Case Analysis

Termed as pioneer in energy drink Came to existence in 1985 Derived from Thai Enegy drink Krafting Daeng

Available exclusively in Austria for 5 years Entered the foreign market in 1992 from Hungary Entered American market via California in 1997

Red Bull is an energy drink that really works

Improves physical endurance Stimulates metabolism and eliminates waste substances Improves overall feeling of well-being Improves reaction speed and concentration Improves mental alertness

Caffeine Taurine Glucoronolactone

Success lead to competitors producing similar drinks in 2000 Coca-Cola Anheuser-Busch Pepsi-Co

Strengths Market Leader Slow penetration to new market segments Fresh and strong brand identity using ads. Position itself as energy drink rather to soft drinks. Various consumption occasions

Weakness Priced at Premium over the other soft drinks No discounts on purchase.

Opportunity Untapped market exist for Red Bull Expansion of the brand with new products Sponsoring of events and athletes can enhance the brand visibility

Threats Caffeine in Red Bull Bad publicity Entry of new competitors Organic drinks.

Product: A sweet, caffeinated drink aimed to give consumers the high energy kick. Contains caffeine, taurine, glucuronolactone and vitamins. Available only in rather expensive 250 ml cans, 350 ml bottles with 4 packs and only two flavors (original and sugar-free).

Price: Red Bull has always pursued a premium pricing strategy. Red Bull would always set a price which was 10 percent greater than the most expensive competitor in order to maintain a best of class positioning and also stake out a unique territory in the beverage market.

Promotion: Advertising: Red Bull used all the available media channels, that is, television, print and radio for its advertisement. They used an animated advertisement which clearly communicated the product benefits and was the main reason for its success.

Event Marketing: Red Bull either invented the event from ground up or brought the product to an existing event. Was also associated with many sporting events. These events increased Red Bulls visibility and also reinforced the brands positioning as an independent, stimulating beverage.

Sampling: Red Bull sought to reach the consumers at the right place at the right time, mainly when consumers needed or wanted a boost. Red Bull sampling campaigns took place at concerts, parties, festivals, sporting events, at the beach and at campus libraries. Reached the consumers at ideal places and explained to them product benefits and encouraged them to drink a full can for maximum benefit.

Point-of-Purchase Marketing: Red Bulls primary point-of-purchase tool was the branded refrigerated sales units. Prominently displaced the Red Bull Logo in convenience stores, bars, clubs, sport shops, cafeterias. Red Bull hired a team of delivery van drivers whose sole responsibility was to stock Red Bull, so as to ensure quality and consistency.

Targeting a niche segment in the beginning and then spreading out to the whole target makes a lot of sense. Because the marketing program was really focused at first as a segment of people it creates the concentration and brings up the success.

The products understanding for middle and upper aged people is quite different. These segment of people tend to stay away from the drink because of having wrong perception of the brand. Sometimes the product is understood as a mixed for the alcoholic drinks and breaking that perception is necessary.

Event Marketing Innovation Supported a local flying club in Innsburg, Austria Creation of The Flying Bulls Expansion of the same idea and created the Flying Bulls Aerobatics Team Red Bull Big Wave Africa competition

Product Innovation Added a new product, Red Bull Sugar Free Was sold in a readily identifiable Red Bull Can with two differences Dark Blue Can was replaced with Lighter blue The word Sugarfree replaced Energy Drink Product was highly successful

Line Extension They launched Redbull Sugar Free which was highly successful Brand Extension Launched Herbal Tea in Europe and Los Angeles Planned to open a fast food chain and quarterly magazine

Launch of Red Bull Sugar Free was successful Launch of herbal tea in Europe was not as successful as Red Bull The same product was tested in Los Angeles but didnt seem to have a success of Red Bull Although the brand extension was not as successful as line extension, but it didnt hamper the brand image of Redbull Focus on line extension

Red Bulls Sources of Brand Equity Uses non-traditional ways to achieve its target and unique approach to create brand Equity . Right from the beginning the company makes it very clear to it all its existing and potential customers the message of its product functionality in a clearway.

Eg: pricing 10% of upper segment of competition to create mindset of Premium brand.

It uses word of mouth marketing to create brand awareness. Once brand awareness is created it restores to TV ads and other communication media. The company tries to create mystique by participating into events and sponshorship.

The company plays the market entrance relatively strategically It targets a niche audience and influences them first rather than spreading out to the whole target group.

Thus, the overall whole brand equity management is successful in case of Red Bull