RedBullMarketingPlan20112012

RoaringHausStudio
MarketingDirector:EmilyBrol ProductionDirector:KariEvans ITDirector:EvanDeane ArtDirector:SkyPark CopyManager:MichaelGross

RedBullRealEnergyIs.

 Background In1984MateschitzfoundedRedBull.RedBullEnergyDrinkwasfirstsoldontheAustrianmarketin1987.RedBullreached itsfirstforeignmarketsin1989inSingaporeandin1992inHungary.In2008RedBullcreateditsowncola,RedBullSimply Cola.Itcreatedamarketsegmentunliketraditionalcolas,byusingonly100%naturalingredients.In2009,RedBullextended itsproductlinewithRedBullEnergyShots.RedBullheadquartersarebasedinFuschlamSee,nearSalzburgAustria. Approximately4billioncansofRedBullareconsumedeachyear;theproductisavailablein160countries. MarketingGoals IncreaseinterestinRedBullamongmalesandfemalesage35to65. Increaserevenuegrowth. PositionRedBullasanalternativetocoffee. Product RedBullisalightlycarbonateddrinkthatenhancesmentalandphysicalactivity.Itisablendofingredientsfoundnaturallyin yourbody.ThestandardservingsizeofRedBullis8ounces,convenientlyfoundinthestandard8.3ouncescan.Theserving contains110calories,27gramsofsugar,and80mgofcaffeine.ThesugarsfoundinRedBullaresucrose,commonlyknownas basictablesugar,andglucose,asimplesugarthatisfoundnaturallyinthebody,mostcommonlyrealizedinbloodsugar. Caffeineisaddedtoimprovereactionspeed,alertnessandconcentration;caffeinehelpsburnfatduringenduranceactivities. Additionalingredientsincludetaurine,glucuronolactone,andBvitamins.Taurineisanaminoacidthatnaturallyoccursinthe humanbodytoactasanantioxidant.Taurineattachesitselftoharmfulsubstancesandacceleratestheflushingofthemfrom thebody.Standardfoodsthatcontaintaurinearescallops,fishandpoultry.Glucuronolactoneisacarbohydrate.Withinthe body,glucuronolactonehelpsdetoxifythebody.Commonfoodsyouthatcontainglucuronolactonearegrainsandredwine.B vitaminsenergizeandincreasemetabolism.

Audience Phil,theworkingclassbusinessman,hastroubleremainingalertandfocusedatwork.Balancingajobandafamilyistiringfor a3565yearold.Philcurrentlyinvestshis$35,000to$100,000annualincomeinwaystokeephimawakeatwork.Coffee doesntseemtobedoingit;especiallythroughthe10milebikerides,kidssoccergames,andboxingclassesheparticipatesin afterheleavestheoffice.Philstrivesforperfection.Hesnotgoingtobeoneofthosedisorganized,frazzlemindedslackers thatloungearoundtheoffice.Philislookingforahealthconsciouswaytoaccomplishhisbusyscheduleonadailybasis. MarketingMessage RedBullisanessentialsteptostayconcentratedandproductiveallday.Negativityintheworkplace,ratherthanthework itself,iswhatreallykillsconcentration.Laziness,constantcomplaining,disorganizationetcofyourfellowcoworkersare productivityvillains.LetRedBullhelp,andtakeontherealproductivityvillains. CurrentStatus RevenueHistoryOverPast5Years FiscalYear Revenue PercentIncrease 2006 $3.70billion N/A 2007 $4.19billion 13.24% 2008 $4.28billion 2.15% 2009 $4.43billion 3.50% 2010 $5.12billion 15.58%

MarketShareHistory MarketShare1

MarketShare2IRItrackedsales

RedBull EnergyDrinks HansenNaturalInc. RockstarInternational CocaColaCo.

AllOtherNon Alcoholic Beverages

SouthBeachBeverage Co. Energydrinksonlyhold2%ofthemarketsharewithin PepsiCo,Inc. thenonalcoholicbeveragemarket. NationalBeveragesCorp. CAGR Sales MarketShare RedBull 48% $272million 43% HansenNatural 111% $102million 16% Rockstar 106% $77million 12% PepsiCo N/A $84million 13% CocaColaCo 71% $63million 10% *CARGorCompoundAnnualRateGrowthistheinvestmentgrowthovertime. **Numbersrecordedarefor20022006.

MarketingTactics Web Trial Sponsorship Promotions Viral Television Forecast GoalsRecordedareforthefollowingyear(March2011February2012) Revenue Throughthefollowingyear,RedBullhassetagoaltoincreaserevenueby20%$6.22billion.Bygainingcustomersinanew demographic,aswellasreleasingarevampedcampaign,RedBullbelievesthisispossible. MarketShare RedBullanticipatesthroughthefollowingyeartobeabletoincreaseitsmarketshareby10%,raisingitto58%ofthemarket share.Throughvariousmediachannel,RedBullhassetagoaltosetitselffurtheraheadfromallcompetitorsandbuildan undeniablebrandloyaltyamongadifferentdemographic. Marketing Print Outdoor Ambient PointofPurchase Promotional Web

Competitors RedBullcancompetewithinthemarketshareofsoftdrinks,nonalcoholicdrinksandenergydrinks.Thecompetitorsare productlinesoflargerbrands,whereasRedBullisaprivatecompany.Thetopthreecompetitorsareasfollows: MonsterHansensNatural TheaverageservingsizeforMonsteris8ounces,althoughitcomesina16ouncecan,aswellaslargersizes.Per serving,Monstercontains100calories,27gramsofsugarand80mgofcaffeine.Additionalingredientsinclude:l carnitine,glucose,guarana,inositol,glucuronolactone,andmaltodextrin. Strengths: MonsterofferstheirproductattwicethesizeofaRedBull(16ozcan)forthesameprice. Monstersponsorsteams,athletes,sportsandbandssuchaswakeboarding,ChrisColeandOfMiceandMenasapull forpublicity. Monsterpromotionalitems,hats,teeshirts,BMXbikesaregivendirectlytotheconsumerratherthanasprizes. BelongstoacompanythattradesonNASDAQ. Weaknesses: MonstercontainsadditiveingredientssuchasguaranathathavenotbeenevaluatedbytheFDA. Monsterholdsasignificantlylesspercentageoftheenergydrinkmarketshare. Monsterisaproductofalargercorporation,HansensNatural,thatwasfoundedonjuicesandmayexperience neglectintermsofmarketing. Rockstar TheaverageservingsizeofRockstaris8ounces.ThestandardsizeofaRockstarcanis16ounces.Perserving,Rockstar contains140calories,31gramsofsugarand80mgofcaffeine.Additionalingredientsinclude:taurine,ginkgobiloba leafextract,guaranaseedextract,inositol,lcaratine,panaxginsengextractandmilkthistleextract. Strengths: Rockstaroffersthemostflavoroptions.

Rockstarsponsorsathletes,bands,sportsandhasitsownmodelsforpublicity. RockstarisdoublethesizeofaRedBull(16oz)forthesameprice. BelongstoacompanythattradesonNYSE.

AmpPepsiCoandSobe TheservingsizeofAmpis8ounces.ThestandardsizeofanAmpcanis16ounces.Perserving,Ampcontains110 calories,28gramsofsugarand71mgofcaffeine.Additionalingredientsinclude:guaranaseedextract,maltodextrin, taurineandpanaxginsengroot. Strengths: AmpcontainsthesameflavorbaseformulaasMountainDew.Thiscanpullloyalconsumerswhoareseekingthe beverageforadifferentpurpose. AmpsponsorspopularsportssuchasMMA,athletesandeventsforpublicity. BelongstoacompanythattradesontheNYSE. AmpistwicethesizeofaRedBull(16oz)butisthesameprice. Weaknesses: Ampcontainsasignificantlylesspercentageofthemarketshare. Ampisownedbyalargercorporation,PepsiCo,thereforemayexperienceneglectinmarketing. Ampcontainslesscaffeinethanitscompetitors.

Weaknesses: Rockstarhasmorecalories,sugars,andadditionalingredientsthanitscompetitors. RockstarwasrecentlyboughtoutbyPepsiCo,makingitpossibletheymayexperiencemarketingneglect. Rockstarholdsasignificantlylesspercentageoftheenergydrinkmarketshare. Rockstarcontainsthehighestlevelsofadditionalingredients.

MediaList Print o FullPageMagazine o HalfPageMagazine o Posters Outdoor o Billboards o TransitShelters o TelephonePole Ambient o BusWrap o Stairs PointofPurchase o FloorDecals o ShelvingAds o ConvenienceStore Promotional(correspondingmaterials) o 5KRace o CommunityCleanUp o VideoCompetition Web o Banners o PromotionalPages o Emailcoupon

 Timeline CampaignwillbeginintheThirdFiscalQuarterof2011. Media Flow Chart for Red Bull 2011-2012 Fiscal Quarters Q3 Q4 Q1 April May June July August September October November Print Media Full Page Magazines Half Page Magazine Outdoor Billboards Transit Shelters Telephone Pole Ambient Bus Wrap Staircase Ad Point of Purchase Floor Decals Shelving Ads Convenience Store Promotional 5K Race Community Clean Up Video Competition Web Banners Email Coupon

Q2
December January February March

 Budget FiscalQuarter3 FiscalQuarter4 FiscalQuarter1 FiscalQuarter2 Print $167,572 $167,572 $167,572 $167,572 Outdoor $245,740 $3,160 $243,740 N/A Ambient N/A $25,000 N/A $4,000 PointofPurchase $10,000 $10,000 $10,000 $396,000 Promotional $20,000 N/A N/A $10,000 Web $80 $80 $225,080 $80 Total $443,392 $205,812 $646,392 $577,672 CampaignTotal $1,873,248 *printpricingbasedonTravel&LeisureMediaPricing,billboardandtransitshelterspricingbasedon5cities(Chicago,Miami, Boston,SacramentoandPortland)pricingfromLAMAR,buswrapspricingbasedin5citiesonpricingfrombuyerzone.com, floordecalsbasedonplacementin2,000grocerystores.Pricingfrom(Lundstrom).Webbanneradvertisingbasedon$15 CPM,pricingfromWebMarketingToday,emailblastbasedon600,000recipientsperblast.Pricingbasedon optinadvertising.com.

Sources:

AmericanExpressPublishingCorporation.RateCard:2011NationalEdition.2010.14thFebruary2011. BuyerZomeLLC.BuyerZone.2011.14thFebruary2011. Casey,Matt."RockstarGelswithPepsiCo,AddsProducts."26thJanuary2010.Bevnet:TheBeverageIndustry'sSource.14th February2011. eMarketing.OptinServices.2011.14thFebruary2011. HansenBeverageCompany.Hansen'sNatural.2011.14thFebruary2011. Joshi,Mohit."RedBull'sGrowthRateHalvedin2008."4thFebruary2009.TopNews.in.14thFebruary2011. LAMAR.LAMAROutdoor.2011.14thFebruary2011. Lundstrom,Meg."RaisingtheRoofwithFloorAds."16thSeptember1999.Businessweek.14thFebruary2011. MonsterBeverageCo.MonsterEnergy.2011.14thFebruary2011. NewEurope."BuyersbullishonRedBull,SalesUp."25thFebruary2008.NewEurope.14thFebruary2010. Pickard,Brandon."AmpEnergyDrinkDangers."2011.eHow.14thFebruary2011. RockstarEnergyDrink.RockstarEnergyDrink.2007.14thFebruary2011. TheEarthTimes."RedBull'sRevenueJumps15.8Percentin2010."21stJanuary2011.EarthTimes.14thFebruary2011. Wilson,Dr.RalphF."UsingBannerAdstoPromoteYourWebsite."31stMarch2009.WebMarketingToday.14thFebruary 2011.