Marketing Mix Analysis: Red Bull and Lucozade Energy Drinks

This report offers a detailed comparative analysis of the marketing mix strategies employed by Red Bull and Lucozade, two prominent players in the energy drink market. It begins with an introduction to the marketing mix concept and then delves into the specific strategies of each company, examining their target markets, product offerings, pricing strategies, distribution channels, and promotional activities. The report highlights the target market of Red Bull, which includes college students, teenagers, and young adults, and Lucozade's focus on men aged 18 to 30, originally targeting patients needing extra energy. The product analysis covers the unique formulations, flavors, and packaging of each brand. The pricing sections differentiate the premium pricing strategy of Red Bull from the competitive pricing adopted by Lucozade. Distribution strategies and promotional activities are also assessed, including Red Bull's extensive global distribution network and Lucozade's use of online and social media platforms. The report concludes with recommendations for each brand and emphasizes the role of marketing in driving sales and brand success, underscoring the use of social media as an effective marketing tool. The report is supported by references to academic journals and books.

4PS/MARKETING MIX

EXECUTIVE SUMMARY
The study has been made to highlight the marketing mix of Red Bull and Locozade. The
study has been made so that the pricing strategy used by the organisations can be highlighted.
The study has been made so that the organisation can find outs its weak points and any
improvement required can be made. It shows the different promotional practices which can be
used by the organisation to increase the sales of the firm.

Table of Contents
INTRODUCTION...........................................................................................................................1
Marketing mix of Red bull and Locozade Energy.......................................................................1
CONCLUSION................................................................................................................................4

INTRODUCTION
Marketing mix is the grouping of factors which can be managed by businesses to
influence customers to purchase the goods. Red bull is the energy drink which are sold by Red
Bull Gmbh, it is an Austrian company created in 1987. Locozade is an type of soft drink
manufactured by Japanese organisation Suntory and marketed as organisation which offers
different types of sports and energy drinks. The report will highlight the marketing mix of both
the companies Red Bull and Locozade Energy (Datta, Ailawadi and Van Heerde, 2017).
Marketing mix of Red bull and Locozade Energy.
1. Target market
Target market for Red bull is college students and teenagers. Company targets the people
of 13 to 21 years. The company also targets young adults ranging from 21 to 35 years. The
organization targets the people upon their income level. As income level of all the people is
different so Red Bull tries to offer the products which can be purchased by people of all income
level. They made the drinks which can be purchased by all the people, company tries to offer
quality drinks at reasonable prices. The drinks can be easily consumed by both males and
females. Organizations targets those types of audience which prefers to buy quality products at
reasonable prices. The drinks are purchased by newly married couples, young people but ir can
not be consumed by children (Datta, Ailawadi and Van Heerde, 2017).
Target market for Locozade Energy targets men of age between 18 to 30 years. The brand
focuses to target the audience beyond the sport performance in market. According to the needs
and requirement of the men ranging between 18 to 30 years, production and distribution process
is done. This product was originally made for the patients who are in the need of extra energy.
The organization used to target the audience on the basis of their lifestyle. The company used to
offer premium quality drinks to the consumers but the prices charged are little bit high as
compare to other competitions in the market. Locozade also target the people on the basis of the
beliefs and attributes and according to they sells the products (Fan, Lau and Zhao, 2015).
2. Product
Red Bull promises to manufacture premium quality products at reasonable prices. There
are variety of drinks which are manufactured by the organization. To bring some difference from
its standard flavor, company has launched a series of flavors so that it can be suitable to the
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needs and tastes of consumers. Red bull drink contains ingredients like caffeine, glucose, taurine,
vitamin B as all these ingredients are required by working people, sports person and young
people prefers to party at night (Išoraitė, 2016). The drink comesin in a blue silver can with logo
of two red bulls on front side whereas Krating Daeng is an gold short can. These two goods are
produced separately and are available in almost every country, as red bull is an popular drink
which is sold world wide.
Locozade is specially made for boosting the energy level among the consumers. The
drink come in different forms and this enables the organization to provide desired benefits
withing the wide range of buyers. The products focus on its packaging. Products are packed in
such a way that attracts the consumers to buy that. The colors used by Locozade in pancaking of
products are very vibrant. The ingredients which are used in manufacturing are properly labeled.
Locozade products includes sports and energy drinks, glucose tablets and bottles. The drink
comes in an sporty packaging so that it can get attention of the buyers. The products made by the
organization are sold wildly to almost all the countries (Liu and et.al., 2017).
Levitt's model of change
Red Bull Locozade
Expected product High quality energy drink in
reasonable price
Premium quality energy drink
Generic product healthy energy drink Energy drink with more
glucose
Potential product Energy drink with good
packing
Energy drink in reasonable
prices
Augmented product Addition of more flavors Products must be available in
different package size
Aaker's brand personality framework
Red Bull Locozade
Sincerity Down to earth Honest
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Excitement Daring Up to date
Competence Reliable Intelligent
Ruggedness Charming Upper class
Sophistication Outdoorsy Tough
3. Price
Red Bull Locozade
The brand has many competitors in the market
but yet the brand is market leader. The strategy
used by the brand is premium pricing strategy
as the brand is very much popular and trusted
by the buyers, The brand can also charge a
premium prices for their products and
customers will even make purchase it because
of its quality (Liu and et.al., 2017).
Locozade is an popular brand which has large
number of buyers all over the world. The
pricing strategy used by Locozade is
competitive pricing strategy. This strategy is
been used as there is high competition in
market and organization can sustain its
productivity (Massingham and Pomering,
2017).
Premium pricing strategy is used by Red Bull as the brand is very popular. Consumers
are very satisfied with the quality of drinks which they offers so even though the priced are
raised by brnad there will be no impact on its sales. Red Bull was the first brand offering quality
energy drink and will always be number one choice for the consumers and the demand of the
Red Bull will never decrease. People used to buy the energy drink in bulk as it is cheaper than
buying an single can.
Competitive pricing strategy is been used by Locozade as their is very high competition
in market. This strategy is used so that organization can face competition in an effective way an
sustain in the market for longer duration (Patil and Bach, 2017). There are various brands which
are offering same quality energy drinks at much reasonable prices, so to deal with that Locozade
has adopted competitive pricing strategy.
4. Place
Red Bull has successfully sold 5.9 billion cans all over the world in 2015 owning to
widest distribution network all over the world. The drink is available at different places like
supermarket, retail outlet, convenience store, night clubs, bars, Pubs etc. The consumer can
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easily buy the products as the drink is available in almost every well know shop. The drinks are
available in Hyper markets also. Red bull is also sold online either in bulk pancakes or single,
thus makes it convenient for consumers to buy the stock in bulk. The main motive for selling the
drinks in night club is, some people prefers to mix it with the another beverage or to include
some extra flavor in the drink (Sharma and Berad, 2019).
The brand has become household name in maximum ares of world with most of its retail
outlet stocking the goods. Company has an great effective team which ensures that the goods are
properly stocked in retail outlet, hypermarkets, shopping malls and various other outlets. The
organization makes an partnership with learning institutions like famous universities all over the
globe to stock the drinks in their canteens. The drinks of the brand are sold all over around the
globe, the products are also available online. Locozade has advanced distribution system and
this keeps the consumers satisfied with the organisation (Stead and Hastings, 2018).
5. Promotion
Red Bull is mostly targets sports people with their tagline "Red bull gives you wing". To
promote the brand they organise various sport events and even sponser teams. There are various
methods for promoting the products, red bull uses Television and print media to do marketing of
the products. The organization used to show the advertisement of the drinks on television so that
it can attract the buyers. Red bull used to show their products with the help of magazines., as the
advertisement of red bull is done in that. Various types of discounts are also given by the brand
so that maximum number of consumers can be attracted (Stead and Hastings, 2018).
Locozade Is an an sporty energy drink with the tagline "Locozade replace loss greenery".
There are various methods through which the marketing of the products can be done. Locozade
uses online website and social media to promote their products. Organization used to give
advertisement of the drinks on various social media platforms like, Facebook, Instagram, you
tube etc. The brand uses this method for promoting the products as through this the
advertisement is reached to large number of audience in less time. Locozade also have their own
website through which they do marketing of its drinks. Brand used to post the details of the drink
on their websites through which consumers are attracted (Massingham and Pomering, 2017).
RECOMMENDATION
It is recommended that Red bull must focus on adding more flavors to its drinks
so that more consumers can be attracted. Locozade must try top offer some reasonable products
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also so that the people who can not afford the products of the brand can also make purchase.
More advance methods of promotion should be used by Red Bull as print media is not an
effective means of marketing. The organization must use online website and social media so that
the advertisement can be reached to large audience in lesser time. Locozade must focus on
improving the quality of packaging so that they can attract the eyes of consumers.
CONCLUSION
The study summarized that marketing plays vital role in expanding the sales of products.
There are various methods through which marketing can be done, as social media is an effective
platform through which the products of the organization are marketed to large number of
audiences. Further, the study concludes that different organization uses different pricing strategy
so that the organization can do business activities in an smooth manner.
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REFERENCES
Books and Journals
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence
through the lens of marketing mix. Big Data Research. 2(1). pp.28-32.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah. 4(6). pp.25-37.
Liu, Y. and et.al., 2017. The effects of products’ aesthetic design on demand and marketing-mix
effectiveness: The role of segment prototypicality and brand consistency. Journal of
Marketing, 81(1), pp.83-102.
Massingham, P.R. and Pomering, A.A., 2017. Introducing Knowledge Management to the
Marketing Mix.
Patil, D.D. and Bach, C., 2017. Marketing-Mix For Strategy Building. Marketing. 4(4).
Sharma, V. and Berad, N., 2019. To Study the Role of Mobile Marketing Technique as Direct
Marketing Tool Under Promotion Mix in Business Schools.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
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