Integrated Marketing Communications Management of Red Bull - Essay Example

INTEGRATED MARKETING COMMUNICATIONS MANAGEMENT Market and Industry Analysis Private label market is steadily expanding the world over. In the USA, the private labels has also been growing in a significant rate. Although the growth is relatively slower in gaining the market foothold in comparison to the European nations such as in Britain and Portugal. Since 2003 the private label in the United States has increased by about 60%, compared to 23% growth rate for the overall US retail drinks and food industry. As a result, the percentage of the market value that the private labels accounts for is19% up from about 15% in 2003 (Kumar, et al. 2007, p. 221). Red Bull Canadian market share is approximately 50% and the sales is about $ 22 million. The annual retail revenue is $ 44 million. Red bull manufacture, distributes and markets its products in over 120 countries worldwide with a global profit sales amounting to $2 billion per year. The US market share is estimated 46% with a retail sales turnover of $US248 million. In the beverage market, Red Bull has a tremendous success that earns it to be a brand leader in the industry. The company sees itself as an “anti-brand” company receiving unrelenting praise from its loyal customers (Red Bull, 2012, p. 5). In addition, Red Bull sponsors numerous sports events, teams and sportsmen such as the current sponsorship of World Car, Rally Championships and world motorsport competitions. In these competitions, Red Bull sponsors three teams namely Red Bull Racing, Scuderia Toro and Rosso Racing all of which Red Bull is the highest owner. These ventures generates an average of $70 million in against the $100 million that Red Bull invests in the venture annually thereby generating a loss of $30 million. In 2005, Red Bull purchased SV Austria Salzburg team, renamed it FC Red Bull Salzburg, and bought New Jersey /New York MetroStars on March 9, 2006 and renaming it New York Red Bulls (Red Bull, 2012, p.5). Competition Analysis Recently Energy drinks have faced a relatively stiff competition because other companies such as Pepsi and Coca-Cola have gained a market entry into the energy drink market. The Red Bull’s North America market share for its energy drinks is as follows; Hansel Natural Corporation is Red Bull’s main competitor in the North America energy drinks market with 18% market share compared to 50% of the market share that Red Bull takes. It’s main brands is the Monster Energy and Lost energy drinks which adds up to the 18% market share when combined. Table 1: Sources: (Garrison, et al. 2012, p. 118) The Brand The Red Bull Red edition composing of Red (cranberry), Sliver (lime), and Blue (blueberry) brands is one of the newest brand that Red Bull introduced in 2013. Red Bull seeks to secure a wider customer base in the domestic sector of this new brand. This paper presents a marketing communication plan that the new appointed marketing director of Red Bull Company should prepare for the company. The communication plan will highlight the key marketing communications elements to be used to make the business successful in the volatile marketing environment. Figure 1 Sources: (Red Bull, 2012, p.2). Marketing Communications Plan Objective Through the aid of this Communications Plan, Red Bull focuses on achieving the following; 1. To create awareness of the new Red cranberry brand recently introduced in the domestic market in U.S. 2. To change consumer perceptions on the company by raising awareness of the company’s green activities 3. To build awareness on why this particular brand is the most exclusive energy brand in terms of flavor and pungency. 4. Create awareness of the promotional campaigns of the new brand through social media. An upcoming campaign is dubbed “Space Jump 2” which includes an online competition where entries can win up to five nights in a luxury 5 Star hotel in New York + $1000 spending money plus lots more (Dyer, 2012, p. 65). 5. To engage the target consumers with a taste of the new through an awareness campaign with the aim of building a memorable brand experience with the consumers (RedBull.com). Target Market Profile Red Bull primary target market the urban young males aged between 16 to 26 years for its new brand. The males are those individuals who live in an adventurous and exciting lifestyle. This are the high-end young adults who “live on the edge” or are trying to live like so and are Their products reflect deeply devoted to modernity, elegance and a sporty world. The youths should be of average built body size and consistently goes to the gym (Red Bull, 2012, p. 8). “The Red Bull Males” will be used to participate in the company’s extreme competitive sports campaigns and other recreational activities that will be organized by the company. The target market will be endorsed under the Generation Y Red Bull team of young active males who need energy to accomplish their projects. Besides the primary target market, Red Bull will target older consumers aged between 25 and 45 years as their secondary target market. These males will be drawn from all walk of life and they will not be segregated on the basis of their financial status. They are also people who live in the suburbs, ghettos or in the rural areas. Their level of education is also varying and share a common physical and mental exertion of wanting their energy boosted (Gilbert et al. 2009, p.35). Position Strategy Statement Red Bull has promised to revitalize the physical and mental fatigue of its consumers after a stressful and draining events. Red Bull Red edition brand of cranberry, lime and will increase your performance, vigilance, and metabolism and enhance your concentration using the healthy conscious energy-based ingredients. Advertising Plan Research has shown that youthful males who are the primary target are deemed to be more attracted to modern forms of media predominantly using the social media. This is the reason the standard Red Bull ad incorporates a Facebook, Twitter and Google+ features. Because the objective of the marketing communication plan is not only to reach the young adults but also the mature adults (secondary market), the advertising plan will also therefore also utilize traditional forms of advertisement mostly the Television advertisement. Advertising-Commercials will be transmitted via the television, radio, newspaper and magazines so that the target market may be have a mixture of both visual and audio expression of the brand. Through the traditional forms of media mentioned here, secondary market will be reached while the primary market will be reached via the social media (Dyer, 2012. P.5). Direct marketing-The marketing team will have a promotional tour where they will visit clubs, casinos and pubs carrying promotional activities. Besides the pubs and the casinos, the team will visit schools and sports grounds and have a face-to-face interaction with the targeted consumers, which will create a lasting image of the new brand. Online marketing- Facebook and Twitter has been activated where the primary target consumers can leave comments, view the uploaded videos by Red Bull and learn of the upcoming events such as Your flight's boarding competition. The interested viewers can then register online. Public Relations-Red Bull will launch a green campaign to promote Environmental Management System so as to keep up with the ISO 14001 Environmental Management Standards and enhance its operating efficiency (Dyer, 2012, p.68). Budget Plan The budget plan will help to evaluate the effectiveness of the media plan, competitors, and market changes. The new product in this case the Red Edition will be instrumental in effecting the media plan captured in the budget plan. The budget plan will also be useful in providing improvement ideas for the future. Most of our budget will be invested in television, newspapers, and magazine advertisements. This is because Red Edition brand is a visual product that can be described to make it easier for the consumers to capture all that the new product offers. Television ads will allow the usage of sound in addition to the visual. In addition it will allow the demonstration of the effectiveness the product or the enlightening advertisement. The target audience will also be reached via the print adverts using beautiful images. The market target is the primary tool that will be used to weigh the budget plan. The target market is always crucial in coming up with the best media plan to use. Red Bull target market will be reached based on the highest sale potential of the existing demographic segments. The demographic segments include; age, marital status, and profession. These are the demographics that have weighed heavily on the existing products for Red Bull. The reason they were weighed heavily on the existing products is because the analyzed MRI data showed high number of BDI per category. This is important in the sales of the new product because sales volume will be high if there is a huge number of difference of the BDI or both the BDI and CDI are high. Table 2 Sources: (Garrison, et al. 2012, p. 118) Conclusion Red Bull believes that with this marketing communication plan and the above media plan and the above budget allocation plan, the company will be able to attain its marketing objectives for the new product. In reference to the success the company has recorded in the past in terms of increased sales linked to advertising, the marketing department plans to set up an innovative advertisement campaign that will be composed of a combination of fresh market ideas and new technological imagery. Red Bull has prepared this budget plan in thorough consideration of its effectiveness and media suitability. Bibliography AMERICAN MARKETING ASSOCIATION, 2011, Marketing Power. Retrieved from http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx Apollo, D 2010, Competitive Intelligence. 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