Why does Red Bull exist when it probably shouldn't as a business.

A thread on the magic of marketing inspired by our most recent podcast with @rorysutherland.

(Is this the official "start" to a thread or is that trademarked by @JoePompliano?)

From Rory: Red Bull is more expensive, tastes worse, and comes in a smaller can than Coke. From the outside looking in, There is no justifiable market need for Red Bull.

BUT Red Bull sold over 7.5 BILLION cans per year! Austrian company, Red Bull GmbH, was founded in 1987 based on a blue-collar Thai energy drink and now sells its product in 167 countries. The company was estimated to be worth $20 billion in 2019. How do we explain this?

Red Bull's value proposition is built around its brand. Motion, action, and accomplishment. Red bull gives you wings. It allows you to accomplish more than you would otherwise.

Red Bull focuses on non-traditional marketing like hosting extreme sporting events and owning sports franchises. Coke is for when you are going out and eating a burger at a restaurant. Red Bull is for when you need to get stuff done. Red Bull is for pushing yourself.

A byproduct of this marketing: Who are the people who are attracted to Red Bull? Athletes, builders, high performing professionals. People who are getting stuff done. A pretty attractive group to other consumers wouldn't you say? We all want out wings.

Red bull shouldn't exist. But it does. Because it harnesses the magic of marketing to create a product whose value is in your mind, not in the can.

For more examples of companies harnessing the magic of marketing and flipping conventional wisdom on its head, check out this week's episode of ILTB with Rory Sutherland. Link: https://bit.ly/33BWJOd