Post on 21-Dec-2015
BA 4700MARKETING MANAGEMENTL.P.CHEW
Industry Background• Rapidly Growing, Highly Profitable
• More than 200 types of energy drinks available in U.S.
• $3 billion annually in drink sales
• Target Market- men and women 21-35
Competition
• Current leader- Red Bull with a 59% Market share
• Our share- 0.04%
• Other competitors- Rock Star, Full Throttle, Sobe, PimpJuice, and Monster
Company Background
• Anheuser-Busch has been in the beverage bottling industry since 1852
• Wide line of beer products including Budweiser and Michelob
• Ranked at #75 on the Forbes 500 list with sales of $13,566,000,000 and profits of $1,933,800,000 in 2003
Problems and Opportunities
• Strong Market Leader to Overcome
• Health Risks associated with the product
• Loyalty to Red Bull
• AB is a strong name and has high brand loyalty in the beer industry
• Economies of Scale» $200,000,000 +
• Distribution Channels
Promotional Objectives• Our target market
college age students 21-28
• Communication Objective- Create a buzz within
the college ageconsumer group
• Market Share Objective - Achieve a 5% market
share by the end of a 15 month promotional period
• Sales Objective- increase sales to $11,461,379.60
Red Bull $120,330,056 59.2% #1
180 $785,026 0.4% #15
$11,461,379 5.0% #5
Budget
• Promotional campaign will be estimated at $13,325,000 – Anheuser Busch spends over $330 million
dollars annually on advertising
• Print budget- $205,000
• Television Budget- $5,800,000
• Event Budget- $325,000
• Hawk Team Budget- $7 million
Promotional Plan .
• Print Advertising- Run in 3 major magazines
• Television Advertising - Advertisements run during
prime time television, extreme sporting event and MTV
• Event Advertising - campus tours, clubs and radio stations by spokesperson
• Hawk Team
Managing Promotional Plan
• Project Managers
- Print Ad group, Commercial group, Event group, The Hawk group
• Weekly updates– Group Meetings
• Monthly Reports– Entire Promotional Team
Evaluate Effectiveness
• Market Share- Currently 0.4% of the market
want to increase to have 5.0% market share• Sales Volume - $11,461,379.60• Customer Response
- brand awareness