A rival for red bull

A Case Study in Brand MarketingPete Laver

An energy drink to rival Red Bull?

Competitors & MarketSee also Red Bull£160.5 million market - Nielson 1999Red Bull/ Lucozade major energyplayersChannelsSupermarket dominance - EDLP category priceDistribution opportunitiesSoft drinks market growing

Situational Report

• Company (Brand)• Tastes nice• Natural ingredient• Revitalising without ‘BUZZ’• Caffeine free• Energy / tonic / pick me up• Less aggressive / offensive image• Customers• Market defined by 3 major segments• Energy / Wellbeing

– growth in health awareness– need for energy - stressed

lifestyles– customer base will widen and

deepen

4C analysis Overview

Red Bull• Reverse SWOT• 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.

Situational Report

• Opportunities• 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

Red Bull

Situational Report

• Summary• 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?

Red Bull

Situational Report

Target audience

Situational Report

Define our market The need for revitalisation, stimulation and replacement energy18-36 age range; 20 something core market; All about push from behind the bar Style leadership; Street endorsement; Underground marketing; Resistant to advertising.

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

RevitalisePrime Motivation

Description

Product Preferences

Purchase Behaviour

Loyalty

Buying Process

Channel Split

Merchandising

Media Preference

Stressed Travellers Tired mums Party hard Older execs

Growth

Contribution

Size

abc1

28-35 age

250 ml

cc

High

Cash

Convenience

High

Events

High

55%

Energise Calmness Stimulation Excitement

All A,b,c1-2 Abc1,c2 Abc1

20-50 25-45 17-30 35-60

250 ml Pack Pair Bottle

cash cc - ?

Low Low Moderate Low

Debit card Debit card Cash Cash

Petrol fore Supermarket Bars Convenience

Low Low High

Radio TV POP Press

High High High Low

20% 10% 12% 3%

Target audience

Situational Report

Convenience15%Size:13636 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Grocers22%Size:20 000 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Discounters8%Size:7272 000 sticks£2909 millionForecast:22 00 000£8.5 millionSegments D F B

Horeca6%Size:5454 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Specialists6%Size:5454 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Small Independents29%Size:26363 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

High Street14%Size:12727 000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Retail Market100%Size:90 909000 sticks£8 millionForecast:22 00 000£8.5 millionSegments D F B

Channel strategy

Situational Report

Brand positioning

Because it is a brand new brand the positioning is being used to create the brand-reversing the usual process

Positioning framework

Natural & Natural & revitalisingrevitalising

Health Health consciousconscious

Be good to Be good to yourselfyourself(water)(water)


WomenWomen

Cool, revitalising Cool, revitalising and pureand pure

(against Purdy)(against Purdy)


The familyThe family

Because they Because they are worth it are worth it

(against coffee)(against coffee)


Stressed out Stressed out young exec.young exec.

A natural A natural highhigh

(against Red (against Red Bull)Bull)

1 2

34

Going with number two we need a slightly older and less foolish brand, perhaps a little more sophisticated with a touch of irony in its humour?

Moving to the repositioning frameworks we can use the prompts to add some interest:

What to say, who to say it to, why believe it?

Be good to yourself A natural high

Health food shopsHealth food shops

SupermarketsSupermarkets

Convenience & travel pointsConvenience & travel points

Hotels, clubs, barsHotels, clubs, bars

4c Analysis

Because they're worth it Cool, revitalising and pure

Reframe

Reframe the Brand ProfileRe-define it symbolically

Revitalization, a natural highWhat are its leadership qualities?

Ethical , the great outdoorsRe-examine imageryEstablish performance excellence areasPersonality factors

Predominantly outward Friendly and witty, ironicTakes care of meProduct, Icons and packaging enhancements

Clear, plastic canRelationshipWhat does the brand have to say aboutits audience?

Cool, bright go-getterWhere does the brand live?

On the beachInternationalWho does it stand up for and support?

Greenpeace

Reframe the Customer ProfileWhat relationship development can we introduce?

On its own or with a friend (covert sex)The Ultimate Drinking machineWhere is the crux?

A natural high What big issues preoccupy them?What expectations can we meet?What problems can we solve?How do we accentuate the positive?Create beguilement and intrigue?How do we link up with their values?

You don’t have to be mean to be green, but it helps A little something of the nightWho are their other role models?How do we help re-order chaos?What rules can we break?

Reframe the Competitor ProfileWhat choices do they have?

-Perceptual mapsWhat must we not be?Red Bull -Reverse SWOTHow do we define our market/category?

Green energyCan we build a new category?

YesWhat rules might we introduce?

Chillers Garana natural active ingredientShould we transfer to another category?What rules might we break?

Unique, disposable carton

Analysis

Generating more ideasInvent 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 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 market

A rich idiot Frontal assault Find a natural highJuvenile delinquent Slightly more mature Exploit image with younger group

Analysis

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.

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

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.

Brand Strategy

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

Environmental warrior

chilled

Supports Greenpeace and Amnesty International

Friendly, witty, ironic 25-35 age

beyo

nd t o

ugh

busy social

pure

on it

s o w

n o r

w

ith a

fri e

n d

Great taste Green and white

premium

vitality

Courage rebellion teamwork

guarana

8080...the natural high

Revitalisation- energy for life

cool

Green energy

Wilderness GasherbrumUnconventional

Brand positioning?

Brand Strategy

option opportunity score

Improve mix

Grow market Convert non usersCreate new users

33

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 marketExisting products

Growth Options

Brand Strategy

option opportunity score

Enter related marketNew products

Enter new marketsExiting products

Enter new marketsnew products

Launch strategy and brand positioning 3

Re-align prices

Premium prices

Niche pricing

Reduce investmentWorking capital/fixed assets

Reduce fixed costs Manufacture abroad 1`

Reduce variable costs

Growth Options

Brand Strategy

Brand marketing plan

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

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.

Objectives & Target Markets

Positioning & Creative Treatment

Why Advertise?To create a new

sector in the energy drinks market based on health

Who To?Busy professionals

who are health conscious but don’t always have time to go to the gym

For health conscious individuals

What must we say?8080 is the proven and healthy alternative to current soft drink stimulants

Why should they believe this?Used by high achievers who are healthy, strong and utterly reliable

What tone of voice?Assuring, credible, ironic

and confident

Brand, Positioning & Strategy


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

Growth Options


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

Competitive Advantage Statement

Distribution efficiency avoiding supermarkets until it has enough share

A strong, differentiated brand

Relationships with small retailers

Key Success Factors

Place

Specialist/ regional

8080

Red bull

highlow

Product

8080

Red bull

Mainstream

National

high

low

high

low

immature maturebrand image

taste

Marketing Mix

Marketing Mix

Promotion

Channels

8080

Red bull

highlow

Price

8080

Red bull

Media

high

low

competitive

premium

economy

valuechemical Natural high

Media StrategyJustification

• 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.

Communications

– Pull• 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

Communications

Media Strategy

Schedules and Resources J an Feb Mar April May J une J uly 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 ? ? ? ?

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

Communications

Schedule & Resources

Tracking• Budgetary Control

– Variance Analysis

• Brand Tracking– Agency– Millward Brown

• Sales• Availability

Control

The brand development process• 1 Opportunity

identification• 2 Market definition• 3 Idea generation• 4 Screening and

concept testing• 5 Forecasting and

and financials

• 6 Brand, positioning and mix strategy

• 7 Promotion and product testing

• 8 Test market• 9 Re-forecast• 10 Launch & track• 11 Life cycle

management

And Remember

A rival for red bull

Business

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