Question

Topic: Student Questions

Blue Ocean Strategy

Posted by Anonymous on 6/3/2011 at 12:38 AM ET 250 Points
I am attempting to come up with an idea that could turn Red Bull Back into a Blue Ocean. I know that when he started the company that it was a wide open market, so it was a Blue Ocean, but now with so many energy drink out their it appears to be a Red Ocean even though they are still taking majority of the market. They market to young male predominantly, so what could be done to expand into a different demographic?
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RESPONSES

  • Posted on 6/3/2011 at 3:24 AM Accepted
    trouble with blue ocean strategy is that its either too heavily dependent on innovation or on some untapped market. Both are difficult. nonetheless a simple tweak in case of target segment can give u what u desire.
    Right now ur benefit remaining the same - u can start targeting a different profile. try going the women way! introduce a women oriented version- Red bull-"Angel" in the same demographic with probably upward revision to include young mothers also (not feeding or expectant mothers of course!)
    Also i see a untapped market in terms of middle age segment. I understand that its not in sync ith the current DNA of the brand but by branding innovatively, u can explore a new segment...like a Red Bull "executive" - targeted at middle age demographic.

    Hope it was helpful

    cheers!
  • Posted by Peter (henna gaijin) on 6/3/2011 at 11:20 AM Accepted
    Apple is a company that is perfect example of this Blue Ocean strategy. They started with computers, which got to be a crowded market. They launched iPods, which even though there were other mp3 players, there packaging it with iTunes made it a whole new market. Then they launched iPhone, which also made it basically a whole new market (even tough there were other smartphones out already - the iPhone attracted a much broader set of customers than the Blackberries and Palms were). Now they are doing it again with iPads.

    For Red Bull, you need to find new markets. Maybe get into new geographies that don't have Red Bulls now, but have potential. Or new product aimed at new customers in current markets (like Karashe08's idea above of targeting women/girls).
  • Posted by Jay Hamilton-Roth on 6/3/2011 at 1:31 PM Accepted
    Red Bull as Viagra-like drink (for seniors)?
  • Posted by SteveByrneMarketing on 6/3/2011 at 2:05 PM Accepted
    lol, good one Jay :)
  • Posted by SteveByrneMarketing on 6/4/2011 at 11:51 AM Member
    Red Bull is now the leader in a red ocean energy drink segment so perhaps introduce "Blue Bull" as a blue ocean product that does the opposite of an energy drink. Blue Bull calms people down, helps them to relax, or fall asleep in the evening. I can only think of NyQuil as a comparable drink product, but NyQuil is a cold remedy product with alcohol. Blue Bull would be non-alcoholic (otherwise stated as alcohol optional, like red bull is sometimes consumed)

    Target would be some existing Red Bull consumers and some new consumers who do not use energy drinks.

    Steve
  • Posted on 6/15/2011 at 1:03 AM Accepted
    If you want a new "mellowing" drink…probably the safest thing I know of out there of that sort is Kava-kava. It is legal in the US and the Pacific Rim. In sufficient doses it will make the drinker very relaxed and friendly. Those have been pulled over for drinking and driving while under the influence of Kava have not been for speeding or weaving in traffic but for things like driving at 2mph in a 40+ zone. Mellow.

    The biggest hurdle is taste. Kava as traditionally processed tastes like mud and weeds pie filling. It ain't your grandma's chamomile tea.
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