Enhacing the corporate image of Red Bull In general and introduce the new variation Red Bull Cola to the market. Increasing awareness of the new product
Stimulating the sales
Leveraging corporate reputation
Maintaining the domination of the market share of energy drinks market. Fitting in the Spanish market by adapting to the philosophy of energy drinks. Market Entry Mode
The choice of entry mode:
The market entry of Red Bull was rooted firmly in its brand identity in the Spanish market. Red bull Cola has big chances to meet the needs of Spaniards. Red Bull Company should start launching the new flavor cola in the Spanish market given the fact that Spain is a high income country and energy drink products have such a high demand and that the market has very low entry barriers due to its location in the EU. Marketing mix plan and strategy:
Price Price of Red Bull is the same for all versions (Normal, Light, Sugarfree) which already exist in the Spanish market. Therefore, Red Bull Cola should keep the same price as the other variations. The price of Red Bull is usually 400% more expensive than the imitator brands because it is the most famous energy drink. The Company can permit to charge a very high profit margin, because a high price is associated with the perception of quality. The profit margin is as high as consumers are willing to pay for the quality and lifestyle Red Bull offers. That makes it about 4 times as much as the production costs, versus a 0.5 margin for most imitator brands. A single can costs about €1.50 in supermarkets, usually a bit more in corner shops and clubs. Cans are cheaper if you buy them in bulk, both 4,6, and 24 packs offer a % discount over buying the same amount of single cans. Price difference in countries is generally mostly due to difference in Taxes. Although...