Part 4/9:
What distinguishes Red Bull from its competitors, such as Coke and Pepsi, is its unique business model. Mateschitz molded the company into a firm concentrating on marketing and sales while outsourcing production and logistics. This strategic choice enables Red Bull to make a significant profit margin by selling each can for approximately 3.59 USD while producing it for around 9 cents.
The mammoth pricing strategy relies heavily on brand power, shaped through aggressive marketing. The beverage's image as a premium product is a direct result of Mateschitz’s efforts to create a culture around the brand—an endeavor that transformed a simple energy drink into a lifestyle icon.