How Red Bull Makes Money
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- Опубліковано 18 тра 2024
- Besides selling one can for almost every person on the planet in 2019, Red Bull owns several football clubs, runs two formula one teams and is famous for its extreme sporting events and athletes. Obviously, Red Bull does much more than selling an energy drink. But is all that just marketing? We take a closer look at how Red Bull makes money.
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⏱ Timestamps ⏱
00:00 Intro & History
02:18 Sales & Marketing
05:25 Sport as a business?
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Athletic Interest is a video essay series that investigates business stories from the world of sports.
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😂 i have never tasted it .
dein englisch😂👌
bruder der energy ist nicht deren einzige einkommensquelle, der fanshop hat über 4000 artikel, wo du vom shirt bis zu den 1:100 modell F1 autos alles kaufen kannst www.redbullshop.com/de-de/?gclid=Cj0KCQjw3s_4BRDPARIsAJsyoLOKwBzYDEQY4LGx-MsssmkkFjr34meq0vk04Sfyj7DKf3rn7KA9G7waArkpEALw_wcB#
Athletic Interest there is an issue with your map - where Ukraine is displayed without a Crimea, despite it being occupied by Russia. Please, resolve this issue. Also I have to report this video, sadly.
Very nice all the best
2:00 "From Austria, it quickly spread across Europe..."
Ah, shit... Here we go again...
The great wa- I mean the great wings
@@iamaspaceman8533 so funny I forgot to laugh
):
🤣🤣🤣
🤣🤣 great comment man
Space jump was 8 years ago?? That felt like yday
Ikr
I actually thought it was like 2-3 years ago
Yeah it same year with gang nam style booming
Oh man, years are flying by.
Mandela effect fr..
Action sports wouldn’t be the same without Red Bull. They have made so many dreams come true (every athlete the sponsor), brought so much attention towards action sports that’s helped it flourish, pushed every single sport to new levels as we all know everything costs money. I’ve been inspired by so many of their videos over my life time. What an amazing way to invest your money into others, something you don’t hear off at all in any other industry. Thank you Red Bull for everything you’ve done
Also fantastic video, I’ve always wondered how Red Bull can create so much
Lies again? AIA Money Spank Bang
The reason I always have supported them is because they invest a substantial amount of money in action sports where there is no financial future for the top athletes and little money in the sports in general. The wide range of events they sponsor is amazing. I wish other companies had the same ambition to get into emerging action sports without taking away what makes them cool to begin with.
"The reason I always have supported them is because they invest a substantial amount of money in action sports where there is no financial future for the top athletes and little money in the sports in general." Bingo, right here. Agreed.
agreed. although the only way i have supported them is by watching their great content. i dont buy energy drinks. they are super unhealthy. i guess if you are active enough its okay, but im usually not very active these days.
I would also like to find ways to support them as they sponsor events and athletes that would otherwise not be monitarrily feasible. like redbull rampage and the soapbox racing, but I don't drink energy drinks.
@@socks2441 they are certainly not for Athletes either.
*WHO ARE THESE SICK BASTARDS WHO LIKES AND DRINKS THIS CHEMICAL SHIT?*
CocaCola : Our drink formula is secret,burried in the deepest part of company so only few people know about it
Redbull : Outsourcing makes the drink,not us
Yea, I live in SEA and I've had a couple of Thailand imported energy drinks that taste the same or close to RedBull i wonder why. 😂
@@potatoxfish that is most probably Krating Daeng you're drinking, the OG drink that inspired RedBull
Cocacola is also outsourced tho. They dont ship all the bottles from USA. For example, in Finland a beer & soft drinks company called Sinebrychoff makes, sells and distributes all Coca cola companys products in Finland.
@@potatoxfish are sure it is not kratingdaeng?
@@potatoxfish if you life in SEA then im pretty sure what tou drink is Krating Daeng, in my country (Ind) or at least my city Krating Daeng is readily available compared to redbull. But when there is RB its usually side by side with Kd.
Major car manufacturer; Formula One is too expensive, we are out.
Red Bull; i'll take two
And formula 2 and formula 3 teams lol
@@user-de4cq6uk6l and i think a rally team, drift team, and i wanna say they're in touring?
Lee Rey yea, pretty much every Motorsport except nascar and indy
@@LeelssDelta so what we are saying is, a car brand like Honda should just start selling energy drinks
@@xmixdx7351 I would drink Honda energy drink if it was a thing lol
Red Bull has mastered brand recognition, as someone who personally deals with them on many events, they will absolutely support you even if the event is forecast to only break even, because they know that every can of Red Bull sold to people down the line years after the event is still worth it
I went to a flight school in the middle of nowhere, maybe 50 people a year go there, and thet had a RedBull sponsorship. They had an acrobatic airplane with an awesome RedBull livery, tents that said "sponsored by RedBull", fridges with free energy drinks, and more. I always respected RedBull for what they do to more niche sports, but now I adore them
@@lorenmax2.013where's the flight school
This guy's editing is so simple yet straight to the point and very effective. I miss informative videos made like this.
Redbull literally has a team in basically every single sport that exists at this point I think. And every single sport that I watch that Red Bull has a team in are always one of the top performers. Its pretty incredible honestly
The 4 Ktms (Red Bull Factory Racing) in MotoGp would not agree to your last statement
They used to have a team in NASCAR but now they dont. :(
They even sponsor chess players lol
True literally everything. From break dancing to skateboarding.
Even esports as well.
My third day of college there were two hot girls with Red Bull backpacks who offered me a can this finally explains why
I am part of a student organisation and they often give us free red bulls, they are also present at career events, sport events, parties and yet I haven't bought a single bottle of red bull. I have to give it to them, once it made me stay awake until 2 PM, but it isn't healthy at all, I just took it because it was free
There was a free can in my dorm when I moved in
I grew up in a college town (Kent State) I used to play these women and get like a free 12 pack a day 😂😂
@@austinhawkins5426 do tell my guy
@@illuminati3417 free stuff is always good stuff....sort of
“Business trip” to thailand
to bangKOK
I hear ya.
BANGCOCK 👀
😂😂😂
plot twist: this video was free marketing for red bull
Underrated comment.
No wonder I got the urge to drink redbull😅
Can’t forget about esports as well, wow Red Bull
so u watches these type of videos
Let's go G2
OG nice
Ceeeeb
Esports is a joke
Imagine being so rich that you spend 500,000 dollars because you liked a drink you had once
Imagine being so poor that you don't?
Beaten by Rock That’s playfully racist, and hilarious, I cracked up 👍
Imagine all the people...
Mmmmmmm 500,000$ worth of Red Bull... id be set for at least a year
@Beaten by Rock He didn't start a war due from being rejected in art school. During WW1 he was shell-shocked that jump started his mentally insane bable of having issues with PTSD, at that time of an era many hated jews, and the middle easterners still hate the fucks.
I worked for them for 2 years and loved it. Great pay, great benefits, paid holidays, weekends off & etc.
Why did u stop
@@Psgamer-vu2hp got fired. We drove the box Red Bull trucks u see driving around town and I failed a post accident drug test for weed.
@@micahhayes8770 that's as honest as it comes. Props
@@micahhayes8770bro just lives the life as Redbull advertises
What job were you working? I'm actively seeking a job myself (and redbull happens to own a racing team which I am gunning to join in)
I really didnt expect Red Bull to pretty much only make money off of their cans. But I guess I didnt know they had margins so ridculously big.
Red Bull don’t give u wings, it give u good qualifying times in f1
well now, its race pace. But yes, in the early 2010's, no one could beat them in qualy
RedBull gives wings too, have you see the top tier aerodynamics of their f1 cars? xD
Red bull gives you wing, Monster gives you the shitts
@@bk-rl6367 now no one can beat them in anything
@Joshua Fancher Tell that to Checo
Why didn't you touch base on the crazy low-budget cartoon advertisements they do ?
This ^
I really like those animations they're cool and funny
And it’s the same ones since like 2000
"Red Bull te da aaaalaaas" is a phrase that's been stuck in my mind since like forever
Wait until they get political.........
The way redbull are so stromg in every team is insane, and its not just money. They must have really clever people in their management to pull all of this off consistently
I wish Redbull bought twitter.
Redbull makes 97% of it's money selling Redbull... what a shocker!
You forgot they have a race track as well of which is one off the best on the F1 calendar. Just saying
All they do is buying cheap and rising the value 😂 they A1 ring always was a good track and i am glad that they bought it and renovated it.
@@princessaka3189 I am sorry for pointing this out but you have a typo F1 not A1
@@lordzship The Red Bull Ring was previously called the A1-Ring (A Eins-Ring) prior to Red Bull's acquisition. Just a little friendly FYI
@@LTianwei ok thanks I didn't know that.
They also have two hockey teams not just one. EC Red Bull Salzburg and EHC Red Bull Munich both who are ver competitive in Europe. They didn't do a good job at explaining how big the empire is.
Not a single mention of their interesting cartoon marketing. Those hand drawn characters that fly away when they drink Red Bull
Red bull makes you flyyy
I’m disappointed he didn’t mention it
I forgot about them been a while haha
reminds me of JOE CAMEL. i loved that guy as a kid! joe coooooool!
Those ads really really got me as a kid. Luckily I didn't end up with energy drink addiction or obesity
I've always wondered of the value of their sports / racing teams, like between the revenue the teams generates and the marketing it provides for the drink, does that cover the costs of running these teams, or are they basically using their drink profits to subsidize their sports teams
I had always suspected the markup from manufacturing to retail for Red Bull to be tremendous; as financing a Formula 1 race team to the tune of 100-plus million Euros is telling.
Leading up to this video, my guestimate for the manufacturing cost of a can of Red Bull was around (US) 20 cents. Turns out I was off by 50 percent.
2 F1 Teams actually lol! Red bull (main) and alphatauri (junior) it’s crazy
They also organize a HUGE event in spanish speaking countries called "Red Bull Batalla de los Gallos" which is a freestyle hip-hop tournament (improvisation battles with hip hop tracks). Almost every country has their own national tournament and each countries' champion goes to the "International Final" where the best 16 freestylers of the spanish speaking world compete. It's amazing
Sabes que no les pagan a los competidores
@@luchardoloustau4679 Solo en internacionales
Yeah but nobody cares about freestyle in the 1st world countries
Tell that to Eminem
@@madlad1868 At least in spanish speaking countries it's a big thing (an entire continent), plus unfortunately, most south american countries are not precisely considered first world
"Sorry there's no market for that product"
Uhh yeah, you can become 100% of the market then...
Market share? All of it.
"No market" = nobody wants it.
Turns out Red Bull was the first of its kind.
@@ahumandoing6813 the no market concept was an estimation based on observations, the market was always there, people just didn't know it existed
@@ahumandoing6813 People cant demand a product that doesnt exist you have to push the product to the market first then see the market reaction to it
Monopoly
It's an exciting company for sure, and their marketing strategy is pure genious. My personal favourite among their activities, is the immaculately restored Douglas DC-6 airliner - she's a beauty.
They are everywhere, even in eSports.
RIP Mateschitz
The fact they can pull off selling a can of 12 oz energy drink for 3.59 is pretty impressive not gonna lie. I always thought Red Bull’s were overpriced as shit
Why people buy this, never will understand it.
@@marcelo55869 didnt you just watch the video?
in Germany it is 1.09€
It's gold and worth it
Marcelo Pinheiro i just like the taste, i don’t care about football teams, f1 or anything this video says, just the tasete.
I see! Red bull makes money selling Red bull. That's genius!
woah that totally flew over my head i had no idea haha
Bro you killed me
1. created a market for "energy drink"
2. Push it with aggressive marketing and ads
3. 9 cents to produce, 1.87$ price to wholesales, 3.5$ to end user
4. University campus presence, extreme sports events, TV and internet presence.
Making a LOT of money, selling water with sugar and crap.... That is genius.
@@hedge.h If the USSR had won the Cold War, Redbull so wouldn't be a thing lmao
I know right
While the Austrian guy teamed with Krating Daeng owner, it all began with Lipovitan D, a japanese energy drink marketed to salary men. That drink came to Thailand and was manufactured by a thai company under license. That same company made their own version, M150 and Krating Daeng was a copy of M150. M150 still leading the truck driver market in thailand today.
When you invest you're buying a day you don't have to work
@Hart Thim You're right, it's obvious a lot of people remain poor due to ignorance
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
I advice everyone to start investing and never rely on just salary. No billionaire made it through salary
I'm new to this Bitcoin trading, how do I get started with the help of a professional?
Any specific guide?
I’m sorry, but my F1 nerd side is taking over. That’s a F3 car 4:33. Again sorry no hate.
Yeah. Isn't that former RB academy driver Dan Ticktums car?
You candian?
It's fast and cool? It's a F1 easy. You can almost see Schumacher in the background
▅▃Floundso▃▅ nah, I’m danish
@@itsrainingtacos3465 Rød grød med fløde til dig min ven :)
*I literally grew up with RedBull around me, I saw them first with their Formula One team, who appeared in 2005. And eventhough I've never drink a single can, I support almost every sportman (or team) who is sponsored by RedBull. Why?*
*Because they have something special with their vision of sponsorship you know? They always put their brand on someone who is able to win the competition and everytime you see the RB colours on a shirt, helmet, bike, car, plane, truck, astronaut, you understand this man can show you some crazy skills he is born with to win.*
They were one of the sponsors of the Sauber Petronas team prior to acquiring their own F1 team.
I remember them from the late 90' onwards.
I just can't seem to remember which struggling team they bought.
It was the Jaguar team, if i'm not mistaken.
Kevin Drescher cool
that's true! even some of the music they produce is pretty badass
Henri Aarnila that sick Tadow song was made in redbull studio
one and only two times champions of The International by Valve, OG is sponsored by RB. they won it in a row after RB signed them. cybersprort for thoes who have no clue)) recommended to check documentary by Valve, True Side: OG
Ohhh I love a good video that breaks down the genius behind brands that made it big.
Excellent content.
Man, this videos are incredible. By far, my favorite in 2021!!
To hear the german words perfectly pronounced felt soo satisfying
Liegt vermutlich daran, dass der Sprecher Deutsch ist. 😂
@@sumira8669 Dies mag gut möglich sein. ^^
He might be one of the students coming illegally to Austria to buy Red Bull 😁
Did I feel like the voice in this video's accent was German?
Sein Englisch klingt so schrecklich 😖
4:32 "Drinking from a can bearing the same logo as a Formula 1 car"
*Shows a Formula 2 car*
Its a Formula 3 lol
@@MaximoSirianidelCarril Lmao
r/facepalm
@@MaximoSirianidelCarril the day OP learned that when it comes to nerds, there‘s always a bigger fish
Underrated comment 😜😝😝😝
I HIGHLY DOUBT that 97% sales are from a drink... Considering jerseys, tickets, and other merchandise like sk8boards, hats, shirts, f1 models, AND SO ON!!!!!
what's great about it is the marketing is generating cold hard cash itself
from sporting teams and events which would then be used as content to their social medias that can also make ad money
that is an amazing strategy as red bull can either use those money to their marketing strategies whilst the revenue from the main business can remain untouch
When you are the south-east asian and thought Kratingdaeng was rip-off of the red bull, my life is a lie
Wait it's all kratingdaeng? Always has been.
lmao thats what i always wonder about..i was like why are redbull cans different from Asian countries
Noob
I still prefer the thai version, its cheaper and sweeter.
Wakaka... I feel you broo...
4:32 "the same logo as a Formula 1 car"
*shows a picture of a Formula 3 car*
Lmfao
Lmao I thought abt that too
Liam Lawson in the 2019 F3 car, to be precise
Lol they have 2 f1 teams and teams in f2 and 3
@@user-de4cq6uk6l they dont have f2 and f3 teams,the cars in f2 and f3 which have red bull liveries are driven by drivers from the red bull junior driver programe
Red Bull has simultaneous fuelled my partying at night, then the next day fuelled me with energy when I’m hungover at work. Genius really. A drink for both work and play.
Marketing is really everything. You can make people drink an overpriced pee juice because f1 goes vrum vrum.
Me watching this optimistically to grow a large business: *sees he invested half a million & convinced another man to do the same to get started*
Me: all optimism depleted
Sorry bud but your statistically never gonna make a business worth anything
Jake Egan BET
In London a crappy sub urban house is more than that. You could if your remortgage
And this was 1982, thats probably around 3-5m usd today
Better find some angel investors and learn how to pitch to venture capitalists
Fun fact: Red Bull is also sponsoring OG esports team that have approximately earned $33m and winning 2TIs.
OG? Optic?
@@Michelle-ez9hs just OG, player owned org
They Sponsor Cloud9 and G2 Esports among others.
@@Michelle-ez9hs Different teams, Optic isn’t particularly active in DotA 2
No one cares about e-sports outside of obese kids with too much time on their hands.
2:14 - not only RB spread across the continent, it also helped Poland conquer Kaliningrad Oblast without a single bullet shot. True story ;-).
5:35 wait hold up, if it is priced at 20x the cost of production why is the revenue less than the number of cans sold?
I don't drink red bull, but I respect their brand.
I also don't, drink Pepsi and coca cola
@ognineties same
I don't poop
I don't live
@@DaRBLX491 I don't comment on youtube
Not gonna say they shouldn’t diversify, but red bull will be in every college till the end of time
Maybe they should start planting apples and make water bottles, with Red Bull logo. :/
Red Bull vodka baby
I think they are in most every bar too.
For the next 10, 15 years, probably. But it's hard to stay permanently hip and cool, especially since young people tend to think that the stuff that the previous generation liked is lame. Doesn't mean it's impossible, but it's still definitely a risk for the company.
I don't know anyone at my school that drinks red bull. It's all about the crazier, more "extreme" stuff now like bang
Ngl u have a very interesting channel so unique and entertaining.
I love uniqueness.❤
great video on something I've wondering about. but i love the PSA slipped in at 6:01
I admire RedBull as a company and think they are doing a great job in starting the diversification process. As a football fan however, I would dread it if all my local club's culture got wiped away to be named and branded after an energy drink...
same lmao
They only buy small clubs with small fanbases don't worry
@@tiagozimermann9028 and compete with bigger clubs with bigger and more loyal fanbases with astronomical budgets in comparison to those clubs and mess with a fairer playing field.
I think you'd quickly forget that you were upset when your local team gets promoted 3 seasons in a row and starts fighting for titles against the European giants of football
Laurence F that’s not German football fans opinions
Wait wait wait, so the dude ACTUALLY talked to the original owner and had ethics? Mad respect
Not talked to, became co-owners of the brand with, equally invested. How much more filthy rich is the original Thai founder now than he was before Red Bull was launched in Europe?
@@psychlops924 I mean honestly still better than just stealing the brand
Better than Taco Bell history
yes, 49% shares in austria and 51% shares in thailand
Narrator said manufacturer, not owner/creator. So I wonder if an original inventor was ripped off. If the manufacturer was just someone who owns a kitchen that creates and packages the drink, the idea could still be stolen from the original owner.
Your German pronunciation is pretty good, and the video is also really great!!
(Almost sounds like my lecturer, who lived in England for 4 years, when he speaks English and reads out German words, really like it) :)
With Max Verstappen and of how well RedBull as been performing, and of what the brand is as a whole, I have recently started getting RedBull quite a bit since 2020. I’ve had it years ago but never really thought of it much.
Wot
Jägerbombs, the reason and solution of all my problems.
this channel is something I've been waiting for a very long time. it's great that you talk about the topic - how business uses sport to promote brands - I'm waiting for even more materials with different affiliations, the most interesting is information on how each cooperation began; it's like christmas in the summer!
You might enjoy ColdFusion's 'How Big' series
I was in Austria for a hockey tournament and we got to practice at red bulls massive practice facility. 2 soccer fields, 4 hockey rinks, weight rooms, class rooms and MORE! Red bull does some pretty great things
The first time I saw the "Red Bull" brand was in Wipeout XL, video game for PSone. The brand appeared throughout the game and especially during loadings, with the phrase "improve reaction time! Red Bull".
Funny thing is, at the time I thought it was fictional. Later, I was very surprised seeing it in the supermarket.
It is good that you mentioned that family in Thailand that has become vastly wealthy from Red Bull. One interesting note is that Krating Daeng was actually kind of a cheap knock off of a Japanese energy drink called Lipovitan. It was popular with laborers and construction workers.
Oh man, I'm so glad to learn this info. I have this vague memory of early nineties after the collapse of the USSR, Lipovitan was one of the "vitality elyxirs" marketed for the elderly in the Baltics. Usually only sold at pharmacies. Some really strange brands competed in this segment, most were either Jagermeister-type of booze drops or caffeine based stimulants.
never really drank redbull, but always loved the videos and events they did, they really filled the voiding contrast between extreme sports and regular conventional sports.
Sin la marca RedBull probablemente la escena de freestyle Hispano no seria tan grande como lo es, siendo que es fecha que ganar la Red Bull sigue siendo el hito mas grande para todos los raperos freestylers en todo LATAM y España
very nice video, i always wondered how Redbull keeps running. I see them rather as a media brand than a drink manufacturer
Great quality and production. Keep it up! 💪
How much is a can in the States? And I thought the 1.19€ they are charging in Germany was expensive.
2 for 5$ is pretty standard
4$ a can here
Depends on where you go, but it’s $2.50 in most places here in Ohio (it’s probably more expensive in places with higher costs of living, like New York and Los Angeles, for example)
@@DanSoloha woot woot Ohio. Sometimes a can could run up to 3.69 for the 12 oz cans at convenience stores.
I buy them in bulk and typically pay $1.30 USD per can of 8.4oz sugarfree.
Super interesting video!...
Thank you so much.
So easy to understand...
Fantastic job!...
:-)
From Brussels, with Love...
Thank You, Juan!
Creating a market for their products
Apple: WRITE THAT DOWN WRITE THAT DOWN!
Their business model is just to target me, as I pretty much fund the whole company through my addiction to the stuff
I love it so much, it just tastes so good, but I have it very rarely because I'm scared of the cashier judging me
LMAO
I only have it once in a while. Maybe once every several months
@Juicy Boi then go through self checkout
When I was a college student a girl with free samples would stop by dorms almost every month. Now I know why.
I feel like I read this comment somewhere else .
No I no
They also used to come by to universities in a mini cooper with a red bull mounted on the back and hot girls giving out samples like here "some wings for you and you and you..."
Yup, they used to do it here in south africa too.
@@glitchmanshandle I still see the mini coopers here in South African. They also have SUVs
I don't link red bull but every now and then I see the lure of it. I mean there are so many choices of drinks and me I prefer coffee. I think we are overwhelmed with the amount of advertisement. I think the older I get and the more income I make I tend to lean at family ran businesses. Nice insight on the football aspect of Red Bull.
Realmente uma abordagem incrível! Parabéns!!!
I met a Red Bull athlete at an airport once. He said he couldn't wait to get back to his home country so he could take all of his swag off, wear his own clothes and "stop looking like a marketing Christmas tree". Like most of them, he was contracted to wear Red Bull branding whenever he was in public... 365 days per year.
"Marketing Christmas Tree" is now my new favorite phrase XD
HE signed a contract and is probably gettin a good amount of money for it so ...
@@mrn234 well that's why he probably hasn't backed out of it, doesnt mean he cant be annoyed with some of the downsides
oh booohooohooo a pro athlete is tired of being a pro athlete :'(
Considering the amount of money he is making, I bet wearing a chrismas tree t-shirt is the least of his problems haha. Heck if I were sponsored by someone to wear company clothes, but get tons of money in return I would do that without blinking or questioning, because thats what I would get paid for.
I don’t even drink Red Bull never had and never will but I really like their logo with the bulls running towards each other
Me neither but I'm still a supporter of the Red Bull f1 team
just out of curiosity: why wont you ever drink it? did you drink it and did not like it or is it a principle?
why ? i taste it once, and the taste not surprised me, cause kratingdaeng is pretty popular here. the taste are the same, but rb is not as strong as kratingdaeng. i kinda like it cold. but a little bit expensive around 1,2$ a can, worth the try.
@@ihsan75y it's quite expensive in my country. The price is about 1,25€ but that's why we drink other brands like Hell energy, Burn, Rooster, Booster, Monster etc.. It's the same taste I just don't really know if the effect is the same.
@@purritto3779 monster does not taste like red bull, monster is so shit compared. Red bull is waaaaaay better
I never tasted red bull and I have no intention of doing so...but I still respect the way they were able to grow to such heights
Nah you gotta try a Redbull buy one keep it in the fridge and drink it when you’ve done some hard work or need a pick up it just hits different
One critical point that is often voiced but successfully suppressed by the media power of redbull, is that their producers often push athletes and adventurers to more risky behaviour, which makes for more spectacular shots but resulted in death or serious injuries.
Such as?
I always wondered this because of how many sponsors they had and I was so confused on how they make money thanks pal
Yeah, absolutely, and now we know that Red Bull makes its money by selling lots of Red Bulls. Next up, Coca Cola, I really wanna know how they make money - I don't have the slightest clue.
@@reenation1049 dude they sell a lot of coke
@@andrewputnam2717 No waaaayyyyyy........ I would have never thought of this!
@@reenation1049 you asked a question and I answered
@@reenation1049 they sell a lot of types of beverages other than coca cola
A lot of Red Bull's additional media efforts actually cost them money (such as The Red Bulletin magazine) and serve as little more than vanity items. The brand is all about flooding channels for top of mind awareness. I worked there and found that although they present as a revolutionary marketing company, the majority of their success is still due to the massive bar/nightclub penetration (something like 95+% of the bars in the world) and the US consumers, who have no preference between RB and Monster, statistically. In fact, Red Bull has less brand allegiance than Monster in the US, which I would attribute to failed local MKT initiatives. This is due to their rigid corporate structure and Austrian control. They are WAY behind on simply supporting content creators, for instance, and always wanted those MKT initiatives to go ALL the way to US or world headquarters.
Was my dream job, but the magic is all in the distribution. A legacy brand goes a long way in a low brand-affinity MKT; + their world-class athletes keep them relevant. They could cut all marketing but their sports MKT and bar business and have a better margin. However, it remains Dietrich's private play thing.
Edit: By cost them money, I mean they never will make money (unlike the sports franchises, although you must emphasize that a sports franchise that makes a 100 mil in profit is but a drop in the bucket for a company this size)
Interesting. Can I ask what might be aa stupid question? How do they calculate the return on spending 50 million dollars(space jump)? They estimated it to be 6 billion, but how?
I mean, that was marketing and not a sales thing, how can they calculate the conversion from there? Keen on the answer!
@@nhlanhlamala2381 assessing the value could look something like taking an average (rolling, or YoY) for each sales region, then assess the "lift" in sales after the space jump (which was globally televised). If any, sales aren't explained by avg growth or variability, then you can attribute it to the jump. Gets complicated, however, when you take into consideration all of the MKT activations, globally. Each region is handling some of its own MKT, so you have to think " is this lift because of the jump or is it because of something that region did?" In the case of the space jump, it was HUGE, so I bet a graph of sales data shows a pretty obvious bump.
@@_e5598 Okay, it makes sense. So there is no definitive way of knowing that it was because of a certain reason. Unless people were paying/buying a can to watch the jump? Cool. So unless it's more sales, you won't know(conversion).
All that is in retrospect. Would there be a way to pitch, say this jump, and predict the ROI? Forecast?
@@typo1337 I can't tag you in my answer, please check below.
@@nhlanhlamala2381 yeah, so that's what business school is for. Pitching something like that is about massive research. Lots of things play a factor. Earned and paid media, tons of corporate sponsors and channels. This has never been a problem for Red Bull in particular though. Like I said above, the business is unsinkable based on the night club business alone and Dietrich can spend his Fuck You money on whatever he likes (he hapens to like aviation quite a lot), the MASSIVE earned media and sales lift is practically the cherry on top.
Never let the company's brand cloud the athlete's achievements. They are barely paid and they do it because it's what they love. They don't reap the sales lift.
I’ve literally been wondering this for ever🤔
0:46 i think if red bull would have a third formula one team, it would be Krating Daeng
"Didn't see a market outside of Asia".
Oh boy, there's a decision that backfired. Those corporations could have been even richer than they are now. Imagine that.
Perhaps they did not want to share ingridients with china
umm have you not watched the video? Red bull isn't into selling drinks. It's into marketing. they are what they are not because of the drinks they sell but because of everything they built around it.
@@83hjf Well put it this way, they wouldn't be as big as they are without the drink to sell in the first place, so no matter which way you look at it...the drink is kinda vital to their success.
@@xbm41 I drank both types a lot back in my younger age, the only differences (that I could tell) is just the European version is carbonated. Also ingredients are always shown on the can.
@@CookieeMonstarr666 I don't like European version because it's carbonated & it's double the price than Thai version here in SEA. They now have silver version with 30% 'less sugar' than original gold version. Even then, it's still too sweet. I only drink it whenever I have to travel long distance.
One of my friends told me that " I'm not drinking it just because of taste , i am drinking it because of what it represents.They financing and supporting what everything great and fun for humanity. So when i buy a RedBull my money goes to good things also i enjoy my drink." I think many people at same point.
Go and ask any german football fan if they like RedBull and the way they bought and handle Leipzig's football club.
100% this, they represent so many people who would essentially get very little exposure with out them. They brought alot of people and money into extreme sports (that are far more interesting than football, football, basketball, or hockey (all though fights in hockey make it worth seeing live xD)
100% my reason also to buy it!! In my country 'india' no one supported sports but when redbull came it just changed the picture of adventurous sports here that's why for me it doesn't matter if any other product is on the counter but i will buy redbull only
Absolutely. Though I don't drink energy drinks often, I do actually prefer the taste of redbull to the competitors. But really my driving factor is how much the put into bmx, which I'm a lifer in. The way they take care of their riders, the amazing creative content they produce, the coverage they offer the sport. Redbull is absolutely unmatched by their competitors, and they constantly thrive to support the scene. They absolutely have my business.
Tell your friend to google "red bull heir" and see if his or her opinion changes...
Great video, absolutely loved it!
Seen this video back in 2020, Now at uni using it, knew I did the right thing saving it!
🎓
profit margin of 4000% now thats a rip-off even apple would be jealous of
4000% is very low for the brands these days. People are paying 500€ for shoes, 10€ for a cup if coffee, i bet you could sell some people a bag of dogshit as long as the price is high enough and you put the right logo on the bag
@@richardsalzmann7946 Cards Against Humanity did exactly that a couple of years ago (well, it was bull shit, not dog shit, but still...)
Richard Salzmann if it’s that easy, why you dont do it?
Not all of this is their profit as it was told in the video. They sell their products to Walmart for
Money makes World go a round.
FIFA was sale to money.
The Redbull Team: Wow. So this is how we make money
Honestly it's just great that redbull can sponsor all these extreme/top sports so people can do cool things
These videos are astounding!!
There is an astonishing number of RedBull events, everywhere, everytime, in every disciplines
There is even one for a rdr 2 concert.
And they're generally really good too. Hosted well, top line athletes, all around good environments that are planned well and showcase great skills.
the marketing ideas of redbull amazes me everytime, they have geniuses.
perfect profile pic lol
Moral of the story: Red Bull makes money by selling Energy Drinks
Literally 😂
Overpriced* energy drinks
I think it's cool to mention that the first athlete Redbull ever sponsored was Austrian F1 driver Gerhard Berger, coming from an F1 fan.
Red Bull has a Genius level of Marketing which is why they were able to get such high sale numbers.
It is also highly addictive... It keeps you awake but also give you bad sleep quality that makes you more tired, which in return makes you take more Red Bull to keep awake which again makes your sleep quality even worse and so on and on. Before you know it you can not function at all without it...
@@a64738 if you drink gallons of it, then yes. Sleep quality is bullshit though
Red bull makes you flyyy
Its easy but when we talk about money not everyone can do this kind of marketing.
And there is me that never drank a Red Bull can.
But I have tried it.
very entertaining video thanks you :D
No lie. I've been wondering this for sooooo long.
They run 2 top level ice hockey teams actually, 1 in Germany and 1 in Austria.
Don't forget Germany Football club Bundesliga RB Leipzig team
@@maxweinberg22 they also forgot thier racetrack 😋
*They killed 2 top level ice hockey teams.
Red Bull Salzburg and Red Bull München
I got a Red Bull ad on this video 😂
One thing I think really helps them out is selling a consumable product. It would be much harder for Redbull to get the revenue from their product if they has a way more niche item like a sports camera or a more physical product like a laptop.