Marketing Plan Red-Bull Chewing Gum - Case Study Example

Marketing Plan Red-Bull Chewing Gum Insert Executive Summary This detailed plan will inform you to the most realistic way of promoting and advertising an innovating chewing gum by the company Red Bull. It has a target market same as those who love the drink Red Bull. This gum will have the taste of Red-Bull and will provide energy to its consumer. This was chosen after a considerable amount of research into types of chewing gum and its tastes. Following this it was then concluded that there was a clear understanding that people are very prone towards the innovating products and this boost energy will chewing gum will be a break a new concept in the chewing gum industry. So the company will follow a strategic marketing plan for advertisement and to reach to the target audience. They will show the products in print and television advertisement. The detailed plan has covered everything like POS to competitive environment. Table of Content 1. Situation Analysis ------------------------------------------------------------------------ 4 2. Marketing Objectives -------------------------------------------------------------------- 5 3. Market Research--------------------------------------------------------------------------- 6 4. Target Market ----------------------------------------------------------------------------- 7 5. Marketing mix i. Product / services ------------------------------------------------------------------- 8 ii. Place / distribution ------------------------------------------------------------------ 9 iii. Promotion --------------------------------------------------------------------------- 10 iv. Pricing ------------------------------------------------------------------------------- 11 6. Implementing and Control i. Gantt Chart ------------------------------------------------------------------------- 12 ii. Responsibility Matrix ------------------------------------------------------------- 13 7. Appendix i. Sales Forecast ---------------------------------------------------------------------- 14 ii. Break-even Chart ------------------------------------------------------------------ 15 iii. Marketing Cost -------------------------------------------------------------------- 16 Situation Analysis If we talk about the brand awareness of Red Bull, then it is interesting to know that it is a very lucrative energy drink which is very famous all around the world. Red Bull is at number 2 in the market of energy drinks and is continuously trying to become the leader, that's the major reason behind introducing the Red Bull Chewing gum. As its really important to reach the target markets with appropriate levels of frequency and credibility. We will use both push or pull strategy or exclusive distribution in some conditions. Usually the well known brands are successful of developing a pull strategy with their loyal customers. So if we face any sort of constraint then we will ask our distributors to use exclusive distribution strategy to sell the chewing gum; so that the consumer might want to break the suspense, 'why is it only available in few outlets'. The market of Red Bull drink is already has good stead so the chewing gum with the same effect will be a total suspense in the consumers of the drink, leaving no doubt that they will buy it. The product is placed in the outlet and the shop is using the brand equityto develop his reliability of the shop name and is also associating with an existing brand name to introduce a new product orproduct line will also attract the target audience. PESTLE Analysis Political: Red-Bull is a well known product in UK. There will be no political restriction against a really similar product. This product will be a really innovative product as there is no chewing gum with the energy boost. Economics: Red Bull chewing gum is a extension of lucrative red bull energy drink. There are no particular expends that will make this extensive project.New employees will be hiring for this product department. Consumers have been spending money to buy the drink and hopefully same trend will be followed in Red Bull Chewing gum. Social: Our product will be the first energy chewing gum. It will create a real added value to the customers. Target audience is from 15 to 40 years, we will create a fad among the teenagers in school and colleges as they will taste the energy chewing gum for the first time. It will be focusing on those people who love extreme sports and are adventurous. Technological: There are no specific technological needs for the production of the product. The chewing gum will have caffeine, artificial flavor and gum. It will work just like the Red Bull energy drink works; give its consumer an instant energy. Legal: The Red-Bull drink is legal in The United Kingdom. Therefore a similar product will not create any legal conflict. We will do every research in order to provide healthy components. We will expand our Red Bull industry by hiring new staff and providing employments to contribute to the society. Environment: Red-Bull chewing gum will be the first gum with a recycled paper. Marketing Objectives The marketing plan begins with the selection of marketing objectives. To present a new product with a unique idea of taste, which people have never experienced before. To make a new and improved impression of the brand with this innovative product (Red Bull chewing gum). The aim of the chewing gum is same as the energy drink which is to give boost to the lost energy and refresh. Chewing gum can be taken where people can't drink like meetings, during exams or when too lazy to go to market and give a maximum boost. This is one of the various creative promotional strategies to spread the word of Red Bull's benefits. Maximum sale. Managing the brand equity. Attract new loyal consumers. Market Research Although Red Bull is already have advantage of being the market leader in many countries with two available drinks (Red Bull original and Red Bull Sugar free) but introducing Red Bull chewing gum will be providing a great new experience of energy boost from a chewing gum. A brand image is associated with the youth and sports for example motor sports, mountain biking, snowboarding and dance music. Red Bull's chewing gum will be increasing the target consumers massively. Although there are 23 energy drinks which make the market competitive for Red Bull but as for the chewing gum it does not have any other competition; as it's the first energy chewing gum. . As the original innovator of the health and energy drinks market will again win the title in the chewing gum market. Consumers around the world prefer chewing gum with longer lasting (high) flavour. In Red Bull chewing gum, the flavour account for the highest cost component of our product as it has to give maximum boost. A subsidiary increase in the level of flavour leads to considerable cost increases. It is found that in developing markets, companies selling chewing gum will face problems in recuperating the higher costs linked with providing longer lasting flavour levels as desired by the customers. Consumers in these markets, instead of paying higher prices for long lasting flavour levels, substitution their desired higher flavour levels with affordable prices. Red Bull, therefore, instead of assessing the preferred flavour levels, need to determine the optimal flavour level for these markets based on affordable pricing. Target Market Marketing plan is according to the target audience. All the male and females, who are between age 15 and 45 come under the target audience. It is found out that we can improve our sale by targeting this age group in United Kingdom. This product is covers everyone with low to high income. Anyone who is a bachelor or a father of five is our target also includes students or children, sportsmen or driver, businessmen or shopkeepers, or just another person around the street. Red Bull chewing gum will be a common chewing for those who want instant energy and can't afford the can or someone who likes chewing gums. Anyone who wants to feel fresh in a boring party or want to dance when he is too lazy to stand up can pop one chewing gum and have all the fun he can have in that point and time. Red bull chewing gum consumers aremainly those of Red bull energy drink. Total market share of Red Bull chewing gum is mainly from those people who have GDP per capita of $35,000 among the 61 million people. Marketing Mix 1. Product/services Brand marketing for Red Bull chewing gum will be conducted in such a way that the product which is going to launch is also following brand equity. The product matches the customer expectations and ensures that loyal customer will continue to have long term association with Red Bull. Red Bull chewing gum gives all the caffeine and energy of a can of Red Bull. The gum is red/pink with logo and is of cylindrical shape (more of a Red Bull can). Packaging is done with a recycled paper and with a brand logo. It will be sold by unit. People do not need to buy a package of 10 like stimorol or mentos. Just one cylindrical gum packed separately. Personal selling can be done effectively if we have our representatives in malls and different outlets, who can tell everyone about this new product. As Red Bull, follows the buzz marketing strategy so will the Red Bull chewing gum; only then the word of mouth will be effective. For sale promotion we will give free samples on every Red Bull can purchase and will give our sales representatives a sample box of chewing gum. We will only emphasis on the push strategy; this will help in getting the consumer and retailer's feedback. It will result in increasing the value of the product to the consumer. Direct marketing can also be done through emails and mails which our relative department will manage. P-O-S will have special posters, displays, signs of red bull chewing gum and advertisements which will be seen everywhere around the city, effecting the buyer's decisions. 2. Promotion The primary strengths of consumer sales promotions are their variety and flexibility. There are many promotion techniques that a product manager can use and combine to meet almost any objective. Sales promotion works for every business. Sponsor the sports and extreme adventurous videos on daily motion and you tube. Also in sports magazine and newspaper's sports section. It will have a website address of exclusive Red Bull chewing gum. Main idea of our promotional campaign is that we have used teasers, danglers, posters and print advertisement. It will generate a buzz around the product. Consumer sales promotions are directed at the ultimate user of the good or service. They are intended to provide an incentive so that when consumers go into a store the will look for the Red Bull chewing gum. The primary strengths of consumer sales promotions are their variety and flexibility. There are many promotion techniques that a product manager can use and combine to meet almost any objective. Sales promotion works for every business. Television screen in sports stadium will be running the advertisement of Red Bull chewing gum. Main promotion of the product is to win two markets the present consumers of Red Bull and the chewer market. 3. Place and Distribution Product will be available in main cities before the advertisements and commercials go on air. While in smaller cities it will work as teasers. Later we will use our samples and online advertisements to which will give a closer look at the product and the market makes the decision of buying it. First starting by selling in small shop, every shop where you can buy chewing gum. Our retailer includes small food shops, supermarkets and service shops at gas stations. Then, we will make it available everywhere and every place where Red bull drink is sold like bars, gas station, kiosque... etc Television screen in sports stadium will be running the advertisement of Red Bull chewing gum. Main promotion of the product is to win two markets the present consumers of Red Bull and the chewer market. So the company will follow a strategic marketing plan for advertisement and to reach to the target audience. They will show the chewing gum being used by the common man getting all boosts up immediately in advertisement rather than sportsmen and celebrities. The detailed plan has covered everything like POS to competitive environment. 4. Pricing: The cost per piece is 0.19 pounds per piece which has been decided keeping in mind the ease and affordability of our target audience. This price is low as compared to other chewing gums in the market according to research. As this product is innovative and is never seen before that's why the price speaks for the brand. The brand equity and profitability is kept in mind while deciding the price. Red bull chewing gum gives all the caffeine and energy of a can of Red bull and also caters to the widest age group from 15 to 40. The target audience is kept in mind while making taste of the chewing gum is a little sweet, strong and energetic. Advertisement will show that the can energy is now available in a piece of chewing gum which is very cheap as compared to the can; this psychological pricing strategy will work very effectively. Red Bull chewing gum can also work as a 'class gone mass' category, the can is a luxurious item as compared to the chewing gum. So it will give an impression that everyone can afford the Red Bull energy wherever and whenever. Implementing and Control Gantt chart for the Red-Bull Chewing Gum for the year 2009. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Responsibility Matrix for the Red Bull Chewing Gum for the Year 2009. Appendix: Financial Analysis Break Even Chart Manufacturing Cost Manufacturing cost is almost 0.15 Pounds which include packing, labour, and electricity and distribution charges. If we add Total Fixed Cost and Variable Cost per Unit we will get the manufacturing price i.e. 0.15 pounds. Where as the selling price is 0.19 Pounds. Read More