Immediately after graduating from UC Berkeley in 2000, I was hired by Anheuser-Busch Budweiser as an Urban Marketing Representative. At that moment, Budweiser came out with its own brand of energy drink called 180.

Bud’s Two Mistakes in the Energy Market

1st. The energy drink was orange colored, so most bar tenders refused to sell an “unsexy” drink. After all, orange colored carbonated drink + vodka does not scream “sexy.”
Now, Red Bull + vodka, sexy.

2nd. Marketing with authenticity. While Red Bull marketed toward the extreme sports market and dedicated itself to one singular product. The Gen Y market knew this and was put off when they found out that it was owned by beer giant Budweiser.

8 years later …

The King of energy still holds firmly to the throne, Red Bull.
The story behind Red Bull is amazing.

In 1982, Dietrich Mateschitz went to Thailand and discovered an energy drink that helped him overcome jet lag. With previous international marketing experience, Mateschitz partnered up with Thai Chaleo Yoovidhya who provided the beverage formula.

About twenty years later, both are billionaires.

4 Must Learn Marketing Tips from Red Bull

1st. Grassroots Marketing. In Europe, Red Bull gave free cases of the energy drink to college representative and encouraged them to throw parties. Eventually, word of mouth marketing organically grew the brand including bar tenders mixing Red Bull with vodka.

2nd. Avoid traditional marketing. Starting out as a young company, Red Bull avoided using hi-cost ads.

No billboards, banner ads, taxicab holograms, blimps, Super Bowl spots.

Red Bull understood the Y gen market and wanted to create a brand that communicated authenticity, something most energy drink companies did not do.

3rd. Develop marketing campaigns that generate word of mouth + buzz. The SoapBox racing is a great example. Competitors build a SoapBox, dress up in creative costumes, and have a great time.

4th. Packaging. The slim silver and blue can differentiates itself from other beverages. The color and package displays a global look.

Source: Fast Company provides a great article behind the marketing strategies.

Also, Red Bull is a private company and does not have to report to board members. Essentially, this means that decisions can be make quickly. Often times, “speed” is the key in terms of competing with other beverage giants who must go through bureaucracy.