Communication Mix - Red Bull and Coca Cola - Essay Example

Running Head: MARKETING COMMUNICATIONS Marketing Communications s Marketing Communications Introduction In this paper I shall use two business organizations namely red bull and coca cola in order to proof the importance of a good marketing communication plan. I have used red bull as an example of bad marketing communication and Coca Cola as an example of strong marketing communication mix. Marketing is a series of dynamic activities that focus on the customer to generate a profitable exchange. Knowledge and skills should be available to succeed in the marketing functional areas associated with distribution, financing, marketing-information management, pricing, product planning, promotion, purchasing, risk management, and selling skills needed to help customers make satisfying buying decisions and to solve marketing problems Communication mix is one of the most important promotional tools, or marketing functions used in the implementations of marketing campaigns. Modern commercial advertising is the persuasive force that aims at changing customers' attitudes and pattern of behaviour to a product or service in ways, which would be favourable to the seller. This is necessary as the needs and wants of consumers continually change as they pass through the different economic stages of the family life cycle. The fall in consumer confidence in the travel and tourism sector has prompted the industry to launch specially designed marketing campaigns aimed at restoring confidence levels in the travel industry. The relative importance of advertising has been determined by the qualities it can add to a marketing campaign in the travel and tourism sector. Additional elements of the communication mix compliment advertising however they are not significant or effective enough to replace advertising within this sector. The essential process of communication involves sending messages to potential consumers using a variety of methods in order to create awareness and understanding of why people should purchase a specific product or service. If the method of communication is the most appropriate, then there is a possibility that the potential consumer will buy the product or service. The simple aim being to raise awareness levels, generate interest and to enhance brand development amongst consumers. Advertising is just one element of the 'communications mix'. The simple aim being to raise awareness levels, generate interest and to enhance brand development amongst consumers. Advertising is one of the most important promotional tools, or marketing functions used in the implementation of marketing campaigns. This is due to its persuasive force that aims at changing customers' attitudes and patterns of behaviour to a product or service in ways, which would be favourable to the seller. This is necessary as the needs and wants of consumers continually change as they pass through the different economic stages of the family life cycle. Advertising, along with other components of the 'communications mix' also helps to identify brand identities, the idea being that customers see these identities as being tantamount with quality and dependability. To inform potential customers and users of the existence of the product which can be valuable to the prospective customer To remind existing users of the continued existence of the product and improvements. To regain lost customers and accounts. To stimulate enquiries Analysis Bad Communication Plan: Red Bull How should Red Bull market its brand in the future even though Red Bull has been very successful in the pervious years , but now times have changed thus the organization as well as products must change as well , or else red bull will most likely lose market share to the numerous competitors in a matter a few years . In the early morning and mid night, Red Bull energy drink was once the selected by the people of every field. But nowadays it marketing communication plan has become worn-out, it is old fashioned and not moving with the times. How will Red Bull successful market its brand to fulfil the changing needs and budgets of its customers My conclusion is that we should focus on direct marketing and use this to bring in a more diverse population of users. . Usually the wizards of branding want to be extremely clear about what their product is for and who's supposed to buy it. Red Bull does just the opposite. Everything about the company and its sole product is intentionally vague, even evasive. While the drink appears to be targeted specifically at someone - extreme athletes, ravers, cosmopolitan students - the brand identity is actually pretty nebulous. You could argue that what Red Bull drinkers have in common is a taste for the edgy and faintly dangerous. But what does this really mean Obviously any attempt to articulate such a thing would immediately destroy it. The great thing about a murky brand is that you can let your customers fill in all the blanks (http://www.robwalker.net/html_docs/redbull.html). Red Bull constantly marketed its product to demand to a broad variety of consumers and to be suitable in a diversity of occasions. However the enormous majority of Red Bull's consumers up till now come from the youth (Red Bull utilized as a mixer in pub as well as nightclub). And this is the big issue, because it is easy to lose market share to other mixer beverages, similar to competitive energy drinks or sodas in bars and nightclubs. I am sure that people are less loyal to Red Bull as a mixer beverage than to Red Bull as a pure energy drink. A mixer is 'just' a mixer and easy replaceable, but an energy drink (that really works) is exclusive. That's why Red Bull should be regarded as much more than a mixer beverage. And thus this is also a flaw in their marketing communication plan that they did not represent drink as and energy drink Of course it is very pleasant that red bull's product is sold massively as a mixer, but we can lose this position so easily, which would result in a dramatic decrease in sales. So apparently, in the marketing program of Red Bull, there is too much emphasizing on the youth market and the mixing business, which extremely under valuates the image and competitiveness of Red Bull. Red Bull is well known for its innovative advertising however the product could be in danger of becoming stale. By shunning conventional advertising methods and opting for online advertising and Generation Y cartoon adverts, the aim of attracting 15 - 30 year olds is working, but for how long Combine this with their large investment in extreme sport events i.e. Red Bull Air Race and athlete sponsorship; it has to be asked what do they do next Has it already been done With Red Bull's target market currently aimed at the Generation Y's (15 - 30 year olds) there is the question of whether this generation will continue to drink Red Bull as they grow older. And will the next upcoming generation accept this product as their own. Direct Marketing Using Prints Among the many ways of connecting with consumers, direct marketing is unique and personal. While the challenges of the emerging marketplace are disruptive for the energy drink market, direct marketing could be what keeps Red Bull on top. Why Because the need to reach consumers in a direct and measurable way is growing stronger as a result of new technologies, new consumer expectations, new competitive pressures and new demands for demonstrable marketing return on investment (http://findarticles.com/p/articles/mi_hb4829/is_200308/ai_n17664421). Ever Since its started, Red Bull has hated print advertising as a marketing strategy. Red Bull has also chosen to eliminate billboards, banner ads, taxicab holograms, blimps, and Super Bowl spots as a form of advertising. This could be very beneficial to the company. With advertising in local papers or with large events such as Super Bowl could bring in detailed numbers. Super Bowl advertising has proved to be very beneficial, with more viewers than any TV program. However, Red Bull chooses to use advertising that cost little or nothing. It is found that those affected with direct marketing are more likely to spread the word of mouth about the product. Web-marketing Campaigns and Coupons Red Bull has not also created one web-marketing campaign, nor has it nipped or expanded its product line. This could be another area to expand. Promoting the drink with web-marketing campaigns could add to the many satisfied consumers. To effectively market your Web site you must to run an on-going campaign, exactly like you would for a product or service. The site uses Windows Media player and is extremely advanced in areas, however the website, http://www.redbullusa.com/start.html, does not include an in-depth analysis on ingredients contained in the drink, nor does it expand on any of the history or events which it features. If consumers wanted to learn what was contained in the drink and how they benefit from the product, the information should not only be available, but in abundance. The website is very pleasing to the eye, however lacks the correct information needed by consumers and the correct marketing strategy to properly get the website in the eyes of consumers. Another addition using the Internet could be banner ads. This would bring consumers to the site. Promote a free sample to not only bring consumers to the site but to also satisfy the consumer by introducing them to the product. Many just do not want to waste their money to try something new. By sending a sample, consumers can get a feel for the Red Bull. Red Bull should also promote with coupons, paper or web-based. With an 8 oz. can of Red Bull pulling $ 2.07, the company should use this to lure new and previous drinkers to the product. With the little advertising Red Bull uses, an extra push in one of these areas could prove very beneficial for the company. Red Bull's focus on low cost advertising may be what will put the company under. The company must first focus on the consumers and how they should be reached then use the most cost effective forms, instead of putting the cost before the consumer. With technology increasing, forms of direct marketing are becoming highly popular with not only businesses but also consumers. A spokesman for Red Bull said, "We were the original and there are a lot of people who are trying to copy us, but nobody has successfully achieved that. We still have the market share lead at 86%." But if Red Bull can not pick up the pace with others in this highly competitive market it could be the end for this company who has been known for its marketing strategy. By using print advertising, slightly changing the detail found on the web site, couponing, as well as including a web-marketing campaign, Red Bull might continue to be on top for seventeen more years. Recommendations Red Bull has a great image and is the market leader. Therefore we have two objectives: Maintaining the lead Trying to extend it by creating further consumer needs for Red Bull Product The product is fine as it is, over 60% of the under 30 year old Germans recognise the brand unassisted. People are happy with the product. Only the image can be strengthened. Showed us that in 1998 only 20% of Red Bull's sales were distributed through retail. As Red Bull is a value drink, consumers purchase it rarely. Thus they do not essentially buy the drink in superstore, the buy it at petrol stations or off-licence vendors. As Red Bull has already reached market dominance in the rest of Europe with drastically rising sales figures, the company will have a significant influence on the wholesaler's product displaying policy (PDP). Due to the high correlation among marketing expenditure and the sales of Red Bull in the earlier years, the marketing budget should be increased. Red Bull has improved the budget a great deal ; the aim till fifty percent of revenues but a high percentage of the budget is spent on sponsoring which is usually a set back for red bull and puts a dent in the communication marketing plan . In the future red bull must enlarge the promotion as well as ad-activities so that it can retain the leader position; there will have to be more Red Bull stands at ski huts which will distribute all kinds of Red Bull drinks. A big difference among Red Bull and competitors is that its competitors use of mass marketing as well as direct distribution channels which make their marketing plan better then the old fashioned and unsuccessful plan of Red bull. So that they strengthen their future, red bull should utilize distribution channels as well as larger traditional distribution channels and also must not hesitate to make use of the racks of key stores like Wal-Mart, Kmart etc. Red bull seems to very miserly when it comes to marketing and thus this make their plan a very unsuccessful one, they don't even believe in researching the market. Red Bull should spend money on market research so that they can find out the opportunities they have for product expansion when it comes to taste and packaging as their cans are the usual 8oz. can. Red Bull has to do something about the methods their direct competitors are utilizing as it relates to the mass marketing channels. As mentioned before, Red Bull does not utilize traditional marketing like their direct competitors and might need to do in order to maintain and expand their market share. Because red bull as always paid less attention to compunction marketing plans it has always been in a loss. It marketing plan is so poor that it could not with stand the controversies against it, and thus this spoiled their image. Red Bull is the evident and more open target of different campaigns which harm their image as well as rightful health concerns. Current worries of health concerns, although they are not proven, state that Red Bull has many health risks. Red bull is up till now prohibited in countries like Denmark and many other countries may follow its steps. A number of the controversies also associate Red Bull with possible losses. Even though a lot of these unpleasant statements still have to be proven. Red Bull must create a successful strategy to use public relation campaigns, as well as advertisements, to boost the trust of the consumer on the product. Good Marketing Communication Plan: Coca-Cola Coca-Cola is one of the best known names in the world. The positive attitudes and beliefs keep millions of consumers buying the product over and have helped the company establish loyal consumers. Coca-Cola has built a successful worldwide brand name to millions of people. Coca-Cola built brand loyalty when consumers create a positive attitude based on believes about the product and making the product associated with a positive memory. Coca-Cola has been around for years and many loyal consumers have associated the brand with positive past memories. Loyal brand consumers may associate it with holidays, parties, graduation, playing a sport with friends, first date, seeing a movie, etc. When Coke decided to change its product they did not realize that millions of loyal consumers have associated the taste with a positive fond memory...something that they do not want to let go Less loyal consumers have not associated Coca-Cola with a fond memory so these consumers should not be as upset and should be able to adjust to a different kind of Cola. The less loyal consumers are still brand loyal to the company, and should be able to adjust to a different kind of Coke, but they did not associate a type of fond memory to it so it will not feel like part of their memories is gone. Image and Positioning The position of Coke's products is to provide refreshment for all customers in the world by its unique flavour. Coke had a hit advertisement campaign "Always Coca-Cola," which it introduced in 1993 and discarded in 1999. Last year, it made an effort to update the "Hilltop" commercial for Coke Zero (http://obsisit.blogspot.com/2006/06/coke-hopes-its-new-ads-conjure-up-old.html). The change means Coke wants to catch up with current trends. Coca-Cola is being targeted at all age groups. From five years old to the aged, everyone is being targeted by the Coca-Cola Company. These segments of the market are being targeted by mass advertising, sponsorships, helping the community, and marketing. Even is a firm has a good product, it still needs advertising and promotion. One of the main reasons is to maintain brand image and create brand loyalty. Advertising Brand loyalty is created in part by advertising. One of the main objectives of developing awareness, perceived quality and brand associations is the building of brand loyalty. Apart from the obvious benefits of creating a steady stream of future revenue from loyal customers there are other benefits which include the ability to withstand competitive attracts from new brands, the ability to survive short term interruptions in supply, and the ability to survive changes in government legislation. Brand loyalty doesn't just happen; you have to make it happen. Some products, like soft drinks, experience a 'fad and fatigue' purchasing cycle. People are very loyal about purchasing one particular brand for a period of time. However, they get tired and bored with it and switch to another brand. The switch does not mean that they dislike the brand (they are likely to return to it), but simply that they want to try something new. A job of advertising might be then to maintain interest in the brand to fight fatigue or to stimulate interest to reduce period between times in which the brand enjoys high loyalty. Each year, Coke spends a lot of money in advertising in order to maintain its image. The company is launching a new global positioning, "The Coke Side of Life" in March 2006. In addition, Coke is also going online, offering performances by R&B artist Ne-Yo that fans can e-mail to friends from the Web site (Wilbert, 2006, p. 1). In sales promotion, the company provides quantity discounts. For example, when consumers buy two 2-litr Coca-Cola bottles, they can save $1.48 in Woolworths. In public relations, Coke has done great jobs in environmental protection, education, and foundations. In packaging, the company has pioneered the development of lightweight, convenient packaging and innovations such as six-packs, litter-free ring-pulls, and vending technology, which can suit all requirements. Advertising and promotion play an extremely important role in the soft drink sector. Advertising adds value to products and specific brands by influencing consumer perceptions. so advertising is an important value adding function because when done effectively, brands are perceived as high quality, which in turn lead to increased market share and greater profitability. Furthermore, advertising is helping to build 'equity' that has short term and long-term value in the brand. Thus Coca-cola has a large measure of 'brand equity' and its sales today are as much in response to cumulative build up over the years as in its current investment in advertising. Advertising can be very expensive, but if done right, advertising is more of an investment than an expense. To control the space, what is said, where it is said, and how often, can have powerful influence on the impression left behind. When a brand takes its ad campaign seriously it creates attention, recognition and loyalty. Now a days, the success of Coca-cola as a brand is being increasingly challenged by the introduction of other manufacturers into the market. This increasing competition in a market, which has been dominated so far by Coca-cola, makes the forming and maintaining of consumer-brand relationship and loyalty all more imperative. In order to maintain its competitive advantage, Coca-cola needs to continually develop and reinforce its brand strength providing a distinct differential advantage from other cola products in the market. Due to coca-cola's heritage and long established background they still hold the leading position in the market .A Coca-cola president once said: "the reason for our success is an accumulation of advertising...."(Terhune 2006 p 2) If Coca-cola now is a well-known soft drink brand, it's greatly because supported by effective advertising. Coca-cola websites are completely interactive and have a lot of animated images. The website is divided into two key areas: informative and interactive. Brand culture is enhanced with a series of unpretentious links to such added value initiatives as the coca-cola foundation, investor relations and company news. There is also a site map with a comprehensive page of frequently asked questions. You can also listen to music, get the new coke screensavers; check out the latest promotional events. One major problem for Coca-cola is that is has never been able to separate itself from the image of an overpowering US brand. The US attacks on Afghanistan and Iraq, the support of Israel, have stirred anger in Muslim countries (including morocco) where there has been calls to boycott American products. Coca-cola stands for so much of what the USA stands for. This has forced the company to reconsider its marketing strategies in these areas. The company relations with Arab nations have been sensitive since it opened the first franchised soft drinks plant in Israel in 1960's.now Coca-cola is trying to minimize its American prowess in more and more countries. Multiple Communication Disciplines Coke spends a lot of money in advertising each year, which includes TV, billboard, sponsorships, the World Cup and football game. It also combines digital communication on its Coke.com website. It is not just creating an experience about Coke - it is about the relationship Coke wants to have with consumers, and getting people inspired and getting them to connect (Harwood, 2006, p. 11) To sum up, the company is using different strategies and techniques depending on the country's culture and traditions. Recommendations It is vital to keep integrating marketing communication effectively for Coke to continue its growth and domination in the soft drinks industry. For Coke, it is an advantage to have millions of loyal customers. By using competitive advantage and a combined digital strategy, Coke can not only stabilize its territory, but also can create more profit. Nevertheless, Coke should use their advertising to enhance the message of new products, such as "Coke Zero" which is a no- calorie alternative to Coke Classic. Otherwise, ambiguous products may confuse the consumers Conclusion The red bull and Coca Cola has launched several marketing campaigns in order to create interest by reinforcing image and ultimately with the aim of attracting the consumer. Advertising is the most appropriate communication tool used to reach a large geographical area and being effective and cost efficient at achieving high levels of awareness, informing and reminding, and over the longer term developing and maintaining brands. Therefore, as a result of the research undertaken I feel that advertising alone is not enough to generate sales and a marketing campaign must look to the other tools within the communications mix to generate and assist purchase. However despite this advertising is still the most senior element of the mix and the other communication tools merely compliment advertising as opposed to being effective enough to replace advertising. An important aspect of marketing is that it is dynamic and not static. Organizations, whether for profit or non-profit, must adapt their marketing skills to change both internal and external environmental factors, Those firms that remain focusing on one idea about marketing are prone to failure, most especially when there are very high competitive environments such as; global markets and e-business. We can say that marketing is being constantly changing from time to time. It is as if a new lifestyle of marketing is being created with new generations. Communications in marketing is an essential tool in order to reach out for the customers and by doing so the relationship bond between the two leads to an interest in emphasizing dialogues and creating advertising campaigns that facilitate various types of dialogues to the targeted customers. Of course technology continues to have, an impact upon society. The use of these systems provides the marketer with the ability to react more efficiently and effectively to the customer, adapt to market changes and encourages the customer to adopt the repeated purchasing behaviour in other words to have brand loyalty. The tools and approaches that can be used to improve the relationship between the firm and the general public may be new or revised. In the business environment techniques such as promotion is used in marketing communication to enhance the relationship with the customer. References Harwood, S. (2006) Coca-Cola refreshes Coke brand and site. Revolution. p. 11. http://findarticles.com/p/articles/mi_hb4829/is_200308/ai_n17664421 retrieved on July 3, 2008 http://obsisit.blogspot.com/2006/06/coke-hopes-its-new-ads-conjure-up-old.html retrieved on July 3, 2008 http://www.robwalker.net/html_docs/redbull.html retrieved on July 3, 2008 Terhune, C. (2006). Coke's new ads try to conjure up old magic. Wall Street Journal. p2 Wilbert, C. (2006). Coke launches new ads 'Side of Life' theme aims to reinvigorate Classic. The Atlanta Journal p. 1. Read More