In 1982, businessman Dietrich Mateschitz was suffering from jet lag while on a trip to Bangkok. Locals told him about a popular tonic beverage called Krating Daeng that could relieve his symptoms of drowsiness and tiredness. He tried the beverage and found that it did alleviate his fatigue.

Impressed, Mateschitz launched Red Bull GmbH two years later with Thai businessman Chaleo Yoovidhya, who owned a tonic drink company. It took three years for the company to create a drink formula that adapted the tonic beverage’s taste to Western palates. Red Bull was sold for the first time in Austria in 1987.......

1. What are Red Bull’s greatest competitive strengths as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drink category and gain market share? What are the risks of competing against such powerhouses?

2. Discuss the pros and cons of Red Bull’s nontraditional marketing tactics. Should Red Bull do more traditional advertising? Why or why not?

3. Discuss the effectiveness of Red Bull’s sponsorships. Where should the company draw the line?