Redbull Case
Essay Preview: Redbull Case
Report this essay
Red Bull Case
Describe Red Bulls sources of brand equity. Do these sources change depending on the market or country?
Red Bulls Brand Equity
Red Bull has strong brand equity
Favorable and strong brand awareness as well as brand image
Strong recognition
Quality product with loyal consumers
“Red Bull gives you wiiings” – this slogan helps consumers to better recall the product
Image of the product as a sophisticated drink that provides consumers with a much needed lift
Equity has also been built up due to marketing, advertising, and various partnerships and associations (ie sports teams)
Packaging
Single silver and blue 250ml can that contains the Red Bull logo as well as the words “energy drink” (which helps consumers quickly identify the type of product they are purchasing)
Very unique can and easily recognizable
Logo has two bulls colliding with one another with a sun in the middle. The bulls are supposed to represent strength and energy coming together
Attributes
Combination of caffeine, taurine, and glucoronolactone is unique
Provides energy
Improves physical endurance
Stimulates metabolism and helps eliminate waste substances
Improves overall feeling of well-being
Improves reaction speed and concentration
Increases mental alertness
Positioning
“Revitalizes body and mind”
They position themselves to the average consumer who needs something to help them do better in school, work, sports, or any other mentally or physically demanding activity
This creates multiple segmentation opportunities
Price
More expensive than its competitors as well as other soft drinks
Red Bulls positions the product above 10% of the upper-segment of the competition in order to create the mindset of the premium brand
Red Bulls brand equity is proven to be strong because consumers are willing to pay for the brands equity premium
Makes consumers believe they are getting much more than they get from soda or other energy drinks, hence their willingness to pay a higher price
Suggests the product is superior and worthy of a higher price
If Red Bull was priced in accordance with soda then consumers may not recognize Red Bull as being much different than soda
Do sources change depending on market or country?
Red Bull employs the same marketing strategy across the board for every new market they enter
Sources of equity remain consistent across the different market for the most part
Things that are affected
The different sports affiliations will vary from market to market
The consumption rate may also vary across regions
2. Analyze Red Bulls marketing program in terms of how it contributes to the brands equity. Discuss strengths and weaknesses.
Marketing Program contributing to brand equity
Utilized word of mouth marketing as the central component in their marketing activities
Generated a lot of buzz and awareness in the early stages of Red Bull entering the market
Limited supply/availability in the beginning also helped generate buzz and an intriguingly mysterious aura of what the product actually was began to grow
Placing empty cans in clubs and bars to give off the illusion of popularity among the hip crowd
Word of mouth spread so much that even neighboring countries were fascinated with a Red Bull product that they knew little about
All of their marketing efforts were integrated and consistent
Advertising clearly and effectively communicated the product benefits without making false promises – built up awareness
Created events to market where they were able to control all aspects of the event
Made use of athletic endorsers who exemplified the qualities in which Red Bull wished to project – positive effect on brand image
Used Point of Purchase marketing
Placed mini glass refrigerators (which included the Red Bull logo) in convenience stores, clubs, bars, cafeterias, etc.
Another way to distinguish themselves from other beverages
Placement was key
Sampling was another successful marketing tool
Helped build awareness to consumers who might not have otherwise tried product
Was given to people at times when they might be able to appreciate it more (truck drivers during a long shift)
Strengths
Through event marketing the brand positioned itself as an indipendant and stimulating beverage
Targeted broad range of consumers (both ages and lifestyles) which helped them grow into numerous market segments
Sampling was done correctly – given at the right time and place where the person was most likely to benefit from the product
POP helped Red Bull develop into a strong and recognizable brand
Weaknesses
Target