Mktg 5011 W - Red Bull Case Report

MKTG5011W Individual Case Report 2

Q1: Red Bull’s strengths vs other competitors: 1> Red Bull has established a strong, consistent brand image globally. It is synonymous with energy drinks in many countries. 2> The promotional activities engaged by Red Bull through extreme sports sponsorships have helped the brand to build a strong identity and to increase consumer awareness/loyalty. 3> Red Bull has a broad geographic presence, which should ensure positive long-term growth even if certain markets reach maturity.

Risks:1> In overall soft drinks, Red Bull has a limited product portfolio compared to the rising number of competitors bringing many other flavor variants and categories. 2> Red Bull products are above the energy drinks average price. 3> Red Bull’s recipe is subject to copy because of a lack of patent. 4> The relatively high caffeine and taurine content of Red Bull makes the brand highly vulnerable to regulatory controls.

Q2: Pros: Reducing consumers’ ability to identify the message as advertising; cultivating a brand identity. Cons: Target audience may be confused and it might create a negative brand image.

I don’t think the company should do more traditional advertising, as current marketing strategy is quite fit to its target customers: younger end of the highly desirable 18-34 demographic, who is very savvy on the advertising. Red Bull focuses its content on the activities they love instead of traditional market product to them which would be a turnoff to them. Traditional advertising is only reinforce of the brand to its consumers.

Q3:

Red Bull sponsorships are effective, but a line should be drawn on dangerous sports or events. While stunts such as Bull Stratos could produce huge publicity for the brand if the stunt goes well, but if something goes wrong the brand image will be impacted. Well targeted campaigns and

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