Advertising Management: V Energy Drink Marketing Brief and Analysis

This report presents a comprehensive advertising brief for V Energy Drink, a product of Virgin Australia. It begins with an overview of the brand, its competitors (Monster, Red Bull), and buyer analysis, followed by a discussion of the current advertising strategies. The report defines the advertising problem and outlines specific objectives, such as increasing brand awareness. It then details the target market, consumer insights, and a proposed budget. The creative strategy focuses on expanding the customer base with a modern, innovative tone. The media strategy includes a media mix with budget allocation across metropolitan television, social media, handouts, out-of-home advertising, and magazines. The report also includes media scheduling and mandatories for the advertising campaign. Part B provides justification for the decisions made in Part A, supporting evidence with references, and further analysis of competitors, buyer behavior, and current advertising practices. The report adheres to QUT APA 6th referencing guidelines and includes a detailed reference list.

Running head: ADVERTISING MANAGEMENT 1
ADVERTISING MANAGEMENT
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Table of Contents
Part A: Advertising Brief...........................................................................................................4
1. Background............................................................................................................................4
1.1. The brand........................................................................................................................4
1.2. Competitors.....................................................................................................................4
1.3. Buyer analysis.................................................................................................................4
1.4. Current advertising..........................................................................................................5
2. Advertising Problem..............................................................................................................5
3. Objectives...............................................................................................................................5
4. Target Market.........................................................................................................................6
4.1. Target..............................................................................................................................6
4.2. Consumer insight............................................................................................................6
5. Budget....................................................................................................................................7
6. Creative strategy.....................................................................................................................7
7. Media strategy........................................................................................................................8
7.1 Media mix with budget allocation....................................................................................8
7.2 Media scheduling.............................................................................................................8
8. Mandatories..........................................................................................................................11
Part B: Justification - Supporting evidence..............................................................................12
1. Background..........................................................................................................................12
1.1. The brand......................................................................................................................12
1.2. Competitors...................................................................................................................12
1.3. Buyer analysis...............................................................................................................14
1.4. Current advertising........................................................................................................15
2. Advertising problem.............................................................................................................16
3. Objectives.............................................................................................................................16
4. Target Market.......................................................................................................................16

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4.1. Target............................................................................................................................16
4.2. Consumer insight..........................................................................................................19
7. Media strategy......................................................................................................................20
7.1 Media mix with budget allocation..................................................................................20
7.2 Media scheduling...........................................................................................................20
8. Mandatories..........................................................................................................................21
References................................................................................................................................23

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Part A: Advertising Brief
1. Background 1.1. The brand
Virgin Airlines is a part of the Virgin Group in Australia. The formation of Virgin Group was
conceived by Sir Richard Branson and it has become one of the most respected brands in the
21st century. The companies of the Virgin Group operates in various sectors like
transportation, financial services, media, music, fitness among others. The group strives
towards making a difference and focuses on empowering the employees, delivering high
quality service and monitoring feedback of the customers for constant improvement and
innovation (Virgin Australia, 2019).
The V energy drink is the product chosen for discussion. The product was launched in
Methven, New Zealand in 1997 and two years later in Australia. The distinctive taste and its
non-fruity flavour adds to its uniqueness (V Energy, 2019).
1.2. Competitors
The Virgin Australia Airlines face tough competition from Qantas Airways and Tiger
Airways Private Limited. Tiger Airways commenced its operation on 23 November 2007. In
2012 the company announced to sell 60 percent of its holdings to Virgin Australia. Qantas
Airways founded in 1920 is one of the oldest airlines in Australia and has aimed to earn
record revenue in the financial year 2019. These two airlines exhibits maximum competition
to the Virgin Australia Airlines. The closest competitors of V energy drink are Monster and
Red Bull Energy Drink. The V energy drink with its iconic slimline can and the flavour of
guarana berries became popular among the masses instantly. The earnings of Monster energy
drink increased from $820.7 million in 2017 to $993 million in 2018 (Lahiff, 2019). The
brand Red Bull has garnered immense popularity since its launch in 1987 and sold 75 billion
cans ever since. The drink has further launched a line of organic sodas of which three
products do not contain caffeine (Forbes, 2019).
1.3. Buyer analysis
The Virgin Australia Airlines is focused on providing quality services for corporate travellers
as well as leisure travellers. For increasing the market share the company has focused on
increasing the business and government travellers. The airlines has introduced the V energy
drink which is favoured by the gym goers and young adults due to its smooth and sweet taste.

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The absence of the fruity flavour and bitter aftertaste is expected to increase its popularity
among the passengers of the airlines to a great (Parsons, 2019).
1.4. Current advertising
The Virgin Australia Airlines has used the medium of Metropolitan television and press,
magazines, metropolitan radio, out of home advertising and the digital platform for its
marketing. It can be found that the airline lacks in its investment on regional press, cinema
and direct mails. The V energy drink has mostly invested on out of home advertising. It lacks
on the areas of Metropolitan television, metropolitan radio and on the digital platform. The
strong advertising of the Virgin Australia Airlines and the association of the product with the
airlines adds leverage to the popularity and sales of the product (Virgin, 2019).
2. Advertising Problem
The Virgin Australia Airlines have limited budget for digital marketing and therefore the
marketing strategies need to be precise and effective. The airlines therefore need to connect
with the customers and develop a relationship that would add on to its sales. The airlines has
always been focused on making the traveling experience of the customers fun and
memorable. They emphasize on serving the passengers with the best quality of food and
service and therefore they have associated themselves with the V energy drink which is of
superior quality and taste and preferred by a large section of passengers (The Economist,
2014).
3. Objectives
The objectives of advertising include informing, persuasion and reminder. In the first stage a
product is introduced to make the consumers have a basic understanding of the product. The
second objective is the persuasion of the customers employing various approaches like
emphasising on product quality, uniqueness, service among others. The reminder ads
reinforces the brand message in the marketplace (Kokemuller, 2019). The objectives of V
energy drink have been indicated below:
 To increase brand awareness up to 7% of the target in the financial year 2019-2020
 To create the brand position of V energy drink among the target customers of Virgin
airlines

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4. Target Market4.1. Target
Virgin Airlines mainly targets the domestic leisure market of Australia as it is a low-
cost carrier and this market tends to be quite price elastic. Young passengers are the target of
Virgin Airlines because they prefer energy drink at the time of travelling. Virgin Airlines
could also target the business people as well because they also like to have energy drink like
V Energy.
Young students are the particular segment, Virgin Airlines would like to target
because a number of international students travel Australia every year. The most viable
segment is the passengers, who belong to the age group of 18-30. Young passengers
especially the students who travel to state capital cities and surrounding territories can be the
target audience of Virgin Airlines to offer V Energy Drink (Goodrich, Swani & Munch,
2018). Psychographic segmentation strategy can also be used to target the young students
because they have interest in purchasing energy drinks and simultaneously they are
concerned about price as well (Vallespín, Molinillo & Muñoz-Leiva, 2017).
4.2. Consumer insight
Consumers prefer to purchase V Energy Drink because this non-alcoholic energy
drink with low sugar level is available at comparatively lower price. The young people
especially students, gym-goers prefer it because it is very refreshing.

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5. Budget
Category Estimated Quantity Estimated cost per
Unit
Estimated sub-total
Web Research 1 AUD$ 1,00,000 AUD$ 1,20,000
Other Research 2 AUD$ 3,00,000 AUD$ 3,50,000
Audio and Visual Services
Screen 1 AUD$ 2,00,0000 AUD$ 3,00,0000
Extension Cost 1 AUD$ 3,80,000 AUD$ 4,00,000
Labor and AV
techniques
1 AUD$ 5,70,000 AUD$ 59,00,000
Social Media
Campaign
1 AUD$ 700, 00 AUD$ 7,20,000
Additional Cost
Invitation AUD$ 150,00 AUD$ 1,52,00,00
Promotional Cost
Energy Drink 3600 $900,00 AUD $9,00,000
Table 1: Estimated budget for the Advertisement Campaign
(Source: As created by author)
6. Creative strategy
Goal The goal is to expand the customer base and further increase the sales.
Target
audience
The desired target audience is men and women aged between 18-30.
Benefit The energy drink is smooth, sweet yet non-fruity. It is cheap when
compared to other energy drinks on the market and does not leave a bitter
aftertaste.
Support Such beverage stands to find acceptance among the targeted customers as
the functional beverage market is projected to touch 208.13 billion dollars
by 2024. It is primarily driven by inclination of the consumers towards

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non-alcoholic beverages
Uniqueness The uniqueness of the product lies in delivering energy with a distinctive
delicious taste.
Tone The advertising tone would be modern, innovative and consistent
Table 2: Creative strategy for V energy drink
(Source: As created by author)
7. Media strategy7.1 Media mix with budget allocation
As the young people from capital cities are the target so metropolitan commercial
broadcasters like Seven should be considered as the best media of advertisement. Sports
broadcasting channels should be selected. Virgin Airlines should focus on social media
marketing through the platforms like Facebook, Instagram, YouTube because it is the best
way to reach the young customer base.
V Energy Drink has been advertised in YouTube and various outdoor advertising
media. The rate of its digital advertisement is less than 1. In order to make effective use of the
media, the company has to focus on the content of their advertisement.
Media Allocation of Budget
Metropolitan television (Seven Network) 30%
Social Media 20%
Handouts 15%
Out of Home 25%
Magazine 10%
Total AUD$ 12 million
Table 3: Allocation of budget for different advertisement media
(Source: As created by author)
7.2 Media scheduling
Advertisement in Metropolitan television:

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Nov Dec Jan Feb Mar Apr
0%
5%
10%
15%
20%
25%
18%
24%
16% 16%
14%
12%
Figure 1: Number of advertisements in Metropolitan television
(Source: As created by the author)
Advertisement in Social media:
Nov Dec Jan Feb Mar Apr
0
2
4
6
8
10
12 10
12
8 8
6 6
3
5
4
2
1
0
1 1 1 1 1
0
Facebook Instagram Youtube
Figure 2: Number of advertisements in Social media platforms
(Source: As created by the author)
Advertisement through handouts:
Nov Dec Jan Feb Mar Apr
0%
5%
10%
15%
20%
25%
30%
20%
30%
20%
10% 10% 10%

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Figure 3: Number of leaflets provided to consumers
(Source: As created by author)
Advertisement through Out-of-home media:
Nov Dec Jan Feb Mar Apr
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
20% 20% 20%
15% 15%
10%
Figure 4: Number of advertisements in out-of-home media
(Source: As created by author)
Advertisement in magazines:
Nov Dec Jan Feb Mar Apr
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
1
2
1 1
0 0
2 2 2
1 1
0
1 1 1 1 1 1
0
1 1 1 1 1
2 2 2
1
0 0
The Australian Women's Weekly Inside Sport Australian Geographic
New Idea That's Life
Figure 5: Number of advertisements through articles in magazines
(Source: As created by the author)

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8. Mandatories
Advertisement through hand-outs and radio can also be effective to reach a larger
customer base. For instance, Virgin Airlines may design leaflets to advertise that they are
offering V Energy Drink to their passengers and provide them to the supermarkets like
Woolworths and others. Customers will receive these leaflets at the time of purchasing
drinks.
Printing attractive leaflets and delivering to customers in supermarkets is one of the
common trends now. Additionally, digital out of home advertisements in railway platforms,
subways, billboard advertising can also be included in this advertisement campaign.
At the time of developing ad content, the company needs to be concerned about the
information especially regarding the contents of V Energy Drink.
Australian Consumer
Law Section 18 prohibits advertisers from misleading customers with wrong information
particularly for food items (Kariyawasam & Wigley, 2017).
The mandatory items in this advertisement campaign are as follows:
a) Catchy headlines for leaflets and videos
b) Powerful image of V Energy Drink bottle
c) Mentioning benefits of the consumer
d) Contact details
e) Use of the Logo clearly
f) Website

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Part B: Justification - Supporting evidence
1. Background1.1. The brand
The brand in the 1990’s found a kind of berries in the Amazon Rainforest which is
known as guarana berries and they are one of the chief constituents of the energy drink as it is
an excellent source of energy. The berries in the green can with the name of the energy drink
was V completed the entire look of the drink (V Energy, 2019).
Figure 6: V Energy drink
(Source: V Energy, 2019)
1.2. Competitors
Red Bull has a consistent market growth dominating the market of energy drink and
depicting up to 4.1% increase in sales in2018 compared to the previous year. The Red Bull
North America INC made sales of $4,685,615,913 in 2018 (marketwatch, 2019).