Questions for the Red Bull Case
1. What is Red Bull’s success formula? Please explain thoroughly.
• Red Bull is known for its nutritional quality, especially in mature markets. In the youth markets, the product is very much a status symbol. The slogan 'Red Bull gives you wings' is short, memorable and it says something meaningful about the product. The price is more expensive than competitors' products, which makes consumers believe in Red Bull's energy enhancing properties and provides a unique territory in the beverage market. The flavor of Red Bull is sweet and carbonated, but also has a "medical taste". The strong taste indicates to consumers that the product is more than mere refreshment. The silver-and-blue 250 ml can, signals to consumers that the contents are different from and stronger than traditional soft drinks. The logo is two red bulls, about to collide heads. Under the logo, the words "Energy Drink" communicate the product's benefit.
• Red Bull’s strategy for market entry relied heavily on word-of-mouth and “seeding.’ The company targeted a select handful of hip and trendy clubs, bars, and stores, allowing trendsetters the first opportunity to sample its products to generate buzz. After six months of seeding, Red Bull introduced its product to locations surrounding the “in” seeding locations, which made it easier for the consumer to purchase the brand. Once it entered supermarkets it reached the mass market.
• Red Bull had a full advantage when its energy drink reached the shelves. It was the only product in its category for five years, which lessened the competition.
• Red Bull also targeted specific celebrities, including sports figures and entertainers, and sponsored sporting events to get its name out. • Unlike any other major beverage company’s marketing plan Red Bull bought out its traditional advertising last • Red Bull uses highly specific electronic media....
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