(1) Brand Image: What people think of when thinking about a brand.
Google has a fun, playful brand image. Microsoft has a more business like brand image.
(2) Consumer Good: Anything bought by normal people–not businesses–for example food and clothing.
Companies that sell consumer goods often purchase television advertising.
(3) Sponsor: A company or person that supports something.
McDonalds sponsors the Olympics because they want to change their brand image.
1. What is shocking about Red Bull’s website?
a. It doesn’t focus on their product.
b. They have no advertising.
c. It makes you think of adventure.
2. Why doesn’t Red Bull just sponsor someone else’s sport?
a. It costs too much.
b. No other events are about adventure.
c. They want to control their message.
3. How does Red Bull get free advertising?
a. They create cool events.
b. They sponsor football teams.
c. No other company is very good.
By Jeremy Schaar
In today’s lesson, let’s check out an innovative company: Red Bull. You know, Red Bull, right? It’s the world’s most famous energy drink. Their slogan is “Red Bull Gives You Wings”. It means that the drink will give you energy.
Last week, I talked about Marketing Mix. That’s Product, Price, Place, and Promotion. We discussed how for makers of smartphones, they need to do more than make a great product. This is of course true for all companies. But for consumer goods, it’s even more important. I don’t think Red Bull is the only company that can make a tasty drink with lots of caffeine and sugar. They sell billions of cans because they’re amazing at promotions.
So, how does Red Bull succeed? First, it’s about brand image. When you think of Red Bull, what do you think of? If Red Bull is doing it’s job well, you think of adventure and excitement. These things are connected to energy. So when people want to buy an energy drink, they’ll choose Red Bull.
The second reason Red Bull succeeds is because their events are so cool that a lot of people talk about them in the news. This is all free advertising. Do you remember when Red Bull sponsored a man to jump from space? It was awesome. Red Bull is so successful that many people can’t even name another energy drink. The noise around Red Bull is so big that nothing else can enter the market.
I think it’s especially interesting to visit Red Bull’s website. Go there and you might be shocked to discover that the only advertisement for their product is a small box on the right. The website looks like the site of an extreme sports company. Red Bull just looks like the sponsor.
Many companies sponsor sports teams, events, and athletes. But Red Bull, instead of paying to sponsor a team, created new events and athletes. It’s brilliant. They don’t have to pay to be a sponsor and they have greater control of their message. Instead of sponsoring a sport that doesn’t exactly match their needs, Red Bull created the events that work best for their brand. It’s genius.