Red Bull Energy Drink Success Story The Current Energy Shot Category What is the Consumer Telling Us they Need? How will Red Bull meet the Consumer Needs?

Slides:



Advertisements
Similar presentations
A Custom Marketing Program for
Advertisements

Future of the Independent Restaurant Operator Study Highlights February 11, 2008 Project #13024 Food Industry. Facts. Insights. Consulting. Prepared by:
Chapter 4 Marketing Management.
Advertising, Sales Promotion, and Public Relations
Making Your Business Grow
The Author Brand Opportunity
Part 1 Marketing Dynamics
Slides prepared by Joe Rosagrata
16 MKTG CHAPTER Lamb, Hair, McDaniel
Sales Promotion Chapter Eleven.
Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.
Copyright © 2012 Pearson Canada Inc. CHAPTER 13 Sales Promotion 13-1.
Profile of Maybelline T.L. Williams founded the Maybelline company in 1915 and introduced Maybelline Cake Mascara. In 1996, Maybelline was acquired by.
UNIT C The Business of Fashion
© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 9 DEVELOPING A MARKETING STRATEGY AND MARKETING PLAN 9-1Elements of a Marketing Strategy 9-2Marketing.
Merrill Lynch Consumer Focus Day November Healthcare Strategy in South Africa Strategy UPD Clicks Clicks Pharmacy The realisation of a dream.
1 Consumer Motivation CHAPTER 8. 2 Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase.
TODAYS AGENDA Record Results PLUS Higher Fees For YOU Industry Trends Why Money Mailer Model Overview Candidate Profile Questions Money Mailer 2012 RAPID.
Products, Services, and Brands Building Customer Value
Sales Promotion, Events, and Sponsorships
Chapter 8 Market Segmentation, Targeting and Positioning
Principles of Marketing
Customer-Driven Marketing Strategy Creating Value for Target Customers
Market-Based Management, 4th edition
Pricing.
Russias Image Among Foreign Investors Key findings from survey and focus group research conducted April – May 2007 by HART RESEARCH P e t e r D ASSOTESCIA.
Joint Value Creation Beyond Price ECR Europe Advisory – May 24.
Final Exam Sample Problem
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Part Two.
Section 26.2 Setting Prices
Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Managing the Pricing Function 14.
Product and Services Strategy
Airport Sustainability is a holistic approach to managing an airport to ensure Economic viability, Operational efficiency, Natural resource conservation,
Creating and Capturing Customer Value
New England Developments in Demand Response and Smart Grid 2010 National Town Meeting on Demand Response and Smart Grid Henry Yoshimura, Director, Demand.
New-Product Development and Product Life-Cycle Strategies
Chapter Two Company and Marketing Strategy
2009 Foster School of Business Cost Accounting L.DuCharme 1 Decision Making and Relevant Information Chapter 11.
Powers of Television Advertising Television advertising is the most influential and compelling form of commercial communication available to advertisers.
Kia Regional TV Market Update February RTM is the marketing bureau for Regional free to air TV.
Managing the Product.
MARKETING MANAGEMENT 13th edition
Strategy Review Meeting Strategy Review Meeting
25 seconds left…...
New-Product Development and Product Life-Cycle Strategies
We will resume in: 25 Minutes.
Setting Product Strategy
Fundamentals of Cost Analysis for Decision Making
Chapter 20 CONTROLLING FOR ORGANIZATIONAL PERFORMANCE
Sales Promotion Sales Promotion What is the difference between advertising and sales promotion? Advertising provides a reason to buy, and sales.
Online  Trade shows  Magazines  Research (NASDAQ-GS: GSOL) Global Sources’ 2009Importer Survey.
Project Strive Presentation to the Fantasy Board of Directors Acquisition Analysis 15 November 2008 Strictly Confidential.
The Marketing Decade The Marketing Decade is the beginning of the Marketing Decade and our mission to open new frontiers (markets)
Sun Chips-Multigrain.  The problem definition: a presentation on the future action of the brand related to test market of 10 months.  Frito-Lay, Inc.
“You cannot be all things to all people”
Group 2: Laura Nathalia Fransiska Dewi Diah Ayu Lestari Zakky Zamrudi
Market segmentation and targeting
Promotions Opportunity Analysis Chapter 4 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-1.
CHAPTER 11 COMMUNICATING THE PRODUCT OFFER. LEARNING OBJECTIVES An appreciation of the challenge associated with communicating a retail product offer.
Chapter 30 product planning Section 30.1 Product Development
04/24/2013 4/22/ YTD At A Glance 2 Alliance Energy Cases.
Managing Mass Communications. What is Sales Promotion? Sales promotion consists of a collection of incentive tools, mostly short term, designed to stimulate.
Dairy Pak A “Value Chain” Perspective on Product Line Strategy.
Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 3.
Section 30.1 Product Development Chapter 30 product planning Section 30.2 Sustaining Product Sales.
Chapter 1.3 Fundamentals of Marketing. Market and Market Identification All products do not appeal to all customers. When making new products, marketers.
The first step in developing a marketing strategy is to understand your customers, enabling reaction to their changing needs and the changing dynamics.
Or the 4 Ps of marketing.  The marketing mix or 4 Ps of marketing: ◦ Price ◦ Product ◦ Promotion ◦ Place  Decisions about these are based on the results.
Chapter 30 product planning Section 30.1 Product Development
Fundamentals of Marketing
Presentation transcript:

Red Bull Energy Drink Success Story The Current Energy Shot Category What is the Consumer Telling Us they Need? How will Red Bull meet the Consumer Needs? How will Red Bull Shots help you? Activation Plan AGENDA Agenda

AGENDA Agenda

RED BULL ENERGY DRINK SUCCESS STORY Energy Category Created & Led By Red Bull Red Bull Created and Leads the Energy Category *Source: D&M Trial & Awareness Study 2009 Red Bull is the original and Worlds leading energy drink. Red Bull has the highest Top of Mind awareness of any energy brand in Australia – 98%*. Red Bull has a strong consumer base built on consistent and heavy Brand support.

RED BULL ENERGY DRINK SUCCESS STORY The ‘Secret’ To Our Success One of the reasons for continued growth is the extraordinary marketing investments - consistently outspending all of our competitors. Source: Media Edge Jan –Jun 09

RED BULL MARKETING PROGRAM Heavy ATL – TV, Cinema, Radio Leverage Events/ Media Coverage Red Bull Top AthletesSampling and Cultural Marketing Nudist MASSIVE $25M IN BRAND INVESTMENT IN 2009 Christmas OutbackPigeon

AGENDA Agenda

ENERGY SHOTS BACKGROUND Energy shots are a rapidly emerging market in North America and Europe, generating in 2008: 188 million units sales value of US$423m Category growth +200% in 2008* Key findings from the 2009 Zenith Energy Shot Drinks report include: 250ml/500ml energy drinks may contain too much volume for some consumers; Shots opening up new consumption occasions for energy; Appealing to new energy consumers; Ready to expand into new markets. Source: Nielsen Scantrack USA 11/08; Zenith International Current Category Status

Category Outlook - Growth Estimated to reach 500 million units and a retail value approaching $1.2bn by Product theft already an issue Proper execution and exploitation of the Leading Brand(s) will maximize the potential THE CURRENT ENERGY SHOT CATEGORY Source: Zenith International

Energy shots are driving new users to functional products… and do not extensively cannibalize existing business = huge opportunity!!! MASSIVE INCREMENTAL OPPORTUNITY *Source: IRI Energy Shot Attitudes and Usage Study 1/09 Current Category Status – Incremental Business

THE CURRENT ENERGY SHOT CATEGORY Source: Aztec P&C Value 21/6/09 Performance of Current Energy Shots Low ROS and awareness and distribution of current energy shot offerings contributing to lower ROS Great opportunity for Red Bull to bring trust and credibility to the emerging shot category

AGENDA Agenda

CONSUMER RATIONALE: UNITED STATES 1) Need for a trusted brand: 5-Hour is an uncontested leader...but… “I don’t trust (energy shots) they feel cheap and the packaging is sketchy.”* 2) Need for better taste: Current shots on the market are not entirely satisfying … “Ugh. It doesn't taste very good.”* 3) Need for ‘Image’ in the category in addition to rational usage: Shots are associated with rational supplemental consumption … “Energy drinks are more of a social drink for me….Its fun to drink. Energy shots are about efficiency….one slug and I’m done.”* *Source: Greenfield qualitative research energy shot users December 2008 Gaps in the Current Category Offer

AGENDA Agenda

HOW WILL RED BULL MEET THE CONSUMER NEEDS? Many potential consumers do not try the category due to the lack of a trusted and premium brand. Top Brands drive the vast majority of sales and growth! The original and premium Red Bull brand will establish and grow the Energy Shot Category by addressing the Consumer Need for brand trust. *Source: Greenfield qualitative research energy shot users December 2008 “ Red Bull has a good energy drink so they should have a good energy shot as well. The Brand Red Bull would make me interested in trying their energy shot. ” * 1) Need for a Trusted Brand with Clear Positioning

Red Bull Shots have the same taste profile as the Energy Drink. Most current shots rank poorly on taste. 76% of energy shot consumers feel that energy shots taste bad* HOW WILL RED BULL MEET THE CONSUMER NEEDS? #1 DISLIKE OF CURRENT ENERGY SHOTS: BAD TASTE* *Source: IRI Energy Shot Attitudes and Usage Study 1/09; **Greenfield qualitative research energy shot users December 2008 “ (Red Bull Energy Shot) didn ’ t taste like chemicals, very familiar ” ** 2) Need for Better Taste

Red Bull has the Brand Image to attract new younger consumers 37% Current Energy Shot consumer is between % is between % of Red Bull Energy Drink users are between Over $25 million will be invested into the Red Bull Brand in HOW WILL RED BULL MEET THE CONSUMER NEEDS? “ Red Bull is the leader, they drive the cool little cars, they ’ re advertising and promoting all the time, there ’ s a trust. ” * *Source: Greenfield qualitative research energy shot users December ) Need for a Cool Image in the Category

AGENDA Agenda

RED BULL ENERGY SHOT - PRODUCT OVERVIEW 60 mL liquid, plastic bottle with screw top Same taste as Red Bull Energy Drink Same ingredients as Red Bull in other formats Non-carbonated No need for refrigeration – SNACK VENDING!!! Low calories per serving 25 calories for Red Bull Energy Shot Provides Sustained Energy For Hours…….

HOW WILL RED BULL SHOTS HELP YOU? Convenient Functionality Fits in a purse, pocket, glovebox, … New Usage Occasions Small, portable, resealable Warm Consumption Opportunities Option to buy now, drink later Functionally-focused Product Less liquid, no carbonation, fewer calories General Consumer Benefits

HOW WILL RED BULL SHOTS HELP YOU? New Impulse Purchases: Attracts new and existing energy consumers New Placement Opportunities: Ability to range in snack vending machines as no refrigeration required Each column in machines can range greater numbers of each product to its compact nature Additional Profits: Attractive margin, consistent rate of sale *Source: HIM Research 2009 Vending Benefits

HOW WILL RED BULL SHOTS HELP YOU? Red Bull will establish and build credibility for the Energy Shots category in Australia. Red Bull Energy Shots combine the Top Energy Brand with a viable and growing category Red Bull will drive penetration of Energy Shots by appealing to: The Current Red Bull Energy Drink consumer who will buy a shot in addition to Red Bull Energy Drink; The Current Shot Consumer who is looking for a trusted brand and better taste; The New Shot Consumer who recognizes the Red Bull Brand. “Red Bull brings the two things that are missing from the category…taste and trust.”* *Source: Greenfield qualitative research energy shot users December 2008 Creating a Clear Target Consumer

AGENDA Agenda

List Price (case): $52.80 (excl GST) Net 20% Terms (per shot):$1.94 inc GST RRP (vending): $4.00 inc GST Margin:$2.17 % Margin:52% ACTIVATION PLAN Pricing

Size (Approx): Bottle: 9.6cm (H) x 3.5cm (W) 12 Pack Unit: 9.9cm (H) x 14.7cm (W) x 10.9cm (D) Case: 12.2cm (H) x 23.1cm (W) x 15.5cm (D) Shipper: 12 bottles per self-merchandising unit (12 Pack) 2 x 12 pack units per case (24 units per case) 1 pallet = 350 cases (700 outers) ACTIVATION PLAN Detailed Product Specifications

ACTIVATION PLAN Product Available: W/c 1 September Distribution in store – wc 15 September Timings

ACTIVATION PLAN Volume Forecast for National Vending Customers