Red Bull
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Red Bull & V
Mr. Joshua Thompson
International Management
Dr. Renee Scapparone
December 7, 2010
Red Bull is a unique product in the newly flourished industry commonly referred to as the energy drinks market. In 2006, the global beverage market grew by 2.8 percent, reaching a value of $1,056.3 billion, with volume growing 3.1 percent to a volume of 535.3 billion liters (Global beverages, 2007, p. 3). One of the fastest growing segments is a fairly recent trend in the industry, as previously mentioned - energy drinks. Understanding that to ignore fledgling trends is at their own peril, beverage manufacturers are flocking to this unique market segment in hopes of capturing valuable market share. Two of companies vying for market domination are: Red Bull and V, with one currently far more successful than the other. This paper will critically evaluate and compare the performance of Red Bull and V. It will describe and contrast how each has built brand equity, and will provide a strategy for the less successful brand to improve their performance in the marketplace, both locally and internationally.
Red Bull was initially created by Dietrich Mateschitz; Dietrich originally came up with the idea for his energy beverage in 1984, after traveling to Asia and discovering the popularity of energy drinks in some areas (A new market, 2007). Mateschitz brought several samples back to Austria and after three long years developed his own version involving both medical research and scientific testing (Brunnen, 2007).
It was “this period (that) saw the birth of the product positioning 'Red Bull vitalizes body and mind' and the unique slogan 'Red Bull gives you wiings!'” (A new market, 2007). First launched in Austria, in 1992, it was then quickly rolled out throughout most of Europe. This was then followed by North and South America, Africa counting global sales as well as hometown sales in Australia. By 2002, more than one billion cans were being...
Mr. Joshua Thompson
International Management
Dr. Renee Scapparone
December 7, 2010
Red Bull is a unique product in the newly flourished industry commonly referred to as the energy drinks market. In 2006, the global beverage market grew by 2.8 percent, reaching a value of $1,056.3 billion, with volume growing 3.1 percent to a volume of 535.3 billion liters (Global beverages, 2007, p. 3). One of the fastest growing segments is a fairly recent trend in the industry, as previously mentioned - energy drinks. Understanding that to ignore fledgling trends is at their own peril, beverage manufacturers are flocking to this unique market segment in hopes of capturing valuable market share. Two of companies vying for market domination are: Red Bull and V, with one currently far more successful than the other. This paper will critically evaluate and compare the performance of Red Bull and V. It will describe and contrast how each has built brand equity, and will provide a strategy for the less successful brand to improve their performance in the marketplace, both locally and internationally.
Red Bull was initially created by Dietrich Mateschitz; Dietrich originally came up with the idea for his energy beverage in 1984, after traveling to Asia and discovering the popularity of energy drinks in some areas (A new market, 2007). Mateschitz brought several samples back to Austria and after three long years developed his own version involving both medical research and scientific testing (Brunnen, 2007).
It was “this period (that) saw the birth of the product positioning 'Red Bull vitalizes body and mind' and the unique slogan 'Red Bull gives you wiings!'” (A new market, 2007). First launched in Austria, in 1992, it was then quickly rolled out throughout most of Europe. This was then followed by North and South America, Africa counting global sales as well as hometown sales in Australia. By 2002, more than one billion cans were being...