11-15-2011-red bull case

8/3/2019 11-15-2011-Red Bull Case

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Case Analysis

8/3/2019 11-15-2011-Red Bull Case


Termed as pioneer in energy drink

Came to existence in 1985

Derived from Thai Enegy drink Krafting Daeng

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Available exclusively in Austria for 5 years

Entered the foreign market in 1992 from Hungary

Entered American market via California in 1997

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Red Bull is an energy drink that really works

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Improves physical endurance

Stimulates metabolism and eliminates waste substances

Improves overall feeling of well-being

Improves reaction speed and concentration Improves mental alertness

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Caffeine

Taurine

Glucoronolactone

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Success lead to competitors producing similar drinks in

2000

Coca-Cola

Anheuser-Busch Pepsi-Co

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Strengths

Market Leader

Slow penetration to new market segments

Fresh and strong brand identity using ads. Position itself as energy drink rather to soft drinks.

Various consumption occasions

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Weakness

Priced at Premium over the other soft drinks

No discounts on purchase.

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Opportunity

Untapped market exist for Red Bull

Expansion of the brand with new products

Sponsoring of events and athletes can enhance thebrand visibility

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Threats

Caffeine in Red Bull

Bad publicity

Entry of new competitors Organic drinks.

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Product:

◦ A sweet, caffeinated drink aimed to give consumers

the high energy kick.

◦

Contains caffeine, taurine, glucuronolactone andvitamins.

◦ Available only in rather expensive 250 ml cans, 350

ml bottles with 4 packs and only two flavors (original

and sugar-free).

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Price:

◦ Red Bull has always pursued a premium pricing

strategy.

◦

Red Bull would always set a price which was 10percent greater than the most expensive competitor in

order to maintain a best of class positioning and also

stake out a unique territory in the beverage market.

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Promotion:

◦ Advertising:

Red Bull used all the available media channels, that

is, television, print and radio for its advertisement. They used an animated advertisement which clearly

communicated the product benefits and was the

main reason for its success.

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Event Marketing:

◦ Red Bull either invented the event from ground up or

brought the product to an existing event.

◦

Was also associated with many sporting events.◦ These events increased Red Bull’s visibility and also

reinforced the brand’s positioning as an independent,

stimulating beverage.

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Sampling:

◦ Red Bull sought to reach the consumers at the right

place at the right time, mainly when consumers

needed or wanted a boost.

◦ Red Bull sampling campaigns took place at concerts,

parties, festivals, sporting events, at the beach and at

campus libraries.

◦

Reached the consumers at ideal places and explainedto them product benefits and encouraged them to

drink a full can for maximum benefit.

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Point-of-Purchase Marketing:

◦ Red Bull’s primary point-of-purchase tool was the

branded refrigerated sales units.

◦

Prominently displaced the Red Bull Logo inconvenience stores, bars, clubs, sport shops,

cafeterias.

◦ Red Bull hired a team of delivery van drivers whose

sole responsibility was to stock Red Bull, so as toensure quality and consistency.

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Targeting a niche segment in the beginning and then

spreading out to the whole target makes a lot of sense.

Because the marketing program was really focused at

first as a segment of people it creates the concentration

and brings up the success.

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The product’s understanding for middle and upper agedpeople is quite different.

These segment of people tend to stay away from the

drink because of having wrong perception of the brand.

Sometimes the product is understood as a mixed for the

alcoholic drinks and breaking that perception is

necessary.

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Event Marketing Innovation

◦ Supported a local flying club in Innsburg, Austria

◦ Creation of “The Flying Bulls”

◦

Expansion of the same idea and created the “FlyingBulls Aerobatics Team”

◦ Red Bull Big Wave Africa competition

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Product Innovation

◦ Added a new product, “Red Bull Sugar Free”

◦ Was sold in a readily identifiable Red Bull Can with

two differences

Dark Blue Can was replaced with Lighter blue

The word “Sugarfree” replaced “Energy Drink”

Product was highly successful

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Line Extension

◦ They launched Redbull Sugar Free which was highly

successful

Brand Extension◦ Launched Herbal Tea in Europe and Los Angeles

◦ Planned to open a fast food chain and quarterly

magazine

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Launch of Red Bull Sugar Free was successful

Launch of herbal tea in Europe was not as successful as

Red Bull

The same product was tested in Los Angeles but didn’tseem to have a success of Red Bull

Although the brand extension was not as successful as

line extension, but it didn’t hamper the brand image of

Redbull Focus on line extension

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Red Bull’s Sources of Brand Equity ◦ Uses non-traditional ways to achieve its target and

unique approach to create brand Equity .

◦ Right from the beginning the company makes it very

clear to it all its existing and potential customers the

message of its product functionality in a clearway.

Eg: pricing 10% of upper segment of competition to

create mindset of Premium brand.

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It uses word of mouth marketing to create brand

awareness.

Once brand awareness is created it restores to

TV ads and other communication media. The company tries to create mystique by participating

into events and sponshorship.

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The company plays the market entrancerelatively strategically …It targets a nicheaudience and influences them first ratherthan spreading out to the whole target group.

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“Thus, the overall whole brand equitymanagement is successful in case of Red Bull”

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11-15-2011-red bull case

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