Red Bull Brand Positioning

Through its brand positioning strategies

The Red Bull company has occupied a distinct and valued place in the minds of the consumers. Put into perspective, the brand Red Bull has found proper location in the minds of the customers, and as a result, they think positively about it. Compared to the competing brands, Customers perception about Red Bull is so superb that they purchase it more frequently. Clients view Red Bull as energetic and vibrant, and they personify these ideals. At the same time, they have a strong myth surrounding the brand, and this gives it authenticity as clients identify with it and express their sense of self through regular consumption.

Red Bull first brand association is through sponsorships

The company wide range of sporting activities including BMX, windsurfing, mountain-biking and Snowboarding, skating, rally, cliff-diving, wakeboarding, park-our, surfing, skate boating, rowing and kayaking. Also, the company associates itself through advertisement programs where they link the brand to various entertainment and sports. Nonetheless, they engineered their vehicle, for example, their championship winning F1 car to participate in the competition themselves. Further, their marketing strategy read that ‘We are with you and one of you’ and this is able to convince the clients that the company is part of them. As a result, most individuals feel affiliated with the Red Bull.

Question 2

Red bull uses various strategies for building brand associations. For instance, it applies the philosophy of link strong, favorable and unique associations for brand memory. Ideally, the following factors have made Red Bull associations successful;

Personal Relevance/ Consistency Overtime

Red Bull resorts to direct experiences that create formidable brand benefit associations. The company’s market strategy is to conquer places like shops, bars, stores, and clubs focusing primarily on opinion leaders who hold positive direct experience with the brand. In the event word of mouth has led to significant information about the brand, the company extends the distribution to the nearby "in" spots. Based on the theoretical proposition, it is believed that building these healthy connections between the brand, the experience, and category makes customers more inclined to choose the Red Bull brand over the competitors.

Brand Loyalty

As widely conceived, strong brands experience high levels of returns of market investments by establishing brand loyalty which clears up future cash flows and at the same time, reducing clients’ acquisition costs as the fraction of the market expense (Cnossen, Sampath, Taylor-Maisano, and Tsonev, 2017). Red Bull consumers are attached and have a feeling towards the brand. For instance, the organization in the process of its promotional activities associates its name with adventurous functions, famous sports, and pop-cultural events. Likewise, Red Bull creates constructive dialogue with its clients and builds a two-way relationship between commerce and culture. As a result, they instill loyalty in their target population which makes the organization successful.

Brand Awareness (Recognition and Recall)

A slogan or a jingle is capable of creating memory linkages to increase recall (Farris, Shames, Johnson, and Mitchell, 2016). In its above the board advertising campaigns, Red Bull used a slogan ‘Red Bull gives you wings' to promote the brand in mature markets. The company adopted five user categories it thought can be integral to spread awareness. They include; students, night clubbers, businesspeople, drivers, and athletes. The management identifies where those major accounts shopped regularly and targeted those places with massive promotions. Ideally, they focus on loyal clients who are convinced to try the brand. In case the product works by keeping him awake or in high spirits, vigilant and focused, they will be forced to re-purchase it. As seen in the case study, if that happens, then Red Bull receives between 75%-80% re-purchase rate.

Question 3

The various tactics and techniques deployed by Red Bull in an attempt to build image and association include;

Product/ Class Market

The company used a set of different products and brands which are believed to be the perfect substitutes to solve consumers' needs. At first, when the company had no intentional usage occasion, it assumed the position of coffee and several other caffeinated beverages as its alcoholic mixer. However, after building its energy drink class, it currently competes with products from this same market.

Consumer Segmentation

Red Bull emphasized greatly on the needs, expectations, and the characteristics of the target clients. Broadly speaking, the company purposed to reach a wide range of customers depending on their need for a stimulating drink. Simply put, Red Bull had two perspectives its brand; mentally lethargic individuals and physical fatigued group. Additionally, Red Bull categorizes its consumer segments as students, athletes, clubbers, business people, and drivers.

Perceptual Mapping

Red Bull used the graphical representation to determine the strength of its major competitors which are Red Devil, Red Eye, Rock Star, V, Mother, and Monster. The perceptual mapping helps Red Bull to determine the customer's underlying perceptions of a brand to other brands found within the similar category.

Brand Attributes and Benefits

Red Bull views the attributes of its products, which through the customer's frame of reference results in perceived benefits. The company, therefore, came up with a strong statement for market positioning 'revitalizes the body and mind' which portrayed the brand as detoxifying, stimulating, and a beverage clients could have anytime they need an energy boost.

Brand Communities

Brand communities are special, non-geographically oriented groups that are rooted in a set of social relationships amongst the consumers of a product and have the capacity to gather clients in a more complicated framework of relationships (Teigeler and Hahne, 2014). Since Red Bull is in need of finding modern methods of reaching and having a dialogue with customers, they use brand communities to help them achieve this objective. Consumers connected through this channel serve as the campaigners of the brand, and they are ready to carry and deliver the brand messages to other customers outside the team. Red Bull uses identifiable aspects of the brand such as symbols, clubs, logos, and memberships that are in tandem with brand identity. Consequently, the members of the community can identify themselves and differentiate easily from the other individuals in the society. Similarly, Red Bull creates a unique culture through organizing events where the community affiliates can interact with the brand, other clients, and the company concurrently.

References

Cnossen, C., Li, Y., Sampath, N., Taylor-Maisano, W., & Tsonev, V. (2017). What gives Red Bull wings: Creating a successful market-oriented organization.

Farris, P., Shames, E., Johnson, R., & Mitchell, J. (2016). Red Bull (a).

Teigeler, J., & Hahne, A. K. (2014). Market Analysis of Red Bull based on the countries Germany, Switzerland and Austria: Marketing. GRIN Verlag.