YouSaid · the spoken record

Dietrich Mateschitz

lines on the record: 20
first: 2024-01-08
most recent: 2024-01-08
sittings or episodes: 1
sources: podcast

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“In his product to the end of his days. And so even after 50 failed attempts or having this conversation and where they're like, well, anybody that drinks Red Bull becomes damn strong. So that's the conversation they're having. That's how they were thinking about it. It's like, well, you drink it and you become strong. Like, what's the right tagline or motto for that? And in the middle of the night, Castor has the idea that Red Bull gives you wings. And so he calls master in the middle of the night and immediately master is like, yep, that's it. So it was a fact that that was a good idea was immediately obvious to both of them. The thing about how crazy that issue, fighting for a year and a half, going through 50 things, he calls you hear it. You're like, yep, that's it. Let's go. And so now they had the branding and the tagline. They wanted the advertising to be, this is the traits that they were looking for. They wanted it to be self-ironic, non-conformist, smart, and rebellious. And their point was that that's how they viewed their own personality. And so they're like, we're going to put a lot of our own personality into this. And so now they're up and running five years.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Its potential. And he said, if this is pursued consistently, this idea will lead to success. So again, Meshus is very self-confident, has a ton of, as you can imagine, has a ton of self-confidence in himself. And the idea that he's doing, but it is very helpful for other people, especially people that you trust and admire, because he said Kastner was a very clever fellow and he knew that he was a perfectionist like me. And so you have somebody like that that you know is smart, that you admire. you trust their judgment and they're like no you know everybody else might be telling you this bad idea but if you pursue this consistently you give it like it will lead to success and so Kastner was talking about this time he's like listen this the birth of this campaign was not easy because for a year and a half he just rejecting every single suggestion that I have I think they went through 50 different you know ways to either slogans or ways to market it matches rejects every single one of them but Kastner understood his friend he says he wants the absolute best he believed”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“called Kastner and Partner. So Kastner is going to play a very important role because he's the guy that comes up with the slogan Red Bull Gives You Wings. Now here's I think a testament to how unique Masters is. He doesn't have any money, but he's also a perfectionist. And so he keeps turning down over and over and over again all the different marketing and advertising campaigns that they're trying to come up with. And you're like, well, how could he be doing that, David? Like he has no money. All this time is going by. I think it's like a year and a half that they're working on this till they finally figure out how the positioning and the actual initial launch of the marketing and advertising. And so he actually paid for this initial work with labor. He had no money. So he actually helps out in the agency as a freelance employee just to pay for the marketing and advertising that the advertising agency that his friends started is doing on behalf of Red Bull. Another important point everybody's telling this is a bad idea. His friend immediately recognized.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Burn the boat's mentality. He wanted to go high end from the start and he knew that there was no market for this. So he had to create one. And so he talked about the great personal risk that he did in starting the company. He says, if things had gone wrong, I'd be sleeping under a bridge today. And so he talks about his decision to have a high price product plus use a lot of that revenue from people spending more money on it to actually reinvest into advertising. Red Bull was to become very expensive and it was a new product for which there was not even a market yet. So it was necessary to create demand first. Potential customers had to be explained why they now desperately needed Red Bull, which they had not even known existed before. And so one of the things that he does that's very unique that I don't know if I've heard before is he hires an advertising firm from the very beginning. He calls him his former study buddy. So I'm assuming that this is his friend from college. This guy named Kastner. At this time, Kastner was already a founder of an advertising agency.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Made more of her product to give away, and this is what she said about that you give people a product a try. If they like it, it's quality, then they buy it. They haven't been lured in by an advertisement, but convinced by the product itself. We took the money we had planned to use on advertising and invested it instead in enough material to give away large quantities of our product. It was so simple that our competitors sneered when they heard what they were doing. Today, they're all copying us. And so Madischitz knew he needed more money. He went to a bunch of banks. They all said, no, only one. There was a small private bank. Oh my goodness. Spangler, I'm butchering these words, but this bank called, I'm going to call it Spangler, was the only one to actually believe in the product and the concept behind it. And so they actually lent him money. Now, this is another main theme that's repeated over and over again. Massachusetts is excessively loyal. And so to this day, that is the only banking house. That Red Bull used in that country. This is where they get the...”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“In a single small market, and for nearly five years, he was able to run experiments and really improve the product, but also figure out the marketing and the messaging because he's only in a single small market. So I think he launches in 1987 in Austria and doesn't launch to his second market until 1992. So they're launching in just one small market. They don't have a lot of money. They just put up $500,000 each. It's not like Matchitz has any other money. And so when sales didn't take off, he did something that was really smart. He invested some of that money instead of an advertising at the very beginning. He actually made more of his product and he would bring it and deliver it to places by palette and let people try it and drink it free of charge. This is very similar to one of my favorite entrepreneurs of all time is Estay Lauder. And in the early days of her company, which she also started when she was 40, I just realized that now she actually took money out of her advertising budget. And instead,”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“To try to raise money, but he says there is no market for Red Bull. We will create one. And there's this great line in the English translation of this German biography where it says rarely in the world of business has such a bold announcement been implemented into reality like this one. And so creating your own market is also not only do you have to educate the potential customers, but then you have to deal with all the regulators. And so he tries to set up shop in Germany. They didn't even know what the hell energy drink was. And so he had to, he applied for what was going to be the first ever Europe-wide approval of a new type of indulgence, which is the energy drink, right? As you might imagine, European bureaucracy is not known for fast approval time. So he's waiting over a year to try to launch just in Germany. He gets extremely frustrated. So then he winds up packing his bags and going to Austria. And he's like, I'm just going to launch in Austria. There's a lot of benefits from that. But it also, one of the main benefits is he launched.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Also produce and bottle that tonic drink, that uncarbonated version of what will become Red Bull. And he pitches them on the idea of them giving him the license to distribute that drink and then add carbonation outside of Asia. And this is when they do that partnership where they both agree to put in $500,000 and then carbonate and then sell this drink in the West. One main theme that runs through this entire story that's very obvious when you read about him, whether you read articles, a book, anything you come across, he has profound, profound self-belief. Because when he's 41, he quits his job and starts his first company and puts all of the money that he has in it. He doesn't have this like large buffer. He doesn't have a lot of money. And even from the very beginning, and the reason I think I say you have to have a profound self-belief, because you can see brochures that he was like pitching people on about the business. I think it might have been using.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“That Thai version, the uncarmated version of Red Bull, gives them a lot of energy and curious jet lag, and then reads the article. It's like, wait a minute, the people that make drinks like this pay they make the most money. They pay the most taxes in this entire country. And so he immediately starts to study the existing products in this very nation energy drink market. And he would literally grab every single samples of every single kind of drink that's very similar. He would get together with other people that he works with. And he called them. He organized them, what he would call energy drink parties. And at the time, they were calling them stimulating juices. So these stimulating juices were all essentially taste tested. And there was like this giant self-experiment to see not only how it tastes, but also the effects that it had on them. And so one relationship that he's going to make right now actually changes his life because he realizes that there is a Thai franchise partner of a Unilever group, right? They're making toothpaste, but they”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“He did this for a very long time. He wound up traveling all the time for work, and this is how he's going to discover Red Bull, which I mentioned earlier. So he's on the road three to four months per year. Often they're sending him all the way out to the Far East. He's all over Asia. And it might have been fun as a younger man, but as he ages, he did not want to live that life of this frequent flyer, never home. And he has this realization where he said in an interview one time, all I could see were the same gray planes, the same gray suits, and the same gray faces. I wondered if I wanted to spend the next decade like this. And so he's around 38 years old when he's having this thought. Like, this can't, I don't want to be 48 and still in the same position. And really what motivated him, this is something he was going to repeat over and over again. He desperately, desperately wanted independence. He wanted financial independence and he wanted independence and control over how he spent his time. And so it's at the same time that he's having these thoughts that he finds.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Way before that, and what's fascinating, he calls himself like a very lazy student. So he actually chose marketing as his major and it was perfect because he's one of the greatest marketers I've ever seen. But he had to work his way through college. He was actually working at like a steelworks company. And he'd also take jobs as a ski instructor and a tour guide. But he didn't think he was that good at school. He called himself a lazy student because he took 20 semesters to graduate. And he says, normally you finish the University of Economics at the age of 22 and not 28 years old like he did, which was interesting because that he was a bad student because both of his parents didn't come for money. Both of his parents were school teachers. So after college, he takes, he starts working for one of the largest consumer package good companies in the world, Unilever. He works all the way up and becomes a marketing director for the international division of a Unilever subsidiary called Blendex. It's toothpaste. He's marketing toothpaste.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“To control his projects, the product that he's making, and the environment 100%. And so extreme success usually comes from extreme characters, extreme personality traits. He actually threatened to have, this is way before this book was actually written about him, but there was another potential biographer, this Russian author, that tried to start writing a biography, an unauthorized biography on Magishutz. And Magischitz threatened to have his kneecaps broken. He didn't like that the author was going to his hometown. I think he was knocking on the door of his elderly mother. And it says this aroused the wrath of the otherwise charming Matishits. You've harassed my mother and I will not tolerate this. As long as a preforated kneecap in Moscow costs $500, you will not be safe. And so let's go into what he was doing before he started Red Bull. This is one of the most fascinating things because as far as I know, it's his first business that he started and he was 41 years old. He was an employee for Unilever.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“He's done interviews. He's done some with these European publications. He did one with The Economist with Bloomberg. This is what he says about that. My philosophy is very simple. Since it's not me on the shelf for sale, but Red Bull, it's perfectly logical that Red Bull is at the center of our marketing activities and not the person. Naturally, I also have a pronounced desire for privacy. And then we see he utilizes an idea that you and I talked about on episode 292. I did this episode on this guy named Daniel Ludwig. The name of that book is called The Visible Billionaire. When Daniel was alive in the 80s, he was the richest American and no one knew who he was. I think there was only like one picture of him. And Daniel actually Ludwig actually paid his PR team to keep his name out of the press. Madischitz does the same thing. The press office of the Red Bull headquarters is a press prevention office whose task is to say nothing and find a justification for why.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Fun stuff and is a lot more interesting than writing a check to buy 30 seconds during the Super Bowl. Despite the fact that he's approaching 70, he maintains quite a clip. He still moves like an athlete. He rides horses, rides a motorcycle, pilots his planes, and last year competed in an off-road motorcycle race. He has long insisted he has no plans to sell or take Red Bull public. It's not a question of money, he said. It's a question of fun. Can you imagine me at a shareholders meeting? Matischitz had certainly created some enviable havens for himself like Richard Branson. He has his own private island in Fiji. He bought it off of Malcolm Forbes. When I asked him what motivated him to buy a vacation home, so far away, he resorts to quoting Malcolm Forbes himself. He gave a nice answer, which was, doesn't everybody want their own South Pacific Island? Well, in my case, he was right. I did. Madisus also says that he's always”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Don't taste very good says he doesn't care about the taste issue then, or he didn't care about the taste issue then, and he doesn't care about it now. This is what he says. It's not just another flavored sugar water differentiated by color or taste or flavor. It is an efficiency product. I'm talking about improving endurance, concentration, reaction time, speed, vigilance, and emotional status. Taste is of no importance whatsoever. That part actually shocked me. In Red Bull, I mean, I wouldn't say it tastes great, but it certainly doesn't taste bad. I think maybe the author is exaggerating a little bit here. Master has proved his marketing genius, especially in the era. This is another funny thing, especially in the era of crisis management, with his early decision to foster rumors about Red Bull's content instead of trying to squash them. I'm going to go into a lot more detail later on about this, but I want to give you an overview. This is what I'm trying to do.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“But his obsession with controlling information puts him closer to Steve Jobs, like the Apple founder, Madishitz pulls the strings behind a consumer colt, and Colts rely on message control, and Colts rely on message control. Matishitz is notoriously secretive. He is close to some of Austria's most prominent people. This part made me laugh. He is close to some of Austria's most prominent people, though Matisch says he doesn't place a premium on collecting friends or socializing. I don't believe in 50 friends. I believe in a smaller number, nor do I care about society events. It is the most useless use of time. When I go out from time to time, it's just to convince myself that I'm not missing out on a lot. And so the little that he does speak, he says very interesting things. This is another thing that I thought was very interesting. The success of Red Bull defies logic in one important regard.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“To Uvidah's son. So when I said earlier that he was paying dividends somewhere between $500 and $800 million to himself a year and his net worth was somewhere between $20 and $30 billion. That is from this 49% that he owned of Red Bull. In addition to adding carbonation, he also positioned it differently. This would allow for his product positioning masterstroke. He would sell Red Bull as an ultra premium drink in a category all of its own. At $2 a can, it was far and away the most expensive carbonated drink on the shelves. This is what he said about that. If we only had a 15% price premium, we'd merely be a premium brand among soft drinks and not a different category altogether. At this point, most histories of Red Bull tend to depart from Matashitz and focus on Red Bull itself, which is exactly how he wants it. A curious hybrid of a mogul Matischitz has a zest for life that rivals Richard Branson's”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Life. He was curious to know what attracted the locals there to an uncarbonated tonic which they called a word in time. I'm not even going to try to pronounce, which literally translates to Red Bull. He tried some of this himself and found that it instantly cured his jet lag. Not long after that, he was sitting at the bar at the Mandarin Oriental Hotel in Hong Kong and he was reading a magazine in the magazine and mentioned that the top corporate taxpayer in Japan that year was the maker of such tonics. Suddenly, the idea hit him. He would sell that stuff in the West. He then approached a Thai businessman who was selling the tonic in Southeast Asia and suggested that the two introduce the drink to the rest of the world. With one crucial change, it would be carbonated. This is going to be his partner. His last name, I'm going to guess, is Yuvidiha. And he liked the idea. And so the two agreed to invest $500,000 apiece to establish a $4949 partnership with the remaining 2% going.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Insight plus the media assets created around the teams are superior to pure advertising expenditures. He then launches into his field that he's been delivering for the past twenty-five years. He explains that Red Bull is not just a drink. Instead, it's a philosophy, one seemingly derived from his own outlook on life, and a functional product used to improve strength and performance and to revitalize the body and mind, those are his words. He is also quite serious, prone to beginning senses with the phrase it is a must, as in it is a must to believe in one's product. If this was just a marketing gimmick, it would never work. And it is something that he believed on because he worked on Red Bull. for over the last 40 years of his life. He just recently passed away. That's why I wanted to do this episode now. This is a little bit about the beginnings of how he discovered this idea. He was on a chance trip to Thailand in 1982, which would prove to be a turning point in his”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source
“Films, magazines, websites, and a steady diet of videos online featuring snowboarders, rally cars, surfers, cliff divers, and concerts, and a guy jumping from space. Machisitz calls the multimedia assault one of the most important line extensions so far as a major content provider, it is our goal to communicate and distribute the world of Red Bull in all major media segments from TV to print to new media. Red Bull also owns four soccer teams. They have a NASCAR team and two Formula One racing teams. He finances the annual $200 million cost of his F1 teams out of the company's healthy operating income. And this is what he said about that. In literal financial terms, our sports teams are not yet profitable, but in value terms they are. The total editorial media value plus the media assets created around the teams.”
2024-01-08 · Founders · #333 Red Bull's Billionaire Maniac Founder: Dietrich Mateschitz · IDENTIFIED FROM THE TRANSCRIPT · source