Perceived values and points of differentiation

At this level, I found that it would be relevant to establish a list of values to which people associate each of our 2 brands. Therefore, I realized a survey. Here are some interesting results, when it comes to comparing some key attributes:

-       Extreme sports

 

Powerade

Red Bull

People make automatic associations with Red Bull. It is a core characteristic of the brand. As for Powerade, people seem a bit lost, maybe because of a lack of awareness.

-       Innovation

 

Powerade

Red Bull

In terms of innovation, the perception of Red Bull and Powerade is patchy. For Powerade, it may refer in customer minds to the product's healthy benefits, whereas it could mean brand image for Red Bull.

-       Party VS Danger 

 

Powerade

Red Bull

Waterade

Red Bull

Why choosing these 2 opposite characteristics? Because Red Bull is clearly perceived as party-oriented and dangerous. Obviously, the brand is still associated with hard-partying and binge-drinking. It suffers a bad reputation from scientific studies about Red Bull consumption impacting health. It is not the case for Powerade, which is better perceived.

-       Surpassing yourself and Exploit

Waterade

Red Bull

Waterade

Red Bull

It is commonly admitted that both brands help people perform better. Surprizingly, when talking about Exploit, Red Bull is more recognized. Actually, the healthy part is clearly obliviated. People use Red Bull to stay awake and vivacious as long as possible. The sports meaning of Exploit is less obvious when it comes to compare drinks that provide energy to consumers.

-       Fun

Waterade

Red Bull

Red Bull clearly wins.

 

To resume...

Red Bull: Strong image, Well-known attributes, Party, Fun, Idealistic, ”Dream bigger”...and couldnt-give-a-damn attitude!

Powerade: Elitist, Serious, Rigorous, Healthy, “Listen to your body”...and act responsibly!

Pierre

Red Bull, Powerade and surpassing your limits

When looking at Powerade website, it seems obvious that the brand wants to deeply connect with athletes who are its core customers. The goal is to create a powerful brand experience as the “ultimate sports drink”.

Contrary to Red Bull, which focuses on practitioners, but also amateurs of extreme sports, Powerade clearly shows that it targets a healthy and athletic elite who practices running, football, fitness, tennis and mountain bike.

The choice of these sports is really interesting, because they are all very popular in France. We all know the Football World Cup, Rolland Garros and Le Tour de France. All of these sports imply teamwork (either a team of players or with trainers and sports staff).

Besides, running and fitness are two sports that are very popular in urban areas. They are easy to practice, by yourself and a minimum of material is required.  These 2 activities combine perfectly with the nutritional and energetic inputs provided by Powerade drinks. In this regard, the website also provides useful information and advice for sportspeople. It is less festive and more serious than Red Bull. And it actually positions Powerade as a coach that will add value to the sports experience. A coach is someone that helps you better understand your body and motivates you go beyond your limits in order to get results.

As Red Bull did with the Stratos operation, each of the two brands aim at showing that people can surpass themselves to achieve fantastic goals, by their own or as part of a team.

Pierre

Red Bull and customer acceptance

Let's have a look at the CBBE pyramid of Red Bull...

The salience of Red Bull is the energy drinks, the products.
 

The imaginary of Red Bull is extreme sports. They sponsor lots of extreme sports events in order to root in the customers mind  that they are associated with. And do not forget the bull itself, which is present as a symbol of fierce energy and strenght.
 

The main performance claimed by Red Bull is providing energy. The Red Bull drinks are full of cafeine, taurine and so on, in order to allow their drinkers accomplish exploits or stay awaked all night long.
 

The feelings that this brand evokes for the customers are fun, freedom and excitement with the large participation to extreme sports events. The fun feeling is conveyed by their ads or commercial for the consumers. It is also important to say that, among customers, some of them are aware of the part of danger that represents over-consumption. But it is not a deal-breaker.
 

The affective reactions of the consumers thinking about Red Bull convey a feeling of superiority. Red Bull helps you to surpass yourself with the promotion of extreme experiences. Indeed, in term of spontaneous notoriety they are top mind, their communication is the best one among other energy-drink brands.
 

Finally the resonance of Red Bull is composed by loyalty, attachment and engagement. As we said in a previous article Red Bull has a strong brand community and people are really fan of this brand.

Red Bull is definitely a lovemark and perfectly personnify the concept of "love beyond reason".

Source : http://www.marksherrington.com/downloads/Brand%20Planning%20eArticle.pdf
 

Louise

Compared strategies - SWOT analysis

This article will be dedicated to Powerade and Red Bull SWOT analysis. SWOT stands for Strenghs, Weaknesses, Opportunities and Threats. We've tried to highlight the main factors, though readers should see this diagnostic non as a guiding strategy but just a tool for generating strategic options.

 Amanda & Louise

Powerade gets social !

Powerade has very strong presence on different social media platforms. Mainly they use social media sites like Instagram, Facebook and Twitter for promoting their campaigns and products. We all knows that these social media sites are the next feat for corporations to figure out. Before emergence of social media there was only two media sources were available for brand to promote themselves among the audience or consumers. But after the emergence of social media, brand have strong presence among all kind of people through different social media platforms. The trick is to package the campaign correctly-from custom company hashtags to refraining from them. Powerade has just recently launched its cross-social campaign with the hashtag #powerthrough. See how they executed their plan; the good, the bad and the head scratchers.

Powerade social stats:

Facebook: 451,334 likes | 13,961 PTAT (people talking about this, indicates virality)

Twitter: 42, 304 followers | 3,870 following

Instagram: 376 followers | 2 following | 13 photos (or just memes I should say)

Youtube: 264 subscribers | 1 video with 92,951 views (video below)

Nowadays social media is playing an important role in conversion of audience into their consumer. “We know you’re out there making it happen. Show us what you’re focused on this season. Power Through campaign also linked to twitter feed that list all uses of the hashtag in chronological order. Powerade Post their contents in a way that should attract the audience toward their brand products, events etc. Each channel has fresh, different yet also related content so that you’re not boring users and actually giving the social media savvy fans a reason to connect with you across all accounts. Meaning, they’re not uploading the same media to Twitter, Facebook and Instagram. For March Madness, Powerade offered all of their fans pre-made ‘media kits’ where they could easily download cover photos representing the Arizona Wildcats, Iowa State etc. Getting social is becoming ever-important for conversions, brand awareness and simply showing the un-corporate side of a company. Powerade has realized that this free marketing way isn’t going anywhere, and they dedicated an entire ‘Social Channel’ tab that’s prominently placed on their homepage’s main navigation. Immediately, this obvious placement shows that social is an integral part of their business model. After navigating to the page, you will have all the information that how you can be engaged with the brand, this page is perfect to succinctly communicate WHY they’re launching this campaign to consumers. It illustrates how Powerade really cares how their product is reviewed and used.

 

Sources:

- Digital organics, Bruce Gibson

Ashutosh

Red Bull’s Winning Social Media Strategy

As we all knows that social media is playing an important role for all brands who are present on these channels by engaging the users in finding relevant information about their brand , products etc. Beside all they are also posting, pictures, videos, information about the events, promotions and all other useful contents of their brand. Red Bull is more concentrating on social media platforms to make their presence in their consumers. They use their social media strategy to let people know their events and their products. What makes a brand stand out is how it transforms an audience into a community. Red bull’s having unique contents that reflect that what it is as a media company and it only focus toward its core message.

They have huge presence of fans and followers on different social media platforms. With more than 26.8 million “Likes” Red Bull’s Facebook Page ranks in the top 50 branded pages on the world’s largest social network. Red Bull stays true to its tagline, “Gives You Wings” across all of the social platforms it uses. In fact they have a Twitter hashtag for “Gives You Wings”. It turns out it’s something the brand is seeing used by consumers on Facebook, although it may have little value on the platform. Red Bull believes in posting contents which bring back the attention of internet users or we can say social media users. They have their own media company which fuel its content strategy and thier social media team always engaged in posting new content which they feel is valuable for company. The Red Bull Media House is the centre of the global Red Bull media network across all relevant media channels and products whether its online or offline.

Ashutosh

Red Bull : BtoB expansion strategy

Red Bull company has launched in March 2013, as a part of its global expansion strategy, a new solution for its BtoB customers concerning order management process, which was at the time, based on in-house solution.

In order to make easier quick orders from its global retailers and distributors, Red bull has implemented a B2B order management platform. This project was managed by Hybris solution software, and enable retailers and distributors from 79 countries above 165, to have access to the platform and get an personalized and purchasing experience which is more flexible, quick, efficient according to the brand's representant.

This new solution is also about offering the possibility for large regions to act as a salespoint for smaller neighbour territory.

Red Bull is planning to use this platform for long-term BtoB, as well as BtoC projects.

Sources:

- http://www.actionco.fr/Breves/Red-Bull-facilite-commandes-ses-distributeurs-55240.htm
- http://www.brandingstrategyinsider.com/2013/10/creating-a-meaningfully-different-brand.html/brand-strategy-red-bull#.Up-E7OLl5lM

Amanda

Red Bull, trendsetter and dream-maker

Every year, Red Bull takes part to almost 500 spectacular events in the world, regarding sports records or any kind of thrill. The brand owns football clubs, Formula 1 racing stables and sponsors many other sports.

A remarkable fact is that Red Bull also invented new sports. For instance, Red Bull Crashed Ice is a world tour in the winter extreme sporting event, that involves downhill skating in an urban environment. It is similar to ski cross and snowboard cross, except with ince skates on an ice track, instead of skis or snowboards on a snow track.(*)

 

By making the choice of attributing a significant part of its profit to organizing such events, Red Bull’s communication is able to create its own content and doesn’t need additional advertising.

To remain at the top of the entertainment, the project Red Bull Stratos succeeded in pushing back the limits of what is possible. 

A man, Felix Baumgartner.

A goal: to jump from the stratosphere, at the limits of space (36,000km from the ground).

Extreme conditions of temperature, pressure.

And that is what happened on the 14th of October, 2012.

And this is the  same jump a year after, filmed with the GoPro technology. Or how to make this record trendy...and even more breath-taking!

Red Bull succeeded in creating that amazing event from A to Z. In terms of marketing, the brand also innovated. The emotional impact, the physical and mental achievement…but also the implications for science!

Because, for this event, Red Bull positioned itself not only as an entertaining energy drink company but also as a scientific pioneer. The brand communicated a lot on the scientific dimension of the project, involving professional scientists.

This success would not have happened for another brand. Actually, Red Bull historically conveys values of endurance and surpassing oneself for customers. Since Felix Baumgartner jumped, it actually shows that the brand believes in human self-transcendence, in the ability of mankind to push back its own limits to become better.

For Red Bull Stratos, Red Bull made the choice of committing for years and engaging millions of dollars in the project. It is the core of Red Bull DNA: to dream big and push back the limits to reach your goals.

Pierre

(*) Wikipedia definition: http://en.wikipedia.org/wiki/Crashed_Ice

Sources:

-       D. Bigman: 2012, “Big Risk, Big Reward: Felix Baumgartner and Red Bull Deserve All The Marketing Buzz They Get”. Retrieved from www.forbes.com

-       D. Pilato: 2012, “RED BULL STRATOS. Le saut de Baumgartner? Un coup marketing sous couvert de science”. Retrieved from www.leplus.nouvelobs.com

An eye on competition – How others differentiate

For this first post, let’s focus on RedBull’s most relevant direct competitors. Three brands take the lion’s share:

On such a market that RedBull tends to dominate, each brand has followed the same idea for reaching their target population, young people between 15 and 25yo. They would not only sell a sparkling drinkable energy booster, but also combine extreme sports with their brand image. It is actually the opportunity to reach a larger audience. And more generally, brands focus on how the concept of “extreme” can be something attractive, without becoming dangerous. It is more linked with strong sensations and “living life to the fullest”.

It enables each brand to communicate in a way that fits with the values it conveys. Thus, each communication strategy will send a specific message, with the brand positioning itself on a specific kind of “thrill seeker”.

Let’s take a closer look at how some of these brands' catchphrases!

“Dark Dog is good 4 U” / "More energy, more life"

With such a discrete, traditional message and such a creepy logo, Dark Dog surprises by its innovative strategy, especially through its website, Dark Dog City. Only the 4^th brand of energy drinks in France in terms of turnover, it is very active, focused on motor sports, sponsoring and organizing a lot of events. In terms of product, Dark Dog constantly innovates by creating new ones, re-packaging or displaying lots of goodies. More recently, the brand found out a new way to attract customers...

“Can you take the heat?” / "Fuel for fire"

Part of the Coca-Cola Company, Burn is kind of the rebel of the family. For a long time, Burn had a clear striking focus on provocation to attract people. The brand communicated with shocking visuals, depicting violence, sex or wild parties. Recently, it repositioned itself as something a bit quieter and as product to consume during the day. When looking at their website, Burn is involved in sports events (skateboard, surf, snowboard) and electronic music (for instance, by recently sponsoring David Guetta). So, Burn moving to adulthood?

“Unleash the beast” / “Go big, or go home”

Right from the beginning, Monster differentiated from its competitors in terms of communication policy. No mass media, but advertising that would mainly target athletes of extreme sports. Like Burn, Monster repositioned its image and made the choice of a larger audience by moving along with the times (and with its competitors). Monster Girls - sculptural hostesses dressed like Lara Croft for Monster events – made their appearance. Monster sponsored motor and bike sports and athletes, but also music. Finally, the brand picked up on multiplayer online games becoming competitive sports disciplines. Monster is currently organizing a partnership with Call of Duty for the launching of a new opus. From hyper-focused to hyper-present, Monster is currently the 2^nd brand of energy drinks in France.

No, it's not porn, it's HBO...sorry Monster

Upon closer scrutiny at these brands communication, it is a ruthless battle of who will be the most extreme, provocative, sexy, innovative, connected…and – more than anything – representative of today’s youth.

Pierre

Possible is French

 http://www.ozap.com/actu/football-grand-ouf-de-soulagement-pour-les-marques-partenaires-des-bleus/450214

We know it has already been more than a week since France got its ticket for the Football World Cup in Brazil. The outcome against the Ukraine was unexpectedly but greatly welcomed, in favor of our tri-colors team with a result of 3-0.

This epic performance was the occasion for Powerade to communicate on its position as the sport drink of our national blue team on the following day of the game. The picture above is from the famous football's newspaper "L'équipe". The sport drink brand didn't hesitate to take a whole page to make its advertising more meaningful and powerful, entitled "Possible is French".

Should we understand that Powerade helps making it possible? Probably!

Amanda

PRODUCT BATTLE - Powerade VS RedBull

This article will be dedicated to Redbull and Powerade products.

BATTLE ONE

Powerade ION 4 

Powerade was relaunched in 2009 as Powerade ION4, the ultimate drink that surpass water for rehydratation with its isotonic composition that helps you regain energy during and after physical exercices. The bottle is supposed to contain the four key electrolytes in the same ratio that is lost in sweat during high effort.

 

4 flavours : Ice storm, Orange, Cherry,  Lemon

Combination : carbohydrate and sodium

 VS

Red Bull Energy Drink & Editions

Red Bull is meant for everyday's activities : on the road, during class, at work, during sport, day and night. It gives you the energy you need at any time of the day for any activity it will be required for. In other words, Redbull Energy Drink gives you wings.

 

4 flavours : Original, Blueberry, Lime, Cranberry

Combinaison : Caffeine,Taurine B-Group Vitamins , Sucrose & Glucose , Alpine Spring Water.

 

BATTLE ZERO

Red Bull Zero Calorie & SugarFree

For Redbull it's about obtaining exactly the same sensation as if consumer were drinking their original product but with a zero calories option. Aspartame, Sucralose & Acesulfame K replace Sucrose & Glucose in the composition for Red Bull 0 Calories. Red Bull SugarFree excludes the sucralose.

 VS

Powerade Zero 

Powerade, however, proposes the zero calorie option for light phisycal exercice ( less than 60 minutes) for sportives who really don't want to add calorie during their effort.

UNILATERAL BATTLE

Powerade powder is about making your own mix based own weather conditions or your physical effort. This product was made for more freedom concerning the quantity diluted while having the same taste and effect for your body.

RESULTS

B1 : Deuce, they both win in their own positionning.

B0 : Winner is Redbull, as it gives you the same sensation in term of effect and time, Powerade has a time limit.

UB : Powerade, obviously...  

2-2 : It's a win-win for our two favorite energy drinks.
 

Amanda