Essays on Branding, Marketing and Market Entry - Red Bull Case Study

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The paper "Branding, Marketing and Market Entry - Red Bull" is an outstanding example of a marketing case study.   Aligning the marketing program of the company to the branding policy is one way of achieving success in any business (Baladi, 2011). For a new product that has been introduced in an industry where competition is expected to be stiff, following the presence of well-established firms, an appropriate and effective market penetration strategy is a necessity. Such strategies as pre-marketing are the most effective when it comes to creating awareness among the potential consumers in the new market (Gobe, 2009).

This paper focuses on the issues of branding and marketing in the context of the Red Bull company with special consideration to such factors as the sources of branding equity in the company and the penetrative strategies adopted since the establishment of the company. The key areas considered are branding, marketing, product differentiation and possible effects of introducing variety in the firm’ s activities. The report covers an overview of the company’ s developments over the years but concentrates on the later years that constitute the past decade. Background When one Dietrich Mateschitz launched Red Bull in Austria twenty five years ago, it was just like any other local brand.

People expected that it would perform the same way as other local brands and perhaps disappear some years into its existence in the market. Red Bull was made out of an idea that had originated in Asia. As a marketing executive, Dietrich Mateschitz believed that the only way through which his idea and efforts would come to fruition was marketing. Barely a decade after the official launch in Austria, Red Bull was selling in twenty-five markets across the globe.

During this time, the sales had risen from 1.1 million units to well over 200 million units. By the year 2004, Red Bull had recorded sales of 2 billion units in approximately one hundred and twenty countries across the globe. This is the time when the business world and the general public got concerned about the rate at which the brand was developing. Various researchers embarked on a mission to establish the forces behind this performance.

All researches and studies on the company’ s success pointed to two ideas-excellent branding and effective marketing. The approach that Dietrich Mateschitz gave to branding and marketing was exceptional. The marketing program adopted was aligned with the branding strategy. Case issues Red bull is an energy-giving drink that is introduced to the market by a marketing manager whose hope of success in the business is rooted in branding and marketing. The major issues in the case of Red Bull are penetrating new markets and gaining consumer acceptance and global market competitiveness. When the product is first launched in Austria, certification becomes hard since the national bureau of standards is not in a position to classify the product under food, beverage, alcoholic drink or a soft drink.

Overcoming these issues becomes a major uphill threat to Dietrich Mateschitz. Branding is equally a challenge to the new product. Before its launch, Dietrich Mateschitz consults with a number of marketing agencies. The issue of brand loyalty also comes up when market research shows that there are many competitors in the market. At this time Coca Cola is a well-established firm dealing in similar products.

Other companies such as Pepsi are also in the race. In brief, the issues, in this case, revolve around market penetration, branding and brand loyalty as well as global competition.


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