Description
This is a presentation about marketing program by redbull and it also highlights strengths and weeknesses of marketing program of red bull and also suggests how red bull can maintain its marketing momentum.
Group 10 - RED BULL
1 - Sources of Brand Equity
• Distinct can with eye catching logo • “energy drink”-functional drink- “neutraceutical”-nutritional drink with (caffeine, taurine, glucoronolactine) with unusual medicinal taste-. • Consumer of all ages • “Red Bull gives you wiiings” – Leads to brand recall • Premium pricing strategy- for “energy positioning”. • The brand equity sources changed with country and thus formed newly established market. Eg: in UK, changed its branding word from “energy” to “stimulation” thus establishing a new category. • Market- introduced “Red Bull sugarfree”-since 21% in UK and 30% in US were into sugar free variety with added “Nutra sweet”-first global energy drink to address growing consumer demand for diet beverages.
1 - Brand equity sources depend on country or market
Change in strategy based on geographical or cultural context is beneficial for Red Bull. Therefore the sources of brand equity are not geographically dependent.
Red Bull initially failed in England as an energy drink because it did not follow its successful integrated marketing communications formula. It changed its strategy because the belief was that England was a different market entirely. When Red Bull reentered the market with its proven approach it was successful. Culturally Red bull primarily targeted only a niche segment of the population ( 14-29) and it was expected that as these younger generation grow older, they would continue using the product. Also it was considered a mixed more often than desired. Red Bull also wants to be known as a nutritional product. Their advertising, while effective for building buzz, has not reached older agedemographics and does not show other usage of the drink.
2 - Red Bull’s Marketing Program and their contribution to brand equity
• • • • • • • Already successful name prominent and eye-catching logo of two red bulls in competition under a yellow sun Attractive slogan and distinctive packaging Leaving empty cans in a hot spot to create the appearance of wide-spread use target “opinion leaders” such as action sports stars, hip urbanites and celebrities. expands around the hot spots to less price sensitive geo-demographic segments. Finally, it reaches mass market at supermarkets. sponsors extreme sports and so again reinforce the brand elements with an exciting venue to showcase their brand. Red Bull sponsors new events as well as linking up with existing events Television advertising consists of a dialog about the energy value of the product between two cartoon characters. The ads target anyone with “a sense of humor.” They prove to be easily transplanted globally and not culturally restricted.
• •
2 - Marketing program of Red bull
Strengths
• By partnering with a pharmaceutical company, the brand gained credibility from the start. By pioneering a new food category, the brand gained prominence for itself in that new product category Marketing programs do not specify any consumption occasions and thus widen the positioning Easy adaptable advertising across the globe Product sampling approach is efficiently directed to situations of consumer need rather than the more traditional carpet-bombing with low response rates.
•
•
• •
2 - Marketing program of Red bull
Weaknesses
• Word of mouth almost backfired as people believed it was a liquor product and rumour started spreading that it caused overdoses and even death
More competition from new competitors like monster energy drink which has similar ingredients as Red bull but provides twice more for a similar price Competition from well established companies like coca cola and Pepsi Due to their marketing strategy it was hard to classify red bull into any specific category so some countries classified red bull as medicine and was therefore banned in retail outlets and also due to which it had to carry the warning sign
•
• •
3 - How can Red Bull Maintain its Marketing Momentum
• Shift in emphasis needs to occur in Red Bull marketing with an increased focus on category.
• Strengthening category links should not be difficult given its historic role in defining the function food category. This fact should be showcased • The company has been able to expand sales geographically up to now, but it will next need to expand demographically to maintain momentum. • The market effectively reached today by Red Bull is based around its energy boosting benefits, and this reaches a large market segment focused on clubbers, business and athletes. However, there is a large population they are not reaching as a nutritional product • Advertising would be the quickest method to introduce new usage patterns for Red Bull in the minds of consumers. • Along with advertizing, direct experience and word of mouth, brand elements, and publicity to reinforce the quick effects of advertising.
3 - Brand Extensions
Brand extension would lead to • Reduced risk • Decreased cost for gaining trial • Packaging and labeling efficiency • Increased effectiveness of promotional efforts. Recommendation for brand Extension : Natural Extension - electrolyte replacement drink Marketing strategy : Rather than sponsor extreme sports, it may be better to instead sponsor marathons, triathlons and other more traditional sporting activities such as football games. This change in tactics would introduce the extension product to the new category customers. The approach of establishing direct experience, cultivating word of mouth and then branching out is highly successful and appropriate for the extension.
4 - Product expansion - benefits and dangers
Benefits : • Capitalize on the brand name • Reduce the risk of failure given the already established awareness and trust • Create a positive synergistic effect with the efficiencies of umbrella branding and advertising • Reinforce the consumers’ perceptions of the parent brand name i.e. building additional brand stature • Bring news to existing brands when there is otherwise nothing new to say about them Dangers: • Failure in the new product/service or market category • Losing the tight focus of your existing brand • Damaging the perceptions of your existing brand
5 - Effectiveness of Red bull advertizing to various groups
• • • • Did not specify any consumption occasions Above-the-line marketing was minimal Word of mouth – The oldest and the best media Event sponsorship, athlete endorsers, sampling programs, point-of –purchase marketing and select electronic media buys. Empty red bull cans in the clubs and bars Buzz created due to mystification Availability at sports competitions, in limos before award shows and exclusive after parties High penetration in 14-19 age range and then 20-29 range Keeping the customer loyal through the years
• • • • •
Thank You
doc_816626427.pptx
This is a presentation about marketing program by redbull and it also highlights strengths and weeknesses of marketing program of red bull and also suggests how red bull can maintain its marketing momentum.
Group 10 - RED BULL
1 - Sources of Brand Equity
• Distinct can with eye catching logo • “energy drink”-functional drink- “neutraceutical”-nutritional drink with (caffeine, taurine, glucoronolactine) with unusual medicinal taste-. • Consumer of all ages • “Red Bull gives you wiiings” – Leads to brand recall • Premium pricing strategy- for “energy positioning”. • The brand equity sources changed with country and thus formed newly established market. Eg: in UK, changed its branding word from “energy” to “stimulation” thus establishing a new category. • Market- introduced “Red Bull sugarfree”-since 21% in UK and 30% in US were into sugar free variety with added “Nutra sweet”-first global energy drink to address growing consumer demand for diet beverages.
1 - Brand equity sources depend on country or market
Change in strategy based on geographical or cultural context is beneficial for Red Bull. Therefore the sources of brand equity are not geographically dependent.
Red Bull initially failed in England as an energy drink because it did not follow its successful integrated marketing communications formula. It changed its strategy because the belief was that England was a different market entirely. When Red Bull reentered the market with its proven approach it was successful. Culturally Red bull primarily targeted only a niche segment of the population ( 14-29) and it was expected that as these younger generation grow older, they would continue using the product. Also it was considered a mixed more often than desired. Red Bull also wants to be known as a nutritional product. Their advertising, while effective for building buzz, has not reached older agedemographics and does not show other usage of the drink.
2 - Red Bull’s Marketing Program and their contribution to brand equity
• • • • • • • Already successful name prominent and eye-catching logo of two red bulls in competition under a yellow sun Attractive slogan and distinctive packaging Leaving empty cans in a hot spot to create the appearance of wide-spread use target “opinion leaders” such as action sports stars, hip urbanites and celebrities. expands around the hot spots to less price sensitive geo-demographic segments. Finally, it reaches mass market at supermarkets. sponsors extreme sports and so again reinforce the brand elements with an exciting venue to showcase their brand. Red Bull sponsors new events as well as linking up with existing events Television advertising consists of a dialog about the energy value of the product between two cartoon characters. The ads target anyone with “a sense of humor.” They prove to be easily transplanted globally and not culturally restricted.
• •
2 - Marketing program of Red bull
Strengths
• By partnering with a pharmaceutical company, the brand gained credibility from the start. By pioneering a new food category, the brand gained prominence for itself in that new product category Marketing programs do not specify any consumption occasions and thus widen the positioning Easy adaptable advertising across the globe Product sampling approach is efficiently directed to situations of consumer need rather than the more traditional carpet-bombing with low response rates.
•
•
• •
2 - Marketing program of Red bull
Weaknesses
• Word of mouth almost backfired as people believed it was a liquor product and rumour started spreading that it caused overdoses and even death
More competition from new competitors like monster energy drink which has similar ingredients as Red bull but provides twice more for a similar price Competition from well established companies like coca cola and Pepsi Due to their marketing strategy it was hard to classify red bull into any specific category so some countries classified red bull as medicine and was therefore banned in retail outlets and also due to which it had to carry the warning sign
•
• •
3 - How can Red Bull Maintain its Marketing Momentum
• Shift in emphasis needs to occur in Red Bull marketing with an increased focus on category.
• Strengthening category links should not be difficult given its historic role in defining the function food category. This fact should be showcased • The company has been able to expand sales geographically up to now, but it will next need to expand demographically to maintain momentum. • The market effectively reached today by Red Bull is based around its energy boosting benefits, and this reaches a large market segment focused on clubbers, business and athletes. However, there is a large population they are not reaching as a nutritional product • Advertising would be the quickest method to introduce new usage patterns for Red Bull in the minds of consumers. • Along with advertizing, direct experience and word of mouth, brand elements, and publicity to reinforce the quick effects of advertising.
3 - Brand Extensions
Brand extension would lead to • Reduced risk • Decreased cost for gaining trial • Packaging and labeling efficiency • Increased effectiveness of promotional efforts. Recommendation for brand Extension : Natural Extension - electrolyte replacement drink Marketing strategy : Rather than sponsor extreme sports, it may be better to instead sponsor marathons, triathlons and other more traditional sporting activities such as football games. This change in tactics would introduce the extension product to the new category customers. The approach of establishing direct experience, cultivating word of mouth and then branching out is highly successful and appropriate for the extension.
4 - Product expansion - benefits and dangers
Benefits : • Capitalize on the brand name • Reduce the risk of failure given the already established awareness and trust • Create a positive synergistic effect with the efficiencies of umbrella branding and advertising • Reinforce the consumers’ perceptions of the parent brand name i.e. building additional brand stature • Bring news to existing brands when there is otherwise nothing new to say about them Dangers: • Failure in the new product/service or market category • Losing the tight focus of your existing brand • Damaging the perceptions of your existing brand
5 - Effectiveness of Red bull advertizing to various groups
• • • • Did not specify any consumption occasions Above-the-line marketing was minimal Word of mouth – The oldest and the best media Event sponsorship, athlete endorsers, sampling programs, point-of –purchase marketing and select electronic media buys. Empty red bull cans in the clubs and bars Buzz created due to mystification Availability at sports competitions, in limos before award shows and exclusive after parties High penetration in 14-19 age range and then 20-29 range Keeping the customer loyal through the years
• • • • •
Thank You
doc_816626427.pptx