A case study of Red Bull Company
August 08, 2011
A case study of Red Bull Company
Course Title: Brand Management
Course code: MKT 4103
Abdullah Mohammed Ibrahim
Assistant Professor in Marketing, DBA
Northern University Bangladesh
Md Ashraful Islam
Date of Submission: August 08, 2011
Question no- 1:
Describe the Red Bull’s sources of brand equity. Analyze the Red Bull’s marketing program in terms of how it contributes to the brand’s equity. Do the SWOT analysis of Red Bull. Answer to the question no 1:
Brand equity: The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster. Example: The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda is an example of brand equity. Red Bull’s Sources of brand equity:
Red Bull uses the non traditional ways to chive its targets and unique approaches to create the brand equity. Right from the beginning the company makes it very clears to it all its existing and potential customer the message of its product functionality in a clear way. Related to the pricing of the product company positions the product above 10% of the upper segment of the competition in order to create the mindset of the premium brand and also influencing people by not letting them buying a sample beverage drink. This also helps the company from being categorized different from other beverages company because its uses word-of-mouth marketing and creating the brand awareness by this way. Once the brand awareness is created then it resort ads within the TV and other related media channels. The company also tries to create by mystique by participating and sponsoring events within the market even before the product is not available within the market. Also the company places the market instance relatively strategically by trading a niche audience and trying to influences them first rather than spreading out to the whole target of customers. Indeed the company tried different ways of market instance and different kinds of brand equity management within different market; however, most of the cases this strategy failed as it is started within the case as. The UK case the company tries to play the cell strategy within markets like the USA, however this methodology is relatively same to other countries but the difference is related to geographical situation of the USA and relatively spread out demographic within this market.
The value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks and channel relationships. Brand Equity is a differential value of a brand which a consumer has in his mind due to the amount of knowledge he has about that brand. “Brand Equity is that incremental value that occurs to a product when it is branded.
Those are the main sources of brand equity based on Red Bull:- 1. Brand awareness is one of the sources of Brand Equity.
2. A consumer’s perception that the brand is better than it really is. 3. A consumer’s preference for a brand based on cachet or status of owning it. If one is successful in these 3 aspects an added benefit is that it will pull the...
References: 1. Red Bull’s case study
2. Search by: www.google.com
5. Creswell, JW 1994, Research design: qualitative and quantitative approaches, Sage, Thousand Oaks, California.
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