GULSHAN CAMPUS, KARACHI

NAME OF STUDENT Syed shaheer Ahmed ID No. 2707-2016

ASSIGNMENT BASED FINAL EXAMINATION

SPRING 2020
Start Date End Date
Department / Total
Program Semester Course Title Instructor of of
Faculty Marks
Submission Submission
Faculty of
SPRING Brand M. Adeel
Management MBA 19th July 20th July 40
2020 Management Siddiqui
Sciences (FMS)

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_________________________________________________________________________
Instructions:
1. This assignment contains 03 questions. Attempt all questions.
2. Marks of each question are mentioned at the end of each question.
3. Please ensure that no part of your assignment should be copied from any other source.
4. Please note that copy-paste is a serious nature of academic dishonesty, it is called “Plagiarism” and
the penalties are attached to being found guilty of committing such offences.
5. This assignment should be submitted in MS. Word format, with 1.5 line and paragraph spacing on A4
paper. All paragraphs should be justified and properly numbered.
6. The font size should 12 and Times New Roman should be used. All figures and illustrations should be
properly titled or numbered on the left side, below.
7. Student should submit their assignment on or before due date.
8. After due date no assignment will be marked.
9. Student must comply with given instructions.
10. Attempt questions in given sequence.
:
No Marks Marks
Assigned Obtained
1 10
2 10
3 20

Total 40

This paper has a total of 04 pages including this title page

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CASE STUDY [30 Marks]

A case study of Red Bull Company

Red Bull’s Sources of brand equity

Red Bull uses the non traditional ways to chive its targets and unique approaches to create the brand
equity. Right from the beginning the company makes it very clears to it all its existing and potential
customer the message of its product 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 sample beverage
drink. This also helps the company from being categorized different from other beverages company
because its uses word-of-mouth marketing and creating the brand awareness by this way. Once the brand
awareness is created then it resorted within the TV and other related media channels. The company also
tries to create by mystique by participating and sponsoring events within the market even before the
product is not available within the market. Also the company places the market instance relatively
strategically by trading a niche audience and trying to influences them first rather than spreading out to
the whole target of customers. Indeed the company tried different ways of market instance and different
kinds of brand equity management within different market; however, most of the cases this strategy
failed as it is started within the case as. The UK case 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 geographical situation of the USA and relatively spread out demographic within this market.
 
The value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived
quality, strong brand associations, and other assets such as patents, trademarks and channel
relationships. Brand Equity is a differential value of a brand which a consumer has in his mind due to
the amount of knowledge he has about that brand. “Brand Equity is that incremental value that occurs to
a product when it is branded.

Those are the main sources of brand equity based on Red Bull:-

1. Brand awareness is one of the sources of Brand Equity.

2. A consumer’s perception that the brand is better than it really is.
3. A consumer’s preference for a brand based on cachet or status of owning it. If one is successful in
these 3 aspects an added benefit is that it will pull the customer to carry your product thus helping in
increasing sale of that particular product.

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Q1) Describe the Red Bull’s sources of brand equity.

Q2) Analyze the Red Bull’s marketing programming terms of how it contributes to the
brand’s equity.

Q3) How can Red Bull maintain its marketing momentum?

a) Would you recommend the Red Bull develop any brand extensions?

If so, what would they be?
b) What are the potential benefits and dangers?

Answer 1:
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. Brand equity is the edit value endowed to products and services.

Red Bull’s Sources of brand equity:

Red Bull uses the non-traditional ways to chive its targets and unique approaches to create the brand
equity. Right from the beginning the company makes it very clears to it all its existing and potential
customer the message of its product 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 sample beverage
drink. This also helps the company from being categorized different from other beverages company
because its uses word-of-mouth marketing and creating the brand awareness by this way. Once the brand
awareness is created then it resorted within the TV and other related media channels. The company also
tries to create by mystique by participating and sponsoring events within the market even before the
product is not available within the market. Also the company places the market instance relatively
strategically by trading a niche audience and trying to influences them first rather than spreading out to
the whole target of customers. Indeed the company tried different ways of market instance and different

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kinds of brand equity management within different market; however, most of the cases this strategy
failed as it is started within the case as. The UK case 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 geographical situation of the USA and relatively spread out demographic within this market.

Main sources of brand equity based on Red Bull:-

1) Brand Awareness:
By 1997 Red Bull was launched in Austria, Red Bull was available 25 markets globally including
Western and Eastern European, New Zealand and South Africa. This indicates the global awareness of
Red Bull. Initially the Red Bull’s slogan was “Red Bull gives you wings”. Later on as the taste changed
with the change of its ingredients. Red Bull “Revitalizes Body and Mind” Earlier it was an energy drink
and later it was functional energy drink. It implied that Ruddy Bull can be intoxicated any time whether
it was morning, twelve, or night. Hence Ruddy Bulls utilization was not constrained to any event or
activities.

2) A consumer perception that the brand is better than it really is:

The moment viewpoint approximately picking up the brand value is making the discernment
approximately your brand in consumer’s intellect that your brand is truly great than really it is. The same
can be done by distinctive ways by promoting or promoting more almost conclusion result in term of
qualities and properties of the item to the client. In case of Red Bull Drink taking after strategies were
utilized or connected. They came up with the slogan that “Red Bull gives you wings’. So people who
really wanted boost their energy used to drink Red Bull.

• Improve physical continuance.

• Stimulates digestion and aides dispenses with squander substances.

• Improves by and large sentiment of prosperity.

• Improves response, speed and fixation.

• Increase mental readiness.

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Another time they have changed the fixings and flavor a bit. This they planning to communicate the
product esteem as useful energy drink instead of fair an energy drink. It was sweet in taste and
carbonated as cola. As they were more concerned around the work of the drink they did not truly care
approximately the taste. They came up with moment Trademark Ruddy Bull “Revitalizes body and
mind”. This trademark was simple to get a handle on and secured a wide set of fitting utilization event.
At whatever point shopper required lift anytime whether morning, twelve or night they can drink this.

Answer: 2
Analyze the Red Bull’s marketing program in term of the brand’s
equity:

I think the Red Bull exhibiting program is exceptionally successful as distant as brand esteem

•Trading a strength area is the begin and a while later spreading out to the whole objective bodes well.

•Because the publicizing program was genuinely locked in from the start as a parcel of people it makes
the obsession and raises the accomplishment

. Identified with the detriments of this logic and moreover it is started for the claim to fame part the
thing understanding the for center and upper developed people is exceptionally one of a kind

•In my feeling in this way these parcel of people will in common maintain a strategic distance from the
refreshment in see of having erroneously impression of the brand.

•On the other hand here and there the thing is comprehended as a mixed for the blended refreshments
and you utilized chance to break that perception too.
Anyway the common whole brand esteem is productive on the off chance that there ought to emerge an
event of Red Bull. In the said relevant examination Red Bull has gotten rearward.

Point –of –purchase Marketing:

 Strength: Ensures quality and personalization
 How: Red bull refrigerator. (2) Visible aluminum window sticker to indicate availability.
 Weakness: limited space in retail outlets.

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Sports Marketing:
Strength:
 Attractiveness to audience and media
 Creativity uniqueness.

HOW:
 Red bull extreme sports
 Red bull signature series
 Red bull music academy

Weakness:
 Costing large amount of money

Event Marketing:
When Red Bull created an event it controlled all aspects of event including the name, Logo,
Promotion and media production

Marketing Activity:
Red Bull engaged in variety of marketing Pro gramme.

Advertising:
Strength:
 Catchy phrase
 Memorable
 Wide audience
HOW:
 ‘give you wings’
 Adult cartoon
Weakness:
 Controversial

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Answer 3:

Red Bull maintains its marketing momentum:

Red Bull brand demonstrated to have a promoting driving force particularly in the western European
market. Red Bull brand includes enormously settled itself inside the caffeinated drink advertise and has
kept on keeping up its strength in spite of various contenders. Red Bull nearness is felt all over.
It has completely used all channels of promoting both customary techniques just as new media field. In
extra, Red Bull has been supporting and advancing games exercises making it to be the most preferred
games brand in the games field. In addition the advancement methodologies that Red Bull utilizes are
unmistakable from its rivals. This procedure has really given red bull an upper hand.

Red Bull maintains its marketing momentum by follows:

1. Changed Brand Knowledge
2. Fortifying a similar picture Maintained consistency
3. Buyer reaction to future Marketing Activities
4. Distinguishing changing customer needs Deciding on Marketing exercises
5. Supporting Red Bull s Brand Equity
6. Customer reaction to past Marketing Activities
7. Expanded Sales Increased mindfulness by WOM
8. Brand Knowledge
9. Picture Best in class Energy Drink
10. Customer reaction to current Marketing Activities
11. Followed a similar advertising exercises
12. Ensuring wellsprings of Brand Equity
13. Duplicate right the brand components.
14. Red Bull Sugar free.
15. Supporting Red Bull s Brand Equity.
16. Tweaking the supporting Marketing Program

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Question No 03-A)
Would you recommend the Red Bull develop any brand extensions? If so, what would they be?

Answer No 03-A)
Recommendation for Brand extention:
Brand extention could be thought of, yet showcasing research should be directed to survey the
impact of such expansions on the picture of the brand. Lower-valued expansions just as
augmentations to new item classes are potential alternatives. One of the pulling purchasing
powers for Red Bull is lower value which offer by Red Bull contrast with other organization is
same class.

• SPORTS BAR
Close to Sports offices like Ice Skating Skiing highlighting outrageous games Advertise the
Sports Bar make rebate passes accessible in the Sports offices

• Vitality SNACK BAR

Content on indistinguishable lines from Red Bull WOM and making a Buzz Making it accessible
to Eliteclass and chose stores at that point going down the pyramid

• Extraordinary SPORTS CHANNEL

Highlighting outrageous games and the occasions supported by Red Bull Sponsoring different
occasions toincrease the perceivability of the channel TVCs

Question No 03-B)
What are the potential benefits and dangers?

Answer No 03-B)
Potential benefits:
• Leverages Brand Equity and goodwill:
Use Brand Equity and altruism Saves cash Builds extra brand height Reinforces Brand affiliation
Consumer information and buyer trust.

• Saves money:
In the event that an individual needs an additional increase in vitality sooner or later in the day,
at that point you definitely know whatyour alternatives are. Because of the entirety of the
opposition out there on red bull, espresso beverages and energydrinks, for example, beast and

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demigod – interest for this item specialty have gone up. Along these lines, priceshave gone up
also for better quality fixings and wellbeing.

• Builds additional brand stature:

Six Sigma marking is a call to keep this set of accepted rules, and to create and launch
extraordinary promoting programs that perform well over the disillusioning normal common
these days. A Six Sigma brand's "DNA" comprises of seven key components.
1. A beneficial target
2. An extraordinary positioning
3. A gifted interpretation of situating into an announcement, brand quintessence, and brand
personality
4. A strong brand vision
5. A solid brand architecture
6. A incredible visual character framework and tag line
7. A advancement correspondences plan

• The First DNA Strand:

Since target and situating are the establishment for the other Six Sigma brand components, we
want to be totally clear: We're not discussing your folks' techniques, which were without a doubt
chosen like melons in the supermarket utilizing instinct alone.

• Completing the Helix:

The following undertaking is to amass the subsequent DNA strand. This starts with creating
the situating proclamation, brand embodiment, and brand character. A situating explanation is an
a few word message you need singed into your objective purchasers' brains. It should meet three
basic necessities.
1. It determines why the objective should purchase your image over somebody else's.
2. It gives a manual for the interchanges, item, and evaluating methodologies.
3. It offers an edge of reference for characterizing augmentation openings.

Potential Danger:
Red Bull may lose center from its lead item Dilution of existing brand Negatively affectsthe
brand picture I e harms the view of existing brand No go territory Threats to Brand s capital
resources Extension Zone Latent Potential Outer coreSpontaneous affiliations Inner Core Red
Bull Energy Snack Bar Line Extension

• Red Bull Herbal Tea

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• Red Bull Sugar free

• Red Bulletin
• Red Bull may lose center from its leader item
• Weakening of existing brand
• Adversely influences the brand picture for example harms the impression of existing
brand

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