MKT - RED BULL
Red Bull is the most popular energy drink in the world, selling over $4.7 billion cans annually. The company was started by an Austrian entrepreneur Dietrich Mateschitz in the 80s. Red Bull pursued an aggressive yet different marketing strategy to grow their brand globally. Red Bull met an untapped need within the beverage consumer market and the strength of their brand provided them leverage to market themselves in a non-traditional manner. The brand is very strong, but does it have true staying power to last another five years as number one? Market Situation in 2005 (now)
Red Bull is focused on the 8-oz. can category while its competitors (Hansen’s and Rock Star focus their energy efforts on 16 oz. cans at retail. If brands such as Monster (belongs to Hansen’s) and Rock Star continue to grow north of $100 million each with strong sales per point of distribution, these big players could consolidate their fast-growing brands. Red Bull challenges as of 2005 (now)
Analysts believe that Red Bull faces some potential bumps:
1. Product has oversaturated the market. Red Bull is in just about everywhere. This could potentially remove the “cool” factor that made the brand so successful. 2. Other companies are improving formulations, flavors, and packaging. Red Bull stays the same. 3. Red Bull has a less-than-stellar industry reputation and many people are praying for their demise as a result. 4. Red Bull is a one-trick pony, compared to others such as Coke and Pepsi). The company is in serious trouble if a) sales start to slump b) a price war starts, or 3) over-energy-drink health concerns start to proliferate. Red Bull Response to Extending the Brand’s Reach
It was testing an herbal tea drink named Carpe Diem in LA and was considering using the name to launch an international fast-food concept It was also about to release a quarterly magazine touching upon key themes of Red Bull life Style such as extreme sports, the clubbing life, and music. Mateschitz says “We created the market. If you appreciate the product, you want the real one, the original.”
MKT-07: Social Influence Marketing
Red Bull (UVA-M-0663)
Brand Equity Note
1. What is Red Bull’s success formula?
Red Bull possesses key brand elements that helped create points of differentiation for the Red Bull brand; therefore positioning Red Bull as the world’s dominant functional energy drink. Brand Name – “Red Bull” - Red Bull is an energy drink that promises to “vitalize body and mind”. Red Bull recognized that it did not have a distinct target demographic. Therefore, it concluded that all people need energy and promoted Red Bull as consumption for energy and health, not for enjoyment. Red Bull Logo – An oriental-theme depiction of two red bulls about to collide head-on in front of yellow sun. Beneath the logo appeared the words “energy drink”. Cool image - By positioning Red Bull with influential people and places, curious and adventurous customers tried the brand and spread the word. Red Bull promoted a "cool" public image to raise their brand power. Slogan - “Red Bull gives you wiiings!!” - Red Bull is marketed as a product that can refuel a person and create sharper minds. The combination of several energy-boosting ingredients enables Red Bull drinks to contain more energy than any beverage in the marketplace. Red Bull also used humorous animated cartoon characters (e.g. Dentist and Count Dracula) to demonstrate the fun-loving virtues of their energy drink. This slogan helped create worldwide brand recognition. Also, Red Bull built their brand equity through strategic marketing initiatives involving the product, price, place, and promotion of the Red Bull functional energy drink. Product – Red Bull was designed to improve physical endurance, stimulate metabolism, improve overall well-being, improve speed and concentration, and increase mental alertness. The flavor, color, texture, and...
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