Pages 5 (1255 words)
Red Bull energy drink is present in more than 120 countries globally; it has built its brand image as a “functional energy” beverage, which is neither a recreational drink on the one hand, nor a medicinal drink on the other.
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 – “[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 production 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. ...