1. Team VI
Mike Devoney
Steve Purdy
Yareli Montenegro
Nancy Kim

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

3. 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

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

5. 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

6. Problem Statement Key Areas of Focus :
Maintaining market share (industry leader)
Lack of flavors
Brand management
Mike Devoney

7. 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

8. Interrelationships of Issues and Problems
New Flavors
Buzz
Price
Image
“Cells”
Steve Purdy

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

10. Plan of Action

11. 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

12. 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

13. 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

14. 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

15. 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

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

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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. Questions?