OPPapers.com

Marketing Plan

JULY 2004

LBS-CS-04-006

The Anti-Brand Brand
In 2004, Red Bull found itself at a crossroad, challenged with defending its 70% worldwide market share of the €2.5 billion energy drinks category that it had pioneered. The company was facing a maturing market and an onslaught of competitive brands, some of them promoted by beverage industry giants such as Coca-Cola and Pepsi, others as private labels by mass retailers such as Asda (part of Wal-Mart). Was Red Bull outgrowing its anti-establishment status? Did it need to transition to a more traditional marketing approach? As a mature brand, was it time to use its brand muscle to drive distribution? Should it be more innovative in its product development? Or, would these activities fundamentally destroy Red Bull’s anti-brand mystique?

Company Background While travelling in Asia for Blendax toothpastes (now part of Procter & Gamble) in 1982, Austrian businessman Dietrich Mateschitz (pictured in Figure 1) came across Krating Daeng which means “Red Bull” in Thai. This was a cheap tonic sold in a brown bottle by TC Pharmaceuticals and favoured by Thai factory workers to remain alert during their shifts. Mateschitz approached the owner of TC Pharmaceuticals, Chaleo Yoovidhya, and together with Yoovidhya’s son Chalerm they agreed to set up a company. Red Bull GmbH was founded in Austria in 1984 and was credited with creating the energy drinks category. In 2004, the worldwide energy drinks category was worth €2.5 billion and Red Bull commanded a 70% market share. Red Bull was being sold in over 100 markets and was the market leader in the USA as well as in 12 of the 13 West European markets where it was present.1

This case was prepared by Nirmalya Kumar, Sophie Linguri and Nader Tavassoli of London Business School as a basis for classroom discussion rather than to illustrate either effective or ineffective handling of a management situation.
London Business School Regents Park London NW1 4SA United Kingdom +44...