4Ps for Red Bull and Lucozade .

This article discusses the marketing mix of Red Bull and Lucozade, including their product, price, promotion, and place strategies. It explains how these strategies help them meet the needs of their target market. Red Bull is a non-carbonated energy drink that primarily targets sports individuals, while Lucozade is a carbonated drink that is 100% glucose and targets physically active individuals. Both companies have different pricing strategies, with Red Bull charging premium prices due to its market leader position, while Lucozade is competitively priced higher than the market average. Both companies use advertising and sponsorship as instruments for product promotion, and they have a vast distribution network globally.

4Ps FOR RED BULL AND LUCOZADE 1
4Ps for Red Bull and Lucozade
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4Ps for Red Bull and Lucozade 2
Product
A product can be defined as a commodity that the market gets the desired benefits from.
It is the foundation of all marketing endeavors as it is through it being purchased in the market
that business enterprises can justify their existence. Thus, the products reveal the characteristics
of a product and how such features assist in meeting the needs of the market.
Red Bull is a non-carbonated energy drink that originated from Thailand ingredients of
Red Bull are identical to those of Western beverages so that it can accommodate the taste from
such countries and it is now carbonated just like many western drinks. Red Bull energy contains
ingredients such as caffeine, Vitamin Glucose that is primarily required by workaholics, sports
individuals, and youths who are often attached to parties during the night (GlaxoSmithKline,
2011). The rising trend among the youth segment led Red Bull to introduce sugar free drink
called Red Bull sugar free and contains aspartame and acesulfame in substitute of sucrose and
glucose. The drink is available in cans that blue-silver with two red bulls on the front. Lucozade,
on the other hand, is a carbonated drink that is 100% of glucose.
Lucozade is a highly concentrated source of energy that is quickly assimilated into the
bloodstream. The company strives on developing new products, and since 2010 it has launched
four different products such as Lucozade Energy, Lucozade sport among others. Lucozade
energy was the original product and was developed with the aim of providing energy for
purposes of rejuvenation. The drink offers glucose fuel for physically active individuals.
Lucozade is also available in different flavors such as orange, lemon and tropical. Lucozade
sport, on the other hand, was launched in 1991 and was ranked as UK’s first isotonic drink. It
was introduced for purposes of meeting the needs of athletes, players in football and people who

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are lovers of sports. In this segment, Lucozade developed Lucozade Sports Hydro Active, and it
is fitness water designed for people who love exercises and gym (Ogilvy & Mather, 2011).
Lucozade Alert, on the other hand, was established to assist in sharpening mental performance
and is a low-calorie product as it only contains 45 calories in a bottle which has an ideal
refreshing lemon flavor. The drink also contains caffeine which assists in improving focus,
concentration, and activeness.
Price
The price is an essential element in the marketing mix as it determines how the product
will be perceived and how well the commodity sells in the market (Hanrahan, 2009). Most
products have been found to sell at lower prices which has the effect of attracting a large
customer base. However, in the case of high products, low rates may be counterproductive. The
understanding of customer psychology is imperative in facilitating that the pricing strategy
embraced leads to the generation of the desired outcome.
Energy drinks being high-value products makes consumers who use them in most cases
prefer products that they deem to be of high quality and price here is the only indicator of the
quality of the product. Although Red Bull has several competitors in the industry of energy
drinks, they are still leaders of the market. Hence Red Bull’s pricing strategy is that of a market
leader that is based on competitor pricing. The fact that they are on top enables them to charge
premium prices for their products and customer still purchase their products due to the excellent
quality of their products. Since Red Bull was first in this category of energy drinks, customers
will always choose it as the preferred drink, and its demand will never decrease. Most people
prefer purchasing Red Bull in bulk as it is cheaper compared to buying a single can. Lucozade on
the other hand since it has been a historical company has managed to gain more experiences that

4Ps for Red Bull and Lucozade 4
have enabled Lucozade to learn how to reduce the cost of their products making it cheaper
compared to Red Bulls. Lucozade being competitively priced higher compared to the market
average has enabled the company to build a high-quality image in the market. The pricing
strategy was, however, one of the drawbacks for Lucozade as the customers went for more
cheaper products due to their diminished purchasing power parity. However, as the economies
regain, growth patterns have been seen.
Promotion
Lucozade has been very effective at using advertising and sponsorship as instruments for
product promotion. With regards to ad campaigns, their advertisements on televisions have been
able to keep up with the dynamic target market (Ranchhod & Marandi, 2007). For instance,
when it was used to boost the health of ailing children at first, their target audience was the
mothers since the first commercial in 1960 involved a sick boy who took Lucozade with his
mother for his recovery. The company had also used Daley Thomson an Olympic decathlon
winner targeted athletes and lovers of sports when it was aired on TV. The desire to attract
teenagers and young people led Lucozade to use Lara Croft a character popular in video games
such as Tomb Raider since most teenagers are lovers of video games. Lucozade has also been
influential in supporting and sponsoring favorite players and teams. Based on David Jobber
interview, he revealed that the sponsorship of athletes by SmithKline Beecham with regards to
its Lucozade sports brand is strategic in position Lucozade in both the market and energy
associations.
Red bull serving as an energy drink on the other hand primarily targets sports individuals
with their famous tagline that it gives you wings to fly (Mbaskool, 2011). It is for such reasons
that have seen Red Bull due to its vast customer base organize most of the sports events and even

4Ps for Red Bull and Lucozade 5
going a mile further to sponsor both teams and events. For instance, some of these events entail
biking, Formula 1 as well as surfing among many functions. Red Bull has also been endorsing
some athletes in sports as well as celebrities. Apart from the games, Red Bull owns Red Bull
House of Art where artists are encouraged to demonstrate their art in three months during such
exhibitions. Red Bull also has online merchandise stores, and magazines all meant for catering
the needs of extreme sports individuals. Such promotional activities are aimed at enabling
customers to recall their brand whenever they see or hear Red Bull, and this is instrumental in
increasing the customer base, and this covers the marketing mix of the energy drink.
Place
This element of the marketing mix refers to the accessibility of the products to the target
audience. Lucozade seems to be gaining the audience as a household brand in many regions of
the world with a good number of retail outlets stocking Lucozade products. Lucozade has an
active team that facilitates the stocking of the company’s products in retail outlets such as the
supermarket, shopping malls, and the hypermarkets. The facilities that provide health care such
as pharmacies have also been found to stock the products by Lucozade. Lucozade also partners
with learning institutions such as the universities across the globe in stocking their products in
canteens belonging to such institutions. Thus, Lucozade is easily accessible for people wishing to
consume Lucozade would not have to strain in their search for the product. Consumers hate
going extra miles to find a product they want to purchase and thus would prefer going for the
next best alternative in the event they don’t see their preferred choice of product. Inefficiency in
the distribution system may impact the company negatively with regards to lost sales. The
efficient distribution system by Lucozade keeps the customers serviced and contented with the
brand.

4Ps for Red Bull and Lucozade 6
Red Bull has portrayed massive success as it sold more than 5.9 billion cans globally in
2015 due to its vast distribution network globally. The convenient locations where Red Bull can
be found in places such as the supermarkets, retail outlets, casinos, and bars make it easy for
consumers to access the product. Red Bull is often stored in Red Bull exclusive refrigerators and
this lure customers to purchase the energy drink whenever they visit a grocery or a supermarket.
Red Bull can also be ordered online in bulk or as single cans, and this makes it easier for
customers who want to purchase it in bulk. The primary motive of this drink in bars or nightclubs
is that it is either consumer prefer mixing it with another drink to add some flavor or want the
drink to keep them awake so that they can continue partying with friends. The product is stocked
in supermarkets and convenience stores where it is packed with other competitive products
enabling the customer to choose between what to purchase.

4Ps for Red Bull and Lucozade 7
References
GlaxoSmithKline, 2011. GlaxoSmithKline Annual Report 2010.. [Online]
Available at: http://www.gsk.com/investors/reps10/GSK-Annual-Report-2010.pdf
[Accessed 6 December 2018].
Hanrahan, W., 2009. Market Audit: Sports and Energy Drinks Market.. [Online]
Available at: http://www2.warwick.ac.uk/alumni/services/eportfolios/bsqjfb/redbull.pdf
[Accessed 6 December 2018].
Mbaskool, 2011. Red Bull Marketing Mix (4Ps) Strategy. [Online]
Available at: https://www.mbaskool.com/marketing-mix/products/16734-red-bull.html
[Accessed 6 December 2018].
Ogilvy & Mather, 2011. Lucozade Sport: Longterm Effectiveness.. [Online]
Available at: http://www.ogilvy.ie/documents/Lucozade_Sport_Study.pdf
[Accessed 6 December 2018].
Ranchhod, A. & Marandi, E., 2007. CIM Course book 07/08 Strategic Marketing in Practice.
07/08 ed. Oxford: Butterworth-Heinemann.