red bull case study

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Kate Nichols Hannah Razay Alastair Mcbain Crissy Hawkins Case Study 14.1 – Building the Buzz with Red Bull

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Red Bull Case Study

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  • 1. Kate Nichols Hannah Razay Alastair Mcbain Crissy Hawkins Case Study 14.1 Building the Buzz with Red Bull
  • 2. Q1: How has Red Bull been able to arouse and activate the consumer decision-making process? Red Bull have been exceptionally successful with their brand positioning A key factor is how Red Bull arouses and activates the consumer decision-making process Consumer decision-making - need recognition - pre-purchase search - evaluation of alternatives - purchase and - post-purchase behaviour.
  • 3. Problem/need recognition: Red Bull position themselves towards their consumers through offering a solution to being tired or lacking energy Pre-purchase search: name and logo emblazoned on multiple sporting teams throughout the world, sponsored events, a music label and their sheer art of storytelling in their marketing campaigns
  • 4. Evaluation of alternatives: Greatest market power than any other functional energy drink producer in the world Purchase and post-purchase behaviour: Red Bulls marketing aims to reach all areas of the globe to give the best possibility for reaching new customers and retaining old customers.
  • 5. Q2: Why has Red Bull been able to be successful in entering the evoked set of consumers? Ongoing public relations campaign name printed on nearly every extreme/action sport around the world Red Bull has been able to portray itself as more than just a product, but as a lifestyle Buzz-marketing strategy
  • 6. Red Bull has shunned print advertising in its marketing strategy Expanded into 50 countries, experienced annual double-digit growth, and captured the loyalty of a notoriously fickle consumer group: teenagers Strong brand personality and strategic use of global social media, sponsorship and event ownership
  • 7. Q3: What could influence a consumer to stop purchasing Red Bull? Reference groups Normative Comparative Contractual A consumers purchasing of Red Bull would be most affected by contractual reference groups which are groups that consumers have direct contact with such as a group of friends.
  • 8. Some groups have a negative effect if the consumer started to associate Red Bull with a certain group of people who they did not want to be like then they might stop purchasing the drink. Ageing target market means consumers are moving onto more mature beverages. Cognitive dissonance Regret decision to buy Red Bull over a healthier option This might influence them to change their behaviour to match their beliefs
  • 9. Q4: From a consumer decision-making perspective, how has Red Bull been successful in maintaining brand loyalty in the energy drink market? Consumer decision-making perspective suggests that consumers buy products and services to solve a problem or satisfy a need or a want. It can be assumed that they are trying to fulfil the basic need of thirst, as well as maintaining and enhancing energy levels.
  • 10. Because Red Bull is a low impact purchase the advertising does not have to contain a lot of factual information Red Bull has maintained brand loyalty through their repeated mass media advertising on television Dominant brand in the energy drink market because they were the original energy drink
  • 11. Red Bull is a long established brand with a large market share and strong brand loyalty from consumers Biased habitual behaviour that solves two very basic needs: thirst and energy levels Trust is very important for brand loyalty
  • 12. References Batra, R., P. Lenk, M. Wedel. 2010. Brand Extension Strategy Planning: Empirical Estimation of Brand Category Personality Fit and Atypicality. Journal of Marketing Research. 47(2) 335-347. Schiffman, L., OCass, A., Paladino, A. & Carslon, J., 2014, Consumer Behaviour, 6th edition, Pearson Publishing. Mowen, J 1988,Beyond Consumer Decision Making, Journal of Consumer marketing, vol. 5, no. 1, pp. 15-25, viewed 5 September 2014, Quester, P & Pettigrew S 2011,Postpurchase processes, customer satisfaction and consumer loyalty, in Mc Graw Hill (ed), Consumer Behaviour- Implication for Marketing Strategy, North Ryde, NSW, pp. 204-205.