Promotional Campaign Olympenergy the energy drink - Research Proposal Example

? Promotional Campaign – Olympenergy – the energy drink Table of Contents Introduction 1 London Olympics 1.2 Energy Drinks 2. Marketing strategy 2 2.1 Standardization and adaptation 3 2.2. Marketing campaign 4 2.2.1 Advertising 4 2.2.2 Sales promotion 7 2.2.3 Direct selling 8 2.2.4 Public Relations 8 3. Conclusion 9 References 10 Appendix 12 1. Introduction 1.1 London Olympics London 2012 Olympics is expected to bring about phenomenal changes and overall development for London. Both big businesses and small entrepreneurs are striving to make gains during the event (Olympics Games 2012, 2010). There is expected to be a great demand for consumer goods in general and for the tourism sector as well. Food and beverages has not been given much attention to, for the London 2012 Olympics. About 14 million meals across 40 different locations would have to be served during the event (Lemm, 2011). The catering and the hospitality sector are attempting to support and implement local, seasonal, healthier and sustainable standards across the country. To take advantage of the event and to make substantial gains, Unilever expects to launch a premier energy drink for the event. While there is a range of ways in which businesses can get involved, the London 2012 website has posted a warning which prohibits the use of Olympics-related words and images by all except the official sponsors (Fraser, 2005). MNCs such as Coca-Cola and McDonald's have exclusive worldwide marketing rights. The London Organizing Committee (LOC) has the right negotiate its own deals with companies in the UK and generate its own revenue. It is estimated that 40% of its operating budget will come from sponsorships. 1.2 Energy Drinks The food and beverages sector has been registering phenomenal growth in the UK. Healthy food is the key driver of sales growth within the F&B sector. Consumer perception of health and well-being has changed which has impacted the F&B market (Langois, 2005). Consumers want healthy diet choices and healthy staples. Bottled water is the most preferred drink but health alternatives have also become popular. These include soy-based or yoghurt drinks and sports or energy drinks, and are preferred over soft drinks (Appendix A). Moreover, health products have a premium price and the pricing power results in better margins. The health and energy drinks sector is the most promising, profitable and growing segment in the UK (Reuters, 2008). Accordingly Unilever plans to launch its new energy drink during the London 2012 Olympics which would give the brand a good start. This product will be labeled Olympenergy and would be an energy drink, basically a sports drink without artificial sugar. This sport drink would also be beneficial for the older generation as it would reduce muscles and joint aches. It would help the viewers of the Olympics by providing cognitive support. The energy drinks market in the UK has very high potential. This is evident from a report which says that an energy drink with an Asian ant as its principal agent made a successful entry in the UKs stimulant drinks market (Functional Ingredients, 2002). This drink raises the energy level, fights ageing, and enhances sexual vigour apart from fortifying the different systems in the body. Moreover, the energy and sport drink market is thriving in the UK with 484 million litres drunk in 2008 (Williams, 2011). Energy drink producers are generally targeting the young and active consumers. The campaign for plan to leverage the maximum promotional benefits is presented below. 2. Marketing strategy The marketing strategy of consumer goods has undergone a change due to internationalization and globalization. Marketing is not just restricted to adjusting the elements of the marketing mix. Today products marketing demands services being extended to the consumers, and services have extended elements of marketing mix. The marketing campaigning would include several tasks such as taking into account the issues of standardization and adaptation. 2.1 Standardization and adaptation Unilever markets its products in all markets including the developed and the developing countries. Standardization means that the same marketing strategy is applied in all markets without considering the local factors (Zou, Andrus, Norvell, 1997). Standardization means identical product lines at identical prices through identical distribution systems with identical promotional programmes. Standardization can bring about significant benefits but this can be feasible if the markets and the consumer behavior are homogenous. Markets are supposed to be homogenized because of advanced technology in communication and information systems but heterogeneous cultures, political systems and economic conditions across borders makes this task difficult. Standardization is a product-oriented approach and not a customer-oriented approach to marketing. Product focus can blind the company to the consumer needs and wants. Standardization ignores the customer needs and the focus is on reducing the product variables. Cultural differences and competitor strategy are also important factors in devising the marketing strategy of such products. Thus, local adaptation becomes essential in devising the market plans. Moreover, the immigrant population in the UK is very high which has altered the perception of the marketers. Culture impacts how consumers perceive and use a product. This is evident from the fact that official sponsors of consumer goods in the Beijing Games 2008 did not fare well. This could however, be associated with poor responsiveness, cultural differences and consumer characteristics of the Chinese. The Chinese value the purpose of the product rather than the organization being an official sponsor of the Games (Rein, 2008). This perhaps was the reason for poor product recall in case of the official sponsors of the companies during the Beijing Games. This also demonstrates that the bill boards and advertisements as Games sponsors went largely ignored in Beijing. This may not be the state of consumer behavior in the UK. However, this suggests that standardization in the case on sponsorships for games does not apply. The promotion campaign would have to be suitable to the UK market and the adaptation strategy would have to be applied. 2.2. Marketing campaign The marketing campaign would consider the several elements of marketing mix with focus on the promotional elements. Olympenergy should tie up with LOC and be one of the official sponsors without which the drinks company will not be able to use the logo of London 2012 as per the Department of Culture, Media and Sports (Fraser, 2005). Marketing communication activities should fit with the business function. The marketing communication mix may have to be changed with the change in the business environment. 2.2.1 Advertising Consumers often confuse energy drink with sport drink. Major beverages corporations are trying to enter the energy drink market. The company should be promoted as a brand. Unilever is an established brand and hence Olympenergy being marketed by an established brand, would make the campaign smoother. Advertising campaigns must have a strong message to communicate to the consumers, which makes the product attractive. It should also reflect the changing needs of the society. Hence, since health concerns are paramount in the UK, all advertising should focus on how this energy drink contributes to well-being. At the same time, it should also communicate how sport helps in health and well-being. Consumers are influenced by films, television and the media. Consumers want that the source should be trustworthy. If sport celebrities are used for such campaigns it would immediately draw the attention of consumers. If the source is trustworthy it can lead to strong opinion change among the consumers (Mehulkumar, 2005). Using sport celebrities for the energy drink would make an emotional impact on the consumer (Gu, 2005). Consumer willingness to buy the product is enhanced when an emotional impact is created. Thus, all advertisements should carry sport celebrity endorsements, particularly of a few that would be participating in the Olympics. These celebrities could be from different countries as the viewers too would throng from different nations. Besides, the local population in the UK also comprise of people from different nationalities. Consumers are able to establish a link and an emotional relation once they can identify the celebrity with their own characteristics. Packaging is an important part of branding and promotion. It is an important part of the selling process specially as the self-service concept has taken over the retail sector (Silayoi & Speece, 2004). Over 80% of visual information is related to colour (Color Matters, 2008). Packaging should be red in colour as red is attracts consumers at a glance. The visual impact that the colour red makes is unparallel. All advertisements should be in red and the display should be in red. Campaigns should carry the product ingredients as packaging communicates the advantages of the product (Rundh, 2006). The packaging should have all details because consumers tend to purchase something which they feel would enhance their value. Before making the purchase decision, they would seek to know the real benefits they can expect from the product. Thus, the packaging should be able to reveal all details of the product. Every consumer has an image of him/her self and would like to know if the product could help him enhance that image (Gfm, n.d.). If the product specifications can help him enhance his self-image and be like celebrity whom he admires, he would be attempted to purchase the product. Thus, packaging should carry details of product ingredients. Buy a vast number of bill boards around the Olympic sites. These bill boards should convey the benefits of healthy living. It should carry messages how sport and the energy drink are related – the purpose of both is the same – healthy living. Such messages influence the thought process and are bound to attract the consumers. Advertising campaigns in the outdoor media and magazines should start at least one year before the London 2012 Games. The London Games adverts on the television should be sponsored by Olympenergy which would give it extensive exposure. In association with the management and authorities of London 2012 Olympics, efforts should be made to sponsor events. Certain events, especially the ones which have local sportsmen involved, should be sponsored by Olympenergy. They should make an entry in such a way that they take over competitors such as Red Bull. They can even endorse the drink with Olympic themes. Athletes should come from diverse sports and moreover, there should be diversity in gender, sport and ethnicity. The athletes chosen for endorsement should have public speaking ability and their story should be attractive enough to keep the audience involved and engaged. The athletes chosen should also appear on packaging and for in-store marketing efforts and promotion. Advertisements should encourage consumers to use a trial pack and post reviews on the social media. This increases the number of visitors to the social media pages of Olympenergy which means enhanced exposure. Advertisements should not be discontinued and should be at frequent intervals so that it remains always fresh in the minds of the consumers. Display of the product at the Games grounds and at retail stores should be such that it immediately captures the attention of the consumers. 2.2.2 Sales promotion According to Zien and Buckler (1997) innovation is a prerequisite for continuous excellent performance for any product. Innovation also helps in setting challenging targets. Sales promotion is a technique that induces purchasers to buy more. Sales promotion should induce new purchasers, retain the existing ones and meet the challenges posed by the competitors (CSP, n.d.). Olympenergy should enter into an agreement and sponsor the tickets for some events. The ticket interface should carry the advertisement of Olympenergy and those bearing the tickets sponsored by Olympenergy should be offered special discounts on purchase of the drink cans. The level of discounts should increase with the volume. When consumers purchase a trial pack followed by advertisements, the trial pack should contain a coupon offering discounts for further purchase. This would have two-fold benefits. It would help the company evaluate the benefit from the existing advertising campaign while also pushing sales. Other tools that Olympenergy can use are scratch-and-win offer which could be included with the trial packs. They could also give special offers for collecting the maximum number of coupons from the start of the campaign till the end of London 2012. This could be a very effective strategy for the consumers to continuously purchase the drink. Coupons could also be connected to some events. 2.2.3 Direct selling Building direct relations with the consumers is essential for any consumer good. The direct consumer for the consumer goods refers to the retail store directors or the management. They need to be convinced to stock the drink and hence a presentation has to be given. The LOC in this case would be the direct customer as they would help plan the campaigns. Presentation and the benefits of the drink would have to be given to LOC as their support is essential in displaying the drink at strategic locations for the London 2012 Games. A trained personnel from the organization would have to visit the management of LOC to convince them of the benefits of the product. The presentation should also explain how LOC benefits through such campaigns. The interests of LOC have to be protected. Direct selling is an interactive way of communicating, creating awareness and selling any product. It also captures the attention of those who do not give importance to the media such as television or paper advertisements. Free sample pouches of the drink should be given to the LOC members and this should start at least six months before the event. 2.2.4 Public Relations The athletes that Olympenergy selects should have a strong presence in the social media such as FaceBook and Twitter (Adnansyed, 2011). These would be the best medium for public relations because Facebook has 500 million users. If the athletes post even one comment a day, it reaches millions. Through the social media messages on healthy living and health drinks can be transmitted. User reviews are the best form of public relations. Olympenergy can place recycling bins all around the area as well as all across the city, which would be a commitment of the company towards helping London 2012 stage a sustainable Olympic Games. This would become a practice even post- London 2012 and thus Olympenergy would be able to find a permanent place in the minds of the consumers. Consumer recall would be enhanced and expected to remain so even after the event. This would be an excellent form of public relations as it demonstrates their corporate social responsibility. The message would be clearly conveyed – recycling makes a cleaner, healthier society. 3. Conclusion The same strategy cannot be used in all international markets as has been evident from the sale of consumer goods in China during the Beijing Games. Thus, Olympenergy should adopt the adaptation process while designing the promotion campaign. The campaign should begin immediately and advertising should be the focus initially. This helps create awareness of the product. The media that should be used are television, the print media, and the social media. The message that should be linked with the values of the Olympics is healthily living and well-being as both sport and energy drink lead the consumer towards a healthy living. This campaign has been designed keeping in mind the immigrant population in the UK, the diverse visitors to the UK during the Games and the focus of the nation on healthy living and well-being. 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Williams, H 2011, Energy drinks such as Red Bull, Rockstar & Relentless: Do they work? viewed 08 June 2011, http://www.the2012londonolympics.com/forum/printthread.php?t=15018 Zou, S Andrus, DM & Norvell, DW 1997, 'Standardization of international marketing strategy by firms from a developing country'. International Marketing Review, vol. 14 no. 2, pp. 107-123 Appendix A Source: Langlois (2005). Read More