Marketing Research for New Product of Red Bull
6 March 2015
Business Research/Analysis - BMDS 6340
Final Group Paper
Spring I, 2015
Table of Contents
Company Background 4
History of Red Bull 4
SWOT analysis of Red Bull 5
Current business market environment and competitor’s analysis 6
Management dilemma against new product 7
Product offering and market strategy 9
Product Offering 9
Market Strategy 9
Research design and analysis 10
Research design and testing 10
Research findings 11
Business Strategy development and implementation 12
Business strategy development 12
Business strategy implementation 13
To keep itself competitive ...view middle of the document...
However, to ascertain the feasibility of the plan and evaluate the potential revenue creation ability of the new product line, the paper intends to perform exclusive market research based on the experiments, services and analysis. Although the proposed plan seems to explore new business opportunity but it eventually opens up itself to new challenges or threats on part of potential failure or disinterest of customers towards such products or high competition from other market players. In context of that it is needed to make extensive research to identify the potential business opportunities to the company, corresponding strengths and weaknesses, and competiveness of the company within the targeted market.
Before proceeding with the assessment or evaluation of the new business opportunity of new product line, it seems to be necessary to firstly make a brief review of the company background. To perform comprehensive review of the organizational background, the below mentioned segment comprises details about the history of Red Bull, its relative strengths and weaknesses and insights of current market environment and outcome of competitor’s analysis.
History of Red Bull
Dietrich Mateschitz founded Red Bull in mid 1980’s after getting inspiration from the functional drinks from the Far East. He created the formula and developed the unique marketing concept for the Red Bull energy drink. Contrasting to popular belief Red Bull actually originated from Thailand, where it was firstly developed by TC Pharmaceuticals in 1981 with purpose to compete against the Japanese Lipovitan. Initially Red Bull was known as Krating Daeng (which literal meaning is Bull Red). Such name reflects symbolic meaning and association with product characteristic, as bull represents strength and power while red represents passion and fire. Also in Asian culture red color is deemed associated with symbolism of good luck. (Wolffmann, 2014)
The initial product was designed to combat with physical and mental fatigue, lack of concentration, temporary increase in metabolism, need of energy and endurance, which makes. Its target market was considered as blue collar workers like farmers, truckers, taxi drivers and constriction workers and its blend of caffeine and taurine keeps the sleep at bay. Later, it experienced the transformation and became the global brand in 1987 with the efforts of Dietrich Mateschitz, who made changes in the taste to make it adaptable to European customer and rebranded it. Due to its adaptive taste change and aggressive branding Red Bull achieved huge success in international market, sponsored almost everything from extreme sports to musical events, to art shows. (Brunel, 2008)
SWOT analysis of Red Bull
An overview of strengths, weaknesses, opportunities and threats of the company can be presented as: (Francois, 2013)
Strengths * Strong leadership, stand and status within the energy drink industry * Strong brand identity and brand...