Red Bull's $30B Playbook!

The founder of Red Bull didn’t get his start until the age of 38 and was able to amass a net worth of $30,000,000,000. Now his son is receiving $615,000,000 dividends annually. Here’s the exact playbook he used and how you can copy it ????

Dietrich Mateschitz was on a business trip in Bangkok, Thailand when he stumbled upon a non-carbonated energy tonic called Krating Daeng, which directly translates to “Red Bull”.

After discovering this unique drink, he decided to work with the founder, Chaleo Yoovidhya, to add carbonation and bring it to the Western market.

Decades later Mateschitz would go on to build Red Bull into a global brand that owns soccer and formula 1 teams, sponsors extreme sports, and even sends someone to skydive from space.

Here’s the playbook Mateschitz used to build the Red Bull empire:

#1 Extreme Product and Marketing Differentiation

Red Bull invented a brand new beverage category at a premium price, different from all other sodas and beverages at the time.

Even their slim bottle was entirely new and innovative - nobody had ever seen a drink like this before.

Mateschitz knew the #1 most dangerous thing for a consumer product isn’t push back, but rather low interest.

Because of this, he would let wild rumors spread about the drink, such as people believing it was made from amphetamines and even bull testicles.

Mateschitz was an experienced marketer, and knew that if he wanted people to spread the word about his product he would have to take to the extreme.

So instead of running traditional print or television ads, Red Bull would opt for methods that were hyper shareable and memorable.

He would give away products for free (which other brands scoffed at, at the time), host extreme sport events, and pull crazy stunts.

Even if people didn’t like the product, they were compelled to talk about it.

These outrageous events began to get covered in other media, effectively multiplying their advertising and marketing spend for free.

#2 Leverage Core Competencies

Red Bull knew what they were good at, so they specialized in marketing and outsourced other functions, adopting an asset-lite approach.

They focused intensely on maintaining a single, strong brand identity, resisting offers to diversify into products like gummies or underwear.

Economics in the consumer goods industry is essentially a battle for attention, and Red Bull throws more material into this battle than all of their competitors.

#3 Long-Term Thinking

Mateschitz embraced a motto of no debts to banks, only accepting minor financing in their second year of business.

He knew that in order to live, you must first survive.

To ensure longevity, Red Bull continuously reinvested 100% of the profits and didn't pay out dividends for 15 years, with Mateschitz living off just his salary to keep the company debt-free.

Mateschitz also loved what he did.

The goal wasn’t to just to maximize profits, but to achieve freedom and independence.

He believed that if you love what you do, it doesn’t feel like work.

For him, the journey is the destination.

“I don’t want to go to the summit to stand at the top but to do the climb up.”

At 70 years old, he was still fit, active, and when asked about his plans to retire, said, “I’m having more fun than ever!”

Here’s how you can use the Red Bull playbook to find your own success:

1. Innovate and Differentiate: Establish your brand by innovating a unique product and engaging in unconventional, hyper-shareable marketing tactics.
2. Stay Focused and Outsource Wisely: Concentrate on your core strengths, outsource non-core activities, and avoid diluting your brand identity with unrelated product lines.
3. Embrace Long-Term Planning: Opt for sustainable growth by avoiding debt, reinvesting profits, and prioritizing long-term goals over quick gains.
4. Find Joy in the Journey: Love what you do and pursue freedom and independence over profits.

By stealing a page from Red Bull’s unique playbook, you too can create the next iconic global brand.