Marketing Campaign as an Important Requirement for Red Bull - Case Study Example

Prepared by: Executive Summary Red Bull is an energy drink that is sold across numerous countries. The product was introduced in 1987 and the organisation has concentrated on selling the product to those individuals who want instant rejuvenation both physically and mentally. Red Bull has numerous opportunities to expand based on its strong organisational culture. The segments targeted are based on demographic, behavioural and geographical factors. In addition, four channels would be utilised in informing and engaging the consumers. These four channels include Internet marketing, outdoor marketing, audio and video marketing, and print media. The entire campaign would last six months between August 2013 and January 2014. The campaign would cost $1 million. Table of Contents Executive Summary 2 Red Bull is an energy drink that is sold across numerous countries. The product was introduced in 1987 and the organisation has concentrated on selling the product to those individuals who want instant rejuvenation both physically and mentally. Red Bull has numerous opportunities to expand based on its strong organisational culture. The segments targeted are based on demographic, behavioural and geographical factors. In addition, four channels would be utilised in informing and engaging the consumers. These four channels include Internet marketing, outdoor marketing, audio and video marketing, and print media. The entire campaign would last six months between August 2013 and January 2014. The campaign would cost $1 million. 2 Table of Contents 3 1.0 Introduction 6 2.0 Situational Analysis 6 2.1 Strengths 6 2.2 Weaknesses 7 2.3 Opportunities 7 2.4 Threats 7 3.0 Objectives: 7 4.0 Segmentation and Target Market 8 4.1 Target Market 8 5.0 Positioning 9 6.0 Price 10 7.0 Placement 10 8.0 Promotion 11 8.1 Creative promotional strategy 11 8.2 Print Media 11 8.3 Outdoor Marketing 12 8.4 Internet Marketing 12 8.5 Audio and Video Media 13 9.0 Implementation and Control 14 9.1 Implementation Plan 14 9.2 Communication Budget 15 9.3 Time Scheduling 16 10 Conclusion 16 References 17 1.0 Introduction Red Bull is an international company that produces energy drinks. The energy drink is sold by Austrian and it was introduced in 1987 (Persad et al., 2008). The slogan for the company is “Red Bull gives you wings”. The company also arranges numerous events, sports teams and celebrity endorsements with the aim of increasing its market share. Therefore, the aim of this paper is to analyse and discuss marketing strategy for Red Bull. 2.0 Situational Analysis Red Bull is a major supplier of energy drink and has a large market share. Red Bull accounts to 42% of market share and followed closely by Monster energy drink. According to 2012 sales, Red Bull record sells of appropriately $3 billion sales followed closely by Monster with a sale of $2.6 billion (Red Bull, 2013). To understand how Red Bull has continuously been successful in the energy drink industry, it is important to analyse its operations with the help of SWOT analysis SWOT analyses brings into consideration the strengths, weakness, opportunities and threats associated to an organisation and in this case Red Bull organisation. 2.1 Strengths The strengths associated with Red Bull include: Industry leadership – it accounts to most sales across numerous countries Unique and creative marketing capabilities Good relationship and understanding with major distributors 2.2 Weaknesses The weaknesses associated with Red Bull include: Lack of applicable innovation Reliance on small product base Huge marketing expenses 2.3 Opportunities Some opportunities on which Red Bull can maximise on include: Retail outlets diversification Diversification and extension of Red Bull product line Expanding into extensive geographic area 2.4 Threats Red Bull is faced by numerous threats that include: Concerns associated with health The energy drink market is maturing Awareness of health consciousness by consumers 3.0 Objectives: To achieve any goal, it is important to highlight the objectives of any strategy. The objectives of Red Bull are: To engage with Generation Y’s whose bodies are invigorating To communicate to consumers on availability of the drink for fatigued consumers To maintain and improve the position of Red Bull as energy drink producer and beverage To inform the consumers on threats of associating alcohol with Red Bull 4.0 Segmentation and Target Market Segmentation and market targeting is important to ensure an organisation maximises its minimal resources in ensuring the objectives and strategies are achieved (Gospe, 2008). In segmentation, numerous strategies can be employed based on consumers’ base and also their requirements. The following illustrates the target market and segment analysis. Geographic segmentation – Red Bull aims to increase geographic position through seeking for new markets whereby the products can be sold. Advancement in technology and globalisation are opportunities in which the Red Bull can improve its market share. Demographics segmentation – urban males in ages of between 16 and 29 years are the important market segment in which Red Bull concentrates. The importance of this segment is their constant adventurous, exciting and exerting lifestyle. This age group also participates in sports and other activities that require a lot of energy. Behavioural segmentation – Sports is an important component in younger urban male and they frequent areas whereby instant energy is required (Red Bull, 2013). Therefore, Red Bull could ensure the contents and benefits of Red Bull are understood by the consumers. 4.1 Target Market The approach utilised is multi-segment whereby different segments are concentrated on with the aim of increasing sales and also improving on market share. 5.0 Positioning Positioning strategy is important in ensuring Red Bull becomes successful. Positioning Statement – The aim of Red Bull is to revitalise mental and physical fatigue during straining and stressful situations. Red Bull drink also increases concentration, performance, metabolism and vigilance using ingredients which are health conscious (Red Bull, 2013). Value proposition – the value proposition for Red Bull is its status and self esteem. Moreover, values associated include incentives, rewards and promotion resulting in an aspect of belongingness. Positioning Strategy Map 6.0 Price Pricing is affected by numerous factors that include cost of production and the competitors’ price. The most appropriate strategy for Red Bull is the use of mark up strategy to ensure more consumers purchase the product and also retain the same customers. Moreover, the consumers will be allowed to purchase the discounted product. The aim of this pricing model is to ensure it is easier to attract new consumers and also allows for retaining loyal customers. Moreover, such pricing will play an important role in developing and implementing promotional strategy. 7.0 Placement Red Bull is an international product and it can be purchase by diverse group of consumers (Gospe, 2008). Therefore, it is important to ensure consumers can easily access the product and also to buy the product. Red Bull will employ intermediaries that include wholesalers and retailers. This will ensure the product is available easily to the customers. In addition, the most appropriate distribution intensity is intensive. This approach ensures consumers can access the product at different locations (Red Bull, 2013). For example, the product should be displayed at shop fronts, at the gym and petrol station, and other locations whereby it can be accessed by the customers easily. Utilisation of such strategies ensures more consumers are accessed and also the easiness in which they can purchase Red Bull. 8.0 Promotion Promotion is important because it creates a platform in which consumers can be engaged. The promotional strategy to be employed is focussed on product-lifestyle matrix. This means that Red Bull would be directly linked to a specific lifestyle such as sport. Hence, numerous messages would be formulated and implemented with the aim of engaging more consumers. 8.1 Creative promotional strategy The messages from Red Bull should remind the consumers on its versatility. The consumers should be informed on the energy capabilities of Red Bull to business workers, sports and even students (Red Bull, 2013). The message should inform consumers that it is an effective means of addressing both mental and physical fatigue. Therefore, the central theme is that of Red Bull is all is required. The message would show different job positions and settings in which active males are involved. Moreover, consumers would be encouraged to take Red Bull alone rather than maximising it with alcohol. Numerous channels exist that can be utilised in engaging the consumers. The appropriate medium channel for Red Bull includes: 8.2 Print Media Print outs would be placed inside monthly sports bulletins and also magazines (Percy, 2012). This approach would ensure sport related consumers understand the benefits of the product and how the product can improve on their lifestyles (Red Bull, 2013). Moreover, spaces would be booked in local dailies whereby information on Red Bull can be printed for the general public to access information. This is attributed to consumer behaviour in which they utilise different cues with the aim of appreciating and purchasing a given product. 8.3 Outdoor Marketing Outdoor is an important platform in which consumers can access information on a product. Ten billboards would be hired for six months at strategic places across the major states in Australia. The information would contain different messages in a structure manner whereby the dispensation of information is maximised (Red Bull, 2013). Moreover, ten most important events such as biking, athletics and football would be choose so that information on Red Bull can be advertised and sampled. This is attributed to the fact a larger audience would be accessed with the aim of encouraging word of mouth in the promotion strategy. 8.4 Internet Marketing Internet marketing is the new platform in which numerous organisations utilise in ensuring they engage with the consumers (Barker, Valos & Shimp, 2012). The benefits associated with internet marketing is the easiness of dispatching information and also the recipients of the messages can also become the new senders to their friends. In the case of Red Bull, banners will be created and posted on Facebook and ‘linked’ to specific consumers. Moreover, the consumers would be requested to forward the message to other consumers and the approach would be repeated creating a multiplier effect. Other social media platforms such as Blogs, YouTube and Twitter will be utilised with the aim of engaging more consumers (Red Bull, 2013). Utilisation of different social media will ensure easiness of accessing information regarding a given topic easily. Moreover, Red Bull would post information regarding Red Bull on its home page. This means the website would play an important role in ensuring information is dispensed to more consumers easily. 8.5 Audio and Video Media The radio and television would play an important role in engaging the consumers (Mets et al., 2010). Thirty seconds would be booked in three most listened radio stations and the message should be broadcasted at the peak hours. In the same case as radio, television messages would be both audible and visual and these messages would be broadcasted at the peak hours; especially before and within news hours. This approach would ensure more consumers are accessed across the different segments and targeted groups. The aim of these numerous channels is to maximise on components associated with push and pull strategies. It is important for different stakeholders (customers and distributors) to understand the quality of Red Bull and also benefits associated with Red Bull (Red Bull, 2013). Moreover, if the four channels are integrated and complement each other, the engagement with consumers would be immerse and hence beneficial to Red Bull in terms of sales and also market share. 9.0 Implementation and Control 9.1 Implementation Plan Implementation is an important requirement in ensuring plans and strategies becomes successful. Even the best strategies might not be successful because of poor implementation. Therefore, the following table illustrates the roles, person’s responsible and time span in which these different marketing campaigns would be accomplished. Channel Person(s) Responsible Obligations Print media James, K., and Peter, R. Print media is very important and should be defined in a manner in which it can reach numerous consumers. The persons will be responsible for choosing the most appropriate magazines and also will be responsible for developing the most important messages that can resonate with consumers. Moreover, the persons would be responsible for choosing the most appropriate newspaper to print the appropriate messages. Outdoor marketing William, L., and Smith, K. The persons responsible for outdoor marketing should understand population movements in different states and towns with the aim of ensuring strategic billboards are located strategically. The persons would be responsible with the help of legal department to develop contracts with companies that deals with billboard marketing. Moreover, they would be responsible for developing appropriate messages to be presented to the customers. Internet marketing James, L., and Smith, K. Internet marketing is the most versatile means of engaging consumers. The persons responsible for ensuring information are available online and also messages are posted frequently. Moreover, the persons are responsible for ensuring they respond to questions from consumers through platforms such as Facebook and blogs. This means these individuals have enough experience in online marketing. Audio and video media World Media Consultants It is important to create most appropriate content for video and audio media. The messages and visuals should resonate with the consumers and therefore it is important to utilise a consultancy firm. The audio and video content would be allocated to World Media Consultants. They could be required to develop the content, determine the appropriate time to air the content and also to do a follow up on whether the messages were broadcasted according to drafted contract. 9.2 Communication Budget In ensuring a campaign becomes successful, it is paramount to accord enough finances with the aim of ensuring consumers are informed and engaged. The following are estimates of the budget and some of the requirements of ensuring the campaign becomes successful. Channel Tasks and requirements Estimated Cost ($) Print media Purchasing of appropriate materials such as ink and paper. In addition, the finances would be used to print numerous flyers to be placed inside sport magazines 300,000 Outdoor marketing The finances would be utilised in formulating and implementing outdoor marketing strategies. In addition, the funds would be utilised in travelling and other obligations associated to outdoor marketing 400,000 Internet marketing The finances would be utilised to purchase computers and other peripherals that are required for online marketing and also accessing internet 100,000 Audio and Video marketing The finances would be utilise to engage the consultants, pay the models in the audio and video marketing and also to pay the consultants 200,000 Total 1,000,000 9.3 Time Scheduling The campaign would last six months from August 2013 to January 2013. The following table illustrates time allocation for different messages and channels. The table is formulated in a manner that it complements each other with the aim of achieving the most appropriate outcome. August September October November December January Print Media X X X X Outdoor marketing X X X Internet marketing X X X X X X Audio and video X X X 10 Conclusion Marketing campaign is an important requirement for any organisation and also in the case of Red Bull. Red Bull is an international product and controls a large market share. Utilisation of appropriate marketing campaign ensures more consumers are engaged and informed on benefits of Red Bull. The campaign has addressed numerous media channels and platforms including situational analysis of Red Bull as a company. References Barker, N., Valos, M., & Shimp, T. (2012). Integrated marketing communications, 3rd Ed. London: William Chitty Gospe, M. (2008). Marketing Campaign Development: What Marketing Executives Need to Know About Architecting Global Integrated Marketing Campaigns. London: Happy About Mets, M., Ketzer, S., Blom, C., Gerven, M., Willigenburg, G., Olivier, B., and Verster, J. (2010). Positive effects of Red Bull® Energy Drink on driving performance during prolonged driving. Psychopharmacology, 214 (3): 737–45. Percy, L. (2012). Strategic Integrated Marketing Communications. London: Routledge Publishers Persad, N., McQueen, C., Shields, K., and Clauson, K. (2008). Safety issues associated with commercially available energy drinks. Journal of the American Pharmacists Association, 48 (3): e55–63; quiz e64–7. Red Bull. (2013). Home. Retrieved from http://www.redbull.com/au/en Read More