Red Bull´s sources of brand equity.
Red Bull is one of the most famous brands in the drink industry. With an innovative product Red Bull was able to sell millions and millions of cans and to draw profits of dizzy amount. But as often it is not only the product which determinates the success or failure of a company. And of this Red Bull is a very good example. Although nowadays Red Bull has to compete with the biggest drink companies in the world (Coca Cola, PepsiCo), it detains in its segment almost everywhere more than 50% market share. It is true that Red Bull was the first large and international energy drink producer, but for their leadership they did and still do a lot of accurate marketing actions in order to preserve and improve their awareness and image and as consequences their position. Like mentioned the marketing actions of Red Bull were very accurate and coherent themselves. Dietrich Mateschitz, the founder of Red Bull, was spending about two years to create the product and their packaging. He conceived an advertising strategy with basically two slogans (“Red Bull gives you wings” and “Red Bull revitalizes body and mind”), which are still in the Red Bull ads nowadays. The message of the ads is always the benefit of the product. This red line has been seen from the beginning until today. Red Bull focused a lot of the functional side of the drink. Also because of that Red Bull is practicing a premium price, they argue that it is easier to believe in an efficiency of a product if it is more expensive than their competitors. A lot of marketing actions of Red Bull wants to show people the different use opportunities of their drink. It should not be only a mixer or a clubbing drink. Therefore Red Bull defined 5 potential users: students, drivers, clubbers, business people and sports people. Red bull was able to get in some way mystic. But why? First of all the category of drink (energy drink) was completely new. Then Red Bull has a clever distribution and a new-market-enter concept. First they are available in “in” bars, discotheques and stores. They sponsored peers to take Red Bull in the public (confiding in the word-of-mouth) and only in a successive moment Red Bull is available in the discount stores, when a lot of people already know it. They call this concept “seeding program”, that were able to create a wave of buzz around the drink before and the first time of its apparition. Also the only available packaging (cans of 250 ml without reducing the price if taken in great quantity) contributes to the mystification and success of Red Bull. Red Bull is very active in the event and sponsor marketing, taking a lot of attention if this kind of event or sport (sport sman) fits well together with the message of Red Bull as an energetic drink. So the sports are often extreme sports or related to speed (see Formula 1). All this things were contributing and still contribute to the brand equity. The company has always take care a very lot of their image and awareness. So Red Bull is an example of a good, successful and advised marketing.
Do these sources change depending on the market or country?
The Red Bull global marketing strategy is to use similar techniques everywhere, without differentiating the product or the brand characteristics depending of different countries or different markets. The Red Bull now-famous package is similar everywhere, characterized by the blue and silver small can (250 ml), which allows the company to give a different idea of drink to consumers. In fact this small can signal that the product is different and stronger than traditional soft drinks. The demonstration of the power and success of this can comes from the Red Bull attempt to commercialize a different package for its product. The company developed a glass brown bottle that had to be sold in places where cans were not allowed; it...