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BA 4700 MARKETING MANAGEMENT L.P.CHEW
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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
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Competition Current leader- Red Bull with a 59% Market share Our share- 0.04% Other competitors- Rock Star, Full Throttle, Sobe, PimpJuice, and Monster
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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
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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
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Promotional Objectives Our target market college age students 21-28 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 $11,461,379.60 Red Bull $120,330,05659.2% #1 180 $785,0260.4% #15 $11,461,379 5.0% #5
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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
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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
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Managing Promotional Plan Project Managers - Print Ad group, Commercial group, Event group, The Hawk group Weekly updates –Group Meetings Monthly Reports –Entire Promotional Team
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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
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