Dilatable Red Bull Product
Company mission and its relation to the new product Red bull is a product produced by a company originating from Australia and it is an energy drink product, whose idea was obtained the production of a Thai drink which was mainly consumed by cab drivers and other blue collar jobs workers. The founder dropped some of the nutrients that were used to make the Thai drink and also added others to come up with a completely different product. The product mainly targeted people who need to stay focused all the times despite the tiresome tasks they may be engaging in (Teigeler & Hahne, 2014). This includes professionals such as lecturers who hold long sessions teaching, drivers who take long distances and are still expected to remain attentive to avoid making accidents, athletes who ran long distances and students who take long hours in class and are expected to concentrate.
The mission of the organization is to give users wings, wings are aimed at boosting the individual to reach their destination, this is the same effect that red bull energy drink has (Davcik & Sharma, 2015). To enhance the loyalty of the consumers the company can make some reusable plastic bottles that can be used to carry the drink (Asiedu, 2016). Some customers will not be comfortable to carry the product using just any kind of a container they want to be established with Red Bull Company it would, therefore, be good if reusable containers were provided to put the diluted drink when moving out of the house. Marketing of the product internally and externally. Marketing is one of the activities that greatly help in gaining a market share if the company does not market its products the consumers may never get to learn about the existence of the product.
A company, therefore, have to do an intensified marketing to create consumers awareness especially when they are launching a new product. This will create awareness among the athletes that the drink is now available in a dilatable form. The company can also use the social media platform to reach the global market. The social media is very cheap means of marketing that can help the company to reach a large number of buyers, it is almost costless because the company only need to post the new products on its pages and the ensure that they provide immediate feedback to the consumer's questions and comments (Davcik & Sharma, 2015). This will help them reach a lot of people all over the world, at almost no cost and within a short period and also be able to acquire the consumers’ feedback.
Before undertaking a large scale production of this product they can obtain the views of the consumers through the social this will help them avoid making a mistake of producing a large number of the product and then lacking market which would lead to losses. Behavioral and or lifestyle demographic of the targeted consumer This product will be made focusing to serve the need of a target market that includes professionals, athletes, drivers and students at more economical way. These people are involved in the tiresome tasks more frequently and routinely, they, therefore, need this energy drinks almost every day to help rejuvenate them and enable them to concentrate (Breda et al, 2014). Sometimes due to the purchasing power especially for students, it may not be possible to make a purchase of the product whenever the need to take it arises, providing a dilatable drink that they can consume in more than one day will, therefore, be more economical to them.
This product will also be targeting the entire society and especially the low-income earners (Asiedu, 2016). Most of this people are also busy people who may not have the time to make stopovers in canteens and shops to purchase the product. This is a product that is simply sold over the counter in shops and canteens. The supply chain is complicated because it involves its supply from the manufacturing company from the wholesalers to the retailers where the consumers can easily obtain them. The company should always ensure that the product is always available in the shops and never lacks because consistency is important. If a consumer gets used to a product and then lack it they are highly likely to lose loyalty in it.
They will result to consumption of alternative substitutes. Original product Original product The new dilatable product Fixed price $30 $30 Variable cost $70 $110 Total cost $100 $140 Profit margin (20%) $20 $28 Selling price $120 $168 The price of the new product is slightly higher than that of the original product due to the higher amount of materials, hours and labor used. The consumers are highly likely to purchase the product at the price charged as the product will serve them in a more economical way hence they are highly to find a value for their money in the product. Pricing strategy There are different types of pricing strategies such as premium where the consumers usually set the price of the product higher than the competitors in the belief that the consumers will relate the high price tag to quality and hence prefer the company’s product to that of the competitors.
In a penetration strategy the company aims at setting the prices lower than the competitors with a view to attracting the market more than the competitors, the company then raises their prices after some time (Farris et al, 2017). In skimming the company sets its products higher at the introduction and then lowers its prices when competitors enter into the market. , Norberg, S. , Jones, R. , Reinap, M. , & Jewell, J. Energy drink consumption in Europe: a review of the risks, adverse health effects, and policy options to respond. C. Energy drinks: review of performance benefits, health concerns, and use by military personnel. Military medicine, 179(4), 375-380. Farris, P. W. , Beranek, R. , & Vollmann, J. Knowledge, experiences and views of German university students toward neuroenhancement: an empirical-ethical analysis.
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