Free Essay Sample. Managing the Product

Has the product been modified or repositioned to serve customers better? Did the company try to get different customers by repositioning the campaign or modification of the product?

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The Red Bull energy drink has been repositioned and modified through the replacement of the word energy with simulation on the can, resulting in the creation of a new category (Plan, 2018). The repositioning of the product was done by positioning the product to the market by replacing the traditional strategy involving word-of-mouth with selling the product in the largest convenient outlets and supermarkets. The company changed its repositioning complaint and modified the trait in its brand personality to attract new customers who visit the supermarkets and convenience outlets.

Does the product have a brand personality? Describe it

The product has a brand personality that contains traits such as courage, activity, audacity, energy, outgoing, and unpredictability in the way it connects its products with customers (Brasel & Gips, 2011). The Red Bull company utilizes the brand personality to promote its products as customers care about being connected with the company drinks.

How has the product established brand equity? How?

The Red Bull Energy Drink created its brand equity to become part of functional beverages and a substitute for caffeinated drinks. The brand was built and tested for the first time in 1984, then launched in 1987 to the market (Malan, 2017). Brand equity was in the mind of Dietrich Mateschitz, the founder of Red Bull when he first launched it. In brand equity, he incorporated positioning, brand design, packaging, price, and attributes. The product has a premium pricing strategy and uses of a creative tagline in its positioning. The unique and powerful sources of the Red Bull energy drink have remained strong in various countries and markets.

Describe your product's branding as well as any packaging issues that help/hinder their marketing

The marketing strategy of Red Bull energy drink is helped by outstanding packaging and product branding design. The drink is packaged in a sole 250 milliliter blue and silver can (Brown, 2013). The can contains the Red Bull Insignia and a catchphrase that shows the exclusivity of the product to the consumer. The two bulls in the product signify the might and vigor that the product grants its consumers, and the phrase that identifies its brand recapitulates the exact product and what it does to the consumers. Also, the casing design and logo establish a matchless brand connection, and it maintains the product's brand equity and connects with potential customers.

Pricing Strategies

How is the product priced compared to the competition?

The price of the Red Bull energy drink is higher compared to its competitors like the Monster. The product remains a leader in the market through its less quantity and higher price, which are fixed in the market, making competitors act as followers. The Monster drink is the major competitor to Red Bull, and in comparing their prices, the price of Red Bull is about twice the price of Monster. For example, a 12-pack of 16 ounces is equivalent to nearly twice many Monster drinks.

What type of pricing policy did the product use; odd-even pricing, target pricing, penetration pricing, prestige pricing, standard markup pricing, etc?

The pricing of the Red Bull energy drink is premium. The pricing of the product is set above that o the competitors, and its consumers will have to pay a premium for the product because of its quality and benefits. The pricing policy of the Red Bull energy drink is reflected in the fact that currently, the product is the best-selling energy drink in the world. The product is priced and will continue to be priced using the premium pricing strategy.

What are the points of differentiation in the product or points of difference? How have these points of difference impacted the price of the product compared to its competition?

The point of difference in the Red Bull energy drink is its packaging, product experience, and quality. Consumers consider the drink the first of its kind, and its differentiation has made it the market leader in energy drinks as it is tailored to reach the targeted customers through its unique marketing strategy, which is different from that of its competitors. The image of the product is built through the unique marketing strategy carried by the company through sponsoring sports, which, as a result, enhances its power and promotes the product's public image.

The difference, especially in the quality and product experience, has affected the price a lot as it resulted in using of a premium pricing strategy, which is higher than that of its competitors. Still, Red Bull customers are willing to pay such a price.

References

Brasel, S. A., & Gips, J. (2011). Red Bull "Gives You Wings" for Better or Worse: A double-edged impact of brand exposure on consumer performance. Journal of Consumer Psychology, 21(1), 57-64. https://doi.org/10.1016/j.jcps.2010.09.008

Brown, K. (2013). Selling Energy: An Analysis of Red Bull's Marketing Strategies. How They Could Impact the Largest Swiss Watch Company, Swatch Group, 4. https://www.uvic.ca/gustavson/assets/docs/Research/student-research-engagement/COM-470-Best-Business-Research-Papers-Vol7.pdf#page=4

Malan, S. (2017). The fuel behind the Red Bull brand. https://sineadsbrand.wordpress.com/2017/11/26/the-role-of-differentiation-and-positioning-in-building-the-red-bull-brand/

Plan, A. (2018). Red Bull Company Marketing Strategies Report. Red, 0. https://bohatala.com/red-bull-company-marketing-strategies-report/