The paper "Red Bull’ s Advertising Effectiveness" is a perfect example of a case study on marketing. This paper discusses the Red Bull brand, with a major focus on the strategy used to market it. The product’ s brand image is derived from its packaging, the slogan used, its flavor, as well as premium pricing. At its initial stages, the company focused on word-of-mouth to market itself in Austria, and this enabled it to spread progressively to other countries. The brand’ s popularity has however been rocked by controversies surrounding the product’ s ingredients. Despite this, the brand has maintained its originality and this has been a major factor contributing to its spread in many countries.
This is supported by Red Bull’ s innovative advertising strategy. Red Bull GmBH was started in 1985 by Dietrich Mateschitz, an Austrian who formerly worked with Procter & Gamble Blendax as a marketing manager. Mateschitz launched Red Bull in Austria in 1987 with the slogan “ Red Bull verleiht Fluungel” which means “ Red Bull gives you wings. ” The drink was available exclusively in Austria for five years before it gradually spread out to other European countries.
The growth strategy was premised on the idea of entering markets slowly and methodically so as to maximize impact and hence build a strong reputation. By then, Red Bull’ s marketing activities were limited to television commercials that adopted the same format of applying animated shorts to reinforce the product’ s slogan. By 1997, Red Bull had spread into 25 countries including Eastern and Western Europe, South Africa and New Zealand. At the same time, sales increased from 1.1 million units to over 200 million units.
Further, by 2004 the company had achieved worldwide annual sales of 2 billion cans in 120 countries. But despite this growth, Red Bull remained a relatively small company with only 1800 employees worldwide and 200 at its headquarters (Keller, 2008). With the above background information, this paper analyses the Red Bull brand by discussing the marketing strategies adopted for the product. 3. Analysis of Red Bull3.1 Sources of brand equityA basic idea about the concept of brand equity is that the power of a brand lies in the minds of the consumers as well as what they have experienced and learned about the brand over time (Keller, not dated).
Brand equity is the value of a brand resulting from high brand awareness and strong, favorable and possibly unique associations that consumers have in memory about a particular brand (Shimp, 2008). The first attribute of Red Bull that appeals to the customer is the can used to package the drink. Red Bull realized that when the drink was sold in cans, massive sales were recorded, but the sales declined when the drink was offered in bottles, especially in Germany.
Hence, the first aspect of Red Bull’ s brand equity is the can.