Marketing Analysis: Red Bull and Lucozade Energy Drinks Strategies

This report provides a comprehensive analysis of the marketing strategies employed by Red Bull and Lucozade, two prominent brands in the energy drink market. It begins with an executive summary highlighting the significance of the marketing mix, which includes product, price, place, and promotion strategies. The report then delves into the target markets of both brands, examining their customer segmentation and preferences. It explores the product strategies of each brand, including the application of Levitt's model to understand core, generic, expected, augmented, and potential product levels. The pricing strategies of Red Bull and Lucozade are compared, differentiating between price penetration and premium pricing approaches. Furthermore, the report analyzes the distribution channels (place) used by each brand, including retail outlets and distribution networks. Finally, it examines the promotional strategies, including the use of celebrity endorsements and taglines like "Red Bull gives you wings," to attract and engage target customers, providing a detailed overview of the marketing mix elements and offering insights into their effectiveness. The report concludes with a summary of key findings and their implications for marketing practice.

Executive summary:
Marketing principles are regarded as the specification that have to be followed in
organisations in order to from effective strategies to that is centred around basic four strategies
that includes product, price, place and promotion. Marketing mix can be defined as a set of
different marketing tools that are used for pursuing of marking objectives by organisations.

Table of Contents
Executive summary:.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
1) Target Market of the company...........................................................................................4
2) Product...............................................................................................................................4
3) Price....................................................................................................................................5
4) Place...................................................................................................................................6
5) Promotion...........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9
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INTRODUCTION
In organisations there are some specified marketing strategies is used for the purpose of
laid mission and vision. Marketing mix is identified as a tool that is used for identification of
various elements for identification of strategies that are used for increasing the level of customers
satisfaction and formation of effective strategies. There are different aspects that consist of
strategies related to pricing, promotion and marketing of the brand so that target segment of
customers can be made aware about the products (Rao-Nicholson and Khan, 2017). Present
report is based on two drinks that is red bull which is a Austrian brand that is having higher
market share another set of brand that is part of same industry is Lucozade energy drink that is
also a a drink manufactured by Japanese brand suntory. Presently the report is based on the
discussion of different marketing strategies that can be used by these brands for the purpose of
promotion and enhancing the present brand value.
1) Target Market of the company
The target market of Lucozade consists of young men who are between the age group of
18 and 30 years. According to this the present market segment can be increased beyond the
present market who is belong to sports industry or the manual labour who are having preferences
for this drink as a energy beverage. The target market is leading to pushing of young men who
are aged between 18 to 30 years (HR and Aithal, 2020). This brand is mainly focussing on the
sports market and manual labour market to enhance their market share.
Where as
Red bull is also a basic energy drink that is focussing on the target segment of customers who
are young, independent and professionals with having preferences for quality drinks. They are
collecting data for the purpose of identification of internal insights according to their digital
campaigns. The relevant information is used by collecting directly by customer surveys, focus
groups, field trials and a future combination of online and offline channels that are used for
connecting with their target market.
2) Product
This strategy is identified that is based on a strategy of leviits model that is idea of product
according to different stratification level. The upper level Consist of the previous ones.
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According to levitts model the innermost level is identifying the core benefit according to
customer satisfaction all the levels are divided.
Core benefit: It is specifying the fundamental want and need that customer are willing to satisfy.
It is the core requirement of a product. Core benefit is according to the basic attributes of energy
drink that is its colour texture that is perfectly present in Lucozade energy. Red bull core
product is also a energy drink that is used as a cold beverage offering benefits with taste.
Generic product: It is the version of product that includes those attributes that are absolutely
compulsory for it to function. It has to be processed according to digital images that are to be
satisfied by generic, personal or low end needs that are satisfied by use of such product (Kwok,
Tang and Yu, 2020). Generic product in Lucozade energy is the basic features of a energy drink
that is offered by them. Generic product of Red bull core is based on a energy beverage that is
offered as a basic generic product.
Expected product: It is regarded as set of basic characteristic and attributes that are very
necessarily expected by customers. Expected product in Lucozade energy is the basic attributes
of energy drink that is better taste and high quality according to the prices paid by customers.
Red bull core is meeting the expectations of customers as they are offering the right quality
according to the prices paid by customers.
Augmented product: It consist of the additional benefits, attributes and related services that are
serving different needs according to a product. It is according to the additional benefits if
Lucozade energy will be able to offer to its customers. Red bull core is offering timely
launching of new additional features with time that is leading to augmentation of product.
Potential product: It is the transformations and augmentations that a product might undergo in
the coming future time period. For ensuring higher customer satisfaction it is necessary to focus
on the future potential product needs (Kumar, Shankar and Aljohani, 2020). Potential product
of Lucozade energy can be how it can be further developed according to future customer
expectation.
In Lucozade energy the product consist of the core product that includes the expected product
range and energy drink that basically is famous for orange flavoured drinks with a tangy and
sweet taste at same time as there are two basic sweeteners that are present in this aspartame and
acesulfame.
Where as
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Red bull energy consist of expected product range as red bull with its new timely innovations
has always been able to satisfy their customers with the timely innovations that they are making
in their flavours. With different taste and the high quality attributes.
3) Price
Pricing strategy is also essential attribute of offering reasonable prices according to the product
benefits that are offered by the brand. The prices have to be always equivalent to the benefits that
are derived by customers. There are two basic types of pricing strategy that is price penetration
where the prices are set low so that customers are purchasing because of higher benefits and
lower prices. On other hand there is strategy that is used for offering products at higher prices
because of their attributes which is regarded as price penetration strategy.
Pricing strategy of Lucozade energy Pricing strategy of Red bull
Price penetration strategy is based on
penetration in the market with lower prices so
that there can be achievement of higher sales
and lower prices.
Prices premium strategy is based on a belief
by organisations that they are charging high
prices according to the high value that they are
offering in their products. It creates a situation
of attraction of customers based on the luxury
approach that is used by brand.
In Lucozade energy there is use of 24 percent
of growth by offering products through
different independent channels. They are
willing to charge lower prices so that the high
value product offered by them can be counter
productive with the high value of products.
In Red bull the premium price strategy where
they launched with a view that there can be
petitioning of the brand by the quality and
benefit of products. It is regarded as bets
selling energy drinks that is leading to charging
higher premium prices from their customers.
For Lucozade energy the brand is having a format of 1 litre where the growth is
achieved as 24 percent according to independent channels in previous years. They have also
enjoyed a increase of 67 percent of sales in the launching time. Their other variants such as
Robeana black currant are offered at prices of PMP 1.50 pounds (Kim, and Kim, 2018).
Where as
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Red bull is using a pricing strategy that is based on the way competitors are setting the
prices. In this strategy with high quality of products there is use of price skimming as a strategy
as the target customers are ready to pay high price because of the brand image and high quality
products that are offered by Red bull.
4) Place
It is a basic strategy that is having its focus on identification of a particular distribution
channel so that product is available according to customer needs (Lim, 2020). For achievement
of higher competitive advantage brands are ensuring that they are selecting a distribution strategy
that is making the products easily available to customers which prevent them from switching to
other competitive brands.
Where as
Lucozade energy is focusing in the sale of its products in different retail outlets such as
hyper markets, super markets with a efficient distribution system so that their customer base can
be satisfied. There is presence of a distribution network where the products are present in such a
way that customers can easy access to the products (Davari Farid, and 2019). There can be use
of various distribution channels such as push strategies where the manufacture can ensure that
there is promotion of trade, sales force and use of intermediaries for ensuring selling and
promotion of products. In Red bull there is application of pull strategy where there is promotion
and advertising of products in order to persuade customers. It is a basic strategy that is used so
that there is presence of a direct channel so that products are easily offered to customers. Red
bull is using rail and water transport for reaching to the final destinations (Jaminyasa, Pulawan
and Amerta, 2017).
5) Promotion
The promotion strategy of any brand is setting their promotional strategies in order to
attract their target segment of customers. The focus is on ensuring that the actual benefits are
clearly reflected in the product advertisements so that people can realise the basic benefits to be
realised from the actual use of the product. The campaigns of marketing promotion has to be
formed in such a manner that customers are observing all the benefits associated with it and then
using it as as source for maximisation their expectation level from the brand.
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There are two major techniques that are used by Luzocade energy that is using different
celebrities for the purpose of promoting their brand. The promotional strategies are having its
focus on use of personal selling as a technique for the purpose of establishing direct
communication channels with their customers (Thanabordeeki and Syers, 2020). They have
launched some marketing campaigns so that their sales are not getting affected because of
present situations of COVID-19 (Lahtinen, Dietrichand Rundle-Thiele, 2020).
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Illustration 2: In store promotion by
Luzocade drinks
Illustration 1: Print media
used as promotion tool by
Luzocade drink

Where as
RED BULL ENERGY is having a very postural tag line that has been develops to
reflect the basic value that is offered by this brand and the customers will be perceiving the
specification from this products such as “Red bull gives you wings”. In all their campaigns they
are using this tag line so that they are having a similar approach for the purpose of
communicating with their customers. The tag line is signifying the way this tag line will be
focussing on boosting the cognitive abilities and the overall energy level of a particular
individual. It is assisting them in constantly communicating with their target segment of
customers. The campaign of red bull has lead to development of overall brand equity that is very
important to ensure that the target segment of customers are perceiving the exact value that has
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Illustration 4: Print media used
as a promotional tool by Red bull
energy

to be actually communicated to the customers (Red Bull's Marketing Strategy: What Your
Company Can Learn, 2020 ).
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CONCLUSION
It can be summarized from the information that marketing is a part of important
organisational functions that is to be formed according to the laid goals and objectives of the
organisation. There are various elements of marketing mix that has to be applied so that there has
to be proper application of all principles of marketing in formation of effective strategy. The
most effective strategy is to timely focus on the competitor’s strategy which has to be asses to
prevent their customers from substituting their present usage & preferences. It also helps
organisation can be saved from its negative impact on the overall functioning & brand
positioning in the external market.
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