The paper "Key Branding Issues Pertaining to Red Bull" is a good example of a marketing case study. The findings of this report depict that, Red Bull’ s success as a brand hinges on various branding elements that position the product as a unique brand with energy-enhancing elements, therefore, creating its unique and superior position in the minds of consumers. Although Red Bull has been successful in some markets, the reception of the product in other has been characterised by numerous challenges. Basically, the brand management strategies that the company uses focus on gaining a competitive edge over soft drink brands rather than emerging energy drinks brands.
As a result, Red Bull faces stiff competition from new entrants energy drinks brands especially in the US and the UK market where it is directly challenged by the dominance of Lucozade. In addition, health concerns over the caffeine levels in Red Bull also pose a challenge to Red Bull as a brand. This report recommends that in order for Red Bull to overcome these challenges, the company should develop well thought and carefully planned brand management strategies that suit the specific needs of each market segments. Background Red Bull was first launched in Austria as an energy-drink with energy enhancement and revitalizing elements.
It was subsequently marketed along these lines in order to create a unique brand which was more enhanced than the soft drinks available in the market. This gave Red Bull brand leverage in the market which developed further through word of mouth advertising, strategic event sponsorship, radio, print and televised commercials. Nevertheless, with time the market has become more competitive due to the emergence of new energy drink brands.
Currently Red Bull faces stiff competition from arch-rival products such as Monster Brand from Hansen Natural Corp and Coca cola’ s KMX which have affected the company’ s market share. In addition, due to health-related concerns, some countries such as Ireland, France, Norway and Denmark have restricted the sale of Red Bull and therefore slowed down the growth of its market share worldwide (Keller, 2008). Case Issues A critical review of the case study on Red Bull, the conflicting nature of the targeting strategies employed to market Red Bull and the positioning of the brand in different markets is evident.
According to Lamb et al (2011) brand positioning refers to the process of creating an image or an impression of a brand in the minds of consumers. On the other hand, targeting can be described as the use of different marketing or promotional strategy in order to appeal to the specific needs of the market (Lamb et al, 2011). From this case study, it is evident that Red Bull is positioned and targeted in varying ways that may create confusion in the minds of consumers.
For instance, Red Bull is generally positioned as an energy drink that revitalizes body and mind. However, it is apparent that Red Bull’ s targeting strategies mainly focus on gaining a competitive edge over soft drink brands rather than emerging energy drinks brands (Keller, 2008).
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