One thing that could be done is stop the glorification of violence in media so that kids will learn that it is never the answer to a problem and then maybe bullying would not be seen as cool. Right now pretty much all of our culture's heroes are bullies, they insult people and use violence to solve all their problems, so of course kids think being a bully is cool. If you really want to stop bullying here is something that could be done.

First ban all songs with violent or insulting words from the radio.

Second ban all shows that have the heroes insulting other characters, using violence to solve problems, or portray the police, military, or gangs in a positive light from broadcast TV.

Third ban the sale of all video games that have any violence in them to anyone under 21.

Forth any movie that features violence, insults, or positive portrayals of the police, military, or gangs should be given an NC17 rating.

Fifth ban the sale of all books that feature any of the above things to anyone under 21.

A good first step to stop bullying is to stop sending kids the message that it is in any way cool or that it is an effective way to solve problems. Combine these steps with with stiff prison terms for the parents of bullies then we may stand a chance of stamping it out.