Within its 20 years of existence Red Bull has created and dominated and still dominates the whole new industry of energy drinks. Selling to the consumer the feeling of limitlessness in sleek silver and blue cans, Red Bull is still growing by penetrating new markets including the 3 emerging and fastest growing ones:
In order to do this, Kodak must successfully launch a line extension, allocating advertising support, as well as selling the product year-round and in sufficient demand quantities.
Goal Analysis The most important goal for Kodak is to recover its market share that has been lost to the competition over the past 5 years.
In order to do this, Kodak must first analyze this market share potential. A calculation of the market share shows that Kodak has the potential to have Next, Kodak must determine the most successful way in which to launch a line extension to attract this new market, identifying and focusing its resources on marketing channels that will allow the extension to acquire new customers through Kodak brand awareness.
Impediment Analysis The primary impediment to this goal is its competition.
At this time, the competitors, such as Fuji Photo Film Company, and Konica Corporation, are becoming increasingly successful at courting their consumers with lower-priced economy films, creating a niche in this market, as well as increasing brand awareness.
There may be major concerns with the Funtime Film strategy, as consumers have not been exposed to a Kodak offering of an economy film brand. Solution Analysis In order to effectively launch this line extension, Kodak must build on its core promise, broadening it to new users.
Kodak should launch this slightly different product with distinct characteristics, while depending initially, at least, on the customer recognition of the established brand name.
This extension will enable brands to increase profitability, and positively impact the brand associations.
Kodak needs to segment the film-purchasing buyers further by adding a category of price-sensitive, casual users, who cannot afford expensive products and do not necessarily care about the best quality film.
To do this, the product should be positioned as a standard film with a new low price, marketed as innovative technology yet inexpensive. This will ensure that the consumers are secure with their purchase, as they will still be receiving the Kodak brand with the Kodak quality, but at a lower price point.
In addition, Kodak should employ point-of-purchase materials, coupons, and advertisements displaying the low price.
This would serve as an effective method to encourage purchase and product line awareness. The advertising campaign for the current offerings, such as the snow angel campaign during the Olympics, would also be sufficient for the Funtime Film product line, because it maintains the Kodak Brand image.
This product should be offered year-round, and in sufficient quantities, since price-sensitive consumers would want more film, not better quality film, during vacation and holiday seasons, as well as for everyday use.
Since consumers will have instant recognition of the parent brand, they will be more likely to try this new product. Because of this, the promotional costs can be kept relatively low.
The arguments for and against other solutions are as follows: Instead of launching a line extension, Kodak should focus on recovering its lost market share by focusing on marketing and advertising of Kodak Gold Plus.
While Kodak should launch this line extension, they should focus no efforts on advertising, leveraging the current Kodak brand to carry the new line. The easiest way to target this group is through advertising directly to consumers who view Kodak as only having a higher-priced product.
Again, the promotional costs can be kept low, because of the ability to leverage the parent brand. While Kodak should launch this line extension, they should offer this product only twice a year, at off-peak film use times, in limited quantities, and in value-packs only.
Selling this new product year-round would encourage repeat purchases among the price-sensitive consumers. In addition, having continuous shelf space presence and availability would be advantageous, specifically for consumers who are price-sensitive and not yet brand-loyal.
With the film not on the shelf at certain times of the year, these consumers may be tempted to look at competitors. Finally, offering only value-packs may intimidate this target market; offering single packs would encourage trial of this new product.
Launching the line extension will allow cannibalization i.1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions? Red Bull implements several measures to reduce its climate emissions, such as 'Wall-to-Wall' production, reducing the weight of cans, using more efficient cooling systems, renewable energy and recycled materials.
Recommendations For Red Bull To Sustain Their Marketing Momentum The marketing strategy of Red Bull can be considered as one of the most successful one over the years. Red Bull has been famous for building a beverage brand without relying on mass-media.
Recommendations 8 National Account Management 8 0 Marketing mix recommendation for further development 9 Reference 1 1 1. Introduction This report will focus on the analysis of a new product development process, with the example of Impulse energy drink which is owned by Lipton, Milliner.
Recommendations for Red Bull to Sustain Their Marketing Momentum. The marketing strategy of Red Bull can be considered as one of the most successful one over the years. By , Red bull went globally in 25 markets and there was increase sales volume from million units to over million units.
Currently, red bull employed people in countries. The expansions are Western Europe and USA. Recommendations for Red Bull to sustain their marketing momentum Term Papers, Recommendations for Red Bull to sustain their marketing momentum Research Paper, Book Reports.
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