Red bull-edition-16-powerpoint


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engaging with customers through word of mouth

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Red bull-edition-16-powerpoint

  1. 1. The Times 100 Business Case Studies Edition 16 Engaging consumers through word of mouth marketing
  2. 2. Introduction to Red Bull <ul><li>Founded in 1984 </li></ul><ul><li>Red Bull Energy Drink launched 1987 in Austria </li></ul><ul><li>Now the world’s best-selling energy drink </li></ul><ul><ul><li>Currently has sales of over 4 billion cans per year in 160 countries </li></ul></ul><ul><ul><li>Employs more than 7,700 people worldwide </li></ul></ul><ul><li>Uses a progressive marketing strategy to evolve the brand </li></ul><ul><ul><li>Breaks traditional marketing rules to engage consumers in exciting, innovative ways </li></ul></ul><ul><ul><li>Aims to overcome crowded promotional marketplace </li></ul></ul><ul><ul><li>Drive consumer loyalty </li></ul></ul>
  3. 3. Red Bull’s marketing mix <ul><li>Product </li></ul><ul><ul><li>Tastes unlike any other and has functional element giving energy boost </li></ul></ul><ul><li>Price </li></ul><ul><ul><li>Premium pricing strategy to reflect best-selling brand </li></ul></ul><ul><li>Place </li></ul><ul><ul><li>Easy to obtain in retail and food & drink outlets </li></ul></ul><ul><li>Promotion </li></ul><ul><ul><li>Aims to create lasting impression on consumers </li></ul></ul>
  4. 4. Promotional strategy <ul><li>AIDA model </li></ul><ul><ul><li>Raise awareness </li></ul></ul><ul><ul><li>Stimulate interest </li></ul></ul><ul><ul><li>Create desire </li></ul></ul><ul><ul><li>Compel action to buy </li></ul></ul><ul><li>Red Bull promotion based on giving people ‘Wiings’ </li></ul><ul><ul><li>Communicates spirit of the brand </li></ul></ul><ul><ul><li>Innovative campaigns push boundaries and capture consumer imagination. </li></ul></ul><ul><li>Uses inventive promotions to achieve mass awareness without big budgets </li></ul>
  5. 5. Above-the-line activities <ul><li>Messages delivered through paid-for media e.g. TV, radio, press </li></ul><ul><ul><li>Reaches a wide audience quickly </li></ul></ul><ul><ul><li>May be expensive and difficult to monitor impact </li></ul></ul><ul><ul><li>Red Bull’s above-the-line focuses on raising brand awareness </li></ul></ul>
  6. 6. Below-the-line activities <ul><li>Below-the-line </li></ul><ul><ul><li>Reaches targeted groups of consumers through tailored promotions </li></ul></ul><ul><ul><li>Local activities can be reviewed and either amended or repeated for better impact </li></ul></ul><ul><ul><li>Creates and organises Red Bull events around the world </li></ul></ul><ul><ul><li>Designed to create big impact and generate media coverage, e.g. Red Cliff Diving and Red Bull Flugtag </li></ul></ul><ul><ul><li>Showcase athletes’ skills e.g. Red Bull X-Fighters and Red Bull Air Race </li></ul></ul>
  7. 7. Word of mouth marketing <ul><li>Based on principles of ‘pull’ marketing </li></ul><ul><ul><li>Positive messages passed from person to person </li></ul></ul><ul><ul><li>Consumers promote products to friends, family </li></ul></ul><ul><ul><li>People become advocates for brand </li></ul></ul><ul><ul><li>Momentum for the product generated through press stories </li></ul></ul><ul><li>Innovations include: </li></ul><ul><ul><li>Red Bull Wings teams of students - originally used in 1980s </li></ul></ul><ul><ul><li>Student Brand Manager programme – organising events on campus </li></ul></ul><ul><ul><li>Red Bull Bedroom Jam – competition for aspiring musicians </li></ul></ul><ul><ul><li>Red Bull Reporter – online publishing for aspiring writers </li></ul></ul>
  8. 8. Using digital and Social Media <ul><li>Core elements of Red Bull campaigns </li></ul><ul><ul><li>Support other pull marketing activities </li></ul></ul><ul><li>Smartphone apps – create connections with consumers </li></ul><ul><li>Social network sites/blogs allow easy, quick exchange of information </li></ul><ul><ul><li>Provide direct and relevant communication and interaction with core youth audience </li></ul></ul>
  9. 9. Measuring and evaluating promotion <ul><li>Word of mouth - more difficult to measure than traditional methods </li></ul><ul><li>Evaluation not just about return on investment </li></ul><ul><ul><li>E.g. sales figures do not reflect long term brand loyalty </li></ul></ul><ul><li>Measures include: </li></ul><ul><ul><li>Achieving sales targets </li></ul></ul><ul><ul><li>Evaluating extent of media coverage </li></ul></ul><ul><ul><li>Measuring frequency of blog comments </li></ul></ul><ul><ul><li>Assessing influence of network through number of followers or ‘Likes’ </li></ul></ul><ul><ul><li>Annual brand health check with consumers to get opinions </li></ul></ul>