Comparison of Marketing Essentials: Lucozade vs Red Bull

Principles of Marketing
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Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Comparison of Target Markets................................................................................................................3
CONCLUSION & RECOMMENDATION................................................................................................6
REFERENCES............................................................................................................................................7
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EXECUTIVE SUMMARY
The report is based on the use of marketing mix tool by different brands dealing in same
product line. The two energy drink brands that is Luzozade and Red Bull is taken in this report
and their various marketing tools and strategies re been compared and evaluated. Moreover on
the bases of the study the suggestion are been provided which they can take in order to improve
their market performance and able to attract large number of potential customers.
INTRODUCTION
Marketing is an important function of the business as it acts as a bridge between targeted
customers and company. This report is aimed at comparing marketing essentials of two
companies. Lucozade energy and Red Bull energy drinks have been taken as two competitive
companies in same industry whose marketing mix will be assessed below.
Lucozade is a soft drink company. It was introduced in 1927 by pharmacist, William
Walker Hunter as “Glucozade” as an energy drink. It was later acquired by GlaxoSmithKline
group and from them to Japanese drinks conglomerate Suntory. Initially, traded as energy drink
for the sick, it was later rebranded as sports drink. Company provides products all over UK. Red
Bull is also an energy drinks brand like Lucozade. It is manufactured and marketed by Austrian
company Red Bull GmbH. It was first introduced in 1987 and six years later in 1993, it came to
UK. Unlike Lucozade, Red Bull is a multinational company and targets active youth customers.
There are many brands in soft drink industry in UK such as Red Bull, Lucozade, Boost,
Monster, Rockstar, Relentless, etc. but together, Red Bull and Lucozade takes maximum market
share of energy drinks in UK market. As per the surveys in 2018-19, Red Bull had the market
lead in 2018 but was taken over by Lucozade in 2019 by a slight margin (Ranking of energy
drinks brands by number of users from 2018 to 2019, 2020). UK energy drinks market is
expected to grow with only 4.3% during 2016-2015 (UK energy drink market growth, forecasts
and trends (2020 – 2025), 2020). That can be owed to increase in awareness for fitness and
activity level of users which is causing consumers to shy away from drinks which have lot of
sugar in them.
MAIN BODY
Comparison of Target Markets
Lucozade is one of the most popular energy drink which is segmented and positioned as
sports drink and is targeting the youth of the country. The company is adopting cost leadership
pricing strategy that is having affordable prices with the motive to attract the potential customers
belong to different income groups. The company is providing quality drinks to its customers
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