¶ … Red Bull's greatest strengths and risks as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drink category and gain market share?
Red Bull's greatest strengths are its originality, "rebellious" image, and its linking of its brand name with extreme sports and the "alternative" youth movement. Its originality is a big factor in its success as it has been seen as something different from the major corporate sponsors of bigger events like MLB or NFL (Pepsi or Coke). It has a unique take on the beverage industry (since it hails from Europe, it traditionally serves its consumers in 250 ml silver cans as opposed to the more American size 12 oz can). Its slim, sleek packaging also makes it look sophisticated at the same time that it appeals to a market that is excited by pushing life to the limits. So it is original in the sense that it does not look or taste like the average soda: it is not -- it is something new, refreshing, energizing, and, most importantly, a little goes a long way.
2. Should Red Bull do more traditional advertising? Why or why not?
Red Bull has tapped into a non-traditional marketing campaign that has allowed it to flourish in over 100 countries: this campaign appeals to the youth movement towards anti-corporatism, anti-mainstream thinking. Thus, Red Bull has been at the fore of promoting extreme sports, music festivals, making itself known to millions of young consumers looking for a brand that is original, alternative, hip, and "into" the things they love. Plus, the fact that the beverage is more like an "upper" than a soda gives it an extra kick of appeal. Moreover, this strategy has been highly effective, so there is no reason to insist that Red Bull move towards traditional advertising. In fact, moving towards traditional advertising might kill the core market share that it has and cause it to lose its base, which finds Red Bull appealing precisely because it is non-traditional and non-mainstream. Red Bull has managed to gain tremendous traction by being "different" so for it to now abandon its base in an attempt to gain more or at least maintain its market share would be to undermine the strategy that allowed it to get where it is today. Red Bull should be careful not to alienate its consumer base by trying to appeal to and attract more traditional, mainstream clientele.
However, if traditional advertising can be executed in a way that does not offend the Generation Y base that is Red Bull's -- but can promote its product in a genuinely alternative and hip way that does not betray the company as a mainstream, corporatist entity -- then traditional marketing to a limited extent may be acceptable.
3. Discuss the effectiveness of Red Bull's sponsorships, for example, Bull Stratos. Is this a good use of Red Bull's marketing?
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