Having a healthy body is vital for everybody, so today everyone has increasingly health concerns and even the advertising is providing knowledge about health to people; for case, how to be healthy and exactly how being unhealthy could cause many diseases.
There are many causes which could lead people to be unhealthy such as insufficient sleep, bad pollution, lack of exercise, as well as perhaps the main is diet plan. If you want to have well being, one's priority should be selecting food to eat because unhealthy food is a primary cause of health issues such as cancer tumor, heart disease, hypertension, diabetes, and overweight.
We can easily see that today many supermarkets such as Vons and Ralphs provide organic and natural product because of their consumers. Even though the organic and natural prices are more costly than non organic and natural products, stores still make a profit from offering it. I think this is a good example showing that healthier trends are becoming more popular today. Therefore, a huge company like Red Bull GmbH which does well in the energy drink market should seize an edge out of this healthy tendency. They could do this by launching a new product that helps healthy trends to be able to meet consumers' current demand, expand their market, maintain faithful customers, and help company to generate good image. However, in this research newspaper, I will focus on how Red Bull GmbH uses company's opportunity regarding to SWOT analysis "current pattern (healthy style)" to beat the current issues which many studies have revealed that Red Bull products cause unfavorable side effects. I'll use three strategies, including product strategy, package deal strategy, and price strategy as tools for aiding Red Bull to launch their new product.
Red Bull GmbH was founded in Austria in 1987 and launched products in america about 10 years later. Red bull products are in the group of energy drinks and have benefits such as: increased performance, awareness, reaction velocity, and activated metabolism. Almost 15 years since Red Bull was presented to america, Red Bull built an extremely strong brand and is just about the number 1 energy drink in the USA and around the world. Today, Red Bull exists in 164 countries. As of the end of 2011, Red Bull possessed sold about 4. 6 billion cans worldwide and hired 8, 294 people. The headquarters of Red Bull is situated at Fuschl am See in Austria.
In 1982, Mr. Dietrich Mateschitz, the Austrian business man stopped at Thailand for his business. He thought sick because he previously taken a aircraft for many time, but after he attempted Kratingdaeng energy drink that could later motivate him. He was getting better and claimed that it might help him recover from jetlag. Therefore, he went to contact with Mr. Chaleo Yuwitthaya that he was interested in entering the vitality drink business.
In 1984, Mr. Dietrich Mateschitz and Mr. Chaleo Yuwitthaya set up "Red Bull GmbH" in Austria. Both of them held 49% of stock equity share and the rest 2% belonged to Mr. Chaleo's son.
In 1987, they started out to sell Red Bull energy in Austria. It became typically the most popular energy drink in Austria within the first season. However, before releasing Red bull energy drink in american market, Red Bull altered many ingredients from its original prototype such as, added carbonation, B supplements, glucuronolactone, sodium, and caffeine in its new product in order to respond the requirements of traditional western consumers. Not merely the taste, but the bundle was also transformed, from glass-bottle to can. However, after Red bull improved upon their product, they said that the new product can increased endurance and mental attention, so their concentrate on customers were changed from low class people to middle income people, such as athletes and students.
In 1997, Red Bull was offered to the united states and they focused on four western state governments that have been California, Colorado, Oregon, and Texas. However, Red Bull used online marketing strategy in showing their brand by assisting extreme activities that are incredibly popular in USA. For example, Red Bull sponsored snowboarding, skiing contests, and motorcycle rushing. Additionally, Red Bull captivated people who like nightlife by bringing out a glass or two that blended Red Bull energy drink with vodka. Today, Red Bull GmbH is the most highly appreciated company in Austria, well worth about $11 billion.
Figure 1: Red bull GmbH timeline
According to Red Bull " Red Bull Energy Drink has been developed for people who want to have a clear and focused mind, perform actually, are vibrant and performance-oriented whilst also balancing this with a fun and productive lifestyle. In short, Red Bull "gives wings" to the people who want to be psychologically and physically dynamic and also have a zest forever. "
According to Red Bull " In spite of the still very hard and uncertain financial and global financial local climate, Red bull ideas for growth and investment in 2012 stay equally as ambitious and we envisage a sustained upward style. "
1. Increase in sales.
2. Expand to new market, and develop the new product.
Healthy Pattern 2012
A growing reason behind fatality in world populations is persistent diseases. The serious diseases are caused by the degeneration of the body. Types of these diseases include: cancer tumor, heart disease, hypertension, diabetes, and weight problems. These chronic diseases can't be beat by modern medication, but maintaining well being is simple solution to prevent such diseases. Therefore, keeping healthy by pursuing healthy trends is a good way to make your daily life better. For example, sleep should be sufficient and a good bedtime is 10 pm. because the human body will begin to repair itself roughly every trip to about 10 pm. However, if we do not sleep, the mind won't secrete chemicals it uses to correct the body and will lead to deteriorating health. Regarding the environment and air quality, they are also important because if lungs are acquiring toxic polluted air, our lungs are affected. The result of extreme pollution causes the development of harmful cells which might lead to lung tumors. Another issue that must be mentioned is maintaining psychological wellbeing, which is important as well. When we are annoyed or angry, the body will be agitated too because we will secrete bad hormones that damage our skin cells. Therefore, we should reduce our stress by soothing down. We have to also not neglect exercise. A healthy lifestyle involves 3 day weekly for 30 minutes per day to keep health. The very last thing that we should think about carefully is eating. We ought to eat healthy nourishing food because good eating helps us to truly have a health. However, if we consume unhealthy food, the body will be feeble and less in a position to struggle off diseases. In addition, we should remember to eat breakfast since when we sleep, we use a lot of energy to repair the body, so in the morning our body requires food to convert to energy for using in lifestyle. Everything will be the fundamentals of healthy lifestyle.
However, top 5 health fads for 2012 consist with natural energy drinks, getting enough sleep, flexitarians, digital inspiration, and DIY health apps. However, in this newspaper, I will primarily give attention to natural energy drinks only because it better pertains to my research. During the last few years energy beverages such as Red Bull, Monster, and 5- Hour Energy have grown to be increasingly popular. However, if these beverages want to continue to be popular in the future, they should worried about consumers' health, so they must contain 100% natural such as vitamins, whole grains, tea extract, bananas, and times.
The particular concern "UNWANTED EFFECTS of Red Bull Energy Drink"
Red Bull products are included in these are: Red Bull Energy Drink, Red Bull Sugarfree, Red Bull Energy Shot, Red Bull Cola, Red Bull Total Zero, along with the Red Bull Editions. The business remarks that Red Bull energy drink revitalize your body and head, increase performance, attention and reaction swiftness, improve vigilance, stimulate metabolism, and make you feel more vigorous and so improve your overall well-being.
Australian medical scientists completed a study in 2008 on 30 adults 1 hour before and 1 hour after drinking a power drink. They concluded that one hour pursuing, the bloodstream viscosity became thicker, a problem similar in dynamics to individuals with cardiovascular problems such as stroke. Scott Willoughby, the lead researcher, stated that the consequences of energy beverages when coupled with high stress or high blood circulation pressure could negatively impact the proper function of blood vessels, increasing the chance of clotting. Wayne Condition University experts completed a study in 2007 on healthy parents who used two cans of a favorite energy drink daily. They figured individuals with hypertension and cardiovascular disease should avoid consuming these kinds of beverages. The analysis demonstrated that healthy men and women experienced raises in blood pressure and heartrate following usage. The individuals were at leftovers, relaxing in chairs or viewing a movie. As the increase had not been significant for healthy people, it could pose health risks for those with heart-related concerns.
Even if Red Bull also provided energy beverages without sugar, such as Red Bull Sugarfree, its sugar was replaced by aspartame and sucralose sweeteners. However, two main elements of Red Bull Sweets Free are taurine and caffeine, that two substances can lead someone to suffer such negative area results. Red Bull Sugar Free could increase heart rate if you are especially sensitive to caffeine. Australian analysis by the Cardiovascular Research Centre at the Royal Adelaide Medical center in 2008 explains that stickiness of bloodstream level may increase, only drink a can of Red Bull energy drink. Not only that, but Red Bull energy drink also causes blood clotting this is the primary of cardiac arrest and stroke. In addition, ingesting Red Bull Sugarfree combination with alcohol can lead the drinker to lethal consequences. Matching to Steve Clarke, "combining the stimulant substances in Red Bull with the depressant effects of alcohol can cause cardiac problems. "
As the result, we can see that Red Bull products have been associated with many side effects. Therefore, Red Bull Company should concern about their customers' health because products' aspect effects make a difference its sales. However, Red Bull should make an effort to revise products to be better to retain existing customers and attract more customers. According to Red Bull Energy Drink SWOT analysis, one chance of Red Bull is starting a new product that aligns with the current healthy trend enjoy it never has before. I think this is a good opportunity for Red Bull to use advantage of this healthy development in order to keep up customers in the foreseeable future.
How Red Bull can use the ability (Healthy Pattern) to get over the current issues.
The solution that will help the company to cope with the current issues is introducing a fresh healthy conscious product that helps healthy tendency by using three strategies: product strategy, package strategy, and price strategy in order to increase in sales, develop to new market, and develop the new product.
To provide a changing consumer basis in 2012, energy drinks should contain much more natural ingredients, so the new product of Red bull should be a natural energy drink that contains ingredients from 100% natural resources. They also needs to add minerals and multivitamins that promote health. Under the theory "Red Bull for YOUR WELLBEING. "
1. The brand new product is a glass or two in the category of energy drinks, under the name "Red Bull Natural Drink". It really is a glass or two that helps visitors to get over physical exhaustion more quickly after work, sports activities, learning and also help for fixing the parts of the body that were broken in order to remain healthy. This product will use a mixture of 100 % natural ingredients only and some minerals and multivitamins will be added in the product for additional health benefits. Moreover, the new product will have zero calories from fat, zero carbs, and zero sugars which is wonderful for individuals who diet and people who wish to have well being.
2. The color is light renewable with 100% natural ingredients, higher mineral and multivitamin level than other brands in the same category. The light green represents nature that matches with the product concept involves characteristics. Therefore, I suppose the light green is best fit for Natural Drink.
3. At first, I am going to produce only one flavor that is the same original taste of Red Bull energy drink because this tastes is very unique and difficult to replicate and I want to keep with company individuality. In addition, Red Bull's customers are informed that they decided to go with Red Bull for this reason unique flavour.
4. The drink will be within a can that, like the old product package deal, can help the company to save lots of costs that'll be lost in creating new offer.
5. At the beginning, I am going to provide only one size of product that contains 355ml. It will be middle size that it not too much, but it will do to provide people what they need. I provide only 1 size because I wish to know initial responses of the new product and modify my strategy accordingly. However, if the new product is popular, I think you won't be too late to produce another size.
6. Red Bull's researcher team will work hard to study customers 'demand and opinions that is a valuable information source to help company to develop new products in order to have an improved selection of products.
Logo: I'll use the same logo picture and same color like the former product because when the customers start to see the new product, they will know quickly that it is something of Red Bull and I think this will make it simpler to advertise.
Package: I'll choose a can package as the existing product offer, but color on the can will be transformed by by using a smart blue and green color to signify dynamics and a graphic that'll be added on the can. It'll be the graphic such as tree, vegetation, and bouquets that reflect the nature of the new product to be able to persuade consumer to take the new product.
Label: What on the label will be a renewable color and the label record will be a light blue color to be able to match with the can of the new product.
From the psychological strategy, I'll set the purchase price above the market price because high charges can take benefit of a portion of consumers who believe that high quality comes at a high price. It also helps the company to make positive consumer recognition. Another reason is using 100 % 100 % natural ingredients will increase creation costs which is why I must set the purchase price above the marketplace price and I want to sway consumers' frame of mind about the new product that its high quality and better for your wellbeing than another product that established at the lower price.
In the next price strategy, the Red Bull Healthy Drink chooses the mental health strategy by setting odd pricing. I'll set the price at $3. 25 per a can. This plan is very popular in many items in the best stores and this strategy works many times for persuading consumers to buy a product.
In the last price strategy, I am going to use product bundling strategy because this plan will help the company to sell a more substantial amount of product in a shorter timeframe and also offer more value to the consumers. For consumers who are considering purchasing the merchandise, they may decide to buy if indeed they can get more products in a lot of money package deal. The Red Bull Healthy Drink will have 3 varieties of bundles. For the pack of 6 cans will be $17. 75, a load up of 12cans will be $35. 50, and a pack of 24 cans will be $71. 00.
Due to many conditions that Red Bull is currently facing, launching a fresh product that support healthy developments will be a good solution that could help the company to maintain consumers and also available new marker. I believe using the current trends to run business would be a smart strategy that the business should follow because the clients want something new which thing should be the best for them. Therefore, if people want to achieve business, they need to know what current needs of individuals are and how to fulfill those demands. For instance, in my research, I've known nowadays that healthy movements are incredibly popular because people have more concern about their health insurance and eating habits as you aspect that creates health issues, therefore i think Red Bull should use this information to think about the particular new product should be. I think releasing the new product that support health fads will be the optimum solution for Red Bull Company. After knowing an answer, the next thing is making new product to be real by using many tools. However, in my research I use only three strategies, product strategy, offer strategy, and price strategy that I think would be enough to provide as a guideline about launching a fresh product for Red Bull.
Although releasing new product may help Red Bull to triumph over the current conditions that they have experienced, creating a natural energy drink that contains materials from 100% natural resources would are expensive of money to company. Since there a wide range of steps before introducing the new product such as research and experiments about what should be elements for the new product, and also marketing. However, starting a new product is challenging, so the company must consider carefully that the product is valuable enough to kick off or not to be able to ensure a successful business.
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