Introducing
Begun in 1987, Red Bull is a Thai-Austrian company that currently sells the world-famous Red Bull energy drink. The company itself was founded by the Austrian Dietrich Mateschitz, who was inspired by the drinks that are common in places like Thailand (Red Bull 2016). The first Red Bull energy drink—that is, the drink that is commonly recognized today, rather than the earlier iterations of the drink—was first sold in 1987. Red Bull is commonly considered to be the world’s first real targeted “energy drink,” and remains a powerful figurehead in the market to this day. According to the Red Bull company statistics, Red Bull is sold in 169 countries around the world, and more than 60 billion cans of the product have been consumed over the years.
Red Bull’s company has also become synonymous with extreme sports. The company associated with the energy drink invented the marketing slogan “Red Bull gives you wings,” a slogan that has become closely associated not only with the drink but also with the extreme sports teams that the company sponsors (Red Bull 2016; Boome 2011). Prior to developing Red Bull, energy drinks were seen as unsavory and ill-advised in Thailand; however, once this product was introduced to the worldwide market, the demand grew significantly and became one of the most recognizable products in the niche market. Despite the fact that many researchers have suggested that these products are unsafe for consumption, many people still enjoy the effects of these heavily-caffeinated drinks (Ragsdale et al. 2010; Forbes et al. 2007). Red Bull has become an international phenomenon, and there is no doubt that the amazing marketing structures that exist within the organization are primarily responsible for this meteoric rise to fame and success. Indeed, even though the market is saturated today, the Red Bull logo is still widely recognized; this is partly due to the fact that Red Bull has participated in a number of widely successful marketing campaigns over the years, each of which has pushed the Red Bull brand name further into the limelight (Boome 2011).
Red Bull has also won acclaim from many circles for being a relatively environmentally friendly company, which has given it significant popular culture appeal. These very specific and important features of the company have helped Red Bull rise from the start-up organization that it was in the 1980s to the international powerhouse of a brand that it is today (Gorse, Chadwick and Burton 2010). The company boasts that the cans that Red Bull is sold in are 100% recyclable, and that the company is working hard to move towards a totally renewable and environmentally-friendly production process, something that is very appealing to a great many people in the modern world (Gorse, Chadwick and Burton (2010). Currently, the company behind Red Bull employs 10,997 individuals around the world, and the number employed by the company has increased significantly and consistently since the inception of the organization (Red Bull 2016). Despite concerns about the health risks associated with the drink, it continues to be a very popular and lucrative area of the company.
The Red Bull Air Race is a series of races that have been established to challenge pilots (Red Bull Air Race 2016). The course, designed to be highly challenging, forces pilots to engage in complex flying maneuvers for the fastest time (Red Bull Air Race 2016; Weingartner et al., 2008). Not only do the pilots in the race have to compete in difficult conditions, they must also fly against the clock and the other pilots in the race. These races are designed to be showy—people are meant to want to come and see these events, and they are often filmed in spectacular fashion to ensure that the public as a whole are able to engage in the process of extreme flying. The sights associated with these races are often quite spectacular, and they are often held close to major cities, landmarks, and natural wonders to underscore the awesome character of both man and nature.
The success of the Red Bull Air Race was surprising. Red Bull has engaged in a number of extreme sporting events in the past, of course—the company is well known for engaging with athletes and other talented professionals that are willing to push the boundaries of what is possible to demonstrate the true expanse of human ability (Gorse, Chadwick and Burton 2010). However, the success of the Air Races is, perhaps, due to humanity’s great interest in flying machines and the amazing perspective of these natural treasures from the air (Red Bull Air Race 2016; Brasel and Gips 2011).
The Air Races were initially a small project for Red Bull, which has engaged in many types of extreme sports and the sponsorship of many different extreme sports over the years. The European market is quite different from the American or Asian market, but there seemed to be some trend in winners in the years since 2008: since 2008, there have been no American winners of the Red Bull Air Races (Red Bull Air Race 2016). This seems to be a remarkably good reason to expand the market—Europeans are already participating in the project; they have earned the right to host these events in the coming years (Red Bull Air Race 2016). Indeed, there have been no Americans or Asians that have managed to win in the Master Class since the year 2007 (Red Bull Air Race 2016). However, the move to Europe might have been simple, but choosing a location remained problematic; however, upon careful consideration, expansion back into Austria, particularly the Austrian Alps, was considered a top contender for a future spot.
Austrian Dominance in the Races
Austria has been dominant in the Red Bull Air Races in recent years, and this dominance is one of the primary reasons why a move to the Austrian countryside is an excellent strategic move for Red Bull. As can be seen from the image, the Austrian Alps are quite striking: they would make for a superb backdrop to the amazing aerial feats that must be completed by the pilots. Weingartner et al. (2008) note that the consideration of the topography and appearance of the region is one of the primary considerations for the development of a course. This would not be the first time that Red Bull hosted Air Race events in Europe; however, for the past few years, the events have primarily been held in the United States. There have been a number of concerns regarding potential safety issues with the race, but after a brief hiatus, the United States and other nations have allowed the Races to continue with more extensive oversight (Weingartner et al., 2008; Red Bull Air Race 2016; Brasel and Gips 2011).
Event Theme
Red Bull has long had an engagement with viewers based on an “extreme” and “awesome” focus—that is, Red Bull provides only the most extreme entertainment to fans. However, more than just being extreme, Red Bull likes to highlight aspects of human performance excellence; that is, when human beings are capable of doing extraordinary things, Red Bull is willing to sponsor and help support the event (Red Bull Air Race 2016; Brasel and Gips 2011). As such, for this event, the theme should continue to focus on the beauty of nature and the amazing qualities of bravery, agility, and ability that are inherent and honed carefully in human beings. In addition, the event should continue with the theme “Red Bull Gives You Wings,” as this is both a pun on the aeronautical nature of the event, and a highly recognizable brand slogan for the company as a whole. The event can and should continue to try to highlight the amazing abilities of the pilots, without drawing distinct cultural barriers between the different pilots. This has been one of the most significant successes of the Red Bull campaigns: the company has managed to make the events competitions between the human race rather than competitions between different countries. Instead of being a race about nationality, the race is about all of humanity striving to go faster and further. It is unifying in a way that is very appealing in an increasingly divided world (Gorse, Chadwick and Burton 2010).
Marketing Strategy
Market Analysis
Having performed a number of analyses on the potential market for Red Bull Air Race in Europe, it was determined that while there are indeed potential problems associated with entering the market in the current state, there are also potential benefits that Red Bull might reap from transferring some of the events from the United States and South American to Europe, notably to Austria. The analyses conducted clearly demonstrate that Europe is indicated as a potential host country for the Red Bull Air Races; however, while it is indicated for a potential site, it should also be noted that there are potential problems that could be associated with this location in the coming years that must be considered.
Target Market
The target market for Red Bull has long been young people, but the extreme sports aspect of the company focuses more heavily on young males than any other demographic (Miller 2008; Bodner 2010). The company attempts to focus on creating an aura of “coolness” for extreme and dangerous behaviors. Although the company does not encourage irrational or irresponsible behavior, the types of stunts that are encouraged by the company are clearly designed to be appealing to the young, masculine audience (Miller 2008).
Market Selection
When considering STP, the segmentation of the market that Red Bull needs to first make is extremophiles versus those who believe things like mountain climbing and racing are wastes of time. Young people are generally targeted, although the Air Races target a slightly older market than some of the more extreme sports that Red Bull supports. The position for Red Bull when it enters this market will be very high, as there are no real competitors in the European or any other market. There are no analogues to the air races, as they are a niche event.
Marketing Mix
The development of an effective promotional strategy is, of course, fundamentally important. However, effective marketing has never been a problem for Red Bull, which has been aggressive and successful with their marketing strategy since their inception. The placement of the event is strategic, of course—the event needs to be somewhere interesting, accessible, and beautiful so that participation is feasible. The product itself does not really need to be sold: the event is well known and has been for a number of years. Marketing via social media and continued support of extreme sports events is recommended. Because this event is a kind of niche event, the price should be affordable: Red Bull has been able to market these events with the conceptualization that “humans are awesome,” and if the price to attend is prohibitive, the façade will be broken.
SWOT Analysis Outcome
The SWOT analysis suggests that there is significant potential for the company in Austria, and that there is also the potential for worldwide expansion of viewership. Technology allows people to be more connected than ever before; as such, the company has the ability to reach out to many people regardless of their geographical location. However, Europe is experiencing a number of difficult political and economic issues right now, including the uncertainty associated with Britain potentially leaving the European Union; this uncertainty could manifest as a shortage of disposable income. However, there is nothing to suggest that a downturn in the economy will be associated with less global interest in the event, merely that there might be fewer individuals physically present to watch the event. However, there is nothing to suggest that the company will not experience significant success with their online presentation of the event; sometimes the online presence of these events are much more overwhelming than the physical presence of these events.
PEST Analysis Outcome
Similarly, the PEST analysis outcome suggests that there’re is a very important role that location plays in the choosing and implementation og a new location for these air races. Europe has not been the host for some time, but the political, economic, social, and technological factors all point to a culture that is ready for engagement of this type. The details of the analysis are broken down in more depth in the following section.
References
Bodner, B., 2010. Company Analysis of Red Bull.
Boome, A. 2011. Who Makes Red Bull? [online] Available at: https://books.google.com/books?id=VrO3O0h6I0wC [Accessed 16 Jul. 2016].
Brasel, S. A., and Gips, J. 2011. Red Bull “Gives You Wings” for better or worse: A double-edged impact of brand exposure on consumer performance. Journal of Consumer Psychology, 21(1), 57-64.
Forbes, S.C., Candow, D.G., Little, J.P., Magnus, C. and Chilibeck, P.D., 2007. Effect of Red Bull energy drink on repeated Wingate cycle performance and bench-press muscle endurance. International journal of sport nutrition and exercise metabolism, 17(5), p.433.
Gorse, S., Chadwick, S. and Burton, N., 2010. Entrepreneurship through sports marketing: A case analysis of Red Bull in sport. Journal of Sponsorship, 3(4).
Lauria, P. 2008. Pump the Music: Red Bull Eyes Starting Branded Music Label. [online] Available at: http://www.nypost.com/p/news/business/item_SY9XQMYwCgtsf6cCoINAOO;jsessionid=A41FF58821B638E4FD7E126596BCABFB [Accessed 16 Jul. 2016].
Miller, K.E., 2008. Wired: energy drinks, jock identity, masculine norms, and risk taking. Journal of American College Health, 56(5), pp.481-490.
O’Brien, J., 2012. How Red Bull takes content marketing to the extreme. Mashable, December, 19.
Ragsdale, F.R., Gronli, T.D., Batool, N., Haight, N., Mehaffey, A., McMahon, E.C., Nalli, T.W., Mannello, C.M., Sell, C.J., McCann, P.J. and Kastello, G.M., 2010. Effect of Red Bull energy drink on cardiovascular and renal function. Amino acids, 38(4), pp.1193-1200.
Red Bull. 2016. Who makes Red Bull? Red Bull Company - Origin & founder :: Energy Drink :: Red Bull USA. [online] Available at: http://energydrink-us.redbull.com/en/company [Accessed 16 Jul. 2016].
Red Bull Air Race. 2016. Red Bull Air Race. [online] Red Bull Air Race. Available at: http://www.redbullairrace.com/en_US [Accessed 16 Jul. 2016].
Travel55.co.uk. 2016. Westendorf Austrian Alps Holidays | Coach Holidays Austrian Alps. Discount Prices. . [online] Available at: http://travel55.co.uk/holiday/austrian_alps_coach_holidays_westendorf_shearings [Accessed 16 Jul. 2016].
Weingartner, M., Holzapfel, F., Sachs, G. and Myschik, S., 2008. Design of a Track-Generation Algorithm for the Red Bull Air Race World Series. In AIAA Guidance, Navigation and Control Conference, Honolulu, HI.
