Red Bull Case study solution

Red Bull Case Study, Brand Management Q1: What is the essence of the red bull brand, how was it created? What are its success factors? The essence of the Red Bull brand is, Its introduction of a new category in the market of energy drink, its brand identity by its logo as an epitome of kinetic virility and pugnacity, and off course its claimed benefits (to increase physical endurance, improve concentration and reaction speed, improve vigilance and stimulate the metabolism). In 1982 an Austrian businessman Dietrich Mateschitz came across Krating Daeng (cheep tonic sold in brown bottles by TC Pharmaceutical) which means Red bull in Thai while traveling in Asia for Blander Toothpaste. Mateschitz approached the owner Chaleo yoodhya and his son Chalerm of TC Pharmaceutical to set up a new company. In 1984 Red Bull Gmbh was founded in Austria, initiating to introduce a new category in market. The taste and feel of energy drink was adopted from the same Thai formula bottled into silver and blue cans of 250 milliliters (8.3oz). The success factors of Red Bull discussed in the case are mentioned below, • Its attention, controversy, and discussion which have kept the product alive. • Its sales and distribution Tactics. Several distribution and sales tactics they have used until now. Initially decentralized sales units were responsible for their regional areas then they set up their own warehouse for Red Bull, bought vans, painted them with the Red Bull’s logo and hired their own deliverymen for distribution of cans. They had a selective sales strategy by identifying five key accounts in their area (hot spots, clubs and bars) with the “in crowed”. They also deal with individual accounts by targeting shops near universities and gyms for the sake to take advantage to be fast. They have experiment the distribution mix too by having a distribution alliance with Cadbury schwepees. • Buzz Marketing, through various marketing techniques Red bull has created a heavy positive word of mouth by playing on associations with energy, danger and youth culture, carefully cultivating its mystique. Through sampling and its sponsorship of youth culture and extreme sports events such as F1(motorcycle racing), BMX (biking, kite-boarding, extreme snowboarding, free skiing, paragliding, and sky diving), RBMA (Red Bull Music Academy), Red Bull BC (Breaking dance competitions), and Red Bull CC (creative Contest). • Hitting the street, they hired a consumer education teams driving cars that were painted blue and silver with Red Bull logo on sides and Red Bull` s can mounted on back. They were distributing Red Bull cans for free to their target market (office buildings, gyms, construction sites, truck and petrol stations, clubs etc). • Student Brand Managers were hired to promote product on campuses by providing them free cases of Red Bull and encouraging them to throw parties, in result they were supplying them the market research. • A Huge Glass hanger at Salzburg airport, where it housed various exhibits, air shows, and a collection ancient aircraft, including a DC-6 that once belonged to Marshal Tito. The hangar also contained an upscale restaurant, Ikarus that featured star chefs, as well as the MayDay bar.

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Red Bull Case Study, Brand Management Lets see the Red Bull` s performance on Brand Building Blocks,

Resonan ce Loyalty

Judgments Feelings One of the top Brands, Unique taste

Energetic Exciting style statement, trend setting

Performance

Imagery

Energy boost Flavor Style statement Smart appearance

PowerAde Energetic Aggressive Sports Work

Salience Energy Drink Category, Energy, boost, power and concentration

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Red Bull Case Study, Brand Management Q2 What should Red Bull do now, given the challenges of a maturing category? After reading the case I have come to know that Red Bull has tried a lot to keep the category alive. Keeping in account the case, it has stressed on the marketing strategies of Red Bull in detail which stimulates that they are trying their best to keep the category alive as they have tried different distribution, marketing, and sales promotional strategies. At this state of category` s maturity the possible options that Red Bull can adopt are defined below, • It can go for modification and diversification of product. • Built more intensive distribution. • Stress brand difference and benefits through advertisement. • They can do for market development. By keeping under consideration the most popular market expansion grid, the basic four strategies are 1. Market Penetration. 2. Product development. 3. Market development. 4. Diversification.

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Red Bull Case Study, Brand Management Q3 what has happened to Red Bull since the case? How do you think the brand is perceived now? This case states the whole story of a product Red Bull an energy drink, from its formulation till until now. Basically it is showing the life line of a category from its introduction up till its maturity stage. The different strategies used by Red bull are mentioned in case related to there distribution, sales, and marketing strategies. In this case various issues faced by Red Bull are discussed in detail the most prominent challenges those red Bull was facing were the rapidly increasing number of competitors, different rumors thrown in market for Red Bull, increasing health awareness among society, and some legislative issues to because of the rumors that the death of three persons due to the intake of Red Bull. All above mentioned challenges were faced by Red Bull and were tackled in a very nice manner but the issue of the maturity of category is now a big giant issue for Red Bull. The most commonly used life cycle graph of a product will help to elaborate it more finely is drawn under,

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