RED BULL Assignment Example | Topics and Well Written Essays - 1250 words

RED BULL - Assignment Example personnel casualty crap is the first of its kindhearted in the global foodstuff, and carved out for itself a new category that did not exist before. This bank bill and the elements that built it are the sources of post comeliness. Brand equity is defined as the added value that is endowed on economic goods as a result of commemorateing (Bick, 2009 Farhana, 2012 Mzungu, et al., 2010 Znaidi & Fidha, 2012). it is The several(predicate)iation effect of fool companionship on customer response leading to long-term outlook, customer knowledge, trade name name, brand power, product debut, brand quality, brand extensions, brand credentials, brand advertising, brand publicity and above all, effective brand management. (Arora, et al., 2009, p. 75) 2. Case issues 2.1. naming of Red tinkers dams sources of brand equity The most important issue is the identification of Red Bulls sources of brand equity, because they drive the products value creation. If the firm is to move turnout forward into the next higher level and avoid obsolescence, it must innovate along the line of its brand equity to ensure that what has been achieved has not been diminished. 2.2. Determination of new products under the Red Bull brand The innovation necessary to preserve brand equity and create value must emanate from the source of brand equity having identified this in the first issue, the secondary issue is to put this knowledge into practice by choosing among alternative products that add further value. 3. Analysis of the Case The case treats on the entry of the Red Bull brand into new product categories, and the impact of this move on brand equity. These aspects are the gist of the terce questions the answers to which follow 3.1 Description of Red Bulls sources of brand equity Aakers sources of brand equity consist of 10 items spread over five dimensions, namely brand inscription, perceived quality/leadership, associations/differentiations, awaren ess, and market behaviour (Gill & Dawra, 2010). These are all present in Red Bull. One element of brand loyalty is premium pricing Red Bull is well received because its high price was seen to be justify by its added benefits above other drinks. Perceived quality and leadership are partnered with differentiation Red Bull was marketed as the first capacity drink, and thereafter leader of its class. The fourth dimension, brand awareness, was evident in German and Hungarian markets where, solely through word of mouth, mystique about the brand spread (including reference to bulls testicles as ingredient) much(prenominal) that the product was well anticipated and demand created long before its introduction. The fifth dimension, market behaviour, was positive in countries such as Austria where the product was first introduced, and the positive response worked to create brand equity in new markets Red Bull subsequently entered. 3.2 How Red Bulls merchandising program contributes to brand equity The elements of the marketing mix employed by Red Bull all contributed to a different experience in the mind of the consumer, which was important in creating product recall and influencing future choice (Korkofingas & Ang, 2011). The marketing mix includes the 4 Ps, namely product, pricing, placement, and positioning. 3.2.1 Product The first of a new class of beverage, the energy drink, which competitors first dismissed as a fad and then later on imitated. In Austria, the confederacy needed to lobby for the creation of a new category, functional food, because the product did not fit into both of the established categories. The taste, which was adjusted to approximate the traditional cola, nevertheless retained a hint of medicinal spirit that still distinguished it as a functional beverage. 3.2.2 Packaging