Team VI Mike Devoney Steve Purdy Yareli Montenegro Nancy Kim

Evaluations of Alternative Overview Plan of Action Evaluations of Alternative Interrelationships Mission Statement Problems and Issues Mike Devoney

Short-Term vs. Long-Term Problems Brand awareness Oversaturation Losing “cool” factor Long-Term Maintain market share Highly competitive market Lack competitive strategy Mike Devoney

Tactical vs. Strategic Issues Tactical (Macro) Brand management Distribution channels R & D Strategic (Micro) Product positioning Pricing Budget Mike Devoney

Mission Statement Red Bull Benefits : Mission Statement 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 Steve Purdy R+D Marketing Price Distribution 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 Price Image “Cells” Steve Purdy

Evaluation of Alternatives COST Low Cost Drink More Flavors Green Initiative Steve Purdy

Plan of Action

POA Overview Actions to be taken Strategy & Tactics Risk Assessment Performance Evaluation Financial Analysis Responsibility Distribution Implementation timeline Strategy & Tactics Actions to be taken Yareli Montenegro

Create Red Bull Flavors and Tea Actions to be Taken Sell Exclusively Buzz Marketing Create Red Bull Flavors and Tea Invest in R&D Yareli Montenegro

Actions to be Taken Yareli Montenegro 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 Viral marketing will help keep consistant with redbulls current appoarch of really not doing a lot of media adversting. Yareli Montenegro

Strategy & Tactics Flavors: Fruit Punch Nutritional item Invest in R&D Maintain Red Bull’s crisp taste with flavor Flavors: Fruit Punch Lime Berry Nutritional item Open barriers of entry Yareli Montenegro

Strategy & Tactics Open new market segment Recyclable bottle 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 Tea Yareli Montenegro

Vote For your Favorite Flavor at Redbull.com Strategy & Tactics Vote For your Favorite Flavor at Redbull.com Yareli Montenegro

Premium Product Seeding Marketing Introduction of Red Bull Flavor Red Bull Tea Exclusivity of Red Bull Tea Yareli Montenegro

Implementation Timeline R&D Red Bull Team Social Media Buzz Print Ads Seed New Red Bull Social Media Select GNC and Vitamin Shoppe Yareli Montenegro

Responsibility Distribution Product Champion: Dietrich Mateschitz CEO Created Red Bull culture Helped sell over 4 billion cans (2009) Director, Digital Marketing: Kevin Doohan Social media ads Commercials Advertising Field Event Specialist: Eduardo Smith Create buzz Red Bull cars Event sponsorships Yareli Montenegro

Pro Forma Statement ($$$) 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 Total Profit $820 $1,100 $1,810 Nancy Kim

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 Consumer surveys Sales numbers New flavors and tea Number of hits Viral Marketing Subscription numbers Magazine Ads Nancy Kim

Action Potential Risk Risk Analysis New Flavors Red Bull Tea Viral Marketing Large Marketing Budget “Seeding” Red Bull Selling Red Bull Tea Exclusively Potential Risk Low sales Negative reception Small/No impact Lost of investment Slow introduction of product Loss of exposure Nancy Kim

Evaluations of Alternative Review Plan of Action Evaluations of Alternative Interrelationships Mission Statement Problems and Issues Nancy Kim

Questions?