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Aug, 2024Aug 16, 2024
The Story Of How Red Bull Turned To Be A Global Brand Leader
The Red Bull Brand Empire
Red Bull is more than just a drink; it's a marketing phenomenon that has forever changed the landscape of energy beverages and more. It has driven athletes worldwide to new limits, rewritten the history of Formula 1, and impacted numerous other sports and marketing activities. Behind this empire stands Dietrich Mateschitz, the enigmatic founder who found joy not in parties but in relentless work.
Join us as we uncover Dietrich Mateschitz's incredible story of how he built the Red Bull empire from almost nothing.
Dietrich Mateschitz: The Man Behind the Unique Branding Approach of Red Bull
▲Dietrich Mateschitz, picture's from MARCA, copyright belongs to original authors
Dietrich Mateschitz was born on May 20, 1944, in a small Austrian village, Sankt Marein im Mürztal. His difficult-to-pronounce surname hints at his Slovenian roots and is one of his connections with his father. Raised by his mother and grandparents after his parent's divorce, Mateschitz grew up with little reference to his Slovenian heritage. Known as "the Yeti" within Red Bull, Mateschitz shunned the spotlight and was famously private about his life.
Despite knowing little about him, people recognized him as Austria's richest man for the last two decades. There is no official biography, the only book that delves into his life is Die Red Bull Story by Wolfgang Fürweger, which remains untranslated.
This aura of mystery stems from Mateschitz's aversion to fame. He despised success, gossip, and the limelight, choosing instead to live a private life. He had a son from a brief relationship and spent his later years with a girlfriend, but beyond that, his personal life remains largely unknown.
Known for drinking up to 12 cans of Red Bull daily, Mateschitz bought Austria's leading gossip magazine to prevent stories about his private life. He also purchased a private island from the Forbes family and amassed a collection of luxury cars and airplanes. Despite his wealth and success, he avoided interviews, attended few parties, and led a life centered around work and his interests.
His conservative views and dislike for political correctness added to his enigmatic persona. Yet, despite the secrecy surrounding his personal life, Mateschitz's professional achievements and the story of Red Bull are well documented.
Krating Daeng: The Birth of Red Bull
▲Krating Daeng, picture's from Black Buddha, copyright belongs to original authors
Mateschitz was an unmotivated student who took ten years to graduate with a marketing degree from the University of Vienna. At 28, he joined Unilever and discovered his passion for marketing. While working for Unilever, he traveled extensively, promoting products like toothpaste.
In 1982, while seeking independence and enjoyment in his work, Mateschitz discovered Krating Daeng, a Thai energy drink, inside a convenience store during a trip to Bangkok. Intrigued by its popularity among Southeast Asian drivers and its financial success in Japan, he decided to introduce it to the European market at that time as one of the best growing economies in the world.
After negotiating with Chaleo Yoovidhya, the creator of Krating Daeng, Mateschitz co-founded Red Bull GmbH in 1984. Each partner invested $5000, which was Mateschitz's savings at that time, holding 49% of the company each, plus leaving full control (out of Thailand) to Mateschitz. The remaining 2% goes to Yoovidhya's son.
The journey to perfect the Red Bull formula took three years (from 1984 to 1987), during which Mateschitz tirelessly refined the recipe, eventually adding carbonation to create the final product.
▲Infographic from Bloomberg, copyright belongs to original authors
The Energy Drink Brand takes shape
▲Felix Baumgartner, picture's from CUKER, copyright belongs to original authors
Red Bull's association with adrenaline-pumping sports is no accident. The company sponsors various events, from Formula 1 to extreme sports, reinforcing its brand identity. In the 1990s, Red Bull reinvested 30% of its profits into marketing — a staggering amount that paid off handsomely.
In 1999, Red Bull made a dramatic entrance into the U.S. market with a stunt involving skydivers landing on a skyscraper platform in Phoenix, Arizona. This stunt included Felix Baumgartner, who later jumped from the edge of space. This event was streamed live to millions, showcasing Red Bull's innovative marketing approach.
Loyalty and Fun: The Mateschitz Philosophy
▲Picture's from RIDGE, copyright belongs to original authors
Now comes the most incredible part of this story. Something that truly makes it unique and rare. Yes, because Mateschitz was not just a marketing genius; he was also a severe and demanding entrepreneur, and above all, he was loyal.
Red Bull employees were among the first in Europe to accept a code of conduct and among the first to receive a company car — EVERYONE, without exception. Mateschitz was strict and demanding regarding performance, encouraging growth from mistakes, provided they were not repeated. His persona had a rare quality: former employees who spoke of him never had a bad word to say.
One of the pillars of Mateschitz's philosophy was loyalty. Red Bull has taken only one loan throughout its history, and imagine that the only bank that accepted the few guarantees Mateschitz provided is still, by Mateschitz's will, Red Bull's bank today. Loyalty and bank are two words that are very difficult to put together, but Mateschitz managed it.
In 1987, Mateschitz needed a producer for Red Bull. Until that day, the production of Red Bull was entirely internal. With yet another stroke of genius, Mateschitz decided to outsource the production of the drink and the packaging to increase its scalability and the distribution of the product itself. In short, let the skilled ones do the job so that Red Bull can focus only on what it does best: marketing.
A German company was chosen for this task. Do you know the official contract between Red Bull and this producer? A handshake, nothing more. And so it remained for a long time. Something impossible to conceive for many, but for Mateschitz, trust and loyalty were business tools.
That is also why they have never listed Red Bull on the stock exchange. Mateschitz wanted complete control of his creation and managed it old-fashioned to ensure that things were done according to his principles. And so it was until cancer ended his life in the last months of 2022.
A Legacy of Enjoyment
▲Robbie Naish, picture's from SURF, copyright belongs to original authors
At his death, Dietrich Mateschitz was among the 100 wealthiest men in the world, and his company still employs more than 10,000 people. Red Bull has made dizzying revenues and profits that have lasted since the company's third year of existence.
But did Mateschitz have fun in all this? Of course, he did! That was the key to everything. Mateschitz founded Red Bull because he wanted to have fun before making money. He tried to make work fun. It was his job, and he had fun selling a product he believed in wholeheartedly to the whole world — a genuine, unique life philosophy.
One of the first athletes sponsored by Red Bull was Robbie Naish, a windsurfing champion who, when he first met Mateschitz, immediately realized they shared a common passion: cars.
Dietrich forced Robbie Naish to leave Red Bull's offices and go to his garage to ride in his Ferrari 288 GTO up the mountains of his hometown in Austria. Halfway up, Mateschitz pulled over and said to Robbie, "You drive now." The windsurfer wanted to avoid being aware of the car's value. Imagine being in the middle of such a negotiation and daring to take such a risk. But for Mateschitz, there was no way, and his immediate reaction was:
"Either you drive and have fun, or you walk back."
Conclusion
Dietrich Mateschitz's story is one of vision, perseverance, and joy. He built Red Bull from a modest idea into a global powerhouse, transforming the energy drink market and leaving a lasting legacy. Red Bull's success is a testament to Mateschitz's unique approach to business and life, where having fun and being passionate about your work is the ultimate formula for success and a unique approach to marketing and brand building.
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