Vantage point

Tuesday, July 04, 2006

What Bull!

The most optimistic campaign of all time has to be Red Bull. The company has literally been burning money advertising the product which supposedly gives you wings. Now I have no doubt that Red Bull as a niche high energy product can survive in the market. But the amount of money they are pumping into the ad campaigns is too much, and will require high volumes of sales to recover. The drink is quite high priced of course - in India a can costs 75 rupees - but even with that price they will need substantial volumes. I do not envy the sales guys in Red Bull.

In an era when low calorie drinks are the rage, and health awareness is on the rise, I don't see how a drink with such a high cal content can hope to achieve the required volumes of sales. The only guy I have met who regularly drinks Red Bull is a cadet at NDA, where the daily schedule is intensely physical.

And they really are burning up money. They already had a Red Bull team in Formula 1 racing last year. This year, they took over another team and called it Torro Rosso.

If this Red Bull strategy succeeds, it will be an all time great Marketing case. But I don't see it happening.