Red Bull Key Facts…
- Red bull is the biggest selling energy drink in Europe and America.
- Red Bull became linked with such diverse and dangerous activities as downhill ice skating (Red Bull Crashed Ice), big-wave kayaking, long-distance kite-boarding, motocross in Spanish bullrings and the flying of home-made air machines over San Francisco Bay. More ordinary events like mountain-biking down cliffs or gliding across the English Channel are also sponsored. Most events end up using brand-labelled names: Red Bull Mountain Mayhem, Red Bull Rampage, Red Bull Trash and Crash.
- Red Bull's market share has 65% of the energy drink market.
- Last year, Red bull pulled in $1 billion worth of sales!
Source: frobesartciles.com
Market Share & Segments
Market share is the percentage of all the sales within a market that are held by one brand like Red bull. This can be measured by volume, units sold or by the value, revenue generated. Analysing trends in market share is important for Red bull because it shows its position in relation to the market as a whole. It may not be good enough or may be good.
E.g. to have a 5 per cent sales increase if the market is rising at 10 per cent, as market share is being lost. The 5 per cent sales increase may boost profits this year, but if the market becomes highly price competitive as it reaches maturity, Red bull may not be as strong enough to survive.
Market segmentation is the analysis of a market to identify the different types of consumer Red bull has. Every person is unique and has their own likes and dislikes and so it’s easier and more efficient for a company to group customers with similar characteristics and segregate the market into different sections. By matching the consumer categories to the types of product on offer, unfilled market niches may emerge. The potential profitability of filling these gaps can then be assessed. This is good for Red bull as they have a mix of consumers.
The main ways in which a market can be segmented are…
- Demographically, - by age, social class, level of income or gender – this is a good way in which trends can be shown to Red Bull of who is purchasing most. This could also show weaknesses to Red Bull as it gives good feedback
- Psychographically, - by attitudes and tastes – this is influence by personality and lifestyle. Red Bull can then learn which market or social class needs more promotional activities.
- Geographically, - by region - Red Bull do this by deciding the market into regions, this is because it is a very good way in which to see if Red Bull is meeting the wants and needs of customers. Geographic segmentation is also effected by population of the region and income.
Red Bull's market share has 65% of the energy drink market. Although the price of the product itself can be seen to be high to certain customers; Red Bull still dominates the energy drink market due to other, more valuable aspects of the product. The product itself is aimed at a wide target audience ranging from athletes to people at work and so this helps to create a larger customer base. The drink meets the needs and expectations of its target audience and so is highly successful. The size of the product is small and so is hand for sportsmen and people on the go. The advertising of Red Bull energy drinks is also very successful and so reaches a large audience. Advertisement is done through television, radio, the internet and much more. The wide variety of sources used to advertise the product and the product itself contributes to its success and its domination of the energy drinks market.
The market segmentation of Red Bull can be divided into groups such as that of the athlete, the worker and the socially outgoing type of person. The Red Bull energy drink is aimed at all of these types of customers and so meets all of their individual group needs and expectations. Red Bull energy drinks are appreciated by a vide range of people, which can be known as its target market.
There are 3 specific areas of market segmentation; market segments, targeting and positioning.
Market segments: groups of customers with similar features. The aim of the business is to create a product or a service that best suits these segemnts and is made to the best possible level to meet these precise specifications. Through these market segments, Red Bull has been able to achieve their objectives and has managed to develop into new market areas and also keep up-to-date with changing consumer needs and wants in order to provide full customer satisfaction. They have done this through identifying that healthier lifestyles are becoming more popular so the launch of the No Added Sugar range caters this change. Red Bull has also kept injecting new and exciting ideas into their products and so has kept them up to date with modern needs and wants of their consumer. These objectives have been met and so now Red Bull seeks to complete new objectives of remaining market leaders and trying to extend their lead by creating new customer needs and wants.
Targeting: once the different segments of the market have been recognized, the company then has to identify more segment groups that have requirements that the company are best able to meet. This is what is known as marketing and can involve concentrated marketing, mass marketing or undifferentiated marketing. The target market is the type of audience a company decides to aim their product at. This particular audience all have something in common, whether be it age, gender, occupation, lifestyle or hobby. The company then create a product that is best suited to their needs and wants and then go on to market this product to make it appeal to this identified “target market”. The target market of Red Bull can be categorised into:
The athlete – Red Bull energy drinks are made to increase performance, increase concentration and also reaction speed. It provides energy and can increase the performance of athletes and so is designed to appeal highly to this section of people. It can be used by surfers in the summer and snowboarders in the winter. The drink supplies tired minds with lost substances and also reduces harmful substances.
The worker – Red Bull energy drinks are made to increase concentrations, improve vigilance, improve ones emotional status and also stimulate metabolism. These things can be seen to be very useful for those people who work hard, such as the overworked taxi driver, the stressed manager, the exam-anxious student or the pressured journalist.
The socially outgoing - Red Bull energy drinks are made to provide immediate vitamins and energy to exhausted bodies and so are highly useful to the night owl or party animal. They give back the body some of its lost substances and so help to rejuvenate and help those who need energy.
Positioning: This involves developing a market strategy via the marketing mix according to the thoughts and perceptions of the customer about a product relative to other products and brands. Positioning is used by Red Bull as the company has developed a particular perception about the drink since it was first launched. For example, according to my questionnaires, consumers currently perceive Red Bull energy drinks as being effective and tasteful as well as being at an acceptable price.
SWOT Analysis for Red bull
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. Sometimes also called situational analysis, SWOT is a technique for comparing or matching Red bull’s internal strength and weaknesses with the opportunities and threats found in the external environment.
Inside Red bull Outside Red bull
- A strength is a specific asset, skill or competence found within the business which would help achieve its objectives
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A weakness is a specific feature found within the business that could prevent it achieving its objectives.
- An opportunity is any specific feature in the businesses external environment that would enable it to achieve its objectives.
- A threat is any specific feature in the businesses external environment, which would prevent it from achieving its objectives.
AO3
Market research
The purpose of market research is to:
- Identify the market
- Identify size and structure of the market
- Identify competition
Red Bull requires data and statistics for many purposes including…
- Having a permanent record in order to make comparisons with past events.
- Processing the background information to help solve problems.
- Making comparisons with competitors.
- Providing a foundation and guide for decision making e.g. on the appropriate volume of sales in targeted sections of the market.
- Planning the future, as the more information a company possesses the easier it is for it to achieve its objectives.
- For use as a management tool to control its budget, e.g. comparing the difference between planned and actual promotion expenditure
- Making forecasts and estimates.
- Assisting quality control. Statistical techniques can provide a powerful tool for controlling and monitoring production quality. This will help customer satisfaction and reduce complaints
Primary (Field Research)
Primary research is the research, which is collected for the first time to collect first-hand and for actual purpose of future consumers of a product, Red Bull. Data collected in the field, not from books and means communicating directly with consumers, in the streets, over the telephone or through the post by the means of interviews and questionnaires.
Either data can be obtained by the company’s own personal research, or it could be research carried out by a specialist market researcher, on behalf of the business.
Primary Research Methods…
- Interviews which can be structured interviews with closed questions, structured interviews with open questions or informal.
- Panels are set up on a semi permanent basis. The members are chosen so that they represent the views of the targeted market i.e. they suppose to be a cross section.
- Focus groups, a group of up to ten people, supposedly ordinary or representative consumers are brought together by a market research company in an informal environment about a general subject such as chocolate or tinned fruit.
- Questionnaires are a set of questions that are given to people in order to collect statistical information, questionnaires are appropriate for the use of almost anywhere where there are people. They are useful too gather information or to collect specific data required.
- Sampling is a way of gathering information from a small part of the total number of individuals or items that could be investigated. A sample should be large as possible or practicable, because a bigger sample will give results that are more accurate.
The advantages of Primary research…
- You have researched it yourself so therefore you know how reliable it is.
- You can research what specifically what you need.
The disadvantages of primary research are…
- It is time consuming.
- It can cost a lot of money.
Red bull spends large amounts of money to gather research about what satisfies their customers. They use this method because they specifically ask a range of consumers. Using primary research means that Red Bull finds out exactly what they want to know and they then know how reliable it is because they have collected the data themselves, unlike secondary research.
Questionnaire
I decided to do some primary research of my own to find out what influences consumer choice in favour of Red Bull. This is the questionnaire I drew up.
Questionnaire
- Gender:
- Do you drink the energy drink ‘red bull’?
- Do you enjoy the taste of ‘red bull’?
- Yes
- No, please specify…………………………
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How does ‘red bull’ appeal to you?
- Price
- Taste/Effect
- Appearance
- Other, please specify……………………………………
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Do you drink any other sort of energy drink?
- Yes, please specify………………………
- No
- Do you think ‘red bull’ is satisfactory at the given price?
- Have you ever seen ‘red bull’ being advertised, and if so where?
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On television
- In magazines
- Bus stops
- Other, please specify…………………………………
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What do you think of the advertising for ‘red bull’?
- Good
- Acceptable
- Could be better, How?...................................................
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How often do you drink ‘red bull’?
- Everyday
- Few times a week
- Odd Occasions
- Other, please specify…………………………………………………
Results from Questionnaires
Answers to my questionnaire
This pie chart shows the results I got from my questionnaire asking what gender the interviewee is. There were 24 females and 26 males, this shows I interviewed a cross section of the public.
The graph shows that 62% of the public I interviewed drank red bull within the last month, leavening 38% that haven’t. I also discovered that just under 50% of the 62% that said yes they have drank red bull within the last month were male.
Two thirds of the interviewees said they enjoyed the taste of red bull compared the other 3rd which said it could be better.
As red bull is none as a mind & body simulator it wasn’t a surprise to see that over half the interviewees said that the taste/effect was the main appeal, again the majority of that opted for taste/effect were male. This was followed by appearance with 20%, most saying it was easy to fit into a bag or pocket as it has a unique slim styled can. Just over 10% said that price was the reason of purchase. The final 10% chose to tick other and left their own answer, 4 out of 5 said they used it to mix alcohol with.
This was a good question from which I got good feedback from, 23 people said they drank another energy drink. From this I learnt the red bull does have competition in this market but they still hold the majority market share, there were 3 different types of energy drink that were stated by interviewees:
Lucazade, Boost energy drink and red rooster. 27 interviewees said they don’t drink any other sort of energy drink.
From this question I discovered that red bull do have a weakness and this being price! At £1.15 a can of 500ml 68% said that the price was dear but a good 40% said they continue to purchase. Surprisingly 32% said they don’t think the price is high, this again being male interviewees.
Red bull has had very successful advertising campaigns, which I think is down to “red bull gives you wiings” slogan. More than 3 quarters said they had seen adverts on T.V; this was followed by bus top boards with jus less than 15%. 8% said they had seen them in magazines and 2% said they spotted them sum where else.
This question is connected to the previous one as I wanted to pin point weaknesses for red bull. This once again indicated that advertising is a very strong area for red bull with more than half (58%) saying that adverts were good this was followed by just more than a quarter saying that red bull advertising is acceptable. Leaving the last 14% saying it could be better.
This bar chart shows the results I got from my questionnaire asking how often the interviewee drank red bull. Over a third of those questioned (39%) said they drank this on the odd occasion, when asked why most replies were alcohol mixing. A further 24% of those questioned drank red bull a few times a week, the majority of these saying effect was the appeal. This was followed by just under 10% saying that they drank it everyday; these interviewees were male and said they also went gym regularly. 14% said they jus drank it here and there but it wasn’t a priority of theirs.
The Pros and Cons of Using a Questionnaire…
For my research, I chose to carry out closed questioned, questionnaires because I thought that this was a good way to get quantitative data to find out what the targeted audiences of Red bull think. It is a quick and simple way, which is the easiest to analyse. Which also has the disadvantage of being very brief because there are a limited amount of options which the respondent tick due to the limited choices available on the questionnaire therefore the response is limited and there is extra information.
This is opposed to the alternative method of carrying out informal questionnaires where the success of the information gathered normally depends on the skill of the interviewer. This is because the questionnaire is informal, more like a conversation about a certain thing or issue which in this case is Red bull. Using informal questionnaires means asking a few questions and then the interviewer asking the next questions based on the answers to the previous questions asked. This method may be more difficult to analyse, but it is more accurate because there is more than enough information gathered by using this method of research.
Secondary (Desk Research)
Desk research also known as secondary information involves looking at published material – reference books, statistics, and marketing reports by specialist companies. This also the marketing department to find out about the trends relating to consumers’ income and expenditure. One source of statistics information is the government statistics service, which publishes through the stationary office.
When using secondary information the following things should be considered…
- Which organisation collected the information?
- Is the source reliable?
- For what purpose was the information collected.
- When were the figures collected?
- Do you include everything, or exclude anything?
- What do the definitions mean?
- Is the data accurate?
- Is the organisation politically neutral?
The advantages of secondary research…
- This can be done at a desk.
- Easy to carry out.
- Relatively cheap, convenient, and quick to carry out with a fast response.
And the disadvantages are…
- May not be reliable.
- May not be specific to what you require.
- Can be biased.
- May be out of date
Using Secondary Information for Red bull…
While I was researching Red bull, I visited its own website, which is a source of secondary information which I found were useful because it was valid, it’s updated on a regular basis and is reliable because it is information put up by Red bull themselves although it could be biased. I also believe that the secondary information I received was valid and reliable because the information I found on the web-site was the same as the information I got in an e-mail which I received.
Sources of information
Red bull has desk access to vast amounts of information. Much of the general information is free. Within every business, every department at Red bull and section will have its own records, which are available sources of marketing management information. Information will be needed by the marketing department to analyse past trends and make future forecasts of Red bull.
Sources I used include:
, the official website of Red Bull. This is I found out, location, history, ingredients, ownership, market strategies.
, relates to facts and figures, this is where I found market shares, soft/energy drink graphs.
, relates to facts, figures and graphs, this is where I found out how well they have done over the past 5 years
, relates to case studies, how Red Bull employed the marketing strategy
Library – soft dink and energy drink reports, income expenditure. This is where I found graphs and figures in relation to Red Bull
AO4
The marketing mix
Red bull must produce the right product at the right price and in the right place, and must let the consumer know that it is available. This is known as the marketing mix.
In order to achieve its marketing objectives, as well as the overall objectives of Red bull, Red bull must consider its Marketing mix. The marketing m ix refers to those elements of a firms marketing strategy which are designed to meet the needs if its customers. There are four parts of the marketing mix – price, product, place and promotion.
These are known as the four ‘Ps’. To meet consumers’ needs, businesses must produce the right product, at the right price, make it available at the right place, and let customers know through promotion. I will be referring back to my questionnaire results in order to explain the marketing mix.
Product – I think that this is the most vital part of a business, and will decide weather a business will survive or fail. The product must meet customer’s needs and please their wants in order to be successful and establish itself within the market.
Red Bull is purchased by loyal consumers on a regular basis; there could be a number of motives behind the purchase e.g. whether or not the product is appealing because of the stimulation or because of taste/style of the product. Most people who drink Red Bull do because of the taste/effect; therefore Red Bull is targeted at the average person.
The most significant thing about the product is its appearance, this means the design of the packaging, which colours would be used, the size of the packaging. These are not easy to decide and would require a lot or hard work and decision making in order for Red Bull to be a success and develop a strong reputation.
Red Bull invests heavily in advertisement in order to make Red Bull a success. This means they recognise that their product has the potential to do well. In order for the product to be launched it has to go through many tests back in the Red Bull headquarters. Before the product is launched it would go through 3 main stages:
Visibility – tests on how the packaging looks and who will it appeal to, it is then given out in local shops for free in order to get feed back.
Sizing – this is the process of measuring size and which one is right, again this could take up to months on deciding as it not a easy factor for Red Bull as they believe to be different.
Quality – this is a major part of Red Bull as they believe in quality for money. As they would not want something tatty that would not sell at a high price.
The Product Life Cycle…
If Red bull is aiming to achieve its marketing objectives, they must be aware of the Product Life Cycle. The product life cycle shows the different stages that Red bull passes through and the sales that can be expected at each stage. Most products pass through six stages…
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Development – being designed and investigated
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Introduction – new on the market and sales are often slow
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Growth – consumers aware of the product and sales start to grow rapidly
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Maturity – product established with a stable market share
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Saturation – as more businesses enter the market it will become saturated
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Decline – sales will eventually fall for most products
Development Introduction Growth Maturity Saturation Decline
Life of the Product
Red Bull develops their energy drinks by first investigating new consumer wants and needs and by looking for gaps in the market. Thorough research and investigation is done and this research is then analysed. A design for a new product is produced by applying the analysis of the research on to factors that affect the business, for example cost and production.
The introduction stage of Red Bull energy drinks is when the product is first introduced onto the market and is relatively unknown and so sales can be slow. The growth of Red Bull energy drinks then occurs by massive advertisements including that of television commercials, radio, billboards, flyers and free samples at large events or in shopping centres. As the popularity of Red Bull energy drinks grows, the sales also increase and this leads to maturity, as the product is established with a stable market share.
Saturation can occur as a new product enter the market but Red Bull aim to combat this through continual advertisements and offers that attempt to keep the popularity of their energy drink at a high. However there is usually a decline after a certain time period, although not always a rapid decline, that eventually leads to the falling of sales.
At the moment Red Bull is at the maturity stage of its life cycle. With its domination of market shares and its increased and upheld popularity, the product has established a stable market share and is at its highest peak of sales and popularity. Red Bull has become differentiated in the form of new products, sizes and sugar free variants and so has differentiated itself from weaker brands. Red Bull has successfully passed its ‘development’, ‘introduction’ and ‘growth’ stages and has established itself in the market with a good market share (65%). The next stage that Red Bull is perceived to go into is the ‘saturation point’ where some brands may drop out of the market. It may then reach the ‘decline’ stage and there may be a point where the product is making no profit. How ever this can be combated with product extensions, injections of new innovative ideas and variations or improvements of the original product to extend Red Bulls product life in the ‘maturity’ stage
Price - price is an important part of the marketing mix this is because it will outline how much money you business will make. This could be considered as economic factors as the price set would be were demand would meet supply. This is not the only way of deciding how to price your product as there are a number of other ways which are shown on the diagram.
Red Bull implies cost based pricing; this is when you take into account all the relevant costs of production when manufacturing the product. The business would then decide when taken all costs into account of how much to price the product. This is worked out by labour unit costs. They have this as costs are easy to calculate, it is easier to increase selling price if factors of production become higher. 68% of people who answered my questionnaire said the price was too high. This means that customers are not totally satisfied with Red Bull.
This is an effective way of Red Bull pricing its energy drink although they many not necessarily lead to maximum profit. Although the product is already at a high price I don’t think they intend to drop it due to quality reasons therefore high price of the product is warranted.
Penetration Pricing
This method of pricing is often used by businesses when launching a new product or service in the market. It could also be used to promote a new product or complimentary product in the market.
Skimming
This pricing policy is normally used by businesses that are launching a new, original product on the market where they may face little competition and demand is likely to be inelastic.
Competition based pricing
This pricing policy is normally applied in highly competitive market structures where the business may face a lot of tough competition from other firms.
These could all be used when pricing a product but Red Bull chose to cover costs before anything else as advertisement is expensive.
Promotion - Promotion can act as a system in which the organiser sends a message through appropriate channels of media (e.g. radio, TV. newspaper) in communication processes in which the receiver, i.e. the customer, encodes the message after they have received it.
Advertisement
Quality adverting is key to the success of a business and it s product. For a product to be known to the public and to become popular, strong adverting campaigns are required. Red Bull advertises their product in many ways, including through television, radio, billboards, posters, the internet and also through sponsoring of events.
Television and radio campaigns for Red Bull have become very popular and highly contributed to the success of the energy drink. Through television and radio the product has reach the eyes and ears of the vast majority of the current consumers of Red Bull. Slogans such as “Red Bull gives you wiiings” has been created and stuck in the minds of the public. Without television and radio Red Bull would have not reached its target audience and would have bin very unsuccessful. Although it can be said that the costs of such advertising is highly expensive, the amount of business generated makes up for any costs have incurred. Advertisements through television and radio are definitely the important and vital advertisement available to Red Bull to reach the majority of people and its target audience.
Large billboards and posters are another way that Red Bull has advertised its product. Through placing its billboards and posters in the exposed and opportunistic spots, Red Bull has managed to reach consumers that television and radio may have not reached. These types of advertisement are also relatively cheaper to chose mentioned above, although they may not have as much impact.
The internet is the most modern and up to date way of reaching the public. Advertisements on the official Red Bull website, certain other websites and pop ups have helped to increase public awareness of the product.
Another way of advertising is through sponsoring of large events. Red Bull has part-sponsored athletic events as well as extreme sporting events, as so their logo and slogans have bin seen by many people, especially of those that are of the target audience such as athletes and sportsmen. This type of advertisement may be expensive but it helps the product reach the eyes of the target audience.
To conclude, Red Bull has created various strong strategies for advertising its product. All the types of advertising are highly successful and definitely add to the success to the product itself. Without adverting the product would be relatively unknown and so it would be unpopular. Advertising is a key aspect of the success of the Red Bull energy drink.
Place - The physical distribution is an important part in the place process and plays a vital part in letting the good to the correct location at the correct time to fully meet customer needs in an efficient manner to make sufficient profits.
The head quarters which are based in Austria are at the centre of the globe which makes is easier for distribution worldwide. Distribution can also be used to the firm’s competitive advantage in order to benefit the marketing mix, like for example, the firm offering a quick and efficient service to all its customers. Weaknesses in the distribution area can be made up for with other aspects of the marketing mix. Companies can meet customer needs through a variety of distribution agencies such as independent retailers, multiple chains, supermarkets, hypermarkets, department stores, discount stores, co-operative retail societies, catalogue shipping and home shopping.
AO3
New marketing mix
Aims and objectives….
Launch differentiated products of Red bull - carry out market research about Red Bull and it market position. They could then expand on this by launching new flavours of Red Bull or a 5000ml bottle.
Become more efficient and lower price – this could be done by economies of scale as Red Bull could produce by mass production.
Gain 5% market share with new product over the 1st year – this would be a good challenge for Red Bull, and would tell them whether the product will be successful in the future.
Increase sales by 5% in LEDC’s – this could mean an increase in advertisement
Red Bull in regards to the Ansoff’s Matrix…
Red bull operates in or intends to move into markets where business growth is both desirable and possible. Businesses operating in such markets will tend to emphasise growth in their corporate and marketing objectives. Growth may be in the form of increased sales revenue or turnover, greater profits increased capital or more land and employees. There is a range of marketing strategies that growth orientated businesses can adopt. Growth orientated marketing strategies are not suited to all businesses, however. In shrinking markets, e.g. a business may wish to maintain previous sales levels or just survive rather aiming for growth. The Ansoff’s Matrix is useful tool for business aiming for growth. The Ansoff Matrix is shown below…
Market Penetration – As suggested by the Ansoff’s Matrix, the purpose of market penetration is to achieve growth in existing markets with existing products. There are number of ways in which businesses can achieve this, increasing the brand loyalty, encouraging consumer to use the product more regularly and encouraging using more of the product and having suggestive adverts. Red Bull to an extent can influence who buys what in what area, this could mean that the areas with little consumers of Red Bull could be targeted or maybe the area with the biggest population this would increase customer awareness.
Product Development – This is concerned with marketing new or modified products in existing markets. This is where the volume capacity of Red Bull could come in as Red Bull only sell in capacity of 150ml this could be extended to 400/500ml, but this could end up a bit risky if price is kept at same level it could end up at £2.68 for 400ml and £3.07 for 500ml. leaving the question who would pay that much!
Market Development – This involves the marketing of existing products in new markets possible to the elderly or youth. Red Bull would need to do research into other markets which competitors are targeting such as youth as this would mean a rise in market share and profits.
Diversification – This occurs when new products are developed for new markets. Diversification allows a business to move away from reliance upon existing markets and products. This allows a business to spread risk and increase safety. If one product faces difficulty or fails, a successful product in another market may prevent the business overall facing problems. Red Bull would need to come up with new flavours as time goes past. As I know that 1 competitor Boost has already introduced a cranberry stimulation drink. This could be a back up of when Red Bull goes into decline.
Product – as Red Bull is already in maturity it is very important that they stretch the maturity stage as far as possible in order to make profit. In order to do this his Red Bull may invest in promotional activities. They may also bring out new products in order to maintain its market position and help keep competition at bay.
As I intend to launch a new product range of Red Bull, I will need to do research into what flavours and what are consumer tastes. This could be done in the long term as it will take time to do research as well as developing these ideas. This would then increase the awareness to consumers and will help Red Bull increase it reputation. This will help strengthen Red Bulls relations to customers by giving them the opportunity to trying the new drink.
In order to continue the success of Red Bull I will not change everything, I will leave packaging as I think it has become very successful, and the stimulation the drink provides which is the main factor. I hope to reach all new aims and objective I have devised.
Price – in the short term I tend to reduce the cost of Red Bull by making the business more efficient. This would be done by mass producing Red Bull so it would gain from cheaper supplies, they could then become very efficient and the labour costs per unit would fall. They would then be able to reduce costs
In the long run I will set out to reduce the costs of the multi packs which come at 4 for £4 I will then need to take up a different type of pricing for products as it will be new into the market such as skimming pricing.
Promotion – I will want Red Bull to invest more in advertisement in poorer countries as I think there is a lot for Red Bull to gain. This could be done in the cheapest way of posters and billboards as it would be most effective. Red Bull do already imply strong advertisement campaigns in Europe and the USA and I am not willing to change this as they have bin so successful.
Place – Red Bull could cut down pollution but this is not one of my main aims. As they distribute Red Bull to many different countries it is hard to cut down, unless they were to set up a factory in the country. This would be more expensive for the business as they would thn has to recruit and select highly motivated employees in order to be efficient. Not only that but they would also have to pay for the factory location and machinery which is not cheap.
