Marketing Mix Analysis of Lucozade Energy and Red Bull Energy Drink

This report evaluates the effectiveness of the marketing mix for Lucozade Energy and Red Bull Energy Drink, including product, pricing strategy, place, and promotion. It compares their target markets, product features, pricing strategies, distribution channels, and communication methods.

Marketing

EXECUTIVE SUMMARY
The report of marketing is prepared to evaluate brands on the basis on elements of marketing
mix. Aim behind the report is to analyse effectiveness of marketing mix for two Brands that are
Lucozade Energy and Red Bull Energy Drink. Lucozade Energy is popular UK based soft drink
manufacturer since 1927. On other hand, Red Bull Energy is Austrian business established in
1987. For this report, observational along with secondary research methods are used as research
methods. It evaluates both brands as per product, pricing strategy, promotional techniques and
place of availability.

Table of Contents
EXECUTIVE SUMMARY...............................................................................................................
INTRODUCTION...........................................................................................................................1
FINDINGS.......................................................................................................................................1
Comparing target markets............................................................................................................1
Product.........................................................................................................................................2
Price.............................................................................................................................................2
Place.............................................................................................................................................3
Promotion....................................................................................................................................3
CONCLUSION AND RECOMMENDATIONS............................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing is overall approach for reaching desired new customers (Dwivedi and McDonald,
2018). It is commonly popular as incorporating knowledge that is collected through studying
course of managing exchange relationships, attracting customers and adopting business process
including steps to identify, forecast and satisfy wants of target market. For the project,
considered brands are Lucozade Energy and Red Bull Energy Drink. Lucozade Energy have
been in soft drink market since 1927 and is leading the industry under 60% value share of entity.
As of 2020, the company have generated approximately 189 million British pounds worth sales
in soft drink products. On other hand, Red Bull Energy Drink is the company that have 43% of
energy drink market and have generated about 223 million British pounds worth of sales in their
energy drink goods.
The report includes comparison of target market of both brands, products and their brand
values. It also evaluates pricing strategies, distribution and communication of both brands.
FINDINGS
Comparing target markets
Target market could be delineated to group of people for whom business is established and
sell its offerings. Likewise, target market profile refers to particular group of people that mostly
like to respond towards promotions, commodities and services in positive manner. Comparison
among target market of Lucozade Energy and Red Bull Energy Drink is below:
Target market of Lucozade Energy Target market of Red Bull Energy Drink
Lucozade Energy is most popular energy drink
company that targets young men that are aged
among 18 years to 30 years having huge
interest in sports and are highly mobile. The
target market watches TV programme and
belongs to upper high class social class
(Lucozade Energy, 2021).
Red Bull Energy drink is energy drink product
that target teenagers and young adults of both
male and female (Red Bull Energy Drink,
2021). Furthermore, it targets any race that
belongs to upper income as well as highly
social classes across the world. People having
interest in extreme sports addition to
challenging recreational activities are its key
target market.
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Product
Product is termed to any article or substance which is produced and refined to selling
purposes (Andrade Pérez, Novoa Chong and Simón Cosme, 2021). Levitt’s model of a brand
defines product of a company on certain basis that includes shape, packaging, colour scheme and
many more. In context to Lucozade Energy, the products are shaped in bold typeface that are
cube in centre which shines light across al directions. Colour schemes used in product of
Lucozade Energy are orange, pink, green, mixture of blue and orange, red and green, orange and
blue, etc. In contrary, product of Red Bull Energy Drink is shaped as iconic symmetrical of
fighting bull that reflects power and endurance. Colour scheme used for Red Bull Energy Drink
is grey and blue.
Aaker’s brand personality framework is propounded by Jennifer Aaker that described traits
of a brand in five major dimensions that are sincerity, ruggedness, excitement, sophistication and
competence (Özbay and Sariişik, 2018). In relevance to Lucozade Energy, products are featured
as sincere due to cheerful and genuine, excitement because they are imaginative and unique,
competence as they are reliable and trustworthy, sophisticated because of glamorous and
charming along with ruggedness as of high quality. In contrary, Red Bull Energy Drink have
personality of sincerity because it is wholesome and honest, excitement as it is celebrity
endorsed, anti-established and daring, competence due to successful and responsible,
sophistication because of upper class and luxurious addition to ruggedness as of strong and
authentic.
Price
Price refers to a variable which have huge implications for revenue. It comprises of
considerations related to customer perceived value (Golarzi, Razgah and Shahriari, 2015).
Pricing strategy is a method to set price of offerings on the basis of ability to pay, competitor
actions, input costs, market conditions and other factors. Evaluation of price of Lucozade Energy
and Red Bull Energy Drink is as follows:
Basis Lucozade Energy Red Bull Energy Drink
Pricing strategy For Lucozade Energy, pricing
strategy used by managers is
competitive pricing with the
objective of driving target
For Red Bull Energy Drink,
premium pricing strategy is
used to position itself.
Consumers or user of the
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audience away from rivals and
towards brand. With this, the
entity continues to recover and
restore growth patterns.
energy drink pays premium
price because of its quality
and benefits which reflects
that it is best selling energy
drink across the world.
Market price Online and In-store research
says that price of Lucozade
Energy Original is £29.99 for
12 Pack of 1 L, £19.29 for 24
Pack of 380ml and £23.98 for
24 Pack of 380ml (Lucozade
Energy, 2021).
As per In-store and online
research, price of Red Bull
Energy Drink is £28.38 for 12
Pack of 250ml, £27.95 for 12
Pack of 473ml and £36.06 for
24 Pack of 35ml (Red Bull
Energy Drink, 2021).
Place
It is providing customer access along with considering delivery of convenience for
consumers. Channel management is a process in which an organisation develops certain
marketing techniques along with sales strategies so to reach widest customer base in possible
aspects. In other words, channel is ways or outlets adopted by business concerns to market as
well as sell its offerings. In case wit, it stocks its product at supermarket, shopping malls,
hypermarket along with various other outlets. It is a mass market commodity because the venture
has maximised distribution outlet so that target market easily finds it and others who have
demands to consume it do not strain in quest for searching it. The brand has efficient distribution
system that keeps customers satisfied with availability (Ho, Pang and Choy, 2020). However,
Red Bull Energy Drink is stocked at convenience stores, night clubs, supermarket, retail outlet,
casinos and bars. The drink is mass market commodity due to having maximum distribution
outlet which makes it easy for customers to purchase it from Red Bull exclusive refrigerators and
online websites as per convenience.
Promotion
It is defined to marketing communications that include elements such as direct marketing,
advertising, sales promotion and public relations. main purpose of promotion is to make offers to
known potential customers together with persuading them for further investigation (Hemmerling,
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Hamm and Spiller, 2015). As per the research, communication methods used in Lucozade
Energy are direct selling, advertising and promotional campaigns. It’s Of interest is “Yes”
Campaign that was conducted on television. Moreover, its various promotions are done with use
of popular social media sites on internet so to become for visible and conscious among target
generations. To promote the brand, famous personalities to endorse was quite effective. It is
positioned among mind set of target audience as affordable and healthy brand. In contrary, Red
Bull Energy Drink used promotional aspects of exhibitions, print media, organisational website
and TV. For building respective brand, communication methods used for the product includes
endorsement by multiple sports athletes along with celebrities. They have Red Bull television
available on laptops, gaming consoles, tablets airing multiple music festivals, performances,
videos, films and shows. They have own merchandise stores online along with magazines for
sports person. With these promotional activities, Red Bull Energy Drink recall every time in
order to positioning themselves as luxurious and socially conscious brand.
CONCLUSION AND RECOMMENDATIONS
From the report of marketing, it is concluded that marketing mix is combination of factors
which are controllable in nature for influencing customer base to buy organisational offerings. 4
P’s of marketing are seen as factors such as product, price, place together with promotion of
commodity or service. Each have applied 4P’s effectively for taking product to market, defining
pricing strategy, suitable place and promoting product to meet specific customer demand. The
brands have applied 4P’s in this was because of attaining all marketing objectives promptly.
Among both, Red Bull Energy Drink has been more successful in applying elements of
marketing mix. For improving use of 4P’s, both brands are recommended to replace them with
4C’s that is replacing product with customer value, price with cost, promotion with
communication and place with convenience. Along with this, it is also recommended to both
brand for improving application of marketing mix that should define end results to be, establish
budget, determine unique selling propositions, creating in-depth profile of idea customers,
defining products in details, knowing distribution channels and selecting effective pricing
strategies.
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REFERENCES
Books and Journals:
Andrade Pérez, M. J., Novoa Chong, A. A. and Simón Cosme, J. C., 2021. La participación del
marketing mix en la intención de compra de los consumidores residenciales de GLP
envasado en el distrito de Santiago de Surco.
Dwivedi, A. and McDonald, R., 2018. Building brand authenticity in fast-moving consumer
goods via consumer perceptions of brand marketing communications. European
Journal of Marketing.
Golarzi, G. H., Razgah, M. M. M. and Shahriari, M., 2015. Investigating the impacts of
Marketing Mix Planning on Financial Performance: with the emphasis on the mediating
role of customer satisfaction. Asian Journal of Research in Marketing, 4(4), pp.82-95.
Hemmerling, S., Hamm, U. and Spiller, A., 2015. Consumption behaviour regarding organic
food from a marketing perspective—a literature review. Organic Agriculture, 5(4),
pp.277-313.
Ho, J., Pang, C. and Choy, C., 2020. Content marketing capability building: a conceptual
framework. Journal of Research in Interactive Marketing.
Özbay, G. and Sariişik, M., 2018. The menu as a component of marketing mix in the food-
beverage businesses and an analysis of menu presentation in social media: the case of
tripadvisor. Güncel Turizm Araştırmaları Dergisi, 2(Ek1), pp.42-59.
Online:
Lucozade Energy. 2021. [Online]. Available through: < https://www.lucozadeenergy.com/>
Red Bull Energy Drink. 2021. [Online]. Available through:
<https://www.redbull.com/in-en/energydrink/red-bull-energy-drink>
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