RED BULL MY PART
3.1 Product strategies with the regard to BCG-Model and the Ansoff-Matrix
This section of the report deals with the product strategy and aims to assess the application of the BCG-Model and the Ansoff-Matrix to the Red Bull Company in the provided case study. In the first part of the section we will briefly touch upon the product strategy to highlight its critical importance as it is a key marketing decision area, being one of the elements of the marketing mix. Another significant matter that will be covered in this section is the product portfolio management which gives understanding of how to assess the company’s current product portfolio and to make decisions on the optimal strategy to achieve the best market share and the greater customer loyalty.
In the second part of the section the theoretic background will be applied to the Red Bull
Company case.
From the very beginning, it is necessary to define the term of the product strategy. Marian
B.Wood, a marketing practitioner and the author of the marketing planning books, suggests that “the product strategy covers the development and management of the company’s tangible goods and intangible services to meet the needs of customers in the targeted markets”1. While developing a product strategy, it is essential to consider the value that a product provides to both – the customer and the company. From the customer perspective, three levels of the product, as identified by Philip Kotler, should be highlighted:
1.
2.
Core product – the problem that a product is to solve for the customer;
Actual product – the benefits that a product is to provide in terms of:
• quality
• featuresa
• design
• packaging and labeling
• brand
3. Augmented product – the additional benefits that are not a part of the product, such as for example:
• guaranty
• repairs
• after-sale services;2
In order to assess the current standing of the product and to make strategic decisions on the product management, the company should curry out a product
This section of the report deals with the product strategy and aims to assess the application of the BCG-Model and the Ansoff-Matrix to the Red Bull Company in the provided case study. In the first part of the section we will briefly touch upon the product strategy to highlight its critical importance as it is a key marketing decision area, being one of the elements of the marketing mix. Another significant matter that will be covered in this section is the product portfolio management which gives understanding of how to assess the company’s current product portfolio and to make decisions on the optimal strategy to achieve the best market share and the greater customer loyalty.
In the second part of the section the theoretic background will be applied to the Red Bull
Company case.
From the very beginning, it is necessary to define the term of the product strategy. Marian
B.Wood, a marketing practitioner and the author of the marketing planning books, suggests that “the product strategy covers the development and management of the company’s tangible goods and intangible services to meet the needs of customers in the targeted markets”1. While developing a product strategy, it is essential to consider the value that a product provides to both – the customer and the company. From the customer perspective, three levels of the product, as identified by Philip Kotler, should be highlighted:
1.
2.
Core product – the problem that a product is to solve for the customer;
Actual product – the benefits that a product is to provide in terms of:
• quality
• featuresa
• design
• packaging and labeling
• brand
3. Augmented product – the additional benefits that are not a part of the product, such as for example:
• guaranty
• repairs
• after-sale services;2
In order to assess the current standing of the product and to make strategic decisions on the product management, the company should curry out a product