BUILDING BRAND EQUITY
P07. Ashish Mathew Areekattel
Dr. V. N. BRIMS
“We do not market the
product to the
consumer, we let the
consumer discover the
product first and then
the brand with all its
Red Bull engaged in
• Print & radio advertising
• Event marketing in
• Point of purchase
• Dietrich Mateschitz created Red Bull “Adult
cartoon” Advertising with an Intelligent
dialogue about product benefits.
• Animated ad examples: Dracula, Adam &
Eve, Frankenstein, Devil, etc.
• It targeted anyone with a sense of humour to
establish a wide consumer base.
• The sampling Campaigns were conducted at places like
– Sporting events
– Highway rest places
– Campus libraries.
• Red Bull student Brand managers
– Research on drinking trends
– Designed marketing initiatives
– Wrote stories for student newspapers
• Red bull controlled all aspects including name, logo, promotion and
• Classic Events:
– ‘Red Bull Soapbox Race’
– ‘Red Bull Flugtag’ which was a comical event in which
participants constructed a flying object and attempted to launch
it off. The winner of the event received free lessons for a pilot’s
• Sporting Events:
– Red Bull Snow thrill extreme skiing competitions in France &
– Red Bull Cliff Diving world tour event in Hawaii.
• It reinforced the brands positioning as an independent, stimulating
• It also sponsored Action sports such surfing, snowboarding,
skydiving, skateboarding, rock climbing, mountain biking, etc.
• Red Bull wanted to project in its brand personality: innovative,
individual, non-conformist, unpredictable and humorous.
• In Nov 2004, it acquired its own Formula 1 creating Red Bull
Racing. It expanded its racing participation by sponsoring the
“Red Bull junior Team” and the “Red Bull Driver search.”
• In 2006, Red Bull started a two car NASCAR Team in which one
of the cars would bear the number 83 representing the 8.3
ounces in each can of Red Bull.
• Its primary tool was the branded refrigerated sales units. It
placed miniature glass refrigerators which displayed the Red
Bull logo, in convenience stores, bars, clubs, sports shops,
office buildings, cafeterias and commissaries.
• It also used highly visible aluminium window sticker to
indicate availability, believing the can itself to be the best
• The European Union’s (EU) policy for approved food
products dictated that if a food was approved in one
EU country, it could be sold in all EU countries.
• Most countries had a list of allowable food ingredients
and taurine was not on any of the lists.
• Fortunately Scotland had a negative list and Red Bull
ingredients were not on the list which gave an entry
• First EU test market was setup in UK and rapidly
entered all the rest of EU market, however French
market banned the product which is not proven 100%
MARKETING STEPS in UK
• Red Bull entered in 1995 and
altered the marketing formula
in 3 significant ways:
– The company marketed Red
Bull as a sports drink, not a
– It did not pursue a word of
mouth strategy, choosing
instead to sell via the largest
– It created new advertising and
focussed on billboards rather
than electronic media.
• They used the slogan "Never
underestimate what Red Bull
can do for you” which did not
clarify Red Bull’s positioning.
• Between 1997 and 2001, share
of sports and energy drink
market rose from under 2% -
• Red Bull went from selling 3.2
million cans per year in 1995
to more than 290 million in
2000 and claimed 86% share
of functional energy drink
market in 2001.
• Red Bull was 3rd biggest
product by value in the soft
drinks market, behind Coca-
Cola and Pepsi.
• Red Bull began exponential sales
growth internationally and faced a lot
– Virgin: Virgin dt
– Anheusher-Busch: 180
– Coca-Cola: Burn
– Pepsi-Cola: SoBe Adrenaline Rush and
Mountain Dew Amp
– Other Brands: Indigo, Hype, Bawla, XTC
• Between 1995 and 2000 in UK, the
beverage consultancy Zenith
International Reported more than 40
product launched in functional
energy category that resembled Red
Bull: small, thin metal cans, metallic
hues and animal imagery.
• But Red Bull dominated the
functional energy drinks market with
72 % share in 1999.
• Competitors used similar marketing
tactics to Red Bull’s
– Coca-Cola used word-of-mouth strategy
– PepsiCo’s Mountain Dew Amp used
Sponsorship and Sampling strategy
– PepsiCo’s SoBe Adrenaline Rush
pursued grass-roots strategy
• Sampling teams
• Point-of-purchase materials
• Sponsored SoBe Team Lizard athletes
• Distribution concentrated on
Bars, Convenience stores & restaurants
– Red Devil Sponsored Asprilla motorbike
– Virgin dt sponsored Radio One Love
Parade dance festival
• Other brands used SEX appeal
– Red devil brand claimed its product
would “make you horny”
– Go-Go Passion Brand marketed itself as
”Viagra for Girls”
– SoBe Adrenaline Rush used tagline”Get
it up. Keep it up. Any Questions?”
RED BULL IN US
• In 1997 Red Bull entered US; the company used “Cell approach”
and divided the country into targeted geographic segments rather
than nationwide launch.
• The brand’s first test market was Santa Cruz, California, beachside
town known for its active lifestyle built around surfing and
skateboarding. Then it moved to San Francisco, then to Venice
beach near Los Angeles and then Hollywood.
• It initially targeted high-end nightclubs, bars, exclusive health clubs
• It gradually increased distribution and recruited student brand
managers to organise on-campus promotions
– Renting out study rooms during finals week
– Stocking with free cans of Red Bull and school supplies
EFFECTIVE USE OF MEDIA
• Red Bull spent less than $20 million on media,
developing two animated cartoons each year.
• In addition to the sporting events, Red Bull
introduced "Red Bull Rock ‘n‘ Air festival” and
“Red Bull Music Academy” brought together two
weeks of collaboration, learning and performance
• In 2001, Red bull was the number one seller in
Store24 convenience stores, bigger than any
single beer, milk, water or soda brand and had a
market share of 70 %.
MY PRESENCE IN SOCIAL NETWORKS