Red Bull & PR - Literature review Example

? Red Bull & PR RED BULL & PR Red Bull is a multinational company based In Austria that deals in beverages, more specifically its famous energy drink, Red Bull. The firm sells its beverages in one hundred and sixty two countries, with over 4.2 billion cans of the energy drink sold during the year 2011 alone according to the company’s figures. The company deals in a wide range of drinks including; red Bull energy shots, Red Bull Cola, Red Bull sugar free, and Red Bull drink. Its mission statement reads “We are dedicated to upholding Red Bull standards while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner” (Mission/Values, 2011: p1). This paper presents an analysis of public relation strategies used by Red Bull around the world. Energy drink manufacturers, including Rend Bull GmbH, target a specific market segment, i.e., urban and young male males aged between sixteen and twenty nine (Buchholz, 2010: p43). This market segment has aspirations of living their lives on the edge. Accordingly, Red Bull uses extreme sport as a way of relating to them, with the sport being highly popular among this particular category of consumers. Additionally, the slogan used by Red Bull, i.e., Red Bull Gives You Wings”, was developed with the aim of creating public awareness among this particular segment of customers via communicating that drinking their beverages would ease challenging tasks. Moreover, the company epitomized modern branding by utilizing a marketing communication’s mix, including public relations, which sought to sell a way of life rather than a simple product and become culturally relevant (Buchholz, 2010: p43). To do this, it was necessary for Red Bull to come up with PR strategies that caught the attention and appealed to their target group. Red Bull has come up with appropriate public relations strategies that are aimed at reaching out to its target market and getting them interested in the product (Russell, 2010: p44). As noted, Red Bull targets customer groups who live an active lifestyle by engaging in extreme sport and activities. In this regard, Red Bull’s public relations strategies attempt to create a perception that Red Bull beverages give necessary energy and edge to users, which can assist them to lead the lifestyle that they desire, as well as increase in their performance ion various aspects of their lives. Public Relations are defined as the relationships that an organization has with various public segments or groups, which have an effect on their ability to achieve their mission, objectives, and goals (Russell, 2010: p11). Companies can leverage PR by using publications and press kits on a regular basis in order to inform their shareholders around the world about the company, new products, news, events, and any other issues related to the company. Red Bull publishes its annual reports via which it communicates essential messages to stakeholders and the general public regarding the company. These annual reports serve as an effective tool for advertising where its main strengths and achievements are highlighted (Russell, 2010: p11). Red Bull also identifies Identity Media as one of its most effective tools for advertising (Russell, 2010: p46). The company fully utilizes Identity Media via the development of an online TV channel, which covers various company sponsored sporting events, especially extreme sports, and other programs aimed at attracting consumer interest in the company. Red Bull also publishes the Red Bulletin, a monthly magazine that is distributed by the Telegraph newspaper on Sundays. The issue carries sport reports interspersed with product information. The company also uses alternative methods of Public relations, for example, involving their brand in lobby activities in order to integrate themselves into various communities and build relations. One of Red Bull’s most famous public relations stunt was the Red Bull Out of this world publicity stunt (Interkom, 2012: p1). With logistic support from NASA and the United States Air force, the Felix Baumgartner helmed stunt, sponsored by Red Bull, saw Felix freefall into space, a spectacle, which caught the imagination and attention of many people around the world. During its peak, eight million live streamers viewed the stunt. Twenty-four hours after his leap, the stunt had attracted at least two million more views on the Social media forum, YouTube. By attaching their name to the stunt, Red Bull achieved global exposure with millions of dollars-worth of publicity. In addition, the stunt brought their slogan “Red Bull gives you wings” to life in an exciting and extravagant manner (Interkom, 2012: p1). Red Bull GmbH uses virtual-experience and events as part of their public relations strategy. They sponsor and/or organize various entertainment events on a regular basis. In 2010 alone, they sponsored over twenty three racing events including Formula 1 grand prix events in Abu Dhabi, Australia, China, and Britain (Coulthard, 2011: p1). By sponsoring and organizing these events, Red Bull gains exposure by advertising and having the drivers and athletes use their products in camera view, which increases interest and sales. Red Bull also supports various causes with the aim of improving brand awareness among their target market. One example is the “Raise Money for Wings for Life” charity that solicits funds for research into injuries of the spinal cord. To fund this initiative, Red Bull auctions off some unique and interesting branded sporting goods that have been worn or used by various athletes in the events they sponsor (Coulthard, 2011: p1). By doing this, they increase their brand awareness. By also sponsoring arts festivals around the world, including the Vienna Dance Festival and the See No Evil Graffiti Project, they achieve public brand exposure, while also creating a good sophisticated brand image for the company. Red Bull also uses sales promotions as a strategy in their public relations endeavors. Sales promotions are defined as short-term incentives that encourage consumers to buy services and products (Riedel, 2012: p54). Red Bull uses public relations as a means of aiding sales promotion by use of sampling. The introduction of Red Bull Cola in their North American, Chinese, and UK markets utilized an intensive form of sales promotion. In order to improve public relations, they used the mini brand of cars to conduct their sampling campaigns by having them specifically designed with the aim of executing a large version of its Cola can. By using a vintage car, they appealed to the car and race enthusiasts while inviting them to try their product. This was done in order to attain a higher level of efficiency while still maintaining a public presence in the target market. Red Bull also uses entertainment as a public relations strategy and, by extension, as a means of sales promotion (Riedel, 2012: p55). This ranges from the organization of freestyle DJ battles to dance competitions, which are perfect for interacting with their young and urban target market. This increases brand awareness and leads to increased sales and loyalty. Through using adverts to market their products, Red Bull also carries out public relations activities. By definition, advertising is the way in which a company communicates to its target market (Riedel, 2012: p62). Red bull advertises its products through broadcast and print advertisements, having a close working relationship with the Sunday Telegraph Newspaper, which distributes its Red Bulletin newspaper. Coupled to the broadcast ads, Red Bull is able to incorporate innovative extreme stunts into the plot and increase interest in the products from the target market. They also use billboards to communicate the dates of various events they sponsor, which feature popular extreme sport stars in which they also advertise their products. The incorporation of the Red Bull logo into packaging outers and sponsoring athletes and cars gives their products more exposure as their target market watches their heroes (Riedel, 2012: p62). By simultaneously sponsoring these events, they possess full rights on advertising, which has been a major part of their success in their near-monopolization of the energy drinks market. References Buchholz, S. 2010. When a brand gets wings Red Bull's secret of marketing success. Mu?nchen : GRIN Verlag. Coulthard, D. 2011. Red Bull auctions F1 car for charity. Accessed from www.f1technical.net/news/8248 On December 12, 2012 Interkom. 2012. Publicity Stunts and Positive PR. Accessed from www.interkom.ca/interkom-blog/publicity-stunts-and-positive-pr On December 12, 2012 Mission/Values. Mission/Values. 2011. Accessed from http://sites.google.com/site/bhirabanmgmt396/missions-values On December 12, 2012 Riedel, F. 2012. Investigation of the Marketing of the Red Bull Company in Consideration of Cultural Aspects. Mu?nchen: GRIN Verlag. Russell, E. 2010. The fundamentals of marketing communication. Lausanne : AVA Academia. Read More