Comparison of Red Bull and Lucozade: Target Market, Product, Price, Place, and Promotion

This report compares the target market, product, price, place, and promotion strategies of Red Bull and Lucozade energy drink companies. It analyzes their market share, target audience, product features, pricing strategies, distribution channels, and promotional campaigns.

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Findings............................................................................................................................................3
Comparison of target market..................................................................................................3
Product....................................................................................................................................4
Price........................................................................................................................................6
Place.......................................................................................................................................6
Promotion...............................................................................................................................7
CONCLUSION AND RECOMMENDATIONS............................................................................8
REFERENCES..............................................................................................................................10
APPENDIX ...................................................................................................................................11

INTRODUCTION
Marketing is the action of promoting business and selling products and services by
including market research and advertising. For this project, here is select Red bull and Lucozade
company both are energy drink provider (Clapp, Morgan and Fairchild, 2019). As per data
collection, market share of red bull is 73% on volume and market share of Lucozade is under
60%. The present report will compare the target market of both company with its product, price,
place and promotion.
MAIN BODY
Findings
Comparison of target market.
The target market is a particular group of customers at which a product or services is
aimed and where company wanted to sell its products and services in order to gain more profits.
Both company Red Bull and Lucozade energy have their own target market its comparison are as
follows:
Basis Red Bull energy drink company Lucozade energy drink company
Age The company is targeted demographic
group teenagers, young adults 18 to 34
years old.
The company is target young men
aged between 18 and 30 as well as
sport men.
Social class Middle class and upper middle class
(E. Kunz, Elsässer and Santomier,
2016).
Middle class people
Target
audience
The CSD market is respect by two
brands which are fanta and Pepsi co.
The CSD market is dominated in every
respect by two brands like coke and
Pepsi (Fairchild, Broughton and
Morgan, 2017).
Level of
Education
This product is consumed in areas
where people are aware about the
product and what it is made of and
Product is consumed in service class
areas, with high professional
customers.

about its content.
Segmentation Segment of red bull is depends on
region and domestic and international.
And the age factor of 16 to 40 years
old people.
The company sets segment of drink is
sport man and youngsters.
Target Company is target to youngsters 16 to
40 years old.
Target to sportsman who need instant
energy.
Position The position of company is best and
higher brand image at market place.
The company have effective and brand
image at market place.
The Lucozade produce various types of drinks, through the segmentation company has
come up with the product that is ideal for the target market. This refers higher lifestyle of peoples
who love to drink this product. On the other side, Red bull produces only red bull drink which
is liked by every person but this product has higher price which is not affordable by lower class
people. Despite of high prices Red bull has much increased level of public acceptance as
compared and created a name in the field of energy drink. Lucozade has not recognition in
market like that of Red Bull. Only high class segmented people are aware about the drink
therefore company for increasing the sales may go for market that can have increased acceptance
for the product (Clapp, Morgan and Fairchild, 2019). Redbull though for targeted towards the
youngsters have increased market base in all segments.
Product.
Product refers to the goods or services that companies provide to its customers. A product
is accepted by target market when it satisfies its needs or requirements or if they are able to
attract the attention and develop the interest in that product. It is essential for company to ensure
that the product is able to get the target market. And also the products are required to be evolved
and updated timely to maintain the market.
Basis Red Bull Lucozade

Image
Shape Shape of Lucozade is going
steep towards bottle neck.
Red-bull is straight cylindrical.
Packaging Energy drink is packed in
plastic bottles of different sizes
and level of content.
Red bull is packed in
aluminium cans of different
sizes.
Colour Bottle of lucozade is usually
orange in colour and where
other colour are also available
like yellow and black (Hashem
and et.al., 2018).
Red bull comes in blue and
silver coloured aluminium
cans. The energy drink comes
only in single colour.
At functional level red-bull is having high recognition in the market as compared with
that of lucozade. It was having high acceptance in Great Britain but company lost its
considerable shares as the contents of the drink were harming the health of people. This helped
Red bull to gain the part of lucozade. Whenever anyone thinks of an energy drink first product
straight away coming in mind is Red Bull. The product was not harming the human health.
People were emotionally attached with lucozade energy drink and it was preferred by people
over any other drink. After identifying that product was harming internally people shifted
towards other product mainly Red bull and now it has been able to develop trust among the
consumers. Red bull is representing that customer are being valued and it is trying to satisfy the

needs through soft drinks without comprising their help (Alabbad and et.al., 2019). Coming to
lucozade company have also focused on energising its consumers from the daily hard works.
Price.
Basis Red Bull Lucozade
Price
(Pack of 24 )
£21.00 (250 ml) Red Bull
energy drink
£18.99 (380 ml) Energy
Original Drink
Pricing Strategy Red Bull uses premium pricing
strategy.
Lucozade is using economy
pricing strategy for it energy
drink.
Comparison Company is having high
recognition that has helped
company to charge premium
prices for its product.
Product was not aimed at
specific segment of society,
therefore it used economy
pricing strategy that helped
company to gain top position
in energy drinks (Alicea and
Poole, 2018).
Lucozade was having high acceptance in the market but its market dropped by GBP 62.6
million from previous year. Company has lost title biggest energy drinks of Britain and it rivalry
company red bull has followed the backlash on it reformulations. Lucozade has suffered highest
loss in category of soft drinks after the shift of consumers from low sugar formulas. As per IRI
figures, value sales of Lucozade has gone down to 273.6 m a drop of 18.6 % and volume fell to
162 m litres drop of 18.9 % after change of levy for avoiding levy. Conversely talking abut
rivalry Red Bull made an addition of 20.5m in its sale of standard variant and which hiked value
to 279.6 million and may achieve title of best seller energy drink of Britain (Broughton,
Fairchild and Morgan, 2016).
Place.
Channel management refers managing the online channels of distribution for selling
products t various agents spread across the globe. Channels management helps the organisations
in partnering with major agents. It is important for companies to choose best design for channel

management. Companies are required to decide which channels would help it to distribute its
product over wider area with minimal costing (Asiedu, 2016). These products are energy drinks
which are stored by generally by stores. Red Bull is stocked by all the major departmental stores,
malls, retailers keeping soft drinks and also stocked by wine stores. Red bull is placed of product
on retailer stores and other brand is on online stores.
Red bull would be found in stores that are stocking soft drinks. Lucozade was a high
demand product in society because of which it is stored in all the stores from retailers to
wholesalers. An individual can find lucozade drink in all the corners. This is highest demanding
energy therefore stored by every store. Company has maximised its market mainly in sports area
around the playgrounds and club houses. Even though it will be found in every region of country.
Red bull is not targeting any specific area fro supply of its product but has managed it
distribution because of which it is available in maximum stores of UK (Elitok and et.al., 2016).
The products of both companies are available on online stores which are available at beneficial
prices.
Promotion.
Promotion refers to selling products in market using various promotional techniques. The
promotional strategies are used for increasing the brand recognition in society and for increasing
the sales of product. Promotions leaves imprint on the minds of people about the product of
company. So that whenever the need for product arises mind suggest the imprinted image of the
product (Farris and et.al., 2017). Lucozade is present in market from year 1927, and it promoted
its product over various channels from radio to television and gradually as environment came
with new inventions it promoted its over all the channels. ''Lucozade aids recovery'' is
promotional tag-line of company where ''Red-bull gives you wings'' is of Red Bull. Energy drink
red-bull has used mainly television for making promotions for its product. Man flying with
wings left strong image about the drink. This helped company to gain high brand awareness
(Emond, Sargent and Gilbert-Diamond, 2015). Red bull has positioned its product as socially
conscious energy drink that will boost the energy of individual. Lucozade has positioned iteself
as healthy energy drink that helps in rediscovering the energy at instant.
Promotion picture of redbull

Promotion picture of Lucozade
CONCLUSION AND RECOMMENDATIONS
Recommendations
 Companies can boost their sales by promoting their product at social platforms.
 Companies should improve the product strategy for attracting the attention of consumers.
 Distribution channels should be expanded for making the product available in every part
of the country.
 Lcozade should should reformulate its product and promote health benefit of consuming
the drink. Red bull can add new flavour in their drink as well as use online store for sales products.

Conclusion
From the above study it could be conclude that marketing strategies plays an important
role in success of the organisation. Both the companies have effectively applied the marketing
strategies that have helped them to acquire considerable market share. Lucozade was best seller
energy drink and now with improvised strategies Red-bull van achieve that position. Therefore
marketing strategies should be applied very effectively for maintaining and creating the position
in market.

REFERENCES
Books and Journals
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Alicea, S. and Poole, R., 2018. Life after Lucozade. Practical Diabetes. 35(2). pp.43-46.
Asiedu, E., 2016. How to create and sustain a strategic marketing plan through the 4p’s of
Innovation: With reference to Red Bull energy drink company.
Broughton, D., Fairchild, R.M. and Morgan, M.Z., 2016. A survey of sports drinks consumption
among adolescents. British dental journal. 220(12). p.639.
Clapp, O., Morgan, M.Z. and Fairchild, R.M., 2019. The top five selling UK energy drinks:
implications for dental and general health. British dental journal 226(7) p.493.
E. Kunz, R., Elsässer, F. and Santomier, J., 2016. Sport-related branded entertainment: the Red
Bull phenomenon. Sport, Business and Management: An International Journal. 6(5).
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Elitok, A., and et.al., 2016. Acute effects of Red Bull energy drink on ventricular repolarization
in healthy young volunteers: a prospective study. Anatolian journal of
cardiology. 15(11). p.919.
Emond, J.A., Sargent, J.D. and Gilbert-Diamond, D., 2015. Patterns of energy drink advertising
over US television networks. Journal of nutrition education and behavior. 47(2).
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Fairchild, R. M., Broughton, D. and Morgan, M. Z., 2017. Knowledge of and attitudes to sports
drinks of adolescents living in South Wales, UK. British dental journal. 222(12). p.931.
Fairchild, R.M., Broughton, D. and Morgan, M.Z., 2017. Knowledge of and attitudes to sports
drinks of adolescents living in South Wales, UK. British dental journal. 222(12). p.931.
Farris, P.W., and et.al., 2017. Red Bull (Abridged). Darden Business Publishing Cases. pp.1-8.
Hashem, K.M., and et.al., 2018. Cross-sectional surveys of the amount of sugar, energy and
caffeine in sugar-sweetened drinks marketed and consumed as energy drinks in the UK
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p.e018136.

APPENDIX
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