RED BULL: BUILDING BRAND EQUITY IN A NON-TRADITIONAL WAY

BY: KAMARUL ARIFFIN NADHIRAH NOORAZLIN BINTI ANI

INTRODUCTION

1985

Improves physical endurance

Stimulates metabolism and helps eliminates waste substances

Improves overall feeling of wellbeing

Improves reaction speed and concentration

Increase mental alertness

Word-OfMouth

Sampling Program

Event Sponsorship

Point-OfPurchase

Athlete Endorser

Advertisement

Controlled All Aspects Of The Event

Reinforced The Brand Positioning As An Independent Stimulating Beverage

Events Enhanced Red Bull Visibility

Unique Events Attracts Media Coverage

QUESTION 1

Describe Red Bulls sources of brand equity.

Do these sources change depending on the market or country.

BRAND EQUITY
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 )

SOURCES OF BRAND EQUITY

Product

Packaging

Image

Associations

AUSTRIA

Seeding Program

Leading Opinion

Limitation

UNITED KINGDOM
1995 Sport drink Large channel Billboards

gives you wiiings

never under estimate what Red Bull can do for you

1996 Stimulating drink WOM Electronic Media

UNITED STATES
West Coast CELL MARKETING East Coast

65%
RED BULL STUDENT MANAGER PROGRAM

Rentals equipped with Red Bull.

Market Share

QUESTION 2

Analyze Red Bulls marketing program in terms of HOW it contributes to the brands equity.
Discuss its strengths and weaknesses.

BUILDING BRAND EQUITY

RECOGNIZED
Memorable

REGISTERED
Protectable Meaningful

COMPETITION

RED BULL

PERSUASIVE

LESS SUGAR
Adaptability Likable

FUN
Transferable

LINGUISTIC

BRAND EQUITY
TWO BULLS COLLIDE
Logo & Symbol

FUNCTIONAL GRAPHIC
Packaging

SHAPE

RED BULL
Slogans

Characters

ENERGY

GIVES YOU WIINGS

ADVERTISING

STRENGTHS Catchy phrase Memorable.

HOW gives you wiings Adult cartoons

WEAKNESSES Controversial.

Wide audience

RED BULL TV AD, SUPERHERO

SAMPLING

STRENGTHS

HOW

WEAKNESSES

Creates significant buzz.

Brand associates. Direct response from the crowd.

RED BULL STUDENT BRAND MANAGER PROGRAM

Placement Sampling

Negative WOM.
Negative perceptions.

 sampling [is a] key element of Red Bulls

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

STRENGTHS Attractiveness to audiences and media. Creativity, Uniqueness.

HOW RED BULL extreme sports Red Bull Flying Day Red Bull Music Academy

WEAKNESSES Costing. Selected reach of audiences.

RED BULL FLUGTAG DAY 2012

SPORTS MARKETING
STRENGTHS Attractiveness to audiences and media. Creativity, Uniqueness. HOW RED BULL extreme sports Red Bull Signature Series. Red Bull Music Academy WEAKNESSES Costing large amount of money. Purchased Jaguar $100M/ year, generates profits only $70M/ year.

RED BULL SIGNATURE SERIES

POINTS-OF-PURCHASE

STRENGTHS Ensures quality and personalization Prevent clutters of promotional tools.

HOW RED BULL refrigerator. Visible aluminum window sticker to indicate availability.

WEAKNESSES Limited spaces in retail outlets.

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

Word of mouth (WOM)

The strategy involved micro-targeting hip and cool locations and hangouts and flooding them with opportunities for influencers to consume Red Bull. After consumption, these influencers would start the word of mouths campaign.

 Red Bull employs sampling teams or

Red Bull Student Brand Managers

Sampling

throughout the world that set up sampling programs in strategic locations. Include sporting events, concerts, or any place where people are tired.

Event marketing

Red Bull has made an art of creating and sponsoring events, all of which are designed to enhance its brand image and build brand equity.

Sport Marketing

Red Bull has also ventured into sponsoring athletes to build brand equity. This is an especially powerful tactic as many athletes are perceived as successful and powerful. Creating and continue sponsoring sports events such as Red Bull Signature Series.

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.

Point of purchase

setting up Red Bull refrigerators and other signage in many nightclubs and bars. team of dedicated Red Bull with vehicles covered with the Red Bull logo and servicing targeted locations to ensure they not lack of stock and make sure all necessary advertising is up.

Social media Network

Through the social networking media, Red Bull keep updating their customer about their marketing activities, promotional and etc which related to customer. Currently, 32, 555,502 (seen on 17 October 2012) likes in Facebook. More than 400M viewers in youtube with nearly 790, 000 subscribers.

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

Brand Extensions Brand extensions could be considered, but marketing research needs to be conducted to assess the effect of such extensions on the image of the brand.

Before doing brand extension , refer customer Brand equity pyramid at performance dimension. Red Bull need to cope up:
Primary ingredients and supplementary features Product reliability (consistency of performance), durability (life-span), and serviceability (after sales) Service effectiveness (speed), efficiency (responsiveness), and empathy (caring, trusting) Style and design Price

Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS = What about you and me? 3. RESPONSE = What about you?

RESONANCE

JUDGMENTS FEELINGS

PERFORMANCE

IMAGERY

2. MEANING = What are you?

SALIENCE

1. IDENTITY = Who are you?

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 Bulls 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.

Benefits
A Herbal magazine Capitalize Diversify tea would could be on the generate and grow consistent diverse good the with the target publicity business healthy markets to the image brand

Fast-food chains could be risky to the healthy image

Danger
Clutter

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 ?

CONCLUSION

 The reasons for consumptions change, but the basics are always there: the real benefit.
- Norbert Kraihamer, Red Bulls Group Marketing and Sales Director

Thank You