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MIDTERM ASSIGNMENT

Brand: Red Bull

The brand Red Bull gained popularity soon after it was launched in 1987 by Mr. Dietrich
Matechitz, upon noticing his employees drinking an energy drink in order to stay awake and
focused during the meeting. Hence Matechitzs innovation contributed to the beverage industry
and Red Bull became the pioneer in Energy drinks. The brand captured 71% of the market share
of world market of energy drink with its unique marketing campaigns and ads. The target market
successfully gained awareness regarding the brand with its unique slogan Red Bull gives you
wings. The whole idea behind the innovation was to make the consumer energetic, focused and
speedy without any harmful reaction to the health. Hence with its aggressive marketing
campaigns, Red Bull was successful as an international brand being available in over 170
countries across the globe.

Ruling the world since 28 years by giving consumers the wings, Red bull is ranked as No.76
on Forbes Most Powerful Brand List in 2015. The reason behind Red Bulls success as a global
brand is its marketing techniques. The real strength of the brand lies in the way it is
communicated towards its target consumers. Once the brand reaches top of the mind of the
consumer it is considered as a success in building brand image thats what Red Bull as a brand
achieved in the past years.

The reason behind considering Red Bull as a communication hit is that it has always been
marketer favorite and has captured the consumers attention through its tagline Red Bull gives
you wings through creative endorsements, sponsorships, TV ads, web and social etc. Red Bull
became a global hit when its guerilla marketing campaign called, Red Bull Girls was initiated,
where free Red Bull was distributed among college students during their exam days, promoting
the idea of staying focused with the consumption of energy drink. This marketing campaign was
a huge success and resulted in increase in sales. Since then Red Bull has been popular due to its
innovative and energetic marketing campaigns targeting youth through its sports and
entertainment based marketing campaigns.

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Question No 1:

Positioning and Corporate Image of Red Bull

Red Bull is famous among the young urban professionals who have interest in sports and tend to
be adventurous, energetic and enthusiastic by nature. The brand image reflects the personality of
its consumers possessing active lifestyle and hence is targeted towards the youth of the country,
both male and female. Red bull is targeted towards individuals who are sports lovers and have a
personality that portrays active lifestyle and enthusiasm towards life. The positioning of Red Bull
can be explained through the 8 elements of brand positioning proposed by Jean Noel Kapferer in
his book The New Strategic Brand Management that include both the external factors and
consumers point of view regarding the brand. Hence positioning is defined as the strength of the
brand in the mind of the consumer.

1) Root Strength: Flavored Carbohydrated Drink


2) Competitive Environment: Energy drinks
3) Target: Students, Young Professionals, Athletes.
4) Insights: Consumers consume it in order to be focused and energized.
5) Benefits: Active, Energetic (Functional Benefit). Gives you wings (Emotional Benefit)
6) Value and Personality: Trendy, Sporty, Active, and Daring.
7) Reason to Believe: Stimulates metabolism
8) Discrimination: Contains Caffeine and Carbohydrates to increase concentration and
speed.

Hence the above elements define the positioning of Red Bull with the knowledge that it is
targeted towards youth of the world with personality trait of sportsmen i.e. enthusiastic and
energized. The brand itself with its quality and taste provides an edge over competitors in the
market, e.g. Monster and Rockstar. Hence it is evident to say that Red Bull with its brand
image has been positioned well in the mind of the consumers. The aggressive marketing
campaigns of Red Bull all around the world keep the consumers well aware and engaged
with the brand. Owning sponsorship of almost all extreme sports events across the globe has

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solidified its positioning in the industry and given it a clearly differentiated, while relevant
platform.

The corporate image of Red Bull is the identity of the brand. i.e the core essence which never
leaves the brand, and Red Bulls identity is the corporate logo which it is famous for. A Red
color Bull that demonstrates power, strength and energy. In order to be coherent in the mind
of the consumer the brand should reflect the physique, personality, reflection, relationship
and self-image in the brand identity. These elements of brand identity all together make the
consumer feel connected to the brand and can see its own personality reflected through the
brand.

Red Bull reflects the brand image with its physical appearance and corporate logo. The blue
and silver can with red muscular bulls in a fight is the identity of the brand. The brand name
and logo have clearly achieved being at the top of the mind of the consumer. Secondly, the
personality reflected through the brand is of a daring, energetic and audacious winner
portraying the culture, where limits are challenged and life is lived to the fullest. The
reflection or self image that relates the consumer to the brand is the energy and passion
within the individual. Moreover the theme of sports and entertainment in the ads and
campaigns helps the consumer to connect with its true self and motivates of performing
energetically and living off the edge. This relationship between the brand and the consumer
acts an inner fuel and the consumer feels he has wings to fly. Hence the brands identity not
only reflects functional benefit of the energy drink but emotional benefit too, and the
consumer ends up making the brand as a part of his life style.

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Question No 2

Global and Local Communication

Red Bull has globally achieved its position as one of the most successful brand in the whole
world in terms of its marketing campaigns and ads. According to Harvard Business Review,
Red Bull is far ahead than Coke and Pepsi in branding, its effective branding campaigns has
made it a huge success by not following traditional marketing techniques as any other brand.

Red Bull is famous for its innovative and unique techniques to connect with the consumer,
not only with its guerilla marketing but with its sponsorship too. Red Bull is widely popular
in Sports and Entertainment and has invested its assets in owning many popular teams like
Red Bull Racing, Scudeia Toro Rosso, New York Red Bulls, Red Bull Brazil, Red Bull
Ghana and many more. The sports that Red Bull sponsors not include energetic sports but
adventurous sports too. Red Bull has successfully sponsored extreme sports like, mountain
biking, wind surfing, cliff diving, snowboarding, BMX, skating, freestyle motor cross and
what not, Red Bull has globally taken over the sports and entertainment industry with its
marketing campaigns and sponsorships. Red Bull sponsored many music festivals too where
Red Bull lounges were setup, so that the audience can drink Red Bull and dance without
getting exhausted. Red Bull with its marketing techniques and promotions cater the need of
the consumers and make the product available on hand.

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Speaking of the unique global campaigns, recently Red Bull initiated Red Bull Stratos project
where an Austrian skydiver Felix Baumgartner jumps from the space over 128 kilometers.
The jump broke the world record and was shown live on Red Bull TV and Youtube with 40
million views. This marketing campaign was successful in spreading awareness regarding the
brand and associating sports as a Red Bull identity.

The brand is ruling the energy drink industry over more than 25 years, starting off with fancy
sports cars distributing free drinks, to sponsoring and collaborating with sports events. The
global success of Red Bull in market is huge and has provided benefit in terms of millions of
revenue in US market.

But locally in countries like Pakistan, India etc where Coke and Pepsi has taken over the
beverage industry, Red Bull needs to cater this market as well. Locally the ads and marketing
campaigns of Red Bull in Pakistan are not at all aggressive and successful as they are
globally.

Red Bull did start a marketing campaign of distributing Red Bull Drinks in educational
institutes in the fancy cars driven by female drivers, but did not got huge attention. The target

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market was not well aware of the campaign and did not actively participate. The TV ads of
Red Bull that were shown locally consisted of the cartoon characters reflecting the main
tagline that how Red Bull gave wings to its consumers. These global ads and were used
locally by the brand in order to create awareness and capture the attention of the target
market.

A marketing campaign called Red Bull Music Academy (RBMA) was landed in Lahore,
Pakistan in 2016 was New Zealands famous DJ/host Nick Dwyer who is also a RBMA
collaborator and gathers musicians from all around the whole to swap ideas. The RMBA was
held in Lahore and many music artists participated and qualified for the academy. This was a
successful marketing program initiated by Red Bull in Pakistan.

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Question No 3

There is a huge difference between local and global communication strategies of Red Bull.
As evident with the unique innovative marketing campaigns examples of Red Bull all over
the world, and the amount of successful sponsorship in sports and entertainment industry.
Locally Red Bull lacks the awareness and attention by the consumer providing the reason of
low aggressive advertising campaigns and consumer engagement activities. Globally these
sports activities and music activities capture huge attention but locally the marketing tactics
adopted by Red Bull are not generating sales in Pakistani market.

Red Bull has generated millions of revenue globally through sponsoring sports events and
investing in sports teams especially football. Locally too Red Bull can earn what it invested
in Pakistan by sponsoring the events the target market can be interested in. For example, in
2016 a marketing campaign of Red Bull music was initiated with the name Red Bull Sound
clash which didnt gain much popularity because of the unawareness of the target audience.

Secondly, another campaign was initiated of distributing free Red Bulls over saying the
famous political chant Go Nawaz Go in the days of election. This campaign was not
promoted widely as seen in the picture below, it was just pasted on a shelf of a local store.

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From above examples it is concluded that Red Bull does tries to follow sports and
entertainment marketing campaigns in Pakistan as done globally. But they fail to succeed or
gain attention of its target market as they are famous globally. The reason is that they are not
well communicated or promoted. No TV ads showing the competition or no billboards
regarding the information of the event. This lack of communication leads to a huge hole in
reaching the target audience that ultimately affects the sales of the brand.

The idea of investing in Cricket Team of Pakistan i.e. in PSL can gain huge popularity
among the audience, because cricket fever creates the most enthusiasm in the youth of
Pakistan. Secondly, sponsoring college and university concerts can lead to brand awareness
and consumption of Red Bull, because thats what the brand is offering energy and
entertainment.

Sponsoring in reality shows and talent shows can effect a great deal on the communication
gap in Pakistani market. The correct positioning of the brand to the correct target market will
definitely result in great performance of the brand. The events and shows sponsored by Red
Bull should be advertised well through all the mediums of communication. i.e. TV,

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Billboards, Radio and especially social media because thats where the target market i.e.
young individuals spend their most of the time. Spreading the message to the right audience
at the right time is what Red Bull should focus in Pakistan.

Finally, the marketing team of Red Bull Pakistan should start making TV ads to gain
consumers attention, to make them aware about the product and its benefits. Celebrity
endorsements especially sportsmen in those TV advertisements can do wonders for the
brand. Capturing the Pakistani market is what Red Bull should focus on, and by following its
famous aggressive guerilla marketing campaign it can be a huge success locally too.

Question No 4

Red Bull has gained huge success globally and is considered as a communication hit due to
its marketing campaigns and customer engagement. The fan base of Red Bull is increasing
day by day due to its sponsorships and endorsements. But on the other hand, Red Bull is
famous for its not so traditional marketing tactics, they tend to avoid traditional marketing
and focus on reaching its target market through research based efforts.

But, observing the local industry for Red Bull, the brand should focus on traditional
marketing too. TV advertisements, billboards, print ads will be beneficial in reaching the
target audience and gaining awareness, because Red Bull is still in its growth stage and needs
to be in the mind of the consumer to be remembered and consumed.

On the other hand, as globally Red Bull is gaining popularity because of its guerilla
marketing. Such non-traditional marketing should be used in Pakistan too. Red Bull theme
park with adventurous games should be set up in schools and colleges. Talent shows should
be organized to encourage students to participate and show their daring side. Racing of sports
cars and bikes should be organized by Red Bull to gain attention of the young enthusiastic
sportsmen. Sponsoring university adventurous trips can affect a great deal too. Both the
traditional and non-traditional marketing techniques discussed above can make Red Bull a
communication hit locally too.

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