Marketing Mix Analysis of Red Bull and Lucozade Energy

The paper analyzes the marketing mix of two renowned energy drinks brands named as Red Bull and Lucozade Energy. The paper compares the target market, places, prices, promotional strategies and products of the mentioned brands. In addition to this, the paper provides the pictorial representations of the products the two brands. The paper also shares the information regarding the market share or the profitability of the selected brands. The paper analyzes regarding the comparatively low pricing of the products of Red Bull and at the same time, it also acknowledges the attractiveness of the packaging of the products of Lucozade Energy.

Running head: MARKETING
Marketing
Name of the Student
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Author Note

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Executive Summary:
The paper analyses the marketing mix of two renowned energy drinks brands named as Red
Bull and Lucozade Energy. The paper compares the target market, places, prices, promotional
strategies and products of the mentioned brands. In addition to this, the paper provides the
pictorial representations of the products the two brands. The paper also shares the information
regarding the market share or the profitability of the selected brands. The paper analyses
regarding the comparatively low pricing of the products of Red Bull and at the same time, it
also acknowledges the attractiveness of the packaging of the products of Lucozade Energy.

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Table of Contents
Introduction:...............................................................................................................................3
Target Market:............................................................................................................................4
Products:.....................................................................................................................................5
Prices:.........................................................................................................................................6
Places:........................................................................................................................................8
Promotion:..................................................................................................................................9
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12

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Introduction:
The marketing mix is the summarized description of the products, prices, places and
the methods of the promotions that a particular company or brands apply in order to
effectively conduct the business operations of them (Huang and Sarigöllü 2014). The paper
is focused in the elaboration of the marketing mix of two different brands in the form of Red
Bull and Lucozade Energy. Apart from this, the paper compares the target market of
mentioned brands with the precise focus on the demographics of the customer base of the
mentioned brands. Apart from this, the paper provides a brief overview of the chosen brands.
Red Bull is one of the most renowned energy drink available in the modern business
world and the product is sold by the Red Bull GmbH (Redbull.com 2019). The mentioned
brand incorporates 20 different versions and that is one of the key factor responsible for the
generation of a revenue of 7391 million US dollars in the year 2017 (Redbull.com 2019).
(Information Courtesy: Statista.com 2019)

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(Information: Leading energy drink brands in the United States in 2018, based on sales (in
million U.S. dollars))
(Information Courtesy: Statista.com 2019)
On the other hand, the Lucozade Energy is one of the widely consumed energy drink
that is introduced by a Japanese company named as Suntroy (Suntory.com 2019). The
manufacturing company provides notable number of sports and energy drinks and the
diversification of the product chain of the organization has enabled the company to reach
£400m sales in the year 2017 (Lucozadeenergy.com 2019). However, the organization is
currently experiencing a significant loss of market share.
Target Market:
Red Bull is observed to have the highest market share in the world of energy drinks
with a sales of 6.790 billion cans in the year 2018 (Redbull.com 2019). The mentioned brand

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is seen to target the youth generation in a significant manner and it is recognised as one of the
largest selling sports drinks in the modern generation. The targeted segment of the customers
are generally the players, sporting individuals and the viewers of the sporting events. The
product is available for both male and female. With the increasing usage of the eco-friendly
ingredients, the chosen brand is able to serve the age group ranging from 15 years to 35 years
with an income expectation of 6 to 10 thousand US dollars (Lin, Swarna and Bruning 2017).
On the other hand, the Lucozade Energy is one of the significant edition in the
product category of the sport drinks from the part of the Lucozade Ribena Suntory Limited.
The mentioned drink is one of the most favoured products in United Kingdom. Similar to Red
Bull, the chosen brand is also seen to target youth generation for the products of them where
the precise focus is on the customers belonging to the age group of 15 to 33 years
(Lucozadeenergy.com 2019). The brand is seen to put strong emphasis on the sport athletes,
sporting individuals and the customers of the youth generation with a notable amount of
interest on the sporting activities. The targeted income group for the products of the company
is seen to be 16 thousand to 26 thousand US dollars (Lucozadeenergy.com 2019).
Products:
With a precise focus on the Levitt’s model, the shape of the products under the brand,
is in form of aluminium cans and adding to this, the colour scheme for the products of the
brand are seen to be largely blue (Urde 2013). However, there write up regarding the name of
the company or the or the logo of the company in addition to the marketing communication is
seen to be done in red colour. The cans of the mentioned brand is seen to have a presence of
silver colour. The recyclable aluminium is seen to be main material for the cans of the brand.
On the other hand, the products of the Lucozade Energy are seen to be packaged in bottle
container made of plastic along with the cans for the low volume of products

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(Lucozadeenergy.com 2019). Apart from this, the Lucozade Energy brand uses a colour
combination of green, pink, orange, red, sky, black and many more. Hence it is pretty evident
that the packaging of Red Bull is more effective compared to the other company in terms of
keeping the freshness of the products. However, the significant colour combination of the
Lucozade Energy brand places it above the competitor brand in terms of looks of packaging.
With a precise focus on the packaging and the content of the products of the two brands, it is
pretty evident that the Red bull’s products are comparatively better in terms of functionality
whereas the diversified colour combination of the products and the packages of the Lucozade
Energy is seen to have a strong impression on the customers due to their excellence in
combing the different colours nad making the product lucrative. With a precise focus on the
Aaker’s brand personality framework, both of the brand, being widely consumed energy
drinks, are seen to follow the excitement personality type (Malik and Naeem 2013).
Prices:
Brand Prices (In Romania) (250 ml)
Red bull 1.17 USD (Redbull.com 2019)
Lucozade Energy 18.2 USD (Lucozadeenergy.com 2019)

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Red bull serves the customers in Romania by providing a large number of products
such as the Red Bull Sugar-Free, Red Bull Energy Shot, and Red Bull Total Zero
(Redbull.com 2019). The chosen brand is one of the most established company in the
mentioned business industry and that enables the company to use a wide range of modern
inventories for the processing of the energy drinks. Apart from this, the significant

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infrastructure of the mentioned brand is notably contributing to the improved processing
operations and with the efficient conduction of the processing operations, the company is
ably to minimize the operational cost of the organization. The improvement in the operational
cost of the organization plays a crucial role in enabling the organization for applying the low
pricing policy (Falbe et al. 2015). The application of the low pricing policy with a precise
focus on the pricing of the competitors is able to produce notable amount of competitive
advantage to the chosen brand. The application of the low pricing policy is of great
significance for the mentioned brand as it enables Red bull to target the low income group in
a more efficient manner. On the other hand, from the above mentioned statistics shared in the
table, it is pretty evident that the Lucozade Energy follows the premium pricing policy for
their customers (Hashem, He and MacGregor 2018). The pricing of the mentioned brand is
comparatively higher than that of Red bull and it serves a specific class of customers.
Places:
Red bull uses offline and online, both forms of stores for sales of their products.
However, the sales of the products of the mentioned brand is seen to be significantly higher
in the online stores in comparison to the offline stores. Similar to Red bull, Lucozade Energy
is seen to conduct their business through offline and online stores and the online sales of the
company is seen to be much higher in comparison to the offline store sales.
From the business operations and the significant sales of Red bull, it is pretty evident
that the products are designed in such a manner that it be easily available for the customers of
different income groups. Apart from this, the application of the low pricing for the products is
seen to be significant from the part of the senior management of the organization in targeting
a larger number of customers. Hence, from the pricing strategy and the usage of the
ingredients, it is pretty evident that the products of the mentioned brand belongs to the mass

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market population. In addition to this, with the increasing distribution outlets, the
management’s intention of enabling the larger number of customers to use their products is
pretty evident.
On the other hand, with a precise focus on the increasing pricing of the products of
Lucozade Energy and the application of the premium pricing policy from the part of the
organization is seen to limit the products for a particular section of the customers. Hence the
brand can be considered to belong the luxury group of products.
The application of the low pricing is seen to be of greater significance for Red bull as
the cheaper rate products of the company enables it to serve the targeted segment of the
customers that are the youth generation, in a better banner in comparison to the other
company. Whereas, the attractive design of the products of Lucozade Energy provides a
pleasant experience to the customers.
Promotion:

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Red bull is a company that have conducted promotional activities in both offline and
online forms. The increased activity in the various social media platforms is a significant
proof of that. Apart from, that, the increased TV commercials are seen to be one of the key
factor responsible for the significant growth of the brand. Through the increased promotional
activities, the company is able to place the products as affordable to the minds of the
customers.
On the other hand, the marketing communication for the products of Lucozade
Energy is seen to place the products as luxury in the minds of their customers and the
marketing communication is observed to be conducted in the TV advertisements, social
media advertisement and through the print media advertisement in a significant manner.
Conclusion:
On a concluding note, the application of marketing mix for both the brands are
notably similar, however, the pricing is seen to be the one aspect where the brands differ in a
significant manner. Red bull applies comparatively lower pricing strategy whereas Lucozade

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Energy is seen to apply the premium pricing policy for their products. The application of the
low pricing strategy is notably feasible for Red bull as the significant infrastructure and the
improved resource enable the company to achieve the scope of it in comparison to Lucozade
Energy. The brand Lucozade Energy and the business operations of the brand can be
improved through introducing the products at cheaper rates as that will enable the company to
target the customers of low income group in an efficient manner.

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References:
Falbe, J., Rojas, N., Grummon, A.H. and Madsen, K.A., 2015. Higher retail prices of sugar-
sweetened beverages 3 months after implementation of an excise tax in Berkeley, California.
American journal of public health, 105(11), pp.2194-2201.
Hashem, K.M., He, F.J. and MacGregor, G.A., 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 between 2015 and 2017: monitoring reformulation progress. BMJ open,
7(12), p.e018136.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
Lin, H.C., Swarna, H. and Bruning, P.F., 2017. Taking a global view on brand post
popularity: Six social media brand post practices for global markets. Business Horizons,
60(5), pp.621-633.
Lucozadeenergy.com 2019. Home. [online] Available at https://www.lucozadeenergy.com/
Malik, M.E. and Naeem, B., 2013. Aaker’s brand personality framework: A critical
commentary. World Applied Sciences Journal, 24(7), pp.895-899.
Redbull.com 2019. Red Bull. Red Bull Gives You Wings - RedBull.com. [online] Available
at: https://www.redbull.com/in-en/
Statista.com 2019. Leading 20 energy drink brands in the United States based on sales.
[online] Available at: https://www.statista.com/statistics/235185/leading-20-energy-drink-
brands-in-the-united-states-based-on-sales/

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Suntory.com 2019. Home. [online] Available at: https://www.suntory.com/
Urde, M., 2013. The corporate brand identity matrix. Journal of Brand Management, 20(9),
pp.742-761.