red bull energy drink

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Integrated Marketing Communications Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts - providing they speak consistently with one voice all the time, every time. This is enhanced when integration goes beyond just the basic communications tools. There are other levels of integration such as Horizontal, Vertical, Internal, External and Data integration. Here is how they help to strengthen Integrated Communications.

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Page 1: Red Bull Energy Drink

Integrated Marketing Communications

Integrated Marketing Communications is a simple concept. It ensures that all forms of

communications and messages are carefully linked together.

At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means

integrating all the promotional tools, so that they work together in harmony.

Promotion is one of the Ps in the marketing mix. Promotions has its own mix of

communications tools.

All of these communications tools work better if they work together in harmony rather than

in isolation. Their sum is greater than their parts - providing they speak consistently with one

voice all the time, every time.

This is enhanced when integration goes beyond just the basic communications tools. There

are other levels of integration such as Horizontal, Vertical, Internal, External and Data

integration. Here is how they help to strengthen Integrated Communications.

Horizontal Integration occurs across the marketing mix and across business functions - for

example, production, finance, distribution and communications should work together and be

conscious that their decisions and actions send messages to customers.

While different departments such as sales, direct mail and advertising can help each other

through Data Integration. This requires a marketing information system which collects and

shares relevant data across different departments.

Page 2: Red Bull Energy Drink

Vertical Integration means marketing and communications objectives must support the higher

level corporate objectives and corporate missions. Check out the Hall Of Fame later for more

about missions.

Meanwhile Internal Integration requires internal marketing - keeping all staff informed and

motivated about any new developments from new advertisements, to new corporate

identities, new service standards, new strategic partners and so on.

External Integration, on the other hand, requires external partners such as advertising and PR

agencies to work closely together to deliver a single seamless solution - a cohesive message -

an integrated message.

The many benefits of IMC are examined in the section called, 'Benefits of IMC'.

Benefits of IMC

Although Integrated Marketing Communications requires a lot of effort it delivers many

benefits. It can create competitive advantage, boost sales and profits, while saving money,

time and stress.

IMC wraps communications around customers and helps them move through the various

stages of the buying process. The organisation simultaneously consolidates its image,

develops a dialogue and nurtures its relationship with customers.

This 'Relationship Marketing' cements a bond of loyalty with customers which can protect

them from the inevitable onslaught of competition. The ability to keep a customer for life is a

powerful competitive advantage.

Page 3: Red Bull Energy Drink

IMC also increases profits through increased effectiveness. At its most basic level, a unified

message has more impact than a disjointed myriad of messages. In a busy world, a consistent,

consolidated and crystal clear message has a better chance of cutting through the 'noise' of

over five hundred commercial messages which bombard customers each and every day.

At another level, initial research suggests that images shared in advertising and direct mail

boost both advertising awareness and mail shot responses. So IMC can boost sales by

stretching messages across several communications tools to create more avenues for

customers to become aware, aroused, and ultimately, to make a purchase

Carefully linked messages also help buyers by giving timely reminders, updated information

and special offers which, when presented in a planned sequence, help them move

comfortably through the stages of their buying process... and this reduces their 'misery of

choice' in a complex and busy world.

IMC also makes messages more consistent and therefore more credible. This reduces risk in

the mind of the buyer which, in turn, shortens the search process and helps to dictate the

outcome of brand comparisons.

Un-integrated communications send disjointed messages which dilute the impact of the

message. This may also confuse, frustrate and arouse anxiety in customers. On the other

hand, integrated communications present a reassuring sense of order.

Consistent images and relevant, useful, messages help nurture long term relationships with

customers. Here, customer databases can identify precisely which customers need what

information when... and throughout their whole buying life.

Page 4: Red Bull Energy Drink

Finally, IMC saves money as it eliminates duplication in areas such as graphics and

photography since they can be shared and used in say, advertising, exhibitions and sales

literature. Agency fees are reduced by using a single agency for all communications and even

if there are several agencies, time is saved when meetings bring all the agencies together - for

briefings, creative sessions, tactical or strategic planning. This reduces workload and

subsequent stress levels - one of the many benefits of IMC.

Page 5: Red Bull Energy Drink

RED BULL ENERGY DRINK

Market Review

Canadian Retail market for energy drink is worth approxim $44 million.

Red Bull holds 50% of market share worth $22 million

Consumer often confuse energy drink with sports drinks such as Gatorade and

PowerAde.

Seen as addictive, Drug-infused beverages with negative health implication.

Major beverage corporations are weighing into the energy drink market with

their own variations

Today Youth and young adults are facing increased responsibilities

Competitors Analysis

( Market Share )

Red Bull – 50%

Hansens Natural – 18%

Coca cola ( Rockstar , Full Throttle ) – 17%

Pepsi ( Amp , No fear ) – 10%

Independent / Regional – 5%

Target Market

Young Athletes – Sobe No fear , Mountain Dew Amp

Page 6: Red Bull Energy Drink

The Man’s Man – Moster , Full throttle

Females – Tab , Rockster

Real Competition

Multi – dimensional corporation that are market leaders in several other sectors that

have the ability to advertise infinity because of their substantial budget and brand

leadership.

Media objectives: who will use it?

Women 16-35, comfortable personal income, aggressively pursuing goals, reject some social

conventions (housewife, marriage), Urban, or want to be, secondary target males, similar

demographics – also teens, but inadvertently.

Media objective: why will you drink Red Bull?

Red Bull is the current market leader Independent, it has an European origin which is very

catchy, well-known label, small can Berry-flavoured, carbonated, available sugar-free.

Restorative, vitalizing effects – increases mental awareness. It has all natural ingredients that

TASTE BETTER THAN COFFEE

When?

It has a pulse some media Jan-Aug

outdoor, transit and magazines

Page 7: Red Bull Energy Drink

Heavy Sept-Dec: Back to school, winter season, holiday obligations

Prime time television

Where?

• National campaign

• Focus on urban markets

How?

Transit, outdoor, print, television

Reach is key – moderate frequency to avoid annoying overplay

Female oriented channels

Message should support independence

Event marketing/sponsorship

Target Market Strategy:- 1 year national campaign; climax in the fall and continue at a high

intensity through the busy holiday season;

To maximize total impressions and utilize a broad range of channels, a pulse approach will

be used in scheduling media;

Page 8: Red Bull Energy Drink

A profile match strategy will be implemented; women’s magazines such as Elle Canada and

Lou Lou, television programs such as Canada’s Next Top Model, and Desperate Housewives

Reach/Frequency/Continuity:-

Brand awareness and image are necessary to succeed as campaign must connect with the

target to encourage trial purchase and eventually brand loyalty and the frequency is to ensure

that the consumer recognizes the product’s new image

Market Coverage:-

Trendsetting areas - major urban markets and reaching the trendsetting female is the main

concern of the campaign and the extent of coverage will rely entirely on the substantial

budget.

Creative plan:-

To communicate that Red Bull can restore mental awareness and energize a busy,

independent person

Communicate that Red Bull is an effective, good tasting substitute for other caffeinated

beverages (coffee, tea, pop); and it contains all natural ingredients

To communicate that Red Bull is an independent, edgy brand Creative Strategy

Image:-

Show attractive women consuming Red Bull as a substitute for coffee and other energy

supplements Image

Page 9: Red Bull Energy Drink

The target market will see how effectively Red Bull fits into their busy lifestyle thus

highlighting the small can and the well-known Red Bull label will also create brand

awareness in association with the female market

There must be a clear contrast between the average, dull woman and the successful, vibrant

Red Bull drinker

Tone and Style:-

Humor will be used to stress the advantages of Red Bull over other energy supplements and

competitive brands Tone & Style Appeal Techniques

Appeal techniques:-

The positive aspects of Red Bull will be presented in contrast to the negative aspects of the

alternatives • demonstrated visually as well as implied

Media selection Rationale:-

Still a staple in any major media campaign

Television allows a demonstration of the advantages of Red Bull

Good reach and proven impact.

Magazines:-

The only print media utilized in 2007

Provides critical brand awareness

Page 10: Red Bull Energy Drink

Clear and precise demographic selectivity

Geographic flexibility across many urban markets

Outdoor & Transit:-

Growing in popularity exponentially

Potential for gross exposures far outweighs the lack of target market selectivity

Both mediums can supplement secondary male and teen market exposure

Sales Promotion:- Must encourage the first purchase of the product in store, and make the

new target market aware of the product and its benefits and $800 000 set aside for design,

creation, and distribution of sales promo materials and co-operative advertising costs. Large

displays integrated into the cooler shelves that hold the product with freestanding units at the

point of purchase Sales Promotion

Bull hoof-print stickers placed on the floor leading from the door to the freestanding rack or

coolers. Bull sound when you step on the last footprint Getting Involved

Magazine:-

2 consecutive partial-page ads followed by a full page ad and a full calendar year

They have ads in Fashion Magazines, like Lou Lou, Hello!, Elle (Canadian Edition) which is

a Magazine Total: $1 454 988 Fashion

Page 11: Red Bull Energy Drink

Transit:-

Interior posters – full showing with space in each city will be purchased for 12 weeks but

only run four weeks at a time on a rotating schedule

The Transit Total cost is: $301 815 53 500 Transit

Televisions:-

Target Female Audience, aged 16-35in the month of September-December only

Prime-time programs such as:

The Bachelor

America’s Next Top Model

The O.C.

Desperate Housewives

Extreme Makeover: Home Edition

The total Television cost: $2 237 600

The key point summary:-

1. Target Female Audience, aged 16-35, but acknowledges the old target

2. Focus on gross exposures for brand awareness

3. Integrate into “female culture”

4. Use a variety of media, primarily to support PR and sales promotion themes

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