Red Bull Product/Market Expansion Grid

The product/market expansion grid allows a business, such as Red Bull, to employ a range of tactics that can improve on the current conditions of the market and product or expand into a new market by creating new, improved products. Red Bull might consider market penetration; this could involve a new pricing system for their products. Another method to take into consideration is market development is market development; this will involve advertising their product in a way which encourages people outside of the market to purchase the products sold by Red Bull. Product development involves making improvements and adding similar products, with a different taste or size, and advertising it to the current market. The final strategy available to …show more content…
Each years millions of dollars’ worth of energy drinks are sold throughout the world, this causes the market be extremely competitive and for Red Bull to remain the top selling energy drink in the world they can consider a number of different techniques involved in the product/market expansion grid. The product/market expansion grid consists of four strategies, market penetration, market development, product development and diversification, these cover a range of different methods which can be used to expand the product range of a business or the …show more content…
Market penetration, market development, product development and diversification all comes with different advantages and disadvantages, and while some of these methods have the potential to be successful for the Red Bull company, others are less likely to succeed. Market penetration would include lowering the prices of the products, while market development involves making the product desirable to a market that they previously haven’t reached out to. Product development refers to adding new products to the line, such as flavors, that are similar to the original but offer more variety to the market. Diversification refers to developing a completely new product that would be desirable to a market who typically would no buy the products that Red Bull already produces. Market and product development are likely to be the most successful option for Red Bull as they carry less risk with the, while diversification is likely to be unsuccessful as it would require Red Bull to risk expanding into a market that has not expressed interest in