Red Bull Case Study Questions

Question 14-10

The critical thinking issue discussed in the chapters is the entrepreneurial skills of the Red Bull’s founder; Mr. Dietrich Mateschitz. Often entrepreneurs create products after carrying out market research where there is existing markets and products. These entrepreneurs develop strategies to compete with already established brands in the market. The strategies can be product variation, cost and price reduction or both. Mateschitz chose a different strategy where he created a product that had no established market. In other words, there was not market for Mateschitz to research and analyse. He created a market for his product that others will research and analyse in future. Another creative thinking issue is the advertisement strategy employed by Mateschitz. Other than using the traditional print and broadcast media like newspapers, billboards, radio and Television adverts, Mateschitz opted for an in-house marketer-produced strategy to reach potential customers. Red Bull created its own magazines and iPad apps that targeted consumers from different walks of life. It also sponsored youth talent shows such as music and extreme sports that would promote the Red Bull brand. This made Red Bull one of the top brands in the early 21st century.

Question 14-11

The marketing communication strategies used are non-traditional which included:
Broadcast media like newspapers, billboards, radio and Television adverts where Mateschitz opted for an in-house marketer-produced strategy to reach potential customers. Red Bull created its own magazines and iPad apps.

Promoting youthful talents and cultures such as extreme sports like sky diving and music academies.

Question 14-12
Extreme sports and music academies require energy and concentration. Red Bull being an energy drink sponsors these events to try and associate its brand with the energy required for these and other experiences

Question 14-13

Red Bull risks being viewed as a cult by sponsoring extreme sports. This leads to anti-branding which competitors and haters use to try and bring it down.

Question 14-14

Red Bull’s caffeine ingredient and the fact that it retails more in bars and clubs has caused mixed reaction with some claiming that it has the same effect as alcoholic drinks and other addictive substances.

Question 14-15

According to professor Kumar, Red Bull has became competitors’ prime target by using unorthodox strategies to market its brand. Red Bull’s association with extreme sports caused it to have cult followings which competitors and haters used to try and bring it down. Artists like Matthew Herbert selected to perform at the Red Bull music academies have developed a negative attitude towards the event and the brand, citing intimidation by the size and popularity of the brand.