Topic
Brand Equity Development (Red Bull GmbH)
Instructions
You have been asked to read and analyse the case study Red Bull and complete an individual case analysis report. You are expected to demonstrate theoretical understanding of important aspects of branding and your ability to apply marketing theory to the analysis of a real-world company. You need to focus on the key branding issues and answer the assigned questions. You must incorporate academic literature to support/justify your ideas. Unsubstantiated statements will not provide credibility to your discussion. Your report should include:
- Executive Summary.
- Identification and analysis of the relevant issues and concepts relating to the case
- Use of relevant branding theories.
- A logical analysis, which is consistent with the topic in the case and it advances evidence in favour of the arguments.
- Your answers to the discussion questions (Please see below)
- Development of managerial recommendations and identification of marketing decisions illustrated by the case.
- References Questions for discussion:
- Describe Red Bull’s sources of brand equity;
- Analyse Red Bull’s marketing program in terms of how it contributes to the brand’s equity
- Evaluate Red Bull’s move into herbal teas, fast-food and magazines. Does it make sense for the company to expand into these areas? What are the potential benefits and dangers?
Answer preview
Brand equity is considered the value held by a brand in a marketplace (Pullig, 2008). Companies that build strong brand equity develop capability and success in charging services or products relatively higher than the current market price, while having their stock price revamped. Brand equity creates a long-term conviction to consumers that a company’s product or services are ultimately satisfying and sufficient to meet their wants and needs. Red Bull GmbH, a company renowned for selling one of the greatest energy drinks in the world, has built and relied on strong brand equity for decades since Dietrich Mateschitz founded the company in Austria in 1985. Red Bull has built-on marketing uniqueness, which in turn has resulted to extensive expansion of its market share and consumer base into global markets.
Word count: 1809