RED BULL AUDIENCE AND MEDIA ANALYSIS Georgia Warder

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ENERGY DRINK MARKET Audience & Market Analysis

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Current state of the Energy Drink Market •  $55 Billion Industry worldwide in 2017

•  One of the fastest growing products in the global drinks market5 •  Caffeine based energy drinks hold the major market share5

• Major Brands in the market5 •  Red Bull •  Monster •  5 Hour Energy •  Rockstar Inc. •  Pepsi Co.(AMP) •  Coca Cola (Nos)

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Who is buying energy drinks?

• Primary Consumer Demographic3 •  Males •  18-34 •  Highly Active Lifestyles •  College students and Professionals

•  High stress or fast pace work environment

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Current Energy Drink Advertising • Branding is crucial to the success of energy drinks5

•  Monster and Red Bull focus advertising on sponsorship

• Guerilla Marketing (Outside of Media) •  Common Sponsorships

•  Sporting Events •  Athletes •  Music Events/Production •  Video Games •  Thrill Seeking Events

•  Example: Red Bull Stratos space diving project

•  Largest media spending category •  Cable and Network TV

•  In 2016, Red Bull and Monster spent $30+ million on TV advertising3

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RED BULL Audience & Media Analysis

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Current State of Red Bull •  Total US Sales 2016 - $994.19 million4 • As of 2015, held 43% of the market share7

•  #1 Energy Drink Brand • Products6

•  Red Bull Energy Drink (Regular) 8.4oz, 12oz, 16oz, 20 oz •  Red Bull Sugar Free 8.4oz, 12 oz •  Red Bull Zero 12oz •  Red Bull Editions 12oz •  Red Bull Editions Sugar Free 12oz

• Media Advertising Spending2 •  2nd Quarter 2017 - $7,963,619 •  1st Quarter 2017 - $4,317,615 •  Total 2016 - $52,665,044

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Red Bull’s 2016 Media Advertising Spending1

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Current Red Bull Media Plan •  Largest spending categories1

•  Cable and Network TV •  2016 spent combined $29+ million •  There was 48.7% decrease in spending on Network TV and a 36%

decrease in spending on Cable TV from 2015 to 2016.

•  Largest increased spending category1 •  343.8% spending increase for US internet display advertisements

from 2015 to 2016 •  This increase is likely due to the increasing popularity of

personalized marketing catalyzed by improved data mining.

•  Largest decreased spending category1 •  Spot TV advertising decreased 70.4% from 2015-2016. •  Likely due to the increase of personalized marketing available

online for a cheaper cost.

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Other Red Bull Advertising Outlets • Overall Red Bull spending on Media Advertising

decreased 28.1% from 2015 to 2016.1 • Why?

•  Guerilla marketing strategy •  Using more budget to sponsor events to increase revenue

•  Public Relations coverage of events on social media creates great buzz with nominal cost

•  Creating Red Bull owned media6 •  Red Bull TV •  The Red Bulletin Magazine •  Red Bull Racing •  Red Bull Radio •  And more!

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Who is buying Red Bull?

• Primary Consumer Demographic3 •  Male 45 pts. more likely than general population •  18-24 162 pts. more likely than gen. pop.

•  College students •  High school diploma or some college

• Secondary Consumer Demographic3 •  Male 45 pts. more likely than gen. pop. •  25-34 68 pts. more likely than gen. pop.

•  Professionals/Business Men

Data for Red Bull Regular Only

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What media do they use? •  TV

•  Evening Adult Animation3 •  Males 40 pts. more likely to watch than females •  18-24: 78 pts. more likely to watch than general population •  25-34: 79 pts. more likely to watch than gen. pop.

•  Popular Shows •  Rick and Morty •  Robot Chicken •  Family Guy •  American Dad •  Bobs Bugers

•  Each of these shows ranges from 27 pts. to 184 pts. more likely to be viewed by adult males ages 18-34.3

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MONSTER Audience & Media Analysis

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Current State of Monster •  Annual Sales - $1,703,230,0002 •  As of 2015, held 39% of the market share7

•  #2 Energy Drink Brand •  Products8

•  Monster Energy (Regular) 16oz •  Lo-Carb Monster Energy 16oz •  Monster Energy Absolute Zero 16oz •  Monster Assault 16oz •  And more!

•  Total Annual Advertising Spending Budget - $86,700,0002 •  Media Advertising Spending2

•  2nd Quarter 2017 – $3,223,067 •  1st Quarter 2017 - $2,352,635 •  Total 2016 - $1,461,646

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Current Monster Media Plan •  Largest spending categories2

•  Network, Cable and Spot TV •  2016 spent combined $850,000+ •  Spot TV funding increased minimally while other TV outlets increased

greatly

•  Largest increased spending category2 •  421.2% spending increase for Network TV advertisements from

2016 to 2017 •  Likely in response to attempt to match Red Bull TV campaign

•  Largest decreased spending category2 •  Newspaper advertising decreased 69.2% from 2015-2016 •  Likely due to the decline of the print newspaper industry

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Monster 2016 Media Advertising Spending2

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Who is buying Monster?

• Primary Consumer Demographic3 •  Male 40 pts. more likely than general population •  18-24 99 pts. more likely than gen. pop.

•  College students •  High school diploma or some college

• Secondary Consumer Demographic3 •  Male 40 pts. more likely than gen. pop. •  25-34 80 pts. more likely than gen. pop.

•  Professionals/Business Men

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What media do they use? •  TV

•  Evening Adult Animation3 •  Males 40 pts. more likely to watch than females •  18-24: 78 pts. more likely to watch than general population •  25-34: 79 pts. more likely to watch than gen. pop.

•  Popular Shows3 •  Rick and Morty •  Robot Chicken •  Family Guy •  American Dad •  Bobs Bugers

•  Each of these shows ranges from 27 pts. to 184 pts. More likely to be viewed by adult males ages 18-34.

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RECOMENDATIONS Red Bull Media Plan

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Recommended Red Bull Target Audience •  Females

•  18 pts. more likely to drink Red Bull than Monster in Simmons Index3

•  18-34 •  Significantly more likely than ages 35+ to consume energy drinks3

• Active Lifestyle • College Student or Graduate • More likely to drink Sugar Free Red Bull

•  22 pts. more likely than regular Red Bull in Simmons Index3

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Target Audience - Message • Make Red Bull appeal to women ages 18-34

•  Commercials and advertisements based around working women •  Success stories from women who drink Red Bull •  Motivational from Red Bull Commercials •  Keep focus on Sugar Free Red Bull or Red Bull Editions

•  Product Placement •  MTV shows •  Adult Swim shows

•  Start a women-positive social media campaign using paid promotions

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Media Budget - Streaming • Video Streaming Services

•  Hulu3 •  Female: 14 pts. more likely to watch than general population •  18-24: 86 pts. more likely to watch than gen. pop. •  25-34: 67 pts. more likely to watch than gen. pop.

•  Pros: •  More personalized and selective approach to promotion •  Directly reaching target

•  Cons •  Possible mismatch between the advertisement and the TV show

• Recommendation: $2 Million to Advertisments on Hulu

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Media Budget - TV •  Television Advertisements

•  Adult Swim3 •  Female: 29 pts. less likely than general population •  18-24: 195 pts. more likely than gen. pop. •  25-34: 41 pts more likely than gen. pop.

•  Comedy Central3 •  Female: 17 pts. less likely than gen. pop. •  18-24: 76 pts. more likely than gen. pop. •  25-34: 17 pts. more likely than gen. pop.

•  This one does not appeal to women as much as men but, this age group, regardless of gender is still important to reach through this station.

•  MTV3 •  Female: 12 pts. more likely than gen. pop. •  18-24: 172 pts. more likely than gen. pop. •  25-34: 173 pts. more likely than gen. pop.

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Media Budget – TV (cont.) •  Oxygen3

•  Female: 40 pts. more likely than general population •  18-24: 35 pts. more likely than gen. pop. •  25-34: 2 pts. more likely than gen. pop.

•  VH13 •  Female: 15 pts. more likely than gen. pop. •  18-24: 113 pts. more than gen. pop. •  25-34: 40 pts. more than gen. pop.

•  Pros •  Television stations above are viewed frequently by the target audience

•  Cons •  Ads could be wasted on disinterested or distracted viewers of TV

• Recommendation: $10 million to TV commercials on stations listed

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Media Budget – Social Media Advertising • Social Media Use

•  3 or more times a day3 •  Female: 16 pts. more likely than general population •  18-24: 55 pts. more likely than gen. pop. •  25-34: 66 pts. more likely than gen. pop.

•  1-2 times a day3 •  Female: 3 pts. more likely than gen. pop. •  18-24: 7 pts. more likely than gen. pop. •  25-34: 34 pts. more likely than gen. pop.

•  Pros •  More personalized approach to promotion and advertisement

•  Cons •  Possible Ad Fraud

• Recommendation: $8 million to Big Data driven Social Media Advertising

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Recommended $20 million Red Bull Media Budget

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$8,000,000.00

$10,000,000.00

$2,000,000.00

Social Media Advertising

Network TV

Streaming - Hulu

Citations 1Advertising Red Books. (2017). Red Bull North America, Inc. profile: Media Spend.

Retrieved from Advertising Red Books database November 20, 2017. 2Advertising Red Books. (2017). Monster Beverage Corp. profile: Media Spend.

Retrieved from Advertising Red Books database November 21, 2017. 3Simmons Market Research (2015). Fall NHCS 2015 Adult Study 6 Month.

Retrieved November 21, 2017. 4Monster Beverage. (n.d.). Sales of Red Bull energy drinks in the United States

from 2014 to 2016 (in million U.S. dollars). In Statista - The Statistics Portal. Retrieved November 30, 2017, from https://www.statista.com/ statistics/558082/us-sales-of-red-bull-energy-drinks/.

5Energy Drinks Market - Global Trends, Competitive Landscape and Sector Forecasts to 2022. (2017, November). Retrieved November 19, 2017, from https://www.mordorintelligence.com/industry-reports/energy- drinks- market.

6Red Bull founder. (n.d.). Retrieved November 30, 2017, from http://energydrink-us.redbull.com/en/company.

7Monster, Red Bull, Rockstar Ranked. (2015, May 11). Retrieved November 20, 2017, from http://time.com/3854658/these-are-the-top-5-energy-drinks/.

8Monster Energy. (n.d.). Retrieved November 21, 2017, from https://www.monsterenergy.com/us/en/products/monster-energy.

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