RED BULL: BUILDING BRAND EQUITY IN NEW WAYS
Question 1: Describe Red Bull’s sources of brand equity. Do these sources change depending on the market or country?
Answer: Red Bull has a strong marketing strategy for communicating product value to customers. The strategy for building the brand has been created around a simple goal. Whenever a consumer is in need of energy, the company wants then to automatically think of Red Bull. The brand uses traditional media channels, but more important has been the role of word of mouth marketing, playing on associations with energy, danger and youth culture. Red Bull associates itself with numerous sports events along with young professionals and students who need a high energy level. This has been fostered through an alignment with extreme sports and adrenalin-fuelled activities, as well as street culture and music events. Through happenings such as these the roles of engagement and brand experience play a critical role. These campaigns have created a strong brand name globally. Such a strong brand name makes it natural leader among all energy drink providers. As a result of marketing campaign, in almost all countries where it operates, it has managed to attain at least 70% of market share. Moreover, Red Bull also has good distribution system to make sure that target customers get the product. However cost structure for these extensive marketing programs is expensive and constitute major chunk of their total cost. Red Bull contains, per 250 mL (8.4U.S. fl.oz.) serving, about 21.5 g sucrose, 5.25 g of glucose, 50 mg of inositol, 1000 mg of terrine, 600 mg of glucuronolactone, vitamin B 20mg of niacin, 5 mg of vitamin B6, 5 mg of pantothenic acidand 5mg of vitamin B12, 80 mg of caffeine. Red Bull has unique proprietary feature due to these ingredients and itscomposition. Red Bull also has good financial strength to analyze changes in customers’ needs and wants. Red Bull offers a product that has...
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