RED BULL – BUILDING

BRAND EQUITY IN NON-

TRADITIONAL WAYS
 THE RED BULL CASE
• The Red bull Case is unique because it deals
with a single product that found new ways to
build a brand in a very competitive category.
• Red Bull’s founder, Dietrich Mateschitz, was an
experiences marketing professional and
approached the creation of Red Bull from a
branding perspective.
• Red Bull essentially invented a new category-
energy drinks- in Western Markets, and
marketed its product without much above- the-
line advertising.
 THE RED BULL CASE
• The product was the primary marketing tool, and
as a private company Red bull exercised control
over the distribution of its product.
• The Company expanded very selectively into
new markets, yet still achieved exponential
growth.
• Red Bull became one of the major success
stories in the highly competitive beverage
market in the 1990’s.
 In the Case
• Red Bull built awareness and image using
non- traditional marketing methods
• Red Bull’s channel and distribution
strategy
• Its Global marketing programs
• Its dealing with competition
 Red Bull is essentially
• Good with selection of brand elements
• Building and implementing a marketing
program
• Building a brand using non- traditional
marketing
• Good strategy for outlasting competition.
 Highlights of Red Bull
• Flavor
– Medicinal taste reinforces efficacy
– Carbonation gives refreshment, energy, and
mixer associations
• Packaging
– New size & unusual shape creates interest
– Single-serve cans, no multi-can packs,
reinforced premium positioning
– Visually appealing silver-and-blue
 Highlights of Red Bull
• Ingredients
– Caffeine, taurine, other energy ingredients allow Red
Bull to make claims about health benefits
– Sugar for flavor
• Positioning
– “Revitalizes body and mind”
– Broad positioning, drink suitable for any occasion
when consumer needs a lift
– Early adopters: athletes, clubbers, hipsters, give drink
cachet/exclusivity
• Price
– At least 10 percent greater than nearest
competitor
– Stakes out premium price point
– High price makes health claims plausible in
minds of consumers
 The Red Bull Brand
• Red Bull was created from a strong strategic
branding foundation
• Red Bull’s ability to support health benefit claims
with product efficacy helped to create a
successful marketing program
• By targeting specific consumer segments and
employing clever push strategies, Red Bull built
awareness and image with little initial marketing
expenditures.
• Integrated marketing communications- and
much “buzz” marketing – helped to maximize the
benefits of Red Bull’s marketing campaigns.
 Sources of Equity
• Product efficacy
• Hip Image
• Limited availability
• Association with athletes/sports
• Multiple consumption occasions
• Sleek packaging
 Changes depending on market or
country
• Red Bull employs the same marketing
strategy in every new market, so many
sources of equity remain consistent across
markets
• Major consumption occasions may vary by
market
• Importance of sports association varies by
market.
 Red Bull’s marketing program
• Highly integrated, all marketing efforts
consistent with fundamental promise of
efficacy
• Limited availability at time of launch builds
buzz awareness, also highly targeted in
terms of user imagery
• Advertising mainly awareness, but some
image component in terms of conveying
consumption occasion and humor.
 Red Bull’s marketing program
• Sports marketing primarily image
• Point-of-purchase/on – premise mostly
awareness, also image in terms of
placement
• Sampling programs builds awareness,
products dispensed when consumers most
likely to appreciate its affects.