Marketing Mix Comparison: Red Bull Energy Drink vs. Lucozade Energy

This individual report provides a comparative analysis of the marketing mix strategies employed by Red Bull and Lucozade. The report examines the differences in their targeted audiences, pricing structures, and distribution channel management. It explores the product strategies, including the application of Levitt's Model and Aaker's brand personality framework, and analyzes the competitive and premium pricing strategies used by each brand. The distribution channels, employing push and pull strategies, are also compared. Furthermore, the report highlights the promotional activities, including ATL and BTL marketing, and concludes with an overview of the impact of these marketing mix elements on the overall performance of both energy drink brands. The report uses various sources to support the analysis and provides a detailed understanding of the marketing approaches of both brands. This report is available on Desklib.

Individual report the 4P
marketing mix

Exclusive Summary
The report has analysed difference in implementation of marketing mix on Red Bull and
Lucozade. By analysing differences in their targetted audience and variations in their pricing
structure which they follow for promoting their products in front of their customers. The report
has also compared the difference in channel management for distributing products to the end
customers.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Comparison of Targeted Market..................................................................................................4
Products........................................................................................................................................5
Price.............................................................................................................................................6
Place- ...........................................................................................................................................6
Promotion.....................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing mix is the set of actions which is used by organization for promoting its brand
and improving organizational efficiency. Lucozade Energy and Red Bull energy drink are chosen
for the analysis in this report. Both organizations are soft drink manufacturer which provide
energy drink to their customers. The following report will analyse the targeted market of both
brands. The report will also evaluate different targeted market of both organizations. With that
differences in implementation of marketing mix is also evaluated in this report.
MAIN BODY
Comparison of Targeted Market
Red Bull Energy Drink Lucozade Energy Drink
Segmentation Geographical- Globally, urban and
rural audience are the main target
audience of this energy drink.
Demographic- Product is used by
men and women of middle and
higher economical background.
Geographical- Big and prime urban
cities with high population are the
preferred locations of organization.
Demographic- Product can be used by
both men and women. Due to high
charges only higher lifestyle buyers are
the organizational customers.
Targetting Age group- 16 to 30 age group is
preferred by organization, because of
high physical activities.
Occupation- Students of school and
colleges, explorers and sports
personal are the targetted audience.
Age group- People of 10-35 age group
are the targetted audience for product.
Socio economic- Higher educated class
of society with higher income are the
targetted audience.
positioning Advertisement- Company uses, TV
advertisement, newspaper
advertisement and social media
advertisement (Lahtinen, Dietrich
and Rundle-Thiele, 2020). This
attracts large number of customers
Advertisement- Lucozade mostly use
telemarketing in which TV
advertisements are done and email
marketing. This develops a high
organizational position in front of their

towards them. buyers.
Products
Red Bull provide energy drinks to their customers, these drinks are used for increasing
work efficiency for doing mental and physical activities.
Levitt's Model of brand- This model is used by organizations for identifying the
satisfaction level which the product has to pass in order to become successful in market place.
The model has five different layers of satisfaction which are as following. Core benefits is the
basic need of customer which the product has to be satisfied. Basic product, as the name suggest
the product is having basic characteristics which are able to fulfil customer's needs (Wu and Li,
2018). Expected product, these are some additional properties which customers are expecting
from the product which they are having. Augmented product, this level is achieved when the
product is able to surpass customer expectations. Potential Product, this is the final stage in
which the product is able to make its own unique identity.
Red Bull, since is widely known for providing energy drinks at an affordable price with
unique shape and colourful packaging due to which it is able to attract wide number of customers
towards them. Due to which Red Bull was able to surpass the basic and expected product level in
front of their customers. But the company is not able to surpass augmented and potential
products which has limited their performance. Since products are affordable at pricing and easy
to achieve therefore this has achieved high emotional level for its customers and with that it is
also having high functionality. By which company is able to make its positive image as an
efficient and effective energy drink.
In case of Lucozade Energy, they provide rich in quality energy drinks to their customers
with attractive packaging and unique shapes. Due to premium pricing the number of customers
are limited and that increases their brand value in front of their buyers. With creative
development Lucozade energy is able to surpass expected product level and achieved augmented
product level (Andika and Susanti, 2018). Due to premium pricing and effectiveness company is
able to portray itself as a premium energy drink.
Aaker's brand personality framework, for Red Bull is excitement because of their
imaginative and daring behaviour. For Lucozade it is Sophistication, which means limited to
upper class and charming.

Price
Red Bull Lucozade Energy Monster Beverage
Online Pricing AED 24.07 AED 599.00 AED 126.00
In store Pricing AED 21.07 AED 599.00 AED 97.02
Pricing strategies
Lucozade Energy- High prices are used in this, therefore it can be concluded that organization is
using premium pricing strategies for their products. In case of premium pricing high profit
margin is achieved because high pricing are made on products (Išoraitė, 2016). These high price
tags are established on products, by which customers get a feel of getting high quality product.
With that, due to limited number of stores around the globe, the rarity of product also increases
which attract customers of higher class because of rarity which they are getting from product.
Red Bull- Red bull energy drink pricing is comparatively lower that other products and
availability of product is also efficient, therefore it can be concluded that Red Bull is
implementing competitive pricing strategy for their products. In this type of pricing strategy,
products are places a little lesser that market competition which will a sense of affordability in
front of buyers. This sense of low pricing attract large number of customers toward the
organization and increases organizational sales.
Place-
Distribution Channel management-
Distribution channel management plays an important role in making product available to
the final customers and products availability in market plays an important role in deciding
company's economic growth. So to maintain product availability in market and also to attract
customers Red Bull uses push and pull strategies. In which pull strategy is preferred by
organization because it removes intermediates from between company and end uses which
allows Red Bull to have a direct contact with customers (Abril and Rodriguez-Cánovas, 2016).
Since Red Bull is a mass market product therefore push strategy is preferred because it contains
intermediates between Red Bull and customers, as shown in following figure.

Source: Energyadro, 2015
Source: Dreamstime, 2020
Illustration 1: Push pull strategy for distribution of product
Illustration 2: Red Bull in store image
Illustration 3: Red Bull
online

Source: Red Bull, 2020
Brand value of Red Bull is $50 billion (Bedford, 2020).
Lucozade Energy on the other hand is a luxury product which follows push strategy which is the
traditional retail marketing strategy. In this poster and sponsorship advertisements are done
directly at the customer side by the intermediates like traders and other processing companies
which is an indirect method (HR and Aithal, 2020). Due to which due to which customers can
get product by following means. Which are as following, modern retail outlets, gymnasium,
super market, select traditional retail stores.
Source: Birch. T., 2020
Illustration 4: Lucozade in store image

Source: Lucozade, 2020
Brand value of Lucozade Energy is £1.35 billion.
Promotion
Red Bull uses ATL and BTL marketing strategies for marketing their products in which
ATL refers to Above the line and BTL means below the line. ATL means that the product is
going to be concentrating on wide number of customers, by which company would be able to
increase their customer count beyond their targetted audience. So with the help of creative TV,
newspaper and social media advertisements Red Bull is able to position themselves as an
affordable product in front of their customers (Blut, Teller and Floh, 2018). In addition to that
organization also promote themselves through BTL advertisements. In which it sponsors many
sports events and adventurous short videos for online platforms like YouTube by which they
increase customer's engagement with company which enhances their loyalty.
Lucozade Energy, promote and position themselves as an luxury brand in front of their
customers. Organization product availability is done by third party involvement due to which
most promotional advertisements are done by intermediates only and because of which its
advertisements are limited to TV, newspaper and social media. However for increasing its
engagement with organizational customers company is increasing its involvement in sponsoring
big events and for creative marketing they sponsor several short videos for platforms like
YouTube and Facebook.
Illustration 5: Lucozade online store image

CONCLUSION
From the above analysis it is concluded that even though Red Bull and Lucozade energy, both
provide energy drinks to their customers but due to differences in targetted customer and
variations in marketing mix techniques both are facing difference in their sales. In which since
Lucozade uses premium pricing therefore their customers are limited but on the other hand
because of Red Bull's competitive pricing strategy they are experiencing large increment in their
sales. With that channel management's impact on product performance was also evaluated in this
report, in which impact of product's availability in market was analysed.

REFERENCES
Books and journals
Abril, C. and Rodriguez-Cánovas, B., 2016. Marketing mix effects on private labels brand
equity. European Journal of Management and Business Economics. 25(3). pp.168-175.
Andika, A. and Susanti, F., 2018. Pengaruh Marketing Mix Terhadap Keputusan Pembelian
Parfum di Azzwars Parfum Lubeg Padang.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing. 94(2). pp.113-135.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing in
India. International Journal of Applied Engineering and Management Letters (IJAEML). 4(1).
pp.191-218.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of Social
Marketing.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Online
Bedford. E, 2020 [online]. Available through:
<https://www.statista.com/statistics/304958/worldwide-sales-growth-of-red-bull-by-
leading-markets/>
Birch. T., 2020 [Online]. Available through: <https://www.betterretailing.com/products/soft-
drinks/lucozade-energy-and-ribena-pmp-range-reduced-by-suntory-beverage-food-gbi/>
Dreamstime, 2020 [Online]. Available through: <https://www.dreamstime.com/red-bull-store-
several-cans-energy-drink-sale-grocery-image158166799>
Energyadro, 2015 [Online]. Available through:
<http://energyadro.blogspot.com/2015/10/distribution-decisions-distribution.html>
Lucozade, 2020 [Online]. Available through:
<https://www.lucozadeenergy.com/product/lucozade-energy/bottles/-original/lucozade-
energy-original/153/>
Red Bull, 2020 [Online]. Available through: <https://www.redbull.com/int-en/energydrink>
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