CREATIVITY PAYS OFF

Surya Chandra, Tim Young (215029921, 212124584) Ever wondered why coca-cola and red bull are the respective market leaders in soft drinks and energy drink sectors. Do you think it’s just superior quality? Does coca cola taste better than Pepsi, does Red Bull taste better than any of the other energy drinks available such as V or does it give you more of an energy boost. The answer is none of these, in fact there is nothing to suggest these products have any innate advantages over the others in their product categories. So what separates these brands from the rest? It’s marketing. The way these brands have been able to communicate with the consumer is unique and more creative than that of their peers. Red Bull for instance has always believed in bringing people to the brand using the AIDA strategy that is Awareness, Interest, Desire and Action, they have done this despite no intrinsic advantages over the others through lots of sponsoring of events that gets noticed and makes it a more recognisable brand (Awareness). They also create Interest in the brand through the events that they sponsor such as the Red Bull air race and freestyle motocross events. Red bull likes to use a pull strategy, instead of spending millions on pushing the product through advertising they like to generate lots of positive word of mouth cheaply through their wings team that travel around in a red bull car with a large can attached to it offering people a free can. It’s all about finding creative ways to get to the consumer in a way they haven’t been communicated to before, that’s what makes the marketing of the brand effective. A perfect example of getting creative was the wildly successful share a coke campaign that was trialled in Australia in 2011 using the top 150 most popular names in the country. It was successful because it adds a very personal message to the brand and although aimed at 18-25 year olds older people could still get involved because a name is non-discriminating. It created a lot of hype on social media sites such as Facebook with coca cola’s Facebook page likes growing by 39% and traffic on the page increasing by 870%. It created a tangible personalized item which encouraged people to share it online generating lots of buzz. Many brands which are ahead of their competitors are experts in using the integrated marketing communication to spread a message. Ever wondered how energy drink with bulls on its face can give you wings, that might sound stupid but it actually worked. Companies never care for logic as long as their message is delivered. You know how much money goes into marketing, it’s 25% of their profits in the case of Red bull and it seems justified when we just think of actual extent of advertising it does. For a brand to be successful it has to be advertised extensively through different kinds of medium which sends a common message and only when the message reaches the consumer effectively all the efforts are justified. It’s not about the brand or the content of the message it is about how you can communicate that message to the consumer in a way that sticks and in that regard certainly with Red Bull and Coca Cola creativity really has paid off. Related Articles: http://www.theguardian.com/media-network/media-network-blog/2013/jul/24/share-coke-teach-brands http://www.coca-colacompany.com/stories/share-a-coke-how-the-groundbreaking-campaign-got-its-start-down-under http://businesscasestudies.co.uk/red-bull/engaging-consumers-through-word-of-mouth-marketing/introduction.html#axzz3YCzP55BV http://www.sellingpower.com/content/article/index.php?a=9437/the-powerful-sales-strategy-behind-red-bull&page=1 http://www.forbes.com/sites/forbesasia/2013/06/24/the-wind-behind-red-bulls-wings/

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15 thoughts on “CREATIVITY PAYS OFF

  1. There is one more thing that works in their favour and that is the positivity they project. These are feel good drinks so when they advertise with feel good advertisements people tend to relate better.

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  2. Coke is already on top the market, almost everyone knows that a coke is a brand of soft drink, in advertisement it does not has to show any factual things of the products because it does not have any so what does coke has to advertise to stay in the marketplace and keep people drinking their brand, its the emotions that they are linking to and to stay on that the use the creativity, when people find something new or something they can connect to they then engage with the brand creating an association with it. Coke is really smart in creativity brands strive for engagement related creativity in their advertisements. If an ad picks up really well then a firm can further exploit the explored wealth of advertisement by other means of IMC such as coke did by setting up cane printing kiosks creating an events which engages the consumers and builds up association and simultaneously online association was created.

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  3. 25% of profits on Marketing sounds like a very large amount of money but it is not surprising given the streams of advertising they use to market their products.

    Both Red Bull and Coke definitely focus on the affective or emotional aspects in their advertising and it has worked wonders. Who doesn’t want to feel better? Drink this and you will.

    Unfortunately, I never got to see my name on a can of Coke.

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  4. @b976 agree with you.
    Even i beleive Innovative promotions more viable in moving individuals to purchase items than advertisements that basically inventory item traits or advantages. Various research facility analyses have observed that inventive messages get more consideration and lead to uplifting disposition about the items being showcased.

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  5. Coke is the market leader, so in some respects they would find themselves needing to try harder to maintain their market share and dominance in the soft drink category. If they rest on their success they might find that a competitor has an opportunity to take some share off them and make up some ground on the market leader. Coke has to be ever evolving, it has to keep moving, thinking, and creating to make sure it maintains its dominance. I wonder if it is always the best position in the market to be in? Sure dominating the competition is what any company sets out to do, but once your there is it harder to maintain this dominance ?

    Coke are always responding to market trends and consumer needs, you can see this through the release of their latest product – Coke Life. Soft drink sales are in decline, this is primarily due to the concern surrounding the healthiness of consuming too much sugar. So Coke (and now most of their competitors – Pepsi, Schweppes, etc) have responded to societies concerns and released a lower sugar content version of their beloved products.

    This ‘finger on the pulse’ technique just goes to show the importance of keeping up, or even ahead, of market trends and concerns. This is essential to any marketing strategy, keep up with what your customer wants, and if you can, even before they know they want it !!

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  6. No doubts that Coca Cola is one of the most recognizable brands around the world and Pepsi is always running to try to get some of Coke’s market share. This reminded me a Pepsi ad campaign that was made from the brazilian market and calls “can it be?” . On this ad, a client in a restaurant got the question “we just have Pepsi, can it be?” and then are showing many situations where the second option is actually very good. Pepsi, in Brazil, decided to assume the “other option” position and now is trying to capitalize using this. Here is the link for the ad if you are interested: https://youtu.be/MkyWgYrtjmk

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  7. Was totally aware of this campaign but not really aware of the mass social media campaign that ran with it with facebook etc. They certainly pulled in their target audience – 50% per cent of teens and young adults had not even tasted coke. I could not believe that, kids got to that age not having tried coke, see why they have been heavily promoting their new product – coke life. Thanks for introducing the “pull strategy” . I think one of the cleverest things coke has done for a while is change their packaging and introduce the slim, smaller can.

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  8. I don’t drink Coke or energy drinks such as Red Bull because I think they are unhealthy, but I often find their ads interesting. Even my two-year-old daughter finds that a car with a big Red Bull can is very funny.
    I have to admit that both Coke and Red Bull are doing very well in a way of engaging with customers all over the world. It sponsors not only sports but also music festivals. In Korea, Red Bull was sponsor at many famous music festivals such as World DJ Festival and Ultra Music Festival. People could drink and dance inside the big Red Bull lounges for VIP. It was certainly a good way to advertise the drink. At music festival, many people used up their energy and still want to enjoy, and Red Bull finds out when and where people want the drink and satisfies people’s needs.

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  9. Coca cola and redbull enjoy huge followings because they know how to protect their huge market share. they do that by targeting every new generation with new ads. they know most parents nowadays try to control kids from drinking sugary or soft drinks at early age thus ads are tailored to a diverse age groups.

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  10. First of all Coke definitely tastes better than Pepsi! That aside, they are such an impressive company and their marketers must be genius. They are like Madonna in that they keep finding new ways to present themselves. It’s quite incredible considering it is such an unhealthy drink, yet it has a fun, healthy outdoorsy image, at least in my mind anyway.

    I wonder how many people have been handed a Red Bull by a sales rep in the street? Because I have at least twice. Brilliant strategy considering the product. You’re out and about at night or just after a sporting event and Red Bull gives you a caffeine buzz which will be exacerbated by the atmosphere and boom, you’re a Red Bull fan. I think their integrated advertising campaign has been brilliant. I can think of and remember ads on tv, radio, billboards, sponsored events, etc. The message has been consistent across all those mediums. So well done red bull. (Though I don’t drink it as I don’t want ‘wings’ at 3 am when I am trying to sleep)!

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  11. Hi,
    I agree entirely with the contents of your blog in that fact that the success of products is more often than not the result of the marketing behind the product rather than the quality of the product itself.
    With this in mind, one of the areas that my group believe we could have improved our blog was marketing it better. We (as have you) focused on amounts of text, rather than making the post more interactive with photos, videos (I know you have one) and links. If you look at the blogs that have attracted lots of attention (some have 44 responses on them) these all seem to be visually attractive rather than informative through text.
    I feel this is the message behind your blog.
    Thanks,
    Matt

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  12. good blog and i agree with your points- once a product has become firmly established as a market leader the need to sell the quality of the product diminishes. You tend to see both coke and red bull having fun with their campaigns these days, not focusing on informative text. The name campaign by Coke clearly has no effect on the quality of the product, yet it attracted attention and most importantly resulted in the “action” step that so many campaigns fail to achieve.

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  13. The ‘Share a Coke’ campaign by Coca-Cola was simply genius. Such a simple idea and I can remember all the people taking ‘selfies’ with their Coke with their name on it. Unfortunately, my name was not one of he names and when I looked and saw names like Wolfgang and Niamh, it was somewhat frustrating as I feel my name is far more common then those. Coke did offer on its website to order your name online but this definitely was not the same as buying it in store. What Coke did do really well for those whose names were unavailable, was to have Cokes with general language such as sharing a coke with ‘Mate’, ‘Legend’, etc. This involved everyone in the campaign. This campaign was definitely one of my favourites in recent times.

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  14. I agree with your blog that in reality the accomplishment of items is as a general rule the consequence of the showcasing behind the item instead of the nature of the item itself.

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