Red Bull Brand Audit - Case Study Example

Red Bull Brand Audit Name Institution Affiliation Red Bull Brand Audit Objectives Red Bull as an energy drink, the exploitation of its audit has several objectives that are projected towards achieving the goals of the Company. One of the common but major objectives is to provide enlightened information on the perspective of the potential customers and to determine the reflection of the image of the Company to the public. These objectives are beneficial in collecting information on the perception, reputation, and attitude towards the brand in the market that helps in planning. Besides, by conducting this audit, the specific objectives are to: Determine the business resources strength and reliability. find out the value of the business against the competitors create awareness of the branch in the market determine the threats from the outsides of the business environment and Get familiar with the new trends and market opportunities. Determine the effectiveness of the brand management efforts. Scope of Audit This defines extend by which the brand audit is conducted and therefore draws the boundary within which the auditing process lies including sources of information. This then controls the flow of information within a well-defined ground that prevents redundancy in the process. This audit is conducted on two major grounds, that is, based on the perspective of the potential customers (who are the target audience) and the other based on the perspective of the Company itself. Customers’ opinions on Red Bull as a brand are important as it helps in achieving effective goals such as winning customer loyalty and potentiality (Red Bull, 2015). On the other hand, the Company has to be vigilant enough to define its terms within the competitive range that will determine its survival in the market. Approach To be able to conduct an effective brand audit process, there are five key sub-titles that are given attention. These subtitles include; Brand Inventories – that provides an analysis of the flow of Red Bull as a brand from the Company. This include the packaging and labeling process, marketing strategies, brand portfolio analysis, competitors brand inventories and determination of the strengths and weaknesses. Generally, the Red Bull brand inventories provide information about the Company and an effective goal on the branding process. Brand exploratory – as opposed to brand inventory, brand exploratory involves all the information that pertains to the customers’ perspectives. Here, information about the brand association, brand positioning analysis, and consumer perception analysis is addressed. Through these analyses, consumer behavior is easily exploited and thus able to determine the areas in which there is need for expansion and/or change (invention) to abduct the expected customer response in the consumption process (Craswell et all, 2012). An understanding of the Red Bull brand against competing energy drinking brands is expressed in the brand auditing process. This helps in the determination of a perfect comparative analysis that will be helpful in expressing the margin between Red Bull brand and the existing brands in the market. Background information (Red Bull) Red Bull Company has had a unique market with which it operates because Red Bull energy drink was launched as first product in its category in mid-1980’s (Russell-Bennett et all, 2010). This was after Dietrich Mateschitz founded its formula. Since then, Red Bull has expanded its sales market all over the world with over one hundred and sixty nine countries already covered. The growth was experienced from the first local market in Austria. Red Bull took advantage of its uniqueness in the market and managed to spread its customer loyalty across the globe. To date, there are over sixty billion cans of Red Bull consumed. Red Bull has not only survived the market due to its uniqueness but also the potentiality in its employees who seem to have a different approach in advertising. Instead of relying on media stations for advertisement, Red Bull energy drink has been presented to the potential customers (male between the age of 18 yrs and 38yrs) (Baldwin & Brand, 2011). This has made people feel that this product is part of them rather than being a great product that they should give a try. This strategy has been able to win Red Bull customer loyalty and a growing market. Currently Red Bull Company has about ten thousand nine hundred and ninety nine employees in the 169 countries around the world. It has 28 years in the market and counting. Background Information (Industry) Though Red Bull is categorized under energy drinks, it has competition from other soft drink companies like Coca Cola and Pepsi. This does not mean there is no energy drink Competitors that Red Bull faces. Lucozade and Ribena are the major competitors that Red Bull faces in its category. This Industry has the Companies involved targeting same audience, sports men and young youths who engage in a lot of sporty activities. This makes the Industry of energy drinks one of the most competitive in the current world market. Many of the Companies in this category of drinks are formed in the times that much of the world’s devolution is taking place and thus enhanced their spread very first. With the advanced technology, the social media has been the center where information goes viral and demand is raised every now and then. Through this competitive environment, Red Bull has managed to survive and make one of the highest sales noted in the world market. In 2015 alone, Red Bull was able to sell 5.7 billion cans (Red Bull, 2015). Consumer Analysis Energy drink consumption has been faced by a number of ups and downs along with the competitive environment. The most common trend that is noted easily is the specific age group that consumes much of the produced energy drinks. This is the age group of between 18-34 years. This is because this age group has a preference for sweeter sugar induced flavored energy drinks rather than the bitter coffee flavor. Besides, research has indicated that the largest proportion of the young generation prefers sweeter and sugary energy drinks whereas about 27% of preferring coffee induced taste of the same product (Red Bull, 2015). Older age groups have indicated an interest in the consumption of bitter-taste energy drinks. On the other hand, there has been a noted connection between masculinity and the consumption of energy drinks. It has been noted that most of the individuals who sense threat to their masculinity consume much of the energy drinks. This has been the case with most of the individuals engaging in sporty activities. This is because energy drinks provide a quick compensation for the energy that is needed in sporty activities. Another key trend to keep note of is one that involve the social-cultural trends that majorly focuses on health. A number of individuals have developed a culture of healthy meals. This has developed a concern in the contents that are incorporated in manufactured products. Most of the people today check whether energy drinks has an additive and if yes, they confirm the levels. This has made this proportion of individuals create a preference of a type of energy drink to the others available in the market. A concern is also focused on the introduction of energy shots that have led to a substantive decrease in energy drinks consumption. Brand Inventory Supporting Marketing programs Red Bull has been the best energy drink producer over the years since it was founded (Red Bull, 2015). It has experienced success due to its different ways and forms in which it does its marketing. Red Bull does not handle production of energy drinks alone as other energy drink Companies do but get involved in what people like to do and draw attention to. Red Bull manages this by getting involved in sport activities such as sky diving, skating, car racing among many others. This has led to an idea that Red Bull is not interested in getting its products sold but an analogy of involvement with the people who buy their product. Red Bull has also been able to achieve this unique concept of winning customer loyalty through indulging in promotions and innovative moves. Through a compilation of its marketing strategies, Red Bull has managed to bold on four criteria that enforces success. First, it is incorporates an above the line strategy. This involves what people see in the media and the TVs. This is achieved through creating an advertisement that reaches a large number of target audience. Below the line, on the other hand, is an advertising strategy where Red Bull reaches their customers directly and approaches a small target group. With this strategy, they are able to obtain direct response from the immediate customers and act on their desires through identification of opportunities. Pull market, where a word of mouth is involved and a person-to-person level is addressed about Red Bull soft drinks. Finally, involvement in innovative promotional activities like the Red Bull Wings Team has been a boost for Red Bull Company (Red Bull, 2015). Red Bull Marketing Strategies Red Bull Company has been able to brand its products in a variety of ways in which the potential customers can enjoy freedom of choice and preference. This has then led to a stream of other forms of products that are linked to Red Bull but perform the same purpose as the energy drink. This has helped Red Bull boost their sales and maintain their initial customers. These products are ranging from Red Bull energy drinks through to Red Bull energy plasters and Red Bull energy powders or tablets. With the amputation of these branding strategies, there are sub-branding criteria that include the involvement of the customer’s wants and needs. Red Bull energy (energy drink, sugar free, energy shot and cola), Red Bull health and wellness (vitamin C, memory boost, stress reliever) and Red Bull red edition (young forever, and indulge) (Hangkinson & Cowking, 2010). This then gives the customer the freedom to go for a red bull drink with which he/she knows the exact purpose it was manufactured for. These branding criteria have enabled Red Bull Company to stay at the top of the market in the energy drinks industry. Competitors’ Brand Inventory The competitors in the energy drink industry have a more or less same branding strategy. Having understood that they have the same target market, they are finding it difficult to create competitive ground that will make them survive. This then pushes them to go for the only left neutral ground for negotiation that is pricing. They end up lowering their prices with an aim of making more sales. Red Bull has taken advantage of this weakness and so far, they have succeeded. Strengths and Weaknesses Being in a universal market is advantageous due to the popularity of the products produced in an Industry. This leads to an increased sales compared to other forms of market structures. Red Bull has experienced this advantage and is currently leading by example by giving back to the society at large by participating in sponsorship of societal organizations. There is a particular level of trust and loyalty built between Red Bull and the potential customers. The weakness that Red Bull might face in such a market structure is a rapid fall in the sales as the trust of the people is held between a narrow thread. A little fault of information about the Company can be a triggered ‘bomb’ that destroys it completely. Besides, it takes a continuous level of change of the marketing structure through innovation that upgrades with time and technology. This can be a weakness for Red Bull is a large scale Company that needs requires much time to adjust. Brand Exploratory Brand Associations Red Bull has an effective association with the local environment and the society that marks the customer relation and involvement. There six different ways with which Red Bull gets associated with the public and become part of it. These include: The physique – the logo that presents the two bulls fighting delivers the nature of strength associated with Red Bull energy drink. The colors blue, red and silver are also associated by the sense of muscular nature and strength. Relationship – the involvement of Red Bull Company in dancing programs and music events have supported its association and relation with the public. Besides, the sponsoring of athletes has also contributed to this nature of association. Personality – Red Bull Company has also put into consideration the involvement of an individual view and wants in the whole process. Taking consideration on creativity, innovation, fun and ambitions that have been expressed entirely have led to association even more. Culture – This portion of association is not left behind in the involvement of the public into the association with Red Bull brands. The aspect of extreme sports, art and music involvement has powered this association. Self-Image – this is in the perspective of energy use and consumption. What is the energy gained used for? Going over limits and living like one would desire to create a comfort zone for individuals. Reflection – this portion touches on lifestyle, young people and the want to be special is a factor that Red Bull is associated with and plays a part in addressing the comfort of its consumers. Brand Positioning Analysis Red bull has a brand positioning that is supported by six core sources of information. This include the Brand Domain (energizing drink), brand heritage (extreme sports and unhealthy drink), brand value (efficiency, passion and innovation), brand reflection (sportive and ready to party), and brand personality and culture. More of this has been discussed herein. Summary of competitor analysis There are about seven key competitors in the global market for energy drinks. Red Bull is the healthiest of all of them in terms of business. There is no doubt that this is the case. Here is a representation of how these competitors have the shares of the market strength and customer loyalty: Company Percentage Red Bull 42% Monster 37% Rockster 11% Amp 4% NOS 4% Full Throttle 2% X-energy 0% VPX Redline 0% Retrieved from: www.energydiend.com Recommendations Going back to the objectives stated at the beginning of the brand audit process, I would recommend that Red Bull Comopany keep its strategies unique. This will always help in making its achievement as per the goals set. I wouldalso recommend that the use of innovation and inventions be applied more frequently to keep relevance bold enough to captuer the attention of the potential customers. Besides, this will help the Comapany familiarize with the new trends in the global market and thus identifying opportunities to be exploited. Conclusion Having gone through the auditing process I can conclude that it has been a success. This is because the objectives written at the beginning of the audit have been achieved. Just to provide justification for this claim, determination of busisness strength is achieved through the analysis and comparison with the various competitors. The business value is represented by the proportion of sales it makes for a year that is given by an example where by in 2015, Red Bull made sales of over 5.7 billion cans of energy drinks. This rates Rd Bull as a global (large scale) Company. On the other hand, we have been able to go through an analysis of the behavior of consumers which dictates the market trends . Finally we have been able to determine the areas with which Red Bull rely on as its strengths and those that play its weaknesses besides defining the effectiveness of the brand management efforts that is displayed by the means of a graph. It is therefore important that Red Bull Company keep aiming higher with goals after goals after every experience of a success. References Baldwin, A. A., & Brand, T. (2011). The impact of XBRL: A Delphi investigation. 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