Redbull Implementation Strategy Essay

998 Words Sep 29th, 2010 4 Pages
Recommendations and Implementation: Red Bull With a company that has 70 to 90 percent of the market share in over 100 countries worldwide, the most important recommendations boil down to sustainability (Gschwandtner). Red Bull has done most things right in the business world – they have minimized costs by using viral marketing, maximized image to gain huge market shares, and most importantly have stuck to core competencies. Emmy Cortes, the Corporate Communications Manager for Red Bull North America was quoted as saying, “we are one of the few companies in the world that can stay focused on one product, so we do what we do best” (Rodgers). However, the fact that Red Bull is doing so well does not eliminate room for growth and definitely …show more content…
We would suggest that they introduce a distinct night time beverage to further solidify their brand image (similar to Rockstar Vodka) to offer their consumers alternatives. Red Bull is posing the threat of becoming over-reliant on a single product, and as a result this introduction of a product will not only induce a more mature clientele but will allow them to capitalize on the current trends since Red Bull is already being mixed as an alcoholic beverage. They advertise this product similar to the advertising of Red Bull, but use nightclub events instead of extreme sports. Although the initial cost of this would be expensive (introducing a new product, new machinery, etc.), we believe the payoff would be large because it would stick to Red Bull’s idea of giving energy, but switch it from work to play. Thirdly, we suggest that Red Bull make an effort to lower the price slightly. We are by no means recommending that Red Bull go from product to cost differentiation because the higher cost of the drink gives it a premium appearance. In order to implement a lower price, we suggest that since Red Bull is produced only in Australia, that they need to produce more in order to lower the price while maintaining profit (based on the principle of economies of scale). The cost to increase production would most likely not be too unreasonable because it is plant expansion as opposed to creating a new plant. Also,

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