Integrated marketing communications plan kinh tế quản trị, quản trị kinh doanh

1.3 SWOT Analysis Strength Strong Market Leadership Red Bull is the world’s leading energy drink through strong brand equity.. Moreover, Red Bull promotes itself strongly using slogan su

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1, Situational Analysis

1.1 Internal Analysis

Red Bull is one of the greatest energy drink companies in the world The iconic Blue and Silver can has become a symbol for vitality, helping people with work and play Its catchphrase, “Red Bull gives you wings!” is a testament to the sort of imagery

energy drinks wish to portray

The brand “Red Bull” came in to existence in 1984, with its first product launched in

1987, making it a pioneer in the global energy drink market The idea came about to

Mr Dietrich Matechitz while in Thailand He noticed managers drinking a beverage called “Krating daeng” prior to meetings to stay awake and focused Upon trying the beverage, he found it to have a relieving effect on his jet lag He went on to

collaborate with the creator of the drink, Chaleo Yoovidhya, and thus developed a

marketing strategy to sell the drink, naming it Red Bull

The drink consists of various ingredients such as caffeine, carbohydrates and other

important vitamins which are claimed to be helpful in developing physical endurance, improved reaction, concentration and speed

The advertising slogan, “Red Bull Gives you Wings”, has been instrumental in

bringing awareness and popularity to the drink It is popular among men, with its

largest consumer groups comprising athletes, students, night clubbers and those who are in need of a late night lift

Red Bull has been successfully established across the world and was made available

in 162 countries as of year 2010

The main Micro-economic factor that Red bull faces would be their many

competitors, ranging from 300 newly established brands to massive corporations such

as Coca Cola Company, PepsiCo, Hansen Natural Inc and Rockstar International

However, these so called ‘massive corporations’ do not hold much market share in the energy drink market Nevertheless, Red Bull has had to keep tabs on them 1n order to keep their lead Competitors provide alternate taste selections, compared to Red Bull’s

limited line Additionally, established companies such as Coca Cola and PepsiCo have extensive distribution networks and possess more established brand names 1.2 External Analysis

Red Bull Marco-economic factors will be identified with the PE.S.T model of analysis Political, Economic, Social and Technological factors

Politically, with the growing demand for energy drinks and possible side effects arising from highly caffeinated drinks, respective governments might devise regulations for the drink to be clinically tested In situations whereby the local government imposes health and safety restrictions, Red Bull sales would drop as the amount of cans sold is affected Some countries have even banned Red Bull as they feel the product poses a threat to health and safety Nevertheless, many countries have accepted Red Bull as an energy drink brand

The economical factors indicates that consumers will most likely cut down on energy drinks when there is price inflation, due to the reduction in the disposable income of the consumers Also, studies have shown that energy drinks are not deemed as necessities to consumers, and they would rather save up on such purchases to get more essential items

The Social factor points towards a generation with youths that are increasingly exposed to different sports and avenues for entertainment In light of this, Red Bull has positioned itself as a drink for youths, and with the right promotional mix, these could lead to an increase in sales

In order to make its brand relate to the masses of a country, Red Bull will produce labels in the respective country’s language With this, a higher cost is incurred when launching the drink in different geographic areas Nevertheless, Red Bull recognizes the importance of communicating its brand identity as this would bring about an increase in brand equity and thus, sales revenue in the future

With the advancement of social media and technological platforms, Red Bull has had

to improve its communication strategies and promotional tools to be more effective and relevant These help to advertise and promote the product, therefore providing a new way of communicating with the consumers Promotional tools such as social

media outlets like Facebook, Twitter and Instagram has had massive effect on the consumers, especially the youth as they can better relate to these tools

Machinery technology has also aided the company to reduce cost as more drinks can now be produced at a cheaper cost, a la economies of scale, improving the quality of the packaging as well

1.3 SWOT Analysis

Strength

Strong Market Leadership

Red Bull is the world’s leading energy drink through strong brand equity The energy drink is exclusively produced in Austria and has been exported to more than 100 countries worldwide They enjoy outstanding sales which dominate the energy drink market with a 70% share of the world’s energy drinks market Strong Marketing Effort

Red Bull increased its consumer brand awareness by having marketing campaign targeted towards 18 — 25 year olds A different approach was taken

by sponsoring events such as Formula | driving, BMX biking and other extreme sports This is to create a consumer base and increase the demand in a particular market segment including people who like extreme sports Brand ambassadors — ‘Red Bull Girls’ were also conceptualized and hired to deliver the product Moreover, Red Bull promotes itself strongly using slogan such as

“Red Bull Gives You Wings” — a metaphor that allows consumers to know it’s

an energy drink that allows them to revitalize and energize themselves Weaknesses

Lack of Patent

A major weakness is Red Bull’s lack of patent in the recipe This allows competitors to copy their recipe and enter the market easily Furthermore, competitors may then use this as a starting place to launch its own unique selling point

Small Product Base

Red Bull have a narrow product (line or range) and only market energy drinks

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along with a sugar free variety As market fluctuate, energy drink and sports drink will be vulnerable as it is the smallest segment in the overall soft drink market, thus competing with the soft drinks market will be of a disadvantage Consumer’s interests are changing toward healthier alternatives such as non carbonated, decaffeinated, fresher drinks

Opportunities

Extension of product line

An extension of product line will aid them in increasing the market share Competitors faces high barrier of entry as competitors entering the market incur extensive marketing and promotions and Red Bull is already in the market It is most likely that a new product as an extension of an existing brand will succeed best, Eg: a better taste in Red Bull By introducing a new product, Red bull can use their strong brand awareness in promoting its new product

Patency

Red Bull should do licensing to their patency This is to prevent competitors from entering the market easily It will restrict the competitors from manufacturing, copying and selling the drink

New Market Opportunities

Consumers tend to mix Red Bull with various types of liquor Red Bull could consider venturing into new target market In Singapore, increasing trend has shown in the number of party goers over the years With the sales of Red Bull

in night pubs and clubs, it will further boost the revenue of Red Bull Price Competition

In the energy drink sector, competitors will strive to maintain high level of quality, convenience, price and related factors so as to stay competitive and bring higher satisfaction for consumers Therefore, Red Bull has to be conscious of its pricing strategy and product quality to ensure the satisfaction level of consumers, in which bringing about brand loyalty

Threats

¢ Health Concern

Media have reported that Red Bull has ingredients which contribute to certain health risk In France, the authorities has gone one step further by banning the Red Bull product for sale, believing that it is not in compliance with the country’s health and food regulations Other media reports have also been targeted towards parents, stating the high caffeine levels in Red Bull could be hazardous if consumed by children/teenagers, who are exactly the product’s target audience Red Bull has stepped up their measures in health safety by seeking scientific proof that its product is safe for consumption and released numerous statements to curb the negative media attention

¢ Competition

Competition would most likely be one of the biggest threats to Red Bull these days Major competitors such as Coca Cola and Pepsi have launched their own energy drink versions to compete directly with Red Bull’s products

¢ Ability to gain new customers and retain current customer loyalty Currently, the main target market of Red Bull are the Generation Y and Millennial consumers Because the youths of Generation “Y” and Millennial are more adventurous, more acceptable to change and is often than not a brand switcher, thus it 1s difficult to maintain brand loyalty from them should a new and better product arises

e Above Average Price

The comparison is between Red Bull and its competitors, Monster and Rockstar The price of a Red Bull a 500ml can is $3.90 while it costs $2.55 each for Monster and Rockstar The carbohydrate content of Red Bull is 28 grams Itis 27 grams and 31 grams of carbohydrates for Monster and Rockstar respectively The caffeine content of Red Bull is 80mg and 160mg for Monster and Rockstar

By looking at the statistic, Rockstar will be the biggest threat for Redbull as Rockstar give a cheaper price and it will energize consumer more due to its high caffeine and carbohydrate

2 Identification of Market Problems and Opportunities

Red bull is currently the market ‘King’ in the energy drink sector, having up to 43% market shares globally, and as the energy drink sector is growing rapidly in the soft drink sector, Red Bull is seen to have much potential growth in the near future They sold approximately 4billion cans of Red Bull yearly over 160 countries, and records have shown that there have been a consistent growth over the years By focusing on selling the concept of energy drink before it sell its product, Red Bull single-handedly pioneered and breakthrough a global market for itself

With the society getting more affluent, buyers’ behaviour are constantly changing, hence much research has to be done on human and buyer’s behaviour This is to determine how Red Bull can effectively and efficiently reach their target audience as time and generation goes by

With the entry of other competitors and their marketing advertisements and gimmicks,

it causes too much clutter making it harder for Red Bull to sustain the image in the consumers’ mind, thus Red Bull needs to constantly come up with creative and good marketing promotion

The conscious image that Red Bulls has in their audiences’ mind 1s that they are a reliable and dependable brand of energy drink, however one will only buy it when in need of energy or revitalization Sub-consciously, there are those that felt Red Bull is not a healthy choice It has not really been able to replace most of the soft drinks as people’s choice although it has went into the soft drink market

However Red Bull has forecasted potential in the soft drink and entertainment sector Many are using Red Bull in alcoholic beverages in clubs, pubs and parties Seeing much prospective here, Red Bull is moving toward these sector

3 Campaign Target Audience

14-25 Generation Generation “Y” in 1980s to 2000s

Occasions

Benefit Soughts Energy Boost- to charge themselves up with a drink

Usage Rate Medium to heavy usage Drink Red Bull when feeling tired

User Status Regular users

Loyalty Status Strong loyalty (brand recall)

Opinions Knowing that they will be recharged after drinking Red Bull, and that

Red Bull will help them to reach their full potential

3.1 Brand Loyalty

Red Bull has already enjoy a certain level of market awareness as the energy beverage

in which it has the ability to recharge and revitalise them, in light of that, we would like them to stay committed to the brand and try out the new Red Bull beverage willingly We will align our advertising campaign in conjunction with our established brand attitude We aim to increase brand loyalty when the target audience identify with the brand attitude

Brand attitude brings about product differentiation, which Red Bull aims to leverage upon as the preferred energy drink With the aid of media technology, we aim to increase the emotional attachment and experience with Red Bull in a much relatable and receptive manner

3.2 Behavioural Sequence Model

Behaviour

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As of year 2012, the market share of Red Bull 1s 43% which 1s the highest measured

up to Monster and Rockstar which is at 11% and 37%

The carbohydrate content of Red Bull is 28 grams Itis 27 grams and 31 grams of carbohydrates for Monster and Rockstar respectively Carbohydrates will be able to give the young sports enthusiasts energy for their everyday lives The caffeine content

of Red Bull is 80mg and 160mg for Monster and Rockstar (Heckman, Sherry & Gonzalez De Mejia 2010)

Red Bull Flux will be a new product line within the established brand The marketing objectives are to identify Red Bull Flux as an exciting new flavour in the Red Bull product line By increasing brand awareness, we aim to positively influence purchase intent and hence brand switching from competitors to Red Bull products Ultimately, the launch of Red Bull-Flux is to increase brand loyalty among existing energy drink consumers and hence customer lifetime value

5.1 Marketing Objectives

* Achieve can-sales of Red Bull-Flux

0 400,000 during the first 6 months of one year,

0 1,500,000 by the end of the year

` Achieve market share of energy drinks market

0 By 10% in the Singapore Energy Drinks Market

` Achieve net profit of Red Bull

0 By at least 8% at the end of the year

5.2 Communication Objectives

The aim is to establish Red Bull Flux as a flavour in alternative to the original Red Bull and Sugar-free Red Bull products, and in doing so, divert consumer attention and market share away from competitors To achieve this, we aim to increase awareness of this new product among existing Energy Drink consumers by at least 70% through various IMC plans This will be done by solidifying the brand attitude, and

communicating brand identity in order to improve purchase intention At least 15% of our target consumers will regard Red Bull Flux as the preferred alternative choice twelve months after product launch Lastly, the communication objectives aim to increase brand loyalty-measurable through an increase in market share

This will be achieved through the hierarchical effects of communication, beginning from awareness to knowledge to liking to preference to conviction to purchase

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Furthermore, it will be aligned with the yearlong IMC plan, with the initial stages focusing on building awareness and then working down the list

Primary Target Audience (Youth aged 14-25)

Product launch of Red Bull- Flux

0 At the start of financial year 2013 in April

Generate awareness of Red Bull- Flux

0 from 0% to 40% among Energy Drink consumers during the first 6 months of one year;

0 increase to 70% among Energy Drink consumers by the end of the year

Improve knowledge of Red Bull- Flux among target audience

0 By 60% by the end of the year

Generate positive association in Red Bull- Flux

0 by 20% during the first 6 months of one year

0 40% by the end of the year

Increase the brand value of Red Bull- Flux

0 to target consumers by 15% by the end of the year

Increase brand preference toward Red Bull- Flux

0 Away from competitors by 10%

Establish brand trust of Red Bull as the preferred Energy Drink Choice among target consumers

0 by at least 20% in the first 6 months and 30% in the next 6 months Increase brand loyalty by an overall of %15

6 Marketing Budget

We will be using the Objective and Task method, which our goal is to have 1 5 million cans sold in one financial year Our projected target will be $3,000,000, in which we will use 30% ($900,000) of it as our IMC budget Every amount stated will Justify the advertising activities which help us to achieve our objective

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Media Advertising Cost 85% ($732,000)

(inclusive production cost)

Other IMC Cost 10%($86,200)

Evaluation and Control 5% ($43,100)

Various medium such as Advertising, Sales Promotions, Sponsorship and Interactive Communication will be used to aid us in reaching out to our target audience These various medium are the selected few whereby it would have the most effective reach

to our target audience

Red Bull will be advertising in a way whereby it will appeal and excite the target audience when they watched the advertisement This is to enhance awareness for the

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product and to gamer higher attention High quality and aesthetically stunning visuals will be used in advertisement to enhance visual messages, bringing about a high

adrenaline, an atmosphere of hype and vibrancy The advertisement will aim to give a different opinion and perception of Red Bull, as not just another energy drink, it is a

drink in which it can still give the effect of Red Bull but with a new and refreshing

taste Through the advertisement, the energetic and adrenaline pumping visuals effect will invoke emotions in the audience, making them feel pumped up and excited to try out the new beverage, connecting similarities with the target audience

Beside advertisement, Red Bull has also come up with Sales Promotions to attract the audience to have greater purchase satisfaction for buying more at a cheaper price

Red Bull will also be sponsoring major events financially and logistically should the

events’ needs arise On top of that, endorsers will be scouted to endorse for Red Bull

Flux, who will also be featured in various prints advertisements The endorsers will be the face of Red Bull Flux in events, representing the drink, interacting and

communicating with the audiences The other trademark of Red Bull will be its very

own Red Bull Brand Ambassadors- The Red Bull Girls They are the face of Red Bull, representing Red Bull and its brand to various minor and major events to promote the Red Bull beverage, bringing about a higher appeal for the brand and generating

Reach Effective Reach Frequenc

(+1) (+3) y GRP | ERP Cost Continuity

October - December

Gross Rating Points (Reach * Freq * Months)

Effective Rating Points (Eff Reach*Freq*Months)

9.2 Media Vehicles Timeframe

May Red Bull Flux - Prints(Billboard, Magazines, | To create and raise awareness

2013 Charity Run Posters) (Informing stage)

Registration - Digital (Facebook, Twitter)

June Red Bull Flux - Public Relationship (Event

2013 Charity Run Sponsorship, Endorsement)

- Sales Promotion

2013 - Digital (Facebook, Twitter) Influencing stage

September Formula | (F1) - Public Relationship (Event

2013 Grand Prix Race Sponsorship, Endorsement)

2014 - Digital (Facebook, Twitter)

March Men’s Health - Public Relationship (Event

2014 Urbanathlon Sponsorship, Endorsement)

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10.1 Cinema Advertising

Cinema Advertising is an effective form of communication as it visually

communicates to our audience Even though cinema advertisements could be expensive, but it has the ability to enable viewers to watch the advertisements with minimized distraction In present days, youths are more positively inclined towards cinema advertising as compared to traditional TV advertising

Due to the fact that our target audiences are sport athletes, thus training would inevitably occupy most of their time in, thus coming in touch with television programmes would be a rarity Cinema Advertisement would be the ideal form of marketing communication because chances of them visiting the cinemas and watching

a movie would be of a higher chance as compared to television programmes

In collaboration with the cinemas, the block- bluster movie package has been selected

in which the company would be able to screen a 30 seconds advertisement in upcoming movie hits 2 block buster movies, specifically Jron Man 3 and Man of Steel, would be a major top seller in ticket box office, thus selecting to advertise in these 2 movies prior to the start of the movie would bring about a greater level of awareness to the youth It will be advertised for a month prior to the registration of Red Bull Flux Charity Run to allow them to be aware of the event It will be aired from 15 April to 15 May 2013

The Cathay, Shaw House and Golden Village are the 3 major Cinema houses in Singapore and they will be selected to aired the advertisements Specifically, advertisements will be aired in Shaw Lido, Golden Village (GV) Vivo City, GV Plaza and GV Marina, Cathay Cineleisure and Cathay: The Grand Cathay Reason for selecting these cinemas is because these are the places in which youth would spend their time at and more than often, various youth activities are held there For example, Cineleisure is right beside Youth Scape Park in which youths hang around there for activities such as skateboarding

*(please refer to appendix 1)

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Singapore has 19 radio channels in context, reaching mass audiences and specific segments of youths anytime of the day when they were to tune in to the specific broadcast frequency Generally, peak hours for radio broadcasting would be in the morning and evening period, whereby the mass public would be travelling to and fro from work

In retrospect, the purpose of using radio broadcasting would be to inform and educate the public, especially the youth, about Red Bull Flux Being able to listen to the advertisement is one of the simplest way for listeners to be exposed to our

advertisements However, short-comings of radio broadcasting would be that it stands

a chance in which listeners might not be paying attention to the verbal advertisements

or it lacks in visuals to exude and gain the attention of the listeners

Specifically “Kiss” FM, 92FM, and Singapore No.1 Hit Station, 98.7FM have been selected to broadcast and advertise our advertisements

98.7FM is the top English radio channel in Singapore, mainly catering to the younger generations of the public, aged 35 and below It is more of the mainstream channel that broadcast pop and R&B music in the music scene Having 98.7fm to advertise for Red Bull Flux, it will generate appeal for listeners and bring youthfulness to the image of the drink

Kiss 92FM is another English language radio station that would steer more to the working generations It is more of an adult contemporary broadcast channel which caters to the working adult and has programmes concerning current affairs and businesses Having them to promote the drink would be able to bring out the other side of Red Bull Flux- that it is not a drink that caters only to the youth, but it also helps tired working adult to have more vitality upon consuming the drink This would portray age flexibility in the usage of the drink such that it will be an energy drink for the young and working adults

Durations of the broadcast will be every alternate days in a week for 1 month prior to the Red Bull Flux Charity Run This would serve to inform the public about our new

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