Brand Development : Red Bull Analysis - Case Study Example

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Brand Development: Red Bull Case Study Analysis Name: Institution: Executive summary Red Bull is one of the most established energy drink companies in the world. The brand has been spread by a word of mouth campaigns and other marketing strategies. The product was able to expand to various market segments…
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Brand Development : Red Bull Case Study Analysis
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Download file to see previous pages The company is not against mixing. However, the marketing team is keen to sure that it creates a uniqueness that ensures increased revenues in the extensive market. Red Bull uses sports, pre-launching marketing and research, pricing and a strong reputation to maintain its market share. The brand is diversifying to new market products and segments. According to Red bull strategic and marketing team, successful branding must be associated with information and insights. Introduction Red bull energy drink was founded in the year 1985 by Dietrich Mateschiz. The Austrian founder happened to be a former marketing manager for Procter & Gamble’s Blendax. The concept was born from the many business trips he made in Asia, where the Red Buffalo drink was already popular. The product began to expand to foreign markets after dominating Austria for a period of five years. Red Bull became a market leader despite a lot of competition from established companies like coca-cola and PepsiCo. The company had a meteoric rise in the energy drinks market which attracted aggressive competition necessitated brand equity strategies and marketing. Overview of the branding issues Red Bull has heavily invested in brand equity, brand identity and brand architecture. The founder of the Red Bull brand was keen on its positioning. The slogan “revitalizes the body and the mind” became effective in communicating a profound message to the targeted markets. The strategic team wanted to create the impression that the drink can be taken any time of the day. The consumption of the energy drink was not limited to certain occasions. This has had the product competitive in all target markets. The strategic team developed the product on the premise that it was to be taken for energy production and not fun. This made the drink popular in the Western market. The drink was said to improve physical endurance, mental alertness, improve concentration and reaction speed, and overall wellbeing. These attributes attracted the consumers to the product leading to increased revenues. Red Bull energy drink is supplied in single packages. This size signaled to the consumers that the product was different from the traditional drinks (Kotler, 2000). The small size created the impression that the drink was stronger and more concentrated than other traditional drinks. On the side of the package was the words “energy drink” which had a conspicuous message to the consumers. The company also developed small brown glass bottles to be used in multiple locations. This enhances brand equity (Ellwood, 2002). When the product was launched in Germany, the demand easily outpaced the supply (Riezebos & Grinten, 2011). This forced the company to sell the bottles. The company believed that the use of glasses would lead to loss of revenues. Relevant branding theories In developing Customer-based brand equity (CBBE), Red Bull has established a proper brand identity through intensive brand awareness strategies. The company believes that the best way to promote the brand is to use testimonials from peers (Fayren & Lee, 2011). This gives the company increased revenues through increased consumer-interaction (Kotler, 2000). The brand is careful to use events sponsorship, endorsements from top athletes and electronic media to market its products. The strategic and marketing team ensured an elastic positioning. The company has targeted all the ages and occasions. Red ...Download file to see next pagesRead More
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