Executive Summary

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.
The key factor of the brand’s success is Red Bull’s marketing strategy, mainly known as “buzz marketing”, an art that involves the trendsetters in any
For instance, Red Bull’s Wings Team aims at putting a Red Bull product and leaflet in the consumers’ hand and offering a memorable experience that will drive brand loyalty (Red Bull’s website, April 2012). The targeted customers range from hospital night workers to overstressed college students.
Red Bull is famous for its strong reliance on « buzz marketing », also known as « word of mouth marketing ». This method consists in using the consumer as a vehicle for spreading the brand’s message. It has the great advantage of being inexpensive, and of automatically reaching the targeted customers, as only those customers will be sensitive to the message. For instance, Red Bull started with offering free sampling at schools and colleges before launching the product. This was particularly efficient in enhancing the brand’ recall. The Red Bull Flugtag event created by the brand to promote the product also illustrates its viral marketing strategy. Moreover, Red Bull would appoint student brand managers across campuses in order to reach the trendsetters. These members were offered free cans of Red Bull and were encouraged to organize student parties to promote the brand. Red Bull would also identify hot spots, where most of the targeted consumers would gather in order to campaign in these particular areas. In particular, the company would hire consumer education teams to drive cars that were painted blue and silver with logos on the side, which