The story of the energy drink giant Red Bull begins in 1984 when Austrian entrepreneur Dietrich Mateschitz discovered an energy tonic in Thailand. This tonic was created to help people stay awake and focused.
After seeing its market potential, they partnered to bring the drink to Europe.
In the 1980s, the concept of energy drink didn’t exist in Europe. Competing in the crowded soft drinks market was not a good idea.
Unstead of playing by the established rules, Mateschitz created his own by introducing the “energy drink” category.
WOM Marketing
Like many startups, Red Bull didn’t have a big budget for traditional advertising like billboards or TV spots. Mateschitz believed that word-of-mouth (WOM) marketing was the most effective way to promote Red Bull.
The Red Bull team strategically hired college students to hand out free samples on campuses, bringing Red Bull to parties and study groups.
They also focused on getting the drink into trendy clubs & bars, sparking conversations long before social media existed. 🍸
This approach was an inexpensive yet effective way to create buzz and reach more consumers.
Unconventional Marketing Tactics
To spark real FOMO, the Red Bull team employed a clever strategy: They tossed empty Red Bull cans into trash bins near popular spots like bars, pubs, nightclubs, and college campuses.
Within a few months, London’s rubbish bins were overflowing with empty Red Bull cans. They also handed out free samples to DJs and strategically placed cans outside clubs. 🚀
By filling the trash bins with empty cans, Red Bull successfully created the illusion of popularity, making everyone believe Red Bull was a popular drink.
What can we learn from this?
Filling bins with your product may not be the best approach, but there are valuable marketing lessons here for any business and startups:
- Know where to find your audience: Whether it’s local events, social media, or word-of-mouth, identify where your audience is (both online and offline) and approach them wisely.
- Break the ordinary: Effective marketing doesn’t have to break the bank.
- Play your own game: By creating the “energy drink” category, Dietrich Mateschitz set Red Bull apart from the competition, avoiding direct battles with established soft drink giants (a classic blue ocean strategy).
As time passed, the approach of unconventional marketing strategies has become their trademark.
Since its launch in 1987, over 100 billion cans of Red Bull have been sold worldwide, with more than 11.5 billion sold in 2022 alone. 💪