Team VIMike DevoneySteve Purdy

Yareli MontenegroNancy Kim

Overview

Mike Devoney

Plan of Action

Evaluations of Alternative

Interrelationships

Mission Statement

Problems and Issues

Short-Term vs. Long-Term Problems

Short-Term

Brand awareness

Oversaturation

Losing “cool” factor

Long-TermMaintain market

share

Highly competitive market

Lack competitive strategy

Mike Devoney

Tactical vs. Strategic Issues

Mike Devoney

Tactical (Macro)

Brand management

Distribution channels

R & D

Strategic (Micro)

Product positioning

Pricing

Budget

Mission Statement

Red Bull Benefits :• Increases performance, concentration, and reaction speed• Stimulates metabolism• Feel more energetic• Improves over-all well being

Mission Statement“Red bull gives energy to people who want to be physically and mentally active and have a zest for life.”

Mike Devoney

Problem Statement

Key Areas of Focus :

• Maintaining market share (industry leader)

• Lack of flavors

• Brand management

Mike Devoney

Mind Map

• Maintain premium image

• Exclusivity• Market "cells"

• Small segments• BUZZ• Early adopters

• New flavors• Green initiative• Healthy • Personal Flight?

R+D

Marketing

Price

Distribution

Steve Purdy

Interrelationships of Issues and Problems

New Flavors

Buzz

PriceImage

“Cells”

Steve Purdy

Evaluation of Alternatives

COST

Low

Cos

t Drin

k

Mor

e Fl

avor

s

Gre

en In

itiati

ve

Steve Purdy

Plan of Action

POA Overview

Yareli Montenegro

Risk Assessment

Performance Evaluation

Financial Analysis

Responsibility Distribution

Implementation timeline

Strategy & Tactics

Actions to be taken

Actions to be Taken

Sell Exclusively

Buzz Marketing

Create Red Bull Flavors and Tea

Invest in R&D

Yareli Montenegro

Actions to be Taken

Invest in

R&D

•Maintain Red Bull’s crisp taste with flavor

•Create Red Bull Tea•Two

flavors Raspberry Tea and Green Tea

Buzz Marketing

•Viral marketing

•Magazine ads

•Billboards

Premium

Product

•“Seeding” Red Bull flavors

•Sell Red Bull Tea exclusively at GNC

Yareli Montenegro

Strategy & Tactics

• Flavors: • Fruit Punch• Lime• Berry• Nutritional item • Open barriers of entry

Yareli Montenegro

Invest in

R&D

•Maintain Red Bull’s crisp taste with flavor

Strategy & Tactics

Invest in

R&D

•Create Red Bull Tea•Two

flavors Raspberry Tea and Green Tea

• Open new market segment

• Recyclable bottle• Socially responsible• Nutritional item• Premium pricing

• Healthy Drink• Non-carbonated• Zero calories• Zero sugar• Lo-carb

• Two Flavors:• Green Tea• Raspberry TeaYareli Montenegro

Yareli Montenegro

Strategy & Tactics

Vote For your Favorite Flavor at Redbull.com

Premium Product

• Seeding Marketing– Introduction of• Red Bull Flavor• Red Bull Tea

– Exclusivity of Red Bull Tea

Yareli Montenegro

Implementation Timeline

Yareli Montenegro

R&D

Red Bull Team

Social Media Buzz Print Ads

Seed New Red Bull

Red Bull Team

Social Media

Print Ads

Select GNC and Vitamin Shoppe

Responsibility Distribution

Yareli Montenegro

Product Champion: Dietrich MateschitzCEOCreated Red Bull cultureHelped sell over 4 billion cans (2009)

Director, Digital Marketing: Kevin DoohanSocial media adsCommercialsAdvertising

Field Event Specialist: Eduardo SmithCreate buzzRed Bull carsEvent sponsorships

Pro Forma Statement ($$$)

Nancy Kim

Low(Pessimistic)

Medium(Most Likely)

High(Optimal)

Revenue

Sales $1,470 $2,000 $2,960

Expenses

Administrative $150 $200 $250

Marketing $300 $400 $500

R&D $200 $300 $400

Total Profit $820 $1,100 $1,810

Financial Projections ($$$) 2005 (Yr 1)

2006 (Yr 2)

2007 (Yr 3)

2008 (Yr 4)

2009 (Yr 5)

Revenue

Sales $2,000 $2,120 $2,248 $2,383 $2,420

Expenses

Administrative $200 $212 $225 $239 $254

Marketing $400 $376 $353 $332 $312

R&D $300 $318 $337 $357 $378

Total Profit $1,100 $1,214 $1,333 $1,455 $1,476

Nancy Kim

Performance Evaluation

Action to be Taken Measure of Effectiveness

Nancy Kim

•Consumer surveys

•Sales numbers

New flavors and tea

•Number of hits

Viral Marketing

•Subscription numbers

Magazine Ads

Risk Analysis

Nancy Kim

Actio

n New FlavorsRed Bull TeaViral MarketingLarge Marketing Budget“Seeding” Red Bull Selling Red Bull Tea Exclusively

Pote

ntial

Ris

k Low salesNegative receptionSmall/No impactLost of investmentSlow introduction of productLoss of exposure

Review

Plan of Action

Evaluations of Alternative

Interrelationships

Mission Statement

Problems and Issues

Nancy Kim

Questions?