Red Bull: Are You Ready for the Ride?

2688 Words Dec 25th, 2010 11 Pages
The Anti-Brand Brand
The image of Red Bull is open to interpretation. It is synonymous to a “bull in china shop” – it is not subtle and you are likely to break something, however, you will look cool doing it and become part of a sub-culture bordering on anti-establishment. This is the key to the “BUZZ” – there are no rules. Who doesn’t have a rebel inside wanting to get out, who wants to fly, jump, ski or escape from the mundane? Red Bull developed a safe way of escape through association: energy, danger and youth.
Brand Equity is the added value given to products and services – reflecting how consumers think, feel and act towards a brand (Kotler et al 2009). Red Bull sells “cool” as added value to their hyped-up liquid. They sell a life
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However, what is most important is that this attitude goes all the way through to their very being, in so much as Red Bull believe in making a difference.
Potential Risks and Challenges To The ‘Red Bull’ Brand
Red Bull’s successful brand building process has led the company to enjoy a well established presence in the market. To maintain and further develop the brand, Red Bull needs to formulate a coherent growth strategy. However, there are potential risks and challenges that need to be considered.
Red Bull was being sold in over 100 markets and was the market leader in the USA as well as in 12 of the 13 West European markets where it was present (Zenith International, 2004). Red Bull dominated the energy drinks market in most of the Western Europe countries in 2002, with 83% of market share while the rest of top 20 brands had a combined share of 17% (Economist online, 2002). However, Red Bull needs to be aware of declining industry sales because volume growth for energy drinks had slowed in one of its core market, Western Europe, down from 44% in 2000 to 6.5% in 2003 (Zenith International, 2004). The slow market growth in Western Europe can affect Red Bull’s total sales growth. Red Bull needs to develop a brand growth strategy to protect its market share in the declining Western

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