Red Bull Energy DrinkIntegrated Marketing Communications Plan

Prepared By:

Charles Johnston

Kaitlin Bennett

Rebecca DiCola

Nicole Veri

Ryland Thiel

• Canadian retail market for energy drinks is worth approximately $44 million

• Red Bull holds approximately 50% market share worth $22 million

• Consumers often confuse energy drinks with sports drinks such as Gatorade and PowerAde.

• Seen as addictive, drug-infused beverages with negative health implications

• Major beverage corporations are weighing into the energy drink market with their own variations

• Today’s youth and young adults are facing increased responsibilities

Factors Influencing the Energy Drink Market

• Red Bull – 50%• Hansens Natural – 18%• Coca-Cola (Rockstar,

Full Throttle) – 17%• Pepsi (Amp, No Fear) – 10%• Independent/Regional – 5%

Market Share

• Young Athletes• Sobe No Fear• Mountain Dew Amp

• The Man’s Man• Monster• Full Throttle

• Females• Tab• Rockstar

Target Market Match

• Multi-dimensional corporations that are market leaders in several other sectors that have the ability to advertise infinitely because of their substantial budget and brand leadership.

Pepsi Coca-Cola

Real Competition

Who? 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

What?• Red Bull is the current market leader• Independent, European origin• Catchy, well-known label, small can• Berry-flavoured, carbonated, available

sugar-free• Restorative, vitalizing effects –

increases mental awareness• All natural ingredients• TASTES BETTER THAN COFFEE

When?• January 1, 2007-Dec 31, 2007• Pulse some media Jan-Aug

• outdoor, transit and magazines

• 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

• 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 • Campaign must connect with the

target to encourage trial purchase and eventually brand loyalty

• Frequency to ensure the consumer recognizes the product’s new image

Market Coverage• Trendsetting areas - major urban

markets• Reaching the trendsetting female

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

Timing• Energy drink sales decline in the

fall• campaign will focus heavily on

promoting Red Bull from September 1st to December 31st

• prime time television ads will be prominent as well as the already existing pulse flight of outdoor, transit and magazine advertising

• 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

• Red Bull is now a mature brand• Advertising must start to focus on new

markets such as women aged 16-35

• Continue to acknowledge the company’s independent and edgy roots

• Red Bull Must not appear too mainstream!

Creative Strategy

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

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

• 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

Image

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

Tone & Style

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

Slogan• The previous slogan “Red Bull gives you

wings” will be replaced by:“Charge up on Red Bull”

• Effectively presents Red Bull as a slightly different brand than in the past

• Television spot will end with a 3 second video/sound byte featuring a red animated bull charging across the screen with appropriate sound accompaniment

• will eventually become a trigger to remind consumers of the effects of Red Bull energy drink

Television

• 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 • 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• Make the new target market aware

of the product and its benefits • $800 000 set aside for design,

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

Sales Promotion

• Large displays integrated into the cooler shelves that hold the product

• 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• Effectively build the Red Bull brand in

association with female culture• Target market is among the world’s

most intelligent and critical consumer segments

• Red Bull brand must make substantial, visible contributions to causes affecting the modern woman

Getting Involved• Red Bull will announce a donation of

$1million to the Canadian Breast Cancer Foundation

• the most publicized issue affecting women worldwide

• funds have been earmarked as part of the marketing budget

• Following the public announcement of the donation, every can of Red Bull sold in Canada will be stamped with the pink ribbon

Getting Involved• Red Bull becomes a key national

sponsor of the CIBC Run for the cure

• have a presence at the main event on September 30, 2007

• Individuals dressed in Red Bull apparel will be handing out free product samples as well as Red Bull branded merchandise

Magazines• 2 consecutive partial-page ads

followed by a full page ad• Full calendar year• Fashion Magazine, Lou Lou,

Hello!, Elle (Canadian Edition)• Magazine Total: $1 454 988

Magazines

Rate ($CAN)

# of Occurrences

(yearly)

Total 2/ 3 Page 16 200 24 388 800 Full Page 17 960 12 215 520

Total: 604 320

Fashion

Rate ($CAN)

# of Occurrences

(yearly)

Total Page 9074 24 217 776 Full Page 12 627 12 151 524

Total: 369 300

Lou Lou

Rate ($CAN)

# of Occurrences

(yearly)

Total Page 2075 24 49 800 Full Page 3024 12 36 288

Total: 86 088

Hello!

Rate ($CAN)

# of Occurrences

(yearly)

Total 2/ 3 Page 10 370 24 146 400 Full Page 12 200 12 248 880

Total: 395 280 Magazine Total: 1 454 988

Elle Canada

Out-of-Home• Urban Markets: Toronto, Montreal,

Vancouver etc• Street-level standard posters • Space in each city will be

purchased for 12 weeks but only run four weeks at a time on a rotating schedule

Out-of-Home

City

4 week Rate ($CAN)

Total (12 weeks)

To ronto 107 800 323 400 Ottawa 30 800 92 400 London 17 850 53 500 Montreal 52 500 157 500 Calgary 22 960 68 800 Edmonton 21 150 63 450 Vancouver 52 885 158 655 Halifax 8 200 24 600

Total: 942 305

Out-of-Home• One large spectacular billboard

(40’ x 30’) at the Yonge & Dundas Eaton Centre Media Tower in Toronto

• Out-of-Home Total: 1 002 785

Weekly Circulation

Cost per 8 weeks ($CAN)

Total (16 weeks)

700 000 30 240 60 480 Out-of-Home Total: 1 002 785

Transit• Interior posters – full showing• Space in each city will be

purchased for 12 weeks but only run four weeks at a time on a rotating schedule

• Transit Total: $301 815

Transit

City

4 week Rate ($CAN)

Total (12 weeks)

To ronto 107 800 323 400 Ottawa 30 800 92 400 London 17 850 53 500 Montreal 52 500 157 500 Calgary 22 960 68 800 Edmonton 21 150 63 450 Vancouver 52 885 158 655 Halifax 8 200 24 600

Total: 942 305

Television• Target Female Audience, aged 16-35• September-December only• Prime-time programs:

• The Bachelor• America’s Next Top Model• The O.C.• Desperate Housewives• Extreme Makeover: Home Edition

• Television Total: $2 237 600

Television Program Name

Rate ($CAN)

# of Occurrences

(yearly)

Total Wife Swap 7428 8 59 424 The Bachelor 8000 8 64 000 America’s Next Top Model

2614 16 41 824

CSI: New Yo rk 13 040 16 208 640 The O.C. 13 776 16 220 416 Supernanny 7726 16 123 616 NBC Saturday Night Movie

4254 16 68 064

Extreme Makeover: Home Edition

27 360 16 437 760

Desperate Housewives

35 160 16 562 560

Grey’s Anatomy 28 206 16 451 296 Television Total: 2 237 600

Spending by Medium

• Mass Media Total: $4 997 188

$1,454,988

$2,237,600

$1,002,785

$301,815

Magazines

Television

Out-of-Home

Transit

Media Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Transit

Out-of-Home

Magazine

Television

The New Red Bull Brand• Target Female Audience, aged 16-35,

but acknowledges the old target• Focus on gross exposures for brand

awareness• Integrate into “female culture”• Use a variety of media, primarily to

support PR and sales promotion themes