Redbull Marketing strategy
Download as PPT, PDF46 likes394,740 views
Red Bull has built brand equity through memorable advertising, unique events, and word-of-mouth marketing. It samples products widely to generate buzz. While brand extensions could diversify revenue, Red Bull risks diluting its brand if extensions do not align well with customer perceptions. Red Bull should carefully research how extensions might impact brand image before pursuing new product categories or services.
![“ sampling [is a] key element of Red Bull’s
marketing strategy. The customer feedback
that they get in invaluable and the conversion
rates are huge. “
- Henry Drnec, Red Bull Managing Director United Kingdom](https://image.slidesharecdn.com/redbullfinal-121022135724-phpapp01-140417060009-phpapp01/85/Redbull-Marketing-strategy-37-320.jpg)
Redbull Marketing strategy
- 1. INTRODUCTION
- 2. 1985
- 5. Improves physical endurance Improves overall feeling of well- being Increase mental alertness Improves reaction speed and concentration Stimulates metabolism and helps eliminates waste substances
- 10. Word-Of- Mouth Sampling Program Point-Of- Purchase Event Sponsorship Athlete Endorser Advertisement
- 15. Controlled All Aspects Of The Event Reinforced The Brand Positioning As An Independent Stimulating Beverage Events Enhanced Red Bull Visibility Unique Events Attracts Media Coverage
- 22. QUESTION 1
- 23. Describe Red Bull’s sources of brand equity. Do these sources change depending on the market or country.
- 24. Brand equity is a set of characteristics that 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 ) BRAND EQUITY
- 28. 1995 • Sport drink • Large channel • Billboards 1996 • Stimulating drink • WOM • Electronic Media “never under estimate what Red Bull can do for you” “gives you wiiings” UNITED KINGDOM
- 29. • West Coast • East Coast CELL MARKETING • Rentals equipped with Red Bull. RED BULL STUDENT MANAGER PROGRAM 65% Market Share UNITED STATES
- 30. QUESTION 2
- 31. Analyze Red Bull’s marketing program in terms of HOW it contributes to the brand’s equity. Discuss its strengths and weaknesses.
- 32. BUILDING BRAND EQUITY RED BULL Memorable Meaningful Likable Transferable Adaptability Protectable RECOGNIZED PERSUASIVE FUN LESS SUGAR REGISTERED LINGUISTIC COMPETITION
- 33. RED BULL Logo & Symbol Characters Slogans Packaging BRAND EQUITY TWO BULLS COLLIDE ENERGY FUNCTIONAL “GIVES YOU WIINGS” SHAPE GRAPHIC
- 34. ADVERTISING STRENGTHS • Catchy phrase • Memorable. • Wide audience HOW • “gives you wiings” • Adult cartoons WEAKNESSES • Controversial.
- 35. RED BULL TV AD, SUPERHERO
- 36. SAMPLING STRENGTHS • Creates significant buzz. • Brand associates. • Direct response from the crowd. HOW • RED BULL STUDENT BRAND MANAGER PROGRAM • Placement Sampling WEAKNESSES • Negative WOM. • Negative perceptions.
- 37. “ sampling [is a] key element of Red Bull’s marketing strategy. The customer feedback that they get in invaluable and the conversion rates are huge. “ - Henry Drnec, Red Bull Managing Director United Kingdom
- 38. EVENT MARKETING STRENGTHS • Attractiveness to audiences and media. • Creativity, Uniq ueness. HOW • RED BULL extreme sports • Red Bull “Flying Day” • Red Bull Music Academy WEAKNESSES • Costing. • Selected reach of audiences.
- 39. RED BULL FLUGTAG DAY 2012
- 40. SPORTS MARKETING STRENGTHS • Attractiveness to audiences and media. • Creativity, Uniq ueness. HOW • RED BULL extreme sports • Red Bull Signature Series. • Red Bull Music Academy WEAKNESSES • Costing large amount of money. • Purchased Jaguar $100M/ year, generates profits only $70M/ year.
- 41. RED BULL SIGNATURE SERIES
- 42. POINTS-OF-PURCHASE STRENGTHS • Ensures quality and personalization • Prevent clutters of promotional tools. HOW • RED BULL refrigerator. • Visible aluminum window sticker to indicate availability. WEAKNESSES • Limited spaces in retail outlets.
- 43. QUESTION 3
- 44. How can Red Bull maintain its marketing momentum? Would you recommend that Red Bull develops any brand extensions? If so, what would they be? Would you use the same marketing strategy?
- 45. Red Bull maintain their marketing momentum thru their Marketing Program • The strategy involved “micro-targeting” hip and cool locations and hangouts and flooding them with opportunities for influencers to consume Red Bull. After consumption, these influencers would start the word of mouth’s campaign. Word of mouth (WOM)
- 46. • Red Bull employs sampling teams or Red Bull Student Brand Managers throughout the world that set up sampling programs in strategic locations. Include sporting events, concerts, or any place where people are tired. Sampling
- 47. • Red Bull has made an art of creating and sponsoring events, all of which are designed to enhance its brand image and build brand equity. Event marketing
- 48. • Red Bull has also ventured into sponsoring athletes to build brand equity. This is an especially powerful tactic as many athletes are perceived as successful and powerful. • Creating and continue sponsoring sports events such as ‘Red Bull Signature Series’. Sport Marketing
- 49. RED BULL STRATOS 2012 JUMP
- 50. RED BULL STRATOS 2012 JUMP Felix Baumgartner's 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.
- 51. • setting up Red Bull refrigerators and other signage in many nightclubs and bars. • team of dedicated Red Bull with vehicles covered with the Red Bull logo and servicing targeted locations to ensure they not lack of stock and make sure all necessary advertising is up. Point of purchase
- 53. • Through the social networking media, Red Bull keep updating their customer about their marketing activities, promotional and etc which related to customer. • Currently, 32, 555,502 (seen on 17 October 2012) likes in Facebook. • More than 400M viewers in youtube with nearly 790, 000 subscribers. Social media Network
- 54. Source: http://www.youtube.com/user/redbull/featured, as on 18 Oct 2012
- 55. Brand Extensions Brand extensions could be considered, but marketing research needs to be conducted to assess the effect of such extensions on the image of the brand.
- 56. Primary ingredients and supplementary features Product reliability (consistency of performance), durability (life-span), and serviceability (after sales) Service effectiveness (speed), efficiency (responsiveness), and empathy (caring, trusting) Style and design Price Before doing brand extension , refer customer Brand equity pyramid at performance dimension. Red Bull need to cope up:
- 57. Customer-Based Brand Equity Pyramid RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you and me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?
- 58. Currently there are only four product made: Red Bull Energy Drink, Red Bull Sugar Free, Red Bull Energy Shots, and Red Bull Cola. Each product is in line with the original tagline that makes Red Bull so successful- “Red Bull Gives You Wiings”. In 2005- Thailand launch Red Bull ice coffee.
- 59. Lower-priced extensions as well as extensions to new product categories are possible options. One of the pulling buying powers for Red Bull is lower price which offer by Red Bull compare to other company is same category.
- 60. QUESTION 4
- 61. Evaluate Red Bull’s move into herbal teas, fast-food chains, and magazines. Does it make sense for the company to expand into these areas? What are the potential benefits and dangers?
- 62. There is pro and contra to extend product development. What Red Bull need to do is to have proper research in extending product and associate it with other product or services.
- 63. Benefits Capitalize on the diverse target markets Diversify and grow the business Herbal tea would be consistent with the healthy image A magazine could generate good publicity to the brand
- 65. QUESTION 5
- 66. “a Red Bull consumer first attracted to the 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 ?
- 68. CONCLUSION
- 69. “ The reasons for consumptions change, but the basics are always there: the real benefit.” - Norbert Kraihamer, Red Bull’s Group Marketing and Sales Director