Award winner: Red Bull Spreads Its Wiiings

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This case won the Marketing category at The Case Centre Awards and Competitions 2025. #CaseAwards2025

Who – the protagonist

The late Dietrich Mateschitz, co-founder of energy drinks company Red Bull.

What?

Since gaining a foothold in petrol stations and as an alcoholic mixer in clubs and bars in the late 1980s, Red Bull has grown to become the world’s third most valuable soft drink brand (in 2021 its value stood at $8.1 billion).

The Austrian brand’s soft drink range includes the original product, Sugar Free and Total Zero formulations, as well as various flavoured editions such as cactus fruit.

Estimated to reinvest over 30% of revenues in marketing, Red Bull is perhaps better known for its activities outside of selling its core product.

To name but a few, projects range from a music academy and e-sports, to sponsoring over 800 top athletes, to owning multiple sports teams around the world, including the hugely successful F1 team Red Bull Racing, which has won multiple constructors’ and drivers’ championships - all of which produce engaging content promoted via Red Bull Media House.

Redbull cans

Why?

Two new brand extensions threatened to alienate its loyal consumers and dilute Red Bull’s carefully cultivated anti-brand brand image.

The two products in question were the functional fashion line AlphaTauri and The Organics by Red Bull, a collection of premium sodas.

Whilst Red Bull wanted to disrupt and innovate with AlphaTauri and The Organics, it is unclear who the target customer is and to what degree the parent brand and its organisation can support a non-energy drink and high-end fashion line.

When?

AlphaTauri was formed in 2016, and Red Bull’s second F1 team, Scuderia Toro Rosso, was rebranded as Scuderia AlphaTauri in 2019.

Meanwhile, in 2018, Red Bull Simply Cola was the latest product to be added to The Organics portfolio, after its initial failure in 2008 as part of Red Bull’s standard range.

Where?

Mateschtiz hails from Austria, with Red Bull’s global headquarters based in the country in Fuschl.

But, Red Bull is a worldwide entity, with 13,610 employees (as of the end of 2021) around the world and it is one of the most recognisable brands on the planet.

Key quote

“We’re a 100% spin-off of Red Bull. No one in the market needs another fashion brand. So, our concept is to be a disruptive and innovative company. It’s always been the dream of (Dietrich Mateschitz) to own a fashion brand.”

What next?

Both AlphaTauri and The Organics relied on the endorsement of their parent brand.

Ultimately, could Red Bull envisage both entities conquering new markets? Or could the association with Red Bull prove limiting? Most worryingly, would Red Bull’s loyal customer base feel alienated by these premium products? Critically, could the company’s carefully honed marketing formula be successfully deployed in these new markets, or did they require a different approach?

AUTHOR PERSPECTIVE 

This is Nader’s fifth Case Award and second Marketing prize (2009, 2025). London Business School have won 22 awards in total.

On winning the award…

Nader said: “I am over the moon, to be honest. The very first case I co-authored back in 2005 was also on Red Bull. It won both the marketing category and overall case awards and is now part of the classic case collection. Red Bull literally gave and continues to give my case writing wiiings!”

On the case’s popularity…

Nader continued: “Students across the world are very familiar with this somewhat polarising brand yet tend not to be aware of the systematic approach the company has taken to holistic brand building and granular consumer engagement. In most countries, students also tend to be unaware of the Organics and AlphaTauri brand stretch initiatives. Both invite a meaningful discussion of academically grounded pros and cons, for example, regarding strategic brand-market fit and operational marketing-model fit.”

On the appetite for a second case...

He added: “Over the years, I consistently received queries from colleagues about whether I planned to update the award-winning Red Bull case I co-authored in 2005.

“The media landscape has significantly changed, and Red Bull Media House is a leader in combining physical experiences and engaging consumers digitally. What triggered my decision to do so, eventually, was the renaming of their second F1 team to AlphaTauri in support of their fledgling functional-fashion label. This came right around the same time as their launch of the non-energy drink range The Organics by Red Bull. Both decisions hold inherent tensions - potential synergies and dis-synergies - that promised a rich classroom discussion. Both decisions also begged the question as to whether Red Bull’s formidable marketing system was fit for purpose, or whether they needed to adapt their rather unique approach.

“The old case was therefore reborn as one of the main actors in a new drama.”

On the key highlights...

He commented: “A key highlight for me was being able to have an excuse to immerse myself into the world of Red Bull, both as a consumer and as an observer of their business practices. The organisation has created an enviable balance between running a well-oiled marketing machine that fosters rather than stymies creativity to power it. This started top down with the late Dietrich Mateschitz and his top team of marketers that have now led the brand for over two decades. 

“A second highlight for me was writing the teaching note. I had not previously delved deeply into topics such as customer engagement and content marketing. Reviewing the academic and practitioner literature on these topics provided me with a much more solid and nuanced understanding and a structured means to convey them to my students.”

On his favourite teaching case...

Nader explained: “I currently use the case as the capstone case in the MBA marketing core, in an open enrolment executive education programme, and with individual client companies. I can say without hesitation, that this has been my favourite case to teach in my 30 years in the classroom. The brand literally brings energy into the classroom and allows for an academic and practical discussion of key marketing concepts - from engaging consumers emotionally through experiences to strategically building the core concepts using product-brand portfolio stretch. It is a brand everyone knows, but also one few have thought about systematically from an operational perspective.”

Redbull Jets

On an inspiring subject...

He said: “It is simply incredible for students to appreciate what Red Bull has been able to do with a mere soft drink, and it challenges everyone to think about how they can formulate a consumer-centric purpose that inspires new ways of engaging current and potential consumers. Simply by reviewing their marketing approach and asking, 'How would this look for your brand?' has already inspired brands in the luxury, financial services and consumer goods space to behave differently.

“The case is also a ‘safe’ one to teach, as there is no right answer regarding the brand-stretch decisions. It allows students to appreciate inherent tensions in any such decisions, and how executing and monitoring a strategy with these tensions in mind is as critical as formulating the ‘right’ strategy in the first place.”

On case writing tips...

Nader added: “First, for me, a case typically starts with a compelling business situation that I have no easy or preconceived answer to. This is not only key to stimulating classroom discussion, but also to hold my attention throughout the writing process.

“Second, I have to be able to develop, for myself, a solid academic understanding of the forces at play. This provides the core of the teaching note and a way to crystallise key learnings.

“Third,  I was a presenter at The Case Centre’s webinar ‘The Ingredients of an Award-Winning Case’ where I summarised a three-act structure - setup, confrontation and resolution - that highlights the importance of context, strategic alternatives, and decision criteria. We also learn through stories, and this structure allows everything to hang together using a story narrative.”

Final word...

Nader concluded: “I have not only provided a detailed teaching note but also shared an extensive set of PowerPoint slides and engaging videos for instructors to use. These materials will allow instructors to pick and choose the slides and videos that will permit students to viscerally experience key topics and make memorable the key lessons they want their students to take away.”

INSTRUCTOR VIEWPOINT 

Discover how this case works in the classroom.

“Red Bull is a marketing powerhouse. It’s approach to content creation, and athlete and event management around not only extreme sports but also mainstream ones like football has revolutionised the sports industry.

“The case ‘Red Bull Spreads Its Wiings’ portraits perfectly its innovative marketing avenues and the synergies that Red Bull is able to create between very different products and markets like energy drinks, fashion and Formula 1.

“The case has always sparked a very passionate and intense discussion in my sports marketing class at the Munich Business School. It is a joy of a case to teach.”

Mike Marqués, Lecturer of Sports Marketing, Munich Business School.

THE CASE 

The case

Who – the protagonist

The late Dietrich Mateschitz, co-founder of energy drinks company Red Bull.

What?

Since gaining a foothold in petrol stations and as an alcoholic mixer in clubs and bars in the late 1980s, Red Bull has grown to become the world’s third most valuable soft drink brand (in 2021 its value stood at $8.1 billion).

The Austrian brand’s soft drink range includes the original product, Sugar Free and Total Zero formulations, as well as various flavoured editions such as cactus fruit.

Estimated to reinvest over 30% of revenues in marketing, Red Bull is perhaps better known for its activities outside of selling its core product.

To name but a few, projects range from a music academy and e-sports, to sponsoring over 800 top athletes, to owning multiple sports teams around the world, including the hugely successful F1 team Red Bull Racing, which has won multiple constructors’ and drivers’ championships - all of which produce engaging content promoted via Red Bull Media House.

Redbull cans

Why?

Two new brand extensions threatened to alienate its loyal consumers and dilute Red Bull’s carefully cultivated anti-brand brand image.

The two products in question were the functional fashion line AlphaTauri and The Organics by Red Bull, a collection of premium sodas.

Whilst Red Bull wanted to disrupt and innovate with AlphaTauri and The Organics, it is unclear who the target customer is and to what degree the parent brand and its organisation can support a non-energy drink and high-end fashion line.

When?

AlphaTauri was formed in 2016, and Red Bull’s second F1 team, Scuderia Toro Rosso, was rebranded as Scuderia AlphaTauri in 2019.

Meanwhile, in 2018, Red Bull Simply Cola was the latest product to be added to The Organics portfolio, after its initial failure in 2008 as part of Red Bull’s standard range.

Where?

Mateschtiz hails from Austria, with Red Bull’s global headquarters based in the country in Fuschl.

But, Red Bull is a worldwide entity, with 13,610 employees (as of the end of 2021) around the world and it is one of the most recognisable brands on the planet.

Key quote

“We’re a 100% spin-off of Red Bull. No one in the market needs another fashion brand. So, our concept is to be a disruptive and innovative company. It’s always been the dream of (Dietrich Mateschitz) to own a fashion brand.”

What next?

Both AlphaTauri and The Organics relied on the endorsement of their parent brand.

Ultimately, could Red Bull envisage both entities conquering new markets? Or could the association with Red Bull prove limiting? Most worryingly, would Red Bull’s loyal customer base feel alienated by these premium products? Critically, could the company’s carefully honed marketing formula be successfully deployed in these new markets, or did they require a different approach?

AUTHOR PERSPECTIVE 

Author perspective

This is Nader’s fifth Case Award and second Marketing prize (2009, 2025). London Business School have won 22 awards in total.

On winning the award…

Nader said: “I am over the moon, to be honest. The very first case I co-authored back in 2005 was also on Red Bull. It won both the marketing category and overall case awards and is now part of the classic case collection. Red Bull literally gave and continues to give my case writing wiiings!”

On the case’s popularity…

Nader continued: “Students across the world are very familiar with this somewhat polarising brand yet tend not to be aware of the systematic approach the company has taken to holistic brand building and granular consumer engagement. In most countries, students also tend to be unaware of the Organics and AlphaTauri brand stretch initiatives. Both invite a meaningful discussion of academically grounded pros and cons, for example, regarding strategic brand-market fit and operational marketing-model fit.”

On the appetite for a second case...

He added: “Over the years, I consistently received queries from colleagues about whether I planned to update the award-winning Red Bull case I co-authored in 2005.

“The media landscape has significantly changed, and Red Bull Media House is a leader in combining physical experiences and engaging consumers digitally. What triggered my decision to do so, eventually, was the renaming of their second F1 team to AlphaTauri in support of their fledgling functional-fashion label. This came right around the same time as their launch of the non-energy drink range The Organics by Red Bull. Both decisions hold inherent tensions - potential synergies and dis-synergies - that promised a rich classroom discussion. Both decisions also begged the question as to whether Red Bull’s formidable marketing system was fit for purpose, or whether they needed to adapt their rather unique approach.

“The old case was therefore reborn as one of the main actors in a new drama.”

On the key highlights...

He commented: “A key highlight for me was being able to have an excuse to immerse myself into the world of Red Bull, both as a consumer and as an observer of their business practices. The organisation has created an enviable balance between running a well-oiled marketing machine that fosters rather than stymies creativity to power it. This started top down with the late Dietrich Mateschitz and his top team of marketers that have now led the brand for over two decades. 

“A second highlight for me was writing the teaching note. I had not previously delved deeply into topics such as customer engagement and content marketing. Reviewing the academic and practitioner literature on these topics provided me with a much more solid and nuanced understanding and a structured means to convey them to my students.”

On his favourite teaching case...

Nader explained: “I currently use the case as the capstone case in the MBA marketing core, in an open enrolment executive education programme, and with individual client companies. I can say without hesitation, that this has been my favourite case to teach in my 30 years in the classroom. The brand literally brings energy into the classroom and allows for an academic and practical discussion of key marketing concepts - from engaging consumers emotionally through experiences to strategically building the core concepts using product-brand portfolio stretch. It is a brand everyone knows, but also one few have thought about systematically from an operational perspective.”

Redbull Jets

On an inspiring subject...

He said: “It is simply incredible for students to appreciate what Red Bull has been able to do with a mere soft drink, and it challenges everyone to think about how they can formulate a consumer-centric purpose that inspires new ways of engaging current and potential consumers. Simply by reviewing their marketing approach and asking, 'How would this look for your brand?' has already inspired brands in the luxury, financial services and consumer goods space to behave differently.

“The case is also a ‘safe’ one to teach, as there is no right answer regarding the brand-stretch decisions. It allows students to appreciate inherent tensions in any such decisions, and how executing and monitoring a strategy with these tensions in mind is as critical as formulating the ‘right’ strategy in the first place.”

On case writing tips...

Nader added: “First, for me, a case typically starts with a compelling business situation that I have no easy or preconceived answer to. This is not only key to stimulating classroom discussion, but also to hold my attention throughout the writing process.

“Second, I have to be able to develop, for myself, a solid academic understanding of the forces at play. This provides the core of the teaching note and a way to crystallise key learnings.

“Third,  I was a presenter at The Case Centre’s webinar ‘The Ingredients of an Award-Winning Case’ where I summarised a three-act structure - setup, confrontation and resolution - that highlights the importance of context, strategic alternatives, and decision criteria. We also learn through stories, and this structure allows everything to hang together using a story narrative.”

Final word...

Nader concluded: “I have not only provided a detailed teaching note but also shared an extensive set of PowerPoint slides and engaging videos for instructors to use. These materials will allow instructors to pick and choose the slides and videos that will permit students to viscerally experience key topics and make memorable the key lessons they want their students to take away.”

INSTRUCTOR VIEWPOINT 

Instructor viewpoint

Discover how this case works in the classroom.

“Red Bull is a marketing powerhouse. It’s approach to content creation, and athlete and event management around not only extreme sports but also mainstream ones like football has revolutionised the sports industry.

“The case ‘Red Bull Spreads Its Wiings’ portraits perfectly its innovative marketing avenues and the synergies that Red Bull is able to create between very different products and markets like energy drinks, fashion and Formula 1.

“The case has always sparked a very passionate and intense discussion in my sports marketing class at the Munich Business School. It is a joy of a case to teach.”

Mike Marqués, Lecturer of Sports Marketing, Munich Business School.

THE CASE 

The protagonist

Read the case

Educators can login to view a free educator preview copy of this case and its accompanying teaching note.

CASE - Reference no. 522-0082-1
TEACHING NOTE - Reference no. 522-0082-8
TEACHING NOTE SUPPLEMENT SOFTWARE - Reference no. 522-0082-8B
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