Marketin

g Plan –
Energy
Drink
Marketing
Plan
Assignment
Marketing Plan – Energy Drink

Contents

Executive Summary...................................................................................................................3

The Business..............................................................................................................................4

The Product............................................................................................................................4

Geographic Location..............................................................................................................4

Competitors............................................................................................................................4

RED BULL........................................................................................................................5

POWER HORSE................................................................................................................5

BURN.................................................................................................................................6

Our Energy Drink...................................................................................................................6

The Customers...........................................................................................................................7

Profile of The Average Customer..........................................................................................7

Advertisement Campaign.......................................................................................................7

Reasons to Purchase the Product............................................................................................7

Product Improvements...........................................................................................................8

Global Market........................................................................................................................8

Marketing Objectives and Strategies.........................................................................................9

Objectives...............................................................................................................................9

Strategies..............................................................................................................................10

Marketing Mix Grid.............................................................................................................11

Budgeting.................................................................................................................................12

Time Line.................................................................................................................................13

References................................................................................................................................15

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Marketing Plan – Energy Drink

Executive Summary

The Marketing Plan is based on the Research Project for the energy drink. It starts with
defining the business which is a product which is an energy drink. The geographic location of
the business is UAE and all the cities in the metropolitan areas of UAE.

The energy drink will be quality centric and manufactured in UAE, it will be different than
our competitor’s foreign products and will be catered to the local needs and wants of the
market. The target markets in this project are the local Emirate’s of the age group 19 to 29.
The detailed customer preferences are also presented in the Marketing Plan.

After presenting the view of the business and equipping the reader with the information on
the business and the customers the research then moves on to Marketing objectives and
strategies, which are to become the industry leader in energy drinks market and being local at
the same time providing quality centric energy drink to the locals.

Detail budget cash flow is also presented detailing following percentages of total sales to
marketing campaigns:

1. 2% of total receipts dedicated for promo & teaser

2. 8% of total receipts dedicated to social and print media campaign
3. 5% of total receipts dedicated to TV and Radio Advertisement
4. 5% of total receipts dedicated to Below The Line Marketing (BTL)
The energy drink will be sold at 5 AED in 2013 and adjusted to inflation later on at 15%.

The time line of the action plan for marketing campaign starts from February, 2013 till
December, 2015. The details of the same are presented in MS project file.

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Marketing Plan – Energy Drink

The Business
The product offered is an energy drink, energy drinks are consumed on every day basis in
UAE and 73.3% of consumers fall in the age group 19 to 29, energy drinks have become the
everyday drink in UAE. The business will be actively involved in beverages industry, our
product falls in the sub sector of the beverages industry, which is energy drinks market.

The Product
Energy drinks are in high demand in UAE the ingredients used in our energy drink are as
follows:

1. Methyl-xanthines (Caffeine)
2. Carbonated Water
3. Herbs
4. Vitamin B

Caffeine the ingredient found in tea and coffee is used largely by energy drink producers and
is also the major ingredient in energy drinks available in the market. This could be classified
as one of the reasons for the high consumption of energy drink vitalising the consumers’
energy levels upon consumption to keep up with the busy life.

Geographic Location
The geographic location of the business is UAE, which is a dessert with most of the land
barren and sandy experiencing hot climate almost through-out the year, ideal for beverages
industry, the targeted cities include Dubai, Sharjah, Al Ain, Abu Dhabi, Ajman, Fujairah, Ras
al-Khaimah and Umm al-Qaiwain. The conditions of the geographic region suits the
consumption of energy drink rather it is a requirement to keep on drinking because of the
dehydration due to hot climate, consequently adding to the high consumption of energy
drinks.

Competitors
Beverages industry is a very competitive energy with giants like Pepsi and Coca Cola with
years of experience in producing beverages and market saturation. The results of the research

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Marketing Plan – Energy Drink

report deduced that somehow the giants have failed to take over the energy drink market and
new players have arrived with strong marketing and promotional campaigns.

The major competitors in the energy drink market of UAE as revealed by the research report
are Red Bull taking the lead, second comes Power Horse followed by the beverages industry
giant Coca Cola – Burn.

RED BULL
The company is involved in continuously developing strategic marketing, using cross borders
media campaigns, even going for below the line marketing with a classy campaign crafting a
distinctive image in consumers mind from last 25 years. The company slogan “Red Bull
Gives You Wings” continuously evolving to market needs now says “Giving Wings To
People and Ideas”. The company’s target markets are the party people, the adventure lovers
and sportsmen in the age group of 19 to 29.

The drink was introduced in 1987 in Australia, which was originally being sold under the
name of “tonic drinks” in Far East market of Hong Kong.

In 2012 Red Bull sold 4.6 billion cans maintaining the yearly can selling average, adding to a
total of 35 billion cans sold worldwide till date [ CITATION Rednd \l 2057 ]. With 8,294
employees in 164 countries and a growth rate of 12.4% the Red Bull is at the top of the
energy drink market and is our major competitor.

POWER HORSE
A relatively new product launched in 1994 being sold in 50 countries worldwide,
differentiating its target market by targeting people who work hard every day and think based
on performance [ CITATION Pownd \l 2057 ]. The company does have a marketing strategy

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Marketing Plan – Energy Drink

but not involved in below the line marketing tactics and relies on selling the product based on
the quality of the product.

BURN
Latest product out of the three major competitors, launched in 2000 selling in over 80
countries, backed by the goodwill and experience of Coca Cola alongside a strong social
media campaign [ CITATION Cocnd \l 2057 ]. Burn has a slightly different target market of
people who are more concerned about creativity aspect of the life.

Our Energy Drink

The energy drink market presents fierce competition as explained above, therefore the
objective of the pricing strategy is Product Quality Leadership, and the concept of target
costing is also incorporated while pricing decisions for the energy drink. This will enable us
to offer competitive prices and will certainly add in increasing the market share.

The company will engage in strategic marketing of the energy drink crafting a distinct image
of the product based on quality and local origin of the product.

Being local as well as quality centric will be at the heart of the company and will differentiate
us from the competitors. Different promotional techniques including above the line and
below the line will be used to stay competitive in the market alongside a social media
campaign.

The product will be available in all the shopping malls and in stores; the product will also be
available online with a home delivery option based on terms and conditions. The delivery
option only when the company’s BTL is in the area will also be another feature which will
become the competitive edge of the company.

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Marketing Plan – Energy Drink

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Marketing Plan – Energy Drink

The Customers
After a careful analysis as presented in the Research Report our customers are defined as
below.

Profile of The Average Customer

We will differentiate our target market by targeting locals, the Emirate’s between the age
group 19 to 29. As explained in the research report 70% of the energy-drink market
consumers are the Arabs between the age of 19 to 29, we will exploit this and target all the
local Emirati’s in the age of 19 to 29 by providing them a quality centric product with a local
touch.

Advertisement Campaign
Our advertisement campaign will begin with a teaser all over UAE regarding the release of a
new local energy drink with a local flavour for quality centric Emiratis. The teaser will be
backed by a social media campaign using all the available social media networks.

The energy drink will be brought in the eye of public with the help of news media, relying on
making news in media stream just for the sake of promotion of the teaser to reach out to our
target market of local Emirate’s. The company is confident if we make it in UAE we will
make it in the world because of the globalization and also because UAE is becoming the
business and tourist hub of the world, so what’s big in Dubai is big all over the world.
Followed up by the print media campaign and finally the advertisement on television and
billboards around major location of the city as part of the below the line marketing campaign.

Social Media campaign will be launched using instagram, youtube, twitter, foursquare,
google+, facebook, pinterest and tumblr to spread news about the energy drinks launch and
offers available alongside.

Reasons to Purchase the Product

Our product is entirely based on quality and will be catered according to the needs and wants
of the local market, because the brand will be a local brand hence we will be more inline and
tuned with local trends then our foreign competitors, incorporating the same into our strategy
of reaching out to locals. Hence consumers will have more than one reason to buy our
product the quality, the price and the local origin of the product.

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Marketing Plan – Energy Drink

Product Improvements
 Engaging in research and development to identify other substances which could be
used to make the energy drink more vitalizing and refreshing than our competitors
without posing any risk to health.
 Product packing plays a vital role in energy drinks, the company could come up with
new innovative bio-degradable packing to gain competitive edge in the market. This
will also help to craft a green image of the product hence increasing the quality good
will of the product.
 Caffeine has certain side effects like agitation etc. the company could come up with a
substitute formula without the side effects of Caffeine.
 The energy rush provided by the energy drink drives the consumer preferences in the
market consequently driving the sales of energy drink. Therefore if the energy and
vitalizing content of the drink is increased it might lead to a break out in the market.
 Registration and accreditation of the energy drink with medical institutions will also
help to gain the consumer confidence as a new entrant in the market.

Global Market
We are only concentrating at the local market at the moment in the future the company could
also target consumers in international markets by developing international supply chain and
international distribution channels.

According to a survey the top ten countries with the most number of energy drink consumers
from the fifty surveyed countries are US, UK, Vietnam, China, Thailand, Mexico, Australia,
Germany, Poland and Saudi Arabia [ CITATION Zen12 \l 2057 ]. Further the study reveals
that Australia, New Zealand, Austria, Saudi Arabia and Israel had the highest consumption of
energy drinks per person.

The international market will always be an avenue for the company to launch the product and
multiply their revenues; the globalization has made it easier to develop an international
supply chain alongside a strong BTL advertisement campaign.

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Marketing Plan – Energy Drink

Marketing Objectives and Strategies

The marketing strategy of energy drink will explain the company’s future goals. The
marketing strategy for the energy drink is set after careful analysis of the findings of
Research Report. It incorporates the objectives and the mission of the company. The
following strategy will focus on the strategic decisions necessary to allocate resources for the
marketing plan of the energy drink.

The strategy will highlight the managerial actions required to have long-term effect on the
marketing image of the product. There are four factors involved in a customer driven
marketing strategy and the marketing mix as below:

1) Segmentation
2) Targeting
3) Differentiation
4) Positioning

Also the marketing objectives make sure that a company is well informed about its strategies
and also the company is in line with the information on whether the strategy has
accomplished its purpose or not [ CITATION McD11 \l 2057 ]. The marketing objectives for
the energy drink have been deduced after careful analysis of the consumers. The customer
profile is presented above as analysed from the research report.

To compete in the energy drink market the objectives play a vital role continuous tracking of
the company’s performance and making changes as required by the external competition and
market needs and wants. The marketing objectives and strategies are as follows:

Objectives
The energy drink will be the first ever locally produced energy drink hence crafting a local
image will be the core of the marketing objectives. The marketing objectives are as follows:

1- To craft a distinct image of the product based on quality and local origin of the
product.
2- To become the market leader in energy drinks in UAE
3- To capture the maximum market share

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Marketing Plan – Energy Drink

Strategies
Red Bull is very innovative when it comes to strategic marketing over cross border network.
The company has experience in wiping other beverages giants out of the market in a matter of
time. To compete with such a company benchmarking is required incorporating the results in
the strategy of the business will lead to gain competitive edge.

The core of the competitive strategy of the company will be the following:

1. Local manufacturing and origin with local flavour.

2. Quality centric product
3. Delivery if BTL Vehicle (below the line) available in the area.
4. Social, Print and News Media

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Marketing Mix Grid
Once the company has finalized its overall competitive strategies it’s time to prepare the marketing mix [ CITATION Kot08 \l 2057 ]. One of the
goals of the marketing mix is to set the tools which will allow the company to control the effects it wants in the market. The Marketing Mix Grid
for our energy drink is as follows:

Product Price

 Quality centred energy drink  Product Quality Leadership

 Local flavour  Target Costing
 Manufactured in UAE  Cash Return Policy
 Mind and Body vitalizing
19 to 29 age group
Emarati’s

Quality Centric Local

Drink
Promotion Place

 Promotion teaser  Online

 Social and Print Media Campaign  Shopping Malls, Patrol Stations in
 BTL Vehicles and Billboards stores in UAE
 Local UAE TV Channels  BTL Vehicles operating in UAE
Budgeting
The following cash flow presents detailed budget of the energy drink including percentages
of sales allocated to each marketing campaign.

The Energy Drink

Marketing Budget

Cash Flows 2013 2014 2015 2016

  AED AED AED AED
Sale price per unit 5 6 7 8
     
RECEIPTS    
Cash Received from Sales (10 million units) 50,000,000 57,500,000 66,125,000 76,043,750
     
Total Cost per customer (2 AED) 20,000,000 23,000,000 26,450,000 30,417,500
     
     
TOTAL RECEIPTS 30,000,000 34,500,000 39,675,000 45,626,250
     
DISBURSEMENTS    
Advertising launch Promo & teaser 600,000 690,000 793,500 912,525
Social and Print Media Campaign 2,400,000 2,760,000 3,174,000 3,650,100
TV and Radio Advertisement 1,500,000 1,725,000 1,983,750 2,281,313
BTL Vehicles and Billboards 1,500,000 1,725,000 1,983,750 2,281,313
     
     
     
Total Disbursements for Marketing and
Advertisement 6,000,000 6,900,000 7,935,000 9,125,250

Note: Based on AED 446 million worth of drinks consumed by UAE consumers in 2009
Sales figures adjusted for 15% inflation
2% of total receipts dedicated for promo & teaser
8% of total receipts dedicated to social and print media campaign
5% of total receipts dedicated to TV and Radio Advertisement
5% of total receipts dedicated to Below The Line Marketing (BTL)

The statement above shows the cost of producing the drink as well as the price of the drink in
year 2013 with 15% inflation adjustment over the time till 2015. The cost of producing the
energy drink per customer are also adjusted at 15%.
Time Line
The MS Project file for the action plan is attached, please find below the print preview of the Action Plan.

Figure 1 - Action Plan in MS Project

The action plan will help to identify if the objectives as set in the marketing plan are being
accomplished or not. If not the information is sent back to the management and required
alterations are made as part of the continuously developing marketing strategy.

As shown in the figure above the action plan for the marketing campaign will be in following
stages:

1. Launching Promo
2. Teaser
3. BTL Campaign using vehicles
4. Billboards
5. TC and Radio advertisement

The details of time and deadlines of accomplishments of these marketing action plans are also
provided in the attached MS Project file.
Marketing Plan – Energy Drink

References

Coca Cola. (n.d.). Home. Retrieved January 5, 2013, from Burn:

http://www.burn.si/en_GB/home/home.html#

Kotler, P., & Armstrong, G. (2008). Principles of Marketing (12th ed.). New Delhi: Pearson
Prentice Hall.

McDonald, M., & Wilson, H. (2011). Marketing Plans. Retrieved January 5, 2013, from
Google Books: http://books.google.com/books?
id=F6SQldy8KacC&pg=PA205&dq=marketing+objective+and+strategies&hl=e
n&sa=X&ei=fRjoUJ73J_P34QSglYCQBw&redir_esc=y#v=onepage&q=marketi
ng%20objective%20and%20strategies&f=false

Power Horse. (n.d.). Power Horse Regular. Retrieved January 5, 2013, from Power Horse:
http://www.power-horse.com/en/product/power-horse-regular.html

Red Bull. (n.d.). Company. Retrieved January 5, 2013, from Red Bull:
http://energydrink.redbull.com/company

Zenith International. (2012, February 14). Global Energy Drinks Market. Retrieved January
5, 2013, from http://www.zenithinternational.com/articles/1012

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