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A rival for red bull


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A practical demonstration of the creative process of building and positioning a brand to compete effectively with an existing product

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A rival for red bull

  1. 1. A Case Study in Brand Marketing Pete LaverAn energy drink to rival Red Bull?
  2. 2. Situational Report 4C analysis Overview• Company (Brand)• Tastes nice Competitors & Market• Natural ingredient See also Red Bull• Revitalising without ‘BUZZ’ £160.5 million market - Nielson 1999 Red Bull/ Lucozade major energy• Caffeine free players• Energy / tonic / pick me up Channels• Less aggressive / offensive image Supermarket dominance - EDLP category• Customers price Distribution opportunities• Market defined by 3 major segments Soft drinks market growing• Energy / Wellbeing – growth in health awareness – need for energy - stressed lifestyles – customer base will widen and deepen
  3. 3. Situational Report• Reverse SWOT Red Bull• What are its Strengths• Its sources of credibility• Bad boy image and belief in its effectiveness• First mover status and share• Huge awareness and salience• Relationship with young consumers• Street endorsement• Word of mouth communication• Mythology• Red Bull gives you wings;• Red Bull came from the Far East; Is surrounded by mystery• Red Bull is made from Bulls testicles• Red Bull is bad for you, tastes horrible and has been banned• Red Bull is subversive or even poisonous or addictive or both• Red Bull is the bad boy on the block• Red Bull is efficacious – it works.
  4. 4. Situational Report• Opportunities Red Bull• Wider, older market using the drink• Coffee/tea occasions• Refreshment on long journeys• Stressed workers generally (not necessarily young)• Weaknesses• Distribution gaps still open• Advertising• Image when applied to wider market• Threats• Caffeine & threat to health by overuse?• Bad boy image especially linked to binge alcohol drinking• Price squeeze by supermarkets
  5. 5. Situational Report• Summary Red Bull• What are the Key Drivers?• Brand Image & credibility• Drive for distribution (push)• Street credentials• Price premium for the real thing over imitators• What are Red Bulls Objectives and Future Plans?• Growth; Maximum distribution; Breakout to respectability?• Stay subversive and underground.• Cut price and go for volume with collateral damage to coffee market• What are Red Bulls Strategies• Street credibility; Word of mouth communication; Extreme sport sponsorship• Marketing and sales push at POS; Move into chillers wherever possible?
  6. 6. Situational Report Target audience Potential Target Markets?Key Motive Description Says about themStressed out 20-35 upwardly mobile Goes the extra mileStressed out 35+Energising Travellers A little liftTired mums Calmness Pick me upWomen 23-44 Because I’m worth itParty hard Under 25 Gives them wingsParty hard Under 25 I have a hangoverSport competitors Under 40 The Red Bull moment Define our market The need for revitalisation, stimulation and replacement energy 18-36 age range; 20 something core market; All about push from behind the bar Style leadership; Street endorsement; Underground marketing; Resistant to advertising.
  7. 7. Situational Report Target audience Stressed Travellers Tired mums Party hard Older execs Prime Motivation Revitalise Energise Calmness Stimulation Excitement Description abc1 All A,b,c1-2 Abc1,c2 Abc1 28-35 age 20-50 25-45 17-30 35-60Product Preferences 250 ml 250 ml Pack Pair BottlePurchase Behaviour cc cash cc - ? Loyalty High Low Low Moderate Low Buying Process Cash Debit card Debit card Cash Cash Channel Split Convenience Petrol fore Supermarket Bars Convenience Merchandising High Low Low High Media Preference Events Radio TV POP Press Growth High High High High Low Contribution 55% 20% 10% 12% 3% Size
  8. 8. Situational Report Channel strategyGrocers Discounters Convenience Horeca22% 8% 15% 6%Size: Size: Size: Size:20 000 000 sticks 7272 000 sticks 13636 000 sticks 5454 000 sticks£8 million £2909 million £8 million £8 millionForecast: Forecast: Forecast: Forecast:22 00 000 22 00 000 22 00 000 22 00 000£8.5 million £8.5 million £8.5 million £8.5 millionSegments D F B Segments D F B Segments D F B Segments D F B Small Retail MarketSpecialists High Street Independents 100%6% 14% 29% Size:Size: Size: Size: 90 909000 sticks5454 000 sticks 12727 000 sticks 26363 000 sticks £8 million£8 million £8 million £8 million Forecast:Forecast: Forecast: Forecast: 22 00 00022 00 000 22 00 000 22 00 000 £8.5 million£8.5 million £8.5 million £8.5 million Segments D F BSegments D F B Segments D F B Segments D F B
  9. 9. Brand positioningBecause it is a brand new brandthe positioning is being used tocreate the brand-reversing theusual process
  10. 10. 4c Analysis Positioning framework Be good to yourself A natural high Natural & Health Natural & Stressed out revitalising conscious revitalising young exec.Going with number twowe need a slightly A naturalolder and less foolish 1 Be good to yourself 2 highbrand, perhaps a little (water) (against Red Bull)more sophisticated Health food shops Convenience & travel points Because theyre worth it Cool, revitalising and purewith a touch of ironyin its humour? Natural & Natural & The family Women revitalising revitalisingMoving to therepositioningframeworks we can 4 3 Because they Cool, revitalising are worth it and pureuse the prompts to (against coffee) (against Purdy)add some interest: Supermarkets Hotels, clubs, bars What to say, who to say it to, why believe it?
  11. 11. Analysis ReframeReframe the Brand Profile Reframe the CustomerRe-define it symbolically Profile Reframe the CompetitorRevitalization, a natural high What relationship development canWhat are its leadership qualities? we introduce? ProfileEthical , the great outdoors On its own or with a friend What choices do they have?Re-examine imagery -Perceptual maps (covert sex)Establish performance excellence areas What must we not be?Personality factors The Ultimate Drinking Red Bull -Reverse SWOTPredominantly outward machine How do we define our Where is the crux?Friendly and witty, ironic market/category? A natural high Green energyTakes care of me What big issues preoccupy them? Can we build a new category?Product, Icons and packaging What expectations can we meet?enhancements What problems can we solve? YesClear, plastic can How do we accentuate the positive? What rules might we introduce?Relationship Create beguilement and intrigue? ChillersWhat does the brand have to say about How do we link up with their values? Garana natural activeits audience? You don’t have to be mean to ingredientCool, bright go-getter be green, but it helps Should we transfer toWhere does the brand live? another category? A little something of theOn the beach What rules might we break? nightInternational Unique, disposable carton Who are their other role models?Who does it stand up for and support? How do we help re-order chaos?Greenpeace What rules can we break?
  12. 12. Analysis Generating more ideasInvent a metaphor to characterise the Red Bull persona. If it really was like that what strategy mightyou use to deal with him? Finally, how might this emerge in the real world as a plan that will actuallywork? Examples:Metaphor Strategy Real World ExpressionRed Bull is a:Bad boy on the block Lock him up Exploit our healthy credentialsAn impregnable fortress Remove a brick at a time Attack by local regionsA bulldozer leave the neighbourhood Find a slightly older audienceAdrenaline junky Put him on medication Be cool, karma, meditationMarry him Switch target to women Appeal to feminine sideBanned substances Outflank: Journeys and physical work brain fade, mass marketA rich idiot Frontal assault Find a natural highJuvenile delinquent Slightly more mature Exploit image with younger group
  13. 13. Brand Strategy Building a cult brandThe brand needs cult status to win in this market allowing the customers to discover it for themselves and to use its meaning to help define their own identity.Going back through the work, the phrase A Natural High stands out. What we need is a World-view for the brand to live up to and this could be used as a powerful slogan (the term slogan comes from sluagh-ghairm -Gaelic for battle cry). A battle cry must have meaning for the warriors who use it or it fails. We need to go high.Recruit passionate mountaineers who shares our belief in the need for a drink with qualities that offer genuine benefits at altitude and for extreme conditions.The product will be tested extensively in the climbing community and following successful trials the company will commission an expedition to test it on the roof of the world. Our expedition will set out to climb Gasherbrum in the Karakorum mountains of Pakistan using our drink. Following the success of this mission the drink will be given its final name which is 8080.This reflects and hints at the Gasherbrum expedition (Gasherbrum is one of only 14 mountains on Earth to be over 8000 metres in height at 8080 metres). Climbers will know that the toughest mountains to climb are rarely the highest which excludes Everest and the other well known names such as K2 and Annapurna. In the inner circle of climbers the exclusive set of 8000 metre peaks are legendary.
  14. 14. Brand Strategy Positioning summary• Why Communicate?• To create a new player in the energy drinks market with genuine and unique credentials• Who To?• Busy professionals who are health conscious but don’t always have time to go to the gym• Health and sport minded individuals• What needs to be said?• It is a proven better option to current energy drinks-a natural high• With what supporting evidence?• Uses proven and natural herbs it is used by people whose lives depend on it• What tone of voice?• Ironic, mannered, independent
  15. 15. Brand Strategy Brand positioning?• Core Values Green energy for a natural high• Tangible Benefit Energy for life (Guarana endorsement)• Outward emotional benefit Someone who works and plays hard• Inward emotional benefit Health, feeling on top of the world• Attitude & tone Ironic, mannered, independent• Personality 25-35 age range, sophisticated but understated, independent• Rebellious, dependable, tough• Values real friendship• Capabilities Bright, unconventional risk taker• Appearance Doesn’t value fashion but always gets it right• Target market Young, urban professionals, career oriented who work and play hard• Category set None• Channels Convenience and travel pointsMany brands have arisen out of instinct and the gut feel of their owners. Passion and intensity of purpose shines through in the best brands. However, a systematic approach to development can pay dividends.
  16. 16. Brand Strategy Brand positioning? Environmental warrior Unconventional Wilderness Gasherbrum busy premium social Green energy beyond tough cool on its own or Courage rebellion teamwork with a friend chilled 8080 ...the natural high pure vitality guarana Great taste Green and white Friendly, witty, ironic 25-35 age Revitalisation- energy for life Supports Greenpeace and Amnesty InternationalInitially, the product will be sold in climbing stores and climbing clubs with very little promotion. The brand story will inevitably leak out and word of mouth communication will do the work for us. Eventually, the product will find the mainstream audience with its defining values of audacious courage, rebellion and teamwork
  17. 17. Brand Strategy Growth Optionsoption opportunity scoreImprove mixGrow market Convert non users 3 Create new users 3Increase retention Coupons 2Change usage Healthy alternative, natural highExtend rangeRe-segmentNew channels Avoid larger retailers 3Win shareBuy shareAlliances Extreme clothing? 2Enter related marketExisting products
  18. 18. Brand Strategy Growth Optionsoption opportunity scoreEnter related marketNew productsEnter new marketsExiting productsEnter new markets Launch strategy and brand positioning 3new productsRe-align pricesPremium pricesNiche pricingReduce investmentWorking capital/fixed assetsReduce fixed costs Manufacture abroad 1`Reduce variable costs
  19. 19. Brand marketing plan
  20. 20. Objectives & Target Markets Objectives• Define and own a new category• Create new consumers• Brand switch targeted (marginally older) customers• Exploit open channels 10% market share at premium price Differentiate from Red Bull
  21. 21. Objectives & Target Markets Target Audience‘8080 is masculine but will appeal to both males and females aged between 28-35 who have a professional, busy lifestyle.Their social and work commitments mean they are ‘cash rich and time poor’ which they thrive on.Health is important to them, but they are not fitness freaks.They value toughness, reliability and vitality and see themselves as risk takers.They tend to buy branded products, i.e. Audi, Clarins, Ralph Lauren, Tag Heuer -that reflect their self view and they take city breaks across Europe and also enjoy long-haul holidays.They are confident, well turned out and urban dwellers. They are not mountaineers.
  22. 22. Brand, Positioning & Strategy Positioning & Creative TreatmentWhy Advertise? What must we say? To create a new sector 8080 is the proven and in the energy drinks healthy alternative to market based on current soft drink stimulants health Why should they believe this?Who To? Used by high achievers who Busy professionals who are health conscious are healthy, strong and but don’t always have utterly reliable time to go to the gym What tone of voice? For health conscious Assuring, credible, ironic and individuals confident
  23. 23. Brand, Positioning & Strategy Growth OptionsInitially, the product will be sold in climbing stores and climbing clubs with very little promotion. The brand story will inevitably leak out and word of mouth communication will do the work for us. Eventually, the product will find the mainstream audience with its defining values of audacious courage, rebellion and teamworkOnce the brand credentials have been established, marketing will aggressively target regions with drive teams and local promotions. Use of mass media will initially be minimal with posters and local promotions predominant. Buzz will be used extensively using the internet and prominent sportspeopleProjects aimed at extreme conditions such as ocean racing, climbing, etc will be targeted. Motor racing and flying will not be included as the challenge is not truly outdoor. Similarly, frivolous and exhibitionist activities such as bungee jumping will be avoided to stay clearly distanced from RBCoupons offering reductions on future purchase and opportunities for adventure travel will feature and we will form co-operative relationships with selected extreme sportswear manufacturers
  24. 24. Brand, Positioning & Strategy Competitive Advantage StatementThe brand personifies courage, reliability and teamwork and is mature with an ironic sense of humour. It is transparent and believes staunchly in its own values. It has unique and iconic values that will prove attractive to its target market and strongly differentiate itThe brand will achieve high levels of distribution following its slow early development when it will earn its credentialsDespite numerous Garana based drinks the brand will set out to own this propertyIts communication strategy will deliver the brand values Key Success Factors Distribution efficiency avoiding supermarkets until it has enough share A strong, differentiated brand Relationships with small retailers
  25. 25. Marketing Mix Product Placehigh high 8080 Red bulltaste Mainstream National Red bull 8080low low immature brand image mature low Specialist/ regional high
  26. 26. Marketing Mix Price Promotion premium high Red bull Red bull 8080 Mediacompetitive 8080 economy low chemical value Natural high low Channels high
  27. 27. Communications Media Strategy Justification• Our target market are hard working, career motivated young people. They work hard, often late, but manage to get home mid evening on Friday to watch Channel 4 with a takeaway meal and a bottle of wine. On Saturday they eat a brunch and read a quality paper before shopping and sport followed by a night out with friends. On Sunday, their day follows a similar pattern with a good read of the Sunday Times. In the evening they watch the ITV drama at 9 pm before an early night.
  28. 28. Communications– Pull Media Strategy • Weekend press • Channel 4 Friday schedule • ITV after 9 pm Sunday • Major town illuminated posters • Late night radio & Website • Events & competitions– Push • Retail promotions & Drive teams • Saucy Postcards & other literature • CRM & database • Telephone– Profile • Channel 4 & Press cartoons • Website
  29. 29. Communications Schedule & ResourcesSchedules and Resources Jan Feb Mar April May June JulyPullAdvertising ? ? ?Sales Promotion ? ? ? ?Personal Selling ? ? ? ?Database ? ? ? ? ?Events ? ?Sponsorship ? ? ? ? ? ?Staff training ? ? ?PushAdvertising ? ?In house literature ? ? ?Sponsorship ? ? ? ?Service Initiatives ? ?Brand ImageAdvertising ? ? ? ? ?Livery ? ?In house literature ? ? ? ?
  30. 30. Communications Schedule & Resources 1st Period 2nd Period 3rd PeriodPullAdvertising 470 340 260Sales Promotion 170 180 120Personal Selling 23 12 45Database 120 50 35Events 26 0 45Sponsorship 150 150 150Staff training 24 25 0Total Pull cost 983 757 655PushAdvertising 110 78 240In house literature 45 78 0Sponsorship 82 75 67Service Initiatives 0 40 25Total push cost 237 271 332Brand ImageAdvertising 29 85 67Livery 0 200 79 house literature 45 45 45Total branding costs 74 330 191Total period cost 1294 1358 1178Total plan cost £3, 830, 000
  31. 31. Control Tracking• Budgetary Control – Variance Analysis• Brand Tracking – Agency – Millward Brown• Sales• Availability
  32. 32. And Remember The brand development process• 1 Opportunity • 6 Brand, positioning and identification mix strategy• 2 Market definition • 7 Promotion and product• 3 Idea generation testing• 4 Screening and • 8 Test market concept testing • 9 Re-forecast• 5 Forecasting and and • 10 Launch & track financials • 11 Life cycle management