Red Bull - Red Bull Target Market

Red Bull is an energy drink sold by Austrian company Red Bull GmbH, created in 1987. Red Bull has the highest market share of any energy drink in the world, with 5.387 billion cans sold in 2013.

Austrian entrepreneur Dietrich Mateschitz was inspired by an existing energy drink named Krating Daeng, which was first introduced and sold in Thailand by Chaleo Yoovidhya. He took this idea, modified the ingredients to suit the tastes of Westerners, and, in partnership with Chaleo, founded Red Bull GmbH in 1987 in Chakkapong, Thailand. In Thai, daeng means red, and krating is the large bovine called "gaur" in English. Red Bull is sold in a tall and slim blue-silver can, while Krating Daeng is in a shorter gold can. The two are different products, produced separately.

The Red Bull company slogan was "Red Bull gives you wings", prior to a class action lawsuit related to the benefits of the drink in 2014. The product is marketed through advertising, events (Red Bull Cliff Diving World Series, Red Bull Air Race, Red Bull Crashed Ice), sports team ownerships (Flying Bulls [actually owned by Dietrich Mateschitz], RB Leipzig, FC Red Bull Salzburg, Red Bull Brasil, New York Red Bulls, Red Bull Racing, Scuderia Toro Rosso), celebrity endorsements, and music, through its record label Red Bull Records.

Energy drinks have been associated with health risks, such as masking the effects of intoxication when consumed with alcohol, and excessive or repeated consumption can lead to cardiac and psychiatric conditions. However, the European Food Safety Authority (EFSA) concluded that an adequate consumption of Red Bull and other popular energy drinks is safe and that the amount of caffeine in standard Red Bull cans is unlikely to interact adversely with other typical constituents of energy drinks or with alcohol. Energy drinks have the effects that caffeine and sugar provide, but there is no distinct evidence that the wide variety of other ingredients has any effect.

History

In 1976, Chaleo Yoovidhya introduced a drink called Krating Daeng in Thailand, which means "red gaur" in English. It was popular among Thai truck drivers and labourers. While working for German manufacturer Blendax (later acquired by Procter & Gamble) in 1982, Dietrich Mateschitz traveled to Thailand and met Chaleo, owner of T.C. Pharmaceutical. During his visit, Mateschitz discovered that Krating Daeng helped cure his jet lag. In 1984, Mateschitz co-founded Red Bull GmbH with Yoovidhya and turned it into an international brand. Each partner invested US$500,000 of savings to found the company. Yoovidhya and Mateschitz each held a 49 percent share of the new company. They gave the remaining two percent to Yoovidhya's son, Chalerm, but it was agreed that Mateschitz would run the company. The product was launched in Austria in 1987.

In Thailand, energy drinks are most popular with blue-collar workers. Red Bull repositioned the drink as a trendy, upscale drink, first introducing it at Austrian ski resorts. Pricing was a key differentiator, with Red Bull positioned as a premium drink and Krating Daeng as a lower cost item. In many countries both drinks are available, dominating each end of the price spectrum.

In 1992, the product expanded to international markets: Hungary and Slovenia. It entered the United States via California in 1997 and the Middle East in 2000. In 2008, Forbes magazine listed both Chaleo and Mateschitz as the 250th richest people in the world with an estimated net worth of US$4 billion.

Red Bull GmbH is headquartered in Fuschl am See, an Austrian village of about 1,500 inhabitants near Salzburg. The company is 51 percent controlled by the Yoovidhya family who, for technical reasons, own the trademark in Europe and the US.

In 1995, Krating Daeng authorized its drink marked as Red Bulls sold in China. The Austrian Red Bull (carbonated) has been exported to China since 2014. It has created confusion since both drink use the same brand name, in English and in Chinese.

In Southeast Asia, Red Bull and Krating Daeng are often confused for one another as Krating Daeng uses the Red Bull name in their packaging. They are two separate entities marketing for different markets. The main differences are that Red Bull is in a blue silver tall can packaging while the Thailand Red Bull or Krating Daeng is in a smaller gold packaging. They differ in terms of tastes as well. Red Bull has less sugar and is carbonated. The flavouring used for Red Bull is still produced in Bangkok and exported worldwide.

Ingredients

Red Bull contains caffeine, taurine, B vitamins (B3, B5, B6, B12), sucrose, and glucose. To produce Red Bull Sugarfree, sugars sucrose and glucose have been replaced by the sweeteners acesulfame K and aspartame/sucralose.

Health effects

Claims about the drink's effects and performance have been challenged on various occasions, with the UK's Advertising Standards Authority imposing advertising restrictions in 2001 in response to complaints recorded as early as 1997.

The latest dietary guidelines from the U.S. suggest that moderate caffeine intake may not only be safe, but also healthy. Studies from the U.S. Department of Agriculture and the U.S. Department of Health and Human Services show that daily consumption of the amount of caffeine contained in three to five cups of coffee is not only safe, but also appears to reduce the risk of Type 2 diabetes and cardiovascular disease in adults. Caffeine may even protect against Parkinson's disease, the evidence suggests.

Energy drinks have the effects that caffeine and sugar provide, but experts still argue about the possible effects of the other ingredients. Most of the effects of energy drinks on cognitive performance, such as increased attention and reaction speed, are primarily due to the presence of caffeine. Still there is evidence that energy drinks can increase mental and athletic performance. Performance of prolonged driving, for example is increased significantly after consumption of Red Bull. Other tests for physical performance showed results such as increased endurance and power. Red Bull energy drink significantly increased upper body muscle endurance during repeated Wingate tests in young healthy adults. Excessive or repeated consumption of energy drinks can lead to cardiac and psychiatric conditions.

The European Food Safety Authority (EFSA) concluded that exposure to taurine and glucuronolactone at the levels presently used in energy drinks is no safety concern. In a separate analysis, they also concluded that there is insufficient evidence to support a number of commercial health claims about taurine. A review published in 2008 found no documented reports of negative or positive health effects associated with the amount of taurine used in energy drinks, including Red Bull. The review also states that though the caffeine and sugar levels in the energy drink are comparable to those present in coffee and fruit juice respectively, these levels have been shown to cause adverse health effects.

In its scientific opinion on the safety of caffeine of 2015 the EFSA concludes, that "Consumption of other constituents of energy drinks at concentrations commonly present in such beverages would not affect the safety of single doses of caffeine up to 200 mg." Also the consumption of alcohol, leading to a blood alcohol content of about 0.08%, would, according to the EFSA, not affect the safety of single doses of caffeine up to 200 mg. Up to these levels of intake, caffeine is unlikely to mask the subjective perception of alcohol intoxication. Habitual use of caffeine up to 400 mg per day does not.

According to SAMHSA, the number of people hospitalized due to energy drinks doubled between 2007 and 2014 in the US.

Caffeine content

The caffeine content of a single can of Red Bull is 80 mg/250 ml (32 mg/100 ml). This is about the same as one cup of coffee, or slightly less depending on the brewing method. The actual caffeine level in Red Bull can vary depending on country, as some countries have legal restrictions on how much caffeine is allowed in drinks. As is the case with other caffeinated beverages, Red Bull drinkers may experience adverse effects as a result of overuse. Excessive consumption may induce mild to moderate euphoria primarily caused by stimulant properties of caffeine and may also induce agitation, anxiety, irritability and insomnia.

The general population of healthy adults is not at risk for potential adverse effects from caffeine if they limit their consumption to 400 mg per day, which is the equivalent of 5 standard cans, with one can being 250ml in volume. Consumption of a single energy drink will not lead to excessive caffeine intake. Adverse effects associated with caffeine consumption in amounts greater than 400 mg include nervousness, irritability, sleeplessness, increased urination, abnormal heart rhythms (arrhythmia), and dyspepsia. Consumption also has been known to cause pupil dilation when taken with certain antidepressants or SSRIs. Caffeine dosage is not required to be on the product label for food in the United States, unlike drugs, but some advocates are urging the FDA to change this practice.

Market approval and legal status

Authorities in France, Denmark, and Norway initially kept Red Bull from being sold domestically. However, as of 2014, it is on sale in all 28 member states of the European Union and in more than 167 countries around the world.

The French food safety agency was concerned about taurine. A Red Bull drink that did not contain taurine was introduced. The French refusal of market approval was challenged by the European Commission, and partially upheld by the European Court of Justice in 2004. The French food safety agency relented in 2008, because it was unable to prove a definite health risk, taurine-related or not.

In 2012, the Kuwaiti Ministry of Commerce banned Red Bull for people under 16 after it had allegedly caused heart attacks for a 16-year-old and a 21-year-old national squash team player.

Litigation

In 2013, Red Bull told the Redwell Brewery, a Norfolk micro brewery to change its name or face legal action, because it sounded too similar to Red Bull. The eight-man brewery in Norwich was told its name could "confuse" customers and "tarnish" its trademark. The two companies reached a settlement permitting Redwell to continue using its name.

In 2014, Red Bull faced a US$13 million settlement addressing two consumer class action lawsuits in the United States District Court for the Southern District of New York. The listed plaintiffs were Benjamin Careathers, David Wolf, and Miguel Almarez who sued the company for Red Bull's marketing and labeling, claiming that the company violated "express warranty and unjust enrichment" since their products were first launched. The court hearing took place the morning of 1 May 2015 in an attempt to determine approval for the settlement. Customers that submitted claims then have the opportunity to receive a US$10 cash reimbursement or product option of US$15 in Red Bull products within 150 days of the approved appeals.

Advertising

Red Bull's slogan was "it gives you wings" until they were hit with a $13 million class-action lawsuit in late 2014. Red Bull's international marketing campaign targets young men mostly with extreme sports. These range from mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, rowing, wakeboarding, cliff-diving, parkour, surfing, skating, freestyle motocross, rallycross, Formula 1 racing, NASCAR racing, to breakdancing. Red Bull uses music and videogames, and has enlisted celebrities, such as Eminem (sponsoring the Red Bull "EmSee Battle Rap championships"). It hosts events like art shows and the "Red Bull Flugtag" (German for "flight day" or "flying day"). Red Bull owns association football teams, with clubs in Austria, Germany, the United States and Brazil featuring the Red Bull trademark in their names. By associating the drink's image with these activities, the company seeks to promote a "cool" public image and raise brand power. The energy drink has created a market for over 150 related types of products.

In the PlayStation 3's social gaming platform, PlayStation Home, Red Bull developed its own in-game island, specifically advertising its energy drink and the Red Bull Air Race event (for which the space is named) released in January 2009. In late November 2009, Red Bull produced two new spaces, the Red Bull Illume space, and the Red Bull Beach space featuring the Red Bull Flugtag, both released on the same day. In January 2012, Red Bull released its first personal space called the "Red Bull House of Skate" featuring an indoor skate park.

On the Apple App store Red Bull also has a few apps which include: RedBull.com, Red Bull TV, The Red Bulletin, RBMA Radio, Red Bull iFunk, Wings For Life- Selfie Run. As well as some games on the app store which are: Bike Unchained, Red Bull Kart Fighter 3, Red Bull Air Race The Game, Red Bull Racers.

In 2010, the company enlisted Adrian Newey to design a prototype racing car, the Red Bull X2010, for the videogame Gran Turismo 5.

Red Bull House of Art

The Red Bull House of Art is an art fellowship program that was launched by Red Bull. The program is held in multiple cities, most notably the Red Bull House of Art programs in Detroit, Michigan and São Paulo, Brazil, and the program typically consists of a three-month period during which time six to eight participants will create new artwork with the intent to display it in a final exhibition. During the fellowship the artists receive unlimited access to the galleries and a stipend for art supplies.

The program has received criticism as being an "elaborate advertising scheme", as some of the artwork has been used in Red Bull advertising campaigns.

Sports sponsorships and acquisitions

• RB Leipzig: a football club currently playing in the German 1. Bundesliga
• New York Red Bulls (officially Red Bull New York): a soccer franchise competing in Major League Soccer of the United States
• Red Bull Racingâ€"a Formula One team based in Milton Keynes, England, World Constructor's Championship winner of 2010, 2011, 2012 and 2013, and produced the car for the 2010, 2011, 2012 and 2013 F1 World Champion Sebastian Vettel.
• Red Bull Sailing Team: an Extreme Sailing Series racing team.
• Scuderia Toro Rosso (Italian translation of Team Red Bull): Another Formula One team based in Faenza, Italy.
• Team Red Bull: a Toyota racing team competing in the U.S.-based stock car racing competition NASCAR Red Bull Racing Team competed in NASCAR beginning in 2007. The team ceased operations after the Sprint Cup Series' 2011 season.
• FC Red Bull Salzburg: an Austrian football club based in Salzburg and competing in the Austrian Bundesliga
• EC Red Bull Salzburg: a member of the Austrian Hockey League based in Salzburg, Austria
• EHC Red Bull München: a member of the Deutsche Eishockey Liga based in Munich, Germany
• Red Bull Brasil: a football club currently playing in the Brazilian Campeonato Paulista based in Campinas, Brazil
• Triple Eight Race Engineering â€" since 2013, Red Bull has sponsored the V8 Supercars team.
• Red Bull Racing Brasil, a Stock Car Brasil team, since 2007.
• Red Bull Ghana: was a Ghanaian professional football club located in Sogakope that played in the Poly Tank Division One League.
• Å koda Motorsport rally team

Sponsorships

• Abt Sportsline
• Arrows F1 team from 2001 to 2002
• Audi Sport for the A4 DTM
• Batalla de los Gallos
• Cacá Bueno's speed record Vectra
• Carlin Motorsport Dallara-Renault
• Citroën World Rally Team (2008-2012)
• EKS RX
• Hansen Motorsport rallycross team
• Hyundai Genesis Coupe Pikes Peak edition
• Hyundai Veloster rallycross car
• Iveco Dakar rally trucks
• JMB Racing Maserati MC12 GT
• KTM road, MXGP and Dakar rally bikes
• Red Bull Ajo Motorsport
• Red Bull Youth America´s Cup
• Repsol Honda Team
• Oracle Team USA
• Olsbergs MSE Ford rallycross team
• Peugeot 208 T16
• Peugeot 2008 DKR (2015)
• Sauber F1 team (1995â€"2004)
• SEAT Sport WTCC team
• Å koda Fabia S2000
• Team SoloMid
• Volkswagen Passat DARPA Grand Challenge edition
• Andrew Dickson, pro BMX rider
• Volkswagen Polo R WRC
• Volkswagen Race Touareg Dakar edition
• Volkswagen V10 TDI Touaregs Pikes Peak edition

Endorsements

In 2009, Red Bull added mainstream sport athletes to its roster of endorsements, which also includes persons involved in non-sporting activities.

• Reggie Bush, US NFL athlete announced at the 2009 Super Bowl.
• Dani Pedrosa, Marc Márquez, and John Reynolds.
• Red Bull Junior Team, a program which sponsors young drivers competing in single seater racing. Since 2001 many young drivers developed careers in professional motorsport, with 13 participants having competed in Formula One, including quadruple F1 world champion Sebastian Vettel.
• Skijumpers Gregor Schlierenzauer, Thomas Morgenstern, Adam MaÅ‚ysz, and Andreas Goldberger, snowboarders Mark McMorris, Torah Bright and Nathan Johnstone, and skiers Kaya Turski, Lindsey Vonn, Axel Lund Svindal and Alexis Pinturault.
• Dion Phaneuf NHL defenseman, currently with the Ottawa Senators.
• Young professional golfer Rickie Fowler.
• Racing driver Andrew Jordan.
• Drift racing driver "Mad" Mike Whiddett.
• Professional chess player Hikaru Nakamura.
• Super Smash Bros. Melee player William "Leffen" Hjelte
• Street Fighter players Daigo Umehara, Masato "Bonchan" Takahashi, Darryl "Snake Eyez" Lewis and Olivier "Luffy" Hay.

Events

• Red Bull sports events
• Red Bull Battle Grounds: An eSports competition in popular video games Dota 2 and StarCraft 2
• Red Bull Stratos
• Red Bull Global Rallycross Championship
• Red Bull Cliff Diving World Series
• Red Bull Drifting World Championship
• Red Bull Rampage
• Red Bull Road Rage
• Red Bull King of the Rock Tournament
• Red Bull Romaniacs Hard Enduro Rallye
• Red Bull Crashed Ice
• Red Bull X-Fighters
• Red Bull X-Alps
• Red Bull Air Race World Championship
• Red Bull Flugtag
• Red Bull Foxhunt
• Red Bull Cape Fear
• Red Bull Paperwings
• Red Bull Training Grounds
• Red Bull Art of Motion
• Red Bull BC One
• Red Bull Cold Rush
• Red Bull Dolomitenmann - A 4-man relay competition including trail running, paragliding, kayaking, mountainbiking
• Red Bull Elements - A 4-man relay competition including rowing, trail running, paragliding, mountainbiking
• Red Bull MotoGP Rookies Cup
• Indianapolis motorcycle Grand Prix
• Motorcycle Grand Prix of the Americas
• Argentine motorcycle Grand Prix (2014-2015)
• Spanish motorcycle Grand Prix
• Red Bull Storm Chase - A worldwide windsurfing competition in storm conditions with wind speeds of at least force ten
• Red Bull Supernatural - A "backcountry boarding competition designed to challenge, then crown the best all-around snowboarder on the planet."
• Red Bull Soapbox Race
• Red Bull Unleashed - A surfing event at Surf Snowdonia, north Wales
• Red Bull World Bridge Series
• Red Bull Drift Shifters - Drifting event held on a pinball inspired street course in Auckland, New Zealand
• Red Bull Music Academy

Locations

• Red Bull Ring, a motorsport circuit in Spielberg, Styria, Austria.
• Red Bull Arena (Leipzig), home stadium of German football club RB Leipzig.
• Red Bull Arena (New Jersey), home stadium of the American soccer club New York Red Bulls.
• Red Bull Arena (Salzburg), home stadium of Austrian football club FC Red Bull Salzburg.
• Hangar-7 (Salzburg), a multifunctional building with a collection of historical airplanes.
• Red Bull bridge, a recurring distinctly branded footbridge at race events such as the World Enduro Championship and Rally Deutschland.

See also

• Felix Baumgartnerâ€"stratospheric parachute jump 2012

References

External links

• Official website
• Krating Daeng (Thai Red Bull): Official website
• Red Bull Energy Drink
• Red Bull's Total Marketingâ€"slideshow by Der Spiegel