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 does not guarantee them infinite brand security in today’s changing world. There are a few recommendations and ways of implementing them that should be addressed.
The first suggestion would be that Red Bull should invest more money into research and development, working towards developing more health based products as a result of scientific debate and legal regulations surrounding their brand. Red Bull is currently banned in five countries, limiting their market (Rodgers). Red Bull argues that the ‘danger factor’ of their product is what makes it so appealing to its consumers; however, there is a larger demographic that can be targeted should they introduce more health conscious versions of the drink. We believe that Red Bull should look to increase funding in increments on an annual basis into a research and development fund that would focus specifically on that task. An all-natural Red Bull light could be produced as a counterpart to the taurine-filled Red Bull. Considering the company has significant amounts of profit, investing an initial $50 000 and increasing accordingly from there should allow them to come up with something. This could take place in Australia along with the current production of Red Bull, so that the...
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