Principles of Economics - Red Bull
ECONOMICS
“ASSIGNMENT”
[pic]
INSTRUCTOR
Melisa Changeriha
SUBMITTED BY
Muhammad Ali Shah
(M00418164)
PROGRAM: MBA
MODULE: Economics & Finance
(M4643)
MIDDLESEX UNIVERSITY
[pic]
“Red bull gives you wings”, that is one slogan which is known by everyone. Origins of Red Bull can be witnessed as an Austrian Company working since 1987. In terms of market share, Red Bull is the most popular energy drink in the world (Red Bull, 2012). The creation of Red Bull was inspired by a Thai Company who used to make energy drinks in Thailand. Over the time, the popularity of Red Bull is increasing and approximately 4.5 billion cans are consumed each year in almost 160 countries (Red Bull, 2012).
Since Red Bull is such a large company it would not be useful to determine the marketing strategy because it is believed that Red Bull simply cuts through lifestyles. So for a product like Red Bull the best marketing strategy would be behavioral segmentation. Red Bull is a special drink serving a niche market. Consumers of Red Bull are men and women of all ages, who are sporty and very hard working. Red Bull has a very trendy image and gets sold in a lot of bars and clubs.
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A.
Following is the assumed cost (both fixed and variable cost) of Red Bull for the year end 2011;
Table 1:
|No. of Units |Variable Cost |Fixed Cost |
|Staff Cost |6 |4 |
|Packaging |5 |3 |
|Raw Materials (Aluminum) |8 |5 |
|Distribution Cost |4
“ASSIGNMENT”
[pic]
INSTRUCTOR
Melisa Changeriha
SUBMITTED BY
Muhammad Ali Shah
(M00418164)
PROGRAM: MBA
MODULE: Economics & Finance
(M4643)
MIDDLESEX UNIVERSITY
[pic]
“Red bull gives you wings”, that is one slogan which is known by everyone. Origins of Red Bull can be witnessed as an Austrian Company working since 1987. In terms of market share, Red Bull is the most popular energy drink in the world (Red Bull, 2012). The creation of Red Bull was inspired by a Thai Company who used to make energy drinks in Thailand. Over the time, the popularity of Red Bull is increasing and approximately 4.5 billion cans are consumed each year in almost 160 countries (Red Bull, 2012).
Since Red Bull is such a large company it would not be useful to determine the marketing strategy because it is believed that Red Bull simply cuts through lifestyles. So for a product like Red Bull the best marketing strategy would be behavioral segmentation. Red Bull is a special drink serving a niche market. Consumers of Red Bull are men and women of all ages, who are sporty and very hard working. Red Bull has a very trendy image and gets sold in a lot of bars and clubs.
[pic]
A.
Following is the assumed cost (both fixed and variable cost) of Red Bull for the year end 2011;
Table 1:
|No. of Units |Variable Cost |Fixed Cost |
|Staff Cost |6 |4 |
|Packaging |5 |3 |
|Raw Materials (Aluminum) |8 |5 |
|Distribution Cost |4
References: 1) Red Bull, 2012. Retrieved on Tuesday, November 6, 2012 from http://www.redbull.com/cs/Satellite/en_INT/Red-Bull.com/001242745950125 2) Begg et al, (2008). “Economics”, “McGraw-Hill Higher Education”, Page: 64. 3) Begg et al, (2008). “Economics”, “McGraw-Hill Higher Education”, Pager: 65-67. 4) Begg et al, (2008), “Economics”, “McGraw-Hill Higher Education”, Page: 108-110. 5) Begg et al, (2008), “Economics”, “McGraw-Hill Higher Education”, Page: 140-144. 6) Red Bull, 2012. Retrieved on Thursday, November 1, 2012 from: www.redbull.com 7) Red Bull, 2012. Retrieved on Friday, November 2, 2012 from: http://business.financialpost.com/2012/04/10/alcoa-earnings-rebound-on-better-market-conditions/