CASE STUDYIMC PLAN

GSD

THE PROBLEM

Red Bull currently has very successful marketing and advertising efforts. However, it currently does not have a great female presence. Additionally, Red Bull’s competitors are gaining more Market Share in their category. We have been given the task to create a Campaign and IMC plan that will help Red Bull increase sales by 5% in the 2016 fiscal year.

CRITICAL FACTORS> Several Established Promotional Events

> Competitors are Creeping into the Market

> Digital Presence

> High Price

> Target Audience

ADVERTISING OBJECTIVES

PRIMARY OBJECTIVES >Increase positive brand perception among 18-24 year olds. >Increase product purchase consideration among 18-24 year old. >Establish Red Bull as the #1 energy drink for college-ages students.

SECONDARY OBJECTIVES >Increase brand awareness for females by 15%

>Increase product purchase for females 20%

Red Bull’s competitors, primarily Monster, have been flooding the market and gaining a high percentage of loyal consumers within the college-aged demographic. We hope to regain market share with this key demographic, which is valuable to Red Bull as an energy drink company. If we do nothing, then our competitors will continue to capitalize on this market and Red Bull will be out of sight and out of mind of college-aged consumers. Furthermore, Red Bull has a shockingly low female index rating. We hope to craft a gender-neutral message that appeals to women without isolating our current brand loyalists.

COMPETITORS

Monster is extremely oriented toward a younger male audience. Many ads are targeted toward specialized groups, such as gamers and extreme sport enthusiasts. Much of the marketing strategies revolve around sponsoring public events or celebrity endorsements. Monster’s logo resembles adrenaline, power and testosterone, reflecting its motto “Unleash the monster within.”

Targeting younger adults who have become more accustomed to energy drinks as opposed to coffee. Appeals to a more white-collar, “hard-working” individual more than just extreme sports enthusiasts. Not targeting teenagers, but rather older professionals who need an afternoon boost.

COMPETITORS

TARGET AUDIENCE Our target market are college students and everyone aged 18-24. We will target our demographic on college campuses and in major cities. Our target is hard working, and enjoys sporting events and extreme sports. Our target enjoys drinking alcohol at bars or sporting events, and it is popular for them to mix Red Bull with their alcoholic drinks. Furthermore, our target is athletes that need an extra physical or mental boost. Geographically speaking, Red Bull is very evenly distributed across the country.

GEOGRAPHIC PROFILEClevelandLos Angeles DetroitChicago

HoustonBoston San AntonioMiami

Atlanta

Maintain Strategy

Extremely Aggressive Strategy

Aggressive Strategy

Aggressive Strategy

BDI

CDI

GEOGRAPHIC PROFILE NEW TAGLINE

RISE ABOVE

TRADITIONAL ADRISE ABOVE

SOCIAL MEDIA AD

Rise Above

RISE ABOVENASHVILLE, TN

RISE ABOVEDALLAS, TX

RISE ABOVE

SUPER BOWL AD

IMC PLAN ELEMENTS > Advertising > Public Relations > Event Sponsorship

OVERALL TARGET AUDIENCE > Males and females 18-24

OVERALL BUDGET

$66,530,000

MARKETING OBJECTIVESPRIMARY OBJECTIVES >Increase sales by 5% in the 2016 Fiscal Year >Top energy drink purchased by 18-24 year olds >Drive traffic to App through Sales Promotion

SECONDARY OBJECTIVES >Increase brand awareness for females by 15%

>Increase product purchase for females 20%

IMC ELEMENTS

PUBLIC RELATIONS

ADVERTISING

EVENT SPONSORSHIP

ADVERTISING Advertising is the most effective way to reach our target. Our media slots have the highest index rating with our target audience, and we will target a large amount of our audience in a very effective way. Essentially all of our promotions and campaign rely on advertising to succeed. Therefore, it is not only the most important element of IMC that we will use, but hopefully the most successful.

14%  

58%  

4%  

7%  

6%  7%   4%  

Amount  Spent  

Cable   Network   Magazine   Internet  

Social  Media   Outdoor   Internet  Radio  

$51,580,000

EVENT SPONSORSHIPWe are sponsoring Bonnaroo. Hailed as one of the top music festivals in the world, Bonnaroo is a prime festival for those within our age target. The Bonnaroo brand, and the image of music festivals in itself, is a fine complement to Red Bull’s image. Additionally, we will sponsor women’s sports and the X-games to help achieve our secondary objectives of reaching women. We will also help with the I Heart Radio Festival and sponsor select college football games.

$14,950,000

3%  

34%  

42%  

8%  

13%  

Amount  Spent  

iHeart  Radio   Bonaroo   College  Sports   Womens  Sports   X  Games  

PUBLIC RELATIONS

Through the duration of our campaign, we will pay a PR firm monthly to manage Red Bull’s publicity – both from sponsored events and advertisements. They will be responsible for contacting buzz blogs and websites and keeping them informed with our events and marketing efforts. Because of the recent lawsuits against Red Bull’s previous slogans, they will also be handling any possible damage control.

$1,800,000

SALES PROMOTION PLAN Our campaign is primarily focusing on consumer promotions. This is because we have greater control over our campaign, and we have a greater chance of inducing brand switching away from our competitors. Furthermore, we can stimulate repeat purchases of Red Bull and increase brand loyalty. We will use promotional sales to push Red Bull onto college campuses.

Frequency Programs

Sweepstakes

College Edition Promotions

Red Bull currently has an app that connects users with “stories that fuel your inspiration.” Consumers can browse through images of action sports, follow Red Bull sponsored athletes, and watch videos of events like Red Bull Flugtag. We propose that Red Bull introduce a points system that combines its product with its app and awards consumers for their purchases. Consumers can either scan their can or enter a code into the app and receive points based on the size and quantity purchased. For newer products that Red Bull is introducing to the market, such as Orange, Cherry and college edition cans, users can receive more points. In addition, some codes (approximately 1/25) will be deemed “Lucky Bull” codes and consumers will be able to redeem a free 12 ounce can.

FREQUENCY PROGRAM

FREQUENCY PROGRAMPoints8 ounce can – 100 points12 ounce can – 150 points16 ounce can – 200 points20 ounce can – 250 pointsOrange edition 12 ounce – 200 pointsCherry edition 12 ounce – 200 pointsYellow edition 12 ounce – 200 pointsCollege edition 12 ounce – 250 points4-pack of 8 ounce cans – 500 points12-pack of 8 ounce cans – 1750 points

Awards2,000 points: Free 12 ounce can5,000 points: Free 4-pack10,000 points: Free 12-pack1,000,000 points: Free ticket, lodging and flight to Red Bull-sponsored event of choice.1,500,000 points: Free ticket, lodging and flight to spend a day with a Red Bull-sponsored athlete of choice and watch them perform.

FREQUENCY PRIZES

SWEEPSTAKES In addition to the point based sales promotions, we are having a sweepstakes that ties into the app as well. For every 1,000 points, users are entered into a sweepstakes to have “The Ultimate Bonnaroo Experience,” including the chance to go backstage and hangout with Macklemore for a day. The winner and ten of his or her friends will be flown out to Tennessee with VIP weekend tickets to Bonnaroo, with all expenses covered. The winner will get a meet-and-greet with Macklemore and the opportunity to watch him perform at Bonnaroo in the VIP section.

SWEEPSTAKES We plan on purchasing the rights to developing college-themed Red Bull cans for 25 of the most prominent football universities. We’ll feature each universities’ can in specialized ads and promote them during both game days and testing periods (i.e. Rise Above on Game day, or Rise Above on Finals Week). This will generate publicity and attach a positive brand image with Red Bull, when aligned with consumers’ universities.

COLLEGE EDITION PROMOTIONS

Mock-up of what College cans would look

TIMELINE

FLOWCHART

REGIONALITY

LOS ANGELES / SEATTLE / DALLAS / NEW YORK / TAMPA HOUSTON / AUSTIN BOSTON / CHICAGO / COLUMBUS / SAN DIEGO

DENVER / NASHVILLE SAN FRANCISCO / ATLANTA / PORTLAND PHILADELPHIA / DETROIT / ST. LOUIS / MINNEAPOLIS

SEASONALITYWe will have a year-round pulsing method, with a focus on specific events during the academic year. This includes finals weeks (early May and December), spring break (Mid-late March) and summer break (June – August). These times are when energy drinks become most relevant to college-aged consumers and will put the brand foremost in their minds.

SPOKESPERSON

We believe that Macklemore’s music, personality and personal image represent Red Bull’s brand message as a celebrity endorser. Macklemore has an energetic and progressive image that complements Red Bull and our target audience well. Based on our research, we found that hip-hop concerts are attended far more than any other genre by 18-24 year olds. In addition, Macklemore’s 2014 album, “The Heist,” sold very well and was awarded a Grammy for best rap album – making Macklemore a very relevant figure. Macklemore has very positive publicity for his open-minded and peaceful messages, making him a stable representative for the Red Bull brand and appealing figure to our target audience.

EVALUATIONPRE TESTING > Coincidental Survey

> Attitude Tests

> Advertising Tracking Research Measures

> Advertising Tracking Research

>Comparative Testing

POST TESTING >Brand Linkage Tests

>Likability Tests

>Persuasion Tests

>Comparative Testing

FOCUS GROUPS

GOOGLE ANALYTICS

TEXT-MINING

PROS & CONSPROS >We have a clear objective and target market. >We have a relevant message to college-aged consumers. >Our social media ad is innovative and likely to receive positive publicity. >We are confident that Macklemore will resonate with our audience. >Our message steers away from Monster’s over-the-top masculine marketing

CONS >Unsure if our message will pierce the minds of those loyal to our competitors.

>Will our target audience find our ads trustworthy?

>Requires our audience to utilize our social media ad and sales promotion.

>Extra costs to purchase college licensing rights.

EXPECTED OUTCOME

We expect that Red Bull will begin to shift its way into becoming the prevalent energy drink brand for college-aged consumers. Our target will start considering Red Bull more, while considering our competitors less. Those within our target that are put-off by energy drinks’ with excessive masculine messages will find Red Bull’s cool, mass appeal refreshing. Furthermore, we expect women to think more positively about the Red Bull brand and product purchase to increase among females. Throughout 2016, we expect sales to rise by 5% and for Red Bull to eventually become the number one brand for college-aged consumers.