Analytical Essay on Brand Management of Red Bull
- Topics: Red Bull
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- Pages: 8
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Red Bull is a premium brand of energy drinks with a niche market sector, however, it falls under beverages industry.It is an industry that consist of a wide range including packed water, milk, tea, coffee, soft drinks, alcoholic drinks etc. Red Bull comes under the umbrella of Non-alcoholic carbonated drinks.
The market of energy drink is very small in this industry need category it serves is SEC A and B+ but this is where the company sees a chance to grow and they have high potential for growth. Factually this is only 0.6% of the total industry but the brand is a premium brand and the market is niche.
When Dietrich Mateschitz was attempting to launch Red Bull, it was clear that this unique product would require unique packaging.
It was clear from the beginning that the two bulls fighting in front of the sun would be the logo. They represent power, vigor and energy. The red color also stands for energy, power, and passion.
The Red Bulls reflect the power and energy represented by the bulls and the sun, and to better position ourselves globally, we chose the English name “Red Bull”
The western world had never seen a product like ours! Hence, we were the very first to use the designation “energy drink”.
An entirely new product category was born
To reinforce the bold look, we avoided soft lines in the can’s design, opting instead for the edgy lines of blue. The blue shape itself also projects a dynamic look symbolizing speed and progression.
The can’s blue and silver color combination completed the masculine appeal.
Red Bull works! On the front of every can we clearly communicate this product promise.
Today, the Red Bull can is instantly recognized by consumers all over the world. Amazingly, it hasn’t changed from its original iconic design.
Dietrich Mateschitz establishes a company called Red Bull in Austria. The rest, as they say, is history. Working with his friend Johannes Kastner, Dietrich Mateschitz approves the official brand positioning of Red Bull: “Red Bull verleiht Flüüügel”—Red Bull Gives You Wings! The product was finally ready for market. In 1998 the Red Bull Music Academy starts in Berlin as the first real music initiative from Red Bull. The Academy is a world-travelling series of music workshops and festivals, a platform for those who make a difference in today’s music, by bringing together upcoming and aspiring artists with music icons and legends. In 2001, for the first time, Red Bull surpassed 1 billion cans sold in one year. Since 2001, Red Bull now sold over 40 billion cans. When a consumer buys a Red Bull, they’re not just buying our product—they’re buying into our brand. The product and its functionality is the foundation of Red Bull. People drink Red Bull because they expect and have experienced that it works!
The mission of Red Bull is straight forward and short. They want to be the leading beverage and media brand around the globe and give wings to ideas and people. By giving wings they mean increasing the consumption of Red Bull as they say Red Bull gives you wings. Also, they don’t want to restrict themselves by being a beverage brand they also want to establish themselves as a media brand which they are currently.
Red Bull believes that why sell only a product when you can offer a way of life. When a consumer buys a Red Bull, they’re not just buying our product—they’re buying into our brand. But what is a brand? And how does that differ from the product?
Product
Brand
Vitalizes body and mind.
Gives you wings. In different moments of need–sports, work, study, driving, playing video games, going out–consumers expect different benefits.
Role:
Our product and its functionality is the foundation of Red Bull. People drink Red Bull because they expect and have experienced that it works!
Role:
Our image creates associations–the desires and emotions that come into the consumer’s mind whenever they see a can of Red Bull. People also drink Red Bull because they identify with these associations!
Promise: PRODUCT
Positioning
Promise: BRAND
Reason Why
If Red Bull was a person, what personality would he have? As a new employee, it’s important to know the brand traits as they are reflected in pretty much everything we do.
Red Bull’s approach to using the logo is truly unique compared to other brands. Because we’re a premium brand, we are restrictive and very selective on how the logo is used. We never “over-brand”—we always use the logo with purpose, connected to one of our projects or initiatives. This makes our brand appear more desirable, credible and premium.
The can always remains our most important branding tool, authentic integration with opinion leaders or in a specific environment is key (e.g. can in hand, on a DJ desk, drinking scene, etc.).
Red Bull Energy Drink is a functional beverage that provides various benefits, especially in times of increased performance.
Red Bull Gives You Wings-Red Bull Energy Drink is appreciated worldwide by top athletes, students, and in highly demanding professions as well as during long drives.
The formula of Red Bull Energy Drink contains a special combination of high quality ingredients.
To this day caffeine is naturally present in more than 60 plants and contained in many foodstuffs such as coffee, tea and chocolate. In fact, the caffeine in Red Bull and the caffeine in coffee has an identical chemical structure. So, your body processes the ingredient the exact same way.
One of caffeine’s primary sites of action in the human body is its stimulating effect on cognitive functions. Caffeine helps to improve concentration and increase alertness.
One 250ml (8.4 oz) can of Red Bull Energy Drink contains 80 mg of caffeine—about the same amount of caffeine as a cup of coffee!
Taurine is found in high concentrations in muscle, brain, heart and blood.
Taurine is also contained in different foodstuffs like scallops, fish, poultry and most infant formulas.
There are two types of vitamins: fat soluble and water soluble. Red Bull contains water-soluble vitamins. Water-soluble vitamins do not get stored as much in the body as fat soluble vitamins. Instead they circulate through the blood plasma, whatever the body does not use will be released. Water soluble vitamins include the group of B vitamins, e.g. niacinamide (vitamin B3), pantothenic acid (vitamin B5), vitamin B6 and vitamin B12, which are contained in Red Bull.
These B-group vitamins contribute to normal energy-yielding metabolism, such as the build-up and break-down of carbohydrates and proteins and contribute to normal mental performance (B5) and the reduction of tiredness and fatigue (B3, B5, B6, B12).
Moreover, B-group vitamins play a central role in the brain; they contribute to the normal functioning of the nervous system.
Red Bull Sugarfree is Red Bull Energy Drink without sugar. It is a functional beverage with only 3 calories per 100 ml
Red Bull is a functional beverage that provides various benefits, especially in times of increased performance.
A big company doesn’t have to have a big carbon footprint. We’re always looking for ways to reduce our environmental impact. Learn more about what we’re doing by checking out our Can Lifecycle.
Fact: 80% of the energy used it the production processes of Red Bull comes from renewable resources.
Red Bull’s unique approach to marketing begins with the Marketing Mix. It features six pillars –each with a different objective, each equally important.
Red Bull’s business strategy is product differentiation and focus mainly. They are not towards cost leadership because the brand itself is a premium brand and they do not need cost leadership currently. However, their product is totally different, valuable, rare, and non-imitable and created its own culture. Western world never saw anything as an energy drink when Red Bull was launched. It was a unique formula to Vitalize mind and body and it became successful. Now the mixture of its ingredients is a secret and this is only produced in Austria and then it’s distributed globally. Moreover, Red Bull created a culture of adventure and sports so now when you see or think about adventure and sports, you think about Red Bull due to its heavy engagements.
Points of Parity
Points of Difference
Red Bull uses the acronym SMART to set objectives for their strategies and plans. The SMART objectives are: Specific, Measurable, Achievable, Realistic, and Time based.
Red Bull sets its objectives in precise numerical terms such as numbers, percentages, or even frequencies.
Red Bull monitors and records the data based on behaviours and actions. It measures the effectiveness of the objectives by evaluating consumers’ response.
Red Bull managers invest a reasonable amount of effort and application into achieving their main objective.
Red Bull sets its objectives based on the inputs they have in order to be realistic to reach their goals.
When planning a Red Bull campaign, the company sets specific dates and times for when the implantation, process and evaluation will take place.
Red Bull dominates the energy drinks market. Due to this, they will be continuously watched and monitored to ensure that they are meeting the required legal standards. The company has many different departments within their organization that specialize in certain aspects, combined, their efforts keep the business running smoothly. To avoid complexities, each department will ensure they are carrying out their own procedures legally.
There is a environmental factor that can affect the image of Red Bull, which is pollution. In 2009, there was an environmental agency published a list which about the top ten of companies awarded the biggest fines for waste activity and Red Bull was one of them. Red Bull realized their responsibility and improved their recycling system in recent years.
The drink itself has been questioned multiple times. It has been well documented that the energy drink is high in caffeine, with many critics suggesting it shouldn’t be consumed, something that France, Norway and Denmark have all taken into consideration. The social implications of this are obvious, giving the company a bad name for continuing to produce their drink with the given recipe.
To ensure they are reaching out to a wider market, Red Bull produced the sugar free version of their energy drink. This would appeal to people that are more conscious of the health issues, which is something that Red Bull recognised and acted on to prevent the loss of custom. The taste in this product, as well as the original, is another important social factor that Red Bull need to control.
With Red Bulls marketing techniques being recognised as highly controversial and unique, they are required to pay out large amounts of money to their stunt men/women due to the dangers they face. This being the case, the internet is something that Red Bull heavily rely on in order to promote their product. Websites such as YouTube, as well as social networking sites such as Facebook and Twitter will play an important role in helping their adverts become recognised. Not only is this a free way of advertising, it is also perfect for their target audience of active sports persons between 15-30, something that matches Facebook’s target market of active mobile phone users.
The first economic problem is inflation will be happening when there is too high supply of money in the economy, and it is not appeared by the goods and services. As a result of inflation, Red Bull might increase the price to sustain the business, also the costs of raw materials which for production will be increased as well. The interest rates that are provided by banks will affect Red Bull’s loans should they need one. Should the current economic situation continue to get worse, interest rates will rise.
To ensure their product can be sold in stores, the Red Bull energy drink will need to meet legal requirements applicable to the countries the product is available in, in order for trading to commence. The drink needs to be safe for humans to consume, meaning the customer doesn’t receive any adverse side effects, i.e. vomiting. In conjunction with this, the ingredients, along with the quantities they use, need to be clearly stated on each can or pack. This is a legal requirement to avoid consumers having a reaction, potentially leading to them filing a law suit generating bad press.
There are different factors that effect Red Bull from the micro environment, such as the suppliers, the customers, competitors and other substitute products. Red Bull will have an agreement in place in which their regular and trusted suppliers will provide their ingredients needed to create the products. The customers, most of which Red Bull will have specifically targeted, are the ones that the product is obviously designed for. They are, effectively, in charge of the success or failure of the product. The competitors in the market, which are all currently behind Red Bull in market share, will effect them via pricing differences, content differences and taste difference. These are some of the things Red Bull are required to consider when manufacturing, marketing and pricing their drink. Any substitute products that are on the market will need to be recognized and acted on. Cheaper drinks, such as supermarket branded energy drinks, are often packaged in a dull and less appealing way, giving Red Bull the advantage here.
Red Bull is the strongest brand in non-alcoholic beverages behind Coca-Cola and Pepsi, and is growing faster than them. Our brand value has also skyrocketed—in 2010 research company Millward Brown, calculated Red Bull’s brand value at $10.4 billion. After Red Bull Stratos, they valued it at $15 billion.
Red Bull is ready to compete with Coke and Pepsi all over the world.
Red Bull’s use of unconventional marketing tactics has enabled the company to uniquely position itself in the functional beverage industry. Although the company’s financial information is not released to thepublic; it appears that Red Bull’s unique positioning and marketing strategies have been successful in terms of market share, units sold, and revenue. We believe that these tactics will continue to prove successful in future.
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