Question

Red Bull consistently apply integrated marketing communications approaches in their promotion to build the equity of the brand, recommend any brand extension strategy for Red Bull in order to improve the market share.

Answer 1

Answer :-

Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category. Brand managers use this as a strategy to increase and leverage brand equity. Product extensions, on the other hand, are versions of the same parent product that serve a segment of the target market and increase the variety of an offering.

Extensions to brands may be planned as proactive strategic activity or triggered by customer behaviours. Customer needs and preferences may change, and brands need to move their value propositions to reflect these changes.

Some considerations prior to extending a brand would include the following:

1. Decide what resources you need to implement the extension or revision.

2. Work out how you will deal with failure and how you will prepare others for failure.

* Methods of brand extension strategy include the following :-

Brand name or design change

Price changes

Renewed features such as distinctive change like taste, ingredients, components

Associations such as changing product companions, brand family or multi-branded relationships.

Some tips on brand success strategy

Measure Brand Equity
One of the biggest concerns when implementing brand extensions is the risk of causing brand dilution, that is, when the new product category fails and presents a negative impact on the brand as a whole.

Measure the potential risks
Run a scenario analysis to identify the positive or negative effects on the business and brand equity. The goal is to implement a brand extension whose risk of failure does not exceed any marketing efficiencies.

Leverage from business core competency
The new product should leverage all the skills and know-how from the current business and marketing operations in order to gain a competitive advantage in the new category.

Invest in Marketing Research
In the eagerness to grow the business, brands forget about making sure the new category has market potential, that there are clear opportunities or unmet customer needs.

Make the brand extension a logical fit
The new product must be a logical fit to the brand, compatible, expected and follow the current brand story. The link between the new product and the parent brand should be easily tracked.

Create a Brand Extension Strategy

All of strategies can b followed by redbull in order to improve the market share.