Executive Summary
This report was commissioned to to plan and develop an integrated marketing communications campaign strategy for Redbull energy drinks. The aim of the report was to rebrand Redbull as an alternative to alcohol on a night out and to recommend ways of increasing sales volume for Redbull energy drinks by 50%. The research draws attention to the fact that Redbull energy drinks already are the number one energy drink in the world with 4.6 billion cans sold internationally in 2011, the market share of Redbull currently stands at 43%. The shares of their key competitors such as Monster and Rockstar were 39%% and 10% respectively. Further investigations reveal that consumers of energy drinks are more conscious of the health related drinks due to over consumption of energy drinks. Consumers who regard the caffeine, sugar levels in Redbull as negative; moreover, since the release of many reports regarding health risks associated with energy drinks. Many consumers sought a healthier alternative, which was delivered in the form of sugar free energy drinks and cautionary warnings on energy drinks. These factors appear to be the major causes for wariness associated with choosing Redbull to be marketed as the alternative to alcohol on a night out. Redbull is the logical choice to be positioned as an alternative to Alcohol on a night out with friends, due to its high market share. The report evaluates the options for Redbull in terms of its integrated marketing campaign and concludes that it would be an ideal candidate to meet the challenge presented by the market and could satisfy the new consumer demand since it uses specifically targeted advertising, integrated and highly interactive social media awareness strategy and public relations initiatives, to our target demographic of 18 to 25 year olds living in New South Wales. It is recommended:
That to ensure a successful reposition and launch of the brand, Redbull energy drinks take immediate measures to launch and promote the socially conscious Redbull alongside its existing product range. That Redbull energy adopt a new fresh, socially aware and conscious image; That part of the relaunch campaign contains product endorsement statements from members of the Redbull partnership program for Pubs and clubs across New South Wales. That Redbull be available in all pubs and clubs that are involved in the
partnership program across the relaunch campaign.
Background
Red Bull was created in 1987 in response to a Thai energy drink, Krating Daeng. Austrian entrepreneur Dietrich Mateschitz modified the drink to appeal to western drinkers. Mateschitz then joined with Chaleo Yoovidhya and founded Red Bull GmbH in Austria. Currently, Red Bull is the most successful energy drink in the world, with 4.6 billion cans sold in 2011. (Red Bull 2012) The above pie chart is a breakdown of the market share of Redbull for 2013. (www.energyfind.com 2013) The company slogan is “Red Bull gives you wings” and the product is marketed through various advertising initiatives including events (Red Bull Air Race, Red Bull Crashed Ice), sports team ownerships (RB Leipzig, FC Red Bull Salzburg, Red Bull Brasil, Red Bull New York, Red Bull Racing, Scuderia Toro Rosso), celebrity endorsements and music, through its record label Red Bull Records.
Marketing Objectives:
Relaunch Red bull in pubs and clubs as an alternative to alcoholic beverages in pubs and clubs. Increase revenue from pubs and clubs by 5% in NSW over a six-month period (June 2013-December 2013). Planning process and campaign will span from December 2012 to December 2013.
Marketing Mix
Target Audience
Primary: Males 18 to 30 who are the designated drivers within any given group. The reason this is the primary audience as males 18 to 30 are the primary clientele for pubs and clubs in NSW. The consumer insight is that males between 18 and 30 are also primary beer drinkers.
Secondary: Males and Females 18-30 who are non-drinkers.
Advertising Objectives:
Change the brand positioning – alternative to alcohol for the designated
driver. Create awareness about the dangers of drink driving.
Promote the sampling of the new red bull by encouraging a partnership program between 100 pubs and clubs across New South Wales. To increase sales of Redbull by 50% by the end of the campaign period 2014. Branding : “Red Bull gives you wheels”
USP (Unique Selling Points): Creating and building upon the association with pubs and clubs. Red Bull is now an advocate for social responsibility. An alternative to alcohol, when on a night out with friends. This fills the need for social inclusion, in a social scenario. Maslow’s hierarchy of needs: love and belonging category. Many people become susceptible to loneliness, social anxiety, and clinical depression in the absence of this love or belonging element. This need for belonging may overcome the physiological and security needs, depending on the strength of the peer pressure. (Maslow A.H 1943) Competitors
Mother
Mother Energy drink , which is owned by Coca-Cola has expanded its Australian range with a new flavour called Mother Green Storm and positioned the product “for consumers who are looking for mother of an energy hit, with naturally soured caffeine” states Steven Ruhl, Mother Marketing Manager.[3] The launch of Mother Green Storm will be accompanied by an integrated marketing communications campaign, including sampling and social media. V Energy.
V, which is produced by Frucor Beverages, a subsidary of Suntory Holdings, accounts for more than a third of total energy drink volume sales across Australia and New Zealand.[4] The launch of sugar-free versions of both V and Red Bull in 2003 is believed to have encouraged the use of glass bottles among diet-conscious female consumers. According to Canadian, sugar-free energy drinks currently hold a 7 per cent category share across Australia and NZ, which is slightly above the global average.[4] Why the Customer will respond favourably?
Cheaper than alcohol
Red Bull compared with other alcoholic beverages per litre.[5]
*All figures subject to change, price as at 15 Aug 2013.
Lower in Calories
Comparing Red Bull to other alcohol beverages and its competitors in the energy drink industry, it is still lower in calories as you can see below.[6] So although it may be perceived by the audience as being high in fat, the facts prove that it is lower in calories, which we will also re-enforce throughout the “anti-drive and drive” campaign.
Socially responsible
As well as deaths, short-term effects of alcohol result in illness and loss of work productivity such as hangovers and/or drink driving offences. In addition, alcohol contributes to criminal behaviour – in 2010 more than 70,000 Australians were victims of alcohol related assaults.[7] Socially acceptable
Excessive alcohol can effect all areas of a person’s life, including family, work and personal relationships such as arguments over someone’s drinking may lead to break up.[7] Why the customer will not respond favourably?
Health Concerns
In the January 2013 issue of the American Drug Abuse Warning Network (DAWN) Report, published by the Substance Abuse and Mental Health Services Administration, energy drinks have been attributed as the cause of over 20,000 emergency department visits in the US.[8] Social stigma
Caffeinated alcoholic beverages (CABs) have also been found, by several studies, to contribute to arrhythmia, severe dehydration, and erratic behaviour. The January 2013 DAWN report out of the US said that 13% of the energy drink-related emergency department visits also included alcohol.[8] Media considerations:
Primary is Digital and Social media (to capture our younger target demographic 18 to 25 year olds) Secondary is Print and television media (to
capture our older target demographic 25 to 30 year olds) Mandatory inclusions:
Red bull Logo
Slogan “ Red Bull gives you wheels”
Health warnings, for legal purposes.
Tone:New, fun and a responsible alternative to alcohol.
Budget: $2 million over a 6-month period for media allocations. An additional allocation of $1 million is allocated for events, agency fees and production. Market Research considerations
According to research from global beverage market research organisation Canadean, energy drinks are a growing sector in Australia and New Zealand. Packaging and Labelling Regulations
In recent years, the glass bottle has declined in popularity because of a move towards larger-sized packs, but is still responsible for 15 per cent of the market share.[4] The popularity of glass bottles reflects a seasonal shift in favour of bottles over the summer months when Australian consumers are outdoors more and prefer the convenience of resealability. In Australia, caffeine is considered a food additive and is regulated under the Australia New Zealand Food Standards Code. Standard 2.6.4 and requires additional labelling advising that the products are not suitable for young children, pregnant or lactating women and “individuals sensitive to caffeine”.[8] Under the Standard, the container of the energy drink must also include an advisory statement recommending consumption to a limit of 500ml (two cans) a day.[9] IMC Materials
The IMC Materials will be broken into two categories: primary and secondary. The primary category will focus initiatives such as: social media, publicity, sampling and competitions. The secondary focus will be on print advertising and television advertising. The print advertisements will be in magazines, on the side of buses and taxis and on billboards and the television advertisements will be run on commercial networks such as 7,9 and 10. Digital stations: GO, 7mate, 7gem. Other pay cable television stations on Foctel will also be included in the campaign. Social Media Campaign
The benefits of social media engagement.
Large organisations should use social media sites such as Facebook and Twitter to interact with customers on a personal level. This allows for real-time feedback and customers to feel sense of empowerment and personal worth. Social media has been proven as the most effective form of advertising to Generation Y. ( Scott M. 2009) Here’s a break down of what Generation Y seeks when using social media. Getting news or product updates (67%)
Having access to promotions (64%)
Viewing or downloading music or videos (41%)
Submitting opinions (36%)
Connecting with other consumers (33%)
This is according to the Participatory Marketing Network, Pace University’s Lubin School of Business’ Interactive and Direct Marketing Lab, and IDC (marketing Charts 2009)
Keeps customers informed of new events, promotions and competitions as they occur.
Informs customers of new services or products. This would involve working with the marketing team to establish the presence of these new products and services.
Updating and relaunching Redbull online across social media channels with constant updates, pictures and news on the marketing campaigns progress on Facebook, Instagram and Twitter is an effective way to build brand engagement, gain brand confidence and understand the different personalities of its potential consumers and their never ending change of preferences. Taking in this feedback, opinions and ideas will provide a sense of reassurance that the brand is prepared to improve their operations and put their consumers first.
Encourage customers to “check in” when visiting Red Bull partnership clubs
through Facebook.
Encourage customers to use hash tags when uploading pictures to Instagram, twitter and Facebook, when on a night out with friends. Some examples could be: #nightout #redbull #gettingmyenergyhit #fun #readytodrivewithredbull.
Encourage customers to interact and take photos with Redbull promotions staff, when on a night out. These also can be uploaded to Facebook, twitter and Instagram.
Online competitions, conducted via Facebook and the Redbull website with the opportunity to win a VIP Night in a club that is in partnership with the Redbull promotion. This will be conducted to encourage consumers to take an active interest in the brand.
Youtube: HD videos will be uploaded to the Redbull channel, including the new advertisements for Redbull. Encourage consumers to upload their own Redbull night out videos and leave them as video responses to the YouTube channel.
Public Relations Promotion strategy
Drink driving and fatigue account for 60-70% of all driving fatalities.[11] Drinking alcohol affects driving skills and increases the likelihood that the driver will engage in risk-taking behaviour. Red bull is perceived by the public as being socially unhealthy, however the benefits from scientific studies such as significant improvements in mental performance including reaction time, concentration and memory are not promoted.[12] Through our anti-drink driving campaign we will tie our promotion, sampling and events with publicity to create positive awareness towards the public. Including press releases to the major newspapers nationally as a tool for mass marketing. The newspapers such as Sunday Telegraph, Sun-Herald and MX. The promotion and sampling will integrate with our social media such as “checking in” on facebook and hash tagging on “instagram”. The Promotion will involve our Red Bull team and partnership with Merrivale, who account for over twenty clubs/pubs across the Sydney business district alone.[13] The idea of the campaign is to inform the public about the risks of
“drink-driving”, this will be done using our fully customized Red Bull driving simulators that will be set up at all the pubs/clubs with our partnership as you can see below.
Participants will be asked to put on our vision impairment goggles as you can see above while trying to drive with our Red Bull Simulation. These vision impairment goggles slow your perception and awareness,which is truly effective way of reinforcing the ‘don’t drink and drive’ message is by demonstrating what it feels like and how dangerous it can be.[14] During the promotion we will be handing out samples of red bull and information about how it has been scientifically proven to improve awareness. TV Advertising
As our target audience are 18-30 and primary clientele for pubs and clubs in NSW, the advertising will be heavy during the weekend periods as consumer insight is that males between 18 and 30 are also primary beer drinkers. Television peak Viewing times were 8 pm for 15-24 year olds and 9 pm for those aged 25-59 years.[15] The TV Advertising schedule will be as follows:
*All figures are according to TV tonight. 25 – 54 Demographics[16] The big idea is instead of NOS, use red bull as high performance as it boosts physical and mental awareness. To be powered by Red Bull or Power Steering courtesy of Red bull. Client: Red BullTitle: “Red bull gives you wheels”
Length: 30 Seconds
Conclusion
Redbull energy drink enjoys reasonable success as an energy drink. However, it also has the potential to be integrated into the alcoholic market as an alternative for those who either can’t drink because they are driving or do not wish to drink. Limitations
Energy drinks also carry the same level of risks as alcoholic beverages, we must be careful with the messages we portray in the IMC tools that we use. Though, the purpose of the campaign is to reposition Redbull as an alternative to alcohol, therefore it is a beverage that should be enjoyed
responsibly. Prospects
By relaunching and repositioning Redbull as the alternative to alcohol, we can expect to increase sales of Redbull, improve the social acceptance of energy drinks in pubs and clubs across New South Wales. By working alongside our partnership clubs and utilising the various IMC tools of promotion, social media and advertising, Redbull can expect to earn above average rate of return on the investment that they budgeted for the campaign.
References
Red Bull (2012). “Company Figures”. Red Bull. Red Bull. Retrieved 7 August 2013 Maslow, A.H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–96. Retrieved from http://psychclassics.yorku.ca/Maslow/motivation.htm retrieved 7 August 2013 AFN. Updated 3 June 2013. Mother introduces new energy drink flavour Available: http://www.ausfoodnews.com.au/2013/06/03/mother-introduces-new-energy-drink-flavour.html (Accessed 7 August 2013) AFN. Updated 22 May 2013. Australia and NZ’s ‘unique’ energy drinks markets. Avaialable: http://www.ausfoodnews.com.au/2013/05/22/australia-and-nz%E2%80%99s-%E2%80%98unique%E2%80%99-energy-drinks-markets.html (Accessed 7 August 2013) Liquorland. Updated 15 August 2013. Coles Liquorland
Available: https://www.liquorland.com.au/lle2e/Pages/default.aspx (Accessed 15 August 2013) Calorie Counting. Updated 15 August 2013. Calories – Drinks Available: http://www.caloriecounting.co.uk/resources/food/calories_drinks.htm (Accessed 15 August 2013) DASSA. Updated 18 June 2012. Alcohol and its effects.
Available: http://www.dassa.sa.gov.au/site/page.cfm?u=122 (Accessed 15 August 2013) AFN. Updated 17 January 2013. Reports on “danger of energy drinks” stimulate Australian concerns. Available: http://www.ausfoodnews.com.au/2013/01/17/reports-on-%E2%80%9Cdanger-of-energy-drinks%E2%80%9D-stimulate-australian-concerns.html (Accessed 7 August 2013)
AFN. Updated 12 December 2012. The most-caffeinated products have the least regulation, CHOICE finds. Available: http://www.ausfoodnews.com.au/2012/12/12/the-most-caffeinated-products-have-the-least-regulation-choice-finds.html (Accesses 7 August 2013) The Social Media Marketing Blog: Advertising to Gen Y on Social Networks. 2013. Available at: http://www.scottmonty.com/2009/03/advertising-to-gen-y-on-social-networks.html. Retrieved 07 August 2013 ATCouncil. Updated 15 August 2011. National Road Safety Strategy Available:http://www.atcouncil.gov.au/documents/files/NRSS_2011_2020_15Aug11.pdf (Accessed 7 August 2013) NCBI. The effects of Red Bull Energy Drink on human performance and mood Available: http://www.ncbi.nlm.nih.gov/pubmed/11665810 (Accessed 7 August 2013) Merivale. Our Clubs
Available: http://merivale.com.au (Accessed 15 August 2013) SDT. Fatal Vision – Drink Drive Simulation Goggles.
Available: http://www.sdt.com.au/safe-drive-products-goggles.html (Accessed 7 August 2013) 15. ABS. Updated 16 December 1998. “How Australians Use Their Time 1997” Available:http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/CA25687100069892CA256889001D5545/$File/41530_1997.pdf (Accessed 3 August 2013)
16. TVTonight. TV Ratings – David Knox.
Available: http://www.tvtonight.com.au/2013/08/saturday-10-august-2013.html (Accessed 12 August 2013)
