Red Bull – What’s so red about the bull

Red Bull is an energy drink sold by Red Bull GmbH, an Austrian company created in
1987. Until recently, Red Bull had the highest market share of any energy drink in the
world, with 6.790 billion cans sold in a year. From being a small Austrian village near
Salzburg, it had become the world's leading energy drink, fighting with giants like Coke,
Pepsi, and Budweiser. But what separates it from the pack is its ability to package itself
as an influential lifestyle brand, aligning itself with extreme sports like skydiving,
motocross, paragliding, and even EDM festivals.

Few facts that will let you hold the bull by its horn

 Red Bull began as a Thai energy drink, called Krating Daeng, marketed towards
factory workers and truckers trying to get through long shifts. The original mix
was made with the same combination of taurine and caffeine. Austrian
entrepreneur Dietrich Mateschitz discovered that Krating Daeng cured him of his
jet lag on a business trip to Thailand. He liked it so much he eventually tracked
down creator, Chaleo Yoovidhya, and the two went into business together.

 Red Bull was pulled from German markets after authorities found trace amounts
of cocaine in the drink. The company states that it does use coca leaves, but only
as a flavoring agent after removing the cocaine alkaloid.

 As part of the Red Bull Stratos, the brand sent Austrian skydiver and Red Bull
athlete Felix Baumgartner 24 miles up into space in a helium balloon. Decked
out in a Red Bull pressure suit, Baumgartner was free falling at speeds over 830
miles per hour before he deployed his parachute. Baumgartner broke the sound
barrier, becoming the first person to do so without using any engines. It may
come as no surprise that owner Dietrich Mateschitz is a pilot and extreme-sports
enthusiast himself.

 Dietrich Mateschitz wanted to create a cult following to brand Red Bull as the
drink of young people having fun. In order to boost its image in an era before
Instagram celebrities, he sought out popular university students and paid them
to throw parties in unusual locations. He then supplied them with enough Red
Bull to tie on the tops of their cars when they went back to school. The trend
caught on, and now Red Bull can be found in nightclubs around the world.

 If you’ve had a Red Bull in the past 12 years, you could get 10 bucks. In 2013 the
company was sued for false advertising in a class-action lawsuit that stated that
the company’s logo “Red Bull gives you wings” was misleading to consumers.
Red Bull agreed to a settlement of 13 million dollars for its American consumers,
offering 10 dollars or 15 dollars worth of Red Bull products.
  Red Bull is the highest-grossing energy drink in the world, followed by Monster
and Rockstar. In total the brand has sold 50 billion cans in over 167 different
countries. Dietrich Mateschitz is now the richest man in Austria, and Yoovidhya
(heir) is the second-richest person in Thailand

 Complete with infinity pools and Formula 1 display cars, the Red Bull
headquarters in Fuschl am See, Austria is a completely swagged-out. Housing
the Red Bull creative team, the compound is comprised of two domes that float
on a boat-shaped lake. They also have their own hangar in the Salzburg airport
that hosts a lineup of vintage aircrafts and helicopters, along with an art gallery
and a restaurant, aptly named Ikarus, that features a new top chef from around
the world every month. Its offices around the world are consistent with the
headquarter’s sleek, minimalistic design (see the video : INSIDE THE RED BULL
OFFICES / SALZBURG (https://www.youtube.com/watch?v=877oswbzYnM )

The first ever red bull came in yellow golden can with a logo of 2 red raging bull
(Exhibit 1). Today it is in a simple blue and silver can (Exhibit 2), Though Red Bull
was positioned as a functional beverage that “vitalizes mind and body” some
called it “cocaine in a can.” The can was touted to provide energy for extreme
sportsmen like the Formula 1 racers, busy professionals or to maintain attention
of students during university lectures.

Exhibit 1

Exhibit 2 Red Bull Campaign Car

 In 1987, Red Bull not only launched a completely new product, it created a whole new
product category — energy drinks. From day one, Red Bull has been “giving wings to people
and ideas” (its tagline), setting many milestones in sports and culture.

Red Bull had been the market leader in the US energy drink market since the moment it
entered in 1997. By early 2008, however, the market was becoming crowded (Exhibit 3) and
Red Bull’s share had dropped below 50% (Exhibit 4). Many of Red Bull's tactics, such as free
giveaways and advertising via extreme sports had become commonplace among other
energy drink brands, which also had similar packaging and content. Products proliferated as
focused competitors—such as Monster and Rockstar— as well as carbonated soda leaders
Coca-Cola and PepsiCo vied for a share of the market.
Exhibit 3 New Energy Drink Product Releases in the US, 2001–2006

Year Numbers
2001 64
2002 88
2003 75
2004 104
2005 151
2006 191

Source: “Energy Drinks—US—March 2007,” Mintel Group Ltd, accessed June 2018.

Exhibit 4 Market Share in the US Energy Drink Market by Sales,

2006 to 2008 (in % of value)

Brand Company 2006 2007 2008

Red Bull Red Bull GmbH 43.9 39.3 45.5

Monster Hansen Natural Corp 13.6 22.8 22.9
Rockstar Rockstar Inc 11.2 9.1 14.0
SoBe PepsiCo Inc 8.6 7.2 3.0
Full Throttle Coca-Cola Co. 6.8 7.3 4.4
AMP PepsiCo Inc 3.8 5.9 6.1
Others - 12.1 8.4 4.0
Total 100.0 100.0 100.0

Source: Snapdata International Group, Snapshots Report: US Energy Drinks

Red Bull Company History

Dietrich (Didi) Mateschitz, Red Bull’s founder, had always been a prodigious salesman. In
one of his interviews he described how he swayed his mother to let him study at the
university in Vienna, further away than the more logical town of Graz: “I chose the university
for the city, not for the university. . . But I could only find one course which wasn’t available
in Graz, which was ship construction. So I convinced her that I had only one desire in life, and
that was to become a ship engineer.” He liked Vienna, taking 10 years to complete his
undergraduate studies while he worked as a ski instructor by some accounts, or tour guide
and worker in a nearby steel mill by others. His initial stint as instructor and guide made him
a great salesman from day one. It was during one of his many business trips that he first
noticed the potential of energy drinks. “One glass,” he said, “and the jet lag was gone.” “The
effect was sensational. Even after an 18-hour flight [you feel] immediately better.” This was no
ordinary drink but Krating Daeng which was soon to be labelled as Red Bull by him. Inspired,
he met Chaleo Yoodvidhya from Thailand, the son of a fruit seller, whose company T.C.
Pharmaceuticals had been experimenting with energy drink recipes and had launched Krating
Daeng (“Red Gaur,” a bovine found in Southeast Asia). Krating Daeng a non-alcoholic drink had
taurine, caffeine and high amount of sugar. This drink was very famous in Thailand in the 1970s.
Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's.
He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull.
In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria.
This was not only the launch of a completely new product; in fact, it was the birth of a totally new product
category. Today Red Bull is available in 171 countries and over 75 billion cans of Red Bull have been
consumed so far.
In 1984, Mateschitz attained the rights for Krating Daeng outside of Asia. (Only in 1988 did
Red Bull take worldwide control of the brand). He rendered the name into English and used
two jarring red bulls on a simple silver and blue can as a logo, with a winning slogan: “Red
Bull Gives You Wings.”
Mateschitz instituted Red Bull Trading GmbH with Yoodvidhya, each investing about
$500,000 for 49% of the company, with Yoodvidhya’s son owning the balance.
Breaking and Reaching Out

In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home
market Austria. This was not only the launch of a completely new product; in fact, it
was the birth of a totally new product category. The small size of the Austrian market
made it a perfect setting for testing marketing concepts.

Austria is Red Bull’s homeland and therefore has a certain level of notoriety across the
country, however its prevalence is particularly notable in the inconspicuous town of Fuschl
am See, where the drink has its headquarters, and even more so in nearby Salzburg. Here,
the Red Bull horns join Mozart and The Sound of Music when it comes to ubiquity in the
city, from the sporting teams to the merchandise shop and, of course, the drink itself –
Austria has the highest level of consumption of energy drinks in the world (followed closely
by Britain).

Initially sales were slow and dire. In 1987, revenues were around $1.1 million, versus $1.4
million spent in marketing mainly advertising. But things started looking better as bars and
nightclubs realized that they could use Red Bull as a mixer. Partiers soon found that mixing
alcohol (a depressant) with Red Bull (a stimulant) enabled them to get drunk, but not
drowsy.

From 1.2 million cans in 1988 to 1.7 million in 1989, the company broke even in 1990.
Mateschitz used mainly the firm’s own capital to expand its business.

In 1992, Red Bull launched in Hungary, its first foreign venture. In 1994, Mateschitz got
the green light from the German health ministry. During its first three months in
Germany, Red Bull sold 33 million cans. Today Red Bull is available in 171 countries and
over 75 billion cans of Red Bull have been consumed so far.

Marketing
Sports and RedBull
Since the 1990s, Red Bull has been synonymous with the sporting world, and in Salzburg,
this is where Red Bull has its greatest influence. Both the ice hockey and football teams,
which have been sponsored by the energy drink since the early 2000s, have huge support
from fans in Salzburg, with lots of home games taking place at the ice rink and at the Red
Bull Academy. To establish its brand, Red Bull associated with people who embodied its
values—the bold, the daring, and the athletic. Red Bull started promoting extreme events
and got athletes on-board to promote the brand. Snow boarders and motocross riders
became its brand representatives. As with its association Red Bull built up its market, to
become a force in the world of sports. Formula One World Champion Sebastian Vettel was
already on the payroll as a 21-year old. In addition, Red Bull purchased two Formula One
teams (Red Bull Racing in 2004 and Scuderia Toro Rosso in 2005), five soccer clubs (Red Bull
Salzburg, Red Bull Leipzig, Red Bull New York, Red Bull Brasil, and Red Bull Ghana)
 Energetic merchandise

A branded Red Bull t-shirt may not be the first thing that springs to mind when you picture
souvenirs from Salzburg, but fans of the drink (or the football club) can pick one up at Red
Bull Salzburg World. Here, you can find all things Red Bull-related, including the official
football kit and caps, office supplies, balls, stickers and much more – all with the famous
bull logo.

Maybe it does give you wings…

Although its slogan of ‘it gives you wings’ may be untrue (one particularly disgruntled
customer successfully sued the company for false advertising because, after 10 years of
drinking the caffeinated beverage, he had failed to sprout feathers), you can fly with Red
Bull at Hangar 7, as it is home to a collection of planes, helicopters, and the Flying Bulls –
one of Austria’s aviation teams. Inside the structure, there is also a Michelin-starred
restaurant and two bars, where you can sample a vodka Red Bull as you watch the skies.

The company also created the event called “Red Bull Flugtag,” in which competitors attempt
to fly home-made, human-powered flying machines, size-limited to around 10 metres,
weight-limited to approximately 150 kilograms. The flying machines are usually launched off
a pier about 9 metres high into the sea or body of water.
Red Bull also sponsored Red Bull Air Race, with pilots flying around a sky “track” as fast as
possible. There was even a paper plane competition: Red Bull Paper Wings. That’s how Red
Bull has been pushing it’s simple marketing message.
And when rumors started circulating that one of its main ingredients, taurine, was made
from a bull’s testicles, the company did not deny it, a move that Mateschitz later claimed to
be intentional. Today the company’s website reads the following:
Is taurine made from bull's testicles?

“Many people bet it comes from some delicate parts of the strongest and most potent bulls
in the world, but the truth is that the taurine in Red Bull is produced synthetically by
pharmaceutical companies, which guarantees highest quality standards. Taurine is not
derived from animals.”
Red Bull also made media investments such as Servus TV (a TV station in Salzburg), the
Red Bulletin36 (a monthly magazine, first distributed at the Monaco Grand Prix in
2005),37 and the mobile TV broadcaster Red Bull TV.
Wall-to-wall production

Saves resources through short distances: Apart from using 80% of our energy from
renewable sources, we implemented what's called 'Wall-to-Wall' production at the
production site. This means our cans are manufactured and filled on the same site - helping
us save many miles of transport. Since we don't have to transport empty cans to the fill up
plant, this reduces the footprint significantly!

Winning America
At the time of Red Bull’s entry, the US non-alcoholic beverage market was relatively slow. In
1995, US beverage sales increased only 1.5% over the previous year to reach $169.3 billion.
Coca-Cola was the world’s largest producer of soft drinks with a 43% market share, a
marketing budget of almost $1.6 billion, and a brand value estimated at over $65 billion.

Red Bull’s success did not go unnoticed. Coke then has its own 100 bottling plants and
strong franchised bottlers. With such a huge network Coke found itself in every retailer’s
premium shelf’s with displays, as the bottlers directly delivered them (Direct Store
Delivery (DSD). PepsiCo was competing neck to neck in the second place, with more than
30% market share and a $1.9 billion marketing budget. (See Exhibit 5 for market shares in
2007/2008)
Exhibit 5: Top Soft Drink Companies by Market Share (based on cases sold), 2007–2008

2008 2007 2008 2007

Market Market Share Cases Sold Cases Sold
Top Brands Share (% cases (millions) (millions)
(% cases sold)
sold)
1 Coca-Cola 42.7 42.8 4,107.6 4,241.1
2 Pepsi-Co 30.8 31.1 2,960.4 3,082.8
3 Dr. Pepper Snapple 15.3 15.0 1,471.2 1,491.3
4 Cott Corp. 4.7 4.8 448.0 476.6
5 National Beverage 2.6 2.5 247.5 243.9
6 Hansen Natural 0.8 0.8 79.0 76.5
7 Red Bull 0.7 0.6 67.2 63.9
8 Big Red 0.4 0.4 43.6 42.4
9 Rockstar 0.4 0.4 40.2 41.0
10 Private Label & 1.6 1.6 156.3 160.3
Other
Total Industry 100. 100. 9,621.0 9,919.8
0 0

In 2000, PepsiCo bought SoBe and introduced SoBe Adrenaline Rush to compete with Red
Bull. The next year, it launched AMP Energy and expanded into sports drinks by buying
Gatorade.76 By 2002, Pepsi’s Adrenaline Rush and AMP had respectively 11.4% and 10.9%
market share but then stalled, falling to a combined share of 12.4% by 2006.

Coke and Pepsi have tapped into the potential with their own variations as demand for fizzy,
sugary drinks slides.Coke was also moving into the energy drink space. In fact, an analyst
report noted at the time that Coca-Cola was restructuring itself in order to promote
innovation, setting up innovation centers to link creative thinkers and to improve time to
market for new products. Coca-Cola introduced its first energy drink, KMX, in 2001. Focused
on regions with many college students, such as Boston and New Orleans,79 the launch was
fairly low key. In fact, the can for KMX did not even reference Coca Cola. 80 KMX achieved a
7.2% market share by 2002 but then started to fade, and had almost disappeared by 2006.81

Red Bull is stampeding through gas stations and convenience stores across the USA. Sales of
the Austrian-owned energy drink in non-supermarket outlets have overtaken, in dollar terms,
America's two biggest diet-cola brands. Figures from the Beverage Digest newsletter show
that Red Bull generated $282 million (€240m; £161m) in sales in the first nine months of
2005. For the same period and in the same locations, Coca-Cola Company's Diet Coke and
PepsiCo's Diet Pepsi respectively notched sales of $260m and $220m.

By 1997, Red Bull was launching almost monthly into a new market. The same year, Red Bull
targeted California as its first state for the US markets, a country hooked on sugary drinks and
high energy life styles. Even though Red Bull was expensive – at $2 for two thirds the volume
of a Coke – US consumption of energy drinks would climb to 1.2 billion liters within a
decade, an almost 40% compound annual growth rate (Exhibit 6).
Exhibit 6: US Energy Drink/Shots Sales by Category, 2006–2008 (in millions)

Category 2006 2007 2008

Energy Drinks/Shots $5,91 $7,75 $8,53
9 4 0

Source: “Functional and Natural Ready-to-Drink Beverages in the U.S.,” Packaged Facts,
May 2011,
Red Bull entered the US markets at the right time as the major beverage producers had
started emphasizing higher-energy carbonated sodas. The fastest-growing brand in the mid-
1990s, and the leading “non-cola,” was Pepsi’s Mountain Dew. It contained 55mg
(milligrams) of caffeine per 12 fluid ounce can, about half of Red Bull’s 80mg of caffeine per
8.4 oz can. In 1997, Coke launched Surge, a bright-green citrusy soda to compete with
Mountain Dew. It was based on a Norwegian soda called Urge, and known internally as
MDK—” Mountain Dew Killer.” In the mid-1990s Pepsi also launched Josta, the first real
energy drink by a major soft drink producer, but it was discontinued in 1999 when it failed to
catch on among young consumers.

Red Bull followed the same marketing strategy in US that it did in western Europe, with
college-aged field marketing teams to distribute free samples while selling its drink to
bars and clubs frequented by that same demographic. In order to further grow its
nightlife popularity, Red Bull increased its sponsorship of large club events and opened a
month-long DJ school in New York City in 1998 called the Red Bull Music Academy. The
company also promoted a sense of scarcity and tried to create the perception of Red Bull as a
cool and elite product by limiting distribution at first to select venues. Only when demand
reached a certain level did Red Bull start to distribute to convenience stores and gas station.

Driven by its success in the US, Red Bull global sales doubled in 1999. By 2003 Red Bull had a
67% share of the US energy market and sold 500 million cans in that country alone. Red Bull
could reach 1 billion cans per year.73 The company claimed not to worry about competitors,
confident that it would maintain its dominant position through cleverer marketing. And this
was the alarm.

Industry Insights

The U.S. energy drinks market size was estimated at USD 14.30 billion in 2016.
Heightened health awareness and busy lifestyles coupled with increase in consumer
awareness regarding health benefits of the product have helped in keeping the demand
for energy drinks high in the U.S. Nearly 60.0% of male and 40% of female population in
the U.S. are regular consumers of these beverages and this trend is further estimated to
boost market growth during the forecast period.
 There has been rising concerns regarding these beverage consumption because of high
caffeine presence. Excess use has been associated with health risks, which include
sleeplessness, frequent urination, and abnormal heart rhythms. Such health risks
associated are expected to restrain the growth of the market over the forecast period.

Red Bull and Gatorade are among the most popular brands and hold prominent positions in
the market. Other popular brands include Rockstar, Monster, NOS, Amp, Full Throttle,
Arizona Energy, and Xyience. Trends have shown that major industry participants
implement similar strategies to survive the competition and maintain their market share.

In the U.S., obesity has been cited as a critical health issue in recent years. It may result in
diseases such as coronary heart problems, which may further lead to mortality. While
several developed nations have witnessed increase in obesity rates, the rates in the U.S. are
the highest. Every two out of three individuals are overweight in the U.S. and each year, the
country witnesses approximately 120,000 preventable deaths. Obesity problem and
growing awareness regarding its harmful effects are restricting the consumption of energy
drinks in the U.S.

Product positioning plays a critical role in sales of consumer goods. Various studies have
proved the relation between product placement in shelves and their seals. Display of goods
generates a cognitive attraction, which generates a positive perception about the product.
Thus, energy drink manufacturers have been emphasizing on product positioning to
augment their sales.

Product Type Insights

On the basis of product type, the market has been segmented into non-organic, organic, and
natural. The non-organic segment held over 70.0% of the overall market in 2016. Non-organic
energy drinks are artificial energy drinks, whose sales are higher due to their cost advantage
against natural and organic energy drinks.

However, performance enhancement from these drinks comes solely from caffeine and sugar
in tandem with additives for add-on effects. These products might contain high caffeine
quantity and their unregulated consumption can lead to common side effects such as
irritability, anxiety, and panic attacks.

The natural segment represented more than one fourth of the overall revenue in 2016.
Natural products are free of artificial flavors and preservatives/chemicals. Moreover, the
caffeine used is also natural caffeine from guarana, green tea, or green coffee with use of
sugar, which is almost in natural state. Flavors and sweeteners used are also taken from
juices.

Target Consumers Insights

In terms of target consumer, the U.S. energy drinks market has been segmented into adults,
teenagers & kids, and geriatric population. The adults segment held approximately half of the
revenue in 2016. Rising product consumption by working individuals in order to maintain a
healthy lifestyle is likely to be the primary growth stimulant for the segment.

Furthermore, increasing consciousness regarding diet and intake among working individuals
and sports athletes in order to maintain nutritional balance in their body is poised to
promote the demand for energy drinks among adults in the U.S. over the forecast period.

Teenagers and kids also command a sizeable share in the market owing to rising millennial
preference for unconventional drinks with unique taste and flavor. This, in turn, has created
attractive opportunities for pubs and bars to sell innovative products.

Distribution Channel Insights

By distribution channel, the market has been divided into on-trade and off-trade & direct
selling. The on-trade segment held more than 65.0% of the overall market revenue in 2016.
The segment includes bars, coffee shops, hotels, and restaurants. The product distribution in
the country through on-trade channels is anticipated to register a higher growth over the
coming years.
The off-trade sector is estimated to witness sluggish growth over the forecast period owing
to shifting consumer preference towards direct selling and stringent norms regarding
collaborations with super markets and other retail outlets. The segment is predominantly
characterized by free in-store sampling and bulk discounts requiring additional investments
for advertisements and promotions.

U.S. Energy Drinks Market Share Insights

Industry is exceptionally aggressive with organizations undertaking a few activities including

regular mergers, capital extension, and strategic alliances. Established players are
concentrating on expanding their share in the global arena alongside productivity through
technological innovation. Organizations are concentrating on ideal business development by
actualizing different development techniques. They are framing strategic alliances with
strong players of specific province and sharing innovative expertise for industrial sectors.

Companies are moving towards organic raw materials, which include components such as
extracts from guarana, coffee seeds, pomegranate juice, and ginseng. There are also
companies that have switched to more organic forms of sugars such as fructose and sucrose
to avoid excessive calories present in sugar and make it a much healthier option.

Companies are acquiring and merging with other players in the market to acquire a larger
market share. This helps them to increase their client base as well as product portfolio. It also
helps them penetrate in different regions to increase their operations.

Amway acquired XS energy brand that was co-founded by former Amway business owner.
The acquisition was made to strengthen opportunities for aspiring business people and for
attracting the youth segment. Monster Energy acquired brands such as Burn, NOS, Full
throttle, Mutant, Mother, and Relentless. This has helped the company to become the
second largest player in the market. Some of the key companies present in the market are
Red Bull GmbH, Monster Energy, and Rockstar.

Look out Red Bull. Monster is flying

Hansen Natural Corporation, from Corona, California, had been selling fruit drinks and sodas
with natural ingredients when it saw an opportunity in a very different part of the market. In
2002—with Red Bull’s US sales at around 300 million cans—it launched Monster Energy,
with the slogan “Unleash the Beast.” The Monster Energy can was nearly twice the size of a
Red Bull can, at the same price. It was black – an unusual color for a food product – garishly
slashed by a neon green claw mark, and clearly listed its ingredients on the collar of the can:
taurine, ginseng, L-Carnitine, and B-vitamins (Exhibit 7). The drink, the company claimed,
“pack[ed] a vicious punch.”

Exhibit 7: Red Bull, Monster, and Rockstar Product Comparison, 2005–2006

Company Red Bull Monster Rockstar

Price $2.00 $2.00 $2.00

Size 8.3 fl oz 16 fl oz 16 fl oz
Ingredients caffeine, caffeine, carnitine, caffeine, taurine,
glucuronolactone, glucuronolactone, guarana, ginseng,
inositol, taurine guarana, inositol, ginkgo biloba, milk
panax ginseng, thistle
taurine
Calories 110 200 280
Slogan “Red Bull Gives You “Unleash the Beast” “Party Like a Rockstar”
Wings”

Monster’s marketing was both similar to, and different from, Red Bull’s. Like Red Bull, it had
both sport sponsorships and field marketing teams—with Monster Girls—giving away free
product samples. But whereas Red Bull spent a third of its revenue on marketing, often
creating its own events and investing heavily in traditional advertising, Monster spent only
about 8% of revenue on marketing, with almost no traditional advertising and focused
predominantly on sponsoring individual athletes. Moreover, whereas Red Bull liked to
associate with extreme and niche sports, Monster focused more on rebellious athletes.
Mark Hall, President of Monster Beverage Company, commented on Monster’s positioning
relative to Red Bull. “I viewed Red Bull as being a white-collar, yuppie drink.” he
commented, “I wanted to be an aggressive, blue-collar drink [like] the guy with the
tattoos.”90
Monster quickly expanded its energy drinks product line. In 2004, it introduced a line of
carbonated energy drinks (under the Lost brand name) and carbonated energy juice (Rumba),
meant as a morning substitute for coffee and orange juice. In 2005, it launched the Joker Mad
Energy line, followed in 2008 by the Monster Hitman Energy Shooter (a line of 3-ounce
energy shots designed to compete with energy drink brand 5-Hour Energy).91 Beyond
conventional energy products, the company also sold, among others, Java Monster Coffee
and Monster Rehab Tea.
Today Monster is beating Red Bull at home and aiming to cut its rival's lead overseas. A lineup of
new products and NASCAR, BMX, UFC and MMA sponsorships have contributed to Monster's
boom. Monster has become the top energy drink maker in the United States, controlling 43% of
the market, according to Morgan Stanley. Red Bull trails slightly. Rockstar is in third place. Energy
is Monster Beverage Co.'s (MNST) biggest sales driver -- Java, Rehab, Ultra, Hydro and Mutant
are several of the top-selling Monster brands -- but the company also offers tea, juice, water,
coffee and zero-calorie energy drinks. It's planning to expand coffee and juice flavors in 2018.
While soda sales have steadily declined as more Americans put down sugary drinks in favor of
healthier choices, energy products are bucking the trend. Retail sales in the United States have
spiked 25% since 2012 to $11.7 billion last year, according to Euromonitor.
Analysts say consumers are willing to buy highly-caffeinated drinks, which are pricier than sodas,
because they provide a pick-me-up. Monster also offers a better bang for energy drinkers' buck,
noted Stifel analyst Mark Astrachan. A 16 oz can of Monster is the same price as a 8.4 oz can of
Red Bull. Energy is Monster Beverage Co.'s (MNST) biggest sales driver -- Java, Rehab, Ultra,
Hydro and Mutant are several of the top-selling Monster brands -- but the company also offers
tea, juice, water, coffee and zero-calorie energy drinks. It's planning to expand coffee and juice
flavors in 2018. While soda sales have steadily declined as more Americans put down sugary
drinks in favor of healthier choices, energy products are bucking the trend. Retail sales in the
United States have spiked 25% since 2012 to $11.7 billion last year, according to Euromonitor.
Analysts say consumers are willing to buy highly-caffeinated drinks, which are pricier than sodas,
because they provide a pick-me-up. Monster also offers a better bang for energy drinkers' buck,
noted Stifel analyst Mark Astrachan. A 16 oz can of Monster is the same price as a 8.4 oz can of
Red Bull.

Can Red Bull Fights Back?

As of today, Red Bull had spawned over 200 competitors. The world over, the energy drink
market attracted a lot of attention, and not simply with the major beverage companies, but
even the smaller ones like the gym supplement companies. Most of them attempted to ride
the coattails of Red Bull’s popularity by introducing drinks such as Blue Ox, Red Devil, and
Red Stallion, whose names evoked the industry leader.
In the face of Coke and Pepsi’s aggressive moves, Monster’s growth, and the mass of
competitors vying for some share, Mateschitz had to decide how to respond.
 Respond to the following questions:
1. Keeping in mind the last few sessions of the class connect the inputs from the
case to the marketing grids and lessons discussed in the class.
2. Research extensively beyond the case to design a SWOT and PESTLE analysis for
Red Bull for both Indian and the US markets.
3. Should Red Bull defend its market share more aggressively, for example by
reducing price, giving free samples in clubs and gyms or should it trust its
advertising and promotions?
4. Can the Indian Energy drink Glucon D (from Zydus Wellness) be touted as the
Indian Red Bull? If yes, make an elaborative marketing plan suggesting the
strategies through the various marketing grids studied in the class

References
 https://www.grandviewresearch.com/industry-analysis/us-energy-drinks-market
 https://energydrink-us.redbull.com/en
 https://firstwefeast.com/drink/2015/08/red-bull-trivia