It has been embroiled in a public health scare that has seen a slew of negative headlines about its products being withdrawn. Even worse, the scandal has involved illegal narcotics. And all the while, it has protested its innocence.
Its problems began last month after the Austrian drinks maker’s Red Bull Simply Cola product was pulled from shelves in parts of Germany following a study that showed it contained minute traces of cocaine.
In Asia, the Taiwanese health authorities then believed they had found traces of cocaine in batches of the popular energy drink. Up to 18,000 cases of Red Bull products were subsequently confiscated. In Hong Kong, Red Bull drinks were also pulled from the shelves of several supermarkets and convenience stores for testing.
Red Bull took a strong PR stance against the allegations, publicly arguing that the health authorities in Asia were mistaken and that there could be no traces of cocaine in the energy drink. The cola which had contained the drug in Germany is not sold in Asia.
The authorities in Hong Kong ultimately determined that cocaine was not detected in 68 samples of Red Bull products obtained from local retail outlets and traders, while overall results did not reveal any problems.
But will the negative headlines work against the brand? Red Bull is synonymous with sports and lifestyle marketing, and has made extensive use of sports sponsorship opportunities. With ties to Formula One, extreme sports, football, golf and the Chinese martial art of wushu, among others, the narcotics link could damage some of its associations with an active lifestyle.
On the other hand, Red Bull is used as a mixer for alcoholic beverages across Asia. Another argument is that the drug-related storm could boost the brand among some of its customer base. In Europe, for example, pub and club bosses around Germany are claiming that sales of the banned drink have quadrupled since the storm broke.
Milo Chao, head of strategic planning, DDB Hong Kong
Red Bull is arguing that it was the authorities who were ‘confused’, mixing up shipments of the drink here with another beverage suspected, in Germany, to contain traces of cocaine.
Curiously, this incident may help to deepen the imprint of the brand essence and enrich the pages of its brand mythology. Amped-up fans often refer to Red Bull as ‘legal speed’. Mixed drinks containing it have names such as ‘liquid crack’.
It should turn the controversy to its advantage. Plant seeds of confusion and provocation. Employ online seeders to fuel a debate. Question the authenticity of the case: ‘It’s just a publicity stunt, right?’ Cultivate believers and non-believers. Drip-feed both sides evidence to support and confuse those beliefs through blogs, Twitter, YouTube, Facebook, iReport, bartenders and barflies.
Sometimes, a brand’s greatest weapon is ambiguity. It provokes curiosity and inspires imagination. We are all innately curious problem-solvers looking to resolve the mysteries of our personal universe. Incited by titillating confusion, our nature propels us into that mighty rumour-mill of word-of-mouth.
So, mix up some vodka, orange juice and Red Bull to create a little buzz-inducing ‘confusion’.
Yihwa Hwang,general manager, Euro RSCG 4D Field Force Taiwan
Red Bull launched in Taiwan five years ago with a simple televsion commercial, and has largely disappeared from mainstream media since.
The only real public appearance of the brand since then was in 2007, when Felix Baumgartner jumped off the Taipei 101 building carrying a wing-shaped parachute showing the Red Bull logo. It is a brand that has relied heavily on word-of-mouth ‘buzz’ marketing centred on nightlife channels. Its target demographic may even feel that the cocaine incident has added to the brand’s edgy appeal.
However, Red Bull was recently preparing a campaign to enter the mainstream health market. This plan came to a sudden halt following the incident.
There are two ways forward. First, it can hold its breath until the product gets clearance for a relaunch, and then continue with its word-of-mouth marketing strategy. The second is to launch a campaign aimed at the health-conscious energy drink segment. However, its lack of image in the mainstream besides the recent negative publicity, in addition to its ‘dangerous’ image among clubbers, means that it would cost unimaginable resources to rebuild the brand from scratch.
Got a view?
Email [email protected]
Its problems began last month after the Austrian drinks maker’s Red Bull Simply Cola product was pulled from shelves in parts of Germany following a study that showed it contained minute traces of cocaine.
In Asia, the Taiwanese health authorities then believed they had found traces of cocaine in batches of the popular energy drink. Up to 18,000 cases of Red Bull products were subsequently confiscated. In Hong Kong, Red Bull drinks were also pulled from the shelves of several supermarkets and convenience stores for testing.
Red Bull took a strong PR stance against the allegations, publicly arguing that the health authorities in Asia were mistaken and that there could be no traces of cocaine in the energy drink. The cola which had contained the drug in Germany is not sold in Asia.
The authorities in Hong Kong ultimately determined that cocaine was not detected in 68 samples of Red Bull products obtained from local retail outlets and traders, while overall results did not reveal any problems.
But will the negative headlines work against the brand? Red Bull is synonymous with sports and lifestyle marketing, and has made extensive use of sports sponsorship opportunities. With ties to Formula One, extreme sports, football, golf and the Chinese martial art of wushu, among others, the narcotics link could damage some of its associations with an active lifestyle.
On the other hand, Red Bull is used as a mixer for alcoholic beverages across Asia. Another argument is that the drug-related storm could boost the brand among some of its customer base. In Europe, for example, pub and club bosses around Germany are claiming that sales of the banned drink have quadrupled since the storm broke.
| FACT BOX |
| - Taiwan officials confiscated nearly 18,000 cases of Red Bull imported from Austria after claiming it contained traces of cocaine. - Hong Kong’s two largest supermarket chains, ParknShop and Wellcome, also pulled the energy drink from their shelves after Government officials said they had found the drug in samples taken in the SAR. |
Milo Chao, head of strategic planning, DDB Hong Kong
Red Bull is arguing that it was the authorities who were ‘confused’, mixing up shipments of the drink here with another beverage suspected, in Germany, to contain traces of cocaine.
Curiously, this incident may help to deepen the imprint of the brand essence and enrich the pages of its brand mythology. Amped-up fans often refer to Red Bull as ‘legal speed’. Mixed drinks containing it have names such as ‘liquid crack’.
It should turn the controversy to its advantage. Plant seeds of confusion and provocation. Employ online seeders to fuel a debate. Question the authenticity of the case: ‘It’s just a publicity stunt, right?’ Cultivate believers and non-believers. Drip-feed both sides evidence to support and confuse those beliefs through blogs, Twitter, YouTube, Facebook, iReport, bartenders and barflies.
Sometimes, a brand’s greatest weapon is ambiguity. It provokes curiosity and inspires imagination. We are all innately curious problem-solvers looking to resolve the mysteries of our personal universe. Incited by titillating confusion, our nature propels us into that mighty rumour-mill of word-of-mouth.
So, mix up some vodka, orange juice and Red Bull to create a little buzz-inducing ‘confusion’.
Yihwa Hwang,general manager, Euro RSCG 4D Field Force Taiwan
Red Bull launched in Taiwan five years ago with a simple televsion commercial, and has largely disappeared from mainstream media since.
The only real public appearance of the brand since then was in 2007, when Felix Baumgartner jumped off the Taipei 101 building carrying a wing-shaped parachute showing the Red Bull logo. It is a brand that has relied heavily on word-of-mouth ‘buzz’ marketing centred on nightlife channels. Its target demographic may even feel that the cocaine incident has added to the brand’s edgy appeal.
However, Red Bull was recently preparing a campaign to enter the mainstream health market. This plan came to a sudden halt following the incident.
There are two ways forward. First, it can hold its breath until the product gets clearance for a relaunch, and then continue with its word-of-mouth marketing strategy. The second is to launch a campaign aimed at the health-conscious energy drink segment. However, its lack of image in the mainstream besides the recent negative publicity, in addition to its ‘dangerous’ image among clubbers, means that it would cost unimaginable resources to rebuild the brand from scratch.
Got a view?
Email [email protected]
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