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Analysis of the Marketing Strategy of Leading Energy Drinks Distributor Red Bull

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  1. History
    1. The merger of two national leaders
    2. The activities of the Orange group
    3. The organization of the group
    4. Products and Services
  2. The development strategy
    1. The social responsibility strategy
    2. Environment and Sustainable Development
  3. The communication strategy
    1. The media coverage of Orange

Red Bull is an energy drink created by a young Austrian entrepreneur in the 1980s. This young entrepreneur Dietrich Mateschitz seized upon the idea of an energizing drink during one of his many travels. Indeed, he had noticed that many Asian businessmen and the Asian truck drivers consumed, before an important meeting or a long journey, a kind of energizing syrup called Krating Daeng. This triggered off an idea in young Mateschitz who stopped at the bar of Hotel Mandarin in Hong Kong and created a drink inspired by this syrup to market outside Asia. So on his return, he created Red Bull GmbH in 1984. He chose to outsource the production of this beverage and therefore reached an agreement with the TC pharmaceuticals company, which produced the drink in exchange for 51% stake in Mateschitz's company as well as the patent for the manufacture of this beverage.

Red Bull was first launched in the Austrian market in 1987 in 250 ml cans of blue and silver, together with the slogan "Red Bull gives you wings". Since its launch, Red Bull has been linked to events of extreme sports such as base jumping, climbing, mountain biking, free-riding, kite surfing, motor sports etc.

The beverage is prohibited from import in most European countries on behalf of the precautionary principle. Indeed, the latter is believed to contain an excessive rate of caffeine and taurine, substances that are not yet known at the right amount of presence in the drinks. Gradually, Red Bull managed to get the license to import its drink in many countries thanks to an impressive number of tests requested by the brand to private firms for analysis. For example, at the launch, the drink was banned in Switzerland, but in 1995, Red Bull was selling more than 9 million cans in that country alone. From this date, Red Bull also has been outsourcing the distribution of its products.

Red Bull has been an extraordinary success, both in its ambit of distribution and by its importance. Indeed, between its launch in 1987 and its situation today, Red Bull is established in more than 130 countries, the difference is striking. The brand has managed this feat without a huge advertising campaign, but thanks to its strategy of sponsoring many extreme sports that give it an image of its drinks being really clean and very attractive to the target it aims. This success can undoubtedly be attributed to Dietrich Mateschitz, who in 1987, said, ?There is no market for Red Bull but we will create it".

During the product launch of Red Bull in the mid 80s, the concept of energy drinks was very innovative and very few beverages of the same type then circulated in the market of the foods industry except in Asia, where one could find a tonic syrup (Krating Daeng). It is important to note that Red Bull is an isotonic drink recommended for sports such as Isostar and Gatorade.

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