INTRODUCTION

1985

Improves physical
endurance

Stimulates
metabolism and
helps eliminates
waste substances

Improves reaction
speed and
concentration

Improves overall
feeling of wellbeing

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

never under estimate

what Red Bull can do for
you

gives you
wiiings

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

COMPETITION

Meaningful

RED
BULL

PERSUASIVE

LESS SUGAR
Adaptability

Likable

FUN
Transferable

LINGUISTIC

BRAND EQUITY
TWO BULLS COLLIDE
Logo &
Symbol

FUNCTIONAL
GRAPHIC

Packaging

SHAPE

RED
BULL
Slogans

GIVES YOU WIINGS

Characters

ENERGY

ADVERTISING

STRENGTHS
Catchy phrase

HOW

WEAKNESSES

gives you
wiings

Controversial.

Memorable.
Adult cartoons
Wide audience

RED BULL TV AD, SUPERHERO

SAMPLING

STRENGTHS

Creates
significant
buzz.
Brand
associates.
Direct response
from the
crowd.

HOW

RED BULL
STUDENT
BRAND
MANAGER
PROGRAM
Placement
Sampling

WEAKNESSES

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

RESONANCE

JUDGMENTS FEELINGS

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

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