Current Issues in Marketing Strategy

The 60ml Red Bull Shot is now available at all 7/11 stores Australia wide and even at the exorbitant price of $4.44 each, they have been an enormous success. Some argue that the success of the new product will be short lived, artificially inflated by early adopters trialing but not repurchasing. However, you only need to look at sales in the USA to see that the smaller product has plenty of fans.


It may seem like marketing strategy 101, but early adopters will always trial a new product, particularly one that is priced under $5. Which is why the Red Bull premium pricing strategy is so brilliant. In a market where profit margins are contracting, the 60ml shot is a high turnover, high margin solution.

The energy drink market is extremely competitive, V are about to launch their version of the shot to compete in this new space.The true test of Red Bulls marketing strategy will be seen in how disciplined they are with pricing. We will definitely find out how much currency the Red Bull brand has in the Australian market & whether consumers will pay a $0.50 or $1.00 premium for a Red Bull.

Josh Strawczynski's Opinion:
It is important for Red Bull to concentrate on premium branding and maintain larger margins. The energy market is in its infancy in Australia, it is only a matter of time until a flood of competitors invade the space. Red Bull need to fortify their position, be prepared to give up market share (can't be everything to everyone), but cement themselves as the #1 energy brand for product quality.