Red Bull Case

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Red Bull is a very successful company in the energy-drink category but is struggling to maintain their leadership in a maturing category. If they want to continue to be successful and improve their market share they need to increase their sales present customers, find new customers for their present product, remarket their product, and analyze the current situation. Currently, Red Bull is the leader in the energy drink category. However, with increased competition, they should use market penetration to increase their sales and market development to increase their market share (Exhibit 1.) Red Bull is a popular drink at night life locations, such as bars and clubs. While people are at these bars consuming alcoholic beverages, they may run low on energy. Red Bull can capture additional sales if they advertise their product as a mixer for people that are low on energy but still want to drink. Since Red Bull is in a maturing category, their profits are not able to keep pace with sales due to competition such as Rockstar and Monster (Exhibit 2.) Red Bull will need to remarket their product by expanding their outlays on advertising and sales promotions. They should use incentives such as coupons or buy one get one discounts to induce buyers to switch brands. One of Red Bull’s problems is decreasing market share due to competitive forces (Exhibit 3.) To correct this they need to overcome existing rivalry within the energy drink market so they can maintain their customer loyalty, while attracting new customers from competition. Currently Red Bull charges up to four times the amount of the average soft drink price. They should improve their price competition strategy by either lower their price or keep the same price and increase the size of the can. For Red Bull to reach new consumers, retain their currents consumers, and attract old consumers, they need to make their product more readily available, offer incentives,...
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