red bull imc plan

Anonymous
timer Asked: Apr 13th, 2017

Question description

markting

MRKT 354 Integrated Marketing Communications UMUC Toi Barnhardt This document is confidential To be prepared during Part 3 of this IMC Plan. Topic Slide Marketing Strategy Market Roll Current Consumer Target Position Competitive Position SWOT Analysis Value Proposition Differentiation Target Market Target Decision Making Brand Strategy Product Life Cycle Distribution Review Communications Objectives Communications Issues Bibliography 4 5 6-8 9 10 11 14 15 17 18 21 22 25 27 30 31 32 • Red Bull is a sleek energy drink that provides consumers with get-upand-go and focus. • It currently contains caffeine, taurine, glucuronlactone, acesulfame K and either aspartame or sucralose depending on the original or sugar-free versions. • A total of 5.612 billion cans of Red Bull were sold worldwide in 2014, representing an increase in product growth of 4.2% against 2013. Gender: They mainly target males, although females are a part of their customer base Age 16 to 30 years – they account for the major share of the customer base Below 16 – They account for most of the sales of their other line of products of red bull soda. Middle age and elderly – red bull came out with zero calorie and special edition (cool breeze) for the elderly tastes. Occupation: Students, working professionals, sports enthusiasts, athletes Income: Red bull associated a certain luxury with their brand name and hence caters to a segment that is ‘well off’ in terms of income. Geographic Segmentation: • Area: Red bull limits itself to semi urban and urban proper as the major consumer base • City: Class-A and Class-B cities i.e. metro politician cities • Region: Distribution of Red Bull is constant across 167 Countries worldwide Socioeconomic Classification: • The people belong to the high job profile with efficient communication knowledge. • The purchase potential of this product is limited up to the B1, B2, A1 and A2. Psychographic Segmentation: • • • • • • • • • Lifestyle: Business class, working class executives, students Personality: ambitious, open to experience. Occasions: Regular, special. Benefits: Quality, User status: regular user Usage rate: medium Loyalty status: medium Loyal Readiness stage: intending to buy Attitude toward product: enthusiastic • In geographic segment they target countries with no or negligible market for Red bull. • In demographic segment their main target is the teenagers and college students (13 to 21 years), young adults ranging from (21 years to 35 years) or can also called as working professional. • In psychographic segmentation they targeted a2, b1 and b2 socio-economic classes. • In behavioral segmentation it was found that they were targeting the first time users and also their regular users. They target super markets, movie halls and even bars and restaurants to improve their visibility. Red Bull’s brand idea is all about energy, action and velocity and it drives it’s positioning as such. Red Bull has done an effective job at positioning its brand. It emphasizes its features and sets up a premium price among its competitors. Emotion is needed to position this brand as well. It leads with quality and creativeness as the product differentiation. In the recent past, Red Bull repositioned itself with products to sustain sales growth. Red Bull added non- caffeine products and three new fruity flavored products into the product line. Red Bull’s estimated global market share is 50% and currently producing 22 million in sales. Their annual retail sales revenue is $44 million. Their products are marketed in 120 countries, profiting with global sales of $2 billion. The company has an estimated U.S. market share of 46% producing retail sales of $US 248 million. Red Bull has had tremendous success as a brand leader in the niche segment of the beverage market. Red Bull considers itself the “anti-brand” company, being toted as a company with “cult like” loyal consumers. North American Market Segment Market Share Red Bull Hansen Natural Corp Pepsi-Cola Coca-Cola All Others Pepsi Cola, with currently 10% and Coca Cola 17% market share, have both just threw energy drink brands in to the ring. Hansen Natural Corp is a company that owns MONSTER Energy and LOST energy drinks. These brands together make up Hansen’s 18% of the market share. AMP Energy (AKA the Mountain Dew Flavor) and SoBe No Fear are Pepsi’s energy drink brands while Rockstar and Full Throttle combined speak to Coca-Cola’s 17%. As the charts displays, Coca-Cola’s brands together are Red Bull’s closet competitors. All other independent energy drink beverage brands make up the balance of 5%. Red Bull is a pretty innovative drink formula designed to fight mental and physical fatigue. It creates increased metal and physical energy. blue (Pantone 2747 C) silver (Pantone 877 C) The formula promises to improve red (Pantone 1935 C) performance in stressful or gold (Pantone 871 C) straining situations, and increase concentration and improve reaction speed. Red Bull also stimulates your metabolism along with revitalizing the body AND mind. . Product benefit accounts for the attributes of the product, which might entice a potential consumer to decide to choose this product over others. The taste of Red Bull evolved and now has been formulized to suit the pallet of Westerners. While the product does not have rehydration abilities it should not be compared to sports drinks. Its energy building components are why the brand is centered around the idea that “Red Bull gives you wings.” It’s less for more as you get less ounces for much more $ than its competitive set charges per ounce per can. Differentiation is aimed at the broad market that involves the creation of a product or services that is perceived throughout its industry as unique. The company or business unit may then charge a premium for its product. It attempts to develop products that are unique in the industry. This is something that red bull associates itself to. They charge a premium price for the blend and taste they offer in their drink. The taste is also very often equated to an “acquired taste.” Its unique and not everyone prefers it but it’s distinct enough to garner a following. • Red Bull has been targeting both men and women who are engage in strenuous activities from 18 to 40 years (Bodner, 2011) • However for the non-caffeine drinks, Red Bull can be targeting to other segment of consumers like the kids from 8-17 years and other people who do not drink for energy purpose Athletes-Active Lifestyle Seekers-College Students The students, drivers, business people and sports people are the core consumer segments. These segments use Red Bull in two dimensions: for mentally fatigued situation and for physically fatigued situation or both. The customers of Red Bull typically seek functional benefits. If customers are convinced that, Red Bull works – they tend to become loyal customers with 75-80% of repurchase rate. Red Bull has an intimate understanding of who their target market is (young men), what they watch (sports), and what they like (adventure, danger, pushing the limits). Operating Vehicle For Extended Time Treat Hangover Mix w Alcohol (Partying) Study Focus Aid Need Energy (In General) Sleep Deprived 8 7 6 Male Female 5 4 3 2 1 0 Marketing: Low-involvement purchases • There are two types of low-involvement purchases. Habitual buying behavior occurs when involvement is low and differences between brands are small. Consumers in this case usually do not form a strong attitude toward a brand but select it because it is familiar. In these markets, promotions tend to be simple and repetitive so that the consumer can, without much effort, learn the association... In a convenience store fridge on a shelf full of energy drinks, the target will consistently purchase Red Bull. Even if it’s their first time trying a chilled energy drink because the brand has effectively saturated the market and has secured brand equity. • The brand has equity with international exposure in 167 countries • Red Bull is the signature product, however the brand features a series of related products in the line: ✓ Sugar Free Energy Drink ✓ Total Zero Energy Drink ✓ Promotional Drinks (Flavors) • The packaging is all in the can. The sleek, silver can is Red Bull's anti-Pepsi statement. It’s slim, sexy, and powerful, and says that its diminutive size only bolsters Red Bull's reputation as a concentrated experience. • Red Bull really looks like a product from a global economy. It doesn't look like a traditional American soft drink — it's not in a 12-ounce can, it's not sold in a bottle, and it doesn't have script lettering like Pepsi or Coke. It looks European. And style wise, that’s attractive. Per 1,000 Cans ITALY SWITZERLAND AUSTRALIA FRANCE SPAIN Per 1,000 Cans BRAZIL AUSTRIA GERMANY UK USA 0 500 1000 1500 Red Bull is currently experiencing the maturity stage in its product life cycle. Launched in 1987, that period will be classified as the introduction stage. It was at this stage that heave promotions were done to make the buyers aware of this new product in the market. Distribution at this stage was selective and scattered. Promotion was done with intention to build brand awareness. The next few years post the introduction (probably in the early 90’s) would define the growth stage for Red Bull. Distribution became more significant with the increased demand and acceptability of product. More channels were added for intensive distribution in order to meet increasing demand. Along with maintaining the existing quality, new features and improvements in product were done The late 90’s and early 2000’s is when the maturity stage began. It continues to exist till this date. Red bull added features and modified the product in order to compete in market and differentiate the product from competition (a new sugar free version was also introduced). New channels are being added to face intense competition and incentives are offered to retailers to get shelf preference over competitors. Maturity: At maturity stage, brand awareness is strong, so the sales continue to grow but at a declining rate as compared to past. At this stage, there are more competitors with the same products. So, companies defend their market share. At this stage usually loyal customers make purchases. An important part of adding value and maintaining relationships with customers is the Red Bull’s supply chain. Red Bull (U.K.), implemented innovative strategies especially in distribution focusing efforts on non-conventional garage forecourts, convenience stores and nightclubs Red Bull uses Intensive distribution aims to provide saturation coverage of the market by using all available outlets such as gas stations, convenience stores, grocery stores, night clubs and bars Night Clubs & Bars Gas Stations Intensive Distribution Strategy Convenience Stores Active Settings/Gyms • In push strategy, manufacturer uses his sales force, trade promotion, money or other means to include intermediaries to carry promote and sell its products to end users. Red bull does not include any push strategies as they do not believe in involving intermediaries in their distribution process. • In pull strategy, manufacturer users advertising, promotion and other forms of communication to persuade the consumer. This is the form of communication Red Bull prefers and uses. • Distribution Channel Analysis: Red Bull distributes through selective distribution strategy. It appears at trendy on-promise locations or cells. The product gets much visibility and attention in those locations. In those cells, Red Bull deals with individual retailers/shops instead of the big chains to reduce time and cost. Red Bull also channels through clubs, blades store, underground disco, bars and pubs. The numbers are kept limited to induce attention and premium image. Red Bull communications objectives need to: 1. Increase market share from 50% to 60% 2. Add two more sugar free flavors to product line 3. Increase brand exposure to fit women with active life styles This same Target Audience may be found in any of the six buyer readiness states: • Awareness of its existence • Knowledge of its benefits • Liking Initial Interest • Preference over competitors • Conviction suitability to purpose • Purchase intending and actually buying …Most of Target Audience as Red Bull carries the most market share in it’s competitive set. Increase market share from 50% to 60% • Diet and Health trends vary, consumption of caffeine has a high and low relationship with consumers interested in their health. Add two more sugar free flavors to product line • Sugar Free Beverages are known to not always be as popular in taste. Currently the sugar free versions of Red Bull has a slightly different taste. Add flavors to the sugar free line may suit some pallets and not others and may also vary per country. Increase brand exposure to fit women with active life styles • Current packaging is targeted more to a male’s positive response stimuli, challenge will be keeping the current masculinity of the look but simultaneously softening it up to appeal more to females as well. http://hubmagazine.com/archives/the_h ub/2011/nov_dec/the_hub45_g2.pdf http://www.britannica.com/topic/habitua l-buying-behaviour http://energydrinkus.redbull.com/company http://www.slideshare.net/neha17tyagi/ redbull-energy-drink https://en.wikipedia.org/wiki/Red_Bull https://www.google.com/webhp?sourceid=c hromeinstant&rlz=1C1CHWA_enUS516US516&io n=1&espv=2&es_th=1&ie=UTF8#q=countries%20that%20sell%20red%20 bull&es_th=1 http://www.fastcompany.com/64658/itsred-bull-market-after-all http://www.redbull.com/us/en Increase market share from % to % • Diet and Health trends vary, consumption of caffeine has a high and low relationship with consumers interested in their health. Add two more sugar free flavors to product line • Sugar Free Beverages are known to not always be as popular in taste. Currently the sugar free versions of Red Bull has a slightly different taste. Add flavors to the sugar free line may suit some pallets and not others and may also vary per country. Increase brand exposure to fit women with active life styles • Current packaging is targeted more to a male’s positive response stimuli, challenge will be keeping the current masculinity of the look but simultaneously softening it up to appeal more to females as well. • Be sure to go back and develop your Table of Contents • Be sure to edit your work, follow the tips for effective Power Point Presentations • Be sure to include your endnotes and bibliography for this part. • Check your work against the grading rubric • Upload your Part 1 to your assignment folder by the due date listed in the course schedule and double check to be sure it is the version you want to send. • Goal #1 of Part 2 is to provide direction on the overall creative message design and structure. This is called the Creative Brief and discussed in detail in chapters 8 & 12. • Goal #2 is to provide recommendations on broad media channels to use. • Goal #3 is to identify the feedback metrics that you recommend using to measure the effectiveness of the plan. What is the key “Big Idea” you want integrated in all the messages? Red Bull Gives You Wings to Work. It. Out. What is the key promise and supporting reasons why. What call to action do you want used, example: go to website URL, phone #, etc. What are the mandatories, or constraints that need to be included in the messages; such as logo, tag lines, warning labels, drug interactions, etc. Red Bull Gives You Wings to x Work Red Bull Gives You Wings to Red Bull Gives You Wings to x Work It Out. x Work It. This is where you say what you want to say about the product, for example: • What specific product information is critical • What differentiates this product from its competitors • What appeals should be used (emotional, rational, sex, ethical, etc.) • What buyer readiness stage is your target audience in • What disclaimers need to be used (put this detailed/legal information in the Exhibits Provide strategic direction on how to deliver the key message to the copywriter and art director. You are not writing copy for the ads; that is for the creative team, for ex: • Use one or two-sided arguments • Draw a conclusion or leave it to the target audience • Whether to present the strongest argument first or last • If you want comparative messages used, need to provide competitors & products. 2-parts to this analysis need to be provided: • Identify what formats the ad message should be in (30 or 60 sec. tv spot, full page or partial ads, etc.) • What executional framework you believe will work best (lifestyle, scientific, testimonial, demonstration, slice-of-life) The integrated marketing communications perspective stresses careful strategic blending of many media tools to be sure that the message touches the target audience in the same way wherever this interaction takes place-refer to ch. 9 • Use personal, non-personal media or both • Use traditional, non-traditional media or blend • Identify what media your direct competitors use. (Point is not to copy them, but to be aware of what they use and why) • Identify what media mix to use and why. (this should be broad, for ex. Public relations; because you will get more detailed in Part 3, for ex. Media event, press release, etc. R e d B u l l ’ s S y n e r g y Red Bull is another brand that cuts through the clutter and creates an emotional bond. Red Bull’s brand idea is all about energy, action and velocity and it drives this positioning across a wide range of experiential touchpoints designed to impact various segments of its target mix. The consistent element across all of Red Bull’s activations is an unbridled passion for speed, energy, and accomplishment. Red Bull runs events across the globe and enjoys a great deal of synergy as video and coverage are captured and shared globally. One key measure of Red Bull’s community-building prowess: more than 10 million Facebook friends as of this writing, all checking in on Red Bull on a regular basis to see and experience the brand’s live events around the world. Activations are too numerous to list, but include: • Sampling and nightlife programs targeting young adults and key influencers in the worlds of music and entertainment. • A wide range of action and adventure sports events and sponsorships (auto racing, motor cross, cycling, snowboarding, skateboarding, freestyle skiing, BMX and mountain biking, surfing, cliff diving, wakeboarding, speed/trick skateboarding, skydiving, ultra running, extreme kayaking). • Proprietary sponsorships: Red Bull owns a halfdozen professional soccer teams around the world and creates and tours proprietary events like the Crashed Ice, Air Race World Championships, King of the Rock Street Ball. • Participatory events: Open to everyone, these include soapbox races, the famous Flugtag flying machine contests, Candola (a uniquely Canadian gondola building and race contest), and others. http://hubmagazine.com/archives/the_hub/2011/nov_dec/the_hub45_g2.pdf • Offer direction on whether it should be a celebrity, man/woman on the street, etc. and why. • What source characteristics do you want, such as; trustworthy, credible, expert, etc. • What kind of voice talent do you want used, if you specify radio, YouTube, etc. • State if you want a spokesperson who has never been used by a competitor,etc. A single communications campaign can cost millions. To meet the growing demand for accountability; research and media experts have developed accurate evaluations for advertising effectiveness. (refer to ch.5) • Specify what internal and external measurements should be used • Identify the timing of the metrics & if they should be pre & post • This is also where you would share what metrics were used before and the results, but you are not responsible for it here • Be sure the Endnotes and Bibliography have been up dated. • Review for any editing errors • Double check to be sure all the required content is provided • Refer to chapters 7, 9, 10, 11 • Part 3 is going to be more detailed and tactical as you recommend what specific media will best reach the target audience and the overall budget to implement it. • This part will also summarize how the final plan will be evaluated and its timetable. • This slide needs to summarize the overall tactical promotional mix and rationale for it. • You need to identify how you plan to integrate the promotional mix messages to reach your identified target audiences and achieve your communications objectives. • Don’t forget to identify how you plan to reach the “middle market” between the company and the final consumer. For example; trade promotions, sales incentives, or dealer promotions. • What role do you recommend the corporate web site has in the promotional mix? • Need to identify the budgeting method you plan to use –refer to chapter 7 • Need to identify the overall promotional budget in dollars. • Need to identify how you want the budget allocated and your rationale. • Don’t forget budgeting for external research (if planned), sponsorships, website promotions, public relations and production costs for the plan. • Discuss how you plan to integrate the paid advertising, personal selling, sales promotions, etc. Note: in some products mass advertising tools will be the central focus. In other products, advertising will be used to support a sales force and trade promotions only. • Do you plan personal, non-personal or both • Plan for a push, pull or combination & why • What is the promotional timing, for ex, fall for gift season, slow seasons to simulate sales, etc. • You need to demonstrate you understand the advantages and disadvantages of the various recommended media . Effective advertising message are very important in today’s costly & cluttered media environment. You need to: • Define key elements of message (what do you want to say) • Define emotional tone (how to say it) • Define production goals (what the ad will look like) Note: you are not writing the product copy, but you are to provide strategic direction to the copywriters & art directors. • Name the specific media vehicles, including social media and other digital tools, such as; Google Search, Facebook, etc. • Determine audience reach, frequency and other relevant measurements. • Media timing for the product; such as fall and winter months for cold/flu meds, spring and summer for new car intros. Also remember targeting certain months can save on media budgets. • The goal of public relations is to build good relationships and enhance the image of the firm with the advertiser’s publics, namely consumers, stockholders, legislators, and employees. However, since public relations messages are not paid media placements, marketing communicators can’t control their use. • Recommend what tools you want; such as press releases, media events, publicity or crisis management, etc. • Refer to chapters 9 & 10. • Personal selling involves direct interaction between the company rep and the customer. Remember, that in the case of grocery products, etc. the grocery buyer is the consumer. • Recommendation for sales incentives, contests, and support materials, and brochures, etc. These media are an increasingly important part of the overall marketing communications program. Need to: • Identify what direct marketing media (refer to sales communications delivered directly to individual customers thru email, direct mail & telemarketing) to use, timing, etc. • Identify online, mobile, buzz marketing, and the web changes needed, such as; a web landing page, etc. • Recommend what social media to use, including online product reviews & blogs, refer to chapter 10. Accountability is increasingly important because why spend the money to advertise if it is not accomplishing your communications & advertising objectives(refer to chapter 14). How & when do you want the entire plan evaluated: • Return on Investment (ROI) • What final measurement metrics to use (coupon redemption, new customers etc. • Pre & Post evaluation of creative messages, etc. • Tracking and click-though rates on website • Be sure to use proper citation format. • Need to cover all 3 parts of the plan. • Refer to the excellent reference tools found in the UMUC virtual library to be sure of people citation format. • http://hubmagazine.com/archives/the_hub/2011/nov_dec/the _hub45_g2.pdf This slide is optional, but it is a good place to include: • Worksheets (SWOT, competitors, etc) • Detailed Creative Brief including legal product language, etc. • Logo and tagline treatments • Corporate trademarks, PMS colors, and how they should be shown in communications materials. • Make any changes recommended in your professor’s feedback on Parts 1&2. • Incorporate Parts 1 and 2 into a final, cohesive plan. • Include the Executive Summary and full Table of Contents. • Edit carefully and check your work against the grading criteria in the syllabus. • Upload into your assignment folder by the due date.

Tutor Answer

(Top Tutor) Studypool Tutor
School: Boston College
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors