Overview and Analysis of Red Bull, Its Successes and Controversies

Overview and Analysis of Red Bull, Its Successes and Controversies When we first started, we said there is no existing market for Red Bull but Red Bull will create it. And this is what finally came true. Dietrich Mateschitz (Dolan 2005 p.1) Red Bull ®s 1987 launch established an energy drinks market. In 2009 they continue to dominate the globally. How did they achieve? How do they plan to maintain their stronghold? In 1987, revolutionary marketing and advertising techniques coupled with fortunate circumstances enabled Red Bull to create the energy drink market. In todays diverse and ever-expanding market of 228 competitors, Red Bull is likely to lose overall global market share. Ever optimistic, Red Bull continues with extreme sports sponsorship, creating events, nurturing the Red Bull ® lifestyle, a strategic business plan including expanding into emerging markets and developing products and plans to include multi-million dollar resorts and theme parks. Red Bull ® has every reason to be confident of its future. In 2008, the worldwide Functional Drinks market was worth $26.9 billion. Relatively new and still developing, by 2013 the market is expected to expand by 64.3% to a value of $44.3 billion (Datamonitor PLC 2008), spread over three different categories: Sports, Energy, and Nutraceutical. These products aim to improve users, physically and mentally or just improve well-being (Moosa 2002; Datamonitor PLC 2008). With energy drinks being the largest sector at 47.3%, Red Bull ®, was first of its kind, holding a 29% global market share in 2008. (Datamonitor PLC 2008). Spreading its wings internationally since its birth in 1987, 2008 saw Red Bull ® GmbH worth à ¢Ã¢â‚¬Å¡Ã‚ ¬10.9 billion, selling over four billion cans worldwide in 70 countries (Mà ¼ller 2009). History Red Bull ® was the brainchild of Austrian, Dietrich Mateschitz, ex-managing director of toothpaste manufacturer Blendex, where he travelled widely, experiencing different cultures (Gschwandtner 2004). On one business trip , Mateschitz read that one of Japans highest taxpayers was Mr. Taisho, manufacturer of an energy giving drink. Later in Thailand, he learned that taxi drivers use these drinks to counter fatigue. Mateschitz also noted that the drinks ingredients lacked a patent (Gschwandtner 2004). Armed with this information, in 1984 he approached Chaleo Yoovidhya, owner of Thai company TC pharmaceuticals, producer of the Kratindang energy drink (Gschwandtner 2004). Mateschitzs concept was to form a company selling its own energy drink worldwide at a premium price (Keller 2004). Chaleo agreed, each took a 49% stake, investing half a million dollars. Chaleos son took the remaining 2%, and Mateschitz agreed to run Red Bull ® (Dolan 2005). Red Bull ® was first established in Austria. Initially wary of the products unusual ingredients, Austrias government insisted on stringent scientific safety testing. Thus, Red Bull ® was not licensed until 1987. Subsequently, this regulatory procedure proved a mixed blessing for Red Bull ® (Gschwandtner 2004). (Kratin Daeng The iconic eye-catching logo and slogan red bull gives you wings were then designed (Gschwandtner 2004). By 1990, despite high sales figures, and a lot of promotion, Red Bull ®s finances were in the black. To this point, funding had been 90% equity from the two partners and 10% bank loans (Gschwandtner 2004; Dolan 2005). Ambitious Mateschitz now believed Austria too small a market for Red Bull ®. In 1993, Red Bull ® moved into such countries as Hungary and Germany, planning to pre-market the little 250ml can by word of mouth across Europe (Gschwandtner 2004). Red Bull ®s Kraihamer commented, We do not market the product to the consumer, we let the consumer discover the product first (Keller 2004, p.119). This Buzz marketing proved highly successful, and inexpensive. Red Bull ®s controversial ingredients made it a cool fashion icon. Its mixability with vodka, coupled with extreme sports sponsorship, helped the drink tap into the young hip market (Cooney 2007; Gschwandtner 20 04). By 1997, Red Bull ® had conquered most of Europe including the UK. It then moved onto the USA, working state by state with a similar buzz technique (Hein 2001). Today Red Bull ® is now Austrias most successful brand, worth more than à ¢Ã¢â‚¬Å¡Ã‚ ¬10.9 billion, with diamond producer, Swartzkopf being worth half as much (Muller 2009). 3.0 Does Red Bull ® Revitalise the Body and Mind? Red Bull ® is billed as a drink which: à ¢Ã¢â€š ¬Ã‚ ¢ Improves physical endurance, à ¢Ã¢â€š ¬Ã‚ ¢ Stimulates metabolism and helps eliminate waste substances, à ¢Ã¢â€š ¬Ã‚ ¢ Improves overall feeling of well-being, à ¢Ã¢â€š ¬Ã‚ ¢ Improves reaction speed and concentration, à ¢Ã¢â€š ¬Ã‚ ¢ Increases mental alertness (Keller 2004). Red Bull ® is best consumed:, à ¢Ã¢â€š ¬Ã‚ ¢ At times of increased mental and physical strain, à ¢Ã¢â€š ¬Ã‚ ¢ On long sleep-inducing motorways, à ¢Ã¢â€š ¬Ã‚ ¢ During intensive working days, à ¢Ã¢â€š ¬Ã‚ ¢ Prior to demanding athletic activities, à ¢Ã¢â€š ¬Ã‚ ¢ Before tests and exams, (Redbull.com (a) [ca. 2009]). Some consumers are easily convinced of Red Bull ®s effectiveness. Nicknames such as liquid speed and liquid cocaine along with peer pressure build hype around the product (Kumar, et al. 2004). American college student Kaytie Pickett illustrates this: Maybe I think it works just because they say it works Im a slave to peer pressure (Walker [ca. 2009]). Other consumers are more sceptical. Brandweek reported in 2008 that Red Bull ® was one of the UKs lowest ranked companies in a survey of perceived brand value (Brandweek 2008). Despite the odds, studies proved the drinks effectiveness. One such study was on ten individual graduate students, five of which were given a placebo, the rest Red Bull ®. Conducted before and several hours after consumption, the results proved conclusively that: the mixture of three key ingredients of Red Bull Energy Drink used in the study (caffeine, taurine, glucuronolactone) have positive effects upon human mental performance and mood (Seidl, et al. 2000). Whereas most products spell out exactly what they do, Red Bull ® uses vague terms, Vitalizes Body and Mind (Walker [ca. 2009] p.2) relying on consumers to purchase the drink and discover its effects themselves. (Walker [ca. 2009]) 3.1 What are the ingredients in Red Bull ®? Red Bull ® 250ml cans contain; à ¢Ã¢â€š ¬Ã‚ ¢ 80mg of caffeine, à ¢Ã¢ ‚ ¬Ã‚ ¢ Taurine, à ¢Ã¢â€š ¬Ã‚ ¢ Glucuronolactone, à ¢Ã¢â€š ¬Ã‚ ¢ Sugars, à ¢Ã¢â€š ¬Ã‚ ¢ Vitamins (Keller, 2004 p.117). Taurine is Red Bull ®s most controversial ingredient. In organic form, it was discovered in the bile of a bull (Irving Sax, et al. 1987). This is the likely source of not only the name, but also rumours that it is made from Bull Testes or that it contains Bull Semen. In the drink, taurine comes in synthetic form (Redbull.com (c) [ca. 2009]; Walker [ca. 2009]). Human beings produce taurine in a form similar to that of an amino acid. During extreme physical activity, the body may require more taurine than is produced. Taurines metabolic stimulatory effects help the body work harder. (Keller 2004; Healingdaily.com 2009). Equally, its detoxifying effect helps counter fat build-up on the liver caused for example by excess binge drinking (Healingdaily.com 2009; McCall 2005). Glucuronolactone is a naturally occurring amino acid in human beings, produced by glucose b reaking down in the liver. It also removes toxins from the body and is a metabolic stimulator, fighting fatigue, and producing a feeling of well being (Keller 2004). Theoretically, these supplements should help the body to perform better, when under stress, fatigue, or performing physical exercise. Red Bull in suspected link to deaths (BBC News Online 2001) Despite Red Bull ®s beneficial effects, some users have had adverse effects from consuming it, and as many as five people have died. A 16-year-old volleyball player would faint during games, and gain a heart rate increase of 30bpm. Diagnosed with postural tachycardia syndrome, she told the doctor that during the week she would drink four to five cans of Red Bull ® daily. Returning to normal a month later having stopped drinking Red Bull ®, doctors believed that high concentrations of taurine in the brain might have interfered with her cardiovascular system (Terlizzi et al. 2008).1 In 2001, an 18-year-old basketball player shared four cans of Red Bull ® with friends, played a game, then later died of Sudden Adult Death Syndrome. An investigation was recommended into high caffeine content drinks (Medicalnewstoday.com 2004). Two clubbers died in 2001 after drinking Red Bull ® with vodka, a third died after drinking it after extreme physical exercise. No results were published into the relationship between Red Bull ® and their deaths (BBC News Online 2001). A WalMart shelf stacker with a heart condition would drink four cans of Red Bull ® a night. He later died of a heart attack. The coroner had insufficient evidence to link the death with Red Bull ® (Clarke 2008). Most major brands will open up to consumers if there is a health scare or death related to their products, in an effort to safeguard brand loyalty (Dunne 2005). Red Bull ® prefers to take the offensive; No one anywhere has ever shown any link between Red Bull energy drink and harmful effects (Medicalnewstoday.com 2004). This makes them appear edgy, flaunting their dont mess with us attitude. 3.3 Has Red Bull ® profited from controversy? Debate surrounding Red Bull ® has been a double-edged sword. On the one hand, they loose some customers due to health fears, as countries such as Denmark, France, and Australia ban the drink. On the other hand, along with the bans, negative press rel ated to the ingredients, nicknames, adverse affects and deaths, has not only made Red Bull ® a talking point, giving them free publicity, it has also allowed the drink to keep its edge, and remain cool. As Mateschitz himself points out; Without the old high school teacher telling his students Red Bull is evil probably even a drug it wouldnt seem interesting and therefore would loose its edge (Kumar, et al. 2004). This edge was proved during Red Bull ®s launch in New Zealand. The distributor was selling a version of the drink with a UK health warning that the government did not recognise. To get round this, they re-labelled each of the 70,000 cans. When consumers found out that the authorities disapproved, demand went through the roof punters would buy Red Bull and immediately pull off the sticker. Theyd tell their mates: this stuff is illegal, everyone wanted to be drinking from the forbidden tin (Cooney 2007). 4.0 Red Bull ®, a non-descript market? Mateschitz believed consumers would take Red Bull ®s benefits seriously only if the product cost more than an average soft drink. Therefore from the outset, the cost per can was set 10% above the most expensive competitor, regardless of country. This is why a single can of Red Bull ® can cost up to 300% more than a traditional soft drink (Keller 2004). Conducting initial market research in 1987, Red Bull ® had failed miserably; people sa id its colour and taste were disgusting (Johnson 2002). However, this was not all bad news, further research revealed; 50% of our test group were crazy about Red Bull, and 50% said it tasted terrible (Johnson 2002). Ambivalence, as Mateschitz later says, was great for Red Bull ®, creating discussion, controversy and giving Red Bull ® the edge it needed to start a new market. Some thought it had a medicinal taste, persuading consumers of its functional properties and added value (Keller 2004 p117). The drinks extra cost would not deter them (Keller, 2004). Red Bull ® describes its market as; more than just a hot secret for the night owl and the non-stop party-animal. It is appreciated by a wide range of people, such as the overworked taxi driver, the stressed manager, the exam-anxious student and the pressured journalist It is used by surfers in the summer and snowboarders in the winter (Redbull.com (d), [ca. 2009]). Companies typically select their consumer group by specifying such target elements as age, job, sport, or occupation. Red Bull ® does the contrary. Whilst talking generally about their consumers, stressed student, taxi driver, stressed manager etc, they manage to keep their market relatively vague (Walker, [ca. 2009]). So the question is, who buys such a strange tasting, expensive product, with benefits deliberately not spelled out in black and white? Rob Walker [ca. 2009] argues what Red Bull drinkers have in common is a taste for the edgy and faintly dangerous. Keeping a question mark over the specific consumer allows drinkers to fit into the Red Bull ® clique. Despite the young hip image, Red Bull ®s non-descript credentials allow it to be consumed by just about anyone, creating access to wider markets and competitive advantage (Walker [ca. 2009]). 5.0 How is Red Bull Marketed? Red Bull ® presents an image of a small, friendly enterprise. We dont want to be seen as having lots of money to spend (Walker [ca. 2009]). The truth however is quite the contrary. The company spent $600 million, or 30% of its revenue on marketing in 2004, Coke spends 9% (Dolan 2005). This huge sum is spent on extreme sport sponsorship, live events, and eye-catching design, with less emphasis on media advertising (Gschwandtner 2004). This section asks how and why they use these techniques. 5.1 Sponsorship Red Bull ® sponsors over 500 extreme sports athletes worldwide. Examples include Formula 1 Freestyle Skiing, Break Dancing, and Free Climbing (Gschwandtner 2004). Additionally, Red Bull ® creates events filling every niche, from DJ battles, Whacky Races, Air Shows through to Festivals. (Gschwandtner, 2004; see page 10) In 2003, 200 million people watched worldwide as B.A.S.E. jumper Felix Baumgartner leapt from a plane at 30,000ft above Dover with a carbon wing strapped to his back. He flew the 22 miles across the English Channel to Calais at an average of 135mph, setting a new world record (Wyatt 2003). The stunt was not only a dig at the outlawing of Red Bull ® in France, but also a pre-marketing strategy to create brand recognition and a buzz about the product (Gschwandtner 2004). Red Bull ® has tapped into the market of the rich and famous by purchasing Jaguar and Minardi Formula One teams in 2004 and 2005 (World Advertising Research Center 2009). Costing over $100 millio n a year and competing around the world, they race under the names Redbullracing and Torro Rosso (Forbes.com [ca. 2009]; World Advertising Research Center 2009). With constant media coverage, and cans of Red Bull ® spotted in the hands of celebrities and the logo splashed all over their cars, Red Bull ® wins even if the two teams lose! The 5500m2 Hangar-7 in Austria diversified Red Bull ®s influence. It is home to the 15 Flying Bull show planes, a chic eatery, and art exhibition. By night, it transforms into a nightclub, with Vodka Red Bull ® on tap (Redbull.com (b) [ca. 2009]). Dedicated pre-market research allows Red Bull ® to tailor events and sponsorship specifically to each consumer group, state by state, country by country, seamlessly. 5.2 Advertising Simple, playful, nonsensical cartoons help market the product at anyone with a sense of humour, regardless of language, reaffirming Red Bull ®s nebulous marketing strategy (see bottom of page) (Keller, 2004). Coupled with the tagline Red Bull gives you wiiings (Keller 2004, p119) a deliberate exaggeration, adding intrigue, it makes the consumer eager to find out for themselves (Walker [ca. 2009]). 5.3 Brand Image Two red coloured bulls charging towards one another. The small size of the can. These could not be better connotations of strength (Keller 2004). The package says it is a serious product, not to be taken lightly. The Red Bull ® cut-out in the pull-ring adds class and interest, whilst the cans mixture of blue and silver portrays refreshment. The cans simple tagline Revitalises body and mind effectively explains the contents function in four simple words, whilst remaining non-specific (Keller 2004, p.118; Keller, 2004). With its fingers in every pie, Red Bu ll ® combines well thoughtout brand image, playful advertising, media-rich events and sponsorship not only to cultivate their edgy image, but also to ensure every consumer can relate to the product in some way. Mateschitz admits,we dont bring the product to the people, we bring people to the product (Gschwandtner 2004). Red Bull ® wants consumers to embrace the product and all its ideals, as he points out Red Bull isnt a drink, its a way of life (Kumar, et al. 2004). 5.4 Some of Red Bulls extreme sports athletes and events in picture Figure 1 Top to bottom, from left to right; Surfing Amazon tidal bore (Gschwandtner 2004), Red bull Playstreets (Hagena 2008), Felix Baumgartner B.A.S.E. Jump Christ Redeemer (Gschwandtner 2004), Redbullracing F1 Getty (G.M., [2009]), Red Bull Storm Chase (Hollmann [ca. 2004 ]) Hangar-7 (Gschwandtner 2004), Felix Baumgartner Channel Crossing (Gschwandtner 2004), The Dolomite Man competition (Gschwandtner 2004), Flà ¼taag flying day (Stone 2008), Red Bull cliff diving (Keller 2004)., Red Bull air race (Larson 2008), Mysteryland festival (Mysteryland 2009). Page | 10 6.0 Revolutionary Marketing This section explores the revolutionary marketing techniques Red Bull ® uses to establish its brand. The techniques developed out of a demand. In 1987, Red Bull ® could not be exported from Austria, as it was not a European Union member state. EU law states that if one country agrees to the sale of a foodstuff, it can be sold in all EU countries. Each EU member state has a list of allowable ingredients, and to Red Bull ®s dismay, taurine was on none of them. Scotlands allowed list did include taurine, so Red Bull ®s first EU market entry was in 1992 in the UK via Scotland (Keller 2004). During the EU ban, with demand high, individuals bootlegged the drink across borders. Red Bull ® was not actually on the black market, but bootlegging did help their semi-legal image (Keller 2004). Red Bull ®s entry to the UK market was rocky. It was not until 1995 that they made profit (see Figure 2). Long established Lucozade led the energy drink sector. 15 20 Figure 2 Red Bull ® UK Finances (millions) (Red Bull Company Ltd 2009) Containing energy boosting minerals and vitamins much like Red Bull ®, Lucozades use of energy as part of its tagline obliged Red Bull ® to change to stimulant instead of energy, thus targeting a completely new consumer 2002). Red Bull ® was sold as a sports drink, not the holistic product seen in Austria. Instead of using the known buzz marketing, Red Bull ® sold through supermarket chains and billboard advertising with a new tagline: you should never underestimate what red bull can do for you (Johnson 2002, p.5). (Gschwandtner 2004; Johnson Profit/loss after tax Expenditure on Promotional Equipment GBP By 1996, Red Bull ® UK had an astronomical debt of  £2.5 million (see Figure 2). Their share of the market only stood at 2% (Johnson 2002). As global director Kraihamer portrays; The UK team started from the wrong end they were wrong, they totally misunderstood how to create a customer base (Johnson 2002, p.5). (Red Bull Mini 2008) Firing the entire sales team, Mateschitz appointed an Austrian director who increased marketing spending (see Figure 2). The slogan was changed back, and Buzz marketing was introduced. Teams of students were hired to tap into the younger markets. Driving Minis with big Red Bull ® cans attached, they attended parties, and social gatherings. These alpha bees would be the popular ones of friendship groups. If they liked the product, so would their friends, creating a buzz about Red Bull ® (Gschwandtner 2004). This coupled with sponsorship of extreme sports meant that between 1998 and 1999 profits after tax went from  £85,000 to  £16 million (see Figure 2) (Red Bull Company Ltd 2009). A similar success story was of Kiwi, Joseph Roberts, who, when on holiday in Slovenia, saw the opportunity to market and sell Red Bull ® back home. Out partying, he decided he wanted a soft drink and stumbled upon a can of Red Bull ®. When the bar man refused to sell it claiming it to be illegal , it made him want it even more. Eventually, he spent no less than $150 on three cans! Drinking just one, he realised its potential. A year on he met with Red Bull ® in Austria. On persisting, he gained rights to sell the drink. Back in New Zealand, his marketing strategy ensured Red Bull ® turned up at the right parties, bars, and shops. By playing the drinks illegal credentials, he used opinion leaders to create a buzz about the product (Cooney 2007). Before he knew it, he was rushed off his feet: We were delivering products from the back of our cars at two three in the morning everybody had to do whatever it took (Cooney 2007, P.5). Buzz marketing evolved during Red Bull ®s USA launch in 1997. Organising sales, marketing, and distribution from the Red Bull ® North American California HQ was impractical. Instead, a structure similar to that of Red Bull ® GmbH split the USA into eight units covering a set amount of states (see Appendix Figure 3). Each unit organised sale s, distribution, and pre-marketing. This meant the buzz was created even before Red Bull ® arrived. The alpha bees would poll consumers interests, for Red Bull ® to promote the drink in the right places and sponsor the right events (Hein 2001). 7.0 Maintaining market share Red Bull ® dominated the global market in 1987. By 2008 however, they still led with 29%, but energy drink company Monster was catching up with 23% (The Nielson Company 2009). The next section explains how and why, it changed. In 1987, UK Lucozade and USA Gatorade, although not specifically energy drinks, crossed over into Red Bull ®s territory, having already been on sale for many years. Equally, Kratin Daneng held a market share in Asia, although not in carbonated form (Gschwandtner 2004; Kumar, et al. 2004). With over 228 brands listed in 2008, the picture had become very different. Energy drinks were an extremely complex market area. In can or re-sealable bottled format, the sizes varied from the slim original 250ml, to the new 300ml and 680ml varieties. Products now ranged from regular carbonated energy drinks through to Energy Shots with 25 new versions in 2008, natural organic non-carbonated forms, and aphrodisiac drinks (The Nielson Company 20 09). In 1997, Hansen Natural brought out Monster Energy, using similar marketing techniques as Red Bull ®. Its tagline Unleash the Beast evokes a certain type of consumer, together with its Monster Army of extreme Figure 4 Global Energy Drink Market Share 1987 (Various sources) Red Bull Other Figure 5 Global Energy Drinks sales 2008 (The Nielson Company 2009) 1 RED BULL 3 ROCKSTAR 5AMP 7 NOS 9 SOBE Next 90 brands (Monsterenergy [ca. 2009]) 2 MONSTER 4 FULL THROTTLE 6 NO FEAR 8 ADRENALINE 10 BOOKOO sports athletes and promotion through events strives to put Monster on a level footing with Red Bull ®. With a similar calorie count, and blend of ingredients it resembles Red Bull ®, yet is double the size and half the price, it was bound to sell well (Johnson 2002; Monster energy [ca. 2009]). Coffee energy drinks recently entered the market, such as SHOCK coffee (Johnson 2002; SHOCK coffee [ca. 2009]). However companies including Red Bull ® had already tried similar products without success, Fair Trade energy drinks are likely to be a popular new market entrant (The Nielson Company 2009). 8.0 Competition and Intellectual property Energy drink companies have ridden the wave of Red Bull ®s success bringing out similar looking products. No patent on the drink means even their taste could be the same allowing competitors to undercut Red Bull ® and take some of their market share. How has Red Bull ® protected its brand image in the now turbulent functional drinks market? Red Bull ® is a registered trademark. Extremely protective of its brand image, strict guidelines govern the ways Red Bull ® portrays itself in advertising; from use of colour to font size, they cover it all. These measures deter copycat brands but it does not always work; (Keller 2004) In 2007, Red Bull ® took rival energy drink Boost to court, saying their cans use of silver and blue infringed the Red Bull ® trademark. The images on the right hint that Red Bull ® won. (Irish Independent 2007). Red Bull ® took Music Festival organiser Mean Fiddler to court in 2004, claiming firstly that t heir energy drink Synergy had infringed their trademark with silver and blue patched cans of similar size. Additionally they believed Synergy had been switch selling. Losing the court case, Red Bull ® paid out  £20,000 in court costs (Sweeny 2004). Australian wine company Reschke Wines bid to register the trademark Bull Traders in 1999 featuring the outline of a bull. The two companies went to court over the issue (Ainslie 2008). 9.0 Discussion Selling over four billion cans worldwide last year and with global sales figures up on 2007 by 13.2% Red Bull ® remains optimistic of its future. 2009s plans to expand into new and emerging markets such as Africa, Russia, India, and Japan remain unchanged (Mà ¼ller, 2009). However Red Bull ® is not the only energy drink company weathering the economic crisis so well. Reports predict an increase in global energy drink sales by more than two thirds in 2014, at over 8 billion litres annually (Canadean Ltd 2009). What are Red Bull ®s p lans to maintain dominance in the energy drink sector and increase revenue, especially in these times of economic downturn? (Reschke Wines [ca. 2009]) (Boost [ca. 2009]) Page | 14 9.1 Diversification of product range When companies start out with one product, they later diversify or update the existing range to keep consumer interest, ensuring their product does not reach maturity too soon. Red Bull ®s sales figures are still growing, even after 22 years. Their uniqueness on entry into the drinks market as an energy drink has given them 16 long years before they felt the need to diversify (see Figure 5). Successes and failures of products Red Bull ® has brought out are described below. With over one in four adults in the UK trying to loose weight most of the time (Talking Retail 2008, p.1), Sugar Free Red Bull ® was launched in 2003. It contains only 8 calories when compared to the 110 of standard Red Bull ®, so taps into the emerging health conscious (Moosa 2002, p.32) market (Caloriecount.about.com [ca. 2009]). With 25% of new buyers in the UK purchasing Sugar Free Red Bull ®, it accounted for 15% of 2008 sales, Red Bull ® intends to increase spe nding on advertising its sugar free variant (Talking Retail 2008). (Sabai [ca. 2009]) (Redbull.com (a) [ca. 2009]) Global Red Bull can sales (Billions) (Kumar 2004 and Various Sources) 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Sabai is a wine spritzer originating from Red Bull ® co-founders son, Charlerm Yoovidyas Siam Winery in Thailand. Launched in 2005, its flavours Hibiscus and Pomegranate complement Thai foods. Although not sold under the Red Bull ® name, business decisions regarding the drink are taken by Red Bull ®s UK marketing team. Sabai meaning take it easy (Centaur Communications Ltd 2007, p.1) fits their marketing ethic, being a bespoke wine, it is sold using point of sale promotion and consumer sampling at events with celebrities to create a Sabai buzz (Forbes.com [ca. 2009]; CentaurCommunications Ltd 2007). Lunaqua was a failed Red Bull ® attempt to enter the bottled water market. First seen in 2001, the drink was bottled from a previously undiscovered Alpine Source (Lunaqua [ca. 2003]) at full moon giving the water bio-energetic (Lunaqua [ca. 2003]) properties. Suffice to say, it did not sell well and was withdrawn (World Advertising Research Centre 2009). Page | 15 For 2009, Red Bull ® plans to bring out an Energy shot to oppose the 25 competing products brought out in 2008 (BevNET.com 2008). 9.2 Drinks for the Health Conscious consumer Led by the increasingly health conscious (Moosa 2002, p.32) consumer, the market is still developing. With sales volume doubling from 25 million in 2000 to 50 million litres in 2002, Red Bull ®s entry into this niche had to be profitable. Relatively fragmented, it covers a wide variety of products, from vitamin and mineral enriched herbal drinks though to pro-biotic yogurt and fruit drinks, to fruit enriched smoothies (Hillam 2003). Owned by Red Bull ®, Carpe Diem sells a range of five drinks. Kombucha developed in 1997 and Ginkgo 2000 are modern-day carbonated versions of ancient Asian herbal teas. Kombuchas influences stem from the ancient philosophies of Zen, which aims to harmonise body and soul. Ginko has origins in myth and legend, containing leaves from Asias sacred tree, the Ginkgo Biloba aids conc entration. (CarpeDiem.com (a+b) [ca. 2009]. Homeopathic drinks, made with spring water, herbs and plants were launched in 2003. Drawing on Greek physician Hippocrates theories, they have relaxing, harmonising, or vitalising effects and are 100% natural with no added sugar, flavours, colouring or preservatives (CarpeDiem.com (c) [ca. 2009]). Carpe Diems elusive nature echoes Red Bull ®s marketing strategies. By using very little promotion such as point of sale in Selfridges, collaborating with masseurs, offering holistic solutions to weary shoppers, they let consumers find the product, re-creating that Red Bull ® buzz (CarpeDiem.com (d) [ca.2009]). The Wellbeing Zone on the Carpe Diem website details participatory events like urban Yoga, and an Osteopathic self-treatment programme run by experts (CarpeDiem.com (d) [ca.2009]). Like Red Bull Carpe Diem are securing income by creating a way of life, ensuring consumers buy into a philosophy: an appeal to the people of our time to li ve consciously and seize the day (CarpeDiem.com (e) [ca.2009]). (CarpeDiem.com (d) [ca.2009]) (CarpeDiem.com (b+c) [ca. 2009]) Page | 16 The Red Bull simply COLA ® 2008 launch was extremely controversial. Including ingredients such as the Kola nut and Coca leaf, the drink is sold as the only cola to be organic, taking the drink back to its roots. Adding diversity, the drink is available in 250ml and 330ml can sizes (World Advertising Research Centre 2009). In contrast to Red Bull ®s Buzz marketing technique, the launch covered eight markets worldwide including Austria, UK, Ireland, USA, Russia, Germany, Italy, and Switzerland (Redbullcola [ca. 2003]; World Advertising Research Centre 2009). 9.3 New Marketing Ideas (Redbullcola [ca. 2003]) In 2008, Red Bull ® invested only  £50,000 of its  £7.6 million budget in digital marketing, a number set to increase in 2009 (Revolutionmagazine.com 2009). Below are some examples: Red Bull ® entered the gaming industry in 2008 as the first advertiser on Playstations virtual world. Playing an online version of the Red Bull ® Air Race, users interact and share gaming experiences, adding publicity (Revolutionmagazine.com 2009). The Facebook Red Bull ® partnership in launching the new Facebook Connect site enables users to access all their social networking sites using just one login and password. With Facebook being visited by 3 in 10 people online across the world and social networking sites capturing 67% of the global online population, this partnership offers a low-cost way to advertise to hundreds of millions more consumers (The Nielson Company 2009) 9.4 Expanding the business model Red Bull ® purchased the paradise island of Laucala in 2003 for $10 million. Matesch itz association with the rich and famous will ensure a steady flow of customers for the seven star resort, furthering the drink companys credibility with consumers (Fijilive.com [ca. 2009]). In 2004, Selling Power reported Red Bull ®s intention to create a $1 billion motorsport and aviation theme park in Styria, Austria. Open-air arenas holding 100,000 onlookers, F1 racetracks, as well as a motorsport and aviation academy, are just some of the features. Visitors will be able to drive go-carts, high-powered sports cars, motorbikes or planes. Two hotels will provide accommodation, whilst a shopping pla

Happy-haus Food Corporation Essay

Happy-haus Food Corporation is the mother franchisor of happy-haus Donuts. The company was established in 2005 by seasoned individuals in the donut industry. The company’s aim is to create quality donut products at affordable prices. Happy-haus Food Corporation is the mother franchisor of happy-haus Donuts. The company was established in 2005 by seasoned individuals in the donut industry. The company’s aim is to create quality donut products at affordable prices. This was realized with the birth of happy-haus Donuts, a franchising business, giving not only quality products at affordable price but also formulating a superb business opportunity to Filipino families. The company believes that luscious mouth watering donuts should be available to all Filipino families and not just to those who can afford expensively priced donuts. At happy-haus Donuts, total quality is assured through ingredients and equipments sourced both from the United States and locally following stric t quality control standards. Company Vision The company’s vision is to be the number one donut retail company in the Philippines and expand into nearby countries like China and Taiwan. The company’s principle is to provide high quality products at affordable prices. The company aims to provide this service to the Filipino people and eventually to other countries as well. In order to achieve this vision, the company continues to increase its production volume and invest in product development to provide quality and affordable donuts to Filipino families. The company ensures this attainment of this vision by: †¢ Continually seeking strategic locations to open outlets through franchising. †¢ Drive sales growth through a focused operations strategy. †¢ Prioritize innovation in product development and sourcing of alternative sources of raw materials. Company Mission The company’s mission reflects the ultimate reason for our existence. One of them is to provide a superb business opportunity to Filipino entrepreneurs. Another is to provide high quality affordable donuts to the Filipino market. And lastly, the company is dedicated to consistent improvements. Core Values Our company is committed to: †¢ Excellence †¢ Service †¢ Professionalism †¢ Social Responsibility

Book Thief Essay on Hope

The Holocaust was a time in history where hatred and violence was expressed in many different ways. Millions of Jews were murdered, simply for their physical appearances. In Markus Zusak’s The Book Thief, the time period is set during the time of Adolf Hitlers rule. The narrator, Death itself, follows the life of a young girl named Liesel Meminger and the struggles she faces. Although readers would assume that a young German girl would not be having many problems, Liesel’s life is constantly being thrown in the course of trouble.Although many of her friends and family members, and even herself go through many obstacles, they still find faith within each other. Through compassion, happiness and courage, many characters show the reader that optimism is still possible in such a hopeless time. Despite the setting of Nazi Germany being one of the darkest times in history, The Book Thief is a story ultimately about hope. Although the novel is set in such a dark and hateful ti me, compassion is still being shown and felt within different characters in the novel such as Hans Hubermann, Ilsa Herman and, the entire Hubermann family.Hans Hubermann shows compassion for the Jews as they walk by him in the street, and he left Liesel to help one. Hubermann is a German that is living under Hitler’s rule of dehumanizing Jews, but he does not agree with this, and instead of showing hatred towards them, he â€Å"held his hand out [to one] and presented a piece of bread, like magic† (Zusak, 394). In that time, associating with a Jew, or showing any type of kindness to one was considered an act of treason against Hitler’s rule. Therefore, to the Germans, Hans’ actions were considered disgusting.As a result, his paint cart was thrown over and â€Å"they called him a Jew lover† (395, Zusak). Although, to the Jew he tried to help, it was an act of such kindness that it caused him to fall â€Å"to his knees and [hold Hans’] shins. He buried his face between them and thanked [Hans]† (395, Zusak) as the Jew began to cry. Although the majority of Germans are brainwashed to believe that the mistreatment of the Jews was justified, people such as Hans thought otherwise and literally stretched out a compassionate hand in order to help them.This act of kindness shows how humans are capable of expressing compassion towards those in need, despite how out of the ordinary it may seem, and regardless of the consequences. Ilsa Hermann also shows kind-heartedness towards someone who is supposedly beneath her, according to social class. Ilsa Hermann is the mayor’s wife, and because of her social status in the town, the reader would not think to associate her with a poor little girl, such as Liesel. The mayor’s wife takes interest in Liesel because of her love for reading and even allows Liesel to come in at times to choose books from Ilsa’s library to read.This is considered an act of kindness bec ause Ilsa is fully knowledgeable for what is really going in Germany and with the Jews, and in order to shield Liesel from the horrible world outside, she allows her to stay in her luxurious house and read for a few hours. To anyone else, this act would be considered miniscule and unimportant, but to Liesel, this meant the world to her. Liesel has a strong passion for books, as she finds herself constantly getting lost in the words of any book she picks up, and Ilsa understand this as she used to be this way about reading as well.To Ilsa, this is not considered a small act either. She wants to protect Liesel, even if it is for only a few hours. Every time Liesel comes to the mayor’s house to pick up and drop off laundry, the mayor’s wife allows her to read some more in the library. During Liesel’s last visit to the mayor’s house, â€Å"[Ilsa] offered Liesel The Whistler, [and] she insisted on the girl taking it†¦she almost begged† (Zusak, 259) because she felt terrible that Liesel was no longer able to come to her house to read.She wanted to give Liesel a gift to help her forget about the outside world and â€Å"Liesel, touched by the strangeness of this woman, couldn’t bear to disappoint her† (Zusak, 259). Ilsa’s choice to allow Liesel to come into her home and read, and to give Liesel a book from her library shows that although most adults in this time are coldhearted and discriminating, there are some that still can show a special kind of care for others. This shows that in dark times, there are still going to be some adults that try to protect the innocence of children by shielding them from the outside world.The Hubermann family displays a great deal of compassion to someone that they, literally, have no right to. If authorities were to figure out what they were doing, the entire family could be separated and most likely convicted. Rosa and Hans Hubermann show a great deal of courage, compassion and kindness for taking in and deciding to hide a Jew in their basement. Max is the son of Hans’ friend from war, and Hans promised Max’ father that he would help him by any means necessary in the future, and in this case, it was to hide his son from being internalized in a concentration camp.During these times, it was not uncommon for Germans to try and help their Jewish friends, but more often than not, it resulted in them being discovered and both the Jews and the Germans would be killed. Knowing this, the Hubermann’s still decided to allow Max to live in their basement, in hopes that the madness with all the Jews would pass and Max would be free again. What makes this family remarkable, is that they did not know who Max was or what he looked like, before he showed up on their front porch one night and still, â€Å"Hans Hubermann shook [Max’s] hand and introduced himself.He made him some coffee in the dark,† (Zusak, 195) to allow Max to rest an d become acquainted with his saviors. There were many times where the Hubermann’s were almost caught with a Jew in their basement, but luckily, they were never actually discovered. Although it was a fearful time for the entire family, they still knew what they were doing was the right thing to do. When Max first came to the house, â€Å"there was a look of triumph on [Rosa’s] face†¦the triumph of having saved another human being persecution.† (Zusak, 197)Was clearly shown and Max was just as grateful. Max was aware of the danger he was putting the family in, but had no other choice unless he was to go into a concentration camp. He grew a strong friendship with not only Rose and Hans, but Liesel as well. Liesel would go into the basement every night and read with Max, and although most of the times they sat in silence, that is when their friendship grew the strongest. They bonded through Liesel’s readings, and Max’s books that he later gives to Liesel as a present.Max was afraid of being sent away, but he was more afraid of putting this family in danger, especially a little girl like Liesel that had already been through so much. Max knew that Liesel had already lost her first family, so he felt guilty that she could lose this family too, because of him. Although it was a great risk taking Max in, the Hubermann’s knew that it was the right thing to do. Their act of kindness, in the end, benefitted Max as well as their entire family as it brought the three of them closer.This shows that in a place where there is so much hatred, there are still people that can show love and honor by helping those in need. Through Hans, Ilsa, and the Hubermann family, the reader is able to see that hope can be given as well as received through simple acts of kindness, regardless of the time or situation. Despite this many negative emotions going on in this time, happiness could still sometimes be found by both children and adults. Hans , Rudy and, Liesel all felt some degree of joy despite the negative world around them.Hans Hubermann’s happiness did not come from someone else, but from an object. His happiness came from his accordion. Liesel pays close attention to when her Papa plays the accordion, because not only does she notice his happiness, but hearing him play makes her happy as well. Liesel â€Å"often looks at Papa’s fingers and face when he plays. The accordion breathes†¦Sometimes [she] thinks [her] Papa is an accordion. When he looks at [her] and smiles and breathes, [she] hears the notes,† (Zusak, 527) which lets Liesel know that her Papa is being filled with joy as he plays his accordion.Hans has been playing the accordion for a long time now, and he uses his talent to bring delight in the Hubermann household every night when he plays the instrument to Liesel and Rosa, and even Max. Hans is a grown man that not only understands the war going outside his household, but has ev en been in war as well. Despite this knowledge, Hans refuses to give us the simple pleasures in life such as playing an instrument he loves, and allowing his daughter to hear him and receive the same joy he does when he is playing. Hans being happy gives himself, as well as the reader that Hans will never die a bitter man.This shows that adults are still capable of enjoying simple moments, even in times of great stress. During a time where most friendships were broken because of ethnical and physical differences, there was still hope for some new friendships to be made. Rudy and Liesel are two children, a boy and girl, which live on the same street that immediately connect when Liesel moves to Himmel Street. This friendship creates a bond between the two that can only bring a special kind of happiness to them, although neither would ever admit it. Rudy and Liesel’s friendship grew stronger with each new situation they experienced together.There bond grew the strongest after t he two decided to steal together because they both came from poor families. When Rudy was caught stealing a potato, he attempted to explain to the shop owner that his brothers and sisters â€Å"[were] all starving† (Zusak, 294) in order to escape punishment. â€Å"The problem with Rudy†¦was greed† (Zusak, 293), he could never steal enough to satisfy him and because Liesel was his friend she always tagged along with him. Rudy was even able to convince Liesel to start stealing from the mayor’s house. Although it seems like Rudy was a bad influence on Liesel, their friendship still kept them sane.Even as kids, they were able to understand that there was something going on, although they could not tell what is was. They still brought each other joy, whether it be when they played soccer in the street or after they stole something. They helped each other distract the other of what was really going on, and because of it they became inseparable. After they were to steal, â€Å"the book thief and her best friend, [Rudy], sat back to back on a patchy red toolbox in the middle of the street† (Zusak, 484), enjoying one another’s company in still happiness.These two children were able to understand what it means to become a true friend to someone, and because of it, each has gained a special kind of happiness in their life, because the other child was in it. These two’s friendship shows that children are able to bring happiness into anyone’s life, even their own. Regardless of the amount of destruction that surrounds Liesel’s life, she is able to find her own happiness through her readings. When Liesel’s little brother was being buried, Liesel found a book by his grave entitled The Gravedigger’s Handbook that goes through step by step how to perform a proper burial.Liesel steals this book from one of the workers, and when she arrives at the Hubermann’s house, Hans offers to help Liesel learn how to read. Because of Liesel’s nightmares from her brother, she and Hans are constantly awake in the middle of the night attempting to read her book. Liesel ended up with a passion for reading after learning how to with her Papa. She found her escape within her books, and she used her readings to bring others comfort, and herself happiness.During a bomb-raid, while everyone was in a basement taking cover, Liesel started to read in order to calm down the other children. They were crying because of the noises they heard, and once Liesel started reading from her book she â€Å"could feel their frightened eyes hanging onto her as she hauled the words in and breathed them out,† (Zusak, 381). As the kids started to calm down â€Å"a voice played the notes inside [Liesel]. This, it said, is your accordion† (Zusak, 381). Liesel’s reading became what Hans’ accordion is to him, their happiness.These objects were able to bring these two people such happine ss in their lives that it allowed them to forget about the harshness outside them. From this happiness that Liesel gets from books, readers can conclude that the simplest of objects can be the cause of great joy. Hans, Rudy and Liesel are all examples that humans are able to create their own happiness, or allow simple objects to bring them joy. Although these three are living through such a dark and angry time, their ability to feel and express happiness shows that there is still hope for a happier future for them.Nazi Germany consists of a time where those with enough courage to speak against Hitler are beaten down, physically and mentally, to the point where all they have left is fear. Knowing this, Liesel, Max and Hans all display a great amount of courage towards other Germans, Death itself as well as Hitler. Liesel expresses her boldness when she sees Max walking with the rest of the Jews, and decides to acknowledge and speak to him. Max was forced to leave the Hubermann househ old for fear that Nazi’s would come and discover the family was hiding a Jew in the basement.Unfortunately, Max was caught â€Å"halfway to Stuttgart† (Zusak, 511) and was placed in a concentration camp with other Jews. When Liesel saw Max walking with the other Jews on the street, â€Å"never had movement been such a burden. Never had a heart been so definite and big in her adolescent chest† (Zusak, 509). Liesel’s heart shattered when she Max because he was a genuine friend. Max and Liesel created such a strong friendship, that he had given her a story that he created, and she had read to him while he was in their basement.She told Max about her past experiences, about the books that she stole, about the nightmares she had and Max returned the favor by sharing his hallucinations, books and nightmares with Liesel. So, when Liesel saw Max walking with the Jews, â€Å"[she] shrugged away entirely from the crowd and entered the tide of Jews, weaving through them till she grabbed hold of [Max’s] arm† (Zusak, 510). Knowing that the soldiers were watching, she still grabbed ahold of him, wanting to let him know she was there.Max attempted to get rid of her, for fear that she would get in trouble but she would not leave his side. Once the solider realized Liesel was there, he ordered her to leave but â€Å"she ignored [the soldier] completely, [and he] used his arm to separate the stickiness of people†¦the soldier took her [and] his hands manhandled her clothes† (Zusak, 511) but she still insisted on seeing Max. After this, she once again approached max and â€Å"she was courageous enough to reach out and hold his bearded face† (Zusak, 512) and reassured Max that she was here for him.The soldier, seeing Liesel once again talking to Max, pulled out a whip and whipped both Max and Liesel. Even then, the only thing that stopped Liesel from running after Max, was Rudy tackling to the floor and â€Å"[collectin g] her punches as if they were presents† (Zusak, 515). Liesel was determined to be with Max, and this act of bravery shows her courage towards the soldier that was threatening to punish her severely. The courage she expresses shows that people can be brave enough to do what is considered crazy things, if motivated enough.While Max was living in the basement of the Hubermann’s, he was constantly fantasizing about fighting against Hitler himself in a boxing arena. He dreamt that he would finally one day be able to physically beat Hitler down, the way Hitler had done to him and his people. Max shows great bravery in the face of struggle and even Death. As a child, Max had this idea that when he died, he did not want to die a quiet death. The boy vowed that â€Å"when death captured [him],†¦ he will feel [Max’s] fist on his face† (Zusak, 189). Max has shown bravery in the face of many struggles.He had enough courage to travel on his own to seek out Hans H ubermann, with the very likely risk that Germans would catch him. His bravery continued when Nazi’s came to the Hubermnn’s and Max hid under the Swastika flag. Max also shows courage when Liesel discovers him walking with the other Jews after being caught, and instead of ignoring her, he talks to her and comments on how â€Å"it’s such a beautiful day† (Zusak, 512). This was something he used to always say to Liesel when he was living in her basement, so he knew that Liesel would appreciate him saying it to her.He knew that the soldiers would punish him with a whip if he did not stop talking to Liesel, but after everything she had done for him, and the friendship that the two had, he could not even think to ignore her. Max suffered many whippings from the soldier, and afterwards, still â€Å"hoisted himself upright† (Zusak, 514). Max showed courage against death, as well as a Nazi soldier which shows that fearless individuals still exist, and they will do whatever they need to in order to stand up for themselves and those they care about. These individuals also give hope to others around them, by not being afraid and by doing what is right.Hans Hubermann is a man that knows what is right and wrong. The reader learns very early that he has a good head on his shoulder by the decisions he makes with his life. Hans shows great courage when he makes the decision of not being a supporter of Hitler. Hans Hubermann belonged to the 10 percent of Germans that did not show unflinching support for Adolf Hitler (Zusak, 63). He knew what was going on, and he knew that it was wrong. The reason why he took Max in was because Max’s father was Hans’ friend, and rather than looking at it as helping a Jew, Hans saw it as helping a friend.It was very dangerous for Hans not to show support to Hitler. It could ultimately cost him his life, and the life of his family but he chose to boldly stand by his opinion, and not change it for th e sake of being a part of the majority. Hans knew that he could not â€Å"join a party that antagonized [Jews] in such a way† (Zusak, 180) because â€Å"he was a man who appreciates fairness [and] and Jew had once saved his life† (Zusak, 180) therefore Hans refused to be a part of a party that antagonized them.Hans’ refusal to join the party was very dangerous, and because of his decision Hans was constantly ridiculed and his business was even impacted from it. Although he had to go through many hardships as a result of his decision, Hans had the courage to stand by his choices, and because of this it shows that humans are, in fact, capable of doing the right thing. Even if the majority of people are following something that is wrong, there are a few individuals that will be able to stand up and voice their opinion over it, regardless of the consequences.Although The Book Thief takes place in the time of the Holocaust, a time in history that took the lives of ma ny people, this story’s characters continuously show the reader that this is a story about hope. Through characters showing compassion, feeling happiness and expressing their courage, it allows the reader to feel hope that each of those characters will be alright. Hope is something that can be found, even in the darkest of times, if only one remembers to look for it.

The Issue Of Concern A Interview With My Client - 835 Words

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