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Recently, Red Bull has been severely impacted by two lawsuits due to its fraudulent slogan “Red Bull gives you wings”. In response, the firm agrees to give a $10 cash payment for Red Bull purchasers from January 1, 2002 to Oct 3, 2014 in compensation for the fact that drinking Red Bull did not generate wings.
Charging a premium price for energy drinks that do not necessarily give the consumer more energy than other caffeine sources, Red Bull has consistently been branded as superior to coffee and similar caffeinated drinks. However, Red Bull’s famous slogan and brand image has positioned Red Bull as a “must-have” in parties, with brand awareness and ad awareness being critical factors to Red Bull’s popularity. It is interesting, hence, that the very two factors which have ensured customer loyalty are now responsible for the loss of customers. I do not believe that customers truly attest to the argument that Red Bull does not “give you wings”, since it is evident that ths is scientifically unrealistic. They are merely realizing that perhaps Red Bull’s now infamous slogan has been deceptive in making the brand more superior than it really is.

My analysis, thus, indicates that management should focus on assuring customers that Red Bull did not intend on creating fraudulent advertisements. Besides financially compensating the customers, the firm should also prevent criticisms from being blown up on social media, as the wide platform will have a great impact on Red Bull’s image internationally.

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