The central problem I believe Red Bull is facing is the fact that it reached its maturity phase while many competitors have arisen, taking up some of its market share. Red Bull must act in order to avoid finding itself in decline due to the saturation of the market. What can it do to increase sales and retain its market share? The critical factors to be considered to formulate sound alternative solutions are:
• Brand image and reputation. Red Bull has built a brand reputation it cannot overlook: an anti-brand with mystique. In fact, the “edgy” appeal bearing an “aura of danger” is what helped attract customers and build a solid market base.
• Marketing and advertising. Red Bull’s marketing and advertising campaigns were not traditional,
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A possible solution Red Bull could undertake is increasing the range of its target market. Instead of focusing on the youth, it could consider including adults and young at heart adults. By making them remember their earlier and younger more crazy years through marketing campaigns and techniques similar to the ones they have been using since the start, they can attract that older segment of the population and increase their sales and market share. Red Bull can also derive a new product specific to that segment. This will result in wider product exposure, which will increase sales even more. Acceptability of the new product might induce consumers to alternate between both products, at the expense of competitors’ products. A disadvantage of this solution could be the cost of a new investment in R&D, in new product design and manufacturing, and in a broader campaign large enough to target both segments of the population. Another inconvenient could be the big risk Red Bull would be undertaking by focusing part of its marketing on an older market.
A different alternative Red Bull could choose is increasing its product availability. In fact, it would be profitable to have these products available in more places, such as restaurants and bigger retail stores. Having a more accessible product will increase sales as well as market share, while simultaneously decreasing the sales of competitors. A possible inconvenience is the lack of exclusivity of that product,