Red Bull have defied Australian market expectation and released the new smaller 60ml Red Bull Shot. This comes as both competitors Mother & Monster increased their can size to an enormous 500ml, cutting margins and cannibalizing the segment. So lets look at Red Bulls marketing strategy, why release the Red Bull Shot?
Branding is key to Red Bull, they spend the equivalent of Lithuania's GDP on advertising each year to cement their very strong brand image. They want to be known for provision of energy, not provider of soft drink. When was the last time you saw a sport star carrying an energy drink that wasn't Red Bull? With this in mind, the shot suits the image, in actual fact, there is as much energy in the shot as there is in an entire 500ml Mother energy drink!
We also have to question the value in following the 'bigger is better' trend. Marketing 101 teaches us that we should differentiate on value, but you need to look at more than just that. For instance, bigger cans means less 2 for 1 sales (Red Bull is famous for their 2 for $5 deal). Bigger cans and low price also means reduced margins for retailers & producers. To top this off, 500ml cans are not female friendly.
Energy drinks sell enormous volume in the convenience category (petrol stations etc.) because nobody plans to become tired and Red Bull provides that pick-me-up that they need. A small shot not only reinforces that brand promise, but provides a convenience not before seen.
Josh Strawczynski's Opinion
The Shot has already been released in the USA and is doing tremendously well particularly, when you consider I counted 27 separate SKU's in one convenience store. The Australian launch will be another triumph, certainly not to the levels of standard Red Bull cans, but it will offer value in the form of a quick energy hit. I give the product & marketing strategy two thumbs up.
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