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MENDEL UNIVERSITY IN BRNO

Faculty of Regional Development and International Studies

Marketing Communication of Red Bull CZ, s. r. o.

Diploma thesis

Thesis supervisor: Author:

prof. PhDr. Miloslav Foret, CSc. Bc. Romana Jedličková

Brno 2013
Declaration

I declare that I have worked out this diploma thesis individually by using literature
sources mentioned in the list of literature.

Brno, 21th May, 2013

……………………………………….
Acknowledgement

I would like to thank my supervisor, prof. PhDr. Miloslav Foret, CSc. I also thank all
employees of the marketing department at Red Bull Czech Republic, Ltd. for providing
information on marketing activities of the company. Also I would like to thank my
family for their tolerance while writing the thesis.
Abstract

JEDLIČKOVÁ, R. Marketing Communication of Red Bull CZ, s.r.o. Diploma thesis.


Brno, MENDELU in Brno, 2013.

The main aim of the diploma thesis is to determine marketing communications and
communication mix of the company Red Bull CZ s.r.o., due to introduction of the new
product on the market. Reader will step by step understand how the company
communicates on the market, and what the specific ways of communication are
towards consumers on the selected example of Red Bull Editions launch. The thesis
further concentrates on student environment and non traditional marketing
communications. Conclusion of the work is based on primary data research and
internal study of the company Red Bull CZ, Ltd.

Key words: marketing communications, marketing communication mix, new product


launch, energy drink, Czech Republic
Table of Content:

1 INTRODUCTION .............................................................................................. 8

1.1 AIM OF THE THESIS ............................................................................................................... 9


1.2 METHODOLOGY .................................................................................................................... 9

2 USED LITERATURE ........................................................................................ 11

2.1 MARKETING ......................................................................................................................... 11


2.2 CORPORATE COMMUNICATION ............................................................................................. 11
2.3 BRAND ................................................................................................................................ 13
2.4 INTEGRATED MARKETING COMMUNICATION ........................................................................ 14
2.5 COMMUNICATION MIX ......................................................................................................... 17
2.5.1 Advertising ................................................................................................................... 18
2.5.2 Sales promotion ........................................................................................................... 18
2.5.3 Public relations.............................................................................................................20
2.5.4 Personal Sales .............................................................................................................. 23
2.6 NEW MEDIA AND DIGITAL MARKETING COMMUNICATION .................................................... 23

3 PRACTICAL PART .......................................................................................... 26

4 RED BULL ...................................................................................................... 26

4.1 HISTORY OF RED BULL COMPANY ........................................................................................ 26


4.2 INTERNATIONAL COMPANY FIGURES .................................................................................... 26
4.2.1 New product beginning ............................................................................................... 26
4.2.2 Creation of a new market ............................................................................................ 27
4.2.3 Distribution ..................................................................................................................28
4.2.4 Red Bull CZ, Ltd. .......................................................................................................... 29
4.3 CORPORATE STRUCTURE ..................................................................................................... 29
4.4 MARKETING DEPARTMENT OF RED BULL CZ, LTD. .............................................................. 31
4.5 MARKETING MIX ................................................................................................................. 32
4.5.1 Products ........................................................................................................................ 32
4.5.2 Price .............................................................................................................................. 35
4.5.3 Distribution .................................................................................................................. 35
4.6 COMMUNICATION MIX ......................................................................................................... 36
4.6.1 Event Marketing .......................................................................................................... 36
4.6.2 Communication ............................................................................................................ 36
4.6.3 Opinion Leaders Program ..........................................................................................38
4.6.4 Consumer Collecting Program ...................................................................................38

5 MARKETING COMMUNICATION AND LAUNCH OF THE NEW PRODUCT ... 42

5.1 LAUNCHING NEW PRODUCT TO THE MARKETS...................................................................... 42


5.2 SWOT ANALYSIS – MARKET POSITIONING AND NEW PRODUCT ............................................ 43
5.2.1 Strengths ....................................................................................................................... 43
5.2.2 Weaknesses ................................................................................................................... 44
5.2.3 Opportunities ............................................................................................................... 45
5.2.4 Threats .......................................................................................................................... 45
5.3 EVALUATION OF SWOT ANALYSIS ....................................................................................... 46
Weights ...................................................................................................................................... 47
Points ......................................................................................................................................... 47
5.3.1 SWOT results – SO Strategy ....................................................................................... 47
5.4 INTRODUCTION OF LAUNCHING STRATEGY FOR THE CZECH MARKET....................................48
5.4.1 Launch strategy objectives .......................................................................................... 50
5.4.2 “Day D” concentrated launch ...................................................................................... 51
5.5 CREATION OF WEB PAGES BEFORE DAY D – ONLINE COMMUNICATION ................................ 51
5.5.1 Suggestions for improvement ..................................................................................... 55
5.6 ONLINE AND OFFLINE MEDIA .............................................................................................. 56
5.6.1 Media focus ................................................................................................................... 56
5.6.2 Media plan .................................................................................................................... 56
5.6.3 Suggestions for improvements ................................................................................... 57
5.7 DAY D GUIDLINES AND TEAM SAMPLING .............................................................................. 58
5.7.1 Day D culture and sport performances ..................................................................... 59
5.7.2 Guerrilla marketing activities .................................................................................... 61
5.7.3 Suggestions for improvements – AIDA model .......................................................... 62
5.8 CONSUMER COLLECTING TEAM LAUNCH ..............................................................................68
5.8.1 Student Brand Manager launch ................................................................................. 69

6 DISCUSSION ................................................................................................... 71

7 CONCLUSION .................................................................................................74

8 USED LITERATURE ........................................................................................ 77


1 INTRODUCTION

Energy drinks on the world market appeared relatively recently. The Red Bull company
was founded in Austria in 1984. Sales of Red Bull Energy Drink started on the Austrian
market, thereby creating the market categories of energy drinks. Thanks very successful
marketing strategy Red Bull spread to more than 168 countries around the world and to
this year were drank over 30 billion cans of Red Bull.

It is interesting that even in times of financial crisis, energy drinks are one of the few
categories of products whose sales are growing; as they grow the Red Bull company
grows as well. The reason may be the ever increasing demands on the individual, both
at work and in personal life. The fact that the energy drink category is so successful is
leading to a very strong competitive environment. This is true even on the Czech
market, so it is still necessary to develop new marketing and sales activities in order to
maintain Red Bull company its leadership. Precisely to marketing activities is following
a third of the total net profit of companies incomes.

Red Bull develops innovative marketing communications, which was associated with
the launch of a new product on the Czech market. Red Bull company for the period of
its existence did not come to the consumers with nothing equivalent. The introduction
of the new Red Bull Editions is a breakthrough point in its history. With this launch the
company could raise brand awareness, increase the number of consumers and hence
increase the sales.

The reason why I have chosen this topic is the fact that Red Bull is developing very
interesting marketing activities, due to them remains a premium brand in the market.
Certain reason was undisputed fact that I have been working for the Red Bull company
for couple years. Into the launch of new editions I have been actively involved both in
the student environment and the special nationwide launch called Day D.

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1.1 Aim of the thesis

The diploma thesis deals with marketing communications of the company Red Bull
Czech Republic, Ltd. Its main objective is to familiarize the reader with its innovative
marketing communications, on the example of a new product launch on the market.
Introduction should increase its brand the number of consumers and fans by non-
traditional approaches of the company. The campaign will be described by stating basic
objectives, stages and tactics. Then the situation will be analyzed and evaluated. Based
on these findings will be proposed suggestions for improvements.

1.2 Methodology

The thesis is comprised of two main parts. The first part is intended on theoretical
knowledge of given topic. Reader should understand the basis of marketing, brand and
corporate identity. The main objective is dedicated to integrated marketing
communications. Consequently is described communication mix with all its features
like advertising, direct marketing, sales promotion or event marketing as part of public
relations. The stress is also put on nontraditional part of marketing communication
such as guerrilla marketing, WOM marketing or buzz marketing. New era is connected
to new media, which is described by digital marketing.

Practical part of the thesis benefits from used literature as well as from own authors
observations. To meet the objective of this work was to be carried out interviews with
the employees of the marketing department for a collection of primary and secondary
data. The author of the thesis has been working at Red Bull Czech Republic for more
than three years, as the Student Brand Manager in Brno city. Due to this position,
author has gained valuable information about marketing and communication mix.
Interviews were conducted primarily with consumer collecting department,
communication department, brand department and individual employees who were
directly involved in the campaign.

Primary data were collected at the beginning of the work, using SWOT analysis that
aims to identify internal and external environment of the company before the actual
start of the campaign itself.

Secondary data were obtained after a previous interview with the heads of various
departments who have delivered specific data to evaluate the campaign. In evaluating
the campaign has helped the well-known marketing AIDA model, which shows the
patency of proper marketing steps in the campaign and its correct application.

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The main internet source became the site of Red Bull, both Czech and foreign, in which
are described in details information about the company and its products and events
themselves.

After a thorough data collection, the entire campaign is described and analyzed in
details. In this work was applied knowledge of computer program MS Office,
particularly MS Excel and MS Word. On the basis of the information gained were
designed possible changes to improve individual steps in marketing communication
towards consumers.

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2 USED LITERATURE

2.1 Marketing

Nowadays meaning of marketing can be perceived in many different ways but not just
in sense of selling and advertising like it used to be before. Successful companies have
several things in common - customers’ orientation, filling their wishes and strong
marketing background. According to Kotler and coll. (2005, p.6) “marketing must be
understood not in the old sense of making a sale – ‘telling and selling’ – but in the new
sense of satisfying customer needs”. This assertion is confirmed also by Zamazalová
(2010, p.3): “The key point for any marketing considerations and subsequent
marketing decisions should be a customer”. “Marketing can thus be understood as a set
of activities designed to anticipate, identify, stimulate and satisfy customer needs”.

Marketing uses set of tools defined as marketing mix. Kotler and Armstrong (2009,
p.76) describe its significance as follows: “The marketing mix consists of everything
that the firm can do to influence the demand for its product”. The many possibilities
can be collected into four groups of variables known as the “the four Ps”:

› product,

› price,

› place,

› promotion.

Marketing is the art of getting people to change their minds. Marketing is also the truth
made fascinating. (Levinson and Levinson, 2011, p.7)

2.2 Corporate communication

Fast accelerating present days are very important for both internal and external
corporate communication, due to quick changes in consumer behaviour. It is very
important to maintain decent corporate culture, identity and image.

Corporate communication can be characterized as a management function that is


responsible for overseeing and coordinating the work done by communication
practitioners in different specialist disciplines, such as media, public affairs and
internal communication. (Cornelissen, 2011, p.5)

Van Riel (2004) defines corporate communication as “an instrument of management


by means of which all consciously used forms of internal and external communication
are harmonized as effectively as possible”, with the overall objective of creating “a
favourable basis for relationships with groups upon which the company is dependent”.

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Van Riel thesis is confirmed by Foret (2011, p.54) who writes, “corporate
communication is based primarily on management and is focused on both, inside the
enterprise (on individual departments and employees) as well as externally, especially
on the aforementioned key segments of the public”. “Also in this context, the growing
importance of management tools such as corporate identity and corporate culture”.

Corporate culture can be defined as ‘the deeper level of basic assumptions and
beliefs that are shared by members of an organisation, that operate unconsciously and
define in a basic “taken for granted” fashion an organisation’s view of itself and its
environment’. (Schein, 1984)

Pelsmacker and coll. (2010, p. 21) abridges the relationship between corporate
communication and identity as: “Corporate communications can be defined as the
visualisation of corporate identity”. According to Melewar (2003) the basic concept of
corporate identity means: “Corporate identity is about how an organisation
presents, positions and differentiates itself visually and verbally at corporate, business,
and product levels.

The importance of corporate identity for company management and all its activities
should be seen primarily as following:

1. in the complexity of its creation - it means that the formation of identity should
be based knowledge of the internal structure of the company, its origin and
genesis, its values, mission, vision and goals;

2. in the presentation of company originality, uniqueness and specificity;

3. in a stable, long-term impact both internally and externally, which gives


company credibility as to its own employees and external target groups, the
public;

4. in the framework of all communications and activities of the company, which


just adds identity unambiguous clarity and interpretability of final beneficiaries
(segments of the public and customers);

5. the integrity and identification of employees and colleagues with the company,
as well as in prestige and attractiveness for new audiences;

6. in a uniform visual style, which facilitates, accelerates and streamlines all


communications of the company.

The aim is to express its difference and uniqueness. (Foret, 2011, p.55)

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2.3 Brand

In order to understand brand itself and brand marketing, it is suitable to explain the
term brand first, The American Marketing Association defines it as:“ brand is a name,
term, sign, symbol or design, or a combination of these, intended to identify the goods
or services of one seller or group of sellers, and to differentiate them from those of a
competitor’. Pelsmacker and coll. (2010, p.51) adds, defined like this, a brand is a set of
verbal and/or visual cues, and as such it is a part of a product’s tangible features.

Maquire (2007, p.1) points out the mutual interconection and importance of perceiving
both terms brand and image; the product should suit the corresponding brand and its
image through its means of communication in order to create a total image of the
company, the brand and the products. The brand and the image of a company
represent the promise that products and services will perform to expectations.

According to Doyle (2008), giving a product a brand name does not always guarantee
success. Pelsmacker and coll. (2010, p. 55) adds, successful brands have to meet a
number of conditions:

› Successful brands are differentiated. Consumers clearly perceive them as having


unique benefits and being different from the competition.

› Top brands are positioned on quality and added value. Superior product quality
is a prerequisite for successful branding. Often it is not only the product that is
superior but also the additional service which is less easily copied by
competitors.

› Leading brands continually innovate to answer changing consumer tastes and to


keep ahead of the competition.

› A leading position can only be sustained by having full support and complete
commitment of both management and employees.

› Brands cannot become success stories without long-term, consistent


communications support, making customers aware of their uniqueness and
keeping the brand’s value trustworthy.

Building a strong brand is one thing; sustaining brand equity in the long run is
something else. Besides a well-balanced marketing programme and continuous and
consistent integrated marketing communications support, it may be necessary to adapt
the brand portfolio over time. (Pelsmarck and coll., 2010, p.65)

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According to Pelsmarck and coll., 2010, p.66), it is also important for marketer to focus
on consumer brand equity. They point out that, the former type of brand equity,
representing the ‘marketing value’ of a brand, all of them trying to capture the extent to
which the brand gives the product extra marketing strength. Each of the brand equity
factors is determined and influenced by marketing communications strategy, and leads
to a number of benefits. The components of brand equity are looked at in the picture
below:

Pic. n. 1 – Consumer brand equity


Source: Pelsmarck and coll., 2010, p.67

2.4 Integrated marketing communication

Marketing communication is one of the most exciting and stimulating areas in modern
marketing. All areas of marketing have been affected by the technological advances.
The means by which we communicate with each other have changed radically and this
is reflected in the commercial world. These advances, particularly the Internet and
World Wide Web have enable interaction on a scale that could not have been dreamed
about few decades ago. Mass advertising, no longer has the influence it had over
previous generations. (Egan, 2007)

Taking in the marketing communication has changed and adapted other word –
integrated. Integrated marketing communication tends to use tools of communication
mix ideally together to achieve best outcomes and spot the maximum of target
audience. Percy (2008, p.4) explains basic meaning of integrated marketing

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communication such as: "IMC is basically planning in a systematic way in order to
determine the most effective and consistent message for appropriate target audiences".
Or as stated by Pride and Ferrell (2012, p.506): “Integrated marketing communications
refer to the coordination of promotion and other marketing efforts to ensure maximum
informational and persuasive impact on consumers”.

The marketing communication environment is changing due to new technologies and


different perspective of perceiving markets during last decades. Proven methods no
longer apply and classical above the line communication (TV spots, etc.) begun to be
not enough. Marketers focus on smaller markets with bigger impact. Kotler and coll.
(2005, p. 720) write about change in companies’ mass marketing attitude: “More and
more, they are developing focused marketing programmes designed to build closer
relationships with customers in more narrowly defined micromarkets. Vast
improvements in information technology helps marketers to keep closer track of
customer needs – more information is available about customers at the individual and
households levels than ever before. New technologies also provide new
communications avenues for reaching smaller customer segments with more tailored
messages”.

This similar idea was earlier written by Ogdan (1998) who wrote: “The shift from mass
marketing to segmented marketing has had a dramatic impact on marketing
communications. Just as mass marketing gave rise to a new generation of mass media
communications, so the shift towards one-to-one marketing (i.e. individual approach to
consumers) is spawning a new generation of more specialized and highly targeted
communications efforts”.

Payne and Holt (2001) add: “Communications should become more effective and
efficient as a result of the consistency and the synergetic effect between tools and
messages. In other words, IMC has an added value when compared with traditional
marketing communications”.

Therefore, the marketer should recognise that to be successful, the integrated


marketing communication concept must start at the corporate level. Thus, the overall
corporate strategy sets the tone for the organisation’s marketing strategy. This, in turn,
consciously combines the elements of the integrated marketing communication plan. It
is imperative, therefore to understand just how the four elements of the marketing mix
‘communicate’ with the organisation’s target market. See picture below. (Koekemoer
and Bird, 2004, p.6)

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Pic. n. 2 – The integrated marketing communications mix and the four Ps
Source: Koekemoer and Bird, 2004, p.6

Smith (2004) pointed out ten golden rules of IMC:

1. Get management support for IMC (integrated marketing communications) by


ensuring they understand its benefits to the organization.

2. Integrate at different levels by putting IMC on the agenda of different meetings;


horizontally between managers in different functions such as distribution and
production and ensure that PR, advertising and sales are integrating their efforts.

3. Maintain common visual standards for logos, typefaces and colours.

4. Focus on a clear marketing communications strategy. Have clear communications


objectives. Have clear positioning statements. Link core values into every
communication.

5. Start with a zero budget – build a new communications plan by specifying the
resources needed and prioritizing communications activity accordingly.

6. Think customers first. Identify the stages before, during and after each purchase and
develop a sequence of communications activities that help the customers through each
stage.

7. Build relationships and brand values. All communications should strengthen


customer relationships. Ask how each communication tool enables you to do this.
Customer retention is as important as customer acquisition.

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8. Develop a good marketing information system which defines who needs what
information when. IMC defines, collects and shares vital information.

9. Share artwork and other media. Consider how advertising imagery can be used
across mail shots, new releases and the web site.

10. Be prepared to change it all. Constantly search for the best communications mix.

2.5 Communication mix

The marketing communications mix is a subset of the marketing mix, both being the
tools which deliver respectively communications and marketing strategies. The
marketing communication mix provides a menu of communication methods which can
be used separately or ideally blended to achieve communication objectives. (Dáhle and
coll., 2010, p.227)

Pelsmacker and coll. (2010, p. 4) summarize communication mix into nine areas of
interest:

- Advertising

- Sales Promotion

- Sponsorship

- Public Relationships

- Direct marketing communications

- Point-of-purchase communications

- Exhibitions and trade fairs

- Personal selling

- E-communications

Smith (2000) goes in explanation even further and broadens the communication mix of
word of mouth (WOM) and corporate identity.

Adding more and more diversified tools to the communications mix leads to more
media being used and more fragmented media, and increases the need for integration
of marketing communications. As a spin-off from this integration of fragmented
communications tools, it becomes less and less relevant to measure the effect of one
single element in the communications mix, such as advertising. The measurement of
communications effectiveness will have to focus on techniques such as monitoring and
tracking, which assess the effectiveness of a total campaign at the brand level.
(Pelsmacker and coll. (2010, p. 30)

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2.5.1 Advertising

Advertising is non-personal mass communication using mass media (such as TV, radio,
newspapers, magazines, billboards, etc.), the content of which is determined and paid
for by a clearly identified sender (the company). (Pelsmacker and coll. (2010, p. 4)

Or as similarly stated by Green (2012, p.6): “Advertising is a form of communication


paid for by individuals or companies or companies, with the aim of influencing people
to think or act in a particular way or providing information. The aim of most ads is to
persuade us to buy goods or services offered by the advertiser”.

The role of advertising has traditionally been seen as an aid to sales. This it does in four
main ways by:

1. creating awareness
2. providing essential information
3. helping to build a relevant brand image
4. acting as a regular reminder to try, buy or use the brand

Advertising can create a unique personality for a brand. It is undeniably true that it is
the brand personality that is the key to sparking consumer desire. (Yeshin, 2006, p.11)

According to Foret (2011, p.256) the basic functions of advertising can be defined as:

› Informative, when advertising informs about the new product, its features. The
purpose of this ad is to generate interest and demand (pull-strategy).
› Persuasive advertising enters in a period of increased competitive pressure, and
is therefore to ensure that impress the customer to just purchase our product
(push strategy).
› Reminding advertising has to keep the customer awareness of the product and
brand, for example before new season.

2.5.2 Sales promotion

Promotion is communication that builds and maintains favourable relationships by


informing and persuading one or more audiences to view an organization positively
and to accept its products. (Pride and Farell, 2012, p.510)

In the 21st century sales promotion is getting more discussed, consumers are more
sensitive and aware to marketing promotions. Also consumers’ behaviour is involved or
even changed by good selling promotion strategy. This is confirmed by Mullin (2010,
p.19) to claim: “A sales promotion can assist in a change in behaviour. Persuading

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someone to ‘try it’ offers the chance to experience a product and the brand values that
come with it.

Sales promotion is highly developed process that could stimulate the sale of product in
the market and should be appropriately handled to extract most of its potential. Pride
and Farell (2012, p.510) wrote: “For maximum benefit from promotional efforts,
marketers strive for proper planning, implementation, coordination, and control of
communications.

Sales promotion is a range of price and value techniques designed within a strategic
framework to achieve specific objectives by changing any part of the offer, normally for
a defined time period. (Mullin, 2010, p.38)

Sales promotion is the extra that can be applied to promotion – advertising, PR and
direct marketing – in all its parts and especially includes sales at the point of purchase
in face-to-face marketing. (Mullin, 2010, p.29)

Formally defined, sales promotion is the use of incentive techniques that create a
perception of greater brand value among consumers, the trade, and business buyers.
(O’Guinn and coll., 2009, p.563)

Sales promotion can be also a great buzz for introducing a new product on the market.
Pride and Farell (2012, p.511) confirm this fact and stated: “A considerable amount of
promotion efforts focus on creating awareness. For an organization that is introducing
a new product or a line extension, making customers aware of the product is crucial to
initiating the product adopting process”.

Several sales promotion techniques are used to stimulate demand and attract attention
in the consumers market. Some of these are coupons, price-off deals, premiums,
contests and sweepstakes, samples and trial offers, phone and gift cards, rebates.
(O’Guinn and coll., 2009, p.573) Let’s have a closer look at sampling.

2.5.2.1 Sampling

Q’Guinn and coll. (2009, p.573) describe sampling as a sales promotion technique
designed to provide a consumer with an opportunity to use a brand on a trial bases with
little or no risk. Sampling is particularly useful for new products, but should not be
reserved for new product alone. Foret (2011, p. 282) adds, whatever distributed by
delivery to households by mail or may be obtained directly at the shop, sampling is
effective but also costly method in launching a new product on the market.

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2.5.3 Public relations

In the literature there are plenty of public relations definitions perceiving PR from
different perspectives. Gordon (1997, p.57) wrote that all definitions highlight the fact
that PR is about managing communication in order to build good relationships and
mutual understanding between an organization and its most important audiences.

Other explanation by Bowen and coll. (2010, p.9) claims that public relations is a
conduit, a facilitator, and a manager of communication, conducting research, defining
problems, and creating meaning by fostering communication among many groups in
society. Bowen these facts wittily wrapped into one accurate sentence, which defines it
all: “A Public relations is a strategic conversation.”

Public relations use wide range of communication channels thru which marketers
communicate with its target audiences. According to Svoboda (2009, p.23) if necessary,
we can choose the most diverse mix consisting of:

 Personal communication channels


 Non personal communication channels

In the first case one person communicates with one or more persons mutually (e.g.
personal visit, storefront). Non personal communication channels insert media
between the subject and the target group, and thus do not allow direct feedback. Major
media those are available for PR:

› print media (newspapers, magazines, publications),


› electronic media (radio, television),
› out-of-home media (e.g.: large-scale outdoor advertising),
› Internet,
› other (CD, DVD, MP3, etc.).

2.5.3.1 Event marketing

Public relations also use in practice communication tools and a number of complemen-
tary activities. One of these activities is organizing events. Pelsmacker and coll. (2010,
p. 370) mention, Event marketing can be defined as using a number of elements of the
promotion mix to create an event for the purpose of reaching strategic marketing objec-
tives. This issue in his book also devotes Foret (2011, p.310) and notes one of the rea-
sons of organizing events is own introduction of new product to the market.

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Event marketing and public relations is also discussed by Preston (2012) who wrote,
events present a tangible, real world presence to brands they support in any sector of
the market, and they have the capacity to orientate themselves toward a number of dif-
ferent audiences types. Organizations similarly will use events to support public rela-
tions. Goldblatt (2005, p.7) thinks about the topic from selling point of view: “Events
help attract and influence consumers to purchase specific product and services from
small retail stores up to major regional shopping centers with hundred of shops”.

Organizing events has also positive approach to team building besides obvious brand
building. Foret (2011, p.310) mentions, organizing events have to improve and
strengthen relations between both employees (current, former and future) within the
organization, but also with the immediate environment (the local population and its
representatives) and customers.

While organizing events Red Bull Company bets on nontraditional and attractive ex-
periences to the general public. Interest is enormous; the number of visitors in the
thousands. Represent even helpers who participate in a unique atmosphere. This
makes the whole thing (i.e., both the unconventional content and the interest, and par-
ticipation of the public) extremely attractive and also appealing to the media. (Foret,
2011, p.312)

2.5.3.2 Guerrilla marketing

Guerrillas are in fact, the low-cost form of present marketing communications, which
present the new product entering the market by unusual, imaginative and surprising
manner. Catching of the customer becomes extraordinary event (sensation), on which
the people speak (WOM), and that is also appealing to the media. (Foret, 2011, p.314)

Levinson and coll. (2008, p.6) describe topic as the guerrilla brand evolved from a
passionate belief that businesspeople with limited resources can compete -and win- on
a level playing field with other companies – regardless of their size or financial strength
– as long as they’re armed with the right weapons and knowledge. They also stated
most importing principle of guerrilla marketing which is valuable more than money:
“Unlike traditional marketers, Guerrillas invest more time, energy, imagination, and
knowledge (or information) than money. So it is obvious that guerrillas are more about
witty ideas, know how, enthusiasm and creativity to spare than spending unreasonable
amount of money for advertising.

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Guerrilla marketing embraces 360 degrees of communication, reaching target
audiences in as many ways as are affordable and possible. Guerrilla marketing ignited
possibilities in the entrepreneurial imagination. (Levinson and Levinson, 2011, p.24)

Guerrillas intend to reach smaller audiences as we could observe similar trend in


integrated marketing communication. In sense of guerrilla marketing mass
communication is skipped. Statement is agreed by Levinson and coll. (2007, p.8):
“Guerrilla marketing aims its message at individuals or, if it must be a group, the
smaller the group, the better”.

2.5.3.3 WOM marketing and buzz marketing

Marketing wants to be heard and wants to tell stories, than ever before in the 21st
century. People intend to identify themselves with rumours and unusual stories, which
also leads to new product recommendations, if the campaign is successful or
remarkable in some way. Due to this fact new adjectives and terms are applied in the
marketing communications like word of mouth marketing or buzz marketing. WOM or
word of mouth can be interpreted as subject, which is interesting to talk about by
visitors of spectacular events or consumers of a new product. Term Buzz or
“excitement” can be construed as starter of spontaneous low-cost marketing
communication, and is usually connected to some taboo, secret information, humor or
notability. Mourdoukoutas and Siomkos (2009, p.3) wrote, consumers has been
influence by WOM campaigns that make products popular, especially as the spread of
transportation and communication technologies created an integrated world market
where information and commodities flow quickly from one market to another. WOM
and buzz do not usually begin and spread out of nowhere, but through customers of
exceptional abilities to influence other customers.

However, WOM and buzz campaign are mutually connected, it doesn’t have to mean
that those two complements works particularly always together. Mourdoukoutas and
Siomkos (2009, p.7) stated, moreover, launching a WOM campaign is one thing;
turning it into buzz is another. Rosen (2000, p.33) argues that Buzz does not just
depend on how customers feel about products, but also whether and how they are
connected to the company that launches the product and to other consumers.

Controversy and coolness make consumer epidemics candidates susceptible to WOM


and buzz campaigns that begin with a few consumers, willing to share their experience
with other consumers; and continue with buzz campaigns that aggregate and accelerate
product WOM that targets the right group of consumers with a right message in the
right social context.

22
Seven principles of launching an effective WOM and buzz marketing campaign:

Principle 1: Begin with the Consumer

Principle 2: Be Innovative

Principle 3: Target the Right Group

Principle 4: Create the Right Message

Principle 5: Find the Right Environment

Principle 6: Launch a WOM Campaign

Principle 7: Turn WOM into Buzz (Mourdoukoutas and Siomkos (2009, p.8)

2.5.3.4 Opinion leaders (OL’s)

Public relations or marketing communication tactics such as WOM and buzz marketing
can be supported by unpaid “whistleblowers” and their opinions, to whom are people
naturally looking up to. Smith (2004, p.76) acknowledges the fact, opinion leaders also
influence the communication process. Opinion leaders often enjoy higher social status
(than their immediate peer group), are more gregarious and have more confidence to
try new products and services. Endorsement from opinion leaders is valuable and can
contribute towards credibility. Foret (2011, p.34) adds, main source of information for
visiting certain cultural, historical and natural attractions, are most becoming by mouth
recommendation of peers, friends or superiors.

2.5.4 Personal Sales

Personal sales or personal selling, is according to Foret (2011, p.301), a very effective
communication tool, especially in a situation where we want to change the preferences,
attitudes, stereotypes and habits of customers. Or as stated by Heerden and Cant
(2004, p.2), personal selling has also provided individual buyers with the opportunity
to consult with a salesperson and to make a more informed decision when purchasing a
product or service. Personal selling can also create longer relationship with the clients,
as wrote Pelsmacker and coll. (2010, p. 529), personal selling can be defined as two
way, face-to-face communications used to inform, give demonstrations to, maintain or
establish a long-term relationship with, or persuade specific members of a particular
audience.

2.6 New media and digital marketing communication

New media, term which haven’t had even exist in the first half of 20th century, now has
been spreading all over marketing campaigns globally. It is no wonder, technological

23
advances are unstoppable and digital marketing has entered new era. Wertime and
Fenwick (2008) wrote that, new media has rapidly brought the power for anyone to
create and share content with everyone. Massive social networks are becoming digital
watering holes that connect people globally. Marketers have an unprecedented array of
channel options through which to reach and interact with consumers.

Not so long ago, Television and Print were the mainstays of most marketers’ media
plans, with Radio, Outdoor, and a few other things filling in the gaps where
appropriate. Even with the emergence of the internet in the late nineties, television
commercials were heavily favored by dotcoms as the way to build their brands.

What a difference e few years make. Digital technology has spawned a dizzying array of
channels. New media, including social networks, games, mobile, and other digital
formats, will continue to attract ever larger audiences. Consequently, marketers will
shift more of their activities to these channels. However, marketers will use them as
one-to-one channels, not as “mass” media. (Wertime and Fenwick, 2008)

Also Chaffey (2008, p.19) illustrates the range of access platforms and communication
tools that form the online channels which e-marketers use to build and develop
relationships with customers:

› web,
› e-mail,
› databases,
› plus mobile/wireless and digital TV
› blogs,
› feeds,
› podcasts
› and social networks

Digital marketing contribute to marketing activities aimed at achieving profitable


acquisition and retention of customers. Chaffey (2008,p.19) adds, it should not be the
technology that drives e-marketing, but the business returns from gaining new
customers and maintaining relationships with existing customers. It also emphasizes
how e-marketing does not occur in isolation, but is most effective when it is integrated
with other communications channels such as phone, direct mail or face-to-face. Online
channels should also be used to support the whole buying process from pre-sale to sale
to post-sale and further development of customer relationships. He also suggest that e-
marketing, should be based on knowledge of customer needs developed by researching

24
their characteristics, behaviour, what they value, what keeps them loyal and then
delivering tailored web and e-mail communications.

25
3 PRACTICAL PART
4 RED BULL

4.1 History of Red Bull company

The story of the company dates back to the early eighties, since then the product and
event portfolio is widely spread worldwide. Certain information is selected for the
needs of my work in order to be familiar with company itself and to illustrate the brand
communication toward consumers.

4.2 International company figures

Company name: Red Bull GmbH

Country of origin: Austria

Founders: Dietrich Mateschitz, Chaleo Yoovidhya

Established: 1984

Product: Functional beverages and Red Bull Cola. Media

Distribution: 168 countries

# of employees: 8 294

# of participating students: 5000

Headquarters: Fushl am See, Austria

Primary target group: 16-29 years old

4.2.1 New product beginning

It was the year 1982 when Unilever marketing representative specializing in toothpaste
BlendTex read an article about the ten richest men of Japan. Certain Mr. Lord Taisho
figured in the top positions and it was just this man who introduced the high-energy
drink to Japanese market. Reader was none other than the Austrian nonconformist
goal setter Dietrich Mateschitz.

Dietrich Mateschitz was really excited about soaring product. He personally knew the
effects of energy drinks during his business trips to Thailand, which helped him to
overcome differences and time consuming fatigue. Also he learned from his BlendTex
business partner that this is a very desirable commodity amongst the tired drivers. The
most popular energy drink was called "Kratindaeng", meaning water buffalo. All
ingredients of this drink were listed on the package without any signs or patent
protection formula for the composition. Ingredients, which was "Water Buffalo" better

26
than other energy drinks, was taurine, which the Japanese studies have given favorable
effects on the cardiovascular system.

4.2.2 Creation of a new market

At this time, there was no market for energy drinks. All production took place at
random, rather it was the pharmaceutical products without commercial markings,
which was appreciated by overworked consumers in Japan and Thailand or managers
who live out of suitcase on the business trips. Given these facts, commercially talented
Dietrich Mateschitz decided to build a new market. Market for energy drinks, which
will be distributed throughout the world.

„ If we don’t create the market, it doesn’t exist. “

Dietrich Mateschitz

In 1984, Dietrich together with Thai pharmacists Chaleo Yoovidhya and his son
Chalerm Yoovidhya, founded a company with the aim to give energy to the world. Both
founders passed the initial capital of five hundred thousand U.S. dollars, and the story
of Red Bull could start writing. Chaleo added the correct composition of drinks and
Dietrich marketing strategy. Profits were divided fairly by forty-nine percent for
Dietrich and Chaleo, the remaining two percent received Chalerm.

At that time, forty years old Dietrich gives testimony at Unilever and asks for a license
authorizing him to sell Red Bull energy drink in Austria. Getting the license was
subjected to scientific testing of the product, which took whole three years. During this
period Mateschitz had opportunity to forge basic concept of Red Bull brand. Dietrich’s
university friend Johann Kastner, director of an advertising agency in Frankfurt,
created a logo for his new energy drink. Logo with fighting bulls at sunset symbolizes
the never-ending source of energy. However, marketing guru knew that logo is not
enough. He needed a claim, which will define the mission of the energy drink. Kastner
offered countless variations, but none of them met with Mateschitz understanding.
"Red Bull Gives You Wing!" Finally said Kastner, who begun to lose patience with
Mateschitz. Since then the key communication tools have been set. Nevertheless, the
innovative brand could not come up to live yet. Crucial step to do was to find company,
which would produce the product. After a series of failed negotiations and refusals the
blue silver can eventually went off production line from the Austrian company Rauch in
1987.

27
4.2.3 Distribution

Red Bull spread their wings for the first time in Austria, and two years later in
Singapore. After the first two years, the company was in red numbers. Dietrich financed
all his expenditures from his own savings. He never adopted the financial support from
a third party. The results speak clearly, the Austrian market is too small to generate the
required profit. Therefore, in the 1992 Red Bull extended to the Hungarian market, due
to this movement Red Bull as a company was stabilized. In the same year, the market
was entered by first competitive energy drinks, for instance energy drink called Flying
Horse.

Two years later after the brand was introduced in Hungary, they were able to obtain
authorization for German market. Greatly successful introduction could be likened to
launch of the “space shuttle”. The management didn’t foresee such a large increase in
demand, which was reflected in production afterwards. The production lines
experienced lack of material for the production of cans. The leader position of energy
drinks in Germany took over the aforementioned competitor called Flying Horse. Red
Bull took another four years to regain the leading position on the German market.

The year 1995 was for Red Bull in the sign of expansion in five other countries.
However pivotal and groundbreaking distribution involved the English market. In spite
of the fact, UK marketing team meets the first complications with its name "energy
drink". The use of this name is legally entitled to only one of the UK's pharmaceutical
companies. As a consequence, there is a change in the name of the logotype. Energy
drink has been replaced by term "stimulation". At the moment, it can be used original
designation "energy drink". However, another problem arose when the English
marketing team failed to deal with the distribution of the product. After two years on
the English market were sold only two million cans, which led to a twelve million-dollar
loss. Mateschitz has solved the situation by recruiting a totally new team and putting
Austrian marketers to leadership positions. The financial situation stacked the
marketers to the ground, so they used low-cost forms of promotion, which was later
proved as very well worth it. Specific ways of marketing communication will be
described later in the resulting chapter on communication.

Among other things, in 1995 Red Bull Energy Drink has been launched to the Czech
Republic. Distribution, however, is still under intermediary company Rauch. According
to the Ministry of Justice and the Commercial Register of the Czech Republic official
representation of the company Red Bull in the Czech Republic has been dated since
1999.

28
Not all European countries have adopted Red Bull Energy Drink immediately.
Northern countries like Denmark and Norway allowed distribution only to pharmacies
due to potential health risks that may cause energy drink to weaker individuals. Other
country refusing Red Bull products was France, who declared composition of the drink
illegal. At the present time, countries overcame all barriers and distribution of Red Bull
was allowed to enter or create the market. Paradoxically these countries have
contributed to changes in the company communication in such form as we know it
today. As was said before, more detailed description will be discussed in the following
chapter lines.

The year 1997, two years after Red Bull energy drink was brought to the English
market, the company management decided to expand overseas in the United States of
America. First country to launch was California and experiments with right positioning
could have started. Attractive communication ensured that during the first year were
sold over five million cans of energy drink. Expansion of Red Bull continued freely to
other federation states, for example, Florida, Utah etc.

Red Bull products can be purchased on all continents except Antarctica. According to
an article in the online version of Forbes magazine from April 2012, the sale of Red Bull
is banned in Iceland and Uruguay, while continuously expanding the Chinese market.
[3]

4.2.4 Red Bull CZ, Ltd.

Red Bull entered the Czech market in 1995 thanks to the company Seagram, which
dealt with the distribution of alcoholic and soft drinks, while taking care of brand
marketing up to the formation of a subsidiary company Red Bull Czech Republic, Ltd.,
in 2000. Since 2005 the management of Czech and Slovak Republics has been jointed
together. Today, the Red Bull company in the Czech Republic and the Slovak Republic
has more than 150 employees.

4.3 Corporate structure

This section is mentioned purely indicative in terms to illustrate how the total
communication of Red Bull brand is interdependent and managed.

Corporate structure from a global perspective is inspired by American football


terminology, in terms of the range is divided into two parts:

- Defensive line

- Offensive line

29
To demonstrate the lines the organizational structure of the Czech division of Red Bull
is mentioned.

Defensive line – Red Bull GmbH - each country in which Red Bull is sold, is in
charge of so called Quarterback (defender, usually the team captain), which acts as a
clutch between Austria and other countries. Total number of quarterbacks is nine and
each of them oversees from six to fifteen countries according to their size.

Offensive line – Red Bull CZ s.r.o. - each country has its organizational structure,
which is directly responsible for communication execution and distribution (attackers
in the field). Each country modifies the ideal form of Offensive line to fit the needs of
the market. Most of these adjustments happen in sales department.

Corporate structure of Red Bull CZ is truly integrated system; the work brings only the
names of positions and their short characteristics. Marketing department and its team
will be described later on.

General
Manager CZ/SK

Senior Ofiice
Manager CZ/SK

Operation Marketing Sales Finance HR


Manager CZ/SK Manager CZ/SK Manager CZ/SK Manager CZ/SK Executive CZ/SK

Operation Marketing Sales Finance HR


team team team team team

Pic. n. 3 – Red Bull CZ/SK organizational structure


Source: Red Bull CZ, Ltd.

General Manager his task is to manage the Red Bull CZ, Ltd. as a whole. Manager
communicates with the company management in Austria. Usually is appointed from
other countries because of a greater perspective of the market.

Operation Manager and his team take care of all logistics processes in the company
(and beyond) in progress. His subordinates provide transport of hardware, POS and
product for all marketing events taking place in the Czech Republic. They are also
responsible for the central storage of all assets, which the company disposes of.

30
Marketing Manager his position will be described in following subchapter about
marketing department.

Sales Manager his responsibility is sales. His work can be divided into two areas,
both On Premise (the HORECA - Hotels, Restaurants, Cafes, then other selling spots
"night" sales) and Off Premise (wholesalers, retailers, and others).

Finance Manager of the company plays a key role in terms of budgets management
and financial plans. His team provides all financial flows, accounting and payments. IT
manager is accountable to Finance Manager and both of them help the company with
all the technology necessities for their work.

Any source of new and existing workforce manages Human Resources Executive,
whose team is responsible for recruitment, training and management of all employees,
so that they could contribute to the successful operation of the company.

4.4 Marketing department of Red Bull CZ, Ltd.

Marketing department has been key department of the company since 60% of whole
revenues go back to marketing communication and other activities. Currently, the
department includes 75 employees in the Czech and Slovak Republics, it is important to
mention that 90% of these employees are university students.

Marketing
Manager

Consumer
Brand Manager Collecting
Manager

SBM Sampling Coord


Coordinators CZ
a SK CZ a SK

Student Brand Sampling Girls


Managers CZ a
SK CZ a SK

Sport & Event Comunication


Manager CZ/SK manager

Pic. n. 4 – Red Bull CZ/SK marketing department structure


Source: Red Bull CZ, Ltd.

31
Let's take a quick look at the various managerial positions within the department.
Marketing department will be discussed in detail in the chapter on communication mix.

Marketing manager is responsible for all marketing activities (both for global
activities implemented in the local environment as well as activities specific for the
Czech and Slovak market). He creates a marketing plan that presents and defends every
year in the Austrian headquarters.

Brand manager his responsibility, as the name suggests, is focus on brand itself. It's
all about inventing, application and control of the activities conducted in support of the
Red Bull brand and its attributes. His "right" hand are Brand and Media Specialist.

Sport & Event Manager CZ/SK bears responsibility for the implementation of the
events of the World Series (Red Bull Nordix, Red Bull Crashed Ice, etc.). Also creates
events tailored to the local regional environment as we will observe more in next
chapters. He is also in charge of communication with supported athletes.

Culture Specialist is responsible for supporting and implementing strictly cultural


events (festivals, art happenings) and the Red Bull World Series (Red Bull Music
Academy, Red Bull Flying Bach, Red Bull Soundclash, etc.)

Communications Manager as the name implies, his mission is function of press


agent. He ensures contact with the media, organizes press conferences, which are
attended even by sponsored athletes. His concern focuses also on creating and updating
web pages. An integral component of the communications team is a Digital and
Regional Specialist, who are in charge of new media and social networks.

Consumer collecting team will be precisely described later in chapter on


communication mix.

4.5 Marketing mix

4.5.1 Products

Over time Red Bull company has systematically built its product portfolio. Media
outputs have become another product due to well prepared selling strategy and set of
attractive communication resources. An Increasing content of Red Bull MediaHouse
brings venerable profit for its spectacular content. It can be concluded that through
media outputs Red Bull intends to build its brand in countries where the sale of energy
drink is banned. Red Bull builds up the communication of the company especially on
word of mouth marketing and buzz marketing. Due to these essentials, attractive events
are created and remain in the hearts of the audience even longer. Content of
MediaHouse is highly wanted by other subjects and has become subject of business.

32
Products of the company could be divided as follows:

1. Energy drinks / Editions

2. Coke beverage

3. Media House

Individual products are properly communicated in the web presentations especially


formed for each country.

4.5.1.1 Red Bull Energy Drink and Red Bull Cola

The basic product and source of income is Red Bull Energy Drink. Red Bull is a non-
alcoholic functional beverage designed for people with increased physical or mental
strain. With help of many ingredients tries to improve performance, vigilance,
concentration, stimulates metabolism and helps you feel more energetic. The main
active elements are caffeine, taurine and glukurunolakton. Although all the ingredients
are listed on the can, the actual ratio of substances, and thus the resulting taste and the
effects of the beverage are corporate secret. Product portfolio of the company Red Bull
CZ, Ltd. Includes:

- Red Bull Energy Drink,

- Red Bull Sugarfree,

- Red Bull Energy Shot

From the very beginning, the imaginary “hero” is 250ml can, which can be found in
every country where the Red Bull Energy Drink is distributed. Size of the can and
packaging is modified regarding the requirements of the market in each country. Red
Bull Energy Drink is also manufactured in PET bottle called Robinson. For all types of
energy drinks the same conditions apply in the visual style of packaging. The basic
package consists of silver - blue field, where in the centre is situated Red Bull logo (two
rival bulls at sunset). The uniqueness of the product is associated with the unchanged
logotype and packaging from the beginning of its production.

Red Bull Cola does not belong to the section of energy drinks. It is a 100% natural
beverage, without chemical preservatives. It was created as a response to drink
supplement range. The communication of this product is based on exceptional
ingredients and accessible recipe, so it’s exact opposite to main competitor Coca-Cola
Company. Red Bull Cola is distributed in a uniform size of 355 ml.

33
Pic. n. 5 – Red Bull Energy Drink and Red Bull Cola portfolio

Source: http://www.redbull.cz/cs/Satellite/cz_CZ/red-bull-energy-drink/001243042251971

4.5.1.2 Red Bull Editions

Newcomers to the Czech market are so called Red Bull Editions. Editions are
characterised by effect of Red Bull Energy Drink and in the same time come in three
different flavours:

- Red Edition – Cranberry

- Blue Edition – Blueberry

- Silver Edition – Lime

Editions were created as a response to the market competition as complement to its


traditional portfolio Red Bull Energy Drink and Red Bull Sugarfree. Competitors have
been introducing heterogeneous flavours of energy drinks past couple of years. In case
of Edition is again manifested brand prudence and sovereignty. After careful
development only three flavours and three colours differences are visually connected
with the classical can of Red Bull.

Red Bull Editions has been seeded to the market since late 2012. Product was
introduced to several off premise and on premise outlets to cover distribution channels.
Marketing campaign has started in February 2013, when the product was available in
shops shelves to almost every consumer. Specifics of unique marketing campaign and
its communication will be precisely discussed later on in order to capture marketing
communication throughout different marketing departments and communication
channels.

34
Pic. n. 6 – Red Bull Editions. Red. Silver. Blue.
Source: http://energydrink.redbull.com/red-bull-editions

4.5.2 Price

Red Bull is a premium brand that builds on the higher prices, uniqueness and
unrivalled product. Looking at the prices of competing energy drinks can be argued that
the price of Red Bull is always a little bit higher. It logically arises from fixed bases and
stable brand value of the company.

The price of the product is determined by place of sale and its consumption. The
highest price paid by consumers can be seen at gas stations and nightclubs, however
lower price is paid in hypermarkets and supermarkets. Flowingly, the lowest price is
paid in a wholesale, where the Red Bull can (255 ml) can be purchased at CZK 23.90.

4.5.3 Distribution

Red Bull serves as a functional beverage while physical or mental strain. It can be told
that tired people can be found in many different places, so crucial is the availability of
the drink in terms of distribution. Red Bull could be purchased at most places in the
Czech Republic to give fatigue consumers wings. Product could be found in all kinds of
grocery stores, in newsagents, in day and night gastronomy, gas stations, universities,
sports facilities and workplaces. Since 2008, the distribution is entrusted to the hands
of 60 business representatives, who are responsible for setting the right price, product
placement, visibility and good relationship with the owners of the premises throughout
the Czech Republic.

35
4.6 Communication mix

Communication mix is divided into four pillars, thus it basically captures the marketing
department of the company.

Pic. n. 7 – Communication Mix Red Bull CZ/SK


Source: Red Bull CZ, Ltd.

4.6.1 Event Marketing

Red Bull event marketing aims to familiarize visitors with its products, through
organizing spectacular remarkable venues. Audience can be better identified with the
so-called transformation of values and brand attributes into the real life action.

Event marketing builds a distinctive brand image through "word of mouth", the spread
of emotions and experiences by words even to those who did not attend the event.
Events are created both in sporting and cultural environment, thus intervening
considerable number of consumers. Red Bull venues are always focused on certain
target group and have respectable media coverage.

Marketing communication of selected Red Bull events will be precisely described in


chosen examples.

4.6.2 Communication

The Red Bull company doesn’t have in its marketing structure PR (Public Relations)
department, as it is the case of the most companies. PR department is replaced by
Communication department instead. Its main task is to bring all the content (events,
opinion leaders, stories, etc.) created by Red Bull closer to consumers.

36
Communication pillar includes advertising and editorial content of the brand through
national and international media. Communication department aims to:

 create awareness among consumers,


 build brand image,
 ultimately define the brand's position in the market.

Marketing communication works with customers through various channels such as TV,
press, radio or the Internet. The company has over the years begun to differ in
communication considerably from the competition.

Unprecedented events require a large amount of recorded material that is to be moved


further into communication channels towards consumers. A large number of
companies pay for their media content for venerable amounts of money. Red Bull
company comes with its strategy from the other side. Media itself contact the company
and require compelling content for their readers. Over the years editorial makes more
than 70% of the media coverage. Another 30% is spent on paid advertising such as TV
commercials, etc.

As said engaging content requires unusual processing and thus in 2008 could rise to
exceptional project - Red Bull Media House. That year we were at the birth of a new
platform that gave birth to other Red Bull products. Over time, Red Bull Media House
has grown with several new products in the field of printed magazines, television,
online world, music, gaming and film industry. Communication towards the customers
is growing in all possible sectors, which leads to a different consumer perception of the
company itself. It is also a respectable development when marketing gets to such a
stage, when pays for all its expenses.

Media products, thanks to Red Bull Media House bring brand awareness even to
countries where the sale of Red Bull Energy drink is banned and hence cover more
markets.

Pic. n. 8 – Red Bull Media House logo


Source: www.redbullmediahouse.com

37
4.6.3 Opinion Leaders Program

Opinion Leaders Program brings together talented artists and athletes. Thanks to them
strengthens the credibility of the product and develops the brand image.

Opinion leaders are a group of people who are usually most gifted icons, with whom
Red Bull company cooperates in their natural environment. Consumers often associate
them as their heroes and try to identify with them.

I daresay that Opinion Leaders Program is the most natural and purest form of brand
and product promotion. Selected individuals receive company’s support in a form of
product or financial means. But cooperation does not end here; the company is trying
to give them the best facilities and conditions for training, including coaches and
physiotherapist. OL's are selected at a young age and gradually brought up to the best
results. The best of the bests wear branded clothing that clearly communicates to the
media that this hero belongs to Red Bull “stable”.

Best Opinion Leader conditions:

 Brand fulfiller – identification of Red Bull attributes and his own personality
(non-conformist, witty, charming, individualist, creative, professional),
 Trendsetter
 Drinks Red Bull at home and in public
 Unstoppable worldwide winner – bringing best results
 Significant media importance
 Scene local hero – community widely respects him

During the years, Opinion Leaders program took under its wings artists, musicians,
DJ’s, producers, athletes, designers, musical groups, etc.

4.6.4 Consumer Collecting Program

Collecting Consumer pillar, as the name suggests, is composed of university students


who aim to reach new consumers by direct contact, which naturally create loyalty to the
product at a young age.

Consumer collecting team is composed of:

 Student Brand Managers


 Wings Team Members

38
In the Czech and Slovak Republics are currently operating 53 students defending silver
blue can on campuses. Students are guided by three coordinators and one consumer
collecting manager.

4.6.4.1 Wings Team program

Wings team members are carefully selected from among university students. Two-
person teams sit every day in blue silver branded Minicooper to give wings to people in
most situations with physical or mental exertion. Girls carefully select new consumers
(drivers, workers, sportsman, students, etc.) and familiarize them face to face with the
effects of cold can. It is far from being a classical sampling. There is a great emphasis on
quality, so that the can was placed into the right hand with the correct communication.
Sampling girls every time ensure good oral and written communication in the form of
information leaflet.

Girls should be in the right time, on the right place in the need of physical or mental
strain, so should give the can to the right person. Here are some rules of effective
sampling:

 Moment of surprise,
 Face to face communication,
 Benefits communication (why the can is given),
 Memorable sampling (be personal, be innovative, sense of interest, feeling of
importance)
 Adapt to situation,
 Adapt to consumer.

By adapting all these assumptions the main goal is as follows:

- Attraction of new consumers,

- Show existing consumers more opportunities when to drink a Red Bull can,

- Promote brand awareness in best possible manner,

- Answer competently to all questions connected to product or brand itself.

Product sampling is attached to direct communication; the consumer can better


remember the benefits of the product connected to current activity, and what more
experience it personally.

39
Pic. n. 9 – Careers at Red Bull, online banner communication
Source: http://www.redbull.co.za/cs/Satellite/en_ZA/Generic/Jobs-@-Red-Bull-
021243142069299?CategoryName=Worldseries&p=1242760617920

4.6.4.2 Student Brand Manager Program

The program focuses on the communication mix in the student environment


(universities, dormitories, campuses, day and night premises). Student Brand
Managers are carefully selected similarly to Wings team members, and become the
brand bearers among their peers, although they are not branded. Due to the fact, they
become 'gray eminences' of the campuses. SBM should be met by same attributes
(professional, self ironic, witty, self esteemed, fun, natural, etc.) as brand itself; as a
result we can say that SBM is actually an opinion leader for his surroundings.

As stated above, main aim is to bring SBM communication mix to the student ground
and convince students that Red Bull is an ideal partner either during semester, exam
period, hobbies or celebrations. Personal connection with the brand is established early
in life, flowingly allegiance is formulated, and consumer creates a bond of preferential
brands.

It can be said that the job description is a combination of several positions within the
marketing and bit of sales department. Ideally, the activities should be distributed
accordingly:

40
Pic. n. 10 – Job description of Student Brand Manager
Source: Red Bull CZ, Ltd.

SBM work from a broader perspective includes communication of Red Bull products in
the form of distribution (sales support), social and sporting activities, study support,
communication with the media, but also with student unions and promoters.

Small fires are the last share of the overall pie of activities and can be seen as a
metaphorical mirror of the remaining 85% of activities. Small fires are simply put, as
collective term for smaller events, completely directed and executed by local Student
Brand Manager. SF are either specified from international headquarters or it is own
idea of creative SBM, who know best what is appropriate for the region.

Events are designed to expand the overall brand awareness, and after all enriching the
ordinary students’ lives. Events try to bring students experiences and emotions. These
events usually have not previously been implemented; most of them is highly
innovative and headed to areas where no one has ever gone before.

Over time, the pie of student activities has profiled into further marketing
communication tool, called Hacks. Hacks practically include guerrilla marketing, which
does not rely on brute force of marketing budget, but instead it relies on the power of
imagination. SBM are therefore looking for a witty and natural way to address a smaller
number of students, but always with the biggest hit. Here again, we meet with the
power of "word of mouth", as mentioned above.

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5 MARKETING COMMUNICATION AND LAUNCH OF THE NEW PRODUCT

5.1 Launching new product to the markets

As stated above in product marketing mix, Red Bull has came to the market with three
different flavours, as changing its prime flavour signature for its existing Red Bull
Energy Drink, and thus complements its traditional portfolio. The worldwide
introduction of the new product is mentioned to provide reader with deeper
understanding of marketing launch strategy.

For the first time in 25 years history, the portfolio has extended its appearance to three
flavours such as Expressive Cranberry, Juicy Blueberry and Refreshing Lime. Red Bull
Editions has been launched to 15 different markets in 2012 (AT, AU, BE, BR, CH, CZ,
DE, ES, FR, NL, NZ, PT, SI, SK, ZA) with overall sales of 88, 1 million of Edition cans.
For the year 2013 is planned to seed around 16 more markets, including the biggest US
market, with planned sales of around 330 billion Edition cans (150 million of cans in
US market.

Pic. n. 11 – Worldwide Editions Launch markets


Source: Red Bull CZ, Ltd.

Introduction to the Czech market went hand by hand with marketing communication
campaign and launch strategy, which begun in last quarter of the year 2012. In
following chapters will be described launch campaign and its specifics among Czech
market. Further suggestion will be made accordingly. Now let have a look at the

42
analysis of internal and external environment. Is Czech market ready for a new product
launch?

5.2 SWOT Analysis – market positioning and new product

Launching a new product on the market deserves an analysis of internal and external
environment. I have decided to choose a qualitative assessment of the problems,
solutions and projects of the company's operations. The aim of SWOT analysis is to
determine how the company operates in the market, what its current situation is, and
what the options for the future are with the introduction of a new product on the
market. The figure below shows the matrix describing the strengths and weaknesses
(internal analysis) of the company and the opportunities and threats (external analysis)
for the future development. Let's analyze individual points of a scheme.

Strenghts: Weaknesses:
Market Share leadership Price
Brand Equity Patent
Brand Identity Health Rumors
Marketing Innovation
Corporate Culture
Consumer Loyalty
Can Life Cycle
360° Marketing

SWOT
Opportunities: Threats:
Sponzorship Sustainability In Time
Consistency Acceptation
Brand Awareness Competition
Attraction Economy
Profit Increasement
Innovation
Portfolio Enlargement

Pic. n. 12 – Red Bull CZ, Ltd. SWOT analysis


Source: own work

5.2.1 Strengths

The market for energy drinks is one of the fastest growing market category. Despite the
fact that the country is affected by the financial crisis, the so called soft drink category

43
is growing. Red Bull holds its market share leadership globally and its sales are growing
every year.

Brand equity is another strong point of the company. The company holds a high-quality
product portfolio that is growing not only in a sense of product itself, but also in other
valuable products such as media outputs. Red Bull is known throughout the globe and
its fan base is growing. New consumers give recommendations to their peers and
through references the product becomes more credible. Last but not least, due to the
fact, brand awareness is leading to better performances at the market.

The company has also created a respectable brand identity. Red Bull is associated with
a unique marketing communications or unconventional marketing tactics toward
consumers. This is coupled with innovative approaches in their marketing campaigns.
Red Bull unveils new frontiers, comes to places where no one has been before.

Consumers thanks to unforgettable event marketing experience a lot of emotions and


experiences, at this point is created consumer loyalty. Consumers are loyal due to a
strong fellow feeling from many different activities, which Red Bull creates, sponsors or
support.

The Company is not indifferent to the situation associated with the natural
environment either. Part of the presentation of the product is a short story of can and
its impact on the nature. It is an element of Corporate Social Responsibility, which is
proved by the customer-friendly way of dealing with aluminium materiel much needed
for the manufacture of cans of Red Bull. Every can is 100% recyclable.

Last but not least, I would like to mention strength of its complexity and share of 360
degree marketing. Red Bull realises the events from the bottom to the top. Realisation
team processes the ideas, prepares needed background, executes the events, and finally
covers media coverage, in order to be very brief. Implementation complexity of the
events is an unforgettable experience for both the audience and the organizational
team.

5.2.2 Weaknesses

Red Bull is premium energy drink, thus is more expensive than the others. Price of the
drink has been concern among consumers. On the other hand higher price is associated
with quality, which should consumers perceive.

Another weakness would be that company doesn’t have any patent on its content. Other
companies can make similar product without any legal consequences. The market has

44
so far appeared with energy drinks with similar taste for a fraction of the price of Red
Bull.

Among the people is said a lot of claims about the bad health effects of energy drinks.
This can cause a barrier for consumers to buy such a product on the basis of
unsubstantiated rumours.

5.2.3 Opportunities

Company could increase recognition for huger range of activities and its sponsorship in
different extreme sporting areas. Extreme sports are becoming more and more popular
among Red Bull main target group.

The company should maintain consistency in their marketing approaches in order to


sustain its leadership in non-traditional forms of marketing communication.

In recent history Red Bull has not come on the market with a new product. Other
companies marketed a number of different styles and flavours of energy drinks. To
maintain market leadership is a logical extension of the product portfolio.

The new product would result in reaching new consumers and affirmation of existing
customers in the market. Together with capable marketing campaign, product would
increase brand awareness and raise the competitiveness among other energy drinks.

Innovation in the portfolio is a vital component for the future growth of the product.
With the new product, there are new ways in marketing communications. There would
be room for yet unexecuted traditional and non-traditional promotion with a new can.
There is therefore an opportunity for new forms of communication with customers,
which can ensure and strengthen the overall brand image.

New product would also increase an economical profit of the company by selling larger
amount of cans. Admittedly, there should be assumed that the new product should not
cannibalize greater extent of the existing product performance in the market.

5.2.4 Threats

Threats to every company should be sustainability over time. If the company is able to
maintain its position on the market is competitive and healthy in its decision making.
Red Bull has created the market for the energy drinks. All the activities connected to
marketing were new to the category, so their introduction and implementation was
unique. Over time competing companies have begun to implement similar tactics to
mimic the company (such as free product sampling, etc.). The time has come to set

45
higher boundaries in order to left competition behind and come up with breakthrough
unprecedented ideas and campaigns.

The well-established company even raises great expectations with the adoption of a
new product. Consumers loving taste of blue-silver can may not be ready for a new
flavour, and it can evoke in them a sense of disappointment and unacceptance.

Competition as stated below is a threat to every company. Other energy drinks


companies are growing very fast with wide portfolio of products. Companies have come
to the market with new flavours before, and consumers can have their favourite flavour
of choice selected in a competitive company.

Another issue to consider is economic situation. Economic crisis caught lot of people
and since then they has been more sensible to money spending. Economic slowdown
trend push consumers to think more about their daily expanses.

5.3 Evaluation of SWOT analysis

Evaluation of the SWOT analysis is done based on assigning points and weights to each
criterion. Multiplying the weights and points, and then is gotten the sum of the final
value of "importance".

This value will be compared with other quadrants of the matrix in order to get an idea
on which areas to focus on. In other words which of the available strategies are the best
to apply for the company. According to Dědina and Cejnar (2005), strategies are unique
and original for every company. Their division:

 SO Strategy - Use strengths to take advantage of opportunities from the


external environment
 WO Strategy- To overcome the weaknesses of using the opportunities from the
external environment
 ST Strategy - Use strengths to defend against threats from the external
environment
 WT Strategy - Minimize weaknesses and the ability face threats from the
external environment

Scales and points are assigned according to the importance after careful analysis of the
environment.

46
Weights

Weight expresses strength action of the criteria on the relevant side. The weights of the
individual areas are the sum of 1. The same sum allows comparison between different
sides of the matrix.

Points

The criteria are assigned with the value of 1 to 5 (1- less significant, 5-most significant),
according to the significance of action of the company. The total sum of the individual
S-W-O-T allows comparison between different sides of the matrix.

5.3.1 SWOT results – SO Strategy

As can be seen on the tables below, most important quadrants are strengths and
opportunities. Both of them got highest amount of points according to environmental
analysis. Red Bull Company should go for Strength-Opportunity Strategy and use its
strengths to take an advantage of its opportunities from the external environment. The
analyzed situation came out very positively for the launch of a new product. Strong
market leadership, marketing innovation or consumer loyalty could lead the company
to successful product introduction nationwide. Company is in a very good shape and
has respectable conditions in the external environment. These points are very necessary
to change the opportunity to strengths in the future with creating for instance even
higher brand awareness among consumers.

47
Pic. n. 13 – Red Bull CZ, Ltd. SWOT analysis evaluation
Source: own work

5.4 Introduction of launching strategy for the Czech market

The launch of the new product is subsequently connected with unique strategy, which is
divided into diverse time frames in order to underpin major phases of product
introduction. During these phases consumer is gradually knowledgeable about new
product throughout various channels, as we will see later in the text.

In our case, we can speak about pre-launch phase, launch phase and post launch phase.
On the picture below is depicted launch strategy of Red Bull Editions.

48
Pic. n. 14 – Launch Strategy
Source: own work based on Red Bull CZ, Ltd.

The launch strategy of the Red Bull Editions has started in early October, 2012.
Consumers could for the first time experience Editions in pre – launch seeding for 120
top on-premise outlets and top events within the whole Czech Republic. Simply said,
consumer could try new flavours in most exclusive day and night gastronomy or in
exclusive launch for Red Bull events like Red Bull Flying Bach, which was attended by
more than 2700 visitors in Karlín Theatre in three days.

Off-premise outlets (i.e. traditional trade – chain stores, patrol stations, etc.) were
provided with cans in early December, 2012. However, there have not been taken into
account yet promotional materials like POS or other marketing promotions. In the year
2012, marketing part of the launch strategy was just about seeding to smaller
communication channels in order to have distribution premises covered. The lull before
the storm is about to begin in following year.

49
Pic. n. 15 – Example of Editions visuals placement on Off-premise outlets, POS communication
Source: Red Bull CZ, Ltd.

Beginning of the year 2013 was marked by 70% coverage of off-premise and on-premise
national distribution channels, so the consumer could buy the product in almost every
outlet before marketing launch itself. Also POS (i.e. point of sale) and other sales
support activities were brought to the outlets to warn consumers that new editions have
arrived.

Communication mix attributes such as advertising, print and digital campaign were
slowly born as well as nativity of Red Bull Editions webpage (redbull.cz/editions),
which provides consumers with a lot more than just basic information about new
product composition.

The marketing launch was started in early February 2012 with concentrated launch
called “Day D” in the capital of Czech Republic. Prague was served with wings by direct
face to face communication by intended formed teams. “Day D” itself will be expended
on following chapters. Targeted marketing launch lasted until the beginning of April. In
this period every marketing department dealt with launching new product. Due to this
fact, Red Bull Editions were introduced by SBM’s to the student ground, by Wings
teams to drivers, at works, EPC’s (i.e. entry point consumers), etc., by communication
department to either online and offline content readers, by culture department to
artists and musicians, or by sport department to athletes and sportsmen. Put one think
with another, consumers were significantly affected by new Red Bull Editions. Let’s
have a look on concrete instances of marketing communication campaign in order to
draw strengths and weaknesses of launch itself.

5.4.1 Launch strategy objectives

Launch strategy has come up with several objectives to induce consumers, why to drink
a new product. Whole campaign was design to build strong mass awareness of the new

50
flavours within the Red Bull energy drinks portfolio, then to create desirable taste for
the product, and finally activate continual consumption in numerous consumers.

5.4.2 “Day D” concentrated launch

Start of the unique concentrated marketing launch was settled on 7th October 2013,
called Day D. On this day, all employees were summoned from across the country to
familiarize the people of Prague with a new product. Locals could meet opinion leaders
from the ranks of athletes or musicians, or to experience special guerrilla in the form of
"boxes of cans that have fallen from the sky", or see a unique video mapping on the
historic buildings at several locations of the city.

5.5 Creation of web pages before Day D – online communication

Communication of a new product was associated with the specially crafted web page,
www.redbull.cz / editions, which was run on 20th January 2013. (Communication
department had just two weeks to create the whole website scheme). Consumer, who
wants to learn more about new Editions, finds on the page several sapid information.
Besides information about the product itself, there can be found also many
photographs, videos, Instagram competition, etc. The page is also provided with sound
features. In the opening view are pictured cans, which play cracking sound upon
clicking and shifting you down to selected taste.

Pic.n. 16 - Web pages opening view with special features


Source: http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions-2013/001243317714519

Once consumer has chosen favourite can, is directly shifted to preferred Edition. Here
can be spotted basic information about the product and also the gallery. Each Edition
has its gallery of best sport & culture photos filtered and related to the color – blue for
water and sky, red for dirt and sun, silver for city and snow. There is an intention to

51
link consumers with worldwide campaign called World of Red Bull (WORB), which
shows talented opinion leaders all around the world.

On the right side is implemented simple floating yellow info circle, directs to: „Go
through the page until the right bottom, where you will find a contest. “

Pic.n. 17 - The Blueberry Edition Gallery


Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions 2013/001243317714519

On the website is also a Facebook voting on preference taste of the consumer.


Consumer needs to be log on to Facebook in order to vote. Other consumers can see
voting of their friends, and be digitally interconnected with both pages.

Pic.n. 18 - „Which taste you like the most?“


Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions 2013/001243317714519

As stated above, there is obvious link to WORB campaign, as consumer can see in two
attached 60 seconds videos. Under the videos is introduction or reminder for visitors
about Red Bull marketing portfolio: „Explore World of Red Bull as never before, best
action sports and culture, remarkable personalities, videos, photos and articles you
wouldn´t find anywhere else.“

52
Social media presence could not be omitted, therefore the page is provided with link to
Facebook, Twitter, Youtube, Instagram, Google +, Pinterest or RSS. Also visitor can
subscribe to a newsletter, which will directly informe about the latest news. Last but not
least there is prolink to like and share the page.

Pic.n. 19 - „Explore World of Red Bull as never before."


Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions 2013/001243317714519

Last section of the web pages is provided with competitiomns. First one to mentioned is
Instagram competition (web platform gathering photos from users visible on Instagram
webpage). Under hastag #mojeeditions user generated photo gallery with creative way
of capturing pictures with Editions. Best creative photo won Red Bull Editions for the
whole year.

53
Pic.n. 20 - Instagram competition
Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions 2013/001243317714519
Second competition was marketing guerrilla happening on 5 variant spots nationwide.
RB Editions cans were hidden in big cities around Czech Republic, such as Prague,
Pardubice, České Budějovice, Brno and Ostrava. Photos only hinted the possible
locations with pictured clues. First consumer to come, the first was served with all
three Editions.

Pic.n. 21 - Map of spots; Pic.n.: One of the spot in Brno city at Obilný trh

Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions2013/001243317714519
Source 2: Realization of guerilla - own picture

Last information on the page are connectected to the Day D and its cultural events with
selected opinion leaders throught the Praque city.

Pic.n. 22 - Artists and Biketrialist in town


Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Red-Bull-Editions2013/001243317714519

54
5.5.1 Suggestions for improvement

It can be said that the web page appearance is clear and simple in a positive way.
System integrators have very little time for making pages, which were caused due to
slow communication of the Austrian headquarters. Page composition could be
criticized just a little. Page is followed by actual web trends and meets digital clarity,
which is a trend in our modern times. Appearance of cracking sound and colorful photo
galleries is obvious proof of it. Let's take a look at the composition of individual
activities, which will suggest ideas for improvement.

First of all there is a voting which Editions flavor consumer like the most. I would say
that it was placed there just for entertainment of people. But it has no further
predicative value for market research. User must be signed to Facebook account, which
makes it little complicated for those who haven’t have it yet. So the voting is impossible
either for older generation or those who are not sign to Facebook at that time. It would
be appropriate to arrange the voting without Facebook connection. Author is aware of
clear link between web page and new media but it is not suitable for all people.

Instagram competition is well done. The interconnection with smart phones is a form
of period, in which we live in. The competition has started and was firstly promote in
Day D with special cards to inform about it. During the Day D most of the photos were
uploaded on the page with direct contribution of 164 users. The direct interconnection
makes fellow felling in participants. In my opinion the competition could have been
promoted more even after Day D. Student Brand Managers didn’t get the promotional
leaflets to seed them at the campuses, so the regional interconnection was done only by
online sharing.

Second competition was focused on secret spots among Czech Republic. Consumers
would know about it just from the editions webpage. It is hard to say if the discovered
cans were found by those who actually get to know about it from web or by random
strangers who found them by accident. Competition could be improved by letting
people to make picture with it and post it to webpage for example. Or the locations
could be provided with card and contacts in order to inform people in case of finding.
There is a question if the competition should be monitored like this or it should leave
the consumer just wondering how it appeared on the place.

55
5.6 Online and offline media

5.6.1 Media focus

Editions launch was connected to national online and offline media as a subject of
promotion as well. Brand and communication teams selected high reach of media types
such as OOH (e.i. out of home), digital displays, print and SEM (e.i. search engine
marketing) nationwide.

5.6.2 Media plan

Pic.n. 23 - Editions media plan


Source: own work based on Red Bull CZ, Ltd.
OOH is a form of advertising that works outside the home of target group. It is broad
concept, including outdoor and indoor advertising. As part of Editions promotion plan
are primarily focused on the CLV's at metro stations and train stations in towns,
bigboards or smartboards, LED screens, doublebigboards, hypercubes.

Pic.n. 24 - Editions examples of OOH


Source: Red Bull CZ, Ltd.

Part of the printed section was focused on a wide range of magazines, newspapers,
journals, weeklies, etc. Printed form of advertising has appeared in prints focused on
lifestyle, automotive, news, trade, women or men oriented titles.

56
Pic.n. 25 - Editions print examples
Source: Red Bull CZ, Ltd.

Edition appeared for online world visitors too in a form of digital displays. Displays
formed wallpapers on the various sites such as mass, news, culture, sports, tabloid and
communication oriented servers in order to hit the widest range of consumers.

Pic.n. 26 - Editions digital display examples


Source: Red Bull CZ, Ltd.

The last part of the media plan was formed by search engine marketing (SEM). It is a
form of online advertising to promote and increase the visibility and reputation of the
Editions web page, thus increasing visitors. This form of advertising has appeared on
web browsers such as Google, Sklik or Etarget. On page redbull.cz / editions looked
over 70,000 unique visits during the launch period.

5.6.3 Suggestions for improvements

Online and offline communication was well prepared from the beginning. Consumers
all around the Czech Republic could see OOH communication or web banner
throughout their favourite page. The most fundamental problem in the media was
incomplete visual communication. The visual needed to emphasize the connection with
Red Bull brand within the key visual. Although visual communicate properly new

57
product, there was missing sing of much typical bulls. The right visual was made right
after the campaign. Here could be suggested better communication between Austrian
headquarters and Czech brand department.

5.7 Day D guidlines and team sampling

Day D begun in early morning with briefing of all Red Bull employees, who were
divided into 29 wings sampling teams. Each team was composed of 3 members, mostly
compound of SBM/Wings team member, office member and on-premise/off-premise
member. Each team member represented red, blue or silver colour in coloured
coveralls. Each team were provided with detailed information how to sample people on
the streets, how to give right face to face communication about new product
composition and its features.

Teams were given timed daily reports with approximately seven spots to visit and
sample (203 spots all together). The spots were selected by Prague wings team
members on different facilities through the city. Spots involved:

- high schools and universities,

- major televisions, radios and newspaper offices,

- city district councils,

- banks and other working offices,

- open space offices of huge companies,

- restaurants, buffets or canteens,

- sporting facilities,

- community transport stops (including trams, trains and bus stops),

- automotive group offices and factories,

- police, fire brigade or hospital facilities.

All the sites included people with mental or physical exhaustion in order to give them
energy in everyday life struggles.

58
Pic.n. 27 - Ninety seven tricolor team
Source: Own picture

Teams received seven packs of each edition flavours, all together counted 21 packages
of Red Bull Editions (504 cans). Teams were provided with one branded sampling
backpack (team captain) and two unbranded canvas bags for storing cans. With each
sampled can should come to consumers’ hand one Edition leaflet and card with
information about the Instagram competition.

Sampling was scheduled to last from 10 a.m. till 5p.m. Teams should picture their
performance; write down their riffs and facetious stories in order to compete in internal
competition. Whole day was scheduled both to create strong brand building
performance and also to create useful team building for employees.

Projected number of sampled cans was set at 15 000 cans. In the case that any of the
team had a lack of cans, there was ready to act standby car that supplied teams with
cans.

Selected teams were sent directly to support athletes and cultural events in the city. In
that case, the daily reports contained “red must spots” to attend, at all events. Next
chapter will speak about cultural and sport guerrilla performances communication.

5.7.1 Day D culture and sport performances

Day D was accompanied by guerrilla activities with Red Bull cultural opinion leaders.
People could experience natural product placement on the streets in unique concerts,
DJ sets, musical march or underground unplugged show. Prague’s famous sites were
sounded by Czech famous musicians at remarkable gigs:

59
Pic.n. 28 - Artist in the streets
Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Gallery/Nove-Editions-vyrazily-do-ulic-
021243316218014#

- National Technical Library – Trouble team Friky and Flux showcase

- Peace Square – Vladimir 518 – Launch of new album performance

- Václavské Square – Android Asteroid feat. Bucinatores – Musical march

- Underground station – Unplugged concert – Group 100°

Two of mentioned spots were also dropped by famous Red Bull athlete Petr Kraus, who
showed venerable bike tricks to spectators.

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Pic.n. 29 - Biketrialist Petr Kraus
Source:http://www.redbull.cz/cs/Satellite/cz_CZ/Gallery/Nove-Editions-vyrazily-do-ulic-
021243316218014#

5.7.2 Guerrilla marketing activities

D Day was not only the sign of face to face communication and involvement of local
opinion leaders. Red Bull has shown its innovative approach in two memorable
marketing guerrillas. These activities together gave wings to 1,052 consumers.

First of all, in reaching consumers through unconventional way, were involved eight
Red Bull Airdrops. The idea behind the concept was to bring people an unforgettable
experience in the form of Red Bull Editions. As the name suggests Red Bull Airdrop is
specially prepared hack, which shows a wooden box full of product. These boxes should
simulate the feeling that they were dropped by helicopter from the sky. Hacks for
consumers raise unanswered questions about how the box got the job and by whom was
left behind. After a closer look, brighter citizens discovered that it is probably a
marketing strategy. The boxes were placed in three with the intention to introduce all
three Editions together. Guerrilla of this type should in consumer evoke a feeling of
belonging and ultimately trigger word of mouth. Red Bull Airdrop activity included 864
cans of Editions.

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Pic.n. 31 - Red Bull Airdrop
Source: Own source

Red Bull Mini RC Support, another equally successful hack was supposed to refuel tired
Prague residents at various locations throughout the city, such as shopping malls,
metro, tram, etc. RC Mini branded cars are controlled by the remote control, specially
designed to hold cans. Mini RC Support involved 188 cans of Editions.

Pic.n. 32 -Red Bull Airdrop


Source: Own source

5.7.3 Suggestions for improvements – AIDA model

To assess proposals for improvement for the future marketing campaigns, decision was
made to use AIDA model. Due to the hierarchical structure of the model, we can
evaluate the very basic points of Day D. The model should serve as an aid for clear
explanations of steps and subsequent proposals for improvement based on author’s
observations, who was directly involved in the campaign and in many cases
participated directly on the actions.

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AIDA model is the traditional model describing the various phases of marketing and
advertising to potential customers, when obvious goal is to get a new customer or
introduce existing consumers with a new product depending on future purchases.

Model acronym letters stand for:

 A – Attraction
 I – Interest
 D – Desire
 A – Action

A : Action to make the purchase eventually.


Get consumer to take an action.

D : Desired movement to must to have effect.


Building unique brand image.

I : Interest must be increased by appropriate communication.


Consumer persuasion about further investigation of a new product.

A : Attract new customers with attention to Red Bull Editions.


Have them to acknowledge the existence of a new product.

Pic.n. 33 - AIDA Model


Source: Own work

5.7.3.1 Attraction

Sampling

Marketing campaign attraction of the Day D is clear from the unusual approach and
involvement of all employees in the event. The idea to attract attention by the three-
member teams proved to be a good step to generate word of mouth among people who
were given samples of Editions. People in the workplaces or on the streets were more
than surprised when meeting with teams. Some were amazed at where classic Wings
teams were, while others were amazed over sophisticated direct marketing.

On the other hand, said coveralls had been used to differentiate teams. This action was
later proved as an insufficient element. Coveralls were produced using sprays and
nonwoven textile, due to the inadequate budget. Although sizes of the coveralls were

63
distinguished, some of them didn’t fit well to team members. Sprayed paint crumbled
on bottom wear, so it was little uncomfortable wearing. The initial intention of anti
authoritarianism (one of Red Bull attribute) had the effect of producing disillusionment
in some people. Teams branding was solved in the form of one branded backpack. It is
obvious that branding and clothing were not sufficient to quality sampling. Teams
complement outfits with hats, glasses and all sorts of accessories, which rescued the
situation lightly.

 Improvements

In the future, it would be significant to focus on improving the quality of clothing and
branding. The situation could be addressed through branded shirts or jackets. As for
backpacks for cans those should be original and branded all. Employees would have
evoked a greater sense of credibility and people would have immediately associated the
sampling with brand itself. Unique corporate image would be fulfilled in details.

Daily time plans

Daily time plans for teams was previously selected. In this volume could not be timed
and planed some activities accurately. Teams were therefore met with breaks or trips
outside the base or offices and could not acquainted citizens with new editions. It was
so in the case of fire stations, police stations or offices. In some shopping centers there
was a noise communication among employees of marketing department and security.
They were forced to withdraw the teams because they did not receive the right
information with the permission. Security was forced to expel teams out of the
shopping centres and consequently tired shoppers were not introduced with the new
product.

Some daily plans were prepared with more attention to diversity of places visited than
the current location. Due to the fact, for some teams were challenging to visit all agreed
place.

The estimated projection was to address 15 000 consumer contacts directly in one day.
The final outcome turned out to respectable 14 000 consumer contacts which makes
483 consumer contacts on team. Some teams run out of cans during the day and were
force to call stand up car. Due to higher number of calls and bad traffic the driver was
not able to come on time to meet with the teams. In consequence, teams were losing
time reaching out the consumers.

 Improvements

Daily time plans should be prepared more ahead of time with precise look on the spots.
Breaks or trips outside the base could be planned in advanced in order to reach all of
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the scheduled places. Locations could have been selected more wisely in order to
capture all the desired places and reach even higher number of consumer contacts.

Faster supplement of cans may be subjected to higher number of standup cars, which
would be at given locality right on time. Unfortunately the situation of capital traffic
jam cannot be influenced.

Culture activities

As noted above, cultural activities took place in different locations and undoubtedly
created a big buzz from passersby. People were grabbed by attention and experienced
wonderful shows.

Cultural events happened without any major complications. With regard to February,
at some locations there wasn’t warm enough and potential new consumers were forced
to heat up indoor.

 Improvements

Marketing product launch was set for February from the Austrian headquarters Fuschl
am See. Generally, the introduction of cooled product is best done in the summer
months, but with which Czech Red Bull could not do anything. The command was clear.
The outdoor cultural activities were predictable with cold or bad weather. Managers in
this case could focus on other activities indoor, which would affect a larger number of
participants, who would feel comfortable and stay longer.

Guerrilla marketing activities

If anything will attract widely potential new customers, so it would be guerrilla


marketing. The idea of surprises and unexpected content in humans causes instant
wow effect. With airdrops was managed to sample large number of cans and reach a
great number of consumers. The boxes were left without any further communication.
As for the Mini Coopers, it approached the smaller number of people. Its impact has
been repaid by astonished and grateful consumers. Some cars were damaged during the
Day D and some of them could not reach greater extent in order to get to people who
stood farer from the person who had the remote control. The desired effect was
therefore lower, because people could see by whom the car was handled.

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 Improvements

Airdrop boxes were filled with Editions only. In the future, would be appropriate to add
the content of boxes by printed communication in the form of leaflets. This
communication should complement the overall effect of sampled can and new
consumer would be able to read about the new product later on.

5.7.3.2 Interest

Once the consumers are introduced with the product, the right communication should
work to increase their level of interest. Consumers should be stimulated with a feeling
or strong emotion. The whole communication campaign should pique interest and
subsequently sustain it. Finally marketing campaign should be persuasive enough to let
consumer investigate the product in the future. Also at this level should be raised
question of demonstrating products benefits or advantages.

In our case, we can talk about waking interest of consumers by marketing activities that
surrounded the whole Day D. In the case of face-to-face sampling, the interest arises
after thorough communication of all benefits and proper explanation why in this
situation to drink the product. Sampling teams had to answer each potential question.
In the event that consumers have already met with editions, teams were able to
familiarize them with Day D and then mention cultural activities that took place that
day.

Biketrialist Petr Kraus in the accompanying cultural program demonstrate that the
energy drink is associated with sports and improves performance. This naturally
demonstrated the benefits of energy drink itself. The consumers then subsequently
realize its functionality during physical strain. Peter’s incredible tricks arouse emotions
in visitors, especially in the youngest target group (15-19years). Aroused interest may
also turn on athletes branded clothing. This kind of branded clothing receives
sponsored athletes only, so in humans evokes the desire to own something like that.
Supported athletes are worth investigation due to their awesome performance
consumers come back to see how they stand.

 Improvements
During the Day D there was just one performance of supported athlete. Campaign
would make considerable hit if there be more athletes involved. For instance there
could be some skate street exhibition on some unprecedented spot, where no one has
ever skated before. This performance could be filmed in order to make nice video to
share within Editions web page or new media channels. In order to underscore

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involvement of Editions, film could have tri-colourful filtered scheme and capture
athletes’ three different tricks.

Also opinion leaders could be involved as ambassadors and directly communicate to


selected media and partners new Editions. Activity could be executed on the basis of
individual meetings, when famous athlete come to the offices and introduce product to
employees directly with samples of each editions. Arrangements could build stronger
brand awareness among people who are involved in Red Bull activities and make better
working position for further negotiations.

5.7.3.3 Desire

Interest is closely connected with desire. At this stage should come final realization that
consumer likes that product that much that actually want it. This stage of created desire
should come eventually after marketing activities of Day D, which was introduced
during the launch. Consumer is surprised with situation, which definitely have not
experienced before. Meeting desires could be as well as connected to actual liking of the
Editions for the first try. The want effect could arise after testing of one flavour of
Editions and thereafter the desire is created to taste another one.

5.7.3.4 Action

The last step is action of leading consumer to make a purchase. After all marketing
activities consumer come to store and wishes to close the sale. On premise and off
premise outlets were covered even before the marketing campaign had started so the
consumer could find them in numerous premises. After all marketing activities, it
depends only on whether consumers decide to buy a new product repeatedly. The work
focuses on marketing communication; it is not either in its scope to show product sales.
However to complete the AIDA model, it will be showed the performance of Editions
from January to March in percentages.

Pic.n. 34 - Editions performance from January to March 2013


Source: Own work base on Red Bull CZ, Ltd.

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Total portfolio growth in selected moths increased by 7%, this mean that sales of all
Red Bull products (Red Bull Energy Drink, Red Bull Sugar Free, Red Bull Editions, etc.)
together rose up. The Editions percentage share of whole portfolio reached 19%, which
makes respectable amount during pre launch and launch period. Editions total
cannibalisation on Red Bull Energy drink is equal – 14%. This value is understood as a
proportion of Editions sales that consumers bought at the expense of sales of the Red
Bull Energy Drink. The value is compared with the number of last year sales. Last value
in the table refers to incremental within Editions by 33%, meaning that consumers
bought by 33% more Editions than in previous months. From the table it is evident that
marketing communication went successfully and is backed by the sale of Editions. The
time horizon will show how consumers will enjoy new flavours and if their sales will be
still rising.

5.7.3.5 AIDA Model findings

As said before, AIDA model is implemented to describe different stages of advertising.


If one component out of four mentioned fails the marketing campaign is referred to
extinction. As we could observe above all four goals or bases was fulfilled in order to get
new consumers. With regard to the recommendations to improve general marketing
communications of Editions launch, we can say that the campaign achieved the desired
points of the model.

5.8 Consumer collecting team launch

Students within consumer collecting team were involved in the nationwide launch of a
new product. From the beginning of 2013, the mission sounded clear to introduce new
Editions to as many consumers as they could. Role of SBM's was to familiarize the
student ground with the arrival of new Editions in the sense of capturing distribution,
guerrilla marketing - hacks or small fires. Wings team girls traded blue-silver hero in
exchange for three new colours and headed out into the field, where were sampling the
Editions for two months. Girls’ gave wings to regional drivers, at works or athletes on
the mountains, etc. Let’s have a look on concrete examples, how students dealt with
marketing communication of the Editions. In this section, I’m going to focus on special
kind of sales promotion – Sales Attack. Another subject of Editions promoting was
nontraditional promotion, such as hacks and guerrilla marketing.

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5.8.1 Student Brand Manager launch

5.8.1.1 Sales Attack

Since the beginning of February 2013 SBM's got the task to supply with editions
cafeterias and canteens in order to achieve maximum distribution coverage for student
ground. The means chosen for stimulation of activity was planned carpooling and the
sales attack with a member of the regional off-premise team and wings team.

Sales attack put the objective on:

› introducing a new product face to face,


› informing about possible offers in wholesalers,
› providing with POS materials to support sales (flayers, leaflets, displays,
stickers, etc.),
› providing canteens managers with direct sale on car.

The Sales attack took place in 11 cities across the country. Red Bull Editions were
managed to list in 53% (106 out of 200 outlets) of student outlets at the first attempt.
During the attack it was managed to sell 5000 cans in advanced to traditional wholesale
purchases. After Editions listing, students were able to throw their own communication
on the new product by unconventional ways.

5.8.1.2 Suggestions for improvements

The Sales attack went well all across the country. Some SBMs faced troubles with
reaching authorised persons from outlets. In some cases there were not convinced
about new product, which was coupled with worries if they are able to sell the product.
In this case is important to introduce the product well and explain the benefits of it.
Editions go hand by hand with POS communication which should be placed to visible
places in order to get buyers attention. Right price should be communicated right next
to visual to keep student posted with the price. Also some SBMs needed to solve
problem with lack of space to place coolers for edition. Here again it is thing of right
communication because sometimes it is even right placed cooler, which make the point
of purchase in consumers.

5.8.1.3 Hacks

Other activities have been various non-traditional communications on the university


campuses. All SBM’s created over 126 hacks on the student ground similar to those
mentioned above (RB Airdrop, RB RC Support).

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On the picture below can be seen selected hack activities. Red Bull Editions Games
were executed in Brno. The idea is simple; make a table game similar to those, which
were played by kindergarten kids. Every player needs to get the can safely to home. The
player who can get all three cans home first wins. Hack was executed between lectures
at the university.

Pic.n. 35 - Red Bull Hacks activities


Source: Own source

5.8.1.4 Suggestions for improvement

Hacks are very specific part of guerrilla marketing. What is suitable for one region don’t
need to be exactly the best fit to others. Student Brand Managers are experts at their
university regions and should valorise all possible pros and cons. In our selected
example of Editions games, there could be problem that only three people can play at
once. The execution could be hard to manage due to high number of students who come
out of class. The situation could be solved by more games prepared. If it so, there is a
question why not to do a competition between different tables. Students could be more
involved in a game and support each other in winning. If the game is well accepted
among more university regions it can be made like “plug and play” concept (concept,
which is ready right away to involve in). In our case table games were created by SBMs,
which occurred to be relatively time spending. For the future development could be
asked some external company to prepare the hack.

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6 DISCUSSION

Marketing, in the last few decades is undergoing very rapid changes and acceleration,
whether in the field of technology (internet, social networks, etc.) or in the styles of
marketing communication itself. While processing the work, it was difficult to collect
both primary and secondary data dealing with given topic. The company also holds its
valuable know-how, so some of the information and data could not be presented to the
outside disinterested parties. A large part of the data was obtained by using the author's
observations and qualitative interviews with employees of the company.

Red Bull company has created the market for energy drinks and has been using
unprecedented techniques to reach as much consumers as it can. In the case of
launching new product, the company has dealt with a completely new issue. The whole
campaign was settled on basis of new trends, which surrounds new era of marketing
and marketing communication.

We could have therefore encountered with classical forms of advertising or with


untraditional communications techniques, without which bypassing modern era is
difficult. Described approaches in marketing communications are successful examples
that our time is evolving rapidly. What is new and modern today may not be relevant in
the next days, weeks or months.

Preparing the marketing campaign took place in a relatively short time of several
months. The decision of the parent company to launch campaign was accounted for the
winter months. It is therefore questionable whether the results of the entire campaign
were not stronger in the summer months when cold product would be appreciated
better by consumers. For the implementation of the various venues of the Day D would
warmer weather certainly help more in smoother process.

Day D took place in one day, organizational team needed to handle management as well
as proper marketing communication towards consumers. The idea of linking employees
from the ranks of students and office employees has proved to be a great step. The
campaign resulted in a great teambuilding. On the other hand, this was not the primary
intention of marketing campaign to introduce a new product. The main aim was to
create strong brand building. Individual teams have been briefed in terms of branding
to make a good impression on new consumers, which in some cases was confirmed as
unsatisfactory, due to insufficient branding of coveralls or backpacks.

Another question rises in case of supplying cans to teams in case of lacking of the
product. Teams could be provided faster with cans by more cars, which would easily
handle the transportation to requested places. On the other hand, it is needed to take

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into account the traffic situation of the capital, which is in lot of cases unbearable in
order to get to locations on time.

As we read above during the campaign occurred another misunderstanding with


branding. The issue of unsatisfactory branding of visuals occurred in the wrong
connection of the new product and brand image. Right communication should have
been adjusted by graphically typified bulls. New visuals came up during the campaign,
which greatly complicated the work of brand department and subsequently slower the
distribution to online and offline media. Here it is appropriate to ask whether the
consumer perceived visual incompleteness, or did not pay attention to imperfect
branding at all. Guidelines came from the parent company, and therefore cannot be
affected by Red Bull Czech Republic.

Marketing communications of sport and culture department was really good arranged.
On the other hand, there is a question if the campaign could have higher hit on the
citizen. It is obvious that budget options were not bottomless. It is considerable to
involve more students who could do targeted activities such as small fires connected to
sports or cultural events. Students are usually prepared to work with low or no budget
and they are also connected to regional opinion leaders nationwide.

Within the project campaign were considered different types of communications, how
to properly target the citizens and consequently to reach them out to taste the new
product. Day D has shown that the choice of the involvement of cultural and sporting
opinion leaders was the correct one. People responded more than positively on
performances on the streets. Activities were not promoted throughout paid mass
media, which was already rejected in the beginning of the campaign with regard to the
budget. Events were communicated on Editions web page and thru editorial content in
local community radio. The philosophy of non-traditional communication content was
maximally maintained.

In the student environment, the situation is slightly different. Students must carry out
their activities in accordance with a monthly budget. Greater cultural and sports
activities are therefore out of the question and are incompatible with the idea of hacks.
On the student ground depends on the skills of each SBM, how they plan the activities
and how they implement them. Marketing communications in the student environment
is thus marked by activities aimed at smaller number of consumers, but with greater
impact.

The Red Bull company for all their businesses has developed strict guidelines of the
parent company; only in this way can be maintained communications to customers

72
worldwide in a similar line. Strength and weakness is involvement of the author of the
thesis in the company. Given guidelines feel well known for the author, therefore she
knows the directions in which the marketing campaign should go on in order to match
company expectations and be feasible. On the other hand, it therefore escapes the
possibility of an unbiased and unaffected point of view.

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7 CONCLUSION

Diploma thesis deals with marketing communications of the Red Bull Czech Republic.
The thesis explains the elements of marketing communication, communication mix and
the involvement of human resources in the course of marketing campaign.

Describing marketing communication was associated with the new product launch on
the market, which makes precedence in the history of the company. The reader should
best understand the steps of traditional and non-traditional communications of the
company that invests around 30% of their incomes back into marketing activities.

The aim of the thesis was to evaluate the current marketing communication of the
company. The decision was made to describe it in a form of concentrated marketing
launch of the new product to the market which was run in February 2013. The work
dealt with a detailed description of the campaign, from its beginning to the
implementation phase itself. The next part of the paper focuses on the evaluation of
activities conducted at the student environment. The author was involved directly in
the preparation of new ideas connected to introduction of the product. Author
successfully invented own ideas for unconventional communications such as different
kinds of hacks, and finally was actively involved in the realization. Student field was
associated with Sales attack. Attack brought to the campuses outlets new product in the
form of personal selling and POS materials in order to raise awareness among students.

At the beginning of the observed period, was the creation of an analysis of internal and
external environment known as SWOT analysis. Each part has been described and
inserted into four quadrant matrix. Then was analysis evaluated with the help of points
and weights to get subsequent valuation and recommendation. The analysis came out
that the company should focus on the strengths and opportunities. SO strategy should
be build on strengths in order to take in advantage opportunities in internal and
external environment for the maximum utilization of the new product launch on the
market. This was referred to maxi maxi strategy. The performance during the campaign
has proved its performance and showed truly the usage of strengths (strong brand
identity and equity, etc.) in order to change opportunities (extension of portfolio) into
strengths.

Concentrated launch itself started in the capital of the Czech Republic – Prague,
involving all employees of the company. Whole campaign comprised of online and
offline media communication, creation of special Editions web page, direct face to face
communication accompanied by printed leaflets communicating benefits, new media
competition, and last but not least plenty of cultural and sports events.

74
Suggestion for recommendation were made according to own observation and
interviews with consumers and employees. Marketing campaign was firstly evaluated
and inserted into one of the most common traditional marketing models. Aida model
has shown that during the campaign none of the important points was excluded. Letter
acronyms in the model refer to attention, interest, desire and action. Marketing
campaign fulfilled all above mentioned with the stress put mainly on first three
sections. Hierarchical model helped to organize the activities together and draw the
consequences. General saying says if the Aida model is covered by all four sections, it
then makes a successful marketing campaign in order to reach new consumers. This
fact was proved in every point. Last part of Aida model refers to “Action”, the work has
shown prove of Red Bull marketing activities connected to Red Bull Editions and its
sales performance.

During the first three months of 2013 total portfolio grew by 7%. Total Editions share of
the whole portfolio settled at 19%. Incremental within Editions stopped at 33% in
relation to the previous month. It can be said that performance during Editions launch
is very respectable. Sustaining the raising trend in buying new product is a matter of
time. Only time will tell if a new product resulted in re-return of the consumer to the
new flavours. The company in its post launch phase bets mainly on summer festivals
and their own branded events where consumers can meet with the product. On premise
(day and night gastronomy) and off premises (distribution of petrol stations, traditional
trade, etc.) activities are still running during these months. After the summer season
will yet to be seen Editions sales performance and their development.

Marketing activities was evaluated according to own observation. In case of Day D was
suggested several improvements. Improvements referred also to couple of managerial
arrangements, which were realized during the day. It is necessary to say that these
recommendations are not so crucial for running campaign but could have improved
teams’ performance and hence direct marketing communication.

Most crucial recommendation in campaign is in terms of branding. International


company such as Red Bull should strongly keep track with its brand image and invest
more money to unified visual style of its sampling teams. Less gullible citizens should
have more trust in three members teams, which strives to offer and present product
benefits. The first impression is perhaps the most important thing in the overall short
face to face presentation.

Day D directly addressed 14 000 of consumer contacts. The projection was made at
15 000, which means that campaign reached the expectations. People who tried
Editions for the first time were covered by 82%. At this point of view is again

75
satisfactory amount due to set objectives at the beginning of the campaign, which
intended on strong Editions awareness. Entry point consumers were reached by 34%,
which means that teams directly communicate editions to young target group between
16-19 years old. This number is given mainly by amount of schools, which was attended
by sampling teams. One third of all addressed consumers were Red Bull primarily
target group. Amount of EPC’s is great for one day.

Marketing communications targeted on entry point consumers as well as on existing


ones. In case of 16-29 target group, has occurred good step in making Instagram
competition as well as Facebook voting. Younger target group is more sensible to new
trends and try to experience as much efforts given by companies with high brand
equity. Word of mouth is then easily spreading and activity is better communicated
among them. Recommendations should comprise better usage of competition in order
to inform more people to compete in. Number of uploaded photographs reaches 164
posts on the Instagram page. Involved people were mainly from the capital. Student
Brand Managers should have been distributed by Instagram leaflets and use them
regionally on their campuses.

Consumer collecting team launch at the campuses was regionally successful as well.
Students have come up with new ideas how to promote new product. Company put
great intention on University campuses nationwide.

In case of Sales attack as a part of direct promotion sales, can be concluded as a great
tool to cover students’ outlets. During the sales attack activities was sold over 5 000 of
cans which is a great effort to traditional off premise outlets.

Thanks to my employment possibilities, I managed to participate in multinational


marketing communications company. As far as I can, I valuate overall product launch
on the Czech market as positive. Future proposals for improvements were made on the
basis of my observation of the situation. The more you penetrate into this structure, the
more I realize huge overlaps that company spends to reach out the new consumers. Red
Bull company educates its employees (mainly students) in the best possible spirit to
represent their brand well. On each department works real experts in their field, from
whom could learn even the general public. Despite the fact that the company is
considered as the creator of modern communication, should not rest on laurels, watch
the competition and constantly improve its performance in order to sustain market
leadership.

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