Red bull is a weird and fascinating company and here is why.

-In 2020 Red bull made in revenue of $7.4 billion

-43% energy drink market makes nothing.

Not even the drink they sell . Instead, they focus 100% on marketing.

Here is whats going on:

• Before Red Bull, there was Krating Daeng (KD). founded by pharmaceutical entrepreneur, Chaleo Yoovidhya, KD was created to serve Thailand’s country’s working class. Yoovidhya chose the gaur, a member of the bovine family from the region, as the brand’s symbol.
• Dietrich Matescitz was a toothpaste marketer. on a business trip to Thailand, he discovered KD and fell in love with the drink. With Yoovidhya, he decided to bring it to Europe.                                                                                                                                                                                                                                                                                                                                   He made changes:                                                                                                                                                                                                      -Name became “Red Bul                                                                                                                                                                                          -Added bubbles                                                                                                                                                                                                            -Used a thin can                                                                                                                                                                                                            -Targeted elites

• The deal Mateschitz and Yoovidhya struck outsourced production of the drink to the Thai entrepreneur’s pharmaceutical company.

That fundamental structure has remained in place today: Red Bull outsources production and focuses on distribution (Marketing).

• Mateschitz noticed the rise of extreme sports starting in the 1990s. He thought Red Bull should be part of it.  The year since has seen the company amass an insane empire across sports, media, and apparel.

• There is some truly weird stuff included in Red Bull’s product range:

-An apparel line called “AlphaTauri”

-A travel agency called “Destination Red Bull”

– A career guidance website called “Wingfinder”

• True to form, Red Bull doesn’t make any tangible products. Who they outsource to:

-Drinks; Rausch

-Clothing; Schoeller

-Travel; The travel birds

-Stock music; Rebeat

• why does red bull do all of this stuff? red bull cant differentiate on product. so it pours money into unique advertising. Look at the percentage of revenue Red Bull spends on marketing compared to other beverage brands:

-$KO: 8.4%

-$PEP: 4.4%

-RB: 33% (!!)

• Red Bull also handles marketing differently than other companies. It has two priorities:

1. Buying distribution
2. Manufacturing history

• Rather than pouring cash into paid ads or sponsorship, RB invests in owning new distribution channels. Coke might sponsor Olympics, but Red Bull will buy teams, tv channels, and host events.
• In time these costs became a revenue opportunity. suddenly brands want to advertise on red bull platforms, whether that’s the red bulletin magazine, Servus TV, or a new motocross race.
• Red Bull might not make its own drinks, but it does manufacture something: history.

What does that mean? RB aggressively invests in soccer, F1, esports, and hockey teams.