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A rival for red bull
1. A Case Study in Brand Marketing
Pete Laver
An energy drink to rival Red Bull?
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. 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. 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. 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. Situational Report
Target audience
Potential Target Markets?
Key Motive Description Says about them
Stressed out 20-35 upwardly mobile Goes the extra mile
Stressed out 35+
Energising Travellers A little lift
Tired mums Calmness Pick me up
Women 23-44 Because I’m worth it
Party hard Under 25 Gives them wings
Party hard Under 25 I have a hangover
Sport 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. 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 35-60
Product Preferences 250 ml 250 ml Pack Pair Bottle
Purchase 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. Situational Report
Channel strategy
Grocers Discounters Convenience Horeca
22% 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 million
Forecast: 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 million
Segments D F B Segments D F B Segments D F B Segments D F B
Small Retail Market
Specialists High Street
Independents 100%
6% 14%
29% Size:
Size: Size:
Size: 90 909000 sticks
5454 000 sticks 12727 000 sticks
26363 000 sticks £8 million
£8 million £8 million
£8 million Forecast:
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 million Segments D F B
Segments D F B Segments D F B
Segments D F B
9. Brand positioning
Because it is a brand new brand
the positioning is being used to
create the brand-reversing the
usual process
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 two
we need a slightly
A natural
older and less foolish 1 Be good to
yourself
2 high
brand, perhaps a little (water)
(against Red
Bull)
more sophisticated Health food shops Convenience & travel points
Because they're worth it Cool, revitalising and pure
with a touch of irony
in its humour? Natural & Natural &
The family Women
revitalising revitalising
Moving to the
repositioning
frameworks we can
4 3
Because they Cool, revitalising
are worth it and pure
use 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. Analysis
Reframe
Reframe the Brand Profile Reframe the Customer
Re-define it symbolically Profile Reframe the Competitor
Revitalization, a natural high What relationship development can
What are its leadership qualities? we introduce? Profile
Ethical , 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 SWOT
Predominantly outward machine How do we define our
Where is the crux?
Friendly and witty, ironic market/category?
A natural high Green energy
Takes 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?
Yes
Clear, plastic can How do we accentuate the positive? What rules might we introduce?
Relationship Create beguilement and intrigue? Chillers
What does the brand have to say about How do we link up with their values? Garana natural active
its audience?
You don’t have to be mean to ingredient
Cool, bright go-getter be green, but it helps Should we transfer to
Where does the brand live? another category?
A little something of the
On the beach What rules might we break?
night
International 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. Analysis
Generating more ideas
Invent a metaphor to characterise the Red Bull persona. If it really was like that what strategy might
you use to deal with him? Finally, how might this emerge in the real world as a plan that will actually
work? Examples:
Metaphor Strategy Real World Expression
Red Bull is a:
Bad boy on the block Lock him up Exploit our healthy credentials
An impregnable fortress Remove a brick at a time Attack by local regions
A bulldozer leave the neighbourhood Find a slightly older audience
Adrenaline junky Put him on medication Be cool, karma, meditation
Marry him Switch target to women Appeal to feminine side
Banned substances Outflank: Journeys and physical work brain fade, mass market
A rich idiot Frontal assault Find a natural high
Juvenile delinquent Slightly more mature Exploit image with younger group
13. Brand Strategy
Building a cult brand
The 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. 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. 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 points
Many 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. 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 International
Initially, 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. Brand Strategy
Growth Options
option opportunity score
Improve mix
Grow market Convert non users 3
Create new users 3
Increase retention Coupons 2
Change usage Healthy alternative, natural high
Extend range
Re-segment
New channels Avoid larger retailers 3
Win share
Buy share
Alliances Extreme clothing? 2
Enter related market
Existing products
18. Brand Strategy
Growth Options
option opportunity score
Enter related market
New products
Enter new markets
Exiting products
Enter new markets Launch strategy and brand positioning 3
new products
Re-align prices
Premium prices
Niche pricing
Reduce investment
Working capital/fixed assets
Reduce fixed costs Manufacture abroad 1`
Reduce variable costs
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. 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. Brand, Positioning & Strategy
Positioning & Creative Treatment
Why 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. Brand, Positioning & Strategy
Growth Options
Initially, 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
Once 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 sportspeople
Projects 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 RB
Coupons 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. Brand, Positioning & Strategy
Competitive Advantage Statement
The 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 it
The brand will achieve high levels of distribution following its slow early development
when it will earn its credentials
Despite numerous Garana based drinks the brand will set out to own this property
Its 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. Marketing Mix
Product Place
high
high
8080
Red bull
taste Mainstream
National
Red bull 8080
low
low
immature brand image mature low Specialist/ regional high
26. Marketing Mix
Price Promotion
premium
high
Red bull Red bull
8080
Media
competitive
8080
economy
low
chemical value Natural high low Channels high
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. 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. Communications
Schedule & Resources
Schedules and Resources
Jan Feb Mar April May June July
Pull
Advertising ? ? ?
Sales Promotion ? ? ? ?
Personal Selling ? ? ? ?
Database ? ? ? ? ?
Events ? ?
Sponsorship ? ? ? ? ? ?
Staff training ? ? ?
Push
Advertising ? ?
In house literature ? ? ?
Sponsorship ? ? ? ?
Service Initiatives ? ?
Brand Image
Advertising ? ? ? ? ?
Livery ? ?
In house literature ? ? ? ?
30. Communications
Schedule & Resources
1st Period 2nd Period 3rd Period
Pull
Advertising 470 340 260
Sales Promotion 170 180 120
Personal Selling 23 12 45
Database 120 50 35
Events 26 0 45
Sponsorship 150 150 150
Staff training 24 25 0
Total Pull cost 983 757 655
Push
Advertising 110 78 240
In house literature 45 78 0
Sponsorship 82 75 67
Service Initiatives 0 40 25
Total push cost 237 271 332
Brand Image
Advertising 29 85 67
Livery 0 200 79
house literature 45 45 45
Total branding costs 74 330 191
Total period cost 1294 1358 1178
Total plan cost £3, 830, 000
31. Control
Tracking
• Budgetary Control
– Variance Analysis
• Brand Tracking
– Agency
– Millward Brown
• Sales
• Availability
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