I'm confused...Why is Red Bull everywhere?

Is it really just an energy drink company or is it becoming something more?

As a Formula 1 fan, when I hear Red Bull, I think of Alpha Tauri (or Torro Rosso), Max Verstappen and Christian Horner to name a few. But F1 isn’t the only sport to feature Red Bull, with its logo being spotted in football tournemants, tennis matches and even dance competitions. And it doesn’t stop at sport, Red Bull also run music events pairing modern artist with classical orchestra, known as Red Bull Symohonics. Their recent performance with Metro Boomin went viral. It’s safe to say that the drinks company has become synonymous with success in sports, arts and more, encouraging people to test their limits and beyond.

That success can also be applied to their actual product, energy drinks, selling more 100 billion globally since its launch in 1987, with sales in 2019 alone being almost equivalent to the world population (7.5 million cans). But this sucess doesn’t surpass the sales seen by their competitors, Coca Cola and Pepsi. So it seems strange that Red Bull is the brand that has plastered it name just about everywhere (and I mean everywhere, like even in space). The answer to our question lies in the company’s marketing strategy. To explain we have to go back to the early days of its commercial success in Thailand.

Krating Daeng was a drink invented by Chalerm Yoovidhya with the purpose of being accessible to the working population of Thailand who needed to stay alert for their jobs. The low cost of what was then a tonic and its image as a working man’s essential made it a national success. However, after trying the drink himself, Austrian businessmen Dietrich Mateschitz pitched the possibility of international success to Yoovidhya. So, with a 50% investment from both men, Red Bull set to work establishing its brand on a global scale.

First port of call was changing Red Bull’s image. Mateschitz believed the beverage had the possiblility of becoming a more exclusive drink targeted at a wealthier group of consumers, which was the complete opposite of its original image. This was especially challenging considering there were issues with the drink itself, more specifically its taste and quantity. But, Mateschitz made it work.

He began by targetting wealthy university students, making them brand ambassador and providing free Red Bull cans for parties. Not only did this help adjust Red Bull adjust their image, but they were able to create a strong presence in their target consumer market. However, to reach the success Mateschitz promised, they needed more than student ambassadors. The answer? Extreme sports.

Red Bull first started investing in sport back when it was known as Krating Daeng in Thailand. They would sponsor Muay Thai events which were an important part of Thai culture, further cementing its presence in the country. Although Red Bull didn’t have the budget to invest in prominant European sports like football, they still had enough to invest in extreme sports. It was cost effective solution that allowed for expansion. But what really made it work was that extreme sports triggered extreme emotions. And extreme emotions result in a stronger memory. So, Red Bull began investing in talents within extreme sports.

The company would eventually churn out sponsors throughout all types of extreme sports like motorbike racing (MotoGP). They even began to create events of their own, like soap box racing and funding their own extreme stunts. Eventually, along with drink sales, Red Bull's investment into extreme sports allowed them to expand into popular sports like football, buying a total of 4 struggling teams and turning them into one of the best in each of their respective leagues.

Now all this investment into their image is good, but Red Bull's profits show that the altheles and teams they sponsor don’t actually generate that much income. So what’s the point? Well, the company have actually proven that these sponsors do siginificantly increase their drink sales. For example, their 2012 jump from space was able to generate a 12% increase in global sales.

Time and time again, Red Bull have proved just how fool-proof this strategy is. At its core, Red Bull is just trying to make sure it stays in business for as long as possible. But amongst all of their crazy stunts and sports achievements, they have truly proved that image is power and marketing is everything. While many may argue it isn’t the most successful marketing story of the century, its one that I often think about. Like what energy drink company can truly gurantee that anyone can name at least one thing related to them that isn’t its drink? Its sponsor numbers continue to rise and their sucess along with it too. As long as each of their sport investment continues to successful, the company will continue to grow (easier said than done). As Red Bull expands its empire, is it possible that we see them ditch the infamous can altogether to focus on their investments? Who knows.

Comment below what questions you would like answering our next article.

Sources:

https://www.choicehacking.com/2022/11/07/red-bull-psychology/