Red Bull

2926 Words Apr 3rd, 2009 12 Pages
Running Head: Red Bull
Red Bull: Building Brand Equity in New Ways!
Three Questions on Pearson Case Study 4.

George Ray
Redmond Review 1. Describe Red Bull’s Sources of Brand Equity. Do they change depending on market or country?
According to Keller (2008, p 53), brand equity is the strong, favorable and unique brand associations in the memory of customers. He goes on to define (p 54) two sources of brand equity: 1.) Brand Awareness; and 2.) Brand Image. Red Bull has well defined tactics for both sources.
1.1 The Brand Awareness Source for Red Bull Brand Equity
Keller (p 54) notes two elements to Brand Awareness: 1.) Recognition; and 2.) Recall. He postulates that if buy decisions are made at the point of purchase,
…show more content…
These are both energy enhancing and detoxifying. This is confirmed by pharmaceutical studies. The formula for the drink has been patented by a Thai Pharmaceutical company.
Uniqueness is the third major factor for building brand image. According to Pearson Case Study 4 (pp 71-2), Red Bull created a new food category, Functional Food that enabled it to have the unique ability to make any performance claims about a food. The study notes (p 81) that this act enabled Red Bull to “establish the brand’s prominence on its own terms.” This gave it a unique message to communicate to its users, and a significant barrier to entry for competitors. It now enables Red Bull to establish in consumers the belief that its characteristics are prototypical for all members of this category, because today there are competitors. Keller (p 59) notes that this is positive for brand image.
1.3 Do the brand equity sources depend on country or market?
Keller notes (p 59) that brand association may be, but is not necessarily, situation or context dependent. He goes on to say that “An association may be valued in one situation and not another.” The evidence indicates that a change in strategy based on geographical or cultural context is counterproductive for Red Bull. This implies that the sources of brand equity are not geographically dependent.
The main risk in changing a marketing message based on context is losing message consistency,

More about Red Bull

Open Document