The paper “ Sources of Red Bull’ s Brand Equity, Red Bull’ s Marketing Program’ s Contribution to the Brand Equity, Maintaining the Marketing Momentum” is a potent example of a case study on marketing. Red Bull is an energy drink founded in 1985 although it started being sold in Austria in 1987. Since its inception, Red Bull has expanded its presence to many other countries and has come to be known as one of the best energy drinks in the functional food category. Despite the growing competition from upcoming brands, the red bull has continued to increase its revenue base.
The reason behind Red Bull’ s success has been associated with the company’ s marketing strategy mainly centered on the word of mouth as well as the value that the consumers have come to attach to the drink. This report aims at analyzing some of the branding issues associated with Red bull’ s success. Sources of Red Bull’ s brand equityThere are various sources of brand equity for Red Bull which includes the following; AwarenessIn 1987, Red Bull was launched in Austria before its presence fast spreading to other markets globally.
Red Bull's choice of brand positioning slogans portrayed the material advantage of the brand in a manner that was easy to grasp. The use of word of mouth proved an effective advertising strategy since opinion shapers influenced their peers into buying the brand ((Dawson, 2009). Word of mouth also spread the brand knowledge to consumers outside Austria even before it entered their markets. Placing empty cans at various places shortly after its launch created an illusion about the brands' popularity. Consumers’ perception that the brand is better than it actually is. PerceptionThe company created a perception about brand superiority through proper choice of slogans such as ‘ Red Bull gives you wings’ making it become a preferred drink for those wanting to boost their energy.
Their advertisements made claims such as ‘ the brand improves physical endurance’ , ‘ improve reaction, speed, and concentration’ , ‘ and increases mental awareness’ among others. As a result, people consumed the brand to get some of these properties. The slogan that it revitalizes one's body and mind attracted customers so as to get their bodies and minds revitalized. StatusTheir market entry strategy targeted opinion leaders such as sportsmen and entertainment celebrities and pursued a premium pricing model.
This influenced people to buy the brand since they associated it with people of a certain status. The pricing served to convince people about its superiority and popularity. These sources of brand equity for Red Bull do change depending on the market or the country as each market is governed by different sets of rules and regulations depending on its host country. For example, the Austrian market had different categories of food and drugs from those of other countries which made its approval difficult in the country initially. Red Bull’ s marketing program’ s contribution to brand equityRed bull adopted the following market programs that contributed to its brand equity.
The use of word of mouth was a central component of all Red Bull’ s marketing activities during the early stages of entering the market that proved a very successful strategy. Developing Red Bull mystique from its inception, it was a source of intrigue for customers. The functional category was new for Austrians hence curious and adventurous customers purchased the brand and spread the word.
Placing empty cans at various places created an illusion of popularity. Word of mouth also spread awareness of the brand to other countries even before its introduction to the markets. This was a considerably successful marketing program. Market entry strategy – the company strove to build buzz about the brand through its seeding program where it micro-targeted in shops, clubs, and stores hence enabling the cultural elite to access it first before spreading the word to other customers and influencing them (Rustenburg, 2008).
Premarketing activities such as sponsoring sporting events served to establish awareness in markets where the brand had not yet reached. Hence, through the premarketing program, the brand established itself as the pre-eminent brand.