Marketing Strategies of Suntory and Red Bull GmbH

This report analyzes the marketing strategies of Suntory and Red Bull GmbH for building a strong brand image and enhancing sales and profitability. It covers the target market, product/brand, price, place, and promotion strategies of both companies. The report concludes that effective marketing strategies help in gaining a competitive market share.

Principles of Marketing

Executive Summary
This report aim is to analysis various marketing strategies that are used by companies
such as Suntory and Red Bull GmbH for building strong brand image in the industry. This
project has use various method to conduct research such as secondary and observational
research. It has analysis marketing strategies of both companies in order to understand the
importance and role of 4p's of marketing in building strong brand image and enhancing sales and
profitability of the company.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Marketing Mix.................................................................................................................................4
Target Market...............................................................................................................................4
Product/ Brand.............................................................................................................................4
Price.............................................................................................................................................5
Place.............................................................................................................................................6
Promotion.....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing includes activities that are used by company to influence customers to make
purchase of products and services thus help in achievement of organisational goals. This report
covers comparative analysis of Brand Lucozade Energy and Red bull on the basis of effective
application of 4p's of marketing by the companies. Red Bull GmbH is an Austrian company with
total sales of Red Bull is 7.5 billion on the other-hand Suntory is a Japanese company with £1.35
billion sales of Lucozade. This report also explains the target market of both the company that
helps in gaining competitive advantages in the market.
Marketing Mix
Target Market
It includes various factors such as age, gender, disposable income and education level of
people living in the society. Company in order to satisfy needs of its customers has to identify its
target customers. Red Bull is an energy drink so company targets mainly younger segment, sport
people for market of its products (Bohrer, 2018). On the other-hand Lucozade produced drinks,
medicine bars and gels so its target customer all age group from old people, sick children to
younger to provide extra energy to them. Red Bull has target people from age group 18 to 27
whereas Lucozade has targeted from 5 year old children to 60 year old people can also use such
product to enhances there stamina (Richardson, 2019). Company has also divided and classified
product on the basis of demographical structure and family life cycles. Such as Lucozade has
developed drink for youth, medicines for old age people and bars for children so that each one
can satisfy its needs effectively. On the other -hand Red bull only provide energy drink for youth
people in Australia are people age group between 15-64 are 15.66% only so company by
expanding its market share in other country is able to grow and expand (Saidani and Sudiarditha,
2019). Red Bull market its product through advertisement in TV to attract young customers
whereas Lucozade advertise its product through boarding and hoarding or by sponsorship various
sport events. Thus, both companies have targeted different customers group to gain competitive
advantages in the market.
Product/ Brand
It included the features, benefits of product in which company is dealing to earn
maximum profit in the market. Product or brand in which both companies deals is explained
through Levitt”s model of brand:

Generic: A specific brand name is assigned to products that have similar features, benefit in
order to differentiate product from other competitors (Išoraitė, 2020). Red bull GmbH
manufacture energy drink with brand name Red Bull that is famous among every youngster in
today generation. Whereas Suntory use brand name Lucozade to sales its products such as
medicines, bars that provides extra energy to people to work effectively.
Expected: It is expectation of consumer regarding product features, packaging, benefits and
colour. Red bull has meet expectation of youngster customers by using attractive packaging and
innovative ingredient in energy drink (Hisrich, and Ramadani, 2017). Whereas Lucozade has
product can be available to customers at minor stores as well as online to cater needs of
youngster as well old people.
Augmented: In this stage company has higher value of its brand or product in the market. Red
bull has high brand image in the market as compared to Lucozace as most people prefer Red Bull
more.
Price
Basis Lucozade Energy Red Bull
Pricing strategy The pricing method which is being
used by Lucozade energy is penetration
pricing which is making the company
have a better capture of market for
themselves. Initially the prices of the
products are set low in this strategy so
that there is a capture of the market
base and then increase the rates slowly
after the company has gathered the
demand for the product. Pricing of
Lucozade is 500 ml for $2.94. This
pricing strategy will help the company
to explore the market better and
capture enlarge their market shares
(Braciníková and Matušínská, 2017).
The pricing strategy which is
being used by red bull is premium
pricing so that they can have a
profit in market. In premium
pricing strategy includes setting
the price of the product higher
than the similar product in market
so that there is a attention of the
customer towards the product.
Pricing of 500 ml of red bull is
going to be $3.04. There are a lot
of limitations which come with
this style of market pricing for a
long run. Psychologically there is
luxury which the customers will
get attracted to with this pricing

strategy.
Conclusion Lucozade energy is using a comparatively better strategy for themselves
because this will make the company have a better market for themselves.
Red bull will not be able to capture the market as much as Lucozade for a
long run in market. For a long run red bull has made loyal customers for
themselves, but they are not being able to capture a larger market for
themselves with this pricing strategy.
Lucozade Red Bull
Price of products 1 litre energy drink for
₹2,269.
Original and Sugar free- 24*8.4 oz.Can
for $33.89 (Red Bull Prices,2019)
Place
The place can be divided retailer, online, direct sales, peer to peer, etc. This makes the
company have a better decision-making for themselves so that they can capture more customers
in the company which is very important for the company. Place can make the company capture
the market shares and having better future vision for themselves in market. This product is
penetrating into the market which is by having loyal customers and having a low pricing for the
product is making the company travel to different markets and make a place for themselves
easily (NEDELEA and Nedelea, 2016). This product has got online through the help of
technology which is making the company have a great advantage for themselves. The product is
being able to explore the market which is making the company gain more experience and
increase in price according to the customers is being done in company. Red bull is priced so high
that they have not been able to capture the market for themselves so much. Being a luxury brand
it has not been able to capture the market as much as they had expected because the product is
not being able to be consumed by a large customer base in market. The value of the company is
people, ideas and culture of the company which is making the company achieve their goals
because the way they approach the market. The outlets red bull has been very limited therefore
they are not being able reach to a large customer base. Only authentic stores can sell this product
so that the company can have loyal customers and trust between the customers and the company.

Promotion
This method is very important for the company so that they can capture the market easily.
The methods which are used and were used by the two companies are as follows.
Lucozade energy drink focuses on the sports department so that they can capture the
market better for themselves. There are magazine advertising which are used by company so that
they can capture the market better. The tag line has not made the company attract a lot of
customers but the pricing and placing of the company has made the company have so many
customers (Lewnes and Keller, 2019). Promoting the company through magazines and other
promotion methods, company has reached where it is today. Tag line was changed from
“Lucozade aids recovery” to “Lucozade replaces lost energy” so that the company can attract and
get a larger market share for themselves. Red bull does not use any famous actors or promoting
techniques as such because they do not believe in promoting the popular energy drinks. Red bull
advertises themselves in market so that they can capture more market for themselves. In those
advertisements also they use cartoons and the tag line of the company “Red Bull gives you wing”
has made the company stay in the heads of the customers which has captured the minds of the
customers quickly. Red bull is having innovative methods which are being used in the company
so that they can have a better functioning for themselves and organization is thinking of more
creative methods to attract more customers in the company (Richardson, 2019).
CONCLUSION
From the above report it can be concluded that effectively marketing strategies helps in
gaining competitive market share by building strong brand image of the company. It can also be
explained that every company need to identify target customers for marketing of products and
services to satisfy needs of customers effectively. It can also be concluded that 4p's of marketing
helps in enhancing profitability and sales of both company.

REFERENCES
Books and Journals
Bohrer, K. M., 2018. Marketing mix nas plataformas do ambiente virtual.
Braciníková, V. and Matušínská, K., 2017. Marketing mix of financial services from the
customers perspective. In Forum Scientiae Oeconomia (Vol. 5, No. 4, pp. 35-48).
Hisrich, R. D. and Ramadani, V., 2017. Entrepreneurial marketing mix. In Effective
Entrepreneurial Management (pp. 75-99). Springer, Cham.
Išoraitė, M., 2020. MARKETING MIX FEATURES. Ecoforum Journal, 1(1).
Lewnes, A. and Keller, K., 2019. 10 Principles of Modern Marketing. MIT Sloan Management
Review.
NEDELEA, A.M. and Nedelea, M.O., 2016. Humane marketing, peace marketing and
rebranding marketing. Ecoforum Journal. 5(2).
Richardson, N., 2019. Sustainable Marketing Planning. Routledge.
Saidani, B. and Sudiarditha, I. K. R., 2019. Marketing Mix-7ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB). 7(1). pp.72-86.
Online
4 Ps. 2017. [Online]. Available through : <https://lucozade2017.wordpress.com/2017/04/26/4-
ps/>.
Red Bull Prices. 2019. [Online]. Available through : <https://www.hangoverprices.com/red-
bull-prices/>.
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