Red bull final case study

RED BULL: BUILDING BRAND EQUITY IN A

NON-TRADITIONAL WAY

BY:KAMARUL ARIFFIN

NADHIRAHNOORAZLIN BINTI ANI

INTRODUCTION

1985

QUESTION 1

Describe Red Bull’s sources of brand equity.

Do these sources change depending on the market or

country.

Brand equity is a set of characteristics that are unique to a brand. In essence, brand equity is the perception that a good or service with a given brand

name is different and better. (Clow & Baack, 2012 )

Brand equity is the added value endowed to

products and services. ( Kotler & Keller, 2012 )

BRAND EQUITY

SOURCES OF BRAND EQUITY

AUSTRIA

“never under estimate what Red Bull can do for

you”

“gives you wiiings”

UNITED KINGDOM

65% Market Share

UNITED STATES

QUESTION 2

Analyze Red Bull’s marketing program in terms of HOW it

contributes to the brand’s equity.

Discuss its strengths and weaknesses.

BUILDING BRAND EQUITY

RECOGNIZED

PERSUASIVE

FUN

LESS SUGAR

REGISTERED

LINGUISTIC

COMPETITION

BRAND EQUITY

TWO BULLS COLLIDE

ENERGY

FUNCTIONAL

“GIVES YOU WIINGS”

SHAPE

GRAPHIC

ADVERTISING

RED BULL TV AD, SUPERHERO

SAMPLING

“ sampling [is a] key element of Red Bull’s marketing strategy. The customer feedback

that they get in invaluable and the conversion rates are huge. “

- Henry Drnec, Red Bull Managing Director United Kingdom

EVENT MARKETING

RED BULL FLUGTAG DAY 2012

SPORTS MARKETING

RED BULL SIGNATURE SERIES

POINTS-OF-PURCHASE

QUESTION 3

How can Red Bull maintain its marketing momentum?

Would you recommend that Red Bull develops any brand

extensions? If so, what would they be?

Would you use the same marketing strategy?

Red Bull maintain their marketing momentum thru their Marketing Program

RED BULL STRATOS 2012 JUMP

RED BULL STRATOS 2012 JUMP

Felix Baumgartner's epic jump from the edge of space was successful. Supported by a team of experts, Felix ascended in a helium balloon to

an altitude of 120,000 ft / 36,576 m where he took a leap of faith into the unknown in an attempt to become the first person to break the speed of

sound during freefall.

Source: http://www.youtube.com/user/redbull/featured, as on 18 Oct 2012

Brand ExtensionsBrand extensions could be

considered, but marketing research needs to be conducted to assess the

effect of such extensions on the image of the brand.

Primary ingredients and supplementary featuresProduct reliability (consistency of performance), durability (life-span), and serviceability (after sales) Service effectiveness (speed), efficiency (responsiveness), and empathy (caring, trusting) Style and designPrice

Before doing brand extension , refer customer Brand equity pyramid at performance dimension. Red Bull need to cope up:

Currently there are only four product made: Red Bull Energy Drink, Red Bull Sugar Free, Red Bull Energy Shots, and Red Bull Cola. Each product is in line with the original tagline that makes Red Bull so successful- “Red Bull Gives You Wiings”. In 2005- Thailand launch Red Bull ice coffee.

Lower-priced extensions as well as extensions to new product

categories are possible options.

One of the pulling buying powers for Red Bull is lower price which

offer by Red Bull compare to other company is same category.

QUESTION 4

Evaluate Red Bull’s move into herbal teas, fast-food chains,

and magazines.

Does it make sense for the company to expand into these areas? What are the potential

benefits and dangers?

There is pro and contra to extend product

development. What Red Bull need to do is to have

proper research in extending product and associate it with other product or services.

QUESTION 5

“a Red Bull consumer first attracted to the product as a nightlife enhancer in his or her early twenties might later use the

drink as a morning pick-me up or a revitalizer during a long day meetings.”

How effective is Red Bull at a advertising to these varied

groups ?

EFFECTIVE!

CONCLUSION

“ The reasons for consumptions change, but the basics are always there: the real

benefit.”

- Norbert Kraihamer, Red Bull’s Group Marketing and Sales Director

Thank You