Red Bull made $9,420,000,000 last year
But just 30 years ago, no one had ever heard of them
Here’s the story of how an Austrian toothpaste salesman seized an opportunity & created the largest energy drink company the world has ever seen:
But just 30 years ago, no one had ever heard of them
Here’s the story of how an Austrian toothpaste salesman seized an opportunity & created the largest energy drink company the world has ever seen:
Dietrich Mateschitz - an Austrian marketing exec - was on a business trip in Thailand when he heard about a new “energy tonic”
According to rumors, it was a concoction used by truckers & shift workers to stay awake and alert through the night
Jet-lagged, exhausted…
According to rumors, it was a concoction used by truckers & shift workers to stay awake and alert through the night
Jet-lagged, exhausted…
And in desperate need of a pick me up, he sought out the drink - called Krating Daeng or "Red Bull” - bought it, tried it…
And immediately tasted an opportunity
So he reached out to Red Bull’s inventor, a Thai pharmacist, and convinced him to team up
Together…
And immediately tasted an opportunity
So he reached out to Red Bull’s inventor, a Thai pharmacist, and convinced him to team up
Together…
They added more sugar…
More caffeine…
And switched it from a bottle to a can in order to appeal to the European market
For 3 years, the pair tested & refined the product over and over again to make it more appealing for the western pallet
Until finally…
More caffeine…
And switched it from a bottle to a can in order to appeal to the European market
For 3 years, the pair tested & refined the product over and over again to make it more appealing for the western pallet
Until finally…
They launched in Austria
Now it’s important to note:
The whole time they were refining the product, they were also investing in market research to predict how it would perform
Now it’s important to note:
The whole time they were refining the product, they were also investing in market research to predict how it would perform
And all responses pointed to the same answer:
Red Bull would fail, miserably
Despite this, they launched…
Red Bull would fail, miserably
Despite this, they launched…
And it was an INSTANT success
Especially among college kids who were using it to stay awake for:
• Studying
• Partying
• Exams
• Literally anything that required energy
After seeing this niche success + realizing how expensive paid ads were …
They went guerilla mode
Especially among college kids who were using it to stay awake for:
• Studying
• Partying
• Exams
• Literally anything that required energy
After seeing this niche success + realizing how expensive paid ads were …
They went guerilla mode
Instead of spending their *limited* money on ads, they leaned into their popularity on campuses…
Sponsoring parties, sponsoring extreme sports events, and paying “Red Bull girls” to hand out free drinks to hungover walk-of-shamers
The result?
Sponsoring parties, sponsoring extreme sports events, and paying “Red Bull girls” to hand out free drinks to hungover walk-of-shamers
The result?
Their sales exploded…
And they knew they’d found their market
From this point on they simply doubled down
Sponsoring MORE events, handing out MORE free samples, essentially going wherever their audience was
They didn’t care…
And they knew they’d found their market
From this point on they simply doubled down
Sponsoring MORE events, handing out MORE free samples, essentially going wherever their audience was
They didn’t care…
If it was a music festival, a sporting event or a popular TV channel - If enough 18-35-year-old males were there, so was Red Bull
And here’s the important part:
They were NEVER asking for a sale or trying to convince people to buy their drink
It was all about brand association
And here’s the important part:
They were NEVER asking for a sale or trying to convince people to buy their drink
It was all about brand association
Have they slowed down?
Absolutely not
While it’s typical for a large company to spend 6%-15% of their budget on marketing efforts…
Red Bull reportedly spends 84% of their profits on marketing
(Almost all of which goes into sponsorships & organic content)
To illustrate…
Absolutely not
While it’s typical for a large company to spend 6%-15% of their budget on marketing efforts…
Red Bull reportedly spends 84% of their profits on marketing
(Almost all of which goes into sponsorships & organic content)
To illustrate…
Red Bull is involved with 11 different sports, has invested in over 15 sports teams, and sponsors over 500 athletes
In soccer, they founded RB Leipzig and accelerated through 4 tiers of German leagues in 8 years
(This is unheard of)
In soccer, they founded RB Leipzig and accelerated through 4 tiers of German leagues in 8 years
(This is unheard of)
And in F1...
They took over Jaguar’s racing team and have enjoyed numerous 1st-place finishes with legends like Sebastian Vettel and Max Verstappen
In the world of extreme sports, they host some of the world’s most exciting events…
They took over Jaguar’s racing team and have enjoyed numerous 1st-place finishes with legends like Sebastian Vettel and Max Verstappen
In the world of extreme sports, they host some of the world’s most exciting events…
Like the WSL Big Wave Surfing or Cliff Diving World Series
And it all leads back to the same idea:
Red Bull doesn’t sell a drink, they sell a feeling
They understand that their audience is young and brutally aware of the thousands of advertisements coming their way every day
And it all leads back to the same idea:
Red Bull doesn’t sell a drink, they sell a feeling
They understand that their audience is young and brutally aware of the thousands of advertisements coming their way every day
To these people, heavy marketing is a turnoff
So they focus on creating content & experiences that give people a feeling of freedom, excitement, adrenaline & adventure…
(Very cool)
All the while having faith that this positive brand association will lead to more sales
So they focus on creating content & experiences that give people a feeling of freedom, excitement, adrenaline & adventure…
(Very cool)
All the while having faith that this positive brand association will lead to more sales
So far their theory has held up…
So much so that the company is now worth over $18,000,000,000
All because a 43-year-old toothpaste salesman was jet-lagged on a business trip in Thailand
Moral of the story?
So much so that the company is now worth over $18,000,000,000
All because a 43-year-old toothpaste salesman was jet-lagged on a business trip in Thailand
Moral of the story?
There are 3, actually:
• Opportunities are everywhere
• When something works, double down
• Never underestimate the power of positive brand association
If you enjoyed this thread & want more, drop us a follow @Parker_HQ
And share this with another business builder.
• Opportunities are everywhere
• When something works, double down
• Never underestimate the power of positive brand association
If you enjoyed this thread & want more, drop us a follow @Parker_HQ
And share this with another business builder.
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