Marketing Mix Strategies of Lucozade and Red Bull

The report compares the marketing mix strategies of Lucozade and Red Bull, two popular beverage brands. It examines their positioning strategies, segmentation, targeting, and marketing mix tactics. The analysis reveals that Red Bull has a stronger marketing mix and a larger consumer base, while Lucozade needs to improve its product quality and pricing strategies.

MARKETING MIX

Executive Summary
Report has highlighted the marketing mix tactics of Lucozade and Red Bull. Both the companies
have adopted different pricing strategies, promotional strategies, product strategies. They have
gained market share because of these tactics.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Marketing mix of Lucozade and Red Bull..................................................................................3
2)Marketing mix..........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to designing and developing different elements of marketing. So that,
company can attract targeted customers to buy the product and services. Marketing mix refers to
combination of factors that are used by an organization to achieve its organizational objectives.
It includes 4 P's like, product, place price and promotion.
Lucozade is a type of soft drink. Its manufacturer is Lucozade Ribena Suntory. It was
launched in United Kingdom in year 1927. Drink is available in different flavours like, Lucozade
Cherry, Lucozade Orange etc.
Red Bull is a type of energy drink. Its main distributor is Red Bull GmbH. It was established
in Australia in year 1987. Main products are Red Bull Cola etc. Report will highlight the
marketing mix of two companies that is Lucozade and Red Bull.
MAIN BODY
Aim- To analyse the marketing mix tactics of Lucozade and Red bull
Research methods- Primary and secondary research method will be used in the study. Primary
research is the first hand data collection. Secondary research is the finished data. It uses primary
research sources as a source for data analysis.
Marketing mix of Lucozade and Red Bull
The segmentation, targeting and positioning process of Lucozade and Red Bull are as follows-
Lucozade-
Segmentation-
It is a process of segmenting the market on the basis of various factors. After
segmentation, company will choose a target market to satisfy the needs of targeted customers.
The segmentation strategy Lucozade should be consistent with the objectives of the company.
Example- increasing the market share etc. It is also according to the strength's weakness of the
company and opportunities and threats of external marketing environment. Company uses
different methods of segmenting the whole market for its products. Like, geographic,
demographic, psychographic, benefits and behavioural etc. In demographic method of
segmentation, company has segmented the market on the basis of income, age of the population.
Another method used by the company is on the basis of benefits of the drink like, boosting the
energy, different flavours like, Lucozade Cherry etc.

On the basis of behaviour segmentation, company has segmented on the basis of brand
loyalty (Abril, 2016).
Targeting-
Targeting means selecting a homogeneous group of customers to satisfy their needs.
Company has targeted the population between 18-35 years’ age group it includes male and
female both. Target market of Lucozade consist of customers of different culture. So that,
company can influence them to buy the product. And provide them better quality experience.
Company mainly focuses on targeting youths. For targeting a specific customer group, firstly, the
company evaluate its segmented market to identify the need of customers for Lucozade.
Company will identify how effective the market is on the basis of certain criteria. Company takes
into consideration that, whether the segment is as per the company's objectives, resources etc.
The main target of the company is people between the age of 18-35. Lucozade is targeting the
consumers on demographic basis
Positioning-
It refers to the process through which company positions its brand in the mind of targeted
customers. Company follows sports based positioning to position its products through
advertising and using promotional techniques. So that, company can position the brand image in
the minds of youth that are mainly involved in sports activities because generally youths
consume energy drinks to boost their level of energy and stamina. Firm is making use of cost
positioning strategy in which they lower the price of the product and then offer it consumers. In
this strategy the also increase the quality of goods.
Red Bull-
Segmentation-
Red bull GmbH segments the whole market in different homogeneous groups of
customers on the basis of certain criteria. Company uses different methods of segmentation for
its different products. Company segments the market on the basis of demographic factors like
age, gender, income etc. It also uses psychographic method of segmentation under which, the
company divides the whole market on the basis of lifestyle, loyalty of the customers, attitude of
customers towards the brand. Red Bull uses different marketing strategies for semi urban and
urban areas. (Baker, 2016).
Targeting -

Under demographic segment, as compared to Lucozade, Red Bull mainly targets young
population from 25-35 age group. In case of behaviour segmentation, company mainly focuses
on targeting its loyal customers that are frequently buying the products of the company as well as
its first time customers. To increase the demand and market share, company also targets cinema
halls, restaurants and bars. Under psychographic segmentation, company targets different class
of customers like social and economic class.
Positioning-
As compared to Lucozade, Red Bull focuses on satisfying the needs and demands of a
particular segment of customers. It is also called positioning on the basis on mono- segment.
Company make use of the attribute positioning strategy in which they focus on main attributes of
the product.
2)Marketing mix.
The marketing mix of Lucozade and Red Bull are as follows-
Figure 1: 4 P's of marketing
Source: (Marketing mix, 2015)
Lucozade-
Product- Lucozade is a type of soft drink. Manufacturer of the product is Lucozade
Ribena Suntory Limited. It is available in different flavours like Lucozade Cherry, Lucozade
Original, Lucozade etc. Products of the company that are mainly sold in Australia are Lucozade
Original and Lucozade Orange etc. The main benefit of Lucozade is that it provides high level of
energy to its consumers and it also helps to maintain hydration in body during exercise. As
compared to Red Bull, the main ingredients Lucozade are glucose, antioxidant, citric acid etc.

Lucozade Sport is having great taste and it is a sports drink with low calorie. It is available in
orange colour packaging.
Price- As compared to Red Bull, Lucozade follows Differential pricing strategy. Company
charges different price for the same product from different category of customers. Company
charges the price for Lucozade as per the customers' willingness to buy the product. Company
charges the different prices for its products through differentiation in packaging, benefits etc. as
compared to its competitors like Powerade, Gatorade etc. It charges different prices for Lucozade
energy drink and for Lucozade sports drink. Lucozade sports in orange flavour is available at
£11.99, Lucozade sports fit water is available at £10.68 etc.
Place- Company has a strong distribution channel to deliver the products at different
locations worldwide. It sells its product through different local channels. It has bottling partners,
merchandise and distributors are responsible to sell the products (Išoraitė, 2016).
Promotion- As compared to Red Bull, Lucozade uses pull strategy of marketing which
means that, company is investing on advertisement and promotional strategies so that, it can
increase the demands of the customers for the products of the company. And they will be
motivated to buy the product. Company has launch on pack offering to increase its sales by
giving a chance to their customers to win daily prizes. It has separate page on social media
platforms like, Facebook and Instagram etc. Through promotional techniques, company is
focussing on the shape of bottle of Lucozade. Company is reaching to a large geographic area
through various campaigns like, Energy Beats Everything. Push strategy means, company is
directly selling to consumers without involvement of distributor ex. Through campaign that also
includes digital marketing, outdoor activities (Serrat, 2017).
Red Bull-
Product- Red Bull contains ingredients like, sucrose, caffeine and glucose that provides
good taste to customers. It also helps in boosting the energy. Company positions its brand image
with the help of slogan that is, 'Red Bull gives you wing'. Drink helps the consumers to remain
mentally and physically active. It is available in eight different flavours. Company mainly
focuses on youths and sports persons. The can of Red Bull is of blue and silver colour. Sugar
free Red Bull is also available that contains acesulfame K instead of glucose. The target market

of company is people aged between 25-45, as Red Bull increases the energy level of people
which is very much required at this age.
Price- Red Bull uses Premium Pricing Strategy for pricing its products of different
flavours because, company offers high quality of drink to its targeted customers. Company is
gaining competitive advantage over its competitors like, Monster, Cloud 9 etc. It is at top
position in the market. Company spent huge amount of money to buy the product, it has strong
distribution network. Due to all these factors company is charging premium price for its
products. Company is charging higher price as compared to its competitors then also customers
prefers to buy the product of the company due to brand loyalty that company has (Kotler, 2015).
In contrast Lucozade is making use of differential pricing strategy where they charge different
price to different consumers.
Place- Products of the company are available at various locations. Like, in convenience
stores, supermarkets, bars, night clubs and in casinos etc. Company has a strong distribution
network across the globe. Company has its operations in more than 171 countries. As per survey
in 2018, company has sold more than 61 billion cans worldwide. Red Bull is available in single
cans as well as customers can buy the product online. So, it is very convenient to buy the
products of Red Bull from any place. In contrast Lucozade is making use of local channels to
deliver its product.
Promotion- Red Bull mainly targets sports peoples through its slogan ' Red Bull gives you
wings'. Company also organizes many sports functions like skating, windsurfing, mountain
biking etc. to attract targeted customers. It also sponsors various teams. Company also have
brand ambassador like celebrities to promote its brand. T.V. Of Red Bull brand is also available
for airing different types of festivals, performances etc. So, in different ways company is creating
its brand awareness among targeted consumers. In contrast Lucozade is promoting through social
media platform. (Wu, 2018).
Summary of the findings
It has been found out both the companies Has increased their market share by making use
of marketing mix tactics. It has helped them in growing.
CONCLUSION
The above Report described the segmentation, targeting and positioning of two different
brands that are Lucozade and Red Bull. Under this, the Report has explained the types of

positioning strategy used by both the brands. Report also described the marketing mix of both the
brands.
Red Bull is more successful as compared to Lucozade because, it has a strong marketing
mix, large base of loyal customers who are ready to pay premium price because of high quality
of product. Red Bull has better marketing mix strategies than Lucozade. They have a huge
consumer base and product line. Lucozade needs to improve the quality of their products and
change their pricing strategies by analysing the competitors.

REFERENCES
Books and Journals
Abril, C. and Rodriguez-Cánovas, B., 2016. Marketing mix effects on private labels brand
equity. European journal of management and business economics.25(3).pp.168-175.
Ahmed, S. and Rahman, M., 2015. The effects of marketing mix on consumer satisfaction: A
literature review from Islamic perspective. Turkish Journal of Islamic
Economics.2(1).pp.17-30.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and beyond.
Journal of Services Marketing.31(1). pp.16-19.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. pp.2394-3629
Jackson, G. and Ahuja, V., 2016. Dawn of the digital age and the evolution of the marketing mix.
Journal of Direct, Data and Digital Marketing Practice.17(3). pp.170-186.
Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
Serrat, O., 2017. Marketing in the public sector. In Knowledge Solutions (pp. 111-118). Springer,
Singapore.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce: A stimulus-organism-response perspective. Internet Research. 28(1).pp.74-
104.
Online
Marketing mix. 2015. [ONLINE] Available through:
<https://www.investopedia.com/terms/m/marketing-mix.asp>