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Price Analysis

Create a detailed analysis of the price for a new line of products.

Introduction

Red Bull’s marketing manager has tasked you with preparing a plan for introducing a new product line of energy drinks with a coffee flavor.

You’ve already received positive feedback on the product and place analysis you’ve conducted. Now you’re being asked to submit a detailed analysis of the price for this new line of products. You’re feeling good about the work you’ve done so far, but you know the overall marketing plan isn’t complete yet, and that your pricing analysis needs to be thorough and support the earlier product and place analysis you developed.

Companies need to decide which pricing approaches and strategies they will apply in order to both make a profit and make the price attractive to the final consumer—you. If the price is too high, Red Bull’s sales could drop, and if the price is too low, its profits could be impacted, since there are competitors in the marketplace. Since Red Bull is the market leader in energy drinks and is now marketing a new line of coffee-flavored energy drinks, please examine their pricing strategy and provide your recommendations.

Overview

Continue with the next part of your marketing analysis and focus on the next of the 4 Ps—the pricing decisions for Red Bull. In this analysis, you will also make a recommendation for how Red Bull should handle pricing for its new line of coffee-flavored drinks. Pricing influences your buying decisions, and companies and their competition use pricing and the product life cycle to compete for your attention and dollars. The recommendation you make will not only reflect the rest of the overall plan for the product line but can have a real impact on the product’s success.

Preparation

Read Chapters 6 and 19 in your textbook about consumer decision-making and pricing concepts in order to prepare for this assessment. Here is a website that can help provide background on Red Bull’s current pricing strategy:

Premium Pricing: The Ins & Outs of a Successful Brand Strategy.

If you need guidance in locating additional information about Red Bull, please ask your faculty member.

Instructions

Create a price analysis in which you do the following:

  • Accurately analyze the pricing strategy of Red Bull in relation to the competition.
    • Which pricing strategy does Red Bull use, and how does it compare to similar products in the product category?
    • Which pricing strategy is being used to effectively create a competitive advantage?
  • Provide an analysis of the price strategy and its effect on business success.
    • Explain whether Red Bull’s pricing strategy maximizes profitability or market share?
    • What recommendations can you make in terms of pricing decisions that may improve business success for the new coffee flavors?
  • Accurately analyze the pricing system along with its characteristics and effect on the marketing mix.
    • Describe how Red Bull’s pricing decisions on its new line of coffee-flavored drinks affect the other Ps in the marketing mix: place, promotion, and product.
  • Analyze the pricing strategy’s impact on the economic success of the company.
    • Describe the effect of the pricing strategy on the overall success of the company.

In the analysis:

  • Incorporate information from three other sources related to the content of the assessment. Cite any resources you use.
  • Be sure your analysis presents a focused purpose through strong organizational skills. Also, be sure it presents evidence through strong paraphrasing/summarizing, appropriate tone, and sentence structure.

Planning

Consider the following as rough guideposts for setting aside the time you need to do your work. You will want to adjust these as you learn more about your own pace and working style.

  • Research and reading: 4 hours.
  • Interactive activities: 30 minutes.
  • Writing: 6 hours.
  • Revising: 2 hours.

Additional Requirements

  • Written communication: Communication should be clear and well organized, and support a central idea, with no technical writing errors, as expected of a business professional.
  • References: References and citations are formatted in a consistent style, using APA. See the Campus page Evidence and APA. Also refer to the Business Academic Professional Document Guidelines [PDF], which provide basic formatting and APA guidelines you should follow to create attractive and usable documents not just within your business program but in the workplace as well.
  • Resources: Incorporate information from three other sources related to the content of the assessment.
  • Length of paper: Approximately 3–4 typed, double-spaced pages, in addition to the title and references pages.
  • Font and font size: Times New Roman, 12 point.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

  • Competency 3: Examine the relationship of basic marketing strategies to business success.
    • Analyze the pricing strategy of a company in relation to its competition.
    • Analyze a company’s price strategy and its effect on business success.
    • Analyze a pricing strategy’s impact on the economic success of a company.
  • Competency 4: Apply effective marketing planning and implementation.
    • Address assessment purpose in a well-organized text, incorporating appropriate evidence and tone in grammatically sound sentences.
  • Competency 6: Evaluate management implications of marketing and sales plans.
    • Analyze a pricing system along with its characteristics and effect on the marketing mix.

Place Analysis

Submit a detailed analysis of the place strategy for a new line of products.

Introduction

As we learned in Assessment 1, Red Bull must find a way to maintain its leadership in the energy drink category. Looking for ways to grow sales, Red Bull’s marketing manager has tasked you with preparing a plan for introducing a new product line of energy drinks with a coffee flavor.

Your marketing manager was impressed with your product analysis. Now Red Bull needs your help deciding how they will distribute these new coffee-flavored products, which distribution channels they will use, and which approaches and strategies they will apply in order to both reach their customers at the places where they purchase energy drinks and make a profit.

Overview

Develop the second part of your marketing analysis and focus on the next of the 4 Ps—the place actions of Red Bull.

The place strategy of the marketing mix is all about finding the best way to distribute and retail products and services. Not only does place strategy focus on retail locations, but place strategy also focuses on the journey of a product from manufacturer to consumer, which includes transportation, storage, and shipping. Place strategy must also integrate with other Ps of the marketing like product, price, and promotion.

Preparation

Continue to familiarize yourself with Red Bull and its current marketing strategy. With the perspective of place strategy in mind, you can go back to its website, below. You will use this same company for all assessments in this course. In addition, look again at the two other websites that provide background on Red Bull’s current marketing strategy:

If you need guidance in locating additional information about Red Bull, please ask your faculty member.

Instructions

Create a place analysis in which you do the following:

  • Accurately identify all areas where Red Bull Energy drinks are currently sold and any new area where the new coffee-flavored energy drinks could be sold.
  • Accurately analyze Red Bull’s current distribution channels.
    • How are they getting their product to market?
    • Which distribution strategies are being used to effectively create a competitive advantage?
  • Provide an analysis of the place strategy and its effect on business success.
    • Describe how the distribution decisions affect the other Ps in the marketing mix in regard to their new coffee-flavored energy drinks.
    • What recommendations can you make to Red Bull in terms of distribution decisions that may improve business success?
  • Analyze the Red Bull place strategy’s impact on the profitability of the company.
    • Describe the effect of the place strategy on the overall success of the company.

In the analysis:

  • Incorporate information from three other sources related to the content of the assessment. Cite any resources you use.
  • Be sure your analysis presents a focused purpose through strong organizational skills. Also, be sure it presents evidence through strong paraphrasing/summarizing, appropriate tone, and sentence structure.

Planning

The time it takes to complete an assessment can vary greatly. But it often takes longer than we think to explore the scope of a task, research it, write a draft, and then come back and revise it. Consider the following as rough guideposts for setting aside the time you need to do your work. You’ll want to adjust these as you learn more about your own pace and working style.

  • Research and reading: 4 hours.
  • Interactive activities: 30 minutes.
  • Writing: 6 hours.
  • Revising: 2 hours.

Additional Requirements

  • Written communication: Communication should be clear and well organized, and support a central idea, with no technical writing errors, as expected of a business professional.
  • References: References and citations are formatted in a consistent style, using APA. See the Campus page Evidence and APA. Also refer to the Business Academic Professional Document Guidelines [PDF], which provide basic formatting and APA guidelines you should follow to create attractive and usable documents not just within your business program but in the workplace as well.
  • Resources: Incorporate information from three other sources related to the content of the assessment.
  • Length of paper: Approximately 3–4 typed, double-spaced pages, in addition to the title and references pages.
  • Font and font size: Times New Roman, 12 point.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

  • Competency 1: Examine the basic marketing models for a business or organization.
    • Analyze a product’s distribution channels.
  • Competency 3: Examine the relationship of basic marketing strategies to business success.
    • Analyze place strategy and the associated impact on economic success.
  • Competency 4: Apply effective marketing planning and implementation.
    • Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
  • Competency 5: Develop a sales plan.
    • Identify where a product is sold.

Product Analysis

Submit a detailed product analysis for a new product line.

Introduction

Red Bull must find a way to maintain its leadership in the energy drink category. Looking for ways to grow sales, Red Bull’s marketing manager has tasked you with preparing a plan for introducing a new product line of energy drinks with a coffee flavor. The first three drinks will be Cinnamon Latte, Cafe Mocha, and Blonde Roast Light. In this assessment, you will submit a detailed analysis of these new products.

Effective marketing begins with great products, and Red Bull’s new products must meet their customer’s needs. A product analysis focuses on the design, packaging, product positioning, brand identity, and the other elements that are part of a company’s efforts to maintain a unique set of values in the customer’s mind, maintaining market share leadership against the onslaught of competitive products.

Overview

The central focus of a marketing program is the product. It is the sole basis and driving force behind all marketing activities and what excites a target market.

This assessment allows you to analyze in depth a hypothetical new line of coffee energy drinks, something you might do in a marketing position as part of a complete promotion analysis and sales plan. In doing this analysis, you will look in detail at how Red Bull maximizes the branding of its products, its design and packaging, and recommend what you think is the best way for the company to position the new product in the marketplace, based on your analysis of that market.

Preparation

Start to familiarize yourself with Red Bull and its current marketing strategy. Check out its website below, and learn about the company, its goals, strategies, and successes. Use this same company for all assessments in this course. In addition, look at two other websites that provide background on Red Bull’s current marketing strategy:

If you need guidance in locating additional information about Red Bull, please ask your faculty member.

Instructions

Submit your analysis of the first P (product) for Red Bull’s hypothetical new coffee product line. Use your imagination and explain your assumptions about this product line based on what you have discovered about Red Bull products, other similar products, and the energy drink market. Your product analysis should include the company, packaging, brand identity, and target market requirements. Incorporate information from three other sources related to the content of the assessment. In your analysis, evaluate the following: 

  • Analyze the new product line and Red Bull’s primary target market for its new coffee energy drinks. What are the niche characteristics of the product and the traits of the primary target market?
  • Analyze the branding of the new product line of coffee drinks, including the intended audience and the product positioning. What influence, if any, does the brand have on its product category?
  • Analyze the packaging for the product, and the overall product color scheme. How will these new energy coffee drinks stand out?
  • Synthesize product strategies for Red Bull to achieve business success. Why will those strategies yield success? What would you recommend to Red Bull management to do in terms of this product to assure its long-term success?
  • Cite any resources you use.
  • Be sure your analysis presents a focused purpose through strong organizational skills. Also, be sure it presents evidence through strong paraphrasing/summarizing, appropriate tone, and sentence structure.

Planning

The time it takes to complete an assessment can vary greatly. But it often takes longer than we think to explore the scope of a task, research it, write a draft, and then come back and revise it. Consider the following as rough guideposts for setting aside the time you need to do your work. You will want to adjust these as you learn more about your own pace and working style.

  • Research and reading: 4 hours.
  • Interactive activities: 30 minutes.
  • Writing: 6 hours.
  • Revising: 2 hours.

Additional Requirements

  • Written communication: Communication should be clear and well organized, and support a central idea, with no technical writing errors, as expected of a business professional.
  • References: References and citations are formatted in a consistent style, using APA. See the Campus page Evidence and APA. Also refer to the Business Academic Professional Document Guidelines [PDF], which provide basic formatting and APA guidelines you should follow to create attractive and usable documents not just within your business program but in the workplace as well.
  • Resources: Incorporate information from three other sources related to the content of the assessment.
  • Length of paper: Approximately 3–4 typed, double-spaced pages, in addition to the title and references pages.
  • Font and font size: Times New Roman, 12 point.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

  • Competency 3: Examine the relationship of basic marketing strategies to business success.
    • Synthesize product strategies to achieve business success.
  • Competency 4: Apply effective marketing planning and implementation.
    • Analyze a product, and its target market.
    • Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
  • Competency 6: Evaluate management implications of marketing and sales plans.
    • Analyze branding of a product, including the intended audience, packaging, and product positioning.