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)
Natural & Natural & revitalisingrevitalising
WomenWomen
Cool, revitalising Cool, revitalising and pureand pure
(against Purdy)(against Purdy)
Natural & Natural & revitalisingrevitalising
The familyThe family
Because they Because they are worth it are worth it
(against coffee)(against coffee)
Natural & Natural & revitalisingrevitalising
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
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
Brand, Positioning & Strategy
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