Red Bull has built brand equity through non-traditional marketing strategies like sponsoring extreme sports events. It targets niche groups like nightclub attendees and athletes. Red Bull communicates its message of providing energy simply through its slogan "Red Bull gives you wings". The company leverages event sponsorships and athlete endorsements to supplement word-of-mouth marketing. Red Bull's unique blue-silver cans are also easily recognizable. However, its association with late-night alcohol consumption could undermine its message as a stimulant for any time of day. To maintain momentum, Red Bull needs to continue targeting youth and investing in event sponsorships tied to physical endurance.

1. EMBA 5202 Brand Management Home Work V
Tuna Taş Executive MBA Student No: 1168106
RED BULL:BUILDING BRAND EQUITY IN NON-TRADITIONAL WAYS

2. Introduction
(*) http://www.redbull.com/cs/Satellite/en_INT/Company-figures/001242939605518?pcs_c=PCS_Article&pcs_cid=1242937556133
(**) http://en.wikipedia.org/wiki/Red_Bull
World’s biggest energy drink company, employeeing around 8300 people
in more than 160 countries with over 4.6 billion cans in sales(*)
Thai businessman Chaleo Yoovidhya invented the energy drink
“Krating Daeng” (means Red Water Buffalo in Thai)
Founded in 1987,in Austria by Dietrich Mateschitz, in partnership with
Chaleo Yoovidhya with only one SKU(**)
10 years after launch it became a global brand with its existence in more than
25 markets
Also well known with its slogan “Red Bull gives you wings/ Red Bull kanatlandırır”

3. Brand Salience
ImageryPerformance
FeelingsJudgements
Resonance
1st in mind
An OTC(*) drug/drink
Energy benefits
High loyalty
Awareness
Red Bulls’ Brand Equity Model
High Quality Energy Drink
High breadth,high depth
Full of energy
More than a refreshment
Best of class
Innovative
Mysterious
Physical endurance
Mental alertness
Concentration
Revitalizes body and mind
Stronger than traditional soft drinks
(*) Over the Counter

4. Red Bull’s sources of brand equity and their dependence to market
Pricing strategy provides a “Best of class” positioning (at least %10 greater than the
Most-expensive competitive product) A premium drink, not a simple drink
Succesfull at communicating product value to customers, slogan is simple, easy and effective
(Red Bull gives you Wings, when you are tired think of Red Bull)
Supplemented its word-of-mouth strategy with event sponsorships, athleteendorsers, sampling
programs, point-of-purchase marketing, and select electronicmedia buys
Branded refrigerators sales units (Point of Purchase Marketing) are supporting brand awareness
Also associates itself with numerous sports events which need a high energy level (Red Bull X-
Fighters, Red Bull Air Race etc.) and targets sports men.
Has got its own, unique package (can) whih can be easily differentiated from other drinks
Very powerfull logo (logo has two bulls colliding with one another with a sun in the middle. The bulls
are supposed to represent strength and energy coming together)
Red Bull follows the same principle in every new market they penetrate. (One exception in U.K. And
there they failed because
1) Marketed Red Bull as a sports drink, not a stimulation drink
2) Did not pursue a word-of-mouth strategy, choosing instead to sell via the largest beverage channels
3) Created new advertising and focused on billboards rather than electronic media
But consumption occasions and event marketing types may vary by market

5. Images from Red Bull Event Marketing

6. Images from Red Bull Mobil Marketing

7. Red Bull’s marketing program in terms of its contribution to the brand’s
equity and its strengths and weaknesses.
When we look at the market share and global sales of Red Bull, we can easily say that Red Bull’s
marketing strategies have been succesfull
Targeting a niche segment in the beginning (focussing on dancers, clubbers, athletes) and then
growing to all market (drivers, students) makes sense. “Revitalizes body and mind “ was set in
people’s mind.
The events which are based on high physical indurance were chosen especially for marketing which
are totally aligned with the brand image and properties.
Because the first target group was night walkers like clubbers,dancers etc who consume alcohol
heavily and they combine Red Bull with alcohol for a better taste (Red Bull+Vodka), it may be
perceived Red Bull as a alcohol complementary product which is against Red Bulls no occasion
limitation because Red Bull says that you can drink it anytime of the day, anywhere you want.
Since it is not a simple soft drink (it is also a nutritious drink), it is in the scope of serious public
health regulations. (It was once banned in French amd Canada Market)
Even today you may hear in the news about young people who dies because of mixture of Red Bull
and alcohol.

8. Red Bull to maintain its marketing momentum
Maintain the leading position in existing countries
Continue expanding its business in other countries to new markets
Continue targeting to young generation (students, clubbers)
Continue spending on event marketing since they are relayed to strength
Stylish packaging should continue if they do not go to brand extensions (Brand
extension can be another option, a lower priced one, has to be supported
with market research results)
A new place like “Irish Bar” where all kind of sports are watched .

9. Red Bull’s move into herbal teas, fast-food chains, and magazines/Sense for the
company to expand into these areas/Potential benefits and dangers?
Herbal Tea
Association with Carpe Diem
Not directly related or supporting the main product
Not a success
Fast-Food Chain
Carpe Diem fast-food chain in Austria and Switzerland
Big players are already in the market (McDonalds, Burger King)
Not a healthy image
Magazines
Red-Bulletin
Devotedto the Red Bull lifestyle of music, extreme sports, night life, and social
trends

10. Red Bull’s move into herbal teas, fast-food chains, and magazines/Sense for the
company to expand into these areas/Potential benefits and dangers?
Benefits
Diversify and grow the business
Leverages brand equity
Herbal tea would be consistent with the healthy image
A magazine could be another good way to market the brand
Dangers
Less focus to its flagship product
Fast-food chains are not healthy (not good for brand image)

11. Effectivenes of Red Bull at advertising to the mentioned various groups?
Successful among several age ranges (exhibit 2)
Students are encouraged to evaluate some examples and advertisements, and
compare the effectiveness of this strategy to the performance of the brand in
the market.
All aged amateur/professional people are encouraged to take place in actions,
sports like
-Red Bull Flu Tag” where they design and build up their own flying objects .
-Red Bull Cliff diving, Red Bull Extreme Sailing etc.
"People who attend one of our events have the indelible awareness that it
was sponsored by Red Bull because of the unusual amount of control we can
exert over our own events,“ Emmy Cortes-Red Bull Communications Director

12. Red Bull Flug Tag

13. Red Bull Cliff Diving

14. Red Bull gives you wiings