Recommendations for RedBull Cola on the Strategic Planning Level - Case Study Example

Part III Recommendations The key to success is to consider the future position of the RedBull brand described in Part I of this report. At the strategic planning level, the introduction of RedBull Cola into different test market locations, domestically, is recommended. As part of a preliminary, exploratory research study, the energy drink brand can conduct different focus groups in which taste testing of the Cola is presented. Once the company has finalised a version of the cola drink which contains all natural ingredients and is ready for test marketing, this research study will identify whether consumer groups (of younger demographics) favour this drink over the major competition. This first recommendation makes sure that the product will have the taste and flavour benefits consumers expect of these products so that researchers can understand what portions of the new cola to redevelop or reflavour. This type of preliminary research should be conducted to improve the market availability to the RedBull brand of products and can be conducted with other ongoing integrated communications campaign that are having success. Conducting exploratory research is important to the success of the new marketing campaign because it will show how consumers feel about the brand. In the current marketing environment, viral marketing represents a low-cost business activity to create buzz about the brand. There is also, as identified earlier in the report, a shifting trend of consumers to favour natural drinks and those that claim natural benefits to health. It is recommended that the company develop a new website which only focuses on these benefits of RedBull products, especially since there is often mixed media reports about the potential health benefits of the brand. Through strategic alliances or other type of partnerships with lifestyle organisations, such as natural foods distributors, agreements can be developed which put RedBull advertisements on favourite UK natural foods-related companies. By linking to other natural foods organisations, RedBull can secure low-cost advertising space, create long-lasting strategic relationships with community or online vendors, and also use the linked website to create informational or humorous videos about the product’s natural benefits. Seeking these partnerships can involve speaking with community distributors of RedBull products or pursuing online consulting meetings with interested parties looking to partner in this fashion with dual advertising campaigns. Because RedBull faces so much competition, both for its current brands on the market and those under consideration for the future, it is important to clearly differentiate the brand from other existing brands. It is recommended that RedBull begin using more interesting and colourful packaging, despite the cost increase to the marketing budget. Currently, RedBull products are bland looking, with subtle colours of blue and red. As part of new natural ingredients marketing, RedBull should redesign the face (the packaging) of the product to appeal to more markets and regain any lost interest. Buyers are often drawn to creative packaging and, even though this represents higher costs, it can create the same kind of identification with logos that its largest competitors have experienced. The marketing department should begin redesigning a new logo which can build a new image of RedBull products which introduces black and yellow as colours to accent the existing packaging colour scheme. By introducing a fierce-looking honey bee, a sign and token of natural ingredients and fertilisation, RedBull natural products can be both holistic and keep with the same image of recklessness and intensity it already experiences. Black and yellow striping on the packaging will be both eye-catching and provide many different opportunities for promoting the new RedBull brand. Highlighting the bee’s relationship to the bull, as part of the natural evolution of life and health vigour, can inexpensively link the existing RedBull brands with the new future cola drink or other natural ingredient products currently in development at the research and development level. This change in brand strategy can capture the attention of more than just the natural foods consumer, it can be a mass market focus to get more specialised groups to try out the new product based on its visual appeal and connection to natural lifestyle. It is also recommended that the company use more targeted, short-term guerrilla marketing to give the brand more exposure to different markets. The goal of RedBull is to improve its market position and also gain more customers at the same time, therefore taking RedBull into locations where it not normally consumed is one street team effort to make sure that the brand is reinvigorated. For example, hiring experienced teams with the professional skills to represent any RedBull products can do guerrilla-style ambushing of secretaries, office professionals, or other individuals who might be willing to cooperate with this type of guerrilla marketing. Many business professionals work in dull environments where there is repetitive work and would appreciate being spotlighted in such an effort to promote the brand. Not only would it give positive word-of-mouth (and maybe even celebrity to a lucky handful), but it could be developed in which incentives offers are attached to these street marketing campaigns. With the proper press releases or contact with interested journalists, any brand of product associated with the RedBull name can receive high exposure at very little cost. In this recommendation, the only costs are in outsourcing the talent needed to make guerrilla marketing effective and without causing any problems with brand image in the process. Guerilla marketing can reach more consumers and can be developed with different acting or plot stories which capture people’s interest as they are ambushed or passing down the street. Coordinating any street marketing would have to be conducted with city or community leaders at different levels, but could be scheduled from the brand’s headquarters and coordinated with marketing experts. Guerilla style marketing is over-looked for businesses and the rewards of the activity, from the corporate view, are often less than the expense of development. However, if moving the guerilla marketing into an area where professionalism is heavy, the street team should be equipped with a sophisticated marketing script. In an environment where there is less sophistication, slapstick comedy or other scripted acting would be appreciated and offer the motivation to consider this drink. Pub environments or other recreational facilities would offer the best benefit for guerilla marketing in more social scenes. The goal of this marketing effort is to improve market availability and introduce the brand to different buyers, therefore guerilla marketing is the best way to stretch RedBull’s creativity and innovate the delivery of ambush marketing in different consumer environments. Finally, as part of the recommendation for differentiation, RedBull should consider the benefits of capturing the attention of female consumers responsible for managing the household environment. These environments can often be stressful and demanding because of juggling multiple family obligations, therefore the need for energy exists strongly in this market in order to keep up the pace of caretaker. By using the existing bull shown in the packaging, in television advertisements, as a sort of helper for the stressed out homemaker, RedBull can capture the interest of a market with both the financial means to make purchasing decisions and the individual who makes the majority of them. For example, development of a television spot in which a stressed mother is overloaded with problems and the bull comes crashing through the kitchen wall with a four-pack of RedBull hanging from its horns. With a hefty smile and a sigh of relief, the homemaker pats the bull and gingerly takes her energy pack surprise. This advertisement would be part of an integrated marketing campaign which features recognisable characters already recognised by mass market groups. Though television is higher-priced, the consumer response will likely offset the expenses. All of the given recommendations will improve profitability and open the brand to new market opportunities. Rather than focusing on the drawbacks of trying to compete with many different energy drink manufacturers or cola brands, RedBull should focus on how to make its product unique and easy to recall by different consumer groups. It is more than just health benefits that RedBull provides, it is taste and also the ability to improve short-term energy and focus. There are few markets in the global community that cannot find some benefit from this product and associated brands linked to RedBull. As Schultz pointed out in part one of this report, it is the end-user, not the marketer, which controls the markets (Schultz, 2001). Therefore the focus is to make sure that the end user is targeted with promotional materials that are in-line with consumer attitudes, lifestyles and preferences for energy drink products. If RedBull adopts these suggestions for improvement, it will likely outperform many different competitors of not only just energy drinks. Reference List Ervin, M (2009). Red bull cola pulled for containing ‘cocaine’. Metro. Retrieved November 28, 2009, from http://www.metro.co.uk/news/670842-red-bull-cola-pulled-for-containing-cocaine Meldrum, S. (2009). Elements of a successful marketing program for small business. Ezine Articles. Retrieved November 28, 2009, from http://ezinearticles.com/?Elements-of-a-Successful-Marketing-Program-for-Small-Businesses&id=769055 Red bull: It gives you wiings. (2008). Marketing Practice. Retrieved November 28, 2009, from http://marketingpractice.blogspot.com/2008/08/red-bull-it-gives-you-wiings.html Strategic analysis red bull. (2008). Oppapers.com. Retrieved November 28, 2009, from http://www.oppapers.com/essays/Strategic-Analysis-Red-Bull/173174 Viral marketing: Word-of-Mouth Marketing. (2009). Marketingterms.com, Crucial Marketing. Retrieved November 28, 2009, from http://www.marketingterms.com/dictionary/viral_marketing/ Read More