---
title: "Red Bull: Where Is It Heading Amid Internal and External Troubles?"
description: "Red Bull China is facing a trademark expiration crisis since the end of 2016, compounded by rumors and panic among its sales and distributor teams. The company's actions, including layoffs and new product launches, suggest it may be struggling, and its lack of public relations and marketing strategy could further undermine its position in the functional beverage market."
author: "老纳、肥鱼"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-04-03"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/red-bull-where-is-it-heading-amid-internal-and-external-troubles-f844eccb/"
markdown: "https://xinjignxiao.com/en/articles/red-bull-where-is-it-heading-amid-internal-and-external-troubles-f844eccb.md"
original_source: "https://mp.weixin.qq.com/s/0ptGgCRacBapDU3I3gqhYA"
translation: "https://xinjignxiao.com/zh/articles/%E7%BA%A2%E7%89%9B-%E5%86%85%E5%BF%A7%E5%A4%96%E6%82%A3%E4%B8%8B%E8%B5%B0%E5%90%91%E5%93%AA%E9%87%8C-f844eccb.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/red-bull-where-is-it-heading-amid-internal-and-external-troubles-f844eccb/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Red Bull: Where Is It Heading Amid Internal and External Troubles?

> Red Bull China is facing a trademark expiration crisis since the end of 2016, compounded by rumors and panic among its sales and distributor teams. The company's actions, including layoffs and new product launches, suggest it may be struggling, and its lack of public relations and marketing strategy could further undermine its position in the functional beverage market.

Where is Red Bull heading amid internal and external troubles?

I
At the end of 2016, Huabin Red Bull fell into the dilemma of trademark expiration, but even greater than this dilemma were the overwhelming rumors and panic from the sales team and distributor team.
Some might say this could be Red Bull's hunger marketing, using the trademark expiration event to clear inventory, then pressure distributors and retailers to stock up more, and then raise prices.
However, judging from Red Bull's series of actions, it doesn't seem like hunger marketing. First, layoffs are still ongoing, with downsizing across regions; second, during the Spring Festival, they heavily promoted Frupid (果倍爽), and after the Spring Festival, they heavily promoted Maxra (战马); finally, the resumption of Red Bull production has been delayed repeatedly. These actions all hint to the team and distributor partners: Red Bull, I can't keep going.
Hunger marketing mainly targets consumers, stirring various elements in their hearts to create a must-buy desire. Although Red Bull is a leader in functional drinks, it clearly doesn't have the attribute of being irreplaceable. When consumers can't buy Red Bull, they won't say they won't drink anything else; they will naturally choose other substitutes, which benefits the cultivation of Red Bull's competitors and alternatives.

II
The Red Bull team has strong execution, but marketing is not Red Bull's strong suit. For example, we know Wahaha's joint sales system, Coca-Cola's 101 system, Master Kong's fine management, Nongfu's provocative marketing, JDB's positioning theory, and Uni-President's new product marketing, but what can we think of for Red Bull? The leader in functional drinks, monopoly, advertising.
Red Bull's exposure in China, besides its own brand sponsorships, relies on some of the light from Thai Red Bull. With the launch of the new product Maxra, Red Bull's weakness in marketing is even more exposed. Logically, whether the Red Bull brand can continue or not, launching new products at this time is a necessary and inevitable choice. At this point, whether it's "Frupid" or "Maxra," they should follow an "open strategy" rather than a "hidden strategy."
An open strategy means telling all distributors under the sun that I will focus on new products in the future; telling this group isn't enough, I also need to tell consumers that Maxra is Red Bull, and Red Bull is Maxra. At this time, you need to do more than just hold the first distributor conference for China Red Bull, because at that time, who among the distributors would care about your new products? They are more concerned about whether I can continue with the Red Bull trademark; more importantly, you need to heavily advertise your new products in the media, telling consumers "Maxra is here," and the future of functional drinks belongs to Maxra.
Instead, it's like now, where the media discovers you're launching Maxra, and the distribution rate is not high, and terminal exposure is poor, giving the feeling of sneaking around, as if afraid people will know Red Bull is launching Maxra. As for the slogan "Combat power, coming right up" (战斗力,马上来), it really makes Maxra look even more like a knockoff.
Currently, functional drinks that sell well have names with some associative power. Red Bull goes without saying: a red bull, looks powerful, because legend says bulls go crazy when they see red, and replenishing energy is like crazy power; Heika (黑卡), a black energy card, black is mysterious, card is energy; Dongpeng (东鹏), the great roc soaring ninety thousand miles, also symbolizes energy; the name Maxra itself represents energy, but your "Combat power, coming right up"—what does that mean? Turning Maxra, a rational and imaginative living creature, into such a nonsensical phrase is truly surprising.
Your current advantage is the Red Bull brand, so you should squeeze Red Bull dry in the limited time, bind Red Bull and Maxra together, and make consumers realize the two are the same. Even if you made a POP with Red Bull wearing Maxra on its head, I wouldn't criticize you; at least you're leveraging Red Bull.
But the reality is, except for people in the FMCG industry who know Maxra is Red Bull's, and that Maxra may replace or supplement Red Bull, consumers don't know. In consumers' eyes, it's just a knockoff.
**It is precisely because of this that Red Bull's competitors feel Red Bull is just a paper tiger; once it loses its label, anyone can come and bully it.**

III
The main factor that has left Red Bull mired in rumors and panic is: **lack of public relations.**
Don't think Red Bull is aloof and doesn't do PR; it's because traditional FMCG companies are not good at PR and don't know how to do it. They have always believed that maintaining distance from consumers preserves their mystery, and getting too close to consumers would reveal their secrets. So these big companies stay away from PR.
This is a common problem for large enterprises, so they suffer greatly in this era of self-media. For example, Arawana (金龙鱼) is basically seen by consumers as a threat to the Chinese people; Wahaha's products are considered toxic by consumers; and Red Bull has repeatedly missed opportunities to get closer to the public.
Since the news of Red Bull's trademark expiration broke in 2016, apart from a fake news story by Food Plate (食品板) to grab headlines, we have seen no PR actions from Red Bull.
Even if you held a meeting and told employees: "You've heard some rumors; we will face difficulties, but we must unite to overcome them. We won't lay off anyone, and if we meet next year's targets, we'll increase rewards."
No, they lay off as planned, downsize as planned, and the newly released marketing structure doesn't give employees any hope of high salaries, and they abolished the positions of "office senior director" and "city manager," claiming to reduce management layers, but frontline staff see it as disguised layoffs.
The whole world is talking about Red Bull's first distributor conference. Yes, Red Bull China's first distributor conference in 20 years—does that show Red Bull's management arrogance or their unique management style? **When all FMCG eyes are locked on you, even if you don't comment on the trademark renewal, you should at least release a bunch of press releases about Maxra and Frupid.**
No, our Red Bull remains silent as gold. Do you think this matter will pass quickly? Impossible. Ask the distributors; who didn't spend the New Year with a heavy heart, and they're still heavy now.
Red Bull's current state is basically: no admission, no defense, no communication. Let suspicion come more fiercely, let doubt come more fiercely, let rumors come more fiercely; I, Red Bull, am a standing man.
I admire your personality. Look at declining brands; they all have a mysterious face and aloof arrogance. Who would have thought that Huabin Red Bull, after 20 years, still promotes the story of how the boss went from a poor guy with only 85 yuan in his pocket to a billionaire today? Buddy, can't you promote VOSS, write about Vitacoco, or talk about Frupid? **Is it so hard to open your heart to consumers, terminals, and distributors?**

IV
Compared to internal troubles, external threats are more normal. Which industry leader doesn't get attacked? Who doesn't want to kill the leader and take its place? **Small brands can only make consumers aware of themselves by tying themselves to the leader.** But attacks need to be skillful. We can criticize their marketing deficiencies, lack of innovation, inability to break through bottlenecks, the death of big single products, and poor distributor management—these are all within normal marketing scope.
But obviously, such attacks are too professional and may not be effective. So now it's popular to sling mud and elevate oneself. The most aggressive in this regard is Dali Group.
Perhaps because the JDB and Wanglaoji battle wiped out Heqizheng, they can't miss the functional beverage market this time. Originally thought Fujian enterprises' three treasures were "imitation, advertising, and endorsements," but now they may have learned internet rumor tactics.
**On one hand, they say the contract between the two parties will be prolonged; on the other, they say the goods produced in February and March will be returned. Which statement can you believe? Or do they not understand the idiom 'prolonged'?** Remember, Red Bull's lawsuit against Wei Tingjian's Red Bull nutrient solution took 7 years. How many years will this cross-border lawsuit take? Moreover, Huabin and Thai Red Bull have supplementary agreements, so they continue production; also, when you talk about others' contracts, you should refer to the latest agreement. Let's not even discuss how you know about these agreements—maybe there's a mole. But I think there are two types of contracts: one signed for 20 years, taking 40% of profits; another signed for 10 years, with an annual trademark licensing fee of 800 million yuan. How can you end up with over 3 billion in profits? And you add the amounts of these two agreements together? Is there any logic?
It's unbelievable that a public account can publish an article full of speculation and unreliable information.
"Respect for the enemy is respect for oneself" and "Marketing is not tearing apart Japanese soldiers." Look at Dongpeng's performance: first, they became the leader in bottled functional drinks; when they saw an opportunity, they launched a gold can; their slogan "Tired, sleepy, more young people choose Dongpeng Special Drink" is a bit copycat, but they have positioned themselves as a youthful brand with a clear appeal. Their little gimmicks for new product launches are also worth learning.
But Dali, you're not a small company. If an unknown small company promoted like this, we wouldn't care, because they lack marketing ability and it's better to tie themselves to the leader. But you're a listed company; why use such tactics? And this year, aren't you mainly promoting "Doudouben"? I don't see you paying much attention to Lehu.
Let's talk about marketing again. Although I think Red Bull's marketing is a bit poor, at least they're professional. You hold meetings and use Word for reports—how can you compare? They held their first distributor conference in 20 years, and you hired your first external executives. This year, Haoliyou was boycotted in the national patriotic wave, which is more damaging than Red Bull's situation, but I didn't see Dali's egg yolk pie replacing it. You say Red Bull will have trouble with returns, but it seems you're not easy either. Multi-category companies often send goods that distributors don't want.
**Do your basic marketing actions well; don't use distributors' ignorance to intimidate them. Don't say that representing a certain brand doesn't make money just to grab distributors.**
Indeed, Dali Group's terminal display, image, and sales have improved this year, and it's clear they've brought in professionals. But any parachuted executive with their own system and aura finds it hard to gain full trust from the company. If they're too capable, they fear taking the old employees' jobs; if they're not capable enough, they feel they're at a loss. They always give high salaries to the recruited executives, but for the rest, they let the recruited person figure it out, as long as they don't pay high wages. What can professional managers do? Recruit old subordinates? The salary doesn't allow it. Not recruit? The company wants immediate results. These are all pits dug for professional managers.
Of course, we should also see Dali's changes, at least they've started hiring external professional managers. As a company that follows a strategy and has higher profits than Uni-President and Master Kong, Dali has its own merits worth learning.
But the FMCG ship is already so difficult; don't throw sand into it. If the leader dies, there are still the second, third, and fourth. What you need to do is do the basic actions well; otherwise, when the opportunity comes, you may not be able to seize it.
**The most basic principle of marketing should be respect for opponents.**
I've basically offended all companies by writing this article. Those who understand will consider their own problems from a marketing perspective; those who don't will think it's to smear the companies. In such a special period, FMCG companies should think about how to exert effort in marketing and PR, do themselves well, and give the industry a glimmer of hope. If everyone still stays in the era of traditional marketing and mutual backstabbing, then FMCG companies are truly not far from death. Every day, I see so many FMCG people leaving or being laid off. They once had dreams like me, worked hard, and toiled for the company day and night, but in the end, they got departure. Those who made wrong strategies are not them; those who engaged in sycophancy and gift-giving are not them, but they have to pay for the outcome. I'm 36 this year. I don't know what I'd do if I lost my job. If I go to the internet industry, they say no one over 34; if I start a business, it's the era of the post-90s; if I do training, I'm just a frontline worker, who would believe my experience? It's a young person's world now. All I can do is try to keep the FMCG ship afloat. Although my ability is limited, I've struggled. That's it.
When the avalanche comes, every snowflake must take responsibility.
-END-


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671