Commanding approximately 70 per
cent of the energy drinks market — an
industry for all intents and purposes
invented and defined by Mateschitz, and
valued at over €2.5bn today' — Red Bull
emerged in the late 1980s following
Mateschitz's discovery of Thai energy
drink Krateng Daeng (which literally
translated means Red Water Buffalo) while
away on business. Following a slow, meticulous
expansion through Europe, overcoming
legal issues and concerns over the
product's safety. Red Bull entered the
North American market in 1997, ten years
after its initial product launch in
Mateschitz's native Austria. Taking five
years to achieve US-wide sales and distribution.
Red Bull went worldwide in
2004, officially introducing the product
and the brand name on the back of clever,
innovative marketing strategies, a unique
and deliberate organisational structure, and
an authentic, defined and respected brand
identity.
Since this worldwide expansion began.
Red Bull has continued to push the
boundaries of its market. In 2009, it is estimated
that more than 3.9 billion cans of
Red Bull were consumed around the
world and this is without a strong presence
in some of the world's largest markets,
including China and India. These results
have been achieved on the basis of conservative
financial planning, cost management
and an 'in-house' marketing strategy. Given
the company's success, and the important
role sport has played in developing both
Red Bull's international brand identity and
extending the brand's presence into new,
uncaptured markets, this case analysis aims
to examine the Red Bull brand as an
example of entrepreneurship in sport. The
study begins by providing a brief history of
the Red Bull brand, the underlying image
and identity bred within the organisation
since its introduction and the methods and
strategies behind its development. It identifies
five key characteristics of entrepreneurship,
important in Red Bull's
evolution, illustrating the growth and
innovation behind the brand's success.