The company positioned the energy drink as one that rejuvenates the body and mind which was well understood by consumers across all the segments. Red Bull used this strategy and provided samples only in the ideal usage occasions, which was when the consumer needed or wanted a boost in energy levels.
Therefore, it would be a great and Red bull building brand equity in move to use the brand benefit acquired by the energy drink to introduce new products into the market Temporal, It works extremely well for good quality products as it gives the consumer an opportunity to try out the product before purchasing it and therefore they do not have to spend their money on it until they figure out whether they want the product A.
European Journal of Marketing An investigation into the causes of effectiveness. This can be viewed as a step in the right direction in terms of achieving consumer based brand equity. This marketing strategy involves giving free samples of the product to the consumers Greenley, Before you go, you are invited to support a noble cause on IndieGoGo: In building the brand, the Red Bull team was careful to price the energy drink well above the going rate for normal soft drinks.
Readings in Modern Marketing. These challenges include; the new products performing well below the expected performance, probably because consumers prefer their already existing product, the energy drink, and did not respond as expected to the introduction of the new product; the brand Red Bull could be dampened by negative reception of the new products which would in turn affect the energy drink product negatively Keller, Therefore they issued their free samples at concerts and sporting events just to mention a few.
This ensured the consumers experienced the anticipated effect of drink first hand. Sponsorship is also a marketing strategy that is gaining popularity fast.
Developing Winning Brand Strategies. After the energy drink was introduced, Red Bull would place empty cans of the drink in night clubs to provide the illusion of the popularity which advanced its popularity. Red Bull in Herbal Teas, Fast-food and Magazines Red Bull diversification into the herbal tea, fast-food and magazine sector can be viewed as a bold move by the company.
They also sponsored sporting events and concerts in areas that the energy drink had not yet penetrated and this helped create awareness of the product in this areas.
Journal of Strategic Marketing Instead, the company could use that advertising strategy to introduce its new products, i. Red Bull was able to exploit marketing strategies for its own benefit as shown by the continuous increase of their market share even when they ventured into new and foreign markets.
The power associated with the brand translates into higher sales volume and higher profit margins against competing brands.
Recommendations Having examined Red Bull the brand and how it has evolved over the years, it is safe to conclude that the marketing strategies that the company has been using to create a unique and consumer friendly brand have been working effectively.
Adverting was one of the promotion strategy used, where by a company aims at increasing consumption of the product through creating an image with certain desirable qualities of the product in the mind of the consumer Rogers, Building, Measuring and Managing Brand Equity. Marketing Strategies, Tactics, and Techniques: This communicated the energy-enhancing property of the drink to its consumers and hence rendered them knowledgeable.
An Understanding of Marketing Strategy. A Handbook for Practitioners. If the company rides on these benefits, they will have a fighting chance in the new sector they intend to venture into. The energy drink also had charisma which positively promoted the product.
Some of the benefits that the company will enjoy are; existence of a properly established brand that is well known across all the markets; a large market share resulting from the popularity of the already existing energy drink; consumer confidence in the new product due to their ability to deliver and meet expectations of the already existing product the Red Bull energy drink.
The same strategies should be adapted to boost the new products the company plans on introducing and we can almost be certain that the products will be a success. The main recommendation would be to avoid marketing strategies like advertising using billboards since they did work for the energy drink product.• Red Bull has also ventured into sponsoring athletes to build brand equity.
This is an especially powerful tactic as many athletes are perceived as successful and powerful. • Creating and continue sponsoring sports events such as ‘Red Bull Signature Series’.
By identifying with a particular market segment i.e. generation Y, they can build a community around youth culture and capitalise on younger consumers who feel a strong sense of expressing their unique personality by embracing the Red Bull brand.
Red Bull building brand equity in new ways - Download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online. Red Bull building brand equity in new ways. Another source of brand equity for Red Bull was the image it represented.
In building the brand, the Red Bull team was careful to price the energy drink well above the going rate for normal soft drinks. Red Bull Brand Equity According to Keller (, p 53), brand equity is the strong, favorable and unique brand associations in the memory of customers.
He goes on to identify (p 54) two sources of brand equity: 1.). Brand Management Case No. 2 RED BULL: BUILDING BRAND EQUITY IN NON-TRADITIONAL WAYS 1. Describe Red Bull’s sources of brand equity. Do these sources change depending on the market or country? Red Bull has been using modern ways to capture its target market and create unique approaches to further expand its brand 80%(10).Download