The brand has hired TBWA-ISC to help change market perception of the category following a two-way shootout against incumbent J. Walter Thompson, which held the account for two years. The account is estimated to be worth RM4 million (US$1.1 million).
Red Bull executives say the brand is currently perceived as a "top-up solution when people feel lethargic, a perception that is hampering sales growth in Malaysia's RM100 million energy drinks market. They add that this perception of energy drinks stems from rival companies such as Taisho Pharmaceutical, the maker of Livita, which was the first to enter Malaysia and has highlighted the supposed medicinal value of energy drinks by playing up vitamin and mineral contents.
At this stage, it is unclear how Red Bull will tackle the communications challenge. What is clear is that Red Bull will continue to be marketed differently in Malaysia, where a strong Muslim influence prevents its association with alcohol. In countries such as Australia, Red Bull is pitched at nightclub goers who mix it with vodka to provide an energy fix for them to party through the night.
Malaysia's Muslim influence aside, executives also believe that Red Bull can achieve greater sales if it is consumed on its own rather than as a mixer with alcohol.
This strategy has resulted in Red Bull being sold in convenience stores, with students, motorists and athletes being its biggest consumer group.
The brand has also developed a strong association with sport motor sports in Malaysia, sponsoring the Four-wheel Drive International Challenge, the Malaysian Club Prix Championship, a motorcycle race; and the Malaysian National Motorsport Month.
