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Marketing Product Strategy

Group A901-03-2004

From Thailand to the world

Group A9

• CEO: Deitreich Mateschitz

• Discovered in 1984 in Thailand

• Market targets: Blue collar, Truck driver

• Ownership: 51% Thai & 49% Austrian

From Krating Daeng…

…to Red Bull

The number 1 in Energy Drinks…

70% of the energy drinks

market

In 2002, $1 Billion annual sales

1.2 Billion cans sold

8.7% sales growth

Group A9

Targeted at Young Dynamic People…

Group A9

Sports enthusiastsParty – “In”-People

Generation Y(14 – 29 year old)

Trend-setters/followers

Red Bull Gives you Wings…

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Stimulates metabolism and helps eliminating waste substances

Improves physical endurance

Improves reaction speed

and concentration

Improves reaction speed

and concentration Increases mental alertnessIncreases mental alertness

Improves overall feelingof well being

Improves overall feelingof well being

Its all in the can…

Unique can: slim, sleek & small (sexual appeal and energy)

No options in packaging

Looks European

Ingredients:- Synthetic- Non-alcoholic- Taurine, caffeine, sugar, amino acids and

vitamins- Vegetarian friendly

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It delivers as promised…

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Stimulates body and mind

Most effective energy drink on the market (“functional drink”)

Not for hydration (not a thirst quencher)

Just like a caffeine-containing coffee

Distribution follows the target market…

•Securing unusual distribution channels.

- Dedicated distributors- Company owned warehouses- On-premise & off-premise accounts

•The mission:

to find out where the target demo (men and women age 16-29) hangs out and what interests them.

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Innovative use of grassroots marketing…

No print, prime time advertising, web based campaigns, billboards

Extreme Sports

Student brand managers

Mobile Energizers

Single Product Focus

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The drink your parents are scared of…

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• Bull semen/urine

• Taurine

• Legal speed/cocaine

• Founder is an elusive character

• Rarely deny the rumours

•Fatalities

•Verge of being banned

•“Discovery” of Red Bull

Red Bull Created a Brand-new Market…

Group A9

Interact

Isolate

High

Low

LowHigh

Innovation orientation

Customerorientation

Shape

Follow