Red Bull has developed a 5-step product development process: concept, research, analysis, develop, launch. With 70-90% market share of the energy drink market, Red Bull is the dominant player in a mature category. This implies competitors will have difficulty gaining market share. There is potential for long-term growth in the functional beverage market if companies continue product development and promotional strategies to attract new customers. The document recommends Red Bull pursue market penetration through short-term sales promotions and product samplings. It also suggests product development of new packaging with advanced features. Market development could expand to new countries.

1. Red Bull Case
Product Development Management & Life Cycle

2. Red Bull's product development process.
1. Concept
2. Research
What process would you recommend as it
considers developing new products?
3. Analysis
4. Develop
5.Launch
Launch, they are the no. 1 energy drink that captures 70-90% share of energy
drink market.
This is a proccess that needed a lot of product development plan, because
they must stand the position of the product and enter new markets to
developing.

3. 2. product life cycle - What does Red bull position imply for
category competitors?
Maturity.
• Those products that survive the earlier stages tend
to spend longest in this phase. Sales grow at a
decreasing rate and then stabilise. Producers
attempt to differentiate products and brands are
key to this. Price wars and intense competition
occur. Promotion becomes more widespread and
use a greater variety of media.
•
•
Maturity, with 70-90% share to energy drink
market.
The impact is they automatically said that energy
drink market has a lot of potential and also attract
new competitor to join in.

4. 3. Do you believe there is a long-term market for functional
foods and beverages like energy drinks? Why or why not?
•
•
•
Energy drinks is Functional Product, they have their
own market.
They still can develop their market with promotion
strategies.
Because of world that developing everyday and
cope the competitors, Red Bull must concern about
the PLC and doing NPD.

5. 4. Product-Market Expansion Grid
Market Penetration Strategy
1. Encourage current customers to buy more.
2. Attract competitor's customers.
3. Convince non-users to use the product.
Market-Development Strategy
1. Expand distribution channels.
2. Sell in new locations.
3. Identify the potential users.
Product-Development Strategy
1. Develop new features.
2. Develop different quality levels.
3. Improve the technology.
Diversification
1. Concentric Diversification Strategy: Develop
new products with the earlier technology for
new segments
2. Conglomerate Diversification Strategy: Develop
new products for new markets.
3. Horizontal Diversification Strategy: Develop
new products with new technology for old
customers.

6. recommend specific ideas for Red Bull in the areas of market
penetration, product development, and market development.
Market Penetration Strategy.
1. Create sales promotion in short term in
event marketing
2. Create energy drink workshop or tester
Product-Development Strategy
1. Develop new packaging,
2. Develop feature in packaging
e.g : augmented
reality, manufacturing process
Market-Development Strategy
Sell in new country

7. Terimakasih
@2010
Ekak Hardianto