4C’s of POSITIONING is the choice of target market & segment (where we want to compete) and differential advantage (how we want to compete)

Clarity: positioning idea must be clear in terms of target market and

differential advantage. WE WILL BRING PEOPLE TO THE PRODUCT NOT PRODUCT TO THE PEOPLE, THOSE WHO NEED AN ENERGY BOOST (5-2)

Consistency: a repeated message that has a high recall rate and

does not create confusion will strengthen the brand:” RED BULL GIVES YOU WINGS – UNCHANGED MESSAGE PLUS THE REGIONAL BRAND BIBLE

Credibility: ensuring there is enough belief/trust in the brand

message. Incompatibility between brand and message can damage it ASSOCIATION VIA HEAVY INVESTMENT, WITH ADRENALINE SPORTING ACTIVITIES

Competitiveness: differential advantage is to offer more than

others in same class “BRANDED MARKET” (9-5), “RB IS A WAY OF LIFE” (5-1), “THOSE WHO LOVE OUR STYLE COME TO US”(5-2)

POSITIONING ERRORS Underposit: No clear identity in the eyes of the customer

Overposit: Buyers have too narrow an image of brand

Confused posit: Too many claims made for brand to support

Doubtful posit: Lack of credibility in the eyes of the buyer

ABC OF MARKET POSITIONING

Attributes: Distinguishing Qualities, characteristsics CAFFEINE, CAN OF DRINK Benefits: comparative advantage of product LEGAL HIGH, KEEPS YOU AWAKE Claims: communications of specific claims and benefits to consumer GIVES YOU WINGS IMPLIED THAT SPEED AND REACTIVITY WERE ENHANCED, VITALIZES BODY AND MIND, CLAIMS IMPROVED CONCENTRATION

REPOSITIONING Change in taste/poor sales performance forces it. Involves changing target market, differential advantage or both. Image repos: keep product and market same but

change image. In some markets products are a form of self expression – make it cool Product repos: Product changes but market remains same. Divesting certain services/products without leaving market. Intangible repos: try different market segment with

existing product. Lucozade went from sick kids to super fit sportsmen. RB TARGETS OLDIES MARKET VIA MUSEUMS (11,1), FLUGTAG (, FORMULA F1

Tangible repos: change both product and Market

7 WAYS OF POSITIONING Creative positioning of the brand in the consumers mind Characteristics: IT GIVES YOU WINGS AND GIVES YOU ENERGY (4-4) Price: PREMIUM PRICED AND CONTROL OF SUPPLY DENYING ACCESS TO SOME (4-1) Product Use: ASSOCIATION OF RB AS THE BEST WAY TO GET A PICK ME UP – CAN-VAN,CLUBBERS (7-2), (4-5) User: LINKED TO THRILL SEEKERS AS PRIMARY USER (4-5) Product Class: RB SEE IT IN A CLASS OF ITS OWN (9-5) Symbols: HERCULES/TWO RED BULLS = POWER (4-4) Competition: COMPARISON TO RIVALS – MORE THAN A DRINK IT’S A WAY OF LIFE (5-2)

4 - Branding

WHO WHAT AND WHY OF PRODUCT POSITION AND BRAND Who buys Red Bull?:

Product: Who is it for (demographics) GEN YERS, ADRENALIN SPORTS JUNKIES Positioning: How/when is it used WHEN TIRED AS A PICK ME UP Branding: Users attitudes, lifestyle, psychographics SEE “BEHAVIOURAL SEGMENTATION”

What are they buying?: Product: What will it do? (physical characteristics) REHYDRATE, INVIGORATE, ADD CAFFEINE AND TAURINE INTO THE BLOODSTREAM VIA A VISCOUS SWEET SYRUPY LIQUID JOLT Positioning: Its benefits in use AIDS CONCENTRATION, KEEPS YOU GOING, INVIGORATES, STIMULATES MIND AND BODY, GIVES YOU THE COMPETITIVE EDGE. WILL MAKE YOU STAND OUT FROM THE USUAL CROWD. Branding: Its character/personality IF IT WERE A PERSON IT WOULD BE THE LIFE AND SOUL OF THE PARTY, WITTY INTELLIGENT AND FUN TO BE AROUND. IF IT WERE A VEHICLE IT WOULD LEADING THE REST OF THE PACK INTO SPACE. IF IT WEREANANIMAL IT WOULD BE ABULL

Why should they buy Red Bull?: Product: Why use it? (benefits) INSTANT EFFECT, LOW RISK PURCHASE, CLEAN AND SAFE, ALWAYS AVAILABLE. PART OF A COOL SUBCULTURE Positioning: How our claims are justified TRIALLEADS TO REPEAT PURCHASES, IT WORKS AND ALL THE HIP PEOPLE SAY IT ANS THEREFORE IT MUST BE SO Branding: What makes our product different THIS BRAND GIVES BACK MORE THAT 30% OF ITS TURNOVER TO SPORTS EVENTS AND GIVE AWAYS.. IT CREATED THE GENRE OF ENERGY DRINK AND ARE HAPPY TO BE AN ANTI-BRAND

INTERNAL MARKETING AUDIT Used to revisit and refine the strategy based on changing marketplace

OPERATING RESULTS – by Product, customer, geographic region: Sales: Market Share: Profit Margins: Costs: Strategic Issues Analysis: Marketing Objectives: Market Segmentation: Competitive advantage: Core competencies: Positioning: Portfolio Analysis: Marketing Mix Effectiveness: Product: Price: Promotion: Distribution: Marketing Structures: Marketing organization Marketing Training: Intra/Interdepartmental comms: Marketing information systems: Marketing Planning System: Marketing Control System:

BRAND POSITIONING To dissect current brand position and create new brand position

Brand domain: Where it competes in the marketplace: ENERGY DRINKS MARKETPLACE FOR 16-30 YEAR OLDS (xx) Brand heritage: the background/culture & how it achieved its sucess SECRETIVE BUZZ MARKETING WORD OF MOUTH EDGINESS (xx) Brand values: the core values and characteristics GIVING BACK TO THE CLIENT, 2 WAY RELATIONSHIP ANTI-BRAND Brand assets: what makes it distinct, logo, strapline, relationship RED BULLS HEAD-ON LOGO, IT GIVES YOU WINGS, IT SUPPORTS ITS CUSTOMERS PURSUITS FOR THE COMPETITIVE EDGE Brand personality: the character of the brand if it were a person/object IF IT WERE A PERSON IT WOULD BE THE LIFE AND SOUL OF THE PARTY, WITTY INTELLIGENT AND FUN TO BE AROUND. IF IT WERE A VEHICLE IT WOULD LEADING THE REST OF THE PACK INTO SPACE. IF IT WEREANANIMAL IT WOULD BE ABULL Brand reflection: how it relates to self identityand how trhe consumer feels about themselves as a consequence of consuming it ENERGIZED, REFRESHED, RECHARGED, ANTI-ESTABLISHMENT, EDGY, HIP, FIT

WHEN PRODUCT BECOMES BRAND

Core product: The commodity and its offering ENERGY DRINK IN A CAN

Actual Product Features: Something that may or may not confer a customer benefit but provide a level of functional ity Taurine, caffeine filled sweetness, in a small can,

Augmented Product Features: Added values and benefits that work on the emotional needs of the user It keeps you awake and reinvigorates tired users Its part of an edgy sub culture It gives you the competitive edge

Core product + Functional features+ Augmented extras =

brand

The Marketing Plan 1. Executive summary 2. Objectives 3. Product/market

background 4. S.W.O.T. 5. Analysis 6. Strategies 7. Forecasts 8. Marketing Programmes 9. Financial implications 10. Operational

implications 11. Appendices

BATTLEFIELD WARFARE STRATEGIES IN MARKETING Offensive marketing warfare strategies are strategies designed to obtain some

objective, usually market share, from a target competitor. In addition to market share, an offensive strategy could be designed to obtain key customers, high margin market segments, or high loyalty market segments.

Frontal Attack - This is a direct head-on assault. It usually involves marshaling all your

resources including a substantial financial commitment. Envelopment Strategy (also called encirclement strategy) - This is a much broader but

subtle offensive strategy. It involves encircling the target competitor Leapfrog strategy -This strategy involves bypassing the enemy’s forces altogether. In the

business either develope new technologies, or create new business models. Flanking attack - This strategy is designed to pressure the flank of the enemy line so the

flank turns inward. You make gains while the enemy line is in chaos.

Defensive marketing warfare strategies are strategies designed to protect your

market share, profitability, positioning, or mind share. Position defense - This involves the defense of a fortified position. such as barriers to

market entry around a product, brand, product line, market, or market segment. Mobile defense - This involves constantly shifting resources and developing new

strategies and tactics. Introducing new / replaced/modified products, changing market segments, changing target markets, repositioning products, or changing promotional focus

R RB KEPT CHANGING THEIR STRATEGIES DEDICATING 2 DAYS A WEEK (8,5) Flank position - This involves the re-deployment of your resources to deter a flanking

attack. Counter offensive - This involves countering an attack with an offense of your own - If a

competitor introduces a new product, retaliate with a fighting brand Pre-emptive strike - This is a “defensive” attack initiated because an enemy attack is

believed to be imminent. Strategic withdrawal - This involves freeing your resources deployed in untenable

positions - this can entail dropping unprofitable products, product lines, or brands

Guerrilla marketing warfare strategies are strategies designed to wear-down the

enemy by a long series of minor attacks. 1) targeted legal attacks on the competition RED RHINO (9,5)

2) product comparison advertising 3) executive raiding 4) short-term alliances CADBURY SCHWEPPES IN OZ (4,3) 5) selective price cuts 6) deliberate sabotage of competitions test markets, research, campaigns, or promotions 7) orchestrating negative publicity for a competitor

BUILDING A SUCCESSFUL BRAND

MARKETING COMMS OBJECTIVES

THE MARKETING CONCEPT

The undifferentiated norm

3 - Integrated Marketing – The MARKETING MIX

PROMOTION The promotional blend to communicate with target audience. Use Differential advantage to beat the competition.

1.Marketing Strategy: “RED BULL ISN’T A DRINK IT’S A WAY

OF LIFE ” (5-2)

2.Positioning statement: 4C’s

3.Communications decisions:

a) Identify target audience: 18-30YRS THRILL SEEKERS (7-6) b) Set comms objectives: “RED BULL ISN’T A DRINK IT’S A WAY OF LIFE ” (5-2) c) Create message: GIVES YOU MORE ENERGY, CONCENTRATION OR SEXUAL VIRILITY d) Select promotional mix: BUZZ MARKETING e) Set promo budget: 35% OF TURNOVER REINVESTED (5-2), 2 DAYS PER WEEK SPENT ON BRAINSTORMING NEW IDEAS (

4.Execute integrated marketing comms strategy a) Seed the market: GIVE INNOVATORS FREEBIES b) Target the audience: PROMOTE NEAR PLACES THAT NEED ENERGY – CLUBS GYMS TRUCK-STOPS c) Build the prestige: OF THE COMPETITIONS BY POURING MORE MONEY INTO THEM AND NOT LETTING THEM FIZZLE OUT -MUSIC FESTIVALS, SPORTING AND ART COMPETITIONS

5.Evaluate integrated marketing comms strategy “IN THE WORST CASE IF IT DOESN’T WORK WHAT HAVE I LOST? PRIDE, MONEY – ALL CAN BE REPLACED. THE CHALLENGE IS TO BUILD A MYSTIQUE” – IN REFERENCE TO

FUTURE FOR RB (11-5)

PRICE (STRATEGIES) Market Penetration: low entry price to gain market share 23 OTHER RB COMPETITORS DID THIS TO FIGHT FOR LOWER ORDER OF LATE MAJORITY CONSUMERS Market Skimming: High initial price to capitalise from

those that ARE willing to pay a premium. Once exhausted the price is lowered to attract interest from price conscious – SALES IN PETROL STATIONS AND BARS KEPT PRICES HIGH – THIS ATTRACTED COMPETITORS WHO COULD SEE AN OPPORTUNITY TO CUT THE MARGIN OFFER AN EQUIVALENT AND GAIN MARKET SHARE. THE ENTRY OF COMPETITON INTRODUCED ELASTICITY INTO THEIR PRICING MODEL AND FORCED THEM TO DROP THE PRICE Early Cash Recovery: achieve minimum payback period for NPD Product Line Promotion: Profit from a range of products

is netted across them and calculated into the sell price Differential: discriminatory factors like region for sale,

bulk buy discount Product line pricing: strategy surrounding an entire

range (premium priced) Competitive: Lowering price to increase market share

and benefit from economies of scale as production increase to meet sales demand Sales Maximising: Economies of scale keep price keen and acts as a barrier to market for competitors

PROMOTION MIX Personal Selling (oral comms to make a sale) LOCAL SALES REPS AND SMALL DISTRIBUTORS (3-5) LESSONS LEARNED FROM PETROL STATIONS (3-2) FAST PATH TO MARKET VIA INDIVIDUAL ACCOUNTS (4-3) STUDENT BRAND MANAGERS SPREAD THE WORD (7-5)

Publicity or PR (free promotion in press) RUMORS NEVER HURT – BULLS BALLS (8-2) HEALTH CONCERNS AND LEGAL ACTION (8-3) CLAIMS OF SEXUAL POTENCY DRUG LINKS (8-1) SPORTS, MUSIC ART EVENTS GENERATE PR AS BYPRODUCT OF MAIN AIM TO GIVE BACK

Sponsorship (support the influencers/heroes)

IN-CROWD WANT TO COPY THE HERO DJ (4-1) RED BULL MUSIC ACADEMY (5-4) GLOBAL EXTREME SPORTS EVENTS (5-3) RED BULL BC1 BREAKDANCE COMPETITION (6-3)

Sales Promotion (incentives to consumers) FREE DRINKS TO HERO DJ’S (7-4) FREE CASES TO STUDENT BRAND MANAGERS (7-5) TRUCK WITH FRIDGE FOR “THOSE IN NEED…” (7-2)

Direct Marketing (personal, targeted, specific) MERCHANDISE TO KEY INDIVIDUALS (4-1) FAIL – PLAYSTATION LOGO PLACEMENT (7-4) BUZZ MARKETING AT ANTI-BRANDERS (4-5)

Advertising (paid communications) LESS PRINTED MEDIA & MORE BUZZ MARKETING (4-5) LATER USE OF TV/CINEMA ADS (11-2) QUIRKY CARTOONS OCCASIONALLY USED (4-4) MEDIA PUSH ONLY HAPPENS IN MATURE MARKETS IT IS NOT A TOOL FOR ESTABLISHING THE MARKET BUT FOR RE-INFORCING

SUMMARY: VIRAL MARKETING (WORD OF MOUTH) WAS THEIR SUCCESS, CREATING A BUZZ IN THE STUDENT COMMUNITIES. GRASS ROOTS ADVERTISING IN THEIR PERSONAL SPACES (UNIVERSITY PRESS). SELLING TO A SCEPTICAL MARKET THAT REJECTED TRADITIONAL MASS MARKETING MEANT THAT THE TAILORED MIX SUITED THEM. USING IT AS MUCH AS A TOOL FOR INCLUSION, THE ANTI-BRANDERS CARRIED THE RB FLAG INTO EVRY CLASSROOM, CLUB, GIG & EVENT ACROSS THE LAND

CHANNEL DISTRIBUTION STRATEGY Selection: Influenced by buyer behaviour, willingness of intermediaries to help REQUESTED A DEDICATED SALES FORCE(3-5), PULL MARKET MADE IT APPEALING TO ALL AS THE RETAIL OUTLETS OFFERED ATTRACTIVE MARGINS BY GOING TO SMALL WHOLESALERS THEY WERE FASTER TO MARKET AND HAD LEVERAGE OVER THE APPROACH THAT WAS TAKEN TO GET IT INTO THE RETAIL OUTLETS. OFTEN GOING TO THE CONSUMER THEMSELVES TO GENERATE A DEMAND IN ADVANCE OF SETTING UP SUPPLY CHAIN AND SHOWING PREFERENCE FOR ONE OVER ANOTHER Intensity: saturation in all retail outlets or selective method of target distribution SELECTIVE SALES STRATEGY LEADS TO EXCLUSIVE DISTRIBUTION (3-5), VENDING MACHINES (4,3) SCHWEPPES ALLIANCE (4,3) Integration: How involved are the manufacturer and channel distribution PORTERS 5 FORCES RB HAD ADVANTAGE OF SUPPLIER POWER OF DISTRIBUTION CHAIN

4P’s: Product, Price,

Place, Promotion.

+ Process, People &

Physical

environment/evidence

4P’s: Product, Price,

Place, Promotion.

+ Process, People &

Physical

environment/evidence

PRODUCT LAUNCH STRATEGIES

MARKETING ORIENTATED PRICING

THE AUGMENTED PRODUCT

COST DRIVERS

DIFFERENTIAL ADVANTAGE

PLANNING AT PRODUCT LEVEL

PUSH VS PULL

DISTRIBUTION CHANNELS

PRODUCT (Satisfies customer wants/needs) Attributes: Tangible: Availability and delivery, Performance/ features, Price,

Design/quality, material properties of the product Intangible: Image/reputation, perceived value, guarantees/ service

support, immaterial properties Satisfaction Levels in product: Core Benefit: The main offering – REVITALISES MIND AND BODY (XX) Generic: The undifferentiated norm Expected: The givens in the product, features, quality level Augmented: additional benefits – Delivery/Credit, warranty, aftersales Potential: possible augmentations in the future

Aspects: Physical: what the product is Functional: what the product does YOUR NEED Symbolic: What it means to have the product Categorisation - customers ability to judge product Search: Customer can easily discern, evaluate and compare (size, shape, colour) Experiences: Cannot be discerned until the customer has used it (taste in case of food) Credence: Cannot be evaluated as they vary on each occasion (restraint service) or a pet food as it cannot be easily evaluated Categorisation – features & performance of product Breakthrough: Radical performance advantage, drastically lower prices

or both Improved: Not different to others just obviously superior but at a

competitive price Competitive: No innovative advantage, attracts due to compromise of

cost and performance

COMPETITIVE ADVANTAGE