Analysis of Marketing Mix Strategies for Lucozade and Red Bull

This report provides an analysis of the marketing mix strategies employed by two prominent energy drink brands, Lucozade and Red Bull. The study utilizes secondary research to examine the implementation of the 4Ps of marketing: product, price, place, and promotion. The report delves into the target market strategies of both brands, highlighting how Lucozade shifted its focus from healthcare to sports and how Red Bull targeted young adults and sports enthusiasts. The product section explores the evolution of both brands, including product development, branding, and the introduction of new flavors. The pricing strategies are compared, noting Lucozade's more affordable pricing versus Red Bull's premium positioning. The place aspect discusses distribution channels, from retail stores to online platforms. The promotion strategies of both brands are examined, including advertising campaigns, sponsorships, and digital marketing efforts. The conclusion summarizes the effective use of the marketing mix by both brands and offers insights for aspiring brands. The report provides references to support its findings.

MARKETING MIX

Executive Summary
This report aims at understanding the marketing mix of 4 Ps and their implementation by
two brands and how it has helped them achieve great revenues and laurels in their business. The
methods used are of secondary research. The results of marketing mix on the two brands have a
positive impact on their business out-reach and covers various important marketing tools. It can
be a good study for aspiring brands entering the market.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Marketing Mix and their impact on Brands of Lucozade, Red Bull...............................................2
Target Market..............................................................................................................................2
Product.........................................................................................................................................3
Price.............................................................................................................................................4
Place.............................................................................................................................................4
Promotion....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
1

INTRODUCTION
For a business to survive it needs proper market research about the need of product in
customer’s mind and supply chain of that product in the particular area. The competition existing
around is another factor to be kept in mind. This leads the need to develop a marketing strategy
for the business in which all factors are to be borne in mind. Marketing Mix is all about making
the right decision to market the right product, at the right place, with the right price, right market
segmentation and the right promotion. This combination if successfully implemented can work
wonders for the business. Two energy brands Lucozade and red bull have used the marketing
mix strategies well which has worked wonders for their business.
Marketing Mix and their impact on Brands of Lucozade, Red Bull
Target Market
Lucozade launched in 1929 had a target segment focusing on weak children and patients
who were slow in recovery at hospital may be due to not liking of food at hospital. Thus the
brand was launched as a drink providing recovery from ill health. It became famous in healthcare
sector then. As 1980s approached, competition rose in markets of energy drinks. Lucozade
transformed its brand into an energy drink now focusing on sport and athlete personalities. It also
launched new flavours and aimed at teenage group using a popular video game character then in
its advertisements. However, it has maintained its reach at pharmacies as well retaining its old
customers as well(Dörnyei, 2020).
Red Bull initially was launched as Krating Deng in 1976 as an energy booster supplying
essential vitamins, its market in those days was of truck and auto drivers. Its target market
changed when in the 1980s it was consumed by an Austrian businessman who got the idea of
transforming it into a complete energy drink and target the age group of 15-30 yrs. individuals
along with sport personalities. People who have a charm of travelling and doing physical
activities are generally the target segment for energy drinks. Apart from this, Red Bull is also
used at parties and clubs which entails the segment of party goers too.
2

Product
When a business launches a product, it has to analyse factors such as the need of product
in the customer’s mind, prevailing competition in the market. Thus, the current demand and
features which sets the product apart from other competitors will eventually determine its
success(Gürbüz, 2018). Levitt’s model of brand analyses five stages which are core need of the
product, actual product, augmented product, expected product, potential product. Speaking of
Lucozade as a product, the need for an energy drink for sick children was witnessed in
consumers, then the product was launched addressing customer’s needs, product was then
augmented in terms of packaging for e.g. in 1996 altogether new packaging and logo was created
giving a zing sports look. Lucozade changed its product according to customer expectations in
1980s as an energy drink used for athletes and physically active people. Further, add-ons to the
product were its new flavours introduced to keep up with changing trends.
Speaking of Red bull, the core need was realised to create a drink which was safe than
carbonated drinks and also good for health(Farris and et.al.,2017). The product was launched
addressing customer’s needs; product was later on augmented in modern style cans with a new
charming logo helping to differentiate from medicinal drinks. The consumer expectations of
consuming a safe health drink were met and many flavours were added owing to different
customer tastes other than maintaining quality of original. Sugar-free drink was introduced as a
potential product gaining huge popularity.
Aaker’s brand personality traits like sincerity, excitement, competence, sophistications
and ruggedness can be seen in both the brands. Lucozade has been sincere in delivering drinks as
per customer requirements, it became exciting when it moulded itself in 1980s as an energy
sports drink, people rely on its competence to deliver quality product, has provided
sophistication as a cool energy drink and has stood the test of time proving its ruggedness. Red
Bull has been sincere in its quality, although there were a few distractions suggesting increased
use of caffeine but nothing was established(Gafoor and Monica,2018). The excitement factor has
always been there in Red Bull with a charming logo and catchy advertisements. Red Bull has
transformed itself to a luxurious brand of sophistication with its charm appeal. Again, stood test
of time proving its ruggedness.
3

Price
It is the next important aspect of what price to be determined for the product. The
prevailing price set by the competitors has to be borne in mind and a suitable pricing strategy has
to be used which is reasonable to set in the prevailing market. In price terms, Lucozade is
cheaper than Red Bull, its competitor in energy brand market. The older being the brand,
Lucozade has learned to reduce its costing in production terms. However, Lucozade has
maintained a reasonable price which is seen as a quality indicator for customers.
Red Bull which has emerged as a leading competitor in the market of energy drinks
enjoys the privilege of using a premium on its product(Olujimi,2017). Consumers are ready to
shell out extra money for the quality served. As the cans are available at various selling points
from a megastore, a small shop, gas station or simply a vending machine the price varies
accordingly. Red Bull purchased in bulk is preferred as it gets cheaper rather than buying single
can.
Place
The place where one wants to launch the product should be suitable meeting the demands
of the product. The place should be inter-connected with the target segment, should be
economical and feasible, for visit by customers. Energy drinks have distributed themselves as a
mass product focusing on youngsters thus making their convenience felt across a wide chain of
stores. Lucozade has increased its distribution channel ranging from retail stores, gym stores,
sports stores to a bread selling store(Semens,2016). The company realizes the importance of
convenience of buying the product for customers otherwise they can go for substitute available
nearby. Supermarkets have sufficient availability of the brand plus the Medicare facilities such as
pharmacies also store Lucozade which helps ailing people to get a faster recovery. Lucozade has
tied up with several learning institutions such as Universities to keep a stock of their product in
the canteens. Thus the importance of factor of place comes in here in business expansion.
Speaking of Red bull, it has made its presence felt in supermarkets, retail stores, clubs,
vending machines etc. People can get it conveniently which is what serves the purpose. Red Bull
has its own exclusive refrigerators to store red bull cans where consumers can buy them in bulk
which is cheaper for them. Also, it increases sales for Red Bull. At supermarkets, the cans are
placed along with other competitor cans offering a choice for customers which brand to buy. It
4

has made its online presence felt too where big market players in e-commerce are showing cans
available for sale on their websites apart from red bull’s own website(Lancaster and
Massingham,2017).
Promotion
A product well promoted will make customers aware about it and hence increase reach of
the product. Promotion can be done by advertising in papers, road shows, posters, pamphlets,
electronic media too. Lucozade has always changed its promotion strategy by changing target
segment across decades such as first it was launched to give a boost to ill children, then
promoted as an energy drink for athletes(Gürbüz, 2018). Later, it changed its focus on teen age
group and used a video game character for promotion. It has used famous sport personalities to
advertise its product, also sponsored many sport events. People can thus see sign boards
everywhere when they attend the sports event or watch it on TV. Lucozade has also launched a
software promoting fitness which it has connected with iPod, thus using another product for its
promotion. Offers such as getting to win an iPhone have also been advertised. Lucozade has thus
made its brand image of one which is an energy drink for young sport freaks as well as an energy
supplying drink to patients recovering. Thus they have positioned themselves as a health
conscious drink in the minds of consumers.
Red Bull on the other hand has advertised its product as a way of leading an adventurous
life focusing on people in the age group of 18-34 who are young and have a like for sports
activities(Barry, Leahy and Fenton,2019). It sponsors many breath-taking sport activities who act
as a promoter for this drink. Many famous sport personalities endorse the brand giving new
viewership to the brand. Digitally, it is well promoted on its websites and other media platforms.
The slogan ‘Red Bull gives you wings’ has been an instant hit among its customers and can be
seen in various print and electronic media. Red Bull conducts customer surveys, field trials and
takes feedback on improvising the product. It also organises an international photo competition
every three years related to sports and adventure thus giving an emotional connect to its
brand(Olujimi,2017). They have positioned their brand as one which gives an outlook of a life of
adventure, sports and fun. People use them at parties, clubs as an energizing drink which makes
them feel active.
5

CONCLUSION
Both Brands, Lucozade and Red Bull have used 4Ps of marketing mix in a well practical
approach to their advantage. Lucozade has maintained its target customer base of health patients
along with giving the brand a new dimension of sport freaks. It rebranded its product onset of
time to compete in the market through sports sponsorship and cashing in sports personalities for
its advertisements. Price is a bit more than market average but reasonable to its customer base.
Lucozade can do with a bit more on advertising which can generate more awareness and
revenues for the company. Red Bull has also been very efficient in marketing mix, its target
customer base has been physically active people who have a charm for adventure sports, along
with people wanting some fun at parties. Promotional aspect has been given a major chunk of
revenues and it has shown presence online as well as offline at sport events. Pricing has been
with an extra premium has worked for the company for quality maintained and a good
distribution network. Red Bull can do with evading some negative news of it using more caffeine
by conducting some feedback through customers and keep improvising its safety standards for
better reach.
6

REFERENCES
Books and journals
Barry, H. Leahy, R. and Fenton, P. 2019. A Strategic Approach to Amplifying an Experiential
Event using Social Currency to Reach a Mass Audience.
Dörnyei, K.R. 2020. Limited edition packaging: objectives, implementations and related
marketing mix decisions of a scarcity product tactic. Journal of Consumer Marketing.
Farris, P.W. and et.al.,2017. Red Bull (Abridged). Darden Business Publishing Cases.
Gafoor, K.O. and Monica, M. 2018. A Study on Marketing for Entrepreneurs at Red Bull
Bangalore.
Gürbüz, E. 2018. Theory of New Product Development and Its Applications. Marketing, pp.57-
75.
Kunz, R.E. Elsässer, F. and Santomier, J. 2016. Sport-related branded entertainment: the Red
Bull phenomenon. Sport, Business and Management: An International Journal.
Kwon, W. Lee, H.W. and Kim, Y. 2018. Global marketing of Formula One: Local variations and
geocentric marketing mix. International Journal of Applied Sports Sciences. 30(2).
Lancaster, G. and Massingham, L. 2017. Customer care and relationship marketing. In Essentials
of Marketing Management (pp. 260-278). Routledge.
Olujimi, K. 2017. Marketing Communications.
Semens, A. 2016. Football Sponsorship. Routledge Handbook of Football Studies, pp.111-123.
7

8