Red Bull is a huge brand that over a period of time used very good advertising techniques to grow their brand and make it popular all over the world. The advertisement created by Red Bull relates to its popular slogan “Red Bull gives you wings”, through which they attempt to explain to consumers the high energy content of the drink.
However, in 2013 their tagline was about to be used by a customer who felt the tagline represented false advertising. Benjamin Carriers, an American man, believed that the tagline was dishonest and therefore sued the company on charges of false advertising.
drinking doesn’t give you wings.
Now let’s get straight to the point, Benjamin didn’t really expect it to raise wings because he knew the tagline was used to reintroduce the high energy content that energy drinks are supposed to offer.
The misleading part that Benjamin used in the lawsuit was that energy drinks do not contain as much energy as a 250 mL can of Red Bull, which contains less caffeine than a cup of coffee.
The judge at the hearing also agreed with Benjamin:
“Such deceptive practices and practices mean that [Red Bull’s] advertising and marketing is not only false, “but it is misleading and deceptive and therefore actionable,” the lawsuit states. Red Bull had always marketed their products as a “source of energy”, in other words that their drink was the best and the best. In this case we can see the branding used by Red Bull is very similar to the marketing used by Duracell batteries.
They both claim that they are not very good in the market by offering the best products (not necessarily price-wise). In both instances credibility is demanded by the users within the market itself, however, it is the responsibility of the company to appropriately moderate such credibility based on the description of the product.
Red Bull still believes in its wings
Even with the evidence up to a scientific point, Red Bull never pleaded guilty because they believed it was just a disgruntled customer. This is one of the biggest mistakes Red Bull can make, as I believe they do not understand the “poor of the customer”. It doesn’t matter how many customers we’re talking about nor how big a company in which the customer is facing wrongdoing, at this point (and like most) “the customer is always right.”
What big companies like this are forgetting is the power of the customer, especially in this digital world where your company can be wiped out by just one click or better said one share. Nevertheless, Red Bull maintained their belief that there was no marketing foul.
Play on their part (A $13 million lawsuit against their famous slogan)
“Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling has always been true and correct, and denies any and all wrongdoing or liability. ” the company officially said in August 2013.
When the lawsuit ended in 2015, the clients received $13 million in compensation.
The energy drinks market is in a very rapid growth phase with many new entrants taking place. The importance of advertising in this market is of paramount importance, as it is not the actual content of the product that attracts the customer, but the association created by the package and the brand. A new trend has emerged with many energy drinks (Sneak) coming in powdered form and said to be healthier than the classics (Red Bull).
It is not just a matter of buying more of less, but also of using better marketing to attract the exact segment of the market that uses such a product. It’s a market segment that’s growing more than ever.
Red Bull still believes they are like Coca-Cola. They have been the market leader for many years, being one of the first energy drink brands, but they need to understand that customers change which creates new trends as well as new demands impact on the market. This type of “ego” can be seen as a double-edged sword because it can attract a lot of attention. However, this does not necessarily mean that the situation should be taken care of.
So friends this was the story of Red Bull which loses a case against customer. How you like this article do let me know in the comments. Thanks for reading this article.