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

RED BULL - Assignment Example Red Bull is the first of its kind in the global market, and carved out for itself a new category that did not exist before. This distinction and the elements that built it are the sources of brand equity. Brand equity is defined as the added value that is endowed on economic goods as a result of branding (Bick, 2009; Farhana, 2012; M’zungu, et al., 2010; Znaidi & Fidha, 2012). it is – â€Å"[The] differentiation effect of brand knowledge on customer response leading to long-term outlook, customer knowledge, brand name, brand power, product innovation, 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. Identification of Red Bull’s sources of brand equity The most important issue is the identification of Red Bull’s sources of brand equity, because they drive the product’s value creation. If the firm is to move product ion 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 three questions the answers to which follow: 3.1 Description of Red Bull’s sources of brand equity – Aaker’s sources of brand equity consist of 10 items spread over five dimensions, namely brand loyalty, perceived quality/leadership, associations/differentiations, awareness, a nd 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 justified by its added benefits above other drinks. Perceived quality and leadership are partnered with differentiation; Red Bull was marketed as the first energy 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 â€Å"bulls’ testicles† as ingredient) such 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 Bull’s marketing program contributes t o 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 P’s, 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 company needed to lobby for the creation of a new category, â€Å"functional food,† because the product did not fit into any of the established categories. The taste, which was adjusted to approximate the traditional cola, nevertheless retained a hint of â€Å"medicinal† flavour that still distinguished it as a functional beverage. 3.2.2 Packaging –

Chartered Portfolio Manager- Week 9 Discussion Post and Student Assignment - 1

Chartered Portfolio Manager- Week 9 Discussion Post and Student Responses - Assignment Example Following the Second World War, it was clear that oil was a coveted industrial commodity. The most celebrated and visible event in history took place when the United States president, Franklin Roosevelt met the founding monarch of Saudi Arabia. The meeting between the two world leaders linked American national security and Middle East oil. It also gave birth to one of the most significant strategic relationship that was forged in the 20th century with Saudis meant to supply cheap oil to the world markets with an aim of acquiring American protection. Over the course of the 20th century, preserving the security of Saudi Arabia as well as that of other countries such as Iraq were among the main political and economic concerns of countries such as the united states of America (Bouillon, 2013). The presence of oil in the Middle East countries and the struggle to control the commodity was fraught with peril and always proved costly in terms of treasure and blood. Oil has continued to flow into the global markets even though with a lot of difficulties emanating both internally and externally. Since the end of the 1970s, most of the countries in the Middle East including Iraq have experienced permanent war and revolution as a result of the commodity. In Iraq for example under the regime of Saddam Hussein, was rocked by domestic war that resulted to loss of lives. Even though security is measured by absence of war, most of the countries in the Middle East have encountered threats of domestic and international war as a result of supply of oil. The United States led inversion of Iraq in the year 2003 and the conflicts experienced in most of the countries in the region have represented both the international and domestic politics affecting the region. The American military invasion of the country represented only a stage of the US militarism in the Middle East. While more considerable