Friday, October 7, 2011

CH.15 Retailing

  Red Bull has a great image and is the market leader. Therefore we have two objectives:
  • Maintaining the lead
  • Trying to extend it by creating further consumer needs for Red Bull
·        Product
The product is fine as it is, over 60% of the under 30 year old Germans recognise the brand unassisted. People are happy with the product. Only the image can be strengthened.
·        Price
Also the price should stay the same, a high price is inadmissible to keep the image of a high quality product. Only place and promotion can add further value to the image.
·        Place
In 1998 only 20% of Red Bull’s sales were distributed through retail. As Red Bull is an utility drink, consumers only buy it occasionally. Therefore they do not necessarily buy the drink in supermarkets, but rather at petrol stations or off-licence retailers. As Red Bull has already reached market dominance in the rest of Europe with drastically rising sales figures, the company will have a significant influence on the wholesalers product displaying policy ( PDP). In the near future Red Bull will become a more established and demanded brand.
·        Promotion
Because of the high correlation between marketing expenditure and the sales of Red Bull in the past, the marketing budget should be significant. Red Bull has already increased the budget immensely; the goal is up to 50% of revenues. A high percentage of the budget is spent on sponsoring. In the future we should extend the promotion and ad-activities in order to maintain the leader position; there shall be more Red Bull stands at ski huts giving a way Red Bull mix drinks (RB-Champagne)etc.

 
White Bull
·        Product
White Bull is a soft high quality mix drink (long drink), containing Vodka and Red Bull. The name “white”, because Vodka is crystal clear. There will be a light Bull and a White Bull light with a lesser extent of alcohol. The drink will be presented in a luxury 300ml bottle. The idea of the product is that all the people who use Red Bull as an Energizer at daytime shall have a drink for the night. The motto is:
Cool       goes     hot
Light       goes     night
Red        goes     white.
The image shall be that white bull helps you to fly even longer, so you can survive the night in a club; and you can enjoy it even more intensive.
·        Price
White Bull shall have a luxury image, but the target group is everybody. Whether it is a business woman in the Country Club, who only wants to have one drink and does not want to buy a whole bottle of Vodka, or whether it is a teenager, who just wants two Vodka Red Bull for the night in front of the TV. The price shall be around twice as high as a beer, a little bit higher than a Hooch, but still cheaper than a self-mixed Vodka Red Bull. That means that it shall cost round about $3.50 in the supermarket.

·        Place
“White Bull” will be distributed literally at the same places as “Red Bull”. We are firstly talking about Bars, Pubs and night-clubs, petrol stations ( not in the UK , more likely in Germany i.e.) and small off-licence retailers. Once Red Bull is fully established in supermarkets, White Bull will fill the shelves in the supermarkets as well.
·        Promotion
White Bull will be promoted in a similar kind as Red Bull, through events organised together with Vodka-producers, VIP-Parties, etc.. Also, as by-product to Red Bull on Ski huts.  Definitely at evening events rather than sports events at day time. Advertising will be on TV and fashionable magazines (Time Out; Cosmopolitan). White Bull will be promoted with the slogan: “White Bull gives you horns”. This may cause some controversy, but gives  a lot of extra publicity, as well as it differentiates the product from Red Bull.

 Sports-Clothing
 The company thought about introducing a small selection of very extraordinary sports clothes. Red Bull is sponsoring a lot sports events. Almost always sports who are rare, and only a minority is doing them. First aim is to make some extra money, second is to get extra attention through people wearing the clothes.
·        Product
Products of the Clothing Selection shall be very limited. There shall be a jacket for skiing and snowboarding for instance, a hat for spare time, Shorts for biking, bath suits, etc. The product shall be of high quality where the Red Bull logo is a cult, and shall be bought in addition to the cult objects (e.g. Burton Snowboard pants)
·        Price
Clothing shall be a lot more expensive than no-name clothes, but a bit cheaper than Burton , Tommy Hilfiger, etc. The strategy shall be similar to Kookai.
·        Place
The “Sport Clothing” sector will be distributed very selectively. Therefore they will be sold in only a few, selected stores that target young, sportive and active people who desire functional and durable clothing. They also will be sold in places such as skiing resorts. The comany will try to establish specific “Red Bull” rooms or corners in famous stores.
·        Promotion
The Clothing will mainly be advertised in sports magazines and promoted through sports sponsoring (Formula One, Snowboarding, etc.).

The “Red Bull Energy Bar"
·        Product A City-Bar for business people to take a light lunch and to meet. In the style of an Airport VIP-Lounge, customers have the possibility to plug in their computers (Internet, Email), send and receive faxes and to be financially informed over a large screen showing stock exchange quotes.
Products will be salads, healthy sandwiches and juices, and of course Red Bull
·        Price
The price will be as high as in any other City-Bar and in addition phone line charges. The Bar should reflect a high standard, but it should be affordable very regularly.
·        Place
The “Red Bull Energy Bar” will firstly be established at a few, very selective places. Our primary target market-professionals \ managers-will be perfectly reached in the City. All offices and banks are situated in the city, where professionals take a lunch break to energise. “Red Bull Energy Bar” will firstly be established in selected major European capitals, i.e. London , Paris , Berlin . Once this business is established Red Bull is going to expand it.
·        Promotion
The Red Bull Energy Bar does not need a lot of media advertising, because it will be placed in an area where people pass by very frequently. This gives a great word of mouth attention (ex. Häagen Dazs). There will be opening events attracting the press. Nevertheless, infrequent advertising in specific magazines (Business Week, Time Out Eating & Drinking Guide, etc.) will take place.














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