Describe Red Bull’s sources of brand equity. Do these sources change depending on the market or country.
BRAND EQUITYBrand equity is a set of characteristicsthat are unique to a brand. In essence, brand equity is the perception that a good or service with a given brand name is different and better. (Clow & Baack, 2012 ) Brand equity is the added value endowed to products and services. ( Kotler & Keller, 2012 )
“ sampling [is a] key element of Red Bull’s marketing strategy. The customer feedbackthat they get in invaluable and the conversion rates are huge. “ - Henry Drnec, Red Bull Managing Director United Kingdom
RED BULL STRATOS 2012 JUMP Felix Baumgartners epic jump from the edge of space was successful. Supported by a team of experts, Felix ascended in a helium balloon to an altitude of 120,000 ft / 36,576 m where he took a leap of faith into the unknown in an attempt to become the first person to break the speed of sound during freefall.
Source: http://www.youtube.com/user/redbull/featured, as on 18 Oct 2012
Brand Extensions Brand extensions could beconsidered, but marketing researchneeds to be conducted to assess the effect of such extensions on the image of the brand.
Before doing brand extension , refer customer Brand equity pyramid at performance dimension. Red Bull need to cope up:Primary ingredients and supplementary featuresProduct reliability (consistency of performance),durability (life-span), and serviceability (after sales)Service effectiveness (speed), efficiency(responsiveness), and empathy (caring, trusting)Style and designPrice
Currently there are onlyfour product made: RedBull Energy Drink, RedBull Sugar Free, RedBull Energy Shots, andRed Bull Cola. Eachproduct is in line with theoriginal tagline thatmakes Red Bull sosuccessful- “Red BullGives You Wiings”. In2005- Thailand launchRed Bull ice coffee.
Lower-priced extensions as well as extensions to new productcategories are possible options. One of the pulling buying powers for Red Bull is lower price whichoffer by Red Bull compare to other company is same category.
“a Red Bull consumer first attracted tothe product as a nightlife enhancer in his or her early twenties might later use the drink as a morning pick-me up or a revitalizer during a long day meetings.”How effective is Red Bull at a advertising to these varied groups ?