Red Bull Gives You Wiiiings

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Case Details:

Case Code : MKTA019
Case Length : 12 Pages
Period : -
Pub Date : 2005
Teaching Note :Not Available
Organization : -
Industry : -
Countries : Australia

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

Laurel sat staring out of the window sitting at her desk in the new office. She was the new copywriter working with Devlin at K&P. K&P had offices in London, Los Angeles, New York, Chicago, Milan, Budapest, Zurich and its founding office in Frankfurt. She had been given the responsibility of the Red Bull account. The main issue was to look at a new campaign idea for the energy drink in the Asia-Pacific region.

K&P's vision was of an international network of boutique advertising agencies that concentrated on the quality of service and thinking. Her boss, Darryn Devlin had worked on the Red Bull account while at BAM and had taken over as K&P's creative director.

"I developed a relationship with K&P when I was working on the Red Bull account. It is a really interesting agency network and they don't necessarily believe that big is good—what they believe in is developing strong relationships with a handful of clients. In this way we can offer the reassurance and product offering that a network provides while still providing the care and attention of a dedicated team.”¹

Background Note

Red Bull GmBH, a privately owned Austrian company of Dietrich Mateschitz, with sales of $1640 million in 2003, (the detailed company figures are not available) had 1850 employees. First introduced in Asia in the late sixties as a truck drivers pick-me-up, Red Bull began a small revolution in the global soft drinks market in the Nineties. The berry-flavored beverage, spiked with mysterious additives like taurine and glucuronolactone, had gone on to become the trendiest new 'club'drink in Europe - when served with vodka.

At $2 for an 8.3-ounce can, Red Bull's retail price was at least double that for a 12-ounce can of Coke. But it was said to pack more energy with 80 milligrams of caffeine, which was more than double the dose found in the larger Coke serving. It offered 110 calories per serving versus Coke's 140. Red Bull sold around 1.5 billion cans a year in more than 70 countries worldwide. Red Bull was initially developed in Thailand, and the rights were bought to market it world-wide excluding Thailand, which continued producing its own brand. In Thailand, Red Bull had a different formula and marketing plan.

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1] http://www.bandt.com.au/news/ba/0c00ecba.asp


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