Red Bulls Sources of Brand Equity - Essay Example

? Individual Case Analysis Q Red Bull’s Sources of Brand Equity Brand equity can be d as a collection of brand assets as well as liabilities related to a brand. It also encompasses the name of a brand along with its symbol which evidently adds to or takes away from the value offered by a service or product to an organisation along with its consumers (Aaker, 1991). The recognition of precise sources of brand equity is imperative from the marketing point of view in order to bestow a valuable strategic function along with guiding the decisions regarding marketing aspect. Moreover, the understanding also facilitates managers to comprehend as well as focus on the facets that enable to steer their brand equity. The precise ways in which a brand adds value can be recognised through gaining knowledge about the sources of brand equity (Keller, n.d.). In relation to the provided case scenario related to Red Bull, it can be comprehended that the company focused on the aspect of creating brand awareness as well as establishing their brand image. These two facets are the key sources of their brand equity. Development of the source of brand awareness has facilitated Red Bull to develop its brand equity. Red Bull has especially focused on the element of brand recall. Brand recall refers to the customers’ capability to distinguish a particular brand within different circumstances (Keller, n.d.). . With this notion, Red Bull concentrated on designing its products attractively. Moreover, within its growth strategy the company entered new markets by taking a slow method to optimize the anticipation as well as buzz from the company (Das, 2012). This was a key strategy to build brand equity of the company. Moreover, it focused on inventing the aspect of functional energy within the beverage category segment which facilitated it to create a distinct brand image among the customers. It also focused on above-the-line strategy with regard to marketing aspect to draw the attention of its customers. It created an eye-catching logo of two red bulls and a yellow sun. The animated message reinforced the value of Red Bull as a drink that gives an individual ‘wings’ i.e. it energizes the person. This has been the main notion conveyed by the company to its consumers which is the key source of brand equity for the company (Kumar & Robert 1988). Incorporation of a distinct flavour and packaging along with positioning were the other major facets for the company that facilitated it to develop its brand equity. In terms of packaging, under the logo of the company, highlighting the aspect of energy drink was a major consideration by the company. Moreover, it positioned the brand as revitalizing substance for body and mind. The product started to create a buzz as a mixer element in varied markets, however, the company primarily attempted to go beyond this aspect and appeal to a broader section of consumers especially the young ones (Rehman, 2011). The company also concentred on participating in different events and sporting activities which substantially boosted up its name and logo, which are the imperative elements for success of a company in terms of augmenting its brand equity. Q:2. Analysis of Red Bull’s Marketing Programs in Terms of how it contributes to the Brand’s Equity Red Bull is using uncongenial adverting policies, as it has uniquely positioned itself in the beverage industry. Its distinctive positioning has allowed it to detain a significant amount of brand recognition in different nations. The company focused on creating a sense of mystique amid its customers through its marketing program. It initially focused on word-of-mouth traditional method of advertising technique, however, it wanted to spread the awareness of the brand even more (Collins & Rusktad, 2008). Red Bull’s promotion strategies had facilitated it to flourish in the facets of market share, income, and units sold (Sarah, 2009). Exceptional positioning strategies were focused on by the company by targeting high-school and colleges going students, along with working class consumers. In these campaigns, the company was positioned as a trendy drink especially suited for young adults. Red Bull uses an extensive network of programs in its marketing campaigns. Apart from generally used programs like print, television as well as radio advertisements, the specialised programs used by Red Bull are sampling, point-of-purchase promotion as well as event marketing. These programs are the key drivers to provide the company with unique brand recognition amid its customers. It noticeably focused on product trial aspect of marketing activity. Advertising through the use of cartoon characters was a major beneficial strategy for the company to attain major market share and grab the attention of its target consumers. These aspects subsequently resulted in creating distinct brand equity for the company (Wood, 2000). It also participates in different events such as sports events in varied regions of the world. Its association with varied renowned brands of sports has also enabled the company to flourish its brand equity. The major associations of Red Bull are with NASCAR and major league soccer among others. Therefore, it can be recognised that a proliferation of assorted strategies in terms of marketing its products has enabled the company to perk up its brand equity. Q: 3. Evaluate Red Bull’s Move into Herbal Teas, Fast-Food Chains, and Magazines. Does it Make Sense Company to Expand into these Areas? What are the Potential Benefits and Dangers? Red Bull, after a generally successful stint in the periphery of offering energy drinks, decided to enhance the awareness of the brand by developing new products. It moved towards selling an herbal drink named as Carpe Diem, which was promoted as a product which boosted the immunity system along with improving metabolism. Moreover, it also announced a plan to function a fast-food chain in Switzerland as well as Austria. Furthermore, in another venture of expansion launching of a quarterly magazine was idealized. The magazine aimed to focus on showcasing the lifestyle of Red Bull which was evidently distinct from other brands. In this regard, it can be highlighted that the venture of the company expand into these areas has certain significant merits. The potential benefits of these moves can be expansion of market share, brand recognition, brand recall and most importantly brand equity. It is observed that in a period of around 10 years i.e. 1990s to around 2000s the company gained much significance and augmented market share. These benefits can be apparently leveraged by the company to obtain recognition for its new diversified segments. The other potential benefit from this diversification is that the company would be able to reach out to a wider segment of consumers as it is recognised that the energy drink of the company only targeted a niche segment of market, however the new segments would enable the company to create awareness amid large audience. Nonetheless, the dangers from the diversification can be the fact that with the emergence of competitiveness in the market, it can be quite difficult for the company to challenge existing players in market within these sectors. The company can also face difficulties to meet up with the quality requirements in the new herbal tea segment. In case of fast-food chains as well, there are exiting major competitors such as McDonald’s present which might create a major challenge for the company in terms of making an entry. Similarly, in the magazine segment also the company might be focusing on a particular kind of offerings which target in promoting the existing brand of the company. This narrow focus also might be perilous for the company in future. References Aaker, D. A. (1991). Managing Brand Equity. New York: The Free Press. Collins, D.J. & Rusktad, M. G. (2008). Red Bull’s Marketing Strategy. Branded Marketing Strategy, pp.1-10. Das, D. (2012). A Conceptual Framework to Measure Brand Equity in Indian Banking & Financial Services Firms 6 (3), pp.12-18. Keller, K. L. (n.d.). Measuring Brand Equity. Retrieved from http://www.terry.uga.edu/~rgrover/chapter_26.pdf Kumar, V. & Robert P. L. (1988). Measuring the Effect of Retail Store Promotions on Brand and Store Substitution, Journal of Marketing Research 25 (2), pp.178-185. Rehman, A. U. (2011). Red Bull’s: Building Quality in New Ways. Retrieved from http://www.scribd.com/doc/116938981/Red-Bull-building-brand-equity-in-new-ways Sarah, L.U. (2009). Marketing Strategy in Terms of Promotion and Communication for Energy Drinks in Ghana. Sinebrychoff Brewery. University of Apply Sciences, pp.12-28. Wood, L. (2000). Brands and brand equity: definition and management. Management Decision 38 (9), pp.662-669. Read More