A Comparative Analysis of Marketing Strategies: Lucozade and Red Bull

This report offers a comparative analysis of the marketing strategies employed by Lucozade and Red Bull, two prominent energy drink brands. The report begins with an introduction to the significance of marketing strategy and its impact on consumer behavior. It then delves into a detailed examination of the marketing mix elements for both brands, including target market segmentation, product/brand positioning, pricing strategies, distribution channels, and promotional activities. The analysis highlights the distinct approaches each brand takes to reach its target audience, with Lucozade focusing on the sports and energy market and Red Bull targeting urban males. The report also explores the application of the STP framework (Segmentation, Targeting, and Positioning) by both companies, along with their product development strategies, pricing models (premium pricing), distribution networks, and promotional campaigns, including advertising and sponsorships. The conclusion emphasizes the importance of adapting marketing tactics to achieve growth and success within the competitive energy drink market, summarizing the key differences and similarities in their approaches and offering insights into their effectiveness.

Principles of
Marketing

Table of Contents
Introduction .....................................................................................................................................3
1. Target Market ..............................................................................................................................3
2. Product /Brand.............................................................................................................................5
3. Price.............................................................................................................................................6
4. Place ( Distribution) ....................................................................................................................6
5. Promotion ....................................................................................................................................6
Conclusion ......................................................................................................................................6
References .......................................................................................................................................7

Introduction
Marketing strategy seems out to be crucial and the most important factor for the
organisation because it plays a major role in the market and it includes strong analysis between
the buying behaviour of the products and selling of various products. Marketing is significantly
reflected out as one of the major aspect in business which efficient and prominently focuses on
the principles of marketing because it directly related to the buying behaviour of producers and
consumers (Onwangprem and et. al., 2020). The two organisation which have been selected for
the discussion are Lucozade and Red Bull energy drink.
This discussion also includes the marketing mix model of both the organisation and a
efficient comparison based on both the organisation. It can be suggested that Lucozade is an
efficient and most purchase soft drink in the Japan and it was came in 1927 in the United
Kingdom as “Glucozade” by a famous pharmacist of Newcastle, known as William Walker
Hunte. Comparison to this, an another organisation firmly known as Red bull is the most energy
drink among the urban males and it is owned by the company of Austria Red Bull GmbH and
was founded in 1987.
1. Target Market
The target market seems out to be the most effective and an amazing component because
the target market enables in increasing the sales and purchases of the products. The major goal of
the target market is to have consumers who have a single objective in increasing the efforts in the
marketing. Researchers also suggested that the target market is an ability to increase sales and
reputation in the market. The target market of Lucozade is a successful company in the industry
of the sports and energy. According to the various researchers, suggested that the energy drink
Lucozade has been majorly focus on the mens which are in the age group of 18 to 30 years
because Lucozade energy drink has the major aim to broader the target market and wider the
performance in sports (Matei and Săvulescu, 2019).
If taking an example, the Lucozade brand energy sports drinks are specifically made for
larger size of person and it includes not only athletes but other person as well. In comparison to
this, the Red Bull energy drink has the highest and the strongest market share as well as revenue
in the market. It can be possibly attained because the target market of the Red Bull are generally
the urban males and also some big personalities including athletes and celebrities. A statement

suggested that those consumers who have a major and high interest in the sports and challenging
activities are genuinely interested in buying Lucozade as well as Red Bull energy drink.
Various challenging activities and sports interested consumers are greatly interested in the
Lucozade and Red Bull energy drink. STP( Segmentation, Targeting and Positioning) is signified
in the target market (Devagirikar and Sendhil Kumar, 2019).
Segmentation, targeting and positioning (STP) is one of the framework which is
important for implementing in the organisation to get an analyse done on the basis of setting the
target audience in the market. Market segmentation is one of the crucial process in which buyers
are efficiently divided in the market on the basis of different tendencies and characteristics. The
market segmentation is one of the process in which different buyers are divided in the market
and profiled according to the variables. The three essential factors and various components in
formed on the basis of marketing mix framework. The objective and the main agenda of the STP
process is to efficiently and prominently focus on the audience which is targeted and
identification of the valuable segments and then developing the marketing mix for those
segments.
The organisations Red Bull and the Lucozade energy drinks use the framework STP for
analysing the target audience. The three steps of this framework are mentioned below
 Before process of an attractive content: It refers to the proper and well planned
structured that help in framing the efficient and an attractive design or content
including the appropriate design, outlets and functions which attract the
consumers (Ponzini and Schofield, 2019).
 Brand related publicity: It suggested that publicity is very important to be done in
the market so that maximum buyers will purchase the products. There is a huge
possibility of the large size of consumers. Publicity should include recognition,
awareness of the brand with various services as well.
 Sponsorship and event creation: To organise the event with the brand
ambassadors including celebrities, sports person. In promoting the products and
services, reflects visibility of the brand. Also to include sponsors in increasing the
value of the brand.

The great researchers states that Lucozade is a company which is mainly focusable on the
agr group of mens between 18 to 30 years old and the brand simply wants to target the large size
of groups. In comparison to this, the Red Bull energy drink has the higher market revenue and
share in the market. It is mainly because the target market of the Red bull age generally those
who belongs to the urban background. They are mainly males, rich, celebrities. It is because the
target market of Red bull are the young urban males or those who are extremely rich and aspire.
STP( Segmentation, Targeting and Positioning) is signified in the target market.
2. Product /Brand
A brand or a product is one of the service or an object that are made available to the
consumers. The desire and satisfaction of consumers helps in increasing brand and product.
Some products including labelling and packaging of the products. In relation with the Lucozade
the colour and design of the products are mainly made for attracting the customers. Lucozade
always try to implement new products with various ingredients. The major agenda of Lucozade
is to energy drinks to those which are benefited consumers at the time of exercises, tables, sport
activities and many others. In comparing Lucozade with the Red Bull, always focus on
variations from its actual and standard flavour. Many popular flavour provided by the Red Bull
are Cranberry, Coconut, Blueberry, Kiwi and many others..
Levitt's model
It is a model which is based on a perfect idea of product. Lucozade and Red Bull uses
Levitt framework for its products.
 Core benefit is the innermost level which suggest that the identification of every product
and the satisfaction is a core function and majorly established to reach at the next level.
 Basic product is a beginning level which states that few characteristics are required for
the product.
 Second level is the product expectation in which characteristics are important for
implementing the attributes on the product.
 Augmented product states that it helps in enabling of the consumers from products.
 And the last stage, is a potential product which states that the perfect characteristics is
required to made the desire and efficient product.
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3. Price
Strategy of pricing applied by the Lucozade is premium pricing because it helps the target
market to build a high quality of brand image but the strategy is also one of the disadvantage for
those who suffer in the market due to global recessions and those who purchase cheaper
products. In comparison this, Red Bull also uses premium strategy in pricing for selling high
range of products generally to the billionaires, celebrities or rich urban males.
4. Place ( Distribution)
In many countries including Germany, South America, France are the countries where
number of buyers want to purchase Lucozade energy drinks. Also, such drinks are available in
the bulk and majorly popular amongst the youth. In comparison to Red bull, 171 countries have
a popularity of Red Bull energy drink across the world. Red Bull is successfully manages to sell
their products over 60 million in the year 2020. As a brand, Red bull is a easily accessible
product in the market and it hold more than 40 cans (Yanto Ramli and Irawan, 2019).
5. Promotion
Promotion is a crucial and the most significant approach in the marking mix approach.
promotion is seems out to be a major component in the framework because it systematically
increases the product values in the market. In context to Red Bull, they initiate with various
campaigns and awareness in the market. Tag line of the energy drink is “Red bull gives you
wings” which is quiet specific in promoting the products and services. Some programmes
includes mountain biking, BMX and many others. In comparison with the Lucozade, they uses a
strategy of selling services in the market. They promote brands in the social media including
Instagram, Facebook and many others.
Conclusion
The above discussion concludes that Lucozade and Red Bull should use various tactics
and actions for their products and brands promotion. The discussion also includes, comparison
between Lucozade and Red Bull. The marketing mix theory helps in achieving growth and
success by analysing and well organised the target audience.
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References
Books and Journal
Yanto Ramli, M.M. and Irawan, A., 2019.THE ROLE OF POSITIONING THAT INFLUENCE
POLITICAL MARKETING AND DECISION TO VOTE FOR THE CANDIDATE.
Onwangprem and et. al., 2020. The Adaptive Marketing Strategy Affecting Thai Food Original
Value Perception. Dusit Thani College Journal, 14(1), pp.254-266.
Devagirikar, N.D. and Sendhil Kumar, M., 2019. A Study on Effectiveness of E-Marketing
Strategy of Shri Ram Granite, Kushtagi.
Ponzini, G.T. and Schofield, C.A., 2019. Randomized controlled trials evaluating the
effectiveness of a direct-to-consumer marketing campaign for social anxiety disorder.
Stigma and Health, 4(4), p.450.
Matei, A. and Săvulescu, C., 2019. The Social Role of Awareness Campaigns on Consumer
Protection: An Extension of the Social Marketing Area. In Case Studies on Social
Marketing (pp. 183-192). Springer, Cham.
der Lehrveranstaltung, A., DIM| Digital Marketing. MODULHANDBUCH.
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