Group Project

Brand Audit
of
Red Bull

Strategic Brand Management

Submitted To: Submitted By: Group 11 (SBM B)
Dr. Sanjay Jain Himalay Solanki (171324)
Mangesh Rane (171331)
R Ritika Iyangar (171337)
Rahul Bhatti (171338)
Tanya Raghav (171361)
Submitted on December 3, 2018
 Table of Contents

Serial No. Topic Page No.

1 Chapter 1- Background of the Company History
2 Company History 2
3 Industry Background 4
4 Consumer Analysis 6
5 Competitor Analysis 7
6 Porter’s Five Forces Analysis 12
7 Chapter 2- Brand Inventory
8 Brand Portfolio 14
9 Brand Hierarchy 15
10 Current Marketing Program and Strategy 16
11 SWOT Analysis 18
12 Chapter 3: Brand Exploratory
13 Brand Knowledge 21
14 Brand Elements 21
15 Brand Awareness 23
16 Brand Recognition 24
17 Brand Image 26
18 Brand Positioning 26
19 Brand Resonance Pyramid 29
20 Brand Identity Prism 32
21 Chapter 4: Brand Recommendations & 33
Suggestions
22 Chapter 5: Conclusion 38
23 Appendix 39
24 References 42

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CHAPTER 1: BACKGROUND OF THE COMPANY
HISTORY

History

Red Bull is an energy drink sold by Red Bull GmbH, an Austrian organization founded in 1987.
Red Bull has the highest market share in the energy drink industry with 6.302 billion jars sold in
a year (as of 2017).

In 1976 Chaleo Yoovidhya presented a beverage called Krating Daeng in Thailand, which signifies
"red gaur" in English. It was famous among Thai truck drivers and workers. While working for
German maker Blendax (later procured by Procter and Gamble) in 1982, Dietrich Mateschitz made
a trip to Thailand and met Chaleo, proprietor of T.C. Pharmaceutical. Amid his visit, Mateschitz
found that Krating Daeng helped fix his stream slack. In 1984, Mateschitz helped to establish Red
Bull GmbH with Yoovidhya and transformed it into a global brand. Each accomplice contributed
US$500,000 of investment funds to establish the organization. Yoovidhya and Mateschitz each
held a 49 percent offer of the new organization. They gave the staying two percent to Yoovidhya's
child, Chalerm, yet it was concurred that Mateschitz would run the organization. The item was
propelled in Austria in 1987.

In Thailand caffeinated drinks are most prevalent with industrial specialists. Red Bull re-situated
the beverage as a stylish, upscale beverage, first presenting it at Austrian ski resorts. Valuing was
a key differentiator, with Red Bull situated as a superior beverage and Krating Daeng as a lower
cost thing. In numerous nations the two beverages are accessible, overwhelming the two closures
of the value range.

In 1992 the item extended to universal markets: Hungary and Slovenia. It entered the United States
by means of California in 1997 and the Middle East in 2000. In 2008, Forbes magazine recorded
both Chaleo and Mateschitz as the 250th most extravagant individuals on the planet with expected
total assets of US$4 billion.

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Red Bull GmbH is headquartered in Fuschl am See, an Austrian town of around 1,500 occupants
close Salzburg. The organization is 51 percent controlled by the Yoovidhya family who, for
specialized reasons, claim the trademark in Europe and the US.

In 1995 Krating Daeng approved its beverage, marked as Red Bull, to be sold in China. Since
2014, the Austrian Red Bull (carbonated) has additionally been sent out to China. This has made
disarray since the two beverages utilize a similar brand name, in both English and Chinese.

So also, in Southeast Asia, Red Bull and Krating Daeng are regularly befuddled as both utilize the
Red Bull name in their bundling, in spite of the fact that they are two separate items gone for
various markets. The primary distinction is that Red Bull arrives in a tall blue and silver can while
the Thailand Red Bull, or Krating Daeng, is in a littler gold can. The two beverages likewise
contrast as far as taste—Red Bull has less sugar and is carbonated. The seasoning utilized for Red
Bull is still delivered in Bangkok and sent out around the world.

Austrian business visionary Dietrich Mateschitz was motivated by a current caffeinated drink
named Krating Daeng, which was first presented and sold in Thailand by Chaleo Yoovidhya. He
took this thought, altered the fixings to suit the preferences of Westerners, and, in organization
with Chaleo, established Red Bull GmbH in 1987 in Chakkapong, Thailand. In Thai, daeng implies
red, and a krating (referred to in English as a gaur or Indian buffalo) is a substantial types of wild
cow-like local to South Asia. Yoovidhya's beneficiaries possess dominant part stakes in the two
brands, and they both utilize a similar red bull on yellow sun logo while proceeding to showcase
the different beverages to the individual Thai and Western markets.

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Industry Background

Global energy drink sales reached €65 billion in 2017, according to BeverageDaily.com, an online
news service covering the food and beverage industry. Caffeinated drinks are a piece of the more
extensive soda pop classification, which incorporates carbonated refreshments, products of the soil
juices, filtered water, sports drinks, refreshment concentrates, prepared to-drink tea, and prepared
to-drink espresso. Inside this industry, shoppers have been purchasing not so much soft drink but
rather more caffeinated drinks. Americans today are expending about indistinguishable measure
of soft drink from they were in 1986. In the interim, caffeinated drink deals have been developing
quickly, as per the American Beverage Association, the exchange affiliation that speaks to
America's non-mixed refreshment industry. The business sectors that will be most imperative for
caffeinated drink development through 2018 are the United States, China and Brazil, as per
statistical surveying firm Euromonitor International.

The global energy drinks market is expected to reach USD 84.80 billion by 2025, as per a new
report. Customers searching for breaking the repetitiveness in day by day refreshments incorporate
these caffeinated drinks in their daily practice to enhance their execution, and keep them hydrated
in the meantime.

Top Emerging Companies and Trends

The caffeinated drink advertise is immersed, making it hard for little and new organizations to
contend. No organizations seem to represent a genuine danger to Red Bull, or Monster and
Rockstar's market strength. On the off chance that we factor in vitality shots, 5-Hour Energy would
rank in front of Rockstar in vitality refreshment deals; its nearest rival, 6-Hour Power, would rank
close to the base of the rundown. Caffeinated drink blends like MIO Energy and Crystal Light
Energy are not real players in the market, generally.

There might be room in the caffeinated drink showcase for organizations that separate themselves
from the main players' brands, which look amazingly comparable in their publicizing,
advancements, and sponsorships. Contenders confront difficulties, for example, conveyance,
getting rack space, and by and large offering something exceptional from the huge three.

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Beast and Rockstar, and less so Red Bull, are over the patterns in the caffeinated drink and more
extensive soda pop industry and have augmented their item contributions to contend with littler
players. For instance, while Steaz Energy, the most famous natural caffeinated drink, separates
itself by utilizing guaranteed natural and Fair Trade fixings and being founded on green tea,
Rockstar has a natural offering, and Monster has one with green tea.

Another pattern is caffeinated drinks with extra fixings that should upgrade athletic execution and
recuperation. We may likewise begin seeing more caffeinated drinks with extended chain amino
acids (BCAAs), protein, n-acetyl-l-tyrosine, beetroot concentrate ,and creatine, as indicated by
BeverageDaily. Other generally new assortments of existing caffeinated drinks have moving
focuses like no sugar, no carbs, no calories, and, illogically, no caffeine. There are likewise
espresso flavors and non-carbonated flavors. Other showcasing procedures incorporate
constrained version drinks offered just in certain store chains and flavors custom fitted for various
nations.

The caffeinated drink industry has been developing gainfully for a considerable length of time as
other once-famous refreshments have declined, and it shows up on track to continue developing in
spite of administrative and wellbeing challenges. Two of the three driving organizations are
exclusive, which limits choices for speculators who need guide introduction to this classification.
Be that as it may, stocks in organizations, for example, Monster, alongside ETFs concentrated on
the sustenance and refreshment industry, offer the chance to take part in the caffeinated drink
industry's future execution.

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Consumer Analysis

DEMOGRAPHICS

Overall statistics of energy drink shows that the average age of buyers is between 18-35 years. A
survey shows that the average age of a Redbull buyer is 28.5 years. Although Redbull is consumed
by both males and females, male consumers are more than the female consumers. These
individuals are mostly bachelors not living at home. They are usually students, professionals,
athletes, etc.

PSYCHOGRAPHICS

The customers of Redbull usually belong to the middle and upper-class.

GEOGRAPHIC

The customer base of Redbull generally consists of population from the urban areas but with time
the rural areas have also started creating demand for its products.

NEEDS

Redbull is generally consumed by people who feel the need for extra energy boost. These people
include athletes, students, stresses out employees/professionals, etc. They are looking for extra
boost so that it helps them in performing their task better.

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Competitor Analysis

Direct Competitors

PepsiCo

One of the greatest players in the soft drink industry, PepsiCo was shaped after the merger of Pepsi
and Frito lay in 1965. The brand has seen development in natural income in 2017. It has 20 brands
worth more than billion dollars in its item portfolio. US is biggest market where it is occupied with
serious rivalry with Coca Cola and Dr Pepper Snapple. Its caffeinated drinks additionally rival Red
Bull. Pepsi's Net income in 2017 was 63.5 Billion Dollars and Gross Profit 28.8 Billion dollars.
Aside from seasoned soft drink drinks, the brand likewise rivals Dr Pepper Snapple over the
caffeinated beverages and juice class.

Coca Cola

Coca Cola is one of the main soft drink refreshments organizations of the world with a substantial
item portfolio made up of in excess of 500 brands. The most splendid stars in its portfolio are the
21 in number which are worth in Billions. Every one of these brands creates 1 billion USD or more
in income. Aside from soft drink refreshments in different flavors, the brand likewise moves
caffeinated drinks, filtered water, squeezes and low-calorie soft drink drinks. The brand is
available in excess of 200 nations and is likewise known for incredible showcasing abilities
separated from abnormal state of prominence. Coca Cola is likewise a noteworthy contender of
Red Bull with rivalry going ahead between the two brands crosswise over caffeinated drinks
portion.

Monster

Monster is likewise a noteworthy contender of Red Bull with its arrangement of caffeinated drinks.
The brand moves crosswise over 128 nations. Its gross moves in 2016 achieved 3.5 Billion dollars
ascending from 3.1 Billion dollars in 2015. It also has a few of its caffeinated drinks items
contending with Red Bull crosswise over US and different markets.

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Dr Pepper

Dr Pepper has a substantial item arrangement of in excess of 50 reviving brands. These brands
incorporate carbonated soda pops, juices, teas, blenders, waters and different refreshments. Dr
Pepper is a noteworthy contender of PepsiCo, Coca Cola and Red Bull in the US showcase. Its
2017 income was 6.4 billion dollars of which 90% was earned from the US advertise. Dr Pepper
has made a progression of vital acquisitions in the course of the most recent three decades to
develop its business and client base. In spite of its constrained item portfolio when contrasted with
the two noteworthy players in the soft drink industry, the brand has kept on extending and
develops. 2016 was a decent year fiscally for Dr Pepper Snapple. Its Venom caffeinated drink
rivals Red Bull.

Nestle

Nestle is also a competitor of Red Bull. It has large product portfolio which consists of health
friendly products and also includes energy drinks.

Analysis of Competition

The basic categories in the soft drink market are as follows;

1. Carbonated Drinks
2. Diet Drinks
3. Sports Drinks
4. Energy Drinks

Red Bull falls in energy drink category and directly/indirectly competes with other three
categories. To identify the strength and weakness of competitor’s top selling brand from each
category is analyzed.

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Carbonated Drinks

Competitor Name Strengths Weakness

Coca Cola High Availability High Carbon Di Oxide

Content
Pepsi Excellent Distribution
channel Not preferred by Health
Mirinda Low Price Conscious

Sprite Taste Good Imaged as non-healthy drink

Limca Variety in Flavour

Fanta Variety in Size

Thums Up High Advertisement

Diet Drinks

Competitor Name Strengths Weakness

Diet Coke Medium Availability High Carbon Di Oxide

Good Distribution channel Content
Diet Pepsi
Medium Price Doubts on Actual Results
Taste Good

Variety in Flavor
Variety in Size

Health Conscious
Sugar Free
Low Calorie

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Sports Drink

Competitor Name Strengths Weakness

Gatorade Medium Price Poor Taste

Lucozade Sport Variety in Flavour Low Availability

Variety in Size Weak Distribution Channel

Health Conscious Moderate Taste

Athlete Drink

Energy Drinks

Competitor Name Strengths Weakness

Amul Stamina Health Conscious Poor Taste

Low Availability
Cloud 9 Athlete Drink
Weak DistributionChannel
Bling High Energy Content Poor Taste

X365 Keeps you awake High Price

No Variety in size

No Variety in Flavour

Many worldwide caffeinated drinks which have not yet made their entrance in Indian market.
These potential contenders have colossal parental favorable position. Coke and Pepsi both have
phenomenal conveyance organize. Aside from dissemination organizes their spending on
promotion is immense which may specifically influence Red Bull in future.

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There is an extra preferred standpoint with Red Bull with contenders. The vitality portion is to a
great extent obscure in India now of time. The contenders spending on ad will make another market
for caffeinated drink which will expand the extent of market all in all.

Aside from every one of these classifications, there are some backhanded contenders which
undermine the Energy Drink market. Tea, Coffee, Ready to Drink Juices, canned items (Amul
Café), Ready to drink milk likewise are circuitous contenders of Red Bull. Since they additionally
effectively keep one wakeful for quite a while, these items are utilized by individuals due to their
simple accessibility, low costs and simplicity to make at home. These are the intermediary items
which eat into the market, yet Red Bull isn't straightforwardly rivalling in the market.

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Porters Five Forces Analysis

Threats of new entrants

This power of market is influenced by the intensity of the new organization that will enter the
opposition. This power ends up more grounded if the venture and the expense to set up the business
is low, less scales and measures to pursue, and the innovation included are effortlessly accessible
in the market. These elements are additionally called the barriers to entry for new participants and
if there should arise an occurrence of our item a portion of these boundaries are not high and some
are sufficiently able to be broken by some new contestant. The expense of setting up the plant of
caffeinated drink isn't so high so any new section in the market of caffeinated drink can set up an
assembling plant however alternate hindrances like agreeing to such a large number of controls
and government laws is high. Caffeinated drinks significantly contain caffeine as a key fixing and
the amount and nature of this caffeine is tried on different parameters of the administration.
Another high hindrance for new participants is the brand picture of red bull in the market of
caffeinated drinks. The red bull has set up an exceptionally solid and dependable brand name in
the market which can't be even envisioned by some new section in the market of caffeinated drinks.

Bargaining Power of Buyers

The market of caffeinated drinks is exceptionally focused as there are in excess of 100 brands of
caffeinated drinks accessible in the market. Be that as it may, the market of these sorts of beverages
is significantly caught by four driving brands: Red Bull, Monster, Rockstart and Full Throttle. The
market proportion of the other three brands in relatively low which demonstrates that the
purchasers of the item are getting Red Bull over some other caffeinated drink. Yet at the same time
it is a danger for our item as alternate brands are additionally focused in the market and the
purchasers have choice to pick. The purchasers have less power with them in this situation in light
of the fact that the Red Bull has caught 75% market of caffeinated drinks and can administer the
market by its restraining infrastructure. The purchasers don't have capacity to deal which fortifies
the situation of Red bull in the market and it can choose its costs and keep them higher if necessary.

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The customer sections of caffeinated drink is likewise the one with higher pay and need to revive
their body and brain after the diligent work of entire day

Bargaining Power of Suppliers

The intensity of providers relies upon the creation procedure and its prerequisites of crude
materials. Red bull does not require an explicit crude material or auxiliary item for the generation
of conclusive item. In this way the providers of Red Bull don't have enough capacity to drive the
costs of the item. The creation procedure of Red bull continues increasing the value of the item at
each phase of the procedure and makes enormous benefit. Providers of Red bull are known in view
of Red bull just so they don't have dealing power.

Threats of substitute products

Danger of substitute item is another significant main impetus for the achievement and
disappointment of the item. Red Bull significantly contains caffeine and has been a substitute for
espresso in the present world. Some mixed beverages may likewise occur of Red Bull since it is
utilized for high kick of vitality and as a pressure buster. A couple of mixed beverages can likewise
understand the reason. The market has numerous less expensive, helpful and less unsafe items that
can without much of a stretch meet the prerequisites of the clients and supplant this exorbitant
caffeinated drink from the market. So, in this situation the danger of substitute is higher for our
item.

Rivalry

The quantity of adversaries of Red Bull in the market of caffeinated drink is less. There are just
three different brands that are significantly sold in the market. Be that as it may, the piece of the
pie of Red bull is much than the aggregate piece of the pie of these three contenders. The providers
and purchasers of caffeinated drink advertise don't have numerous alternatives so the effect of
contention isn't much in the situation of caffeinated drinks.

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 CHAPTER 2: BRAND INVENTORY

Brand Portfolio and Brand Hierarchy

 Brand Portfolio

Red Bull

Energy Zero
Sugar Free Editions
Drink Calories

The Red
Edition

The Blue
Edition

The Silver
Edition

The Yellow
Edition

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 Brand Hierarchy

Corporate •Red Bull

Brand GmbH

Family •Red Bull

Brand

•Red Bull
Individual Energy
Brand Drinks

•Regular
Modifier •SugarFree

Product •Instant
Descriptor energy

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Current Marketing Program and Strategy

Product Strategy
The idea for Red Bull drink came from KratingDaeng, a non-carbonated energy drink from
Thailand. Red Bull drink contained similar ingredients but added a few more to suit the western
taste and also became carbonated. Red Bull 's product mix can be elaborated as follows: Red Bull
energy drink contains caffeine, taurine, B vitamins, sucrose and glucose, mainly used by working
holidaymakers, sportspeople or even young people who want to party in the evening. As there is a
common trend in the younger segment, a sugar - free variant called Red Bull SugarFree containing
aspartame and acesulfame K instead of sucrose and glucose has been developed. The drink is
available in a large blue silver can with two red bulls on the front, while KratingDaeng is a short
can of gold. Both products are manufactured differently and are available in various countries, and
red bull is a much more popular energy drink.

Communication Strategy

Red Bull has participated in a variety of marketing programs, including traditional TV, print and
radio advertising events for sports and entertainment, sampling and promotion. The majority of
the marketing activities of Red Bull were aimed at encouraging product testing.

Marketing program contributes to the brand equity by the following way-

Advertising

Their techniques of advertising are " Red Bull vitalizes body and mind" and " Red Bull gives you
wiiings." The Red Bull animated ads were adopted uniformly on the global market of the company.

Sampling

Product testing was an important part of Red Bull marketing. Red Bull sampling campaigns took
place in concerts, parties, festivals, sporting events, on the beach, in the relaxation areas (for tried

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drivers) and in the campus library. In addition to sampling, student managers investigate trends in
drinking, designed on campus marketing initiatives and wrote stories for student journals.

Event Marketing

Red Bull had an extensive network of events with which it participated. When Red Bull created
the event, all aspects of the event, including the name, logo, promotion and media production,
were controlled. The events held by the Classic Red Bull included the Red Bull Soapbox Race and
the Red Bull Flying Day.

Sports Marketing

Red Bull generally sponsored separate athletes. Red Bull is primarily engaged in sports marketing
to create credibility among policymakers involved in action sports such as surfing, snowboarding,
skydiving, skateboarding, rock climbing, mountain biking and many other non - mainstream
athletic activities. Red Bull has become an international brand and can sign leading and influential
athletes.

Point –of-Purchase Marketing

The main point of purchase of Red Bull was the refrigerated sales unit of the brand. These
refrigerators distinguish the brand from other drinks and ensured that Red Bull was a prominent
place in the retail industry. Red Bull has hired delivery van drivers with Red Bull 's sole
responsibility. Red Bull restricted the use of the storage facility of posters, shelf speakers and
ceiling hangers.

Pricing Strategy
Red Bull has a number of competitors in the industry of energy drinks, but they are still market
leaders. The pricing strategy is therefore that of a market leader, but based on the pricing of
competitors. They can easily charge a premium for their products at the top and even customers
buy it for their quality. Red Bull was the first in its category, so it will always be the number one
customer choice and its demand will never diminish. People prefer to buy Red Bull in bulk because
it's cheaper than to buy a can. Compared to competitors such as Rockstar, Tzinga, Cloud 9,
Gatorade, Monster and KS, they are the most expensive energy drink.

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Distribution Strategy
The company Red Bull distributes selectively through distribution strategies. The process appears
at favourite locations on site and gives the brand greater attention and visibility in these regions. It
is also great that we deal with individual shops and retailers in the cells that Red Bull distributes,
rather than with large chains, to reduce costs and time significantly. Red Bull has some channels
of distribution through blades, clubs, bars, discotheques and pubs. The number of such circuits,
however, is limited in the company's attempt to attract attention and, of course, to avoid damage
to the premium image (Red Bull 2013). We recommend certification or licensing of more
distribution channels compared to what we have now, especially in the new area of expansion,
where many people do not have any knowledge of our product. Red Bull should add several
channels and outlets in order to increase the brand exposure and make the product available and
easily accessible.

SWOT analysis of Red Bull

SWOT analysis is a strategic planning method used to assess the strengths, weaknesses,
opportunities and threats of a project or company. It involves specifying the goal of the company
or project and identifying internal and external factors that are favorable and unfavorable to this
goal. In the strategic planning model, a SWOT analysis can be incorporated. Strategic planning
has been investigated extensively.

The Red Bull’s SWOT analysis is described below:

Strengths Weaknesses

• Strong, brand identity, fresh, fashionable. • Red Bull ® may have lost its " edge, "
• Ingredients " hazardous " add " edge. " because most governments now accept it as "
• Recognizing consumers by sponsoring safe. "
extreme sports and events. • Red Bull 's lack of patent means anyone can
•Consumers without description make infinite copy it.
markets.

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 •High price revenue is set to 10 percent higher • Red Bull ® can reduce marketing
than normal soft drink due to the added value opportunities by having to sell Toro Rosso due
of the drink function. to the F1 rules.
• Minimum investment from shareholders due
to huge turnover.
•29 percent selling world market share in 70
countries.
•Red Bull ® GmbH is worth 10.9 billion euros.
•4 billion cans sell annually worldwide.

Strengths
Market leadership– Within the energy drinks market, Red Bull is the industry leader worldwide in
marketing efforts– many promotions and well- targeted campaigns and sponsorship, e.g. Formula
1 helps to increase the awareness of the Red Bull brand and the consumer brand.

Weaknesses
Lack of innovation- there are many competitors on the market and they have their own USP. Small
product base- Only one branded product, Red Bull Energy Drink (in addition to a sugar- free
variety), is sold by the company.

Opportunities Threats

•New carpe diem products, Red Bull ® simple •Consumers buy other " illegal " energy drinks
cola shots and Red Bull ® energy shots. that contain more taurine and caffeine.
• Developing markets like Asia and Africa. • •Red Bull ®, accepted as " safe, " can lose its
Recognizing consumers by sponsoring " edge "
extreme sports and events. •Modifying Red Bull 's biggest market buying
•New ventures such as Red Bull ® Mobile, habits (18 - 24)
Facebook partnerships, Fijian resort and theme •Market share reduction due to competition
park. from the other 228 energy drinks.
•Energy drinks increase consumption by more • The market for organic energy drinks may
than one third by 2011. steal Red Bull consumers.

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Opportunities
Product line extension–this will help to retain market share expansion.

Threats
Health concerns-stricter government rules on high concentrations of caffeine. Consumer
awareness of health and well - being can begin to drink more water because it is linked to a
healthier lifestyle. “Opportunities " should be understood in the SWOT model as external factors
that create opportunities for companies.” Extending the product line “is a possible strategic move
to be used in response to an opportunity, for example. One example of Red Bull’s opportunity
might be that the recession forces its competitors to shut down. In response, Red Bull could expand
its product range to cover large parts of the market.

Consistency among different products/services sharing a brand name

There is a consistency among different products that share the brand name Red Bull as all of them
are energy drinks. The difference among them is on the basis of sugar, calories and flavour.

Consistency among brand elements

The brand portfolio shows the logo is same on all the products, however the colour of the logo and
the can changes as per the variant. The tag line “gives you wings” does not go in sync with what
the logo signifies, i.e. strength and power.

Consistency in marketing activities, brand extensions, and sub-brands

There is an overall consistency amongst the marketing activities and brand extensions. Red Bull
endorses sports activities; sponsors sport events, cultural events and also promote sports persons.
The energy drink endorsement is correctly done by these marketing activities.

Redundancies, overlaps, and consumer confusion

There is no redundancy or overlap in the product portfolio of Red Bull. All the products differ
from each other on the basis of sugar content, calories and flavors.

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 CHAPTER 3: BRAND EXPLORATORY

Brand Knowledge

Sources of Brand Equity

Over the past 26 years, Red Bull has developed and maintained significant brand equity. Laying
the foundation for brand value comes from consumer experiences, feelings and beliefs, as well as
perceptions and images. Red Bull continues to effectively apply Keller's brand equity concept
(CBBE). CBBE involves "understanding the needs and desires of consumers and organizations
and designing products and programs to satisfy them is at the heart of successful marketing." A
number of brand elements and benefits, combined with global brand awareness, recognition and
positive brand image, have strongly influenced the brand's capital building.

Brand Elements

Not only has the global empire evolved over the years, but the Red Bull formula has been
enhanced to include energizing ingredients such as caffeine, B vitamins, sucrose and glucose,
taurine, and Alpine spring water. Red Bull presents its patented formula in a "250 ml silver and
slender blue box". The packaging, the colours and the logo have also remained the same since
1987. The Red Bull logo is an oriental theme consisting of two red bulls threatened by collision
with the sun and is recognizable to consumers around the world. Figure 1 below illustrates the
current packaging of Red Bull Energy Drink. Together, the brand elements create a unique brand
partnership between Red Bull and its consumers, which helps support brand equity.

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 Figure1. Current Red Bull Packaging

Red Bull recognizes the need for sustained energy throughout the day, be it for athletes who
perform in extreme sports, for a professional trying to spend a busy day at the office, for a
roadside homework driver. Red Bull products satisfy consumers with benefits such as increased
physical stamina, boosted metabolism, improved feeling of well-being, improved reaction time
and concentration, and increased mental alertness. In other words, "Red Bull energizes the body
and the mind". As far as product prices are concerned, Red Bull has always pursued a premium
pricing strategy. The price of the product is higher than that of its competitors. Consumers are
willing to spend more on Red Bull drinks because they have product brand associations and are
sensitive to its benefits.

Continuing Brand Equity

Despite the market or the country, sources of brand equity do not change. Since 1987, Mateschitz
has meticulously applied the same marketing message and marketing strategy as Red Bull and its
products. In 1995, Red Bull entered the UK market and failed to sell its products at the
beginning. The main reason for its late success is that the company has not used its traditional
word-of-mouth strategy. Over time, Red Bull was able to recover by making the necessary
changes to its marketing plans. In 2001, the United Kingdom was the "second largest market in

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volume and volume of sales". Since the strategic marketing mistakes of the UK, the company has
not left its marketing strategy. Spreading a consistent brand message across markets and
countries has been critical to maintaining the Red Bull brand's capital sources.

Marketing

The marketing program greatly contributes to the strong value of the Red Bull brand. "When
your brand equity is strong, your customers will buy more from you, they will recommend you to
others, they will be more loyal and you will be less likely to lose them to their competitors."
Without the aggressive marketing of its products, Red Bull consumers would probably not be as
loyal to their brand as they have been over the years. Their buying behaviour would have been
greatly reduced and the value of the brand would not be as strong as today.

Brand Awareness

Red Bull is known for its participation and sponsorship in sports and extreme events that help
build brand awareness; therefore, establish CBBE with its consumers and non-consumers.
"Customer-based brand equity occurs when the customer has a high level of brand awareness
and knowledge and keeps strong, supportive and unique brand associations in mind." Brand
awareness is one of the brand's value drivers that Red Bull has been effectively delivering for
more than two decades. Through repeated exposure, Red Bull familiarized the brand with the
world, setting the tone for multiple sources of brand equity. "All that drives consumers to
discover one of the elements of a brand - its name, symbol, logo, character, packaging or slogan,
including advertising and promotion, sponsorship marketing and events, advertising and public
relations and outdoor advertising - can increase the familiarity and notoriety of this brand
element. "

In 2012, Red Bull caught the world's attention with Red Bull Stratos, which could be "the most
successful marketing campaign of all time". Felix Baumgartner, an Austrian defender and
paratrooper, "became the first to cross the sound barrier, with a free fall to 128,000 feet above
the Earth, reaching a speed of 833.9 miles per hour". Red Bull was the official sponsor of

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Stratos, also widely recognized as the "jump in space", and has managed to generate
international brand awareness through marketing and social media. "According to ABC News,
besides YouTube, the jump has been demonstrated by more than 40 TV channels and 130 digital
jacks. Baumgartner's photo after the jump on Facebook attracted nearly 216,000 likes, 10,000
comments and more than 29,000 shares in 40 minutes, and half of the global news stories on
Twitter were linked to Red Bull Stratos ". Figure 2 below shows the Red Bull Stratos Facebook
page, which shares the story of the infamous space jump with audiences from around the world.

Figure 2. Red Bull Stratos Facebook Page

Not only did Red Bull help build awareness with Stratos, "the company is known for its youth-
focused buzz-based marketing, including extreme sports events such as the Red Bull Air Race,
owned by sports teams. including Red Bull International football. teams and a Red Bull Records
label "

Brand Recognition

Since the launch of Red Bull, a number of competitors, including Monster, Rockstar and Full
Throttle, have entered the market. Despite the saturation of energy drink offerings, Red Bull has
effectively designed the ability of consumers to remember and recognize the Red Bull brand.
When consumers are looking for an energy drink, their exposure to the brand through various

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marketing efforts has greatly affected their ability to remember the brand. Throughout its history,
Red Bull has remained faithful to its original marketing strategy: "television advertising, print
and traditional radio, event marketing in sports and entertainment, sampling and promotion at
points of sale". A large majority of the world's population can recognize the brand's original
slogan, "Red Bull gives ideas that come from" Red Bull Flüüügel verleiht. "In addition, the non-
traditional use of cartoons in advertising by Red Bull has also influenced brand recognition
Figures 3 and 4 are excellent examples of Red Bull's traditional marketing strategies.

Figure 3 Figure 4

Red Bull Gives You Wiiings Cartoon Red Bull's RB7 launch event in Valencia
Commercial

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Brand Image

The image of a brand can greatly affect the positive or negative associations or perceptions of the
brand. "To create a positive brand, you need marketing programs that combine strong, supportive
and unique brand associations in memory. Brand associations can be either brand attributes or
benefits. " Red Bull is a respectable business example with a strong brand image that stands out
from its competitors. Consumers not only appreciate the benefits of the product, they also associate
the positive attributes of the brand.

Brand Positioning

Source- http://powermonsterbull.blogspot.com/2013/12/anatomy-of-red-bull-and-monster.html

Points of Parity & Points of Difference

While points of parity remain a few with other competitor brands such as Monster or Burn-

 Energy Drink
 Sports
 Youth oriented

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There are Points of differences as well-

 Extreme Sports
 Emotional Appeal (gives you wings)
 Large target and huge awareness
 Market Leaders

Quantitative Analysis of Brand Knowledge

To measure the brand knowledge of the brand Red Bull, we carried out a short survey of 29
respondents. The respondents were from different demographic groups. It included both users and
non-users of the brand. The results of the survey are used for analysis.

Brand Awareness

Brand awareness refers to the extent to which customers can remember or recognize a brand. The
consumer's ability to recognize or retain a brand is essential for making purchasing decisions.
For Red Bull, we asked the following questions to measure recall and brand recognition.

100% respondents were aware of the brand, hence showing the huge brand awareness level that
the company enjoys.

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Brand Recall

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or
service class.

72% respondents recalled Red Bull when asked about energy drinks. This shows the top of the
head recall power of the brand.

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BRAND RESONANCE PYRAMID

BRAND SALIENCE

This is the depth and breadth of brand awareness. Here, the presence of Red Bull is clearly
associated with the blue and white box containing energy drinks. When you ask people to talk
about this brand in particular, they will first talk about the drink and immediately the slogan that
is also well known to the public. The idea here is that Red Bull is really associated with the idea
of "drinking energy and power": "If I drink Red Bull, I will stay awake longer and / or my
intellectual and physical abilities will be increased ". In addition, the logo is well recognizable
and representative of the name of the brand, people will quickly make the link between these two
red bulls who fight and our brand. Finally, in a second step, the consumer idea is the brand image
of non-compliance and extreme sports. Indeed, Red Bull has built a strong imagination around its
product through ownership and event management. This particular environment is also well
received by the public.

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PERFORMANCE

The main performance associated with Red Bull is the supply of energy and that is precisely why
people consume its products. The second part of Red Bull's performance is that it is a "new"
brand on the French market, but it has become a "classic" brand in the minds of consumers with
a truly distinctive logo. and a famous slogan. In addition, Red Bull is the number one energy
drink in the world, but with a very small product range: Red Bull has created the energy drinks
market and now holds about 70% of its market share in the world. But if Red Bull has fewer
products than in other brands, it's important to note that the brand can rely on an elegant design
for its cans that is more recognizable than others because of its colors. Moreover, her ability to
create a "Red Bull World" around such a simple can has created a respect for this brand that she
has gone from a young company to a huge multinational in quite a short time. As a leader, Red
Bull also adopts a higher price strategy: it is the most expensive brand in the market for less
drinks in a can, but for Red Bull, "Quality is more important than quality. " and it works!

BRAND IMAGERY

One of the most striking points of Red Bull is that you can consume this drink in many
circumstances: you simply fall asleep or stay awake longer. If in the beginning, Red Bull was
largely associated with young audiences, the brand is becoming a product that can help all types
of people in their daily lives: people tired on the road, people wanting to work late, people
sleeping at work and want to improve their intellectual performance, people who play sports and
then want to improve their physical performance, players who want to play all night or clubbers
who like to mix Red Bull with alcohol or who just want to have energy boost before going to
party. Overall, Red Bull is associated with entertainment and entertainment, as well as work and
fatigue.

JUDGEMENT

According to its consumers, Red Bull is the number one energy drink in the world. This place
can be explained by an image of superiority over its competitors, but also by a good reputation
and a brand identity. Indeed, if Red Bull is so powerful, it's also because the brand is everywhere
consumers look at it and always with a "quirky" spirit. In addition, if Red Bull is the number one,

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even being the most expensive energy drink on the market, it is also because consumers perceive
a superior quality of its products.

CONSUMER FEELINGS

In the imagination of consumers, Red Bull is considered a fun brand, because young and
dynamic. He is also perceived as energetic and young: drinking Red Bull makes you feel better,
you have more energy and power and you can even feel younger. Thanks to its big events, Red
Bull has also shown its unconventional identity, doing something that no other brand has ever
tried or dared to do. By drinking Red Bull, you finally feel free to do what you want: as the latest
advertisement says, "the only limit is the one you set for yourself"!

RESONANCE

By first creating an informal and then an official Red Bull community, the brand has been able to
retain its consumers and attachments. Indeed, more than an energy drink, Red Bull has become a
real media followed by several million fans. Upon entering this community, a true fan will no
longer consume any other energy drink. Red Bull is now much more than a drink: it's a real "way
of life" for its consumers!

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Brand Identity Prism

Fig: Kapferer Brand Identity Prism

Relationship:
Physique:
Sports and music events
Logo: 2 red fighting bulls
Sponsoring of athletes
Can: Red, blue and silver
Personal success
Reflection:
Go for your dreams
Try hard and take risks
Gives you wings
Everything is possible
Live your dreams

Personality Culture:
:Sporty Extreme Self Image:
Successful Live beyond boundaries Daring
Innovative Sports Adventourous
Creative Music and creativity Passionate
Ambitious Self fulfilment

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 Chapter 4: Brand Recommendations & Suggestions

Branding Strategies

1. Brand Architecture, Brand Hierarchy, Brand Portfolio

Brand Architecture or Brand Hierarchy denotes a way in which companies set up their brand
in relation to their different products, teams of brands, endorsed and sub-brands and the various
relationships between all of these.

There are 3 levels of Branding;

1. Corporate Branding

This type of branding is used by organizations that portray to the world as a strong corporate brand
that ensures the same messages and the values of the company are apparent in everything they do.

This kind of branding ensures that new brands launched from the same company are accepted
instantaneously as sharing certain core values and the brand image with the rest of the brands of
the company.

2. Endorsed and Sub Brands

The corporate brand is included in creating endorsed and sub-brands are brands which are newly
launched. However, these new brands also stand on their own, having their own individuality.

3. Individual Product Branding

These are brands that stand on their own, have their own brand image and have no connections
with the parent brand.

Red Bull Brand Architecture follows Corporate Branding.

Brand Portfolio includes all the brands offered by a single company or an organization for sale,
which cater to the needs of different groups of consumers

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Red Bull Brand Portfolio currently consists of 4 products:

1. Red Bull Energy Drink

2. Red Bull Sugarfree
3. Red Bull Zero Calories
4. Red Bull Editions which consists of Cranberry, Lime, Blueberry & Tropical Fruits.

Recommendations

Our recommendation is that the company keeps on following the Corporate Branding strategy for
all its current and future products. This is because the brand Red Bull rates highly on Brand
Recognition and Brand Awareness.

2. Brand Knowledge, Brand Positioning, Brand Elements

Brand Knowledge is combination of Brand Awareness and Brand Image. While awareness refers
to whether the consumers know the brand, image refers what associations consumers have with
the brand.

Philip Kotler defines Brand Positioning as “an act of designing the company’s offering and image
to occupy a distinct place in the mind of the target market.”

Brand Elements are those tangible and sometimes intangible elements used to express or
represent and identify or differentiate the brand from its competitors.

The brand name, logo, slogan, packaging material, color, style, etc. are all examples of Brand
Elements. For Brand Elements to be desirable they have the following characteristics;

a. Meaningful
b. Memorable
c. Protectable
d. Adaptable
e. Transferable

As mentioned earlier Red Bull rates high on Brand Awareness and Brand Recognition quotient. In
case of brand elements, the brand is both meaningful and memorable, mostly due to its marketing
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strategies and efforts. It can also be easily adaptable and transferrable in case of new launches and
could be clearly seen in the launch of its “Red Bull Editions”.

Source:https://www.prnewswire.com/news-releases/red-bull-gives-you-wings-with-two-new-sugarfree-editions-
300398482.html

The above article states the success of the new launches of its Sugarfree Editions.

As far Brand Positioning is concerned, Red Bull’s positioning strategy is based of its image and
product differentiation. It has been consistently sending the message that “Red bull vitalizes body
and mind”. It has been successful in building a brand image of cool and trendy drink for its target
consumers who lead a busy and active lifestyle. Hence, it has been able to communicate the benefit
of the product leading to a product differentiation as a premium product with premium pricing.

Recommendations

Our recommendation for the brand would be to continue its marketing efforts to further build up
as well maintain the brand image it has created in the minds of its consumers. Also, the current
brand elements, especially its logo and its slogan, “Red bull vitalizes body and mind” should not
be tampered with.

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 I. Brand Extension Strategies & Reinforcement/Revitalisation Strategies

Brand Reinforcement refers to the efforts of the brand in maintaining the Brand Equity by
keeping the brand alive amongst the current and potential customers.

Brand Extension is when the established brand name is utilized to promote new products or
product categories.

Brand Revitalization is the marketing strategy which is adopted by companies when their product
or products reach the maturity stage of product life cycle which results in profits falling drastically.

Even though Red Bull primarily deals with energy drinks it also sells merchandize. These products
help to retain the brand image and help to increase brand awareness and brand loyalty. However,
it merchandizes are not as popular with as its drinks.

It also sponsors many athletes and different sports, most famously F1 racing.

Recommendations

The brand should reinforce its current image in al its future products. Empirical evidence suggests
that Red Bull reinforces its brand image and brand identity, which is the biggest factor to its Brand
Equity with all its products launches.

In case of Brand Extension strategies, our recommendation would be to continue launching new
variants and different editions of its products every few years. This will ensure that the consumers
are treated with variety and will help to maximize brand awareness.

The company currently doesn’t need any revitalization in our opinion.

II. Brand Marketing Program

Red Bull’s current marketing program focuses on the following aspects;

1. Advertising
2. Sampling
3. Event Marketing
4. Sports Marketing &
5. Point of Purchase Marketing

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Recommendations

Out of the above, advertising and sports marketing are the biggest contributors to Red Bull sales.
Hence, we recommend that the brand should focus adequate resources towards advertising and
sports marketing.

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 Chapter V: Conclusion

The brand audit that we conducted on Red Bull gave us many important insights on how the
company maintains and promote its brand. Red Bull currently is one of the top energy drinks, both
globally and in India. It owes it success primarily due to the brand image it has successfully created
in the minds of its consumers. The marketing efforts of the company are always focused on its
benefits which are clearly stated in its slogan, “Red bull vitalizes body and mind”. The advertising
campaign “Red Bull gives you wings” helped the company reinforce its image in the minds of the
consumer and will help earn more new consumers in the future. The company has the right
associations in respect of its core identities by sponsoring athletes and sports like F1 racing. We
believe that if the company continues its current marketing efforts along with our
recommendations it would continue to remain one of the top players in the energy drink market.

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Appendix 1

Questionnaire

1. When you think about energy drinks what is the BRAND NAME that comes
FIRST to your mind? *

2. How often do you purchase energy drinks? *

 once a week
 once in two weeks
 once a month
 once in 6 months

3. Which all of the following have you consumed? *

Monster
Redbull
Gluconade
Lucozade
Blue Jans
Vitamin Water
Xtra power
Other

4. For what activities would you use energy drinks? *

Exercising
Quench thirst
Leisure consumption

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 Studying
Other:

5. BRAND is a strong factor in my purchase decision making? *

 Yes
 No

6. Flavour variety is important to me? *

 Yes
 No

7. Athletic endorsement encourages my purchase decision? *

 Yes
 No

8. Appearance or packaging influence my purchase decision? *

 Yes
 No

9. Are you familiar with the brand RED BULL? *

 Yes
 No

10.Should RED BULL introduce new variants? *

 Yes
 No

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11.Overall you rating about the brand and would you recommend brand to the
friend? *
 Very Poor
 Poor
 Neutral
 Good
 Excellent

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References

 https://www.burstcreative.com.au/graphic-design/brand-elements/
 https://energydrink.redbull.com/
 https://redburnmonsters.wordpress.com/2013/10/12/red-bull-brand-image-the-cbbe-
pyramid/
 https://inkbotdesign.com/brand-architecture/
 https://www.feedough.com/positioning/
 https://www.coursehero.com/file/p78uvo/The-positioning-strategy-used-by-Red-bull-is-
mainly-based-on-its-image-and/
 https://research-methodology.net/red-bull-segmentation-targeting-positioning/
 https://www.investopedia.com/articles/investing/022315/energy-drinks-industry.asp
 https://energydrink-in.redbull.com/the-company
 https://energydrink.redbull.com/red-bull-editions
 https://redburnmonsters.wordpress.com/2013/10/28/what-is-red-bull-brand-portfolio/
 https://www.prophet.com/2013/05/140-red-bull/
 https://prezi.com/sepfg3sgkcpn/red-bull-brand-audit/
 https://www.academia.edu/3696452/Assignment_on_A_case_study_of_Red_Bull_Comp
any
 https://www.mbaskool.com/marketing-mix/products/16734-red-bull.html

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