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Direct Competitors

V The massive

hit that improves you a bit

V Energy Drink is produced by Frucor Beverages Ltd and was released in the Australian Market in 1997. It has a 42% market share in Australia making it the most popular energy drink brand in the country. V is positioned as the social energy drink, which campaigned mates hanging out together, and making their everyday awesome. Their most recent media strategy involved launching a bricks and mortar rental company that delivered this promise. V used a combination of TV, Cinema, Print, Outdoor, Web, Mobile, Facebook, YouTube, the Trade Press and Blogs. Now V have launched yet another campaign “the massive hit that improves you a bit.,” reiterating that social positioning ,with new content set to release over the coming months.

Mother

Mother of all energy hits

Coca-Cola Amatil introduced Mother to the Australian market in late 2006. It has just 14% market share trailing behind both Red Bull and V. While trailing overall, CCA's relationship as a major supplier to the dominant supermarket chains appears to have helped it punch above its weight in the grocery channel, with Mother being the biggest-selling energy drink at Woolworths and capturing a 27% share of the total grocery channel -- almost double its share of the overall energy drink market. Mother's distinguishing feature, however, is its size -- selling in a 500ml can when its competitors deliver around half that volume for the same price. Mother energy drink’s most recent campaign extending through March and April of this year focuses on a new morning occasion beverage to help Aussies “conquer the day.” Marketing channels used include a new TVC, cinema, radio, mobile, digital, large scale disruptive out-of-home creative including bus shelters and train station cross tracks, in-store point of sale executions, sampling activity and PR.

Monster

Unleash the beast

Monster energy drink originated from the US and was launched in April 2002. It only has a small percentage of the market share in Australia but due to its large popularity in the US the company should not be underestimated. Their main media strategy involves the sponsoring of events including sports events and concert tours. Monster is… A lifestyle in a can.

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Recommendations to resolve Brand Managment Issues

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Recommendations to resolve Brand Managment Issues

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Recommendation 1: To resolve the in store point of purchase issue Red Bull should discard all alternative products excluding the sugar free alternative ,because there is high demand for sugar free drink products and they are very valuable to the brand. By removing the clutter from the store shelves would create a point of difference as other brands will not have as larger in store presence. The uniform brand image projected in store will increase the likely. The package and logo presented in store should have memorability, meaningfulness, likability,   transferability, adaptability, and protect-ability to ensure this strategy is successful in increasing brand awareness, positive brand associations and building brand equity and value.

Recommendation 2: To successfully remove itself from negative health associations Red Bull should employ a form of avoidance strategy or acceptance strategy. an avoidance strategy would involve creating a campaign that foreshadows and covers up the issue, such as reducing price or launching a campaign that celebrates the energy benefits of Red Bull. An acceptance strategy would involve a campaign which states the health problems and then indicates a way in which they are improving, such as reducing sugar or artificial sweetener content or switching to a vitamin energy source and stimulant such as vitamin B12 and B6 instead of caffeine. Both of these strategies could reduce the impact of negative health associations on improve brand image as the developed products are now more appealing to the health conscious.

Recommendation 3: To separate itself from the competition Red Bull should employ a marketing strategy that would appeal to there target market. Social media is a large part of most of the target markets media usage and people are likely to share content that they find interesting and unique.

As social media is well penetrated in the target demographic and plays a key role in influencing and motivating social trends social media initiatives should be a focal point for Red Bulls future campaigns. Red Bull should release a Social media competition aimed at increasing brand awareness within the target market as well as an interest in extreme sports.  This could be achieved through developing a smartphone app and/or website that enables users

to connect automatically with their social media accounts, and respond with posts and updates onto their respected social media accounts (with their permission of course).The competition will have two categories: The first category will require users to log in with their social media accounts (facebook, twitter, instagram etc) and post a picture of themselves in their most extreme location possible while drinking a Red Bull.

The second category will require users to again log in with their social media accounts (facebook, twitter, instagram etc) and post a video of them explaining how the power of Red Bull has helped them achieve something extreme. Each category will come with a grand prize of a trip for two to any Red Bull event anywhere in the world within the next year, elected by the winner. There will also be runner up prize-packs and individual promo gear such as free Red Bull, clothing, hats, bags, posters/signage etc

This strategy would be a good way to improve brand awareness with an increased social media presence and an increase positive associations. consumers will now associate Red Bull with social fun memories and prizes which could potentially build on brand image and brand equity.

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Red Bull’s primary target market is young urban males and females ranging from 18-30 years of age. These individuals live in a world surrounded with constantly exciting, adventurous and exerting day-to-day activities. Such individuals are labelled as “living life on the edge,” with many of the targeted audience frequenting the gym or performing physical activity several times a week as well as participating in competitive and extreme sports, together with adventurous and recreational activities. Red Bull not only targets “The athletes” of the world, with a large percentage of clients being individuals who work full-time jobs in a heavily stressful environment, enhancing the need for an energy kick throughout the day. A fairly new category that has been introduced in recent years is ‘the clubber’, as individuals have found that Red Bull can be used as a sufficient mixer with alcohol.

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Challenges and Issues in Brand Management: Issue 3

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Challenges and Issues in Brand Management: Issue 3

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Issue 3:

Red Bull exists in a highly competitive market with a saturation of energy drink alternatives means a large number of competitors. Although Red Bull is currently the global market leader it has the second highest market share in Australia as indicated above. The brand is threatened by a multitude of direct competitors such as other energy drinks and more indirect competitors such as soft drinks

or sports drinks. New brands are constantly entering the market that offer larger sizes and more health conscious ingredients. From a brand managers perspective red bull although it might be at the top of its game needs to consider how it will separate itself from the competition to increase its brand awareness, brand associations and build brand equity. As shown in the perceptual map red bull has positioned itself above its competitors in terms of price and popularity, but V and other smaller competitors (represented by the rockstar logo) are psoitions not to far below. This indicates that Red Bull has a higher brand value but it must continue marketing efforts to increase the gap with its direct and indirect competitors

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http://www.cspnet.com/sites/default/files/magazine-files/F1_CSP_0212.pdf

http://www.euromonitor.com/sports-and-energy-drinks-in-australia/report

http://www.campaignbrief.com/2014/02/frucors-v-energy-introduces-th.html

http://energydrink-au.redbull.com/red-bull-owner

http://www.mintinnovation.com/links/docs/Marketing/Red%20Bull%20Success%20story.pdf

http://en.wikipedia.org/wiki/Mother_(energy_drink)

http://www.campaignbrief.com/2014/03/mother-energy-drink-launches-n.html

http://www.theaustralian.com.au/business/popular-energy-drinks-have-the-majors-buzzing/story-e6frg8zx-1225985880656

http://mattfollows.com/V-Energy-Drink
http://en.wikipedia.org/wiki/V_(drink)#Advertising
http://www.redbull.com/au/en
http://www.creativeguerrillamarketing.com/viral-marketing/red-bull-masterminds-of-new-age-marketing/
http://www.dailymail.co.uk/news/article-2212680/Red-Bull-gives-wings-Super-sized-energy-drink-.html

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Challenges and Issues in Brand Management: Issue 1

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Challenges and Issues in Brand Management: Issue 1

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Issue 1: Red Bull is releasing new variations of their energy drink product with different packaging colouring and flavour. This is damaging brand image as it reduces the brands in store presence and shelf saturation. Consumers may have different associations with the alternative packaging and flavours. It can be extremely beneficial to have a uniform brand image and appearance in store. When a consumer walks into store they are much more likely to notice a sea of blue and silver red bull cans compared to a jumble and array of colours and products on . This is vital because at the point in purchase increases in store presence. By doing this they are diluting their brand image and loosing some points of Difference a. From research conducted by Red Bull in the corner stores across the united states found that 79% of energy drink buyers specifically planned to purchase and energy drink before entering the store.It also stated that 71% of energy drink buyers had a specific brand in mind before entering the store. This means there is only a 8% increase when the consumer had a intended brand. Therefore, consumers are making there choice instore andnstore presence and promotion is the most influential factor.

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Challenges and Issues in Brand Management: Issue 2

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Challenges and Issues in Brand Management: Issue 2

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Issue 2: Red Bull and the energy drink product category in general have  negative public perception and product associations. Many believe that energy drinks are detrimental to health as they have excessive amounts of sugars, stimulants and potentially dangerous chemicals. This damages the brand image and although it might increase awareness of the product as people discuss its detrimental health effects they are spreading the brand name consumers will visualise red bull as a poisonous product who's negatives outweigh its benefits. This is the current perception of the product category and if Red Bull wishes to improve its brand associations it must separate itself from these negative associations.

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The Red Bull product range consists of seven different varieties and flavours. The original Red Bull, Red bull Sugar free, Red Bull zero calories, Red Bull Red Edition, Red Bull Blue edition, Red Bull Silver Edition and Red Bull Cola. Red Bull has released these new alternatives in an attempt to gain new consumers with different tasts and preferences and to create a brand association of diversity.

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Red Bull GmbH is an Austrian( is this important to the brand image) company that produces the world-renowned Red Bull energy drink. The company was established in 1984, and has since been established as the world leader in the energy drink market segment. Today Red Bull is available in more than 166 countries world wide and around 40 billion cans of Red Bull have been consumed so far. While Red Bull remains the market leader, the company is facing growing competition from other players that pose a significant threat to Red Bull’s market share. Key competitors within the Australian market include ‘V,’ which is produced by Frucor Beverages, and Mother, which is produced by CocaCola. To remain competitive, it is essential that Red Bull build on their brand awareness and brand associations to promote customer loyal and continue to grow their marketshare within the Australian energy drink sector and build brand equity.