IMC plan for Red Bull Flux a new product from Red bull and how they have used IMC for launching there product in Singapore Market

1. IMC Plan for Red Bull Flux
1. Situational Analysis
1.1 Internal Analysis
Red Bull is one of the greatest energy
drink companies in the world. The iconic
Blue and Silver can has become a symbol
for vitality, helping people with work and
play. Its catchphrase, “Red Bull gives you
wings!” is a testament to the sort of
imagery energy drinks wish to portray.
The brand “Red Bull” came in to existence
in 1984, with its first product launched in
1987, making it a pioneer in the global
energy drink market. The idea came about
to Mr. Dietrich Matechitz while in
Thailand. He noticed managers drinking a beverage called “Krating daeng” prior to meetings to
stay awake and focused. Upon trying the beverage, he found it to have a relieving effect on his jet
lag. He went on to collaborate with the creator of the drink, Chaleo Yoovidhya, and thus developed
a marketing strategy to sell the drink, naming it Red Bull.
The drink consists of various ingredients such as caffeine, carbohydrates and other important
vitamins which are claimed to be helpful in developing physical endurance, improved reaction,
concentration and speed.
The advertising slogan, “Red Bull Gives you Wings”, has been instrumental in bringing awareness
and popularity to the drink. It is popular among men, with its largest consumer groups comprising
athletes, students, night clubbers and those who are in need of a late night lift.
Red Bull has been successfully established across the world and was made available in 162
countries as of year 2010.
The main Micro-economic factor that Red bull faces would be their many competitors, ranging
from 300 newly established brands to massive corporations such as Coca Cola Company, PepsiCo,
Hansen Natural Inc. and Rockstar International. However, these so called „massive corporations‟
do not hold much market share in the energy drink market. Nevertheless, Red Bull has had to keep
tabs on them in order to keep their lead. Competitors provide alternate taste selections, compared
to Red Bull’s limited line. Additionally, established companies such as Coca Cola and PepsiCo
have extensive distribution networks and possess more established brand names.

2. 1.2 External Analysis
Red Bull Marco-economic factors will be identified with the P.E.S.T model of analysis-- Political,
Economic, Social and Technological factors.
Politically, with the growing demand for energy drinks and possible side effects arising from
highly caffeinated drinks, respective governments might devise regulations for the drink to be
clinically tested. In situations whereby the local government imposes health and safety restrictions,
Red Bull sales would drop as the amount of cans sold is affected. Some countries have even banned
Red Bull as they feel the product poses a threat to health and safety. Nevertheless, many countries
have accepted Red Bull as an energy drink brand.
The economic factors indicates that consumers will most likely cut down on energy drinks when
there is price inflation, due to the reduction in the disposable income of the consumers. Also,
studies have shown that energy drinks are not deemed as necessities to consumers, and they would
rather save up on such purchases to get more essential items. The Social factor points towards a
generation with youths that are increasingly exposed to different sports and avenues for
entertainment. In light of this, Red Bull has positioned itself as a drink for youths, and with the
right promotional mix, these could lead to an increase in sales.
In order to make its brand relate to the masses of a country, Red Bull will produce labels in the
respective country’s language. With this, a higher cost is incurred when launching the drink in
different geographic areas. Nevertheless, Red Bull recognizes the importance of communicating
its brand identity as this would bring about an increase in brand equity and thus, sales revenue in
the future. With the advancement of social media and technological platforms, Red Bull has had
to improve its communication strategies and promotional tools to be more effective and relevant.
These help to advertise and promote the product, therefore providing a new way of communicating
with the consumers. Promotional tools such as social media outlets like Facebook, Twitter and
Instagram has had massive effect on the consumers, especially the youth as they can better relate
to these tools. Machinery technology has also aided the company to reduce cost as more drinks
can now be produced at a cheaper cost, à la economies of scale, improving the quality of the
packaging as well.
1.3 SWOT Analysis
Strength
 Strong Market Leadership
Red Bull is the world’s leading energy drink through strong brand equity. The energy drink is
exclusively produced in Austria and has been exported to more than 100 countries worldwide.
They enjoy outstanding sales which dominate the energy drink market with a 70% share of the
world‘s energy drinks market.
 Strong Marketing Effort
Red Bull increased its consumer brand awareness by having marketing campaign targeted towards
18– 25 year olds. A different approach was taken by sponsoring events such as Formula 1 driving,

3. BMX biking and other extreme sports. This is to create a consumer base and increase the demand
in a particular market segment including people who like extreme sports. Brand ambassadors –
“Red Bull Girls” were also conceptualized and hired to deliver the product. Moreover, Red Bull
promotes itself strongly using slogan such as “Red Bull Gives You Wings” a metaphor that
allows consumers to know it’s an energy drink that allows them to revitalize and energize
themselves.
Weaknesses
 Lack of Patent
A major weakness is Red Bull’s lack of patent in the recipe. This allows competitors to copy their
recipe and enter the market easily. Furthermore, competitors may then use this as a starting place
to launch its own unique selling point.
 Small Product Base
Red Bull have a narrow product (line or range) and only market energy drinks along with a sugar
free variety. As market fluctuate, energy drink and sports drink will be vulnerable as it is the
smallest segment in the overall soft drink market, thus competing with the soft drinks market will
be of a disadvantage. Consumer’s interests are changing toward healthier alternatives such as non-
carbonated, decaffeinated, fresher drinks.
Opportunities
 Extension of product line
An extension of product line will aid them in increasing the market share. Competitors faces high
barrier of entry as competitors entering the market incur extensive marketing and promotions and
Red Bull is already in the market. It is most likely that a new product as an extension of an existing
brand will succeed best, E.g.: a better taste in Red Bull. By introducing a new product, Red bull
can use their strong brand awareness in promoting its new product.
 Patency
Red Bull should do licensing to their patency. This is to prevent competitors from entering the
market easily. It will restrict the competitors from manufacturing, copying and selling the drink.
 New Market Opportunities
Consumers tend to mix Red Bull with various types of liquor. Red Bull could consider venturing
into new target market. In Singapore, increasing trend has shown in the number of party goers over
the years. With the sales of Red Bull in night pubs and clubs, it will further boost the revenue of
Red Bull.
 Price Competition
In the energy drink sector, competitors will strive to maintain high level of quality, convenience,
price and related factors so as to stay competitive and bring higher satisfaction for consumers.

4. Therefore, Red Bull has to be conscious of its pricing strategy and product quality to ensure the
satisfaction level of consumers, in which bringing about brand loyalty
Threats
 Health Concern
Media have reported that Red Bull has ingredients which contribute to certain health risk.
In France, the authorities has gone one step further by banning the Red Bull product for
sale, believing that it is not in compliance with the country’s health and food regulations.
Other media reports have also been targeted towards parents, stating the high caffeine
levels in Red Bull could be hazardous if consumed by children/teenagers, who are exactly
the product’s target audience. Red Bull has stepped up their measures in health safety by
seeking scientific proof that its product is safe for consumption and released numerous
statements to curb the negative media attention.
 Competition
Competition would most likely be one of the biggest threats to Red Bull these days. Major
competitors such as Coca Cola and Pepsi have launched their own energy drink versions
to compete directly with Red Bull’s products
 Ability to gain new customers and retain current customer loyalty
Currently, the main target market of Red Bull are the Generation Y and Millennial
consumers. Because the youths of Generation “Y” and Millennial are more adventurous,
more acceptable to change and is often than not a brand switcher, thus it is difficult to
maintain brand loyalty from them should a new and better product arises.
 Above Average Price
The comparison is between Red Bull and its competitors, Monster and Rockstar. The price
of a Red Bull a 500ml can is $3.90 while it costs $2.55 each for Monster and Rockstar. The
carbohydrate content of Red Bull is 28 grams. It is 27 grams and 31 grams of carbohydrates
for Monster and Rockstar respectively. The caffeine content of Red Bull is 80mg and
160mg for Monster and Rockstar. By looking at the statistic, Rockstar will be the biggest
threat for Red bull as Rockstar give a cheaper price and it will energize consumer more
due to its high caffeine and carbohydrate.
2. Identification of Market Problems and Opportunities
Red bull is currently the market ‘King’ in the energy drink sector, having up to 43% market shares
globally, and as the energy drink sector is growing rapidly in the soft drink sector, Red Bull is seen
to have much potential growth in the near future. They sold approximately 4billion cans of Red
Bull yearly over 160 countries, and records have shown that there have been a consistent growth
over the years. By focusing on selling the concept of energy drink before it sell its product, Red
Bull single-handedly pioneered and breakthrough a global market for itself.
With the society getting more affluent, buyers‟ behavior are constantly changing, hence much
research has to be done on human and buyer’s behavior. This is to determine how Red Bull can
effectively and efficiently reach their target audience as time and generation goes by.

5. With the entry of other competitors and their marketing advertisements and gimmicks, it causes
too much clutter making it harder for Red Bull to sustain the image in the consumers mind, thus
Red Bull needs to constantly come up with creative and good marketing promotion.
The conscious image that Red Bulls has in their audiences‟ mind is that they are a reliable and
dependable brand of energy drink, however one will only buy it when in need of energy or
revitalization. Sub-consciously, there are those that felt Red Bull is not a healthy choice. It has not
really been able to replace most of the soft drinks as people’s choice although it has went into the
soft drink market.
However Red Bull has forecasted potential in the soft drink and entertainment sector. Many are
using Red Bull in alcoholic beverages in clubs, pubs and parties. Seeing much prospective here,
Red Bull is moving toward these sector.
3. Positioning
A Star Perceptual Map will be used to compare the key benefits and advantages of Red Bull against
its competitors in the energy drink industry. The two competitors to be compared with Red Bull in
the perceptual map will be Monster and Rockstar. Red Bull is the finest among 4 of the 8 key
features compared. It is shown higher in market share, brand image, distribution channel, has the
best taste and has the lowest price compared to the other 2 energy drinks. Red Bull has the most
established brand image in comparison. However, it costs the most in contrast to the other two
energy drinks. The estimated price of a can of Red Bull is $3.90 while it costs about $2.55 each
for Monster and Rockstar. As of year 2012, the market share of Red Bull is 43% which is the
highest measured up to Monster and Rockstar which is at 11% and 37%. The carbohydrate content
of Red Bull is 28 grams. It is 27 grams and 31 grams of carbohydrates for Monster and Rockstar
respectively. Carbohydrates will be able to give the young sports enthusiast’s energy for their
everyday lives. The caffeine content of Red Bull is 80mg and 160mg for Monster and Rockstar
(Heckman, Sherry & Gonzalez De Mejia 2010).

6. 4. Marketing Communication Objectives
Red Bull Flux will be a new product line within the established brand. The marketing objectives
are to identify Red Bull Flux as an exciting new flavor in the Red Bull product line. By increasing
brand awareness, they aimed to positively influence purchase intent and hence brand switching
from competitors to Red Bull products. Ultimately, the launch of Red Bull-Flux is to increase
brand loyalty among existing energy drink consumers and hence customer lifetime value.
4.1 Marketing Objectives
 Achieved can-sales of Red Bull-Flux
o 400,000 during the first 6 months of one year,
o 1,500,000 by the end of the year.
 Achieved market share of energy drinks market
o By 10% in the Singapore Energy Drinks Market
 Achieved net profit of Red Bull
o By at least 8% at the end of the year
4.2 Communication Objectives
They aim to establish Red Bull Flux as a flavor in alternative to the original Red Bull and Sugar-
free Red Bull products, and in doing so, they have diverted consumer attention and market share
away from competitors. For achieving this, they aimed to increase awareness of this new product
among existing Energy Drink consumers by at least 70% through various IMC plans. This was
done by solidifying the brand attitude, and communicating brand identity in order to improve
purchase intention. At least 15% of target consumers regarded Red Bull Flux as the preferred
alternative choice twelve months after product launch. Lastly, the communication objectives aimed
to increase brand loyalty-measurable through an increase in market share. This was achieved
through the hierarchical effects of communication, beginning from awareness to knowledge to
liking to preference to conviction to purchase. Furthermore, they try to align the year IMC plan
with initial stage focusing on building awareness and then other plans were introduced.
5.0 Creative Strategy
This product was introduced in opening of April 2013 along with various promotion strategies.
The new product, Red Bull Flux, was marketed and advertised to various primary target audience
and youths were also involved in it by Generation “Y”, sports athletes and enthusiasts. Various
medium such as Advertising, Sales Promotions, Sponsorship and Interactive Communication were
used to reach out to target audience. Red Bull was advertised in a way whereby it will appeal and
excite the target audience when they watch the advertisement. This is to enhance awareness for

7. the product and to garner higher attention. High quality and aesthetically stunning visuals were
used in advertisement to enhance visual messages, bringing about a high adrenaline and
atmosphere of hype and vibrancy. The advertisement aimed to give a different opinion and
perception of Red Bull, as not just another energy drink, it is a drink in which it can still give the
effect of Red Bull but with a new and refreshing taste. Through the advertisement, the energetic
and adrenaline pumping visuals effect will invoke emotions in the audience, making them feel
pumped up and excited to try out the new beverage, connecting similarities with the target
audience. Beside advertisement, Red Bull has also come up with Sales Promotions for attracting
the audience to have greater purchase satisfaction for buying more at a cheaper price. On top of
that, endorsers were scouted to endorse for Red Bull Flux, who were featured in various prints
advertisements. The endorsers were the face of Red Bull Flux in events, representing the drink,
interacting and communicating with the audiences. The other trademark of Red Bull were its very
own Red Bull Brand Ambassadors- the Red Bull Girls. They are the face of Red Bull, represented
the Red Bull and its brand to various minor and major events to promote the Red Bull beverage,
bring about higher appeal for the brand and generating greater awareness.
6. Media Strategy
6.1 Cinema Advertising
Cinema Advertising is an effective form of communication as it visually communicates to all
audience. Even though cinema advertisements could be expensive, but it has the ability to enable
viewers to watch the advertisements with minimized distraction. In present days, youths are more
positively inclined towards cinema advertising as compared to traditional TV advertising.
Red Bull targeted audiences are mostly sport athletes, thus training would inevitably occupy most
of their time in, thus coming in touch with television programmes would be a rarity. Cinema
Advertisement would be the ideal form of marketing communication because chances of them
visiting the cinemas and watching a movie would be of a higher chance as compared to television
programmes.
In collaboration with the cinemas, the block- bluster movie package were selected in which the
company would screen a 30 seconds advertisement in upcoming movie hits. 2 block buster movies,
specifically Iron Man 3 and Man of Steel, were targeted as major top seller in ticket box office,
thus they selected 2 movies for advertisement as most of the customers will be targeted by that
selecting to advertise in these 2 movies prior to the start of the movie have brought greater level
of awareness to the youth. It was also advertised for months before registration of Red Bull Flux
Charity run to allow the audience to be aware beforehand and it was aired from 15 April to 15 May
2013.
The Cathay, Shaw House and Golden Village were the 3 major Cinema houses in Singapore and
they were selected for the advertisement. Specifically, advertisements was aired in Shaw Lido,
Golden Village (GV) Vivo City, GV Plaza and GV Marina, Cathay Cineleisure and Cathay: The
Grand Cathay. Reason for selecting this cinemas is because these are the places in which youth
mostly spend their time and many other youth activities, various youth activities are held there.

8. For example, Cineleisure is right beside Youth Scape Park in which youths hang around there for
activities such as skateboarding.
Singapore has 19 radio channels in context, reaching mass audiences and specific segments of
youths anytime of the day when they were to tune in to the specific broadcast frequency. Generally,
peak hours for radio broadcasting would be in the morning and evening period, whereby the mass
public would be travelling to and fro from work. This particular time was selected by Red bull to
advertise their product the most. Specifically “Kiss” FM, 92FM, and Singapore No.1 Hit Station,
98.7FM were selected to broadcast and advertise our advertisements and 98.7 is the only English
FM available Singapore.
6.3 Printed Advertisements Magazines
Magazines play a big part in advertising as they are concentrated directly towards our target
audiences. Various types and genres of magazines are published to cater to different segmentation
of the public, and they are customer oriented. Generally, youth, young sport athletes, young adults
and sports enthusiasts who purchase these sport magazines will be attracted and curious about
sport related articles. It has the ability to present detailed information and excite readers with eye-
catching visual communication.
For full 3 months Red Bull Flux advertisement was published on 1 full page on Men’s health
magazines all over Asia. Not only just advertisements but also invitations for charity run were
given to the Men’s Health Magazine users for free.
6.4 Posters and Billboards
6.4.1 on-Premise Business Signage
On-Premise Business Signage will be used to illustrate the advertisement. Billboards and Posters
were mounted onto buildings to create a distinct image and allow the public to get aware of the
new product, this would in turn increase brand image and awareness. Banners, wall signs, portable
signs, inflatable signs and A-frame signs will be used.
Portable signs, inflatable signs and A-frame signs are only used at Red Bull events which Red Bull
sponsor to allow people to be exposed to Red Bull and its new product, Red Bull Flux.
6.4.2 out-of-Home Advertising
Out-of-Home Advertising were also used as it will be seen by consumers when they are heading
to a destination when they are out of their homes. These types of advertisements are placed at bus
shelters, train stations and places where young sport enthusiasts would congregate. These
billboards posters and panels were put on for a month at Scape Youth Park during September to
promote F1 grand Prix.

9. 6.5. Sales Promotion
Sales Promotions are to encourage immediate purchases on the spot by allowing customers to have
benefits and temporarily change in perceived price or value.
The aim that time was to have more customers, wholesalers and retailers to purchase in bulk thus
creating a bonus gift pack of “Buy 5 Get 1 Free” bundle.
6.7. Social Media
Social Media is undoubtedly the most important tool for marketing communications in terms of
reaching out to the youth of the Generation “Y”.
Objectives of using this medium is so that users can associate and be exposed to our product and
online advertisement, leading up to a continuous flow of information sharing through the various
sharing methods online to their circle of friends and bring about higher influences, awareness and
presence to the mass public, especially those in the youth and sports segmentations.
For creating buzz in the market various social media are used. Vehicles such as Facebook, Twitter
play a crucial role for communication to the younger generation, who are of a higher relevancy
and also more tech savvy. Lucky Draw Contests were also held on Facebook to enhance awareness
and to entice more users to know about the products. “Liking” the Red Bull official Facebook Page
and contest picture would give Facebook users a chance to win an IPad Mini in the lucky draw
and 3 lucky winners were announced. The prize presentation was held at marathon for those lucky
winners.
Through the Facebook page, an on-going “Invite Us” activity was held in which students have
written via Facebook official page written. This helps in maximizing vitality for the youths.
6.8 Athletes / Sportsmen Endorsement
The usage of endorsement is able to command a high volume of media attention as well as creating
a trust issue with our target audience. Consumers are able to relate and would be more accepting
of the endorsers‟ position on an issue in comparison with an issue of their own. Our audiences
may also be able to identify themselves or aspires to take after the endorsers‟ attitude, behavior,
interest and preferences. Therefore in terms of selecting endorsers, they need to be equipped with
the right mindset and lifestyle which is in line with what Red Bull is all about.
7. Other Integrated Marketing Communication plans
The aim of this IMC plan is to create awareness that Red Bull Flux has a different taste compared
to the original. They have engaged in hype-producing activities during this period without major
events. The major advertising vehicles are specified above, other IMC Plans include event support,
entertainment nightclubs, engaging tertiary institutions, and various sampling methods. In
particular, the Red Bull decorated car was heavily used during these events. Simulating Pavlov’s

10. Dog, we aim to use the arrival of the Red Bull car to excite event goers, more so when the Red
Bull girls exit from the car; signaling the start of a good Red Bull experience.
8. Conclusion and Recommendations
They aim to establish Red Bull Flux as a flavor in alternative to the original Red Bull and Sugar-
free Red Bull products, and in doing so, they have diverted consumer attention and market share
away from competitors. For achieving this, they aimed to increase awareness of this new product
among existing Energy Drink consumers by at least 70% through various IMC plans. This was
done by solidifying the brand attitude, and communicating brand identity in order to improve
purchase intention. At least 15% of target consumers regarded Red Bull Flux as the preferred
alternative choice twelve months after product launch. Lastly, the communication objectives aimed
to increase brand loyalty-measurable through an increase in market share. This was achieved
through the hierarchical effects of communication, beginning from awareness to knowledge to
liking to preference to conviction to purchase. Furthermore, they try to align the year IMC plan
with initial stage focusing on building awareness and then other plans were introduced.

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