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