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Red Bull Building Brand Equity in Non-Traditional Ways - Case Study Example

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This research is being carried out to describe Red Bull’s Sources of Brand Equity, analyze Red Bull’s marketing program in terms of how it contributes to the brand’s equity, discuss strengths and weaknesses and evaluate Red Bull’s move into herbal tea, fast food chains, and magazines…
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Red Bull Building Brand Equity in Non-Traditional Ways
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Download file to see previous pages The present research has identified that the market dominance of Red Bull in international markets also appeared as a source of brand equity for Red Bull. Brand equity is calculated by multiplying the percentage of effective market share with relative price and durability (loyalty index). Therefore, market dominance is a source of brand equity for the brand. Consumer Awareness: The awareness which company created in the minds of the consumers before and after entering into the market also stimulated the demand of people for this energy drink. Word-of-mouth appeared as the major driver in creating the awareness among the people for Red Bull. Brand awareness and brand meaning are the major contributors to brand equity therefore; word of mouth strategy of company has appeared as a source of brand equity. Development of Strong Customer Base: Initially the availability of the drink was limited however; later on it became available in supermarkets. Kraihamer argued that intention of Red Bull was to build strong customer base rather than maximising weighted distribution. Moreover, limited availability also contributed to the development of brand’s cachet. Consumer Preferences: Less price-sensitivity in the Western market as compared to Asian markets increased the access to the brand. Brands which face low price sensitivity and have high volume shares are usually the market leaders. Red Bull has high volume shares and face low price sensitivity in the western markets therefore, appears as one of the market leaders in the related products category, which is a source of brand equity. Brand Image Associations: Red Bull was launched as a stimulating product for the people who are mentally or physically fatigued and need an energetic and relaxing drink. The association between fatigue and energy in the minds of consumers also contributed to increase brand equity of the drink. On the other hand, most of the other drinks were being sold as entertaining drinks rather than energy drinks. “Brand equity is the accumulated value of the brand image or identity in the consumer’s mind”. ...Download file to see next pages Read More
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