I am finding it more and more surprising to see how much money Red Bull spend outwith the core business and wondered if anyone had any thoughts or knowledge about how they manage it! I can’t imagine the space dive, for example, brought in as much revenue as it cost to set up, or maybe it did?

Any marketing experts care to share how this all works with us uneducateds?

Outwith?

Sponsorships, events, creating films etc

In a nutshell, they sell sugary water in tiny cans for a pound. With a business model like that, you can afford to send men into space.

According to the articles I’ve seen, Red Bull consider themselves a cool events company that just happens to sell sugary water. But that could just be part of the marketing.

In a nutshell, they sell sugary water in tiny cans for a pound. With a business model like that, you can afford to send men into space

You’re hired.

They spend 50% of their revenue on ‘marketing’ was my understanding – equates to about $300 million a year available for stunts/F1/etc.

Cheers wwaswas, it seems they run a very unusual business model then.

They can easily afford to do these stunts with a turnover of over 4 billion Euros from sales of over 4.5 billion cans!!

Cheers wwaswas, it seems they run a very unusual business model then.

Very effective though.

I think they may be old numbers, actually. A quick google shows about 1.5 billion euros as a current estimate @ 25% of revenue

Turnover is about $5 billion.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9610119/Red-Bulls-space-jump-stunt-with-Felix-Baumgartner-worth-100m-in-ad-spend.html

I heard (maybe wrong) they also get a lot of other sponsors onboard for stuff like the X-fighters, plus they sell tickets and TV rights so the big events actually cost very little and they got a lot of screentime for their brand name.

Swatch, Mini, Fox and DHL listed here…
http://www.redbull.com/cs/Satellite/en_INT/Red-Bull-X-Fighters/001243148660786

I don’t drink it myself and I know that they put on all the events for marketing purposes rather than out of the goodness of their hearts, but fair play to them they do great stuff – the “space dive” and the cliff diving that’s been on telly lately have been particularly enjoyable. As has been said it’s a unique business model but it really seems to be working for them.

Outwith

Nothing wrong with outwith – used extensively in Scotland.

According to the articles I’ve seen, Red Bull consider themselves a cool events company that just happens to sell sugary water. But that could just be part of the marketing.

I think of Redbull as supplying the cash-flow to let Mateschitz indulge all his fancies and fantasies.

Come up with an idea that tickles him, and you’ll get some cash, banners and publicity. The company isn’t the end, it’s the means to make things happen.

http://www.redbull.com/cs/Satellite/en_INT/company-figures/001242939605518?pcs_c=PCS_Product&pcs_cid=1242937556133

http://research-methodology.net/red-bull-gmbh/

A bit more figures etc

They work an experiential marketing model rather than a traditional inventory based one.

In other words, they gain their brand exposure (arguably more valuable as it is linked to their target demographic’s interests, creating authenticity) from “doing” stuff rather than block booking loads of ad space in the media.

Case in point – a DPS in just one major monthly sports magazine every month could easily cost you in excess of £100k a year. Multiply that by territorial variations of the mag, production/graphics/translation costs etc, and the cost rapidly builds up.

Suddenly their sports sponsorship is quite an economically attractive proposition – plus it sticks in people’s minds far more than the average ad.

I’m just grateful to all the impressionable suckers taken in by the Red Bull ad’s etc, buying the revolting beverage, and consequently allowing them to fund stuff like the cliff diving, fmx, space-jumping, f1 team, rampage etc.

They work an experiential marketing model rather than a traditional inventory based one

Are you in marketing, because that sounds like marketing guff?

😀

I used to drink loads of Redbull when I first lived in Austria (late 80’s/ early 90’s)

It wasn’t even sold anywhere else for part of that time, and it certainly wasn’t the global brand it is now.
(Although the actual drink was stronger than it is now, much higher Caffiene/Taurin content !)

It was just a very effective hangover cure and tasted nice with Eristoff Red Vodka 🙂

So with all the Media/Marketing/Events etc that they now run, and I haven’t drunk it for more than 20 years I don’t think.

Can I claim to be the Ultimate STW “not effected by Marketing” person 🙂

Really effective and cutting edge Marketing seems to have subconsciously reversed my useage of the product 🙂

No, you can claim to be the Ultimate STW “really affected by marketing as you tried it earlier than anyone else” person

Not sure about that though, they didn’t really do “marketing” so much then, at least not like they do now.

It was just given to me by my boss when I turned up for work one morning hungover and it worked, so I carried on buying it.

arent red bull an event management company who just happen to have an energy drink?

Are you in marketing, because that sounds like marketing guff?

Have worked in & around the media and ad industry for the last 7 or so years so yeah! 🙂

There’s a drink?

Case in point – a DPS in just one major monthly sports magazine every month could easily cost you in excess of £100k a year. Multiply that by territorial variations of the mag, production/graphics/translation costs etc, and the cost rapidly builds up.

I can only see this as being useful if I were to know what the chuff DPS meant. 😕

Ooh, ooh, I know that one – Double Page Spread.

Can I claim to be the Ultimate STW “not effected by Marketing” person

I think you know you can never surpass the previous winner

davidjones15 – or a centrefold in the parlance of STW 🙂

if I were to know what the chuff DPS meant.

Dancing Pocket Shark

territorial variations of the mag

– is that via a globally positioned printed output distribution channel?

davidjones15 – or a centrefold in the parlance of STW

That I understand, thanks.

marketing geniuses and an awesome company to work for. a lot of the sponsorship they do just makes economic sense, for example 130million (ish) on F1 in return for 500million (ish) of global advertising, no brainer really

When I used to run Events at my Sailing Club (HISC) we put a proposal out to have an event in an Its A Knockout stylee which only included Fast Asymmetric Sailing “dinghies” of which 18ft Skiffs were included.
Red Bull sponsored the Event, brought loads of stuff with them, cameras, TV, banners, entourage, merchandise.. you name it.. dolly birds*
The event was, has to be said quite spectacular, the thing that ended it was the Harbour Master who said it was too dangerous.. As soon as RB got wind of this they pulled out the following year.
But we had at least “tasted” the RB effects.

*there were no dolly blokes.

*there were no dolly blokes.

The harbour master might well have cited the “danger” aspect, but I think you’ve actually identified the real reason……… 😉

As soon as RB got wind of this

😀

you name it.. dolly birds

That reminds me about the lovely laydeez who drive about in the RB mobiles (new style VW beetle with giant RB can on the back). Haven’t seen any about for a while actually, I assume they still exist? One day they turned up at the business park where I work and went into all of the businesses to chat & give everyone a can of RB (several hundred people!). I seem to recall the girl saying it was a good gig, basically a part time job doing promotions like that & turning up at sports events but she got to use the car (for free) full time as well as it’s great marketing for them to have a hot chick drive it around!

I quite like the drink incidentally, but only drink it when I have to drive and I’m tired.

Hats off though, the events are worth far more to the average punter than ads, because many are good telly even if you never buy a can.

Yep those cars still exist as do the very nice Red Bull girls 🙂

From my understanding, they get paid a flat rate “retainer” and then a bonus for every event they identify and attend/are photographed at. Quite a cool job if you are a hot girl and I have yet to see an event organiser of any ilk complain about a couple of good looking girls turn up giving away free stuff…….

A guy I went to school with won a red bull mini in a competition. Or I suppose, won the use of a red bull mini- he wasn’t allowed to sell it on, remove the vinyl wrap, or- most importantly- remove the massive red bull can from the back

I did get the feeling from some of the events that the red bull folks have attended that they were just turning up unannounced? No Fuss seemed unsure where to put them. Not totally sure if that’s cool or not, but I like it. “Hey, surprise! We brought you a gigantic monstertruck taxi thing that transforms into a DJ booth! Also a million gallons of sugary water!” Maybe treads on sponsors’ toes though.

I did get the feeling from some of the events that the red bull folks have attended that they were just turning up unannounced? No Fuss seemed unsure where to put them. Not totally sure if that’s cool or not, but I like it. “Hey, surprise! We brought you a gigantic monstertruck taxi thing that transforms into a DJ booth! Also a million gallons of sugary water!” Maybe treads on sponsors’ toes though.

Yeah it’s often unnanounced due to the “self sourced” nature of the attendances…..

Funniest thing I’ve seen is a few years ago I put a guerilla marketing team into the Red Bull Music Academy arena at St Pauls Carnival in Bristol, flyering and handing out stickers for Relentless NASS. Cue a mad Benny Hill style chase with Red Bull girls chasing my (mostly drunk Welsh skateboarders) crew round the site. Was pretty amusing to reverse things for once 😀

I use to share a flat with the Red Bull rep for Scotland. Every time we’d go out he’d just expense the whole night, as long as one drink in each round was a redbull and vodka he could claim it back. Always got in to every club for free, got to hang out with the ‘wings girls’ (the technical name for them) and loads of free goodies and endless supplies of redbull.

ah happy days…