Redbull F1: promotion through sports clubs and competitions
In the early 2000s, the energy drink market grew steadily, which brought a big profit to Red Bull even in a competitive environment. At that time, the main market of the company is becoming the United States, where the popularity of energy is growing steadily. In 2003, Red Bull controlled 67% of this market. Mateschitz did not forget about the original approaches of promotion and continued to invest in sports. One of the best-known Red Bull stocks at the time was the Red Bull Junior Team program. It was aimed at supporting young pilots participating in racing formulas. Some sources of the Red Bull Junior Team are called a real Formula One pilot school. This is not surprising, because its graduates were a number of well-known riders, including four-time Formula 1 champion Sebastian Vettel.
In 2003, the brand again loudly glorified Baumgartner. At that time, he flew over the English Channel without a motor using carbon fiber wings. The athlete jumped from a plane over Dover and, using special equipment, traveled from England to France. Baumgartner was the first person to achieve such a result. He, dressed in equipment with the title sponsor of Red Bull, saw people all over the world. Baumgartner in the 2000s set more than one record. Most remembered mentioned earlier jump from the stratosphere, carried out in 2012. Baumgartner rose to a height of 39 kilometers. Then he made a free fall, in passing becoming the first person to break the sound barrier without an engine. By the way, the parachute opened earlier than planned – at a height of 1.5 kilometers, which prevented Baumgartner from breaking the record for the duration of free fall set by the Soviet parachutist Yevgeny Andreyev in 1962. In 2004, Red Bull changed its approach to promotion through Formula 1. Mateschitz bought Jaguar Racing from Ford, which he announced at the competition in 2005 as Red Bull Racing. There is evidence that the amount of the transaction was symbolic and amounted to only one dollar. This was made possible due to the departure of Ford from the competition. Mateschitz received control of the racing team and promised to invest in it $ 400 million over three years.
Mateschitz did not lose, getting control of an existing team. The work was much less than if he had started everything from scratch, in addition already had the infrastructure and staff. Mateschitz also decided to engage in the created team of graduates of the Red Bull Junior Team and its American counterpart Red Bull Driver Search. Not all young pilots showed themselves from the best side, but the same Vettel Red Bull provided four championship and international prestige, and energy – high sales. On one team in Formula 1, Mateschitz did not stop and in 2005 acquired Minardi, in which he changed his name to Scuderia Torro Rosso (“torro rosso” means “red bull”). Initially, Red Bull received only 50% of the team, but in 2008 became the sole owner. This acquisition turned out to be necessary for Mateschitz as a kind of test team. There are gaining experience the young pilots, later moving into the Red Bull Racing (the same Vettel spent there in one and a half seasons). In addition, in the Scuderia Torro Rosso are tested a variety of developments for the main team.
It is worthwhile to consider in more detail the reasons that prompted Mateshitz to closely link Red Bull with Formula One. They work in different industries that are not in any way in contact with each other, but this is only at first glance. The main direction of promotion of Red Bull has always been an active and even extreme lifestyle. So, a racing competition in which pilots risk their health, and often their lives, is in fact echoed by the company’s philosophy. In addition, Formula 1 is most often watched by young people for whom Red Bull was intended. Successful Red Bull Racing actively appears in the news and has its own army of fans, and the power engineer Red Bull is strongly associated with its victories. Having invested about $ 1.6 billion into their teams, Mateschitz received a powerful advertising campaign, which, at first glance, does not seem at all to be a marketing ploy.
By the way, speaking of the “Formula 1”, it is worth mentioning that Red Bull owns one of the tracks of this prestigious race. It’s about the Red Bull Ring. In 2008, Mateschitz acquired the A1-Ring autodrome in Austria, which was closed in 2004. The entrepreneur did not spare the money and reconstructed the track. Since 2014, it hosts the Austrian Grand Prix. Mateschitz did not stop at Formula 1, making an investment in football and hockey clubs, car teams and a huge number of competitions. This entire sports empire is built with one goal – to promote the energy drink Red Bull and not allow competitors to lose the company from the throne. This is one of the most striking examples of the use of sports as a method of product promotion.
Each Red Bull sports team deserves a mention, but it’s worth starting with Team Red Bull, the racing team participating in NASCAR, because it is considered to be a failure in a series of successful initiatives. The team was created in 2006. Apparently, Mateschitz used it to promote the US market, which is profitable for the company. In the five years of its existence, it has not achieved much success, comparable to the same “Formula 1”. In 2011 it was closed, and the property was sold. The company owns the team Red Bull Racing Brazil, participating in the championship Stock Car Brazil. The company has owned it since 2007, and during this period it managed to win three tournaments.
Aston Martin Red Bull: why does Red Bull need a title sponsor?
The Red Bull Racing team finally confirmed the long-running rumors: from 2018, Aston Martin will become the title sponsor of the racing team. James Allen figured out how this deal is arranged, and what it means for Dietrich Mateschitz’s team. The Red Bull Racing agreement with Aston Martin reminds us of the previous title sponsor of this team – Infiniti. The Japanese automaker sponsored the racing team from Milton Keynes from 2011 to 2013, when Red Bull Racing dominated the championship.
Collaboration with Infiniti ended after the company Renault decided to return to Formula 1 with its own factory team. Brand Infiniti – as part of the Renault-Nissan alliance – passed to the French, and in the Red Bull Racing remained without a title sponsor. Perhaps the main difference between these two stories is that Formula 1 viewers understand what Aston Martin is – while in the case of Infiniti, part of the effort was simply to tell fans about the existence of this brand. Many motorsport enthusiasts did not know that Infiniti makes road cars. It is noteworthy that the two sponsorship agreement with Red Bull Racing concluded the same man named Andy Palmer. In 2011-2013, Palmer served as executive director of Infiniti, and now the Briton holds a similar position in Aston Martin. “We like the reach of the audience, which provides Formula 1,” said Palmer. – The sponsorship contract with Red Bull Racing is the next step of our cooperation after the start of the partnership in the field of development of road cars.
Palmer talks about the development of the Aston Martin Valkyrie hyper car — a car designed on the basis of the Red Bull team in Milton Keynes. Especially for the creation of this machine, the British company sent to the headquarters of its specialists, who began work under the guidance of the technical director of Red Bull Racing Adrian Newey. The sports car will be released in the amount of 15 pieces. Each copy will cost $ 2.6 million. The uniqueness of Valkyrie is not only in exceptional speed and power of 1000 horsepower, but also in the fact that each copy of this hypercar will be made taking into account the dimensions of a particular owner. All 15 cars have already been sold: Aston Martin and Red Bull know who will drive these cars, and at the design stage take into account the physical characteristics of each driver. Apparently, the Aston Martin Valkyrie should become a competitor to another hyper car, created with the use of Formula 1 technology. It seems that this is a new trend: companies have realized that there is a demand for cars connected with Formula 1. The participation of Adrian Newey will make Valkyrie even more attractive in the eyes of buyers. Aston Martin claims that the joint venture with Red Bull Racing allowed them to create 110 new jobs.
But there is one big problem in this story – engine
Red Bull Racing is still no competitive power plant for the next few years. In 2018, the team will continue to use units Renault, but at the end of the season, the French company will stop supplying the team with their engines. It seems that Red Bull will have to go to the Honda engines – a year after the Japanese units begin to use the Scuderia Toro Rosso. Sources claim that Honda has not changed the internal structure of its racing division, which means that the specific way of managing and the peculiarities of the mentality will still prevent Honda from creating a powerful and reliable engine capable of winning the Formula 1 race. “Honda will directly depend on whether the Japanese will allow the Japanese to intervene in the development of their engines or their trusted representatives, such as, for example, Mario Illyen. Only in this case, the partnership with Honda will become an option that is really attractive for the team of Dietrich Mateschitz.
Right now in Formula 1 there is discussing how power plants will change in the coming years. Championship Sports Director Ross Brown would like to simplify the engines. An effective measure could be the abandonment of the obligatory use of MGU-H thermal generators — a very expensive and complicated component that often breaks. However, Motorsport.com sources indicate that automakers insist on maintaining MGU-H in the 2021 regulations. The complexity of the current regulations keeps Aston Martin from joining Formula 1 as an engine supplier. “We are interested in discussions about the future of power plants in the world championship, but our company will be able to come to Formula 1 only under certain circumstances,” Palmer warned. – We are not going to engage in battle with other motorists without any restrictions on budgets and the number of hours that can be spent on testing at the stand.
Since Aston Martin is not going to build power plants on its own, this means that this issue will remain the responsibility of Red Bull Racing. At least until 2020, the engines will remain the weak point of the Austrian team – and this, in turn, could trigger the departure of the current racers, Daniel Riccardo and Max Verstappen. In 2021, the technical regulations should change. In theory, this will create conditions for the arrival of independent producers in the championship – such as Cosworth, who has been designing Formula 1 engines for many years. In the meantime, Red Bull owner Dietrich Mateschitz has to increase investment in the team. If in 2013 the Red Bull company spent only $ 10 million per team, now the head company’s investments are estimated at $ 40 million per year. These figures are the reason for the current contract with Aston Martin. Mateschitz decided to reduce the cost of Red Bull Racing, and therefore instructed the team to find a title sponsor. If in 2019 Honda will provide Red Bull with a failed power plant, and the new rules will not help the FIA to attract new suppliers for the 2021 season, Mateschitz may well think about closing his own team. In Red Bull have repeatedly talked about such a scenario, but this time the threat may become a reality. This can be hindered by the growing involvement of Liberty Media in race management. The new owners of Formula 1 intend to increase the proceeds of the World Cup and reduce costs for the participating teams. If Liberty will reduce costs and bring to the viewing of the Grand Prix young audience, the Red Bull simply will not remain the reasons for an emergency withdrawal from Formula 1.