BA 4700 MARKETING MANAGEMENT L.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 Communication Objective - Create a buzz within the college age consumer 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, Red Bull $120,330, % #1 180 $785,0260.4% #15 $11,461, % #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, Customer Response - brand awareness