being the second most popular drink. ... Top Selling Energy Drinks 2021 (USA)
Energy Drink Brand
Sales
Change (Year on Year)
Red Bull Editions 80 mg caffeine - 113 calories - 8.46 fl oz
Red Bull utilizes its caffeine, sugar, and taurine components to boost your physical and mental energy. In addition to the caffeine and taurine in Red Bull, it also has B vitamins, which offer a short-term energy boost for it helps the body convert carbohydrates from the food you eat into glucose.
Red Bull | Company Overview & News. The brand that gives you wings sold 6.8 billion cans, up 8%, across 171 countries in 2018. Top growth markets included India (+30%), Brazil (+22%) and Eastern Europe (+22%).
This is because at the rear, Red Bull has more space than the other teams, allowing the possibility of dropping down. ''When stationary, the Red Bull has the highest ground clearance at the rear, and the lowest at high speeds,'' Mercedes engineers told AMuS.
As you might expect, Lewis Hamilton is estimated to have the largest salary of the F1 drivers on the current grid. The seven-time world champion featured in 8th on Forbes list of highest-paid athletes in 2021. ... F1 driver salaries in 2022.
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