Marketing Strategies of Lucozade and Red Bull: A Comparative Analysis

Desklib provides past papers and solved assignments. This report compares Lucozade and Red Bull's marketing strategies.

PRINCIPLES OF MARKETING

Table of Contents
INTRODUCTION.........................................................................................................................................3
COMPARISON OF TARGET MARKET.................................................................................................3
PRODUCT/ BRAND.................................................................................................................................3
PRICE........................................................................................................................................................4
PLACE OR DISTRIBUTION...................................................................................................................4
PROMOTION............................................................................................................................................5
CONCLUSION..............................................................................................................................................6
RECOMMENDATIONS...............................................................................................................................6
REFERENCES..............................................................................................................................................6

INTRODUCTION
Lucozade Energy Vs Red Bull
Lucozade was launched in 1927 by the chemist and basically sold in the hospital in order to
make the recovery of patients but they changed their market and convert their slogan from
“Lucozade aids recovery” to “Lucozade replaces lost energy" in 1985. They changed their focus
from medical drink to everyday drink after repositioning of a brand in 2003 they included
Lucozade sport which was aiming to replace the lost vitamins due to physical activity, which was
successfully accepted by the audience. In 2009 it comes in competition with energy drink brands
such as red bull as Lucozade has introduced mental boost which was the good step to enter in
energy drink market (Lancaster and Massingham, 2017). And in 2010, they were aiming to
attract the opposite sex by launching Lucozade lite to target female customers, which was
attracting fitness conscious females as it contains low calorie.
Red Bull was born by a local entrepreneur in 1987in Australia. Then it comes to the UK in 1995
and met with the accident, it was found that this drink consists harmful ingredients which can
create side effects while consuming and get banned in many cities like Denmark, France,
Norway and Uruguay. In 2003 they come up with the credibility of health consciousness and
launched sugar-free options in the market. In 2009 they introduced red bull shots but again failed
in the market of the UK but it has received a good response in the US. In 2010 red bull takes on
coca cola as cola is the only biggest drink in the UK which is like by every consumer (E. Kunz et
al., 2016). Now the company is having operations in 160 countries and around 4 billion can sell
every year by the company.
COMPARISON OF TARGET MARKET
Both the companies have a similar target market as they target mainly males between the ages of
18-35. In 2009 the market of soft drink was worth of 8.32bn and in 2010 the market of energy
drink worth 550m. The effectiveness of the marketing strategy of both companies is brilliant.
PRODUCT/ BRAND
Lucozade is a glucose bubbly drink. This is a highly energetic concentrated drink which quickly
dissolves in the blood digests easily and provide instant energy. Since the company is started

they have concentrated towards the development of new products always. The company has four
product line- Lucozade, Lucozade energy, Lucozade Sport and Lucozade alert (Hanrahan, 2019).
Lucozade energy was introduced in 1929 in order to provide an energy boost to the males. It
mainly focuses to provide the glucose fuel to the men's who are involved in physical activities.
This drink has six flavours- original, orange, lemon, cherry, tropical and apple.
Lucozade sport was introduced in 1991in UK in order to satisfy the needs of sports lovers like
athletes or players. It is basically known as a sports drink. It also provides fitness water that is
Lucozade sport hydro-active for gym goers and exercises. They are providing low calorie drinks
also called as Lucozade sport lite that contains only 50 calories especially for women’s.
Lucozade alert was introduced to improve the mental performance which contains low calorie
with a great lemon refreshing flavour. To improve the concentration, alertness and focus of a
person it contains caffeine (Hanrahan, 2019).
Now if we talk about red bull drinks they have introduced many series of flavours according to
the taste and needs of the consumers such as coconut, cranberry, blueberry, kiwi and tropical
fruits. After analyzing the customer's needs as they want sugar free drinks, thus red bull has also
launched red bull sugar-free. Other than energy drinks red bull also provide red bull mixers
which are the mixer of mixed drinks and cocktails that are non-alcoholic (SCRIBD, 2019). This
company has launched this mixer drink to enhance the flavour of drinks as it makes the drinks
more savoury, more sour and sweeter because mixer helps in lowering the volume of alcohol.
This mixer drink is growing popular amongst the youngsters as it is already launched in Canada
and now slowly it's evolving.
PRICE
In comparison to red bull, Lucozade is cheaper as it’s an older company they have more
experience manufacture the products with cost efficiency.
Price of 100ml bottles are-
Lucozade- 0.78-1.30 and 10.0p -20.5p
Red bull- 1.35-2.02 and 38.9p-54.0p

Red bull has many competitors in terms of pricing but the red bull is always considered as the
market leader. Red bull has premium prices for its product because of its dominant position and
high quality in the market. Easy reach and high brand awareness made the red bull to use the
premium pricing strategy for its products (SCRIBD, 2019).
Instead of having costlier prices in comparison to its competitors, customers have always
preferred this premium brands just because of brand loyalty it has.
PLACE OR DISTRIBUTION
Place refers to the fast-moving and zestful areas used for marketing. It includes the movement of
a wide variety of fascinating goods and services from one point to another. Lucozade is selling
its product in many places of the United Kingdom which include distribution chain and retail
chains such as sports centre, schools, gyms and stores like bread stores and pudding stores
(Jankovic, 2012).
In 2018, a red bull has successfully sold the 61 billion of red bull drinks over the 171 countries.
The presence of red bull everywhere has made the red bull as the brand, they are available in
grocery stores, nightclubs and supermarket. Red bull is stored in attractive and exclusive
refrigerators which attract the customers to buy the red bull drink from grocery stores while
shopping. To make buying easy for customers, this company is also providing its drinks online
so that customer can easily buy the drinks in bulk at cheaper rates (Singh, M., 2012.). Red bull is
placed in the supermarket with their competitive products to give the choice to consumers,
whatever they want to buy.
PROMOTION
Sponsorship and advertising- Lucozade are very good at using the promotional tool for
advertising and sponsorship to promote their product. If we talk about TV commercials they are
always one step ahead as they release ad campaigns for the different target market. In early times
their target market was mothers for their sick children's in 1960 the ad came where mother was
giving lucozde to her ill children for a quick recovery. And in 2004 this company was aiming

towards target the sports lovers who love to do a physical exercise where on TV commercial they
showed Daley Thompson Olympic champion in the TV ads. And 2001 they were focusing to
target the teenager's famous video of Lara Croft that is a famous character among teenagers and
children. On the other hand, the company also sponsors sports events, famous players and teams
in the games (Jankovic, 2012). For example sponsorship of athletics through smithline Beecham
for its reinforcement of brand Lucozade sport and strong market positions in associations of
energy.
Collaboration with iPod- nowadays we can see the increasing fans of Apple who hold the
iPhones in their hands all the time, Lucozade has utilized this opportunity by launching the
fitness coach which can be downloaded by any person as it's a free software that helps the person
to stay fit and healthy. And the most interesting thing they have done to market their drinks, they
have offered iPhone as winning prices at every hour if they buy the bottles of Lucozade energy.
On the other hand, red bull is spending millions to promote their products in order to stay on top
of the minds of consumers. To promote their products the company has used the Digital
channels, ATL and BTL to create full awareness about the product.
To communicate with customers red bull has used the art of storytelling cracked the customers.
Which helps in create loyal customers base and heights of grand achievement.
RED BULL GIVES YOU WING
I am sure everybody has learned this slogan, it is left in our mind through many marketing
campaigns and channels (SCRIBD, 2019). To attract the target audience which is younger
customers, red bull is using three significant strategies to grab them-
1. Producing awesome content: the content of red bull created by their marketing team is on
another level that might be consumed by other media outlets for their content.
2. Enormous publicity stunts: red bull organizes massive publicity stunts "go big or go
home" that has caused people shocked and make them watch to know what happens next.
3. Creating and sponsoring events: red bull creates the things which are loved by their
audience they do sponsorships and develop or create events for them.

CONCLUSION
Through this assignment, we have concluded that both the companies have some kind of
similarities as they both target young people. Both the company is very good at promotions of
their product, they spend their thirty per cent of annual turnover in marketing and sponsorships.
If 2we see the growth of red bull as it’s an energy drink which was firstly introduced in 1987 has
become the most and highest selling beverage brand only because of its marketing tactics. On the
other side Lucozade is known as the first energy drink, and the strongest brand in the energy
drink market, many competitors have come to compete with the Lucozade but the most powerful
competitor is considered by Lucozade is red bull due to its strong brand loyalty base customers.
RECOMMENDATIONS
Lucozade has made its product line successfully by extending their brand but somehow red bull
is unable to carry out the expansion of its product line even after the launching of a sugar-free
version of red bull in 2003. Thus Lucozade is taking advantage of its market position in the
competition so, red bull needs to work on expanding their product line successfully.

REFERENCES
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March 26, 2019.
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https://www.lucozadeenergy.com/ last accessed on March 26, 2019.
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https://www.scribd.com/doc/19489027/Red-Bull-s-Marketing-Mix last accessed on
March 26, 2019.
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