To do a FULL RE-ENCODE, it would be better to avoid another lossy codec in the middle - there ARE some lossless video codecs, such as Alparysoft -
http://www.alparysoft.com/products.php?id=8&item=35 - but the rate of compression will be quite low compared to lossy - the "visually lossless" variant might be acceptable as an intermediary, but is not ideal, as the object is to "do no harm" between the rip and re-encode.
With an acceptable lossless or pseudo-lossless rip, then the problem is an encoding one, getting your chosen encoder to deliver the bitrate that you want. Rescaling to a lower resolution, such as half-D1, may also be required if you want a more extreme shirink, at the point where the encoder just cannot hit the bitrate you want without severe degradation.