Red bull - Case study

Résumé du document

New wings to build brand equity: In the "Functional food" category, 70% of the market share was in the "stimulation drink" category in 2001. This amounted to $940 million. Marketing Expenditures in the same year were $245 million (25%). In a 250ml can of the drink, one can taste Red Bull's history. To summarize, it was Founded in Austria in 1985 by a former marketing manager of Procter & Gamble. It was sold exclusively in Austria for 5 years, and entered new markets slowly and methodically. The marketing strategy based on Word Of Mouth (WOM) and mystification with little traditional advertising support. Red Bull is now the leader of the Energy Drink (or « functional food ») segment in every country where it is sold! It is positioned as the first stimulation drink for both mind and body that may be used at anytime, anywhere, by anybody, not only as a thirst-quencher but also as a cure against tiredness.

Extraits

[...] Red Bull Ecstasy pills? Any extension has to based on the same benefit than the original product High risk of brand dilution and tainted image  Is the market ready for this? Building around the brand? Line Extension Existing brand names extended to new forms, sizes, and flavors of an existing product category. For the moment, only 1 SKU Targeting special groups/uses is it coherent and profitable? “Diet Red Bull”? Selling multi packs for increased penetration? Selling bigger size for an extra stimulation? [...]

[...] Market Penetration Market Development Product Development Diversification Market Existing New Product Category Existing New Opportunities for Growth < number > Brand Strategy This CTR corresponds to Figure 8-4 on p and relates to the discussion on pp. 250-252. Brand Strategy Companies may implement at least four brand-name strategies, including: Line Extension. This strategy occurs when a company introduces additional items in a given product category under the same brand name. The vast majority of new product introductions are line extensions. Brand Extension. [...]

[...] This strategy develops two or more products in the same product category. P & G pioneered multibranding. New Brands. Here a company creates a new brand name when it enters a new product category for which none of the company's current brand names are appropriate. Building around the brand? New Brands New brand names in new product categories. Red Bull was a success because marketing was dedicated to a single product. Too resource demanding for such a new brand, still in a growth phase. [...]

[...] P & G pioneered multibranding. New Brands. Here a company creates a new brand name when it enters a new product category for which none of the company's current brand names are appropriate. Line Extension Multibrands Brand Extension New Brands Brand Name Existing New Product Category Existing New Brand Strategy < number > Brand Strategy This CTR corresponds to Figure 8-4 on p and relates to the discussion on pp. 250-252. Brand Strategy Companies may implement at least four brand-name strategies, including: Line Extension. [...]

[...] P & G pioneered multibranding. New Brands. Here a company creates a new brand name when it enters a new product category for which none of the company's current brand names are appropriate. Opportunities for a continuing success Market Penetration From the beginning, strategy centered on the opportunity to drink Red Bull at any time, for any occasion Austrian example : opportunities for growth Can be duplicated in other markets (e.g. the USA) Is there a limit to this growth? [...]