The 4ps/marketing Mix ( Comparison Between Red Bull and Lucozade)
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Running head: MARKETING MIX The 4Ps/marketing mix (A comparison between Red Bull and Lucozade) Name of the student: Name of the university: Author note:
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1MARKETING MIX Table of Contents 1. Comparison of Target Markets....................................................................................................2 2. Product.........................................................................................................................................2 3. Price.............................................................................................................................................6 4. Place.............................................................................................................................................6 5. Promotion....................................................................................................................................7 Conclusion and Recommendations..................................................................................................7 Recommendations........................................................................................................................7 References........................................................................................................................................9
2MARKETING MIX 1. Comparison of Target Markets ThetargetmarketofLucozadecompriseshigh-incomemale,femaleandsports enthusiasts. These people buy various products from Lucozade such as Lucozade Energy, Lucozade Sport, Lucozade, etc. Lucozade is a nationwide popular and reputed energy drink brand in the United Kingdom. Lucozade energy received a certificate of excellence from the 'European Food Safety Authority’ (Rortaiset al.2017). On the other hand, Red Bull has mass popularity behind it. As of the 2018 report of Statista, Red Bull has the biggest customer base in the United Kingdom energy drink sector. It is ahead to two of the most popular drinks of Lucozade, Lucozade Energy and Lucozade Sport (Statista 2020). Red Bull targets teenagers, college students, young adults and different socio- economic classes. Lucozade and Red Bull both went for the changes in their use of ingredients over the times. The change brought fruitful results for Red Bull; however, not so for Lucozade. The reformulation of energy drink in search of offering the low-sugar drink received the company a backlash. Lucozade could witness an affected business during such times. Contrary to this practice, Red Bull continued with its sugar variant of energy drink and instead; offered a sugar- free version as well. It is how Red Bull could survive a business loss as happened to Lucozade. Studies suggest that the reformulation of energy drink affected the Lucozade business as the sales dropped down by 19% approximately. On the other hand, the sugar-free version of Red Bull boosted up its overall sales by approximately 10 times (Pellet al.2019). 2. Product
3MARKETING MIX The product offering of either of the companies will be assessed using ‘Levitt’s Product Level’ and ‘Aaker’s Brand Personality Framework’. Therefore; Fig 1: Levitt’s Product Level (Source: Kim, Kim and Choi 2019) The above is a diagrammatic presentation of Levitt's model. It shows that a product has broadly three distinct types, Augmented product, Actual product and the Core Product Benefit. Product TypeLucozadeRed Bull Augmented productfreedeliveryforgoods purchased online online purchase is available Actual productRedesigned the bottle to give it a squirty cap on the top of the bottle to make it suitable for It uses classic tall and thin cans, which later became the signature packageforthe
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4MARKETING MIX sportspersons ï‚·Lucozadeisalso available in forms of tabletsandbarsto makeitsuitablefor consumptionduring the exercise times. energy drink industry. ï‚·RedBulldoesnot comeintabletand bars forms Core Product BenefitLucozadeisarecognized energydrinkintheUnited Kingdom. Red Bull is easy to use for its cans and is an instant energy booster. Table1: Product Comparison (Source: GarcÃa Sánchez, Molero and Rama 2016) The findings of the table show that both Red Bull and Lucozade offer more or less similar product benefits to its customers. Red Bull does not match up with the Lucozade in terms of packaging as Lucozade is also available in bars and tablets. On the other hand, Red Bull is massively popular in the United Kingdom and leads the energy drink sector for a few distinct reasons such as the use of cans for packaging.
5MARKETING MIX Fig 2:Aaker’s Brand Personality Framework (Source: Malik and Naeem 2013) The above is an 'Aaker’s Brand Personality Framework’, which helps to identify the most suitable personality for a brand. Energy BrandCompetenceRuggednessExcitement Lucozade√√ Red Bull√√√ Table2: Personality Comparison (Source: Douglaset al.2018) The table indicates that Red Bull fulfills three personality types ofAaker’s Framework whereas Lucozade does not qualify for ‘Ruggedness’. This is the point of difference between
6MARKETING MIX Lucozade and Red Bull based on ‘Aaker’s Brand Personality Framework’. Red Bull can be classified as ‘Ruggedness’ as its cans became the signature package for many other energy drink brands in the United Kingdom. 3. Price Lucozade can be considered as following a ‘Competitive Pricing Strategy’ to remain affordable for its target market. The pricing is definitely on a higher side compared to a few brands; however, that also does not affect its sales due to the quality of the product. Lucozade is one of the most popular energy drink brands in the United Kingdom. Red Bull, on the other hand, charges a premium for its product. Red Bull secures a top slot in the UK rankings for energy drink brands for the most wider customer base. Customers have liked the brand and its drink packaging style (Jones and Comfort 2019). 4. Place Red Bull can be easily found at convenient locations like retail outlets, supermarkets, bars and casinos, and convenience stores. People in bars and casinos like to have Red Bull drinks with alcoholic beverages. It is why Red Bull is also available in bars and casinos. It also shows how good Red Bull is in positioning its drink to suitable sales points. Red Bull can also be found in grocery stores in exclusive refrigerators of Red Bull. It is also available for online sales (Moreira and Tjahjono 2016). This is how Red Bull increases the visibility of its products.
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7MARKETING MIX Lucozade is also available in retail chains such as ASDA, sports center, gyms, dessert stores and bread stores. Lucozade products can also be obtained from its official website for free home delivery (Moreira and Tjahjono 2016). 5. Promotion Lucozade uses TV adverts to a good effect. Video game advertisement such as using a video game character ‘Tomb Raider’, is executed to target the teenage population of the country. However, Red Bull is more established as a marketing player as compared to Lucozade. Red Bull sponsors the different events and sports teams to receive wider public and media attention. Red Bull also airs many music festivals, shows, performances, etc. Red Bull films are also available for PCs, Laptops, Mobiles, gaming consoles, etc. The brand recall value of Red Bull is very appreciating (Wattet al.2019). Conclusion and Recommendations As found in the study, Red Bull lacks a diversified product portfolio that may concern to the management team. Lucozade has a less compelling brand recall value as compared to Red Bull. These will be the areas of consideration for both of these energy drink brands. Recommendations Lucozade
8MARKETING MIX It needs to work on its promotion strategy to reach a diverse customer population to increase its brand recall value. It can follow the footsteps of Red Bull as the company is extremely active with its promotion strategy. Red Bull Red Bull lacks an effective product portfolio. It can make it effective through a few points of consideration. Red Bull can go for Health Drinks to target the customer population needing health drinks. Health drinks should be a success considering the brand image of Red Bull and the customer demand for healthier alternatives.
9MARKETING MIX References Douglas, N., Knai, C., Petticrew, M., Eastmure, E., Durand, M.A. and Mays, N., 2018. How the food, beverage and alcohol industries presented the Public Health Responsibility Deal in UK print and online media reports.Critical Public Health,28(4), pp.377-387. GarcÃa Sánchez, A., Molero, J. and Rama, R., 2016. Local cooperation for innovation. Food and beverage multinationals in a peripheral European country. Jones, P. and Comfort, D., 2019. An Interpretative Analysis of Storytelling in the Beverage Industry.Athens Journal of Tourism,6(3), pp.141-154. Kim, S.J., Kim, K.H. and Choi, J., 2019. The role of design innovation in understanding purchase behavior of augmented products.Journal of Business Research,99, pp.354-362. Malik,E.M.andNaeem,B.,2013.Aaker’sbrandpersonalityframework:Acritical commentary.World Applied Sciences Journal,24(7), pp.895-899. Moreira, M. and Tjahjono, B., 2016. Applying performance measures to support decision- making in supply chain operations: a case of beverage industry.International Journal of Production Research,54(8), pp.2345-2365. Pell, D., Penney, T., Hammond, D., Vanderlee, L., White, M. and Adams, J., 2019. Support for, and perceived effectiveness of, the UK soft drinks industry levy among UK adults: cross- sectional analysis of the International Food Policy Study.BMJ open,9(3), p.e026698. Rortais, A., Arnold, G., Dorne, J.L., More, S.J., Sperandio, G., Streissl, F., Szentes, C. and Verdonck, F., 2017. Risk assessment of pesticides and other stressors in bees: principles, data
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10MARKETING MIX gapsandperspectivesfromtheEuropeanFoodSafetyAuthority.ScienceoftheTotal Environment,587, pp.524-537. Statista 2020.Leading Brands Of Energy Drinks In The UK 2018 | Statista. [online] Statista. Availableat:<https://www.statista.com/statistics/308493/leading-brands-of-energy-drinks- excluding-colas-or-mixers-for-alcoholic-drinks-in-the-uk/> [Accessed 27 March 2020]. Watt, T., Cornelsen, L., Beckert, W. and Smith, R., 2019. Reducing consumption of unhealthy foods and beverages through banning price promotions: what is the evidence and would it work?.Public Health Nutrition.