{"id":578,"date":"2015-09-09T21:57:24","date_gmt":"2015-09-09T21:57:24","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&#038;p=578"},"modified":"2017-07-21T19:47:21","modified_gmt":"2017-07-21T19:47:21","slug":"case-study-red-bull-wins-the-extreme-niche","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-marketing-spring2016\/chapter\/case-study-red-bull-wins-the-extreme-niche\/","title":{"raw":"Case Study: Red Bull Wins the \"Extreme\" Niche","rendered":"Case Study: Red Bull Wins the &#8220;Extreme&#8221; Niche"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Explain how targeting influences each element of the marketing mix<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>Background<\/h2>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104456\/3828156829_9a5aa6945c_b.jpg\"><img class=\"wp-image-1099 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104456\/3828156829_9a5aa6945c_b-683x1024.jpg\" alt=\"Photo of a can of Red Bull &quot;energy drink.&quot;\" width=\"225\" height=\"338\" \/><\/a>Red Bull is an Austria-based company started\u00a0in 1987 by Dietrich Mateschitz that sells one product: an energy drink containing taurine (an amino acid) that's sold in a slim, silver-colored 8.3-ounce can (shown at the right). The drink\u00a0has been an enormous hit with the company's target youth segment around the globe. For the year 2001, Red Bull boasted\u00a0sales of $51 million in the United States alone and captured 70 percent of the energy-drink market worldwide. From Stanford University in California\u00a0to the beaches of Australia and Thailand, Red Bull has managed to maintain its hip, cool image, with virtually no mass-market advertising.\r\n<div class=\"atom__components__figure\" data-global-id=\"gid:\/\/boundless\/Image\/12295\">\r\n<div class=\"atom__components__figure__cont\">\r\n<div class=\"atom__components__document\">\r\n<h2>Red Bull's Targeted Approach to Marketing<\/h2>\r\nRed Bull used Collegiate Brand Managers to promote the drink via free samples handed out at student parties. The company also organized extreme sports events\u2014like\u00a0cliff diving in Hawaii and\u00a0skateboarding in San Francisco\u2014to reinforce the brand's extreme, on-the-edge\u00a0image. Their grass-roots approach to reaching the youth market worked: \"In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi,\" said Nancy F. Koehn, author of <em>Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell<\/em>. Red Bull's success has also gained attention\u00a0(and concern) among beverage-industry giants, and some have tried to follow its lead: For a time Coke ran a stealth marketing campaign, packaging its cola in a slim can reminiscent of Red Bull and offering it to customers in trendy bars and clubs in New York City.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Explain how targeting influences each element of the marketing mix<\/li>\n<\/ul>\n<\/div>\n<h2>Background<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104456\/3828156829_9a5aa6945c_b.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1099 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104456\/3828156829_9a5aa6945c_b-683x1024.jpg\" alt=\"Photo of a can of Red Bull &quot;energy drink.&quot;\" width=\"225\" height=\"338\" \/><\/a>Red Bull is an Austria-based company started\u00a0in 1987 by Dietrich Mateschitz that sells one product: an energy drink containing taurine (an amino acid) that&#8217;s sold in a slim, silver-colored 8.3-ounce can (shown at the right). The drink\u00a0has been an enormous hit with the company&#8217;s target youth segment around the globe. For the year 2001, Red Bull boasted\u00a0sales of $51 million in the United States alone and captured 70 percent of the energy-drink market worldwide. From Stanford University in California\u00a0to the beaches of Australia and Thailand, Red Bull has managed to maintain its hip, cool image, with virtually no mass-market advertising.<\/p>\n<div class=\"atom__components__figure\" data-global-id=\"gid:\/\/boundless\/Image\/12295\">\n<div class=\"atom__components__figure__cont\">\n<div class=\"atom__components__document\">\n<h2>Red Bull&#8217;s Targeted Approach to Marketing<\/h2>\n<p>Red Bull used Collegiate Brand Managers to promote the drink via free samples handed out at student parties. The company also organized extreme sports events\u2014like\u00a0cliff diving in Hawaii and\u00a0skateboarding in San Francisco\u2014to reinforce the brand&#8217;s extreme, on-the-edge\u00a0image. Their grass-roots approach to reaching the youth market worked: &#8220;In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi,&#8221; said Nancy F. Koehn, author of <em>Brand New: How Entrepreneurs Earned Consumers&#8217; Trust from Wedgwood to Dell<\/em>. Red Bull&#8217;s success has also gained attention\u00a0(and concern) among beverage-industry giants, and some have tried to follow its lead: For a time Coke ran a stealth marketing campaign, packaging its cola in a slim can reminiscent of Red Bull and offering it to customers in trendy bars and clubs in New York City.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-578\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Marketing 2014. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/marketing\/textbooks\/alternative-to-marketing-2014-17th-william-m-pride-ferrell-1133939252-9781133939252\/consumer-marketing-segmentation-targeting-and-positioning-6\/market-segmentation-targeting-and-positioning-47\/measuring-a-successful-segmentation-220-7588\/\">https:\/\/www.boundless.com\/marketing\/textbooks\/alternative-to-marketing-2014-17th-william-m-pride-ferrell-1133939252-9781133939252\/consumer-marketing-segmentation-targeting-and-positioning-6\/market-segmentation-targeting-and-positioning-47\/measuring-a-successful-segmentation-220-7588\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Red Bull Gives you Strobes. <strong>Authored by<\/strong>: Aurimas. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/needoptic\/3828156829\/\">https:\/\/www.flickr.com\/photos\/needoptic\/3828156829\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/4.0\/\">CC BY-ND: Attribution-NoDerivatives<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":57,"menu_order":11,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Marketing 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