Comparison of Marketing Mix Strategies of Lucozade Energy and Red Bull

This report provides a comparison of marketing mix strategies of Lucozade Energy and Red Bull through marketing Mix i.e. 4P's, price, product, promotion and place. It covers the comparison of target marketplaces, product, price, place and promotion strategies of these companies. The report suggests that both companies need to make significant changes in their promotional activities in order to be more successful in attracting customers.

Principles of
Marketing

EXECUTIVE SUMMARY
The following report gives an instance of the comparison of markets of two energy drinks
companies nomenclatural as Lucozade energy and Red Bull. Both the companies are established
and magnanimous brand names that distributes their products with efficiency and effectiveness.
The report presents an comparative analysis of marketing strategies and targeting strategies that
are used by these companies. This report provides comparison through marketing Mix i.e. 4P's,
price, product, promotion and place of Lucozade and Red Bull. The report consensuses that both
of these companies needs to make significant changes in their promotional activities in order to
be more affluent on attracting customers. Companies already have a large customer base
therefore, Lucozade is expected to adopt new strategies in order to expand and keep hold over
their existing customers. In the same note, Red bull also have a wide coverage with approx 80
billion purchases every year, it is recommended to build strategies to retain them and attract
more potents.

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Comparison of Target Marketplaces......................................................................................1
Product....................................................................................................................................2
Price........................................................................................................................................3
Place.......................................................................................................................................4
Promotion...............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Marketing Mix are the major controllable variables that covers different elements to
enhance the presence, coverage and popularity of a product or service in the market. The
components of marketing mix, product, place, price and promotion helps to position and promote
the products and services on right time, right price and place. Lucozade is the energy drink
producer and supplier, head quartered at the United Kingdom and launched in the year 1927. Red
Bull is another energy drink producer that is headquartered in Austria and established in the year
1987. Lucozade covers makers of Europe, Asia and Australia whereas Red Bull covers markets
all around the globe. This report covers marketing mix of these organisations with the help of
STP analysis to understand its market coverage. Along-with this, it also covers pricing product
place and promotion strategies of these companies. With the help of Levitt's model and Aaker's
brand personality the market coverage strategy has been understood in this report.
MAIN BODY
Comparison of Target Marketplaces
Comparison of target market helps to know and understand the targeted potential
consumers and place for distribution (Prihatiningtyas and Chasanah, 2021). Comparative target
market analysis of both the brands are given below: Segmentation/Segmenting: Red Bull and Lucozade both have segmented their markets
differently. product segregation by the company in the market into fragmented bits that
made it easy for them to avoid product's wastage (Kountul, Posumah and Memah, 2020).
Red Bull targeted men and women, who are indulged in sports and fitness activities from
the young-adult age groups consisting 18-40 years of people. Lucozade also provides its
products to physically alert people and people who needs supplements in their diets
ageing from teenagers to the very youg adults within age group of 15-30. Targeting: The target of Red Bull are the countries in which the brand has no or very less
coverage in the market. Its target customers are students, teenagers, sportsperson,
professional athletes, and body builders (Uriona Grageda, 2021). It targets mega events
and influential places like cinematic halls to attract their customers. Whereas, Target of
Lucozade are the countries in which it already have strong coverage and foothold in the
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market. It targets, people with supplement needs, manual labourers, females and sport
persons. Lucozade targets its audience through TV advertisements, movies and android-
smartphone viewing.
 Positioning: Red Bull is a luxurious product that cannot be found with small shop and
dwellers. The placing of Red Bull is likely to create high brand value, that gives power
and strength in its possession and it is mainly found in big stores. Whereas, Lucozade
places its products and distributes through wide range of shops from small dwellings to
superstores. Lucozade sells its products through small-big shops as well as online
shopping and free delivery to get easy hold on its products that comparatively makes it
better than its rivals.
Product
Unlikely the product mix of Red Bull is quite simple and sorted. Red Bull does not have
high variations in its products packaging, but it has launched different flavours to suite different
customer preferences and tastes. Another thing about its product is it came out with in demand
Red Bull sugar-free for its health focused customers. The packaging of Red Bull is very simple
in plain dark-blue-silver metallic canning that shows very limited description. The provision of
Lucozade's product mix is very diversified. Its product ranges are in form of carbonated high
energy drinks, jelly beans, tablets, jellies, glistens, energy bars, and many other product ranges
(Widiastuti, Indrawati and Wibowo, 2021). It is one of the strategies used by Lucozade to
popularise its products in the marketplace. Its style of packaging is done so interesting and
artistically that appears to boost the energy levels by holding it, as it changed its tag to 'energy
drink' instead of 'original' that reflects its core features.
Aaker's Brand Personality model to understand the brand's framework of Red Bull as
'energetic, courageous and winged' personality whereas, Lucozade's personality as 'never-say-die'
given below:
Red Bull Lucozade Energy
Core Core products of it involves
carbonated drinks and alcoholic
drinks and recently moved towards
Its core products involve drinks, jelly
beans, medicines, supplement products,
tablets, energy bars and high performance
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energy drinks. sports energy drinks.
Actual The company's actual products
involve, flavoured or unflavoured
carbonated soft drinks and energy
drinks as well as sugar-free energy
drinks.
The company's actual products includes
energy boosting and dietary supplement
products with soft drinks, jelly beans,
energy bars, and energy drinks (Oktavia,
2020).
Augmented Red Bull has augmented to achieve
grow of its sugar-free and low
carbonated energy drink.
The company is moving towards online
marketing very frequently and wants to
cover more market.
Price
Price is the amount or worth in monetary or currency terms a consumer pays for a
particular product or service(Wegmann, 2020). Massive brand reach, quality, and reach to
customers are factors that made Red Bull to drive premium prising statistics for its products. Red
Bull is offered with premium pricing at various supermarkets, grocery shops, night clubs etc. Red
Bull has a very huge and supportive consumer base which helps to put its prising so high which
makes it highly competitive in the choices along the competitive products. The price at which the
Lucozade's product is offered determines how it perceives market and its performance at a
particular marketplace. The brand has high pricing for its energy drink because for those who use
an product, the quality of that product can be determined by its prices. 'Higher the quality higher
the price' strategy of pricing is used by Lucozade to maintain its brand image. Although it sells
variety of products that are having variation in their pricing. The average prising of all the
products are slightly higher than market this helps it to be deemed as a substantial brand in the
market. Also, the company tries to adjust the prices according to the needs and purchasing power
of the customers.
Red Bull
The company has a large number of
competitors in energy drinks industry and
hence there pricing strategy is based on
Lucozade Energy
The company pricing strategy is dependent on
its sellers and varies from charging different
prices for different products based on its sellers
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competitor pricing. Being a market leader in
energy drink industry, the company can charge
high prices for products and customers will
buy in any case.
and customers. The company is basically using
Price skimming strategy to attract customers
and boosts its sales.
Place
The component of the marketing essentials can be explained as the accessibility of the
products to the target clients at a specific locus. The placing includes distribution channels hat
involves distributors, wholesalers, retailers and internet operations (Anaza And et. al., 2021). In
context to Red Bull, the company's products are easily available in grocery stores, supermarkets,
nightclubs which resulted in increasing brand's value. In various convenience stores, the products
are kept along with its competitive products in order to give consumer a choice to choose. The
company's products are often stored in refrigerators to attract customers whenever they go for
grocery shopping. In addition to that its products are available in single making or bulk packs
with its presence in over 171 countries. In case with Lucozade , the brand's products are sold
online as well as offline through small-medium-mega multiple stores. The products are stocked
in various outlets including hypermarkets, supermarkets, shopping complexes, grocery stores and
many other outlets. The products of Lucozade are available easily and placed at such paces that
makes it easy for customers to attain it. In case of channel of distribution, the company uses
'Long channel distribution' which involves producer-wholesaler-retailer-consumer.
Promotion
Promotion involves information and details about the product or service a particular
organization is dealing in (Hooley and et. al., 2020). Red Bull spends a huge amount of its
investments in annual promotion campaigns, through digital and non digital advertisements. The
company use various above the line and below the line as along with digital marketing and
promotions to create awareness of its products. Red Bull uses concept of short storey telling to
attract and easily promote its products without incurring huge costs. Red Bull uses slogan 'Red
Bull Gives You Wings' that is now inscribed on the minds of people whosoever ever listens it
ones. On the other hand, promotion for Lucozade is crucial component of marketing process that
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helps it to communicate to its customers. Lucozade promotes its products in different ways
through advertisements, cinematography, promotional campaigns, direct selling, advertising in
movies, newspapers, magazines, etc. with the help of affluent people.
Promotional ways of both the companies are compared below with the help of a table:
Red Bull
It publishes awesome contents to get access to
major media outlets to attract more customers.
Its publicity stunt on 'Go Big or Go Home' by
the company helped to attract and gain wider
audience coverage in the market.
Lucozade
It use an 'Yes' campaign to promote its
products on TV.
The alliances such as 'Lucozade with Spotify'
an music online platform has helped it to
promote its products more effectively and
efficiently.
CONCLUSION
With the help of the above report it had been understood that marketing mix is a set of
tools that helps an organisation to cover and attract its potents in a market. In this 4P's plays a
very essence role in achieving organisational goals and objectives. The report provides a
comparison between two competitive brands and how they cover larger market areas. Their
comparative based on 4P's is being presented in the report. It had been underlined that both the
companies uses marketing and promotion activities with the help of segmenting, targeting and
placing their products effectively. Product,price, place and promotional mix of these companies
can also be understood by this report.
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REFERENCES
Books and Journals
Anaza, N.A. And et. al., 2021. Customer-brand disidentification: Conceptualization, scale
development and validation. Journal of Business Research, 133. pp.116-131.
Hooley, G. and et. al., 2020. Marketing strategy and competitive positioning. Pearson UK.
Kountul, B., Posumah, F. and Memah, H., 2020. Pengaruh Strategi Marketing Mix Terhadap
Keputusan Pembelian Konsumen Pada CV. Anugerah Mulia Tomohon. Buletin Sariputra
Jurnal Ilmu-Ilmu Multidisiplin-Print, 10(3).
Oktavia, I., 2020. Pengaruh Marketing Mix Terhadap Keputusan Nasabah Untuk Menabung Di
Bank Syariah Dengan Pengetahuan Sebagai Variabel Moderating (Studi Kasus Bank BRI
Syariah Semarang).
Prihatiningtyas, G. and Chasanah, U., 2021. PENGARUH MARKETING MIX TERHADAP
KEPUTUSAN PEMBELIAN KONSUMEN DI BLANCO COFFEE
YOGYAKARTA (Doctoral dissertation, STIE Widya Wiwaha).
Uriona Grageda, G. K., 2021. Uriona Grageda Grecia Karen Plan de marketing mix para
incrementar las ventas de la línea Frut-all de la empresa SEASA SA en el departamento
de Cochabamba.
Wegmann, C., 2020. Werbung für Lebensmittel. In Lebensmittelmarketing (pp. 199-261).
Springer Gabler, Wiesbaden.
Widiastuti, Y., Indrawati, T. and Wibowo, N.M., 2021. PEMBERDAYAAN UMKM CINDERA
MATA MELALUI STRATEGI MARKETING MIX. Prosiding Konferensi Nasional
Pengabdian Kepada Masyarakat dan Corporate Social Responsibility (PKM-CSR), 4.
pp.7-7.
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