Running Head: ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Assessment Item 1 Red Bull Branding Story
Name:
Tutor:
Course:
Date:
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
© Topmarkdissertations.com- Sample Marketing Essay
1
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Table of contents
Abstract………………………………………………………………………………….3
Introduction……………………………………………………………………………….4
Brand positioning and values……………………………………………………………...5
Brand characteristics………………………………………………………………………7
Customer benefits……………………………………………………………………….....7
Brand communities…………………………………………………………………………8
Brand equity…………………………………………………………………………………9
Conclusion…………………………………………………………………………………..12
References……………………………………………………………………………………13
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
© Topmarkdissertations.com- Sample Marketing Essay
2
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Abstract
A brand can be defined as a name, symbol, sign, term, or even a design that is used in order to
identify a product and differentiate it from others in a competitive market. Red Bull is a product
that has been very successful in the international market as a result of branding. Brand
positioning is considered as the heart of marketing strategy since it is the process of designing
the company’s image as a way of making it occupy a distinct valued place in the market. This
report intends to address the brand positioning and values of Red Bull, brand characteristics,
consumer benefits, and brand equity of Red Bull.
Key words: brand, brand positioning, brand value, and brand equity
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
© Topmarkdissertations.com- Sample Marketing Essay
3
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Introduction
Red Bull was founded by a former marketing manager in Australia called Dietrich
Mateschitz. The discovery of this brand was made when Mateschitz was visiting to Asia and he
discovered that an energy drink called ‘Krating Daeng was very popular. After this product was
introduced in Australia, it achieved a remarkable growth due to the fact that it was available in
only one stock keeping unit. Additionally, this brand received a traditional advertising support
and hence many people in this country come to learn about it. By the year 1997, Red Bull was
available in the whole world in a total of 25 markets and hence the sales of this product grew
drastically from 1.1 million units to more than 200 million units. This is a show that people
increasingly bought this product as the marketing and advertising processes were well conducted
despite the fact that traditional advertising methods were used (Kate, 2000). The way in which
this product was designed contributed a lot in making it successful in the western, Asian, and
eastern markets. It order to make it more competitive in the markets, the manufacturers of Red
Bull product ensured that it had some characteristics that were admired by the consumers (Kate,
2000). In this case, improved the physical endurance, increases mental alertness, enhances
reaction speed and concentration, and enhances the overall feeling of well being. The Red Bull’s
flavor was proposed to communicate to the customers the brand’s value as a functional energy
drinks (Kate, 2000).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
© Topmarkdissertations.com- Sample Marketing Essay
4
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Red Bull in Australia faced a lot of challenges before it was accepted by many people in
this area. Red Bull fell under the category of traditional food when it was introduced in Australia
market (Kate, 2000). This category made Red Bull to fail in the market as its performance
benefits were not recognized. The Red Bull manufacturers therefore decided to change the
category of this product to functional foods as a way of trying to win the Australian market
(Kate, 2000). The process of marketing Red Bull was heavily competed against by the traditional
soft drinks. Red Bull was able to beat these other competitors because of the branding strategy,
branding positioning, brand equity, and brand value that are used (Kate, 2000). The success of
Red Bull in the international market has been brought about by the branding strategy that has
been used. This report intends to address the brand positioning and values, brand characteristics,
consumer benefits, and brand equity of Red Bull product.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Brand positioning and values
According to Keller (2008), a brand can be defined as a name, symbol, sign, term, or
even a design that is used in order to identify a product and differentiate it from others in a
competitive market. Customers in most cases tend to purchase goods and services which they are
very sure about and know (Kate, 2000). In this case, when a certain name or sign is used in a
product, it becomes very easy for customers to know the manufacturing company and the
purpose they are intended to serve (Aaker & Joachimsthaler, 2000). Many managers refer a
© Topmarkdissertations.com- Sample Marketing Essay
5
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
brand more than the definition that is provided. This is because managers view a brand as
something that creates awareness, prominence, and reputation among others in the market
(Kapferer, 2004). In order to increase the market and sales of Red Bull, the branding of this
product should be well done (Elliott & Percy, 2007). This indicates that the name, sign, symbol,
and design that are used on this product should be very attractive and understandable in order to
adequately convince consumers to purchase them. As indicated in the introduction part, Red Bull
was able to gain considerable market in Australia as well as the whole world because of the
branding strategy that was employed (Lehu, 2006).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Brand positioning has been considered as the heart of marketing strategy since,
according to Harvard Business Review (1999), it is the process of designing the company’s
image as a way of making it occupy a distinct valued place in the market. This implies that brand
positioning is an act of making a brand more valuable and admirable in the market (Neal, 2007).
It should be noted that in order to make sure that a product like Red Bull is able to increase its
competitive advantage in the global market; a brand should be well positioned. From the works
of Roll (2006), brand positioning can be arrived at by making sure those competitive frames of
reference are well defined and communicated to the customers (Schroeder & Salzer-Mörling,
2005). This shows the process of brand positioning of Red Bull as it was done by Mateschitz.
According to him, the brand positioning of Red Bull was ‘Revitalizes body and mind’. This
phrase helped in increasing its sales as it conveyed the tangible benefit of this product in a very
easy manner. This shows that brand positioning of Red Bull makes it to be drunk at all times of
© Topmarkdissertations.com- Sample Marketing Essay
6
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
the day as people need to be revitalized in their bodies and minds (Wheeler, 2006). When an
appropriate brand positioning is used on Red Bull it would enable it to grow into large market
segments as there is no specification of the consumption occasions (Keller, 2008).
Brand value is the value that is brought about by the benefits of a brand. In this case, the
benefits that are accrued from the consumption of Red Bull indicate the value of that brand
(Aaker & Joachimsthaler, 2000). For instance, the value that is derived from the properties of
Red Bull such as improving the physical endurance, enhancing reaction speed and concentration,
enhancing the overall feeling of well being, and stimulating metabolism and assists in
eliminating waste substances (Kate, 2000). This shows that if Red Bull would improve and
increase its benefits it would in return improve the value of the brand (Elliott & Percy, 2007).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Brand Characteristics
There are different aspects of a brand that make customers increasingly purchase it in the
market. These aspects are referred to as the brand characteristics. According to Harvard Business
Review (1999), when a brand has good characteristics that are admirable to the customers its
sales increase and its markets widen in an area. It should be noted that customers are attracted to
a brand as a result of the benefits they gain from that that product (Kapferer, 2004). This shows
that the benefits that are gained from Red Bull product bring about value to this product and
hence more and more customers tend to purchase it. One of the characteristic of Red Bull is
stimulation of the nervous system since this product contains caffeine (Lehu, 2006). As a result
© Topmarkdissertations.com- Sample Marketing Essay
7
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
of this, the heart rate increases and blood vessels expand making the brain to receive more
oxygen. The flavor of this product makes it to be drunk by as many people as possible since this
is communicated as a value of the functional energy drink (Neal, 2007). The medicinal taste that
is contained in Red Bull as it is described by consumers indicates that it is not mere refreshment
(Kate, 2000). The other characteristic that makes customers to be more attracted to this product
is the way it is packaged. The small can that is used which was an origin of Japan indicated to
the customers that the contents inside were very different from what was contained in the
traditional soft drinks.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Customer Benefits
Red Bull provides a number of benefits to customers which contribute to customer
satisfaction. As it is reported by Roll (2006), when a brand has as much benefits as possible it
satisfies the customers who in return increase their purchases. The benefits that are brought about
by Red Bull include; improvement of the physical endurance, stimulation of the metabolism and
helps in eliminating waste substances, improvement of the overall feeling and well being,
increasing mental alertness, and enhancement of reaction speed and concentration (Kate, 2000).
This implies that customers who purchase Red Bull product are not only getting refreshment but
also other benefits (Schroeder & Salzer-Mörling, 2005). When customers realize that by
consuming Red Bull their central nervous system will be stimulated they will be more attracted
to buy this product as they are satisfied (Wheeler, 2006).
© Topmarkdissertations.com- Sample Marketing Essay
8
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
The flavors that are used in the manufacture of Red Bull make it have a pleasant taste that
is admired by many people. It should be noted that customers usually increase their purchases
when they are adequately satisfied by that product (Kate, 2000). The aspect of improving the
health conditions of consumers of Red Bull especially when their metabolisms are stimulated
adequately satisfies customers making them purchasing as much of this product as possible. A
product that does not satisfy customers is not purchased even though its price is very low (Keller,
2008). The reason as to why Red Bull has been able to defeat traditional soft drinks in the market
is because of the way it adequately satisfies customers through its consumer benefits.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Brand Communities
The recent developments in marketing and marketing research especially on consumer
behavior have stressed the relationship between individual identity, brand, and culture. In this
case, the concepts that have been developed in establishing a brand community focus on the
connections between consumers (Harvard Business Review, 1999). A brand community
therefore can be defined as a community that is formed on the basis of their attachments to a
particular product (Elliott & Percy, 2007). The consumption of this product is not limited tom
particular occasions or activities as the case of other beverages. In this case therefore, Red Bull
can use the concept of brand communities by making sure that people in particular activities are
mainly targeted (Kapferer, 2004). For instance people found mostly in sports can be targeted as
the major brand community of this product in order to make it able to increase is sales. It should
© Topmarkdissertations.com- Sample Marketing Essay
9
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
be noted that when this product became international, it attracted many athletes in the world like
Shane McConkey, Eddie Irvine, and Robby Naish. This shows that this product can be mostly
used by sport men as a way of refreshing them.
The concept of brand community denotes that a certain community is mostly attracted to
consume a particular product. In Australia and other markets in the world, the earlier adopters of
this product were ravers, dancers, and clubbers who wanted to be refreshed by the drink at late
night parties. This shows that the sport market can be depended on as the brand community in
order to make the sport men and women stay refreshed over the time they are in a sport (Lehu,
2006).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Brand Equity
As it has been indicated by Neal (2007) and Schroeder and Salzer-Mörling (2005), the
concept of brand equity relates to the fact that as a result of a brand name, symbol, sign, or/ and
design, there are different outcomes which result in the market of a product as compared to a
similar product that does not have that name, symbol, or design. Different customers in a market
have different knowledge concerning a particular product and hence the differential effect that
brand knowledge creates on customers impacts the market of that brand. This denotes that when
customers are much aware of a product and its branding strategy they will be in a position to
increasingly purchase it as compared to when they do not know anything about it.
© Topmarkdissertations.com- Sample Marketing Essay
10
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
It has been indicated by Keller (2008), brand equity is considered as the favorable,
unique, and strong brand relationships in the memory of customers. This indicates that customers
are well informed about a brand by the name, sign, symbol, and design that are used in
advertising it. In most case, a brand name, like Red Bull and the symbols that are used in
advertising this brand communicate very clear message to the customers. According to Aaker
and Joachimsthaler (2000), a brand has the potential of adding important value especially when it
has a positive relationship and well recognized by the consumers. In this respect, the concept of
brand equity is an intangible asset that relies on connections that are made by the consumers
(Elliott & Percy, 2007). The price premium that a brand commands over a generic product is one
method through which brand equity is measured. For instance if the customers are willing to pay
$20 for a branded Red Bull over the same unbranded traditional soft drink, this difference in
premium price helps in providing relevant information concerning the value of the brand
(Harvard Business Review, 1999).
Keller (2008) goes on to identify the sources of brand equity and came up with two sources;
brand image and brand awareness.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
a) The brand awareness as a source of Red Bull brand equity
There are two key elements of brand awareness which are recognition and recall. According
to Kapferer (2004), the recognition of a brand is usually brought about by the decisions that are
made by customers at the point of purchase. This is because a customer makes decisions to
© Topmarkdissertations.com- Sample Marketing Essay
11
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
purchase a product as a result of the recognition he or she makes after being guided by the brand
name, logo, packaging as well as other elements of brand recognition (Lehu, 2006). In this
respect, the branding strategy that is used in packaging Red Bull is a good indication of the way
customers recognize this product. Brand awareness of Red Bull is the capability of customers
identifying this product under different circumstances (Neal, 2007). Brand recognition has been
developed in Red Bull product by ensuring that the name, symbol, and design that are used are
easily recognized. Additionally, the contents and packaging of this product is easily recognized.
This is because the taste that Red Bull is considered by many customers and consumers as a
functional energy drink (Roll, 2006). The Red Bull manufacturers never cared about the taste at
first as they were mostly concerned with the function that is served by the product.
The other aspect of awareness is recall. This is the process by which a customer comes to buy
Red Bull product again after consuming the first one (Schroeder & Salzer-Mörling, 2005). This
shows that the buying decision is made even before arriving at the point of purchase. In this
method, a customer recalls a product he or she had purchased and decides to purchase it again. In
this method, identification of a brand is made with minimal cues as a customer has already come
across the brand again (Wheeler, 2006).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
b) The brand image as a source of Red Bull brand equity
A brand image is one of the most important aspects of a brand as it is reflected by the
relationships that consumers have towards that product. In this case, the image of the small can
© Topmarkdissertations.com- Sample Marketing Essay
12
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
that is used in packaging Red Bull attracts customers (Kate, 2000). The image of a brand creates
the level of brand associations with customers. In this case, beliefs are the thoughts that a person
has over a product. These thoughts are shaped by the image of a brand. This implies that if the
image of that brand is attracting, customers will be more willing to purchase it than when the
image is not attracting (Keller, 2008). The symbols, names, design, and signs that are used in the
small can that packages Red Bull play a very vital role in attracting customers. There are some
customers who after seeing the image of a product get attracted to the product (Aaker &
Joachimsthaler, 2000).
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
Conclusion
Branding is a very essential aspect to consider in marketing a product to both domestic
and international markets. This is because products that are well branded are easier to market as
compared to those which are not branded. Red Bull is a product that is gaining a lot of markets in
the international market because of the way it is branded. In this respect, the market segment that
is represented by this product is increasing from time to time. As can be identified in the report
of Kate (2000), Red Bull is used in all activities and occasions hence making more and more
famous as compared to the other traditional soft drinks. The aspect of brand positioning denotes
presenting a brand in the market in the best way possible in order to attract as many customers as
possible (Keller, 2008). In this case, the names, symbols, signs, and designs as well as packaging
that is used by Red Bull manufacturers clearly attract customers and hence increase the product’s
© Topmarkdissertations.com- Sample Marketing Essay
13
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
sales in the global market. Brand value, as denoted by Keller (2008), is the value of the benefits
that are brought about by a brand. In this case, the brand value increases as the benefits received
by customers increase.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
References
Aaker, D. A. &Joachimsthaler, E. (2000). Brand leadership. New York: Free Press.
Elliott, R. & Percy, L. (2007). Strategic brand management. Oxford: Oxford University Press.
Harvard Business Review. (1999). Harvard business review on brand management. Boston.
Boston University Press
Kapferer, J. N. (2004). The new strategic brand management: Creating and sustaining brand
equity long term (3rd ed.). London: Kogan Page.
© Topmarkdissertations.com- Sample Marketing Essay
14
ASSESSMENT ITEM 1 RED BULL BRANDING STORY
Kate, K. (2000). Red Bull Changed Up. Advertising Age, p. 26
Keller, K. (2008). Strategic brand management (3rd ed.). Upper Saddle River NJ: Prentice Hall.
Lehu, J. M. (2006). Brand rejuvenation: How to protect, strengthen & add value to your brand
to prevent it from ageing. London: Kogan Page.
Neal, W. (2007). Brand management with brand metrics. Ohio: South-Western Publishing
Company.
Roll , M. (2006). Asian brand strategy: How Asia builds strong brands. New York. Palgrave
Schroeder, J. E., &Salzer-Mörling, M. (2005). Brand culture. New York: Routledge.
Wheeler, A. (2006). Designing brand identity: A complete guide to creating, building and
maintaining strong brands (2nd ed.). New Jersey: John Wiley.
WE ARE MARKETING ESSAY EXPERTS! ORDER NOW!
TOPMARKDISSERTATIONS.COM!
© Topmarkdissertations.com- Sample Marketing Essay
15