Genius Marketing: Horner Explains Why Red Bull Needs An F1 Team

Sunday, 14 January 2024 at 01:00

Why is an energy drinks company like Red Bull competing with the greatest car manufacturers in the World in F1? Christian Horner has an answer.

Formula One is also called the pinnacle of motorsport. It is the competition for the fastest cars, the best drivers, and the best car manufacturers in the World.

In the last two years, the Constructors' World Championship has been won by energy drinks company - Red Bull. The team from Milton Keynes has dominated the 2022 and 2023 seasons. But why are they even in F1? Christian Horner answered this question in an interview for CNBC.

“"Well, because I think the shareholders, they’ve always been passionate about racing and Formula 1, and they saw it as the perfect platform to market their brand."”

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Red Bull's marketing strategy is based on associating with extreme, high-energy, high-profile sports. When it comes to these sports, F1 is definitely on the list. Horner continued:

““It’s the most-viewed sport in the world outside of the Olympic Games and the football World Cup. But of course, they only happen every four years. Formula 1 is every two weeks."”

Instead of putting money into a TV or social media marketing campaign to raise brand awareness, Red Bull decided to spend it on the F1 team - a genius move.

“"So the global reach that we’re achieving, the followers that we have, it’s the best possible way, not just for Red Bull, but for any partner associated with us to promote their brand."”

Red Bull had to invest hundreds of millions into the Formula One team. However, the investment has firstly come back in the form of brand awareness, and secondly, the team has become a separate unit that now makes hundreds of millions of dollars in profit by itself.

So not only does the Red Bull Racing team generate an incredible amount of awareness with their name being mentioned in millions of articles and videos, but they also now make money from the F1 team. Horner added:

“"In terms of the recognition for the brand globally, what that would cost to advertise, absolutely it’s a huge success in the amount that it’s promoting the Red Bull brand."”