Market penetration involves with entering a new market with an existing products (Ansoff, 1957). Red Bull can make changes in the products they offer by introducing different flavours and non-caffeine drinks to penetrate the new market. This diversification of products will show their innovative skills to their customers. The company should improve their existing product and use market research, product adaptation analysis, and legal review to seek expansion for the existing products (McDonald, 2007). Although it could be risky to enter a new market with an existing stuff but, the industry can use market researchers to collect information from customers by studying customer buying patterns and using tools like customer survey and focus groups (Bodner, 2011). They can also use reverse engineering by disassembling their major competitor‟s product to analyze its design features by using their R & D …show more content…
Red Bull can also introduce new kinds of drink such as non-caffeine product with more vitamins plus and more flavours. But they have to make sure that these new products will not only be energy drink. In effect, it will help to freshen the brand image as well as creating entry barriers against other competitors (McDonalds, 2007). This strategy will eventually lead to the increase in market share and customer base. Market penetration involves with entering a new market with an existing products (Ansoff, 1957). Red Bull can make changes in the products they offer by introducing different flavours and non-caffeine drinks to penetrate the new market. This diversification of products will show their innovative skills to their customers. The company should improve their existing product and use market research, product adaptation analysis, and legal review to seek expansion for the existing products (McDonald,
Coca-Cola and PepsiCo, for example, are the leading companies in the soft drink sector highly outselling the competition. With an ‘ever-new-launching’ strategy of actually very little differentiating products they try to touch many different target groups – the ‘size’ itself, makes them ‘main-stream’.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The Red Bull registered trademark reserves exclusive rights to the product’s idiosyncratic logo, name, symbol and design, which identify and distinguish it from other products. In this case, Red Bull argued that the competitor was misleading customers into believing that its product was a Red Bull product or was endorsed by Red Bull due to its similar name and packaging, and hence carried the benefits and qualities that Red Bull offers.
For Red Bull, competition in the energy drink industry is minimal. Red Bull competes with brands such as Monster, Rockstar, NOS and Amp. Among these brands, Red bull comes out to be the industry leader, with a market share of 43%. (Time 2015) Following behind the popular brand, is Monster, which is Red Bull’s largest competitor. This brand, who now has a long term partnership with Coca-Cola, (Time 2014) has a 39% market share (Time 2015) Other less popular brands fall in with lesser market share success. Rockstar is another competitive brand that markets to a similar target market. They enjoy only 10% of the market share (Time 2015) Red Bull also faces Nos, a brand owed by Coca-Cola. The product is named after nitrous oxide. NOS’ market share
Red Bull is an energy drink manufactured, distributed, and marketed by Red Bull GmbH, which is a company in Austria. The company was established in 1987 in Austria and hit the global markets in 1996. Red Bull is the most popular energy drink across the world selling an estimated 5.2billion cans in 2012 as reported by Symphony IRI. The company commands a 50% and 46% market share of energy drink industry in Canada and United States respectively. The brand is also marketed in Europe, Asia and has recently ventured the African market with the establishment of a distribution depot in South Africa. Further, the company generated approximately $400 million in sales in America and Canada alone in 2012.
Being the first company to provide a carbonated performance enhancing drink, Red Bull opened up a whole new market in the drinks industry. Through well developed and initiated marketing strategies red bull has become much more than a performance enhancing drink – it has now become a life style. Recognisable to most, the blue and silver can with two red bulls about to clash in front of a yellow sun is now an identity recognised in 169 countries (Red Bull, 2016). As the performance enhancing drinks market expands, Red Bull is still able to boast a high majority of market share due to the solid understanding they have of their consumers needs. With clever use of the marketing mix and the four P’s, Red Bull has been able cement their
Red Bulls website sells a number of products besides there energy drinks. Red Bull sells team and event apparel, accessories, and Red Bull movies. It’s clear that Red Bull could market just about any product as long as that product lines up with the values of their target audience. Red Bull does not sell an energy drink they sell a lifestyle choice. This is what allows them to be so vestal in the market. Red Bull needs to continue to find new ways of reaching and create creative dialogue with its consumers. Red Bull is the industry leader throughout the world. Promotions and well targeted campaigns and sponsorship such as formula 1 helps to expand Red bull brand and increase consumer brand awareness. In Europe and the US. In 2003 it achieved
Being the first company to provide a carbonated performance enhancing drink, Red Bull opened up a whole new market in the drinks industry. Through well developed and initiated marketing strategies red bull has become much more than a performance enhancing drink – it has now become a lifestyle. Recognisable to most, the blue and silver can with two red bulls about to clash in front of a yellow sun is now a brand identity recognised in 169 countries (Red Bull, 2016). As the performance enhancing drinks market expands, Red Bull is still able to boast a high majority of market share due to the solid understanding they have of their consumers needs. With clever use of the marketing mix and the four P’s, Red Bull has been able cement their spot in the market as a premium quality drink that helps fight tiredness, fatigue and lack of energy – something that many of us can relate to. Red Bull is mainly targeting a segment of 18 to 34 year-old males based on their interests – being outdoors, taking risks and having fun.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Market penetration is one of the focus areas of all categories and hence varieties of product categories. Providing end-customers with small sized or single-use packs of their preferred products will result in some more end consumers being able to afford and try out these all products.
We all know Red Bull, whether you choose to drink it or not. Red Bull is the world’s most recognizable and profitable energy drink. At the beginning, the drink was invented and sold in Thailand under the brand name “Krating Daeng”. Its formula began as a popular tonic among cab drivers and other blue collar workers. When I was younger, Krating Daeng was positioned in the market as a working class brand. It was used amongst truck drivers, construction workers and farmers to increase their energy during their long working hours. Then, in 1987, there was a change, and the brand was launched into the international market by Die...
Red Bull Cola is another example of such investment. This product reaches out to different consumers than the users of Red Bull. The focus is the natural sense of the brand, not the wings. In this sense, the promotional strategy has to change accordingly. There have been rumors that Red Bull might also invest in children beverages. Whether this is a good idea or not it’s a different question. What is relevant is that if Red Bull chooses to do so then the brand has to change the promotional strategy to appeal to the target customer. So it is ultimately up to the company to decide upon their future, considering the environmental, political, economical, and technological changes. It might be the case the Red Bull’s goal would be to solidify the current positions as market leader, and preserve the traditional brand image.
However, a sales performance review in the year 2015 of new soft drinks introduced by Coca cola established that in Mount Kenya region, only 15% had succeeded, 55% were performing poorly, 17.5% had failed completely, while another 12.5% exhibited abnormally high artificial growth.(MKBL,2015) Despite the introduction of new products by the Company, its market share in the soft drinks market dropped from a high of 98% in year 2013, to a low of 93% in 2015 in Mount Kenya region, which included Nyahururu town. (Ac Nielsen, 2016). There have been complaints by customers on the products attributes, pricing, distribution and the execution of promotional activities. Still, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town. A study by Migwi (2012) researched on Mount Kenya Bottlers response strategies to changes in external environment. However this research did not study the effects of marketing mix variables of new Coca cola soft drink products on sales performance as it was out of scope. This study therefore, aimed at filling this knowledge gap by examining the effects of marketing mix variables of new Coca cola soft drink products on the company’s sales performance in Nyahururu town. It aimed at providing insights towards the application and integration of the marketing mix variables by marketing managers so as to achieve the envisaged goals. By gaining insights into how sales performance is affected by the marketing mix variables, the company is going to design and integrate the marketing mix better, therefore improving sales performance in terms of market share, growth and ultimately,