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Case Details:

Case Code : MKTG141
Case Length : 21 Pages
Period : 2001-2006
Organization : Red Bull GmbH
Pub Date : 2006
Teaching Note : Available
Countries : Austria, UK, USA
Industry : Beverages

To download Lakme Fashion Week and Wills Lifestyle India Fashion Week: Fission in Indian Fashion case study (Case Code: MKTG141) click on the button below, and select the case from the list of Available cases:

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Dietrich Mateschitz was born in 1944 in Austria, to parents who were primary school teachers. After graduating with a marketing degree from the University of Commerce in Vienna, he took up marketing jobs at Unilever and Jacobs Coffee, before becoming the international director for marketing at Blendax, a German company that dealt in FMCG products like toothpaste, skin creams and shampoos, in 1979. Mateschitz's job involved a lot of travel around the world, and during one of his trips to Thailand, he discovered an 'energy drink' called Krating Daeng, which was very popular among blue collar workers in the country.

When he sampled it, Mateschitz reportedly discovered that the drink was good at combating jetlag. The idea for marketing an energy drink in Western markets came when he realized that energy drinks had a huge market in Asia and that there was no such product available in Europe.

These events were major attractions and were considered crucial for the business of fashion. Fashion weeks served as a platform for the entire fashion industry to display the upcoming seasons' collections to trade buyers (retailers, buying houses, wholesalers, etc.), the media, and individual customers. The central idea behind a fashion week was to showcase representative samples to the trade - quite unlike individual 'couture' fashion shows which tended to be more social/theatrical in nature. The 'all-business' nature of fashion weeks makes them popular among buyers who attend them to preview, plan, and order their lines for the next season.

Mateschitz approached Chaleo Yoovidhya (Yoovidhya), the owner of TC Pharmaceuticals, which made Krating Daeng, with a proposal to market the beverage in Europe. Yoovidhya agreed to give Mateschitz the foreign licensing rights to the drink in return for a partnership in the venture. In 1984, Mateschitz resigned from his job to pursue his new business.

Mateschitz and Yoovidhya each invested $500,000 to become equal partners, with a 49 percent stake each, in the new company. The remaining two percent was held in trust for Yoovidhya's son. The founders agreed that Mateschitz would run the company, while the Thais remained sleeping partners...

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