Redbull Case

Red Bull Case

1. Describe Red Bull's sources of brand equity. Do these sources change depending on the market or country?

Red Bull's Brand Equity

* Red Bull has strong brand equity

o Favorable and strong brand awareness as well as brand image

o Strong recognition

o Quality product with loyal consumers

o "Red Bull gives you wiiings" - this slogan helps consumers to better recall the product

o Image of the product as a sophisticated drink that provides consumers with a much needed lift

o Equity has also been built up due to marketing, advertising, and various partnerships and associations (ie sports teams)

* Packaging

o 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

o 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

o "Revitalizes body and mind"

o 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

o More expensive than its competitors as well as other soft drinks

o 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 Bull's brand equity is proven to be strong because consumers are willing to pay for the brand's 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?

o No

 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

o Things that are affected

o The different sports affiliations will vary from market to market

o The consumption rate may also vary across regions

2. Analyze Red Bull's marketing program in terms of how it contributes to the brand's equity. Discuss strengths and weaknesses.

o Marketing Program contributing to brand equity

o 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

o All of their marketing efforts were integrated and consistent

o Advertising clearly and effectively communicated the product benefits without making false promises - built up awareness

o Created events to market where they were able to control all aspects of the event

o Made use of athletic endorsers who exemplified the qualities in which Red Bull wished to project - positive effect on brand image

o Used Point of Purchase marketing

o 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

o 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

o Through event marketing the brand positioned itself as an indipendant and stimulating beverage

o Targeted broad range of consumers (both ages and lifestyles) which helped them grow into numerous market segments

o Sampling was done correctly - given at the right time and place where the person was most likely to benefit from the product

o POP helped Red Bull develop into a strong and recognizable brand

* Weaknesses

o Target