Austria is a small country in the heart of Europe, but the alpine republic has a model company that impressively demonstrates strong brand marketing worldwide. We are talking about the beverage manufacturer Red Bull , whose rise began in the 1980s, but today the group is a huge corporation, which owes its success almost exclusively to its marketing.
A nationwide investigation recently showed that Red Bull’s brand is worth just as much as the following nine companies in the Austrian Top 10 Business list. That is impressive; if you keep in mind that these companies are also large corporations, such as the games manufacturer Novomatic or the jewelry manufacturer Swarovski.
If you convert the Red Bull brand value to the beverage cans sold, the result is astonishing as well. At a price of around 1.49 Euros per can, consumers now pay 1.20 Euros brand premium. That makes the group a world leader. Another figure from the studies proves that it is essential to maintain the value of your brand. On average, Red Bull brand value makes up around 40 percent of the company value. Any marketing specialists should learn as Red Bull has been showing how to do this correctly for decades.
Focus on Marketing
Dietrich Mateschitz founded the beverage manufacturer with his partner in the mid-1980s. Today the company is one of the most famous brands in the world. Innovative marketing with a focus on entrepreneurial efforts was adopted from the beginning. It meant that the headquarters in Austria were almost exclusively concerned with capturing markets, while Red Bull production was outsourced to another beverage manufacturer at an early stage. TV commercials also differed significantly from the competition right from the start. Red Bull supported extreme athletes and thus promoted its image through that clientele. For example, nobody will ever forget Felix Baumgartner’s jump out of space. The athlete achieved worldwide fame in return and Red Bull had caused a sensation with this project.
In the meantime, the group is at the forefront in numerous sports. That applies to football as well as Formula 1. Red Bull’s standards are always the same. The group wants to reach the top and everyone works towards this goal. So far, the investments have mostly paid off since Red Bull were offered a takeover from Coca Cola, which they rejected, just a few years ago. Instead, they chose to continue to grow by themselves.
Today, Red Bull has become an indispensable part of popular culture. For years, an agency took care of bringing the drink into Hollywood films. Over the years, an idea became a myth. Today, the market automatically connects the beverage with top performance in all areas. Red Bull is the world market leader in energy drinks. 7.9 billion cans sold per year achieved an annual turnover of 6.3 billion Euros in 2020. When the drink hit the market decades ago, big corporations were still laughing. Nobody laughs anymore. Their success has been going on for decades and there is no end in sight.