Green bull presentation

41
Marketing Plan Amanda Walling, Dale Brunke, Dustin Williams, Erika Singer, Rachel Donaldson, Taylor Pickering
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    22-Sep-2014
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    Marketing

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Develop a marketing campaign and plan to either take an existing product and make it more green, or create a new green product. We chose to alter the existing Red Bull to make it fit into the natural and organic product industry. Project completed for a Green Marketing class.

Transcript of Green bull presentation

Page 1: Green bull presentation

Marketing PlanAmanda Walling, Dale Brunke, Dustin Williams, Erika

Singer, Rachel Donaldson, Taylor Pickering

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Red Bull Mission"We are dedicated to upholding the Red Bull standard, while

maintaining the leadership position in the energy drinks

category and while delivering superior customer service in a

highly efficient and profitable manner.

We create a culture where employees share the best practices

dedicated to coaching and developing our organizations as

an employer of choice."

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Organizational Demographics

Four Main Segments- All incomes and education, mostly behavioral based

Athlete •Sport drink market •18-34 male and female •Diet conscious, energy boost seeking •Sub-market for woman, the carbohydrate-conscious, body-builders, or extreme sports enthusiasts

Worker •Energy drink user •18-34 male and female •Hard worker that wants a boost without coffee

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Organizational Demographics

Clubber •Energy drink mixer•18-34 male and female •Used in combination with other drinks•Dynamic and active

Student •Energy drink user •14-24 male and female •Seeking boost and quenched thirst •Use to enhance alertness

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Red BullProduct

•Original Energy Drink, Sugarfree, Total Zero, Special Editions•150 related types of merchandise

Place•Headquarters in Austria •166 Countries•General Merchandise Retailers, Bars and Clubs

Price•$2.49-$4.48•Prestige and odd-even pricing

Promotion•Advertising, events, sponsorships, vehicles, endorsements, music, TV, social media

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Finance Privately Owned Company

•43% of the energy drink market

Increase in Sales Every Year •3.1% increase in 2013

Total of 40 Billion Cans Sold Globally •5.387 billion cans sold in 2013

$ 3.57 Billion Sales in 2013•Annual Net Income $591.25 million

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Information & TechnologyCustomer Relationship Management- Managing a company’s interactions with current and future customers

SoLoMo- Social-Local-Mobile•Emerged as a result of the growing popularity of smartphones •Provides greater local precision to search engine results •Looking to funnel social media and location-based data through Facebook and Twitter

Red Bull Eco-Coolers•45% less energy than previous generations of cooling equipment

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Operations & ProductionWall-to-Wall Production

•Cans are manufactured and filled on the same site

One Production Hub Serving the Globe•2 billion cans produced and filled annually, all at the same location•More than 5,313 tons of CO2 emissions are saved each year

Smart Transportation•Can is the perfect size•30% less space than plastic, 40% less space than glass

Efficient Cooling•Installed 313,000 Eco-Coolers instead of standard coolers

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Research & DevelopmentLimiting Resources Involved

•Making the process more efficient•Shipping costs

Recycling to a Whole New Level•Compact cans•100% recycleable•60% less weight

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Industry AnalysisLipovitan

•The First Successful Energy Drink •Made in Japan in early 1960’s

Jolt Cola • Introduced in United States in 1985•“All the sugar and twice the caffeine”

Red Bull •Introduced on April 1st, 1987•Sold first in Austria •“Birth of a totally new product category”

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Industry AnalysisMulti-Billion Dollar Industry

•Red Bull sold $3.57 billion in 2013•Monster sold $3.1 billion in 2013

Market Share•Red Bull 43%•Monster 39%•Rockstar 10%

Energy Drink Market Continues to Grow •Total sales increased 6.7% in 2013

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Competition & Substitution

Competition•Energy Drinks- Monster, Rockstar, Amp, NOS, Full Throttle

Substitutes•Energy Shots

•5 Hour Energy, 6 Hour Power, Worx Energy Shot, Monster Hitman•Energy Drink Mixes

•MIO Energy, Crystal Light Energy, Propel Energy Drink Mix•Sports Drinks

•Gatorade, Powerade•Liquid Refreshment Beverages

•Coffee, Soda, Tea, Water

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MonsterProduct

•Monster Energy, Java Monster, Muscle Monster, Extra Strength, Rehab, Dub

Place•53 Countries•General Merchandise Retailers

Price•$2.69

Promotion•Sponsorship, athletics, endorsements, Monster Gear, events, music, Monster Girls, social media

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5 Hour EnergyProduct

•Original, Decaf, Extra StrengthPlace

•6 Countries•General Merchandise Retailers

Price•$3.00

Promotion•Athletics, gear, commercials, social media

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GatoradeProduct

•GSERIES, GENDURANCEPlace

•80 Countries•General Merchandise Retailers

Price•$2.00-$10.00

Promotion•TV, athletics, sponsorship, endorsements, social media

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Market Segmentation Data

Demographics•Male and Femail ranging from 14-34•Income- Middle to high class

•Yearly income around $30,000-$50,000

Geographics•National and International •Virtually every gas station, convenience stores, grocery stores, liquor stores, bars, clubs•Middle class to higher class areas

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Market Segmentation Data

Psychographics•Lifestyle

•Men/Women who are active, on the go, in school, athletic, play video games, work constantly day/night

•Attitudes•High energy, outgoing, open to new ideas

•Reference groups•Music, video games, Internet, famous people in their 20’s to 30’s

•Culture•Young, outgoing, teenagers

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Social TrendsObesity Epidemic

•32.2% for men and 35.5% for women; in US •Product seen as unhealthy•Banning of sugary products in schools and food markets everywhere

Natural, Organic, and Health Epidemic •Everyone is looking for healthier food and drink options•Staying away from sugary “unhealthy” foods•Concerned about what is in the products we ingest

Environemtnal Epidemic•Sustability concious

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Legal & RegulatoryFDA Requirements

•Conventional food and beverage

Laws and Regulations•Federal Food, Drug, and Cosmetic Act•American Beverage Association

•Guidance for the Responsible Labeling and Marketing of Energy Drinks

•Child Nutrition Bill

Lawsuits•$85 million lawsuit against Red Bull

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PoliticalLegal Restrictions to Access New Markets•Foreign markets have expressed concern over ingredients used in energy drinks

Prone to Tax Increases•Growing concerns for public health•Tax on soft drinks or energy drinks •Aims to discourage unhealthy diets and offset the economic costs of obesity

Lobyists•Food and Drug Administration continue to investigate the safety of energy drinks  •Energy Drink companies hire lobbyists to fend off regulation • In 2013, Red Bull spent $240,000 total on lobby expenditures

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EconomicHealth and Wellness Beverages are Increasing in Market Sales

•Ready-to-drink beverages are most popular •Energy drinks, sport drinks, tea, coffee

•Sodas are Consistently in Decline

Energy Drinks Make Up a Large Part of the Economy •More than $12.5 billion of revenue •The market has grown 60% between 2008 and 2012

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Natural Outsourced Distribution

•Restricted control•Quality assurance is harder to maintain

European Union Regulations•Austria maintains sustainability legislation and policies in compliance with the EU•Austria has focus on increasing energy demand and climate change

Climate Change•Weather patterns•Human impact•CO2

•Increasing demands for emission reducing technology/ energy research•Can create physical risk

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TechnologyJust In Time Inventory

•Helps to reduce overhead costs

Smart Transporation•Convienent distribution •Fuel efficient advances

Efficienty Cooling•Renewable energy

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SWOT Analysis Strengths

•Category leader •Internationally

•Unique marketing strategies •Promotional activities •Sponsorship

•Strong brand identity •Consumer awareness/loyalty

•Production efficiencies •Distribution

Weaknesses•Contents are not patented •Product attributes•Breadth and depth•Flavors•Size•Price

• Lack of 3rd party certifications•Unhealthy ingredients•Technological advancements

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SWOT Analysis Opportunities

•Global emerging markets •Expansion of marketing and sponsorships

•Product extension •New flavors, healthier

•Growth in target market psychographics•Industry trends •Political and legal changes

Threats •Mergers and acquisitions

•Coca-Cola purchasing Monster

•Oversaturated Market •Healthy, natural and organic conscious trends •Competitors •Substitutes

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Introducing a New Product

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ObjectivesGoal- Unveil Green Bull into the U.S. Market by 2016

1. Increase sales by $12,495,000 (.35%) by 2017

2. Increase total market share by 2%, 43-45% by 2018

3. Pair with a non-profit organization during launch

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BudgetGreen Bull’s Budget for New Product Launch- 1.25 Million

•Development Costs- $187,425 (15%)

•Management Costs- $62,475 (5%)

•Operating Costs- $124,950 (10%)

•Marketing Costs- $874,650 (70%)

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Marketing Mix - Product Green Bull- An all natural and organic energy drink

Certifications•All Natural- NPA •Organic- USDA •Green Seal•Fair Trade Certified- Company wide

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Product Packaging

•Logo Design•Color change to green and silver

•Did You Know Panel•Key company sustainable attributes

•Materials•Compostable and recyclable

•Certifications

Can Sizes•8, 16, 20 oz. cans

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Product Key Ingredients

•Organic raw green coffee beans- •20mg

•Organic guarana berries- •Up to 3.6% to 5.8% caffeine

•Organic green tea-• Antioxidant called epigallocatechin-3 gallate (EGCG)

•B – Vitamins-• B12, B6

•Organic agave- •Used for natural sweetener

•Organic pomegranate- •For flavor

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Price Premium Pricing- More expensive because it’s quality and all natural and organic ingredients

Odd Even Pricing- Psychological manipulative pricing because of increased premium pricing

Volume Discounts•8.4 oz- $3.99 •4 Pack- $12.99•12 Pack- $39.99•24 Pack- $49.99

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Place Cross Merchandising- Place Green Bull in Energy Drink section and Natural and Organic section

General Merchandise Retailers•Grocery Stores- Safeway, King Soopers •Superstores- Walmart, Target •Warehouse Clubs- Sam’s Club, Costco •Convenience Stores - Gas Stations, Walgreens, CVS

Specialty Retailers•Natural and Organic Grocery Stores- Sprouts, Whole Foods, Wild Oats, Trader Joes

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Place Sustainable Distribution

•Green Facilities•80% renewable energy

•Transportation•7,000,000km of truck travel is saved each year

•Shorter Supply Chain•“Wall-to-Wall” production

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PromotionAdvertisement

•TV•Cartoon Commercials•Green Bull Gives You Wings

•Events •Green Flugtag•Iron Man•NASCAR•Farmers Market•Soap Box Derby•Marathons

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PromotionDirect Marketing

•Web and Internet•Social Media•Magazines•TV•Print Based

•Flyers

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PromotionSales Promotion

•Street Teams•Green cars•Giveaways

•Volume Discounts•Point of Purchase

•Eco-Coolers

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PromotionPublic Relations

•Press Releases•Sponsorships•Cause Related Partnership

•Donate 2% of profits to Alliance for Energy Savings

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Control & EvaluationControl

•Track Green Bull’s progressions for a year

Evaluate Objectives•After One Year-

1. Did we increase sales by $12,495,000 (.35%) by 2017?

2. Did we increase market share to 51% by 2018?

3. Did we pair with a non-profit organization by 2018?

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The End!

Thank You for Listening