Red Bull Case Study
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Please provide Case Study Analysis on the following Red Bull Company:
What created Red Bull's success? Where is the core franchise and benefit? Has the product's positioning changed over time? What is the role of alcohol mixing to Red Bull's success?
What is Red Bull's success formula? For which kind of product/beverage categories will this formula work? How does Red Bull know when to turn on the advertising? What metrics would you use to make this judgment?
Why did the first U.K. launch go awry?
What changes were made for the U.S. market? Should other changes be considered?
Assume tough competition is coming. How can Red Bull protect its franchise? What actions would you recommend?
What should Red Bull's competitors do? Coke? Pepsi? Anheuser-Busch?
If you were an investor in Red Bull, would you take your money and run or stay for the long haul? Browse the Red Bull Web site (www.redbull.com) and view the English versions of the Red Bull commercials provided on the Web site to give you some perspective.
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Solution Summary
Red Bull is discussed step-by-step in this solution. The response also has the sources used.
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Step 1
Red Bull's success is attributed to its energy giving potential. The core franchise is that a person will feel energized after drinking Red Bull. The benefits are that the person feels that she has wings after drinking Red Bull. The positioning of Red Bull has changed over the period of time. It was positioned as the drink that gave you wings when it was first launched. However, over a period of time, the positioning is now more of a sports drink. If a person needs a drink that gives her energy, the name Red Bull appears in her perception. The mixing of vodka with Red Bull has helped increase the sales of Red Bull but this increase in sales has a low impact on Red Bull's overall success.
Step 2
The success formula of Red Bull is based on communicating images that support its positioning. The image that Red Bull makes every man a superman, handing out branded freebies at extreme events, and subtle branding have ...
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