Red Bull: Building Brand Equity in New Ways!
Three Questions on Pearson Case Study 4.
Redmond Review 1. Describe Red Bull’s Sources of Brand Equity. Do they change depending on market or country?
According to Keller (2008, p 53), brand equity is the strong, favorable and unique brand associations in the memory of customers. He goes on to define (p 54) two sources of brand equity: 1.) Brand Awareness; and 2.) Brand Image. Red Bull has well defined tactics for both sources.
1.1 The Brand Awareness Source for Red Bull Brand Equity
Keller (p 54) notes two elements to Brand Awareness: 1.) Recognition; and 2.) Recall. He postulates that if buy decisions are made at the point of purchase, then brand name, logo, packaging and the other elements of brand recognition are important factors. If the buy decision is made before arriving at the point of purchase, then brand recall is centrally important. Duncan (2005, p 140) concludes that low-involvement purchase is usually done for products that are relatively cheap, bought frequently, and are low risk. In such cases, in addition to traditional advertising, with its reach and frequency drills, it would be productive to spend time getting the name, logo and packaging correct.
Red Bull did just this. In our reading, Pearson Case Study 4 (2006, p 70) describes how Red Bull selected a distinctive, slim can. They also created a prominent and eye-catching logo of two bulls and a yellow sun. Package wording effectively communicates the products benefits: Energy Drink. The packaging is an important part of the branding, as we might expect for a low-involvement product. Pearson Case Study 4 goes on (p 70) to note that changing the carefully selected package elements, in Germany substituting a glass bottle for the slim can, resulted in a dramatic drop off in sales.
To increase brand recall, Keller (p 55) advises that a slogan or a jingle can establish the memory linkages
References: Duncan, T (2005). Principles of Advertising & IMC. McGraw-Hill/Irwin. Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall. Neumeier, M (2006). The Brand Gap. New Riders. Pearson Case Study 4 (2006). Red Bull: Building Brand Equity in New Ways!. Pearson/ Prentice-Hall.