Red Bull CaseProduct Development Management & Life

Cycle

Launch, they are the no. 1 energy drink that captures 70-90% share of energy drink market.

This is a proccess that needed a lot of product development plan, because they must stand the position of the product and enter new markets to developing.

Red Bull's product development process.

1. Concept

2. Research

3. Analysis

4. Develop

5.Launch

What process would you recommend as it considers developing new products?

Maturity.• Those products that survive the earlier

stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. Promotion becomes more widespread and use a greater variety of media.

• Maturity, with 70-90% share to energy drink market.

• The impact is they automatically said that energy drink market has a lot of potential and also attract new competitor to join in.

2. product life cycle - What does Red bull position imply for category competitors?

• Energy drinks is Functional Product, they have their own market.

• They still can develop their market with promotion strategies.

• Because of world that developing everyday and cope the competitors, Red Bull must concern about the PLC and doing NPD.

3. Do you believe there is a long-term market for functional foods and beverages like energy drinks? Why or why not?

Market Penetration Strategy1. Encourage current customers to buy more. 2. Attract competitor's customers. 3. Convince non-users to use the product.

Market-Development Strategy4. Expand distribution channels.5. Sell in new locations. 6. Identify the potential users.

4. Product-Market Expansion Grid

Diversification1. Concentric Diversification Strategy:

Develop new products with the earlier technology for new segments

2. Conglomerate Diversification Strategy: Develop new products for new markets.

3. Horizontal Diversification Strategy: Develop new products with new technology for old customers.

Product-Development Strategy1. Develop new features. 2. Develop different quality

levels. 3. Improve the technology.

recommend specific ideas for Red Bull in the areas of market penetration, product development, and market development.Market Penetration Strategy.1. Create sales promotion in short term in

event marketing2. Create energy drink workshop or tester

Product-Development Strategy1. Develop new packaging, 2. Develop feature in

packaging e.g : augmented reality, manufacturing process

Market-Development StrategySell in new country

Terimakasih

@2010

Ekak Hardianto