EMBA 15 ZG – Team 3

Strategic Marketing, Prof. Nicolas Kfuri Formatted: English (United Kingdom)

FINAL EXAM ASSIGNMENT

TEAM 3
1. Drago Romić
2. Mario Jarnjak
3. Branko Banjeglav
4. Damir Srdanović
5. Drago Cmuk
6. Libor Weiser

QUESTION #1:
(3 pages, 60 points)
How many elements of the GSTIC framework can you identify in the case? List
them and explain.

GSTICK Framework

Formatted: Centered
Formatted: English (United Kingdom)

Formatted: English (United Kingdom)

Note sure that Focus and Benchmarks (benchmarks clear) are stated in the case.

GOALS
The Red Bull company’s goal is to become premium world supplier of energy drinks
through creating the mystique around “GIVING WINGS TO PEOPLE” as well as ideas. Formatted: English (United Kingdom)
Formatted: English (United Kingdom)
Formatted: English (United Kingdom)

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FOCUS
Red Bull focused on getting the word out through various stealth marketing techniques,
playing on associations with energy, danger and youth culture, carefully cultivating its
mystique.

BENCHMARKS
Energy drink market did not exist before Red Bull. Red Bull has created the market, it is
brand leader and others are compared with Red Bull. They primary benchmark is keeping
the leading position in the market: keeping revenue and market share stable/increasing
while .increasing brand value and recognition as well as profit.

STRATEGY

Market Structure
Red Bull had a monopoly before onslaught of new competitors, and before a copycats
from large companies. But Red Bull was able to hold all most monopoly market structure
with position of market leader.
Red Bull operates on the branded market he has created himself!

Target Customers
Generation Y-ers. Clubbers. Athletes. Students. Sports companions. Visitors to sports
events. People wanting adventures. Subculture associated with urban music and DJs.
Those in need of energy.

Value Proposition
Value that Red Bull brings to customers (Products Benefits):
1. Physical: Improves concentration,.
2. Improves physical endurance and reaction speed..
3. Improves overall feeling of well-being, r.
4. Revitalizes mind and body and .
sStimulates metabolism.

Psychical: brings up emotions of excitement, party, adrenaline,

attention, controversy,. Self-identification with cool lifestyles and anti-brand
philosophy/identity.

TACTICS

Creating Value / Product + Price

Premium price strategy. Greater than most expensive competitors. Best of class price
positioning. Perceived exclusivity, Core Value = Red Bull isn’t a drink, but a way of life.

Communication Value / Promotions

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Sampling is a key element of Red Bull’s marketing strategy.

Cartoon with dialogue about product benefits. AdvertismentAdvertisement directly form
from the positioning statement. “Red Bull VitalisesVitalizes Body and Mind” – Red Bull
gives you wings.
Unique events attractsUnique events attract media coverage.
Athlete endorsement, in sports that have no competitions.
Student brand managers - hired to promote the product on campus and parties,. P picked
among trendsetters.

Red Bull relied on a strategy world of month or “buzz” marketing. Playing on associations
with energy, danger and youth culture.
In 2004 Red Bull bought Formula 1 team to broaden the reach of its message
Mystique important to the brand identity.

Delivering Value / Placement

64% in bars, clubs and petrol stations.
Petrol stations,
sSki resorts
, Mmarkets
sShops near universities and gyms.
Placing – identifying all the relevant places that help building their image: even drinking
cans on DJ’s desk, empty cans in clubs & bars etc.
Their goal is to be aAvailable at sports, competitions, cars, after parties and similar events
…
Tby targeting places where people needs or wants energy boosts…. . The invest a lot at
being present Located at all the relevant concerts, parties, festivals – even creating their
own.,
Red Bull – Branded vehicle with a giant Red Bull can mounted on the back, handing out
free cans. for free.

Placement with moto: “We don’t bring the product to the people, we bring people to the
product,” They adopted an approach that doesn’t look like a typical sales pitch.

IMPLEMENTATION

People
Approach to key individuals, e.g. DJs in popular bars, bar tenders, trendsetters
Small distributors, sales reps, deliveryman
Well known contemporary artist such as TreceyEmin, Wayne Hemmingway…
Consumer education teams in cars.
Student brand managers.

Processes
Sponsorship of extreme sports events.

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Development of its own sports events, such as: biking, extreme snowboarding, freeskiing
….Red Bull Flugtag.

Red Bull created brand experiences as the Red Bull Creative contest…

Word of Mouth – seeding program, targeting in bars, clubs.

Creating the buzz. Consistently cultivating brand mystique (rumours, boycotts,
controversial deaths)

Physical Evidence

They provided key individuals (DJs, trendsetters) with Red Bull as branded promotional
items to enhance the brand visibility. They are not just visually present, whole events
occur under their name and sponsorship. They push
Ssampling programs, e. Event sponsorship, a. Athlete endorsementr,
Ppainted vVans etc.,

Point of purchase – always at prominent locations conducted by carefully chosen chains

and individuals. Branded refrigeratrefrigeratorsed .Painted Vans, visuals etc. They even
take care of being present through

Setting empty cans at pubs, tables, bars and in containers.

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QUESTION #2:
(2 pages, 40 points)
Apply the Brand Ladder Pyramid to the Brand RedBull, identifying, Core Values,
Emotional Benefits, Functional Benefits, and Attributes.

Brand Ladder

The Core Value

, or main contribution / delivering of Red Bull is that:
“Red Bull isn’t a drink, it’s a way of life.”
It’s way of life, dangerous, on-the-edge, they push adrenaline-fueled activities which
identify them as “doing what they preach”.

Emotional Benefit

Emotional Benefit describe how it product make customers feel.

With Red Bull customers feels: extreme way of life, energy, danger and youth culture.
Customers feels very powerful – “Red Bull gives you wings”. Taking part in the mystique,
the story they preach, gives their customers satisfaction of belonging to exclusive
community of people “with wings”.

Functional Benefit

Functional benefits describe what customers gets from product (brand)?

In case of Red Bull it is very clear that product:
- stimulates metabolism;
- improves physical endurance;
- improves concentration and mental state;
- improves overall feeling.
- Improves reaction speed
Ability to extend one’s abilities in demanding situations keeps the brand value high.

Attributes describes what are unique product futures and characteristic of product.

No drink in the world is so strongly functionally positioned like Red Bull. With so clear
associationassociation on specific functionality (physical endurance), specific emotion
(energy, challenge,

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danger) and mystique which create a story where targeted people feel happy to fall into.
People don’t buy what we sell, they buy the “why” – the story behind.

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