REDBULL Success Story: From Truck Driver Drink To Market Leader
Early Days of Redbull
Within 30 years of establishment Redbull currently enjoys highest market share in energy drink with 6.302 billion cans sold in the year 2017. Aimed to keep truck driver and factory worker awaked for long shift, Krating Daeng ,has come all the way what we know today as Red Bull.
It was during 1976 Chaleo Yoovidhya founder of TC Pharmaceuticals in Thailand introduced an energy drink called Krating Daeng which means “red gaur” in English. The energy drink was sold in bottles bearing an image of two red bulls on the label.
Soon this energy became popular among truck driver and factory workers as it allowed overcoming fatigue and gave instant energy for double shift. It was success among working class consumer.
Sponsorship of boxing matches and sports events helped to grow its brand presence in local market. However it was during 1980s Redbull was exposed to global market.
The Turning Point of Redbull
While on holiday in Thailand, Austrian entrepreneur Dietrich Mateschitz found an energy drink Krating Daeng which actually cured his hangover and jet lag.
Seeing this as an opportunity he met the founders of Krating Daeng and offerd them 49 percent share in the company if they would allow taking modified version of the energy drink globally. They accepted it and Austrian company called Redbull GmbH was founded in 1987.
The ingredients were modified to suit local taste, and the first Red Bull canned drinks was on market in Austria in 1987. The sweetness of original Thai beverage was reduced slightly and carbonation was added.
The ingredients in a can of Red Bull also vary slightly from one country to the next, based on the food-safety laws of that country.
Expansion of Redbull
In 1992 its has started to export Hungary and Slovenia. Red Bull was introduced in Germany and United Kingdom in 1994.
Despite a slow start the company kept moving and expanded to US in 1997 then became a huge success and was able to enjoy 75 % market share of American energy drink.
The company promoted with the slogan “Red Bull gives you wings” . Red Bull has very successfully used an advertising strategy with an emphasis on “buzz” or “viral” marketing and word-of-mouth.
In the process Red Bull also gained some criticism related to its marketing tactics using extreme sports, and its health risks.
However, the European Food Safety Authority (EFSA) and similar agencies in other parts of the world have ruled that the levels of caffeine, taurine and glucuronolactone used in Red Bull and competing energy drinks are safe.
The company established itself in racing circuits, football clubs, and in a number of extreme sports. They sponsored events and bought teams and franchises. Red Bull Cliff Diving Championships, Red Bull Air Race, Red Bull Drifting Championships and the Red Bull Soap Box race.
Did you know
Krating Daeng later modified as Redbull Initially became popular among truck driver and factory workers as it allowed overcoming fatigue and gave instant energy for double shift.
Ingredients in a can of Red Bull also vary slightly from one country to the next, based on the food-safety laws of that country.