Vroom Energy Drink IMC Plan - Case Study Example

Vroom Energy Drink IMC Plan Name Course Name and Code Instructor’s Name Date Table of Contents Table of Contents 2 Executive Summary 3 1.1 Purpose 4 1.2 Product description 4 1.3 Outline of the Report 4 2.0 Situational Analysis 5 2.1 Internal analysis 5 2.2External analysis (competitive analysis and consumer analysis) 6 2.2.1 Competitive analysis: 6 2.2.2 Consumer analysis 7 3.0 Market segmentation and targeting 9 4.0 Positioning strategy for your product 10 5.0 Geographic location for your IMC Campaign 10 6.0 Conclusion: Sales Objectives and Communication Objectives 10 7.0 References 11 Executive Summary The aim of this report is to present Vroom Energy Drink IMC Plan. Melbourne Manufacturing Industries produce Vroom and is non-alcoholic drink that comes in two variants: sugar free and normal. It is packaged in an aluminium can that has orange and black colours with images of a person in a gym and a person on a motorbike. Vroom can is friendly to handle and utilise and also the contents increases diligence, energy, alertness and presence of important supplements. The tagline of the drink is “Vroooooooooom” meaning continuing or increasing pace on what someone is working on. The major competitors of Vroom include Monster, Rockstar, Red Bull and the report will concentrate on Red Bull has the major competitor to Vroom energy drink. Vroom energy drink appeals to three segments of the market but the most important targeted segment is people aged between 18-30 years and active in sports. Vroom will be positioned as a product that can be used easily because of its packing, importance of the contents, utilisation of the product in different areas of lifestyles, and also its impact on the individual life relative to society. The product will be marketed in Melbourne and Victoria regions in which the main sales objectives includes increase the distribution of Vroom by 5%, increase the awareness of brand by 85%, and increase perception of the product. While the communication objectives include brand awareness, brand knowledge, brand image, formation of favourable attitudes of Vroom energy drink, and usefulness of the product. 1.0 Introduction 1.1 Purpose Companies and organisations introduce new products into the market and they utilise different strategies in ensuring that consumers are attracted to the product or service (Shimp, 2008). Thus, the purpose of this report is to develop an IMC plan for Vroom Energy Drink. 1.2 Product description Vroom Energy drink is a product produced by Melbourne Manufacturing Industries. The Vroom is non-alcoholic drink that comes in two forms, which are sugar free and normal blend. The 500ml container is cylindrical in shape and it is coated with orange and black colours. Moreover, the can has images of persons riding a motorbike on one side while on the other side, a person carrying weights at a gym. Some of the benefits associated with Vroom Energy Drink include alertness, increased energy, and diligence. In addition, Vroom has important supplements that ensure that the body receive the right amount of nutrients. 1.3 Outline of the Report The report analysis the internal analysis associated with Vroom Energy Drink followed by the external analysis. Some of information that will be analysed externally includes competitive analysis and consumer analysis (Ogden and Rarick, 2009). The report then analysis market segmentation and targeting in which appropriate consumers will be identified. It will be followed by analysing positioning strategy and geographical location in which the energy drink will be marketed at. Lastly, the report presents sales objectives and also communication objectives (Egan, 2007). Red Bull is a brand that was launched in 1987 and it has a large market share compared to all of its competitors but the marketing strategy is not traditional e.g. using magazines and television. 2.0 Situational Analysis 2.1 Internal analysis Vroom Energy Drink should mostly be associated with sports and those activities that require a lot of energy. Moreover, based on the container of the drink, the slim cylindrical allows it to be kept easily in trouser pockets, inside cars and also in carrying containers (Koekemoer, 2004). In addition, the shape of the container is “sexy” in nature because of its dimension. Some of the benefits associated with Vroom Energy Drink include increased diligence, energy, alertness and presence of important supplements (Gospe, 2008). The unique features associated with Vroom Energy Drink include the colouring of the container and the shape of the container (Cheng, Kotler, & Lee, 2010). Moreover, include sports images on the counter creates a distinctive difference from other brands in the market. The two sports activities, a person riding a motorbike and a person in gym, will be the major components of the container and it will form the logo (Smith and Zook, 2011). The logo will be a person lifting both the motorbike and the person on the motorbike. The major word on the container and it is aimed at ensuring that consumers can associated the brand with their requirements is the word “Vroooooooooom”. 2.2 External analysis (competitive analysis and consumer analysis) 2.2.1 Competitive analysis: The three main direct competitors of Vroom Energy Drink are Monster Energy Drink –The energy drink was launched in 2002 by Hansen Natural Company. The energy drink comes in a black coloured logo can. Under the brand name Monster, there are other 27 drinks Rockstar Energy Drink – The energy drink was launched in 2001, and it is based in Los Vegas, Nevada and it comes in 14 different flavours, and is sold across twenty countries. Red Bull Energy Drink – The energy drink was launched in 1987 and was sold in Austrian before being marketed across the world. The company sells more than four billion cans yearly and it has the largest market share in the world. The slogan of the company is “Red Bull gives you wings”. Red Bull has only four variants compared to the other two brands. Red Bull Market Capability Red Bull Energy Drink has the largest market share across the world. Moreover, it is among the first energy drinks introduced into the world and its marketing strategy is unique. The company does not utilise tradition methods of advertising e.g. through media and newspaper but rather sponsors sports related activities (Lamb, Hair and McDaniel, 2011). Comparing it to Monster and Rockstar energy drink, the company has been in place for a long period and its variants are few meaning that customers choose from a few brands translating in creating messages that can “catch” the customer easily (Smith and Zook, 2011). This is different compared to the other brands because marketing more than ten variants of the same product may be difficult and the messages can confuse the customers. The strengths associated with Red Bull energy drinks include: Has a large market share and hence can manipulate the market easily Few variants available in the market Limitation associated with the product: The marketing strategy utilised by the company may not appeal easily to most consumers. Marketing the product only on sponsoring extreme sporting events and they give free samples at these events. Moreover, Red Bull relies on nightclubs and bars in allowing consumers to sample the energy drink. Due to weakness it marketing approach, Vroom energy drink will maximise on this weakness in penetrating the Red Bull market. 2.2.2 Consumer analysis Demographics – Vroom energy drink is suitable for all people except children, pregnant women, and those people allergic to caffeine. Needs – the needs that Vroom energy drink can fulfil are divided into three parts, which are physical, social and individual. Physically, when a person is tired and cannot continue working on certain task may decide to take the drink to keep the person alert (Riggs, 2006). Socially, the need of belonging pushes a person into purchasing Vroom energy drink: for example when participating on extreme sports. Individually, a person may need self-expression or concentration and this can be prevented by weariness or fatigue. Thus, a person consuming Vroom energy drink can increase energy, alertness, and concentration (McLeish, 2010). Wants – Consumers requires products and services that can easily be used and meets their requirements. Some of the requirements that a consumer can achieve through consuming Vroom energy drink include increase in energy and alertness (Doole and Lowe, 2005). Moreover, convenience in carrying and using the can meets requirements of many people who do not require luggage or anything that is not comfortable to hold. Motivations – Increase in energy and other benefits associated with the Vroom energy drink may drive consumers into purchasing the product. Moreover, the easiness of utilising the product ensures that consumers are motivated towards utilising the product. To summarise the information on needs, wants and motivations, the following chart illustrates important information on the requirements and determinants that dives consumers to purchase Vroom energy drink. 3.0 Market segmentation and targeting Vroom is purchased anytime when a person requires high energy especially before a workout, before a class/exam, before participating in other sporting activities or events. Generally, it means that different consumers can consume the product to satisfy their requirements. The groups that can utilise Vroom energy drink are: People aged between 18-30 years and active in sports Elderly people above the age of 50 years Middle aged people (between 31-49 years) and works in heavy industries Vroom energy drink target market is young people on the move. Moreover, the people should be active in nightlife and enjoy extreme sports anywhere between 18-30 years. In addition, the group enjoys new media such as social media networks and they can easily be reached through traditional communication strategies e.g. newspaper and magazine (Allen, 2008). 4.0 Positioning strategy for your product Vroom energy drink will be positioned as a non-alcoholic drink that can be consumed by anybody except children, pregnant women and those people who are affected by caffeine (Dobkin, 2007). The Vroom can is also uniquely designed ensuring that it can be held and used easily (Dietrich & Livingston, 2012). The can also is decorated in a manner that is distinctive and can easily be associated with the product. Due to the needs and wants of the consumers, the aluminium can and its position within the market will appeal to the young people and nightlife people (Steger, Kelly and Wringhton, 2006). Sports are important component to daily life of young people because of the benefits associated with sports (Arikan, 2011). Extreme sports and other types of sports that require a lot of energy may be utilised as a base in which free samples can be provided and through sampling, the sports persons may associate the drink with the sport activity (Hopkins & Turner, 2012). 5.0 Geographic location for your IMC Campaign The product will be marketed within Melbourne and Victoria regions. Vroom energy drink will be sold at the convenience store, grocery store and gas station. 6.0 Conclusion: Sales Objectives and Communication Objectives Vroom energy drink is a new product within a market that has numerous international brands. Thus, the sale objectives of Vroom energy drink are: Increase the distribution of Vroom by 5% Increase the awareness of brand by 85% Increase perception of the product The communication objectives include: Brand awareness Brand knowledge Brand image Formation of favourable attitudes of Vroom energy drink Usefulness of the product 7.0 References Allen, K. (2008). 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