Friday, November 11, 2011

Ch. 11 - Developing and Managing Products

"New peoducts are important to sustain growth, increase revenues and profits, and replace obsolete items".

New product-a product new to the world, the market, the producer, the seller, or combination of these.

Red Bull, who only markets one product which is its energy drink can fall into the 'new product' definition. The company's product created its own market "the energy drink category"Red Bull became hugely successful and operates within the global soft drink
marketplace. Within the soft drink industry its niche is the ‘energy drink’ market, of which
Mateschitz was largely responsible for creating. Red Bull currently is the leading energy drink
across the entire globe. It holds 70% of the market worldwide. Because Red Bull only markets one product they must implment a flawless process to assure sales.

Product/Brand Development Strategy Process

Great Strategy Begins with Great Research.
  • Once the brand’s core values have been identified, the road towards effective brand proposition development begins.
  • Development of the brand statement- commencing a Brand development strategy.  
  1. Brand Positioning Strategy
    • Clear, Engaging, Unique, & Relevant to the target audience. 
    • Able to incorporate an element of positive emotional attachment that is better than just "good”. 
    • Echoed within business, internally and externally.
    • Consistent across multiple marketing & advertising mediums.Continually toughened within the organization so that employees consistently deliver what is promised. 
    •   Able to adapt to a changing marketplace.
  2. Distribution Strategy
    • Intensive distribution aims to provide saturation coverage of the market by using all available outlets such as:
    • Super markets,
    • Gyms,
    • Coffee Houses: Subway, Barista, Costa Coffee, CafĂ© Coffee Day
    • In n Out Convenience Stores.
    • Pizza Outlets.
    • Media Relations
    • Use Technology
    • Monitor the Web
    • Create Public Awareness
  3. Integrated Marketing Communications Management
    • Sales Promotion:
    • Must encourage the 1 st purchase of the product in a store.
    • Make them aware of the product & its advantages.
  4. IMC Objectives
    • RedBull’s IMC objective is: Sales Promotions.
    • Create new target markets.
    • Large display in the Departmental stores.
    • Bull Hoof stickers on the floors of departmental stores promoting RB.
  5. IMC Budget
  6. Internet Web site
    • Promotions through social networking sites such as: facebook, twitter, Hi5.
    • Also, Ad promos on websites such as NDTV, zoom India.
  7. Media
    • Ad Campaigns on Prime TV channels such as NDTV good times, MTV, Channel V, Zoom, VH1, Star World & a few more.
  8. Budget
    • Magazine:
    • Femina, People, Rolling Stones.
    • 15k per page * 12 mnths- 180,000
    • Newspapers:
    • HT City & Delhi Times
    • 1lac per page * 4 weeks * 12 mnths- 4800000
    • Radio:
    • 10k per mnth * 12 – 120000
    • TV:
    • 5 lacs * 4 weeks * 12 - 2400000
    • Total Expense: 31,80,000
  9. Integrated Marketing Communication Methodologies
    • How do we communicate? How do customers process information?
    • There are many models & theories.
    • Thorough understanding of the audience's needs, emotions &
    • activities is essential to ensure accuracy & relevance of the message.
  10. Advertising
    • What target market do you want to reach?
    • What image do you want to portray?
    • What product or service do you want to emphasize?
    • How much money can you spend?
    • When is the right time to advertise?
    • Red Bull has an aggressive marketing campaign.
    • Red Bull uses all the available media channels, meaning cinema, TV, radio, press and the internet.
    • In other words the company focuses on the media through which it reaches its primary target market-young people.
    • RB allows the consumers to interpret the product & the moments of use themselves.
    • Red Bull achieves this by a humorous and witty cartoon campaign, transferring the message that this energy drink helps you to escape by `giving you wings ´.
  11. Consumer Promotions
    • Red Bull sponsors the motorsports or fun sports, but always where Red Bull is needed.
    • Red Bull does event sponsoring.
    • Event sponsoring attracts people’s attention towards the product and connects them.
  12. Personal Selling
    • Sampling is another very important part of the three pillar marketing system.
    • As the major purpose of Red Bull is to energize the company samples at the right place at the right time, where it finds its exact target market.
    • Examples of usage are driving, studying, working night shifts and sports.
  13. Media Plan
    • TV:
    • Still a staple medium of advertising.
    • Allows to demonstrate the advantages of RB.
    • Good Reach.
    • Magazines:
    • Economical.
    • Provides higher brand awareness.

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