Marketing Mix Analysis of Lucozade and Red Bull

This report analyzes the marketing mix of Lucozade and Red Bull, including their target markets, product strategies, pricing strategies, physical distribution, and promotion strategies. It compares the effectiveness of the marketing planning of both companies and provides recommendations for Lucozade to improve its marketing efforts.

Principles of
marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
FINDINGS.......................................................................................................................................1
Comparison of target markets.....................................................................................................1
Product........................................................................................................................................2
Price.............................................................................................................................................3
Physical distribution or place......................................................................................................4
Promotion....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is defined as the process of getting customers interested in products and
services of a company. It includes all aspects of business such as- development of goods or
product, distribution methods, sales and advertisement of these products (What is the Marketing
Mix, 2020).
Lucozade energy is a soft drink manufacturer which is marketed by Japanese firm
Suntory. The brand is developed in 1927 by Newcastle pharmacist with name of “Gucozade”,
later it was acquired in 1938 by British company Beecham's and sold as “Lucozade”.
Red bull is a energy drink introduced in 1987 and sold by Australian company Red bull
GmbH. In this report marketing mix of Lucozade and Red bull are analysed to know the
effectiveness of marketing planning of both companies. Further comparison between STP of
both firms are discussed.
FINDINGS
Comparison of target markets
Target market of Red bull and Lucozade refers to the potential customers such as their
buying behaviour, income and occupation level, lifestyle which effects the sales of both
companies. Comparison between target market of both firms are critically analysed below:
Basis of comparison Lucozade energy Red bull
Age In terms of age respective
organisation targets people
from 18-30 years old.
On the other hand Red bull
focuses on individuals who
comes under between the age
of 18-34 years old for its target
customers.
Gender Lucozade targets young men
for selling its products and
services (Baker and Hart,
2016).
While Red bull targets male
and females both so as to
increase the sale of firm.
Occupation On the basis of occupation
Lucozade targets teenagers and
On contrast Red bull targets
students, employees and
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youngsters who are engaged in
sports activities.
professionals.
Income level Lucozade focuses on high
income earners for its target
customers because exclusive
prices of its products.
While Red bull targets people
from high to average income
level in order to increase the
sale of firm.
Lifestyle In terms of lifestyle and values
Lucozade focuses on people
who have sport spirit.
On contrary Red bull targets
individuals who are explorer
and ambitious.
Product
It consist as physical goods required to fulfil the needs of customers for which they pay
some value in return. Lucozade has a product range includes original zero, orange zero, pink
lemonade zero, Lucozade fit water etc. essential differences between products strategies and
values with context to Red bull and Lucozade are considered below:
Basis of comparison Lucozade Red bull
Core products The core products of Lucozade
includes energy drinks, sport
hydro active.
On the other hand essential
goods of Red bull consists of
energy drinks, mixed and
cocktail made by non-
alcoholic ingredients.
Colours Lucozade uses bright colours
for its products including
orange, purple, green, yellow
etc. to highlight its products
get attention from customers.
On the other hand red bull
uses attractive colours such as-
blue, red, grey, white etc.
(Perreault, 2018).
Flavours In terms of getting more
consumers respective firm
focuses on variety of flavours
such as topical, orange, lemon,
While Red bull concentrate on
watermelon, blueberry, kiwi-
apple, coconut & berry, etc.
for making its drink tasty and
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apple, pineapple and new wild
berry.
healthy.
Brand personality Lucozade's brand personality
is dynamic with attitude of
“never-say-die”. Can-do spirit
of firm attracts the customers
from ruggedness category who
are tough & masculine
On contrary the brand
personality of Red bull is
excited and courageous and
attracts daring, imaginative
and up-to-date people comes
under the category of
excitement.
Packaging The packaging of Lucozade
energy drink is less attractive
due to use of plastic bottles &
slogan of firm that is
“Lucozade aids recovery”.
While use of cans for
packaging with core message
of “giving wings to people &
ideas” makes it more attractive
and impressive as compared to
Lucozade.
Price
Another important element of marketing mix is refers as the monetary value offered by a
customer in exchange of products or services. Following are the pricing strategies adopted by
Red bull and Lucozade with comparison:
Lucozade energy Red bull
In terms of respective organisation uses
premium pricing strategy for its products in
order to build good brand image. Company has
already a customer base who earns high
income and able to pay high amount for high
quality. Thus, premium pricing strategy is
effective option for Lucozade to increase
profits and revenues of firm as well as high
brand image in the industry (Wu and Li, 2018).
According to this strategy firms sets higher
On contrary Red bull focuses on different
pricing strategies such as competitive,
premium and lower pricing in this element of
marketing mix. Company uses exclusive prices
due to massive awareness and premium quality
and increasing demand of its products. In terms
of increasing sale firm also uses lower pricing
strategy for selling products in bulk with
offering some discount. This strategy is used to
satisfy customers who prefer to buy its
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prices for its premium products to enhance
brand value. This pricing is not suitable in this
global recession time. Due to slowing economy
buying habits of consumer is changed now,
people are switching easily on competitors.
Prices of Lucozade energy is higher than Red
bull which creates a competitive drawback for
respective firm.
products in bulk as its cheaper than purchasing
a single can. Both strategies helps the firm in
gaining customer attention and increasing sale
& profit of business. Red bull also focuses on
lowering its cost from competitor's prices so as
to gain competitive advantage (Festa and et.
al., 2016).
Physical distribution or place
This element of marketing mix considered as the platform for displaying products and
goods so that consumer can asses them. It is the place where customer aware about new features
and products. Physical distribution of Lucozade energy and Red bull is described as under:
(Source: lucozade energy, 2020)
Lucozade Red bull
Respective firm has active effective team
which is responsible for stocked of products in
retail outlets such as- shopping malls, super
markets, hypermarkets etc. which makes
efficient distribution system. Goods and
While items of Red bull are available at
supermarkets, nightclubs. It also stored in Red
bull exclusive refrigerators in order to attract
customers for buy energy drink when they go
to a bar or at grocery store for shopping. It is
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Illustration 1: lucozade energy, 2020

products of Lucozade are available at the
offline stores of firm as well as online
platforms so as to make effectiveness in this
element of marketing-mix (Dadzie and et. al.,
2017). Company has partnerships with
universities to stock its products within their
canteens. Pharmacies tend to stock respective
firms products. Thus, Lucozade focuses on
positioning its goods everywhere so as to
increase the sale of firm and attain attention of
customers as much as possible.
an effective strategy for gaining the attention
of consumers that added a value to sales and
profit maximisation of firm (Wasilewska and
et. al., 2019). Company has a wide distribution
network globally. Red bull's energy drinks are
available at online stores with single and bulk
packs. This shows effectiveness and efficiency
in distribution strategies of firm.
(Source: Red bull, 2020)
Promotion
It is also an significant element of marketing mix which is related to positioning the
products and goods in customer's heads with respect to pull them to buy them. In context of Red
bull & Lucozade following are the promotion strategies with comparison:
Lucozade energy Red bull
In promotional strategy of Lucozade includes
advertisement, direct selling and promotional
campaigns. Advertisement is one of the most
On the other hand Red bull uses different
strategies for marketing of its products and
attracting consumers more n more. Firm
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Illustration 2: Red bull, 2020

used method of respective firm to marketing of
its goods and products. Company uses online
sites like Instagram & Facebook to promote its
products at broader platform. As compare to
Red bull Lucozade energy is less invest on
promotional strategies. Due to less
effectiveness of promotional strategies of
respective firm creates less awareness about its
products and services which reducing the sale
of business. It is the threat for Lucozade and
increases the tough competition in the industry
and leads to failing of marketing strategies.
invested huge amount in arranging events such
as- mountain biking, ALT, BMX, skating etc.
and inviting celebrities and athletes in these
events to promote their brand. Story art and
impressive slogans are the significant part of
its marketing strategies that enhance brand
value of business (HR and Aithal, 2020).
Company promoting its brand in supermarket
stores, night clubs and everywhere to sustain
strong position to beat competitors. This
reflects successful promotion & marketing of
Red bull as compared to Lucozade energy. It is
a competitive benefit for respective
organisation.
CONCLUSION
As per above report it is observed that marketing mix is important for successful
development, launching and acceptance of a product in respective market. Different strategies
are used by both the firms to create effectiveness in elements of marketing mix. Red bull is most
preferred brand as compare to Lucozade energy due to its slightly lower prices, high promotion,
attractive packaging and quality of products. Thus, for Lucozade it is suggested to focus more on
reducing prices and investing more on promotional and marketing activities so as to create
awareness of brand. This will result in sales & profit maximisation of business and rising
customer base of firm.
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REFERENCES
Books and Journals
Baker, M.J. and Hart, S. eds., 2016. The marketing book. Routledge.
Dadzie, K.Q. and et. al., 2017. How firms implement marketing strategies in emerging markets:
An empirical assessment of the 4A marketing mix framework. Journal of Marketing
Theory and Practice. 25(3). pp.234-256.
Festa, G. and et. al., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the
4Es. Journal of Business Research. 69(5). pp.1550-1555.
HR, G. and Aithal, P.S., 2020. Establishing True Lifestyle Brand in India: An Integrated
Marketing Mix Framework. International Journal of Management, Technology, and
Social Sciences (IJMTS),(June 2020). 5(1). pp.261-284.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Wasilewska, N. and et. al., 2019. Evaluation of target market segments for enterprises. Scientific
Journal of Warsaw University of Life Sciences-SGGW-European Policies, Finance and
Marketing. 22 (71).
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Online
What is the Marketing Mix. 2020. [Online] Available through
<https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-
7ps-marketing-mix/>./
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