How Red Bull Earns Billions Selling... Nothing.

this video is brought to you by incog Red Bull is best known as an energy drink but it actually does basically everything the company developed a unique Gorilla Marketing style throughout the 1990s which it still uses to this day sponsoring parties extreme sports and high octane events which can be turned into content and monetized this strategy has been immensely successful with Red Bull's Revenue climbing year on year and there's no sign that it will slow down anytime soon so in this video we're going to take a look at the history of the Red Bull brand

it's clever marketing strategy and why the company is doing so well it's so [Music] bad so let's go back to where it all began the company Red Bull GMB was co-founded in 1984 By Thai businessman Charlie Al uidia an Austrian business man drick maritz after maritz had discovered Charlie's crang D drink a couple of years earlier on a business trip and found that it cured his jet lag the two businessmen then adapted Charlie Al's formula to suit Western taste buds making it fizzy and reducing sweetness to create the new Red Bull product each of them

then invested $500,000 of their savings and took a 49% stake in the business giving the remaining 2% to Charlie Al's son and agreeing that Mar shits would run the company Rebel was first introduced to the Austrian energy drink Market in 1987 but it was initially considered Dangerous by the Austrian Food Authority and was banned for a period of time in Hungary France and Denmark because of its high caffeine and touring content nevertheless the drink was hugely popular with young professionals and started to take off in the early 90s it was then introduced to Germany and

the UK in 1994 and the US in 1997 where it went on to capture 75% of the entire energy drinks Market that same year Red Bull also started using its iconic slogan Red Bull gives you wings since then the energy drinks brand has expanded to over 175 countries in total and now employe 6,000 sales staff they sold 12 billion cans annually in 2023 a figure that's steadily growing year on year net revenues also Rose by an impressive 9% to 10.5 billion e in 2023 driven by drink sales now Red Bull has directed a fair chunk

of these revenues to its Sports Investments with sponsorship payments to sports people exceeding 1 billion EUR for the first time in 2022 now Rebel has a strong profit margin on its products and through an Outsourcing strategy with their strategic partner cocacola uses vertical integration to keep costs low along its supply chain so let's take a look at how Red Bull's business model really works starting with its pioneering marketing strategy although it started as an energy drinks brand Red Bull has now basically transitioned into a marketing company and content creator when it launched as an energy

drink the company didn't have a huge budget for traditional marketing so margits wanted to find a more creative Niche than Standard TV ads so Red Bull went down the Gorilla Marketing approach initially targeting men aged 18 to 35 at college parties and bars offering free cans in exchange for helping to spread the word in fact if you went to University you might have spotted the infamous Red Bull branded Mini Cooper somewhere around campus this iny face and Word of Mouth approach massively paid off and Red Bull's drive to get its products into trendy shops clubs

and bars helped make the brand go viral now a sizable percentage of the company's Revenue each year rumored to be between 25 and 30% is reinvested into marketing campaigns uring that Red Bull keeps up awareness among consumers in order to boost sales Red Bull's marketing campaigns rely on the adrenaline and excitement of high energy activities and challenges and they've become significantly Bolder over time too probably its most memorable stunt was when Austrian skydiver Felix Bal Gartner completed the highest ever free fall from 128,000 Ft in 2012 kitted out in a Red Bull space suit Red

Bull also run its own wacky events like the flug tag competition where people build objects they hope will defy gravity and launch themselves off the end of a platform they've also got their soapbox race where people people race down an obstacle course in often rickety homemade wagons crucially though there's a strong content creation element Behind these campaigns too hosting and filming these events to put them on social media makes them accessible everywhere so extra Revenue can be generated through long videos on streaming platforms like YouTube in fact Red Bull has grown its own following on

social media to 14 million YouTube subscribers slightly more than todr and 19.5 million followers on Instagram it's also focused on creating specific content for its audience like human interest documentaries and feature films on people doing cool activities like free running and Cave Diving which brings us on to another massive element of Red Bull's business strategy which is sponsorship Red Bull sponsors hundreds of extreme sports athletes and events of all scales from local to Global including mountain biking surfing snowboarding skate boarding cliff jumping ice skating and perhaps most famously Motorsports they own two Formula 1 teams

Red Bull Racing which it acquired in 2004 and then Alpha Terry formerly Toro Roso in 2006 however they were already involved in Formula 1 before this having sponsored the Swiss team salba from 1995 to 2004 plus selling branded merch and VIP passes for F1 events also helps the brand pull in additional Revenue plus the company owns the racetrack used by the Stan Grand Prix in Austria which hosts a series of events throughout the year on top of Motorsport Red Bull also sponsors a number of major football teams in Europe the USA and Brazil which carry

its name or initials the company bought the Austrian football team RB Saltsburg and its Reserve team FC lefering in 2005 controversially changing the team's traditional colors of purple and white to its brand colors of red and white it then bought the New York Red Bulls in 2006 followed by Germany's RB light Zig in 2009 now the club's name is shortened to RB because the German Bundesliga doesn't allow blatant sponsorship so to get around it the club's badge is almost identical to the red bull logo and the stadium is named the Red Bull Arena though finally

though far less well known is Red Bull's music and events business now the company owns an alternative rock record label Red Bull records in Los Angeles which provides artist development and marketing to a number of bands Red Bull also sponsors several music festivals and projects globally so why is Red Bull doing so well well it decision to asso traditional marketing and instead invest more in fun consumer focused experience-based activities and content was very forward thinking now more and more Brands having to become content creators like Red Bull producing and sharing videos about their activities online

but Red Bull was way ahead of the curve on this having nailed their marketing strategy way back in the late '90s Rebel was also quick to find its audience recognizing its product as perfect for a high energy crowd that loved to party go out play sports and explore the world since then their customers have become the center of the brand content marketing model because the brand realized that these moments and experiences not just products could be shared around the world to help increase its reach while you've been sipping your Red Bull and Diving off cliffs

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