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1. Describe Red Bull¶s sources of brand equity. Do these sources change depending on the market or country?
Redbull has a different way of approach to create the brand equity and uses relatively non-traditional ways to achieve its target. The company communicates one direct message to its customers and potential customers related to product¶s functionality in a clear way. Related to the pricing of the product company positions the product above 10% of the upper-segment of the competition in order to create the mindset of the premium brand and also influencing people by not letting them buying a simple beverage drink. Also with this approach company creates the energy drink positioning within the beverage market and takes the unique place within the market. The company tends to be unique in other related brand equity functions such as the marketing is mostly related to word ouf mouth marketing and creating the brand awareness by this way. Having the reverse way of branding company then afterwards places the ads within the TV and other related media channels. The company also tries to create the mystique by participating and sponsoring events within the market even before the product is not available within the market. Also the company plays the market enterance relatively strategically by targeting a niche audience and trying to influence them first rather than spreading out to the whole target of consumers. Indeed the company tried different ways of market enterances and different kind of brand equity management within different market however most of the cases this stragety failed as it is stated within the case as the U.K. case. Overall the company tries to play the cell strategy within markets like the USA, however this methodology is relatively same to other countries but the difference is related to the geographical situation of the USA and relatively spreaded out demographics within this market.
2. Analyze Red Bull¶s marketing program in terms of how it contributes to the brand¶s equity. Discuss strengths and weaknesses.
In my opinion the Red Bull¶s marketing program is quite successful in terms of brand equity. 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. Related to the disadvantages of this methodology and also it is started for the niche segment the product¶s understanding for middle and upper aged people is quite different. In my opinion thus these segment of people tend to stay away from the drink because of having wrong perception of the brand. On the other hand sometimes the product is understood as a mixed for the alcoholic drinks and you need time to break that perception as well. Nevertheless each marketing strategy has its own ups and cons and related to Red Bull¶s strategy the return on investment is quite efficient thus we can evaluate the whole brand equity management as successful.
3. How can Red Bull maintain its marketing momentum? Would you recommend that Red Bull develop any brand extensions? If so, what would they be? Would you use the same marketing strategy?
5. and utilizing every other major form of advertising. The reason for this is related to the perception of the brand as the brand is perceived relatively more targeting the youth market. Related to the advertising campaigns redbull also tries to push the product to this segment as well. They should continue doing it because these students tend to take the brand forward with their growth. Red Bull has to now concentrate on maintaining the leading position in existing countries and develop new markets. The case states that. My opinion is related to the success of the brand until now keeping the focus and not trying to have the all eggs in one basket. 4. Because the product is being first launched at night clubs and so on the perception of the brand is a drink for younger people. Still there might be some opportunities by entering the tea market in order to grab the marketshare from mid and old aged potential customers. as an image has already been created for them based on its pricing. . If we think in the logical way of body needs it is obvious that someone at his/her late thirties indeed fell exhausted more easily compare to somebody who is at twenties. and magazines. Initially they use Red Bull on its own. Related to the pricing. Red Bull should take this forward. Red Bull has always focused on youngsters and used them as brand ambassadors by recruiting student brand managers. Red Bull has an advertising strategy that separates them from competitors. sponsoring every sport. Evaluate Red Bull¶s move into herbal teas. ³a 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 of meetings. which is generally done by working adults. Indeed refreshing the packaging might be an idea but my opinion would keep the tradition related to this. in fact it does not. Still the product is valid and accepted by people and day by day there will be new fans of the product. While it may seem like Red Bull is flooding every advertising arena. Red Bull users could continue to use the product even as their priorities shifted. and it has been paying dividends.Marketing momentum is being maintained by Red Bull as this popular energy drink has taken the nation by storm and continues to maintain its stranglehold on the energy drink market ± despite an abundance of competitors. I think this is related to the market strategy and the perception of the product. Related to the packaging I think Redbull should keep its packaging style as the brand and the traditional can is becoming a classic day by day. This might be the failure of other global brands such as coca-cola etc when entering the energy beverage market. fast-food chains. Brand extension also should remain as it is because there are quite big risks related to this as the brand image might be effected and also the focus will be lost. Also people tend to stay away from chemical add-ons which might be negative effect related to the fastfood chains. but over age they can use it as a mixer. Because product usage was not marketed as being limited to one or even a few occasions.´ How effective is Red Bull at advertising to these varied groups? Related to the efficieny of the different age demographics I think the younger people at early or mid twenties tend to drink the product relatively more compare to the businessman segmentation. It seems like Red Bull is everywhere: all over TV. Does it make sense for the company to expand into these areas? What are the potential benefits and dangers? Indeed there might be some benefits to use the accepted brand as Redbull to initiate new areas of investment but I think the dangers of these investment will be more than the benefits.