Target Market and Marketing Mix of Lucozade Energy and Red Bull Energy Drink

This report discusses the target market and marketing mix of Lucozade Energy and Red Bull energy drink, including their strategies for product, price, place, and promotion.

MG412 Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Target Market..............................................................................................................................3
Product /Brand.............................................................................................................................4
Price.............................................................................................................................................4
Place.............................................................................................................................................5
Promotion....................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing mix can be defined as set of actions and strategies that company uses for
promotion of their product and service. Marketing mix differs on the basis of target market of the
company. This report will discuss about target market of and marketing mix of Lucozade Energy
and Red Bull energy drink. Lucozade is a soft drink that is manufactured and marketed by
Japanese company Suntory. Red Bull is an energy drink that sold by Red Bull GmbH, an
Austrian company founded in 1987. Red Bull has highest market share in energy drink market in
world.
MAIN BODY
Target Market
Red Bull has targeted young urban males that live on edge and or aspire to do so. Mainly this
target market and customers in this can be identified with characteristics like interested in
extreme challenging recreational and sports activities. In order to further elaborate target market
of Red Bull it targets international urban population and on the basis of demographic
characteristics these customers targeted have least age of 16 and maximum of 45. On the basis of
gender both males and females both are target customers (Alabbad and et.al., 2019). On the basis
of lifecycle stage it targets bachelors and young age people with no family. On the basis of
income Red Bull targets customers with high income. Further on the basis of social class it
targets middle and upper-class audience. Overall Red Bull has adopted a differentiated target
strategy that it target more than one target market.
Lucozade initially targeted those people desiring little more energy to boost their physical
activity and also targeted patients who needed extra energy to get well. Later brand expanded its
target market and targeted every individual in all ages. Latest marketing activity of Lucozade
targets young men between aged between 18 to 30 years and widen its target market beyond
sport performers. Lucozade further target customers seeking for quality and on the basis of
demographic characteristics man and women both are customers of Lucozade and it targets
middle and upper middle class customers having high income. On the basis of age it targets
teenagers and young adults and those who participate in sport and fitness activities (Quincey,

2016). This is because Lucozade energy drink keeps active for long time that can help people in
sports and fitness activities.
Product /Brand
Product of Red Bull is non-carbonated energy drinks and in order to bring variations from its
standard flavour, this is because different flavours of energy drink can suit different customer
requirements and desires. Other than flavours from fruits, Red Bull also offers sugar-free drink.
This is aimed at fulfilling requirements of customers seeking sugar-free drinks as millennial
customers have strong demand for sugar-free drinks. Red Bull product also contains caffeine,
taurine, B vitamins, sucrose and glucose mainly needed by those who are in sports or in manual
activities. Other than this, Red Bull is also a product for people who want to party at night.
Product refers to offering of the company in exchange of which company demands price from
customers. Lucozade is a product that is designed to boost energy level among its users.
Lucozade come in several forms and enable customers to select product (Išoraitė, 2016). Earlier
product was made to aid recovery with extra energy and was made for sick people. Later,
product was made available for everyone requiring extra energy during sports and exercise.
Products of Lucozade involve Lucozade Original, Lucozade Orange, Lucozade Pink Lemonade
introduced in 2013, Lucozade Caribbean Crush introduced in 2013, Lucozade The Brazilian
introduced in 2014 and several other products. Other than this, certain products of Lucozade are
also sold in Zero Energy products.
Price
Red Bull has several competitors and still Red Bull is market leaders and this is why strategy of
Red Bull is that of a market leader and company along with this has adopted a competitive price
strategy. Competitive price strategy is one in which company’s price strategy is affected and
influenced from price strategy of its competitors. However even with its competitor price
strategy Red Bull because is market leader charges premium and their high quality is also one of
the basis for charging premium price. Other than this, because of premium quality and effective
brand image Red Bull has become first choice for customers and hence price is not an important
element in buying Red Bull. Even though customers buy Red Bull in bulk because this way
buying Red Bull is cheaper than buying single can of Red Bull.

Price refers to monetary value that customer pays for a product or products that is paid by
customers in exchange of the product (Wu and Li, 2018). Lucozade also adopt a competitive
price strategy in which its price gets affected competitors price and this also varies on the basis
of products and specific features of product. This means that certain flavours are provided at
different cost and certain are at other cost. In order to ensure its quality perception it does not
lower its price and remains at premium range. Price plays a very important role in success of
products and this is why it requires being determined effectively. Understanding of consumer
mind also plays important role in success of effective price strategy.
Place
Place refers to point where buyer and seller meet each other in order to exchange value. Red Bull
has vast distribution network worldwide and Red Bull is conveniently available at locations like
a supermarket, convenience store, retail outlet, even night clubs, bars and casinos. This way it
becomes very easy for customers to buy Red Bull. Concerned with place Red Bull is often kept
and stores in exclusive refrigerators of Red Bull, these facilitate identifying Red Bull and this
way Red Bull also manage to attract customers to buy an energy drink when they are places like
supermarket. Red Bull is also available online in bulk packs or in single packs as well in way
customer likes to buy customers. Another effective place strategy for Red Bull is selling it at
night clubs is that many of the times customer prefer to mix it with other beverages and also it
targets customers willing to party.
Lucozade has become a household name in several countries of the world. Place strategy
involves availing Lucozade at retail outlets and Lucozade has strong team to ensure its products
are stocked in retail outlets like supermarket, hypermarkets, shopping malls, and other outlets
(McCarthy, 2017). Lucozade also ensures that products of Lucozade are also stocked at canteens
of universities and other learning institutions. This way Lucozade make it easy for customers to
find products of Lucozade and there is strong availability of Lucozade energy drinks. Success of
Lucozade energy drink can also be attributed to strong availability of Lucozade energy drinks at
places where customers are most likely to buy such products. Other than these places products of
Lucozade are also sold at online stores in order to ensure its availability to online customers.
Increasing online customers has become very important for Lucozade energy drink to ensure its
success in changing times and business environment situations.

Promotion
Promotions of Red Bull are famous with its tagline that is ‘Red Bull gives you wing’ and this is
able to attract customers towards Red Bull (Visram and et.al., 2017). Further in order to connect
with target market and audience Red Bull organise several sports events and also sponsor teams
and also organise and sponsor other events. Other than this, Red Bull also endorse various sports
athletes and celebrities. Other than this, Red Bull also has a Red Bull House of Art where
company encourages artists to display their art in a period of 3 months at their exhibitions.
Promotional content of Red Bull is also available on TV and other media devices. Further Red
Bull also has their own merchandise stores online and magazines for extreme sports persons.
Promotion refers to activities through which organisation communicates with target market
customers. Lucozade energy drink is promoted through different forms of advertisement, use of
promotional campaigns, and direct selling. Advertisement involves means of TV, newspaper,
and other media platforms to communicate with target market and potential customers.
Advertisements are also promoted through internet and digital channels. Lucozade also utilise
alliances in which Lucozade and Spotify music application and this way it can communicate with
customers through several means (McCrory and et.al., 2017). Other than this, it also uses
celebrity endorsement for the purpose of promoting its products and services.
CONCLUSION
On the basis of above discussion, it can be concluded that Lucozade and Red Bull energy
drinks are operating and functioning in same industry even when target market and marketing
mix elements of organisations are highly different. Key difference is in their positioning and
their product strategy. This means that Lucozade involves health element in its products whereas
Red Bull energy drink involves sugar-free element in its marketing mix. However, there is not
much difference in place strategy as both are sold at retail outlets and both are sold on online
channels.

REFERENCES
Books and Journals
Alabbad, M.H and et.al., 2019. Determinants of energy drinks consumption among the students
of a Saudi University. Journal of family & community medicine. 26(1). p.36.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
McCarthy, A.C., 2017. Reading the Red Bull Sublime. PMLA. 132(3). pp.543-557.
McCrory, C and et.al., 2017. Perceptions and knowledge of caffeinated energy drinks: results of
focus groups with Canadian youth. Journal of nutrition education and
behaviour. 49(4). pp.304-311.
Quincey, A.J., 2016. Red Bull: The Wiiings Migration.
Visram, S and et.al., 2017. Children and young people’s perceptions of energy drinks: A
qualitative study. PloS one. 12(11). p.e0188668.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.