Red Bull Case Study

In: Business and Management

Submitted By jojo13
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Red Bull Case Study
July 13, 2012

Red Bull was credited with creating the energy drinks category and is a market leader in USA and European markets where is present. Essential to Red Bull’s success was the use of word-of-mouth marketing and the fact that they were seeking to break the traditional rules of marketing by reaching consumers in innovative ways. Red Bull are using pull marketing extensively. This approach involves getting consumers excited about the product and conveying this excitement to their family and friends. It is also about trying to get coverage of their events in the press. This coverage can encourage consumers to find out more about the product. It helps to generate momentum, through creating interesting stories for people to talk about, which in turn help to create brand awareness and grow sales. The company also uses consumer education teams that go around and talk to people one-to-one about the product, handing out free cans of Red Bull. This helps to create consumer interest in the product. As people experience the drink and appreciate its qualities, they become advocates for the brand. They share their opinions with other consumers when they talk with friends. The promotion therefore creates a domino effect.
Through its sponsorship of extreme sports events, it developed a movement among marketing-wary targeted age group of 18 to 29 years old, who perceived it as an anti-brand. By playing on associations with danger, energy and extreme adventure-related sports, such as motor sports, mountain biking, and snowboarding, Red Bull carefully cultivated its mystique, a framework of ideas and beliefs constructed around their energy drink, and the target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can'.
Sponsorship is essentially a friendship between the company and leaders in…...

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