The paper "Red Bull’ s Sources of Brand Equity" is a great example of a marketing assignment. Red bull gained brand equity through awareness and the perception of consumers that the brand is better than other brands. To begin with, Red Bull had gained global awareness indicated by the fact that the brand was available in twenty-five markets including South Africa, Eastern and Western European and New Zealand by the time it was introduced in the Australian market in 1997. The slogan applied in marketing the brand expressing the importance of the brand and its value.
While the slogan “ Red Bull gives you wings” expressed Red Bull as an energy drink, Red Bull “ Revitalizes body and mind” expressing the functionality of the drink. This advertisement slogan captured attention as it portrayed Red Bull as the drink to consume at any occasion or time. The consumers who were curious about the functionality of Red Bull thus bought the drink for trial. Brand awareness was also enhanced through testimonials from peers who had consumed Red Bull and the illusion of popularity created by placing empty cans in clubs.
The word of mouth spread even to neighboring countries increasing awareness. Consumers' perception of the product as exceptionally good through advertisement and the slogans portrayed Red Bull as improving physical endurance hence the creation of brand equity (Muniz & O’ Guinn, 2001). Truck drivers adopted the drink so as to reap this benefit while students consumed it due to the claimed properties of increasing mental alertness and improving concentration, speed and reaction which were necessary for learning. Other consumers including those in clubs purchased the drink to get properties such as improvement of the overall feeling of well-being and metabolism stimulation. Packaging also influenced consumer perception.
The drink was packed in small 250ml cans which portrayed it as a stronger drink as compared to traditional drinks. In addition, the Red Bull logo (two red bulls about to collide head-on in front of a yellow sun) depicted strength. The packaging was perceived as aesthetic and convenient for the customer (Anholt, 2006). The second slogan Red Bull “ Revitalizes body and mind” portraying the drink as exceptionally good. It was not bound to any activity, time or occasion.
The change of flavor and distribution channel whereby the product was traded in single packs also communicated that the drink was a functional energy drink and customers were more concerned about this. Lastly, the market entry strategy contributed to Red Bull’ s brand equity. Red Bull targeted opinion leaders who according to Davidson (1998) have a great influence on their fans or those they lead and thus Red Bull drinks were availed in exclusive after-parties, before award shows, limos and sports competitions. The sources of brand equity differ from one country or market to another based on government policies.
In the case of Australia, the government had different food and drugs categories as compared to the USA and the UK. Since there were three food categories, introducing Red Bull into the market required an entirely new category be created thus making it difficult for the drink to be approved.
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