Comparison of Marketing Strategies: Lucozade Energy vs Red Bull

This report compares the marketing strategies of Lucozade Energy and Red Bull, focusing on their targeted markets, product/brand strategies, pricing strategies, distribution channels, and promotional efforts. Lucozade Energy targets males aged 18-30, while Red Bull targets customers aged 13-35. Lucozade Energy frequently changes its packaging and uses a variety of colors to attract customers, while Red Bull uses a consistent packaging design. Lucozade Energy uses competitive pricing, while Red Bull uses a cost-plus pricing strategy. Both companies sell their products in domestic and global markets through direct and indirect channels. Lucozade Energy promotes its products through social media and local platforms, while Red Bull sponsors tournaments and uses the slogan 'Red Bull gives you a wing'. Overall, Red Bull employs more proficient marketing strategies.

PRINCIPLES OF
MARKETING

INTRODUCTION
Marketing relates to the process in which the organization used to promote and sell the product
of the company with the help of marketing research and advertising. This report highlights the
way two company i.e. Lucozade energy and Red bull used to uses the marketing strategy in the
organization and also the market which is targeted by them.
MAIN BODY
Company overview
Lucozade energy
Lucozade energy is a soft drink manufacturing Japanese company. Lucozade energy is well
known for manufacturing energy drink in a range of sports.. It was acquired by the British
pharmaceutical company Beecham's in 1938 and sold as an energy drink for the sick as
Lucozade energy.
Red Bull
Red bull is an energy drink producing Australian company Founded in the year 1987. Red Bull
is the organization which is having the highest market share in the market.. Red bull used to
produce 6,790 billion cans sold. More than 12000 employee are employed by Red bull.
Comparison
Targeted market
Lucozade energy is the company which looks to target male of aged between 18-30 for selling
the energy drink in the market. The biggest reason for choosing this targeted market was that
company used to promote the product with the help of sports performance market. As large
number of the sports person lies in the same category Lucozade energy used to target the male
with the age group of 18-3 years. As a result organization used to divert 2.2 million out of total
5.5 million budget for establishing an outdoor presence(Hult, . and Ketchen, 2017). On of the
common think associated with Lucozade energy drink is that this brand is always obsessed with
the physicality. At the same time, Red bull is more proficient and uses the wider marketing
strategies in term of target market for selling the product of the organization. As Red bull used
to target the customer base of 13 to 21 years at the same time also target the customer group of
21 to 35 year. As red bull uses wing as a promotional tool to their product by highlighting that
red bull used to give energy for the consumer. Teenager of the age 13 -21 is easily attracted
toward the product of the company. At the same time the working consumer of 21 – 35 used are
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attracted by highlighting that with the help of the red bull a person can feel energized after a
whole day of work also. In the end it can be said that Lucozade energy uses the less resources
and less number of consumer in target market as compare to Red bull (Baker, and Saren, 2016).
Product/Brand
Both the company Lucozade energy and Red bull uses the mixture of the packaging and different
size of the bottle to sell the product in the market. Lucozade energy has changed the packaging
of their product in the recent past only. Lucozade energy used to sell the product in different
shape bottle which help them in attracting the eye of the customer in the market. The biggest
difference which has been brought by the organization is that they uses a variety of the color
scheme to attract the eye of the customer (Keegan, 2017). Most common new packaging is
running across Caribbean Crush, Wild Cherry, Brazilian, Pink Lemonade and Apple Blast
flavors. Most commonly sold product of the company is the bottle of 380 ml. Organization also
sell the product in 100 ml and 500 ml bottle also. At the same time Red bull uses cane as a
primary form of packaging the product. Generally Red bull do not changes the packaging of the
product on the regular basis. Their are several size of the cane which used to come in the market
(Morgan and et.al., 2019). Red bull cane shows the slogan of the company and also uses the
combination of the color to attract the eye of the customer so that with the help of the same
organization is able to see the good amount of the customer in the market. Red bull generally
uses differs the different color to represent the different Edition of product of the organization
i.e. red bull purple a taste of Acai berry, Red bull lime edition the of limeade. In the end it can be
said that Lucozade energy generally changes the shape, size and color scheme of the company on
regular basis as compare to Red bull whom generally used to uses the tradition formula to attract
the eye of the customer toward the organization.
Price
Price is the amount of the money which has to be payed by the customer in the market in return
of the goods and services in the market. Both the company Lucozade energy and Red bull uses
different pricing scheme and price to be offered in the market. Lucozade energy generally uses a
competitive based pricing strategy in the organization to offer product in the market. In this
pricing strategy organization used to look at the price of the product in the market and on the
basis of same company decides the price products. As Lucozade energy has to face the variety of
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the competition in the market Lucozade energy always try to keep the price of the product less so
that the company is able to larger number of the customer in the market. At the same time Red
Bull uses the most common pricing strategy in the organization i.e. Cost plus pricing strategy in
which organization used to find out the manufacturing cost of the company and after that they
add up the profit margin of the company to determine the price of the company (Kingsnorth,
2019). Generally this strategy is used by the company because there are many loyal customer of
Red bull who are ready to accept the price of the product due to the goodwill of the company.
Place
Lucozade energy and Red bull both used to offer the product of organization in both domestic
and global market. The main market which is covered by Lucozade energy market is the Europe
market where as Red bull used to offer product in the Australian market. In general all the
company uses both direct and indirect channel for selling the product of the company in the
market. (Kotlerand et.al., 2017). Lucozade energy used to sale the product indirectly with the
help of different outlet in the country. Lucozade also takes the help of different restaurant and
hotel to sell the product of the company in the market. At the same time Red bull used to sell the
product of the company in the market with the help of both direct and indirect channel. In direct
channel organization used to make the product available of the company in own outlet and also
takes the help of different outlet make the product available of the company. Their are more than
30000 outlet where the product of Red bull is sold by the company. Lucozade is sold in total 15
countries in the world including Australia, Europe, India and some countries of Africa. At the
other end Red bull is sold in total 171 countries all across the world. So in the end it can be said
that Red bull used to be sold in more countries as compare to the Lucozade.
Promotion
Promotion is the process in which organization makes a different efforts to make the consumer
inform about the product of the company . Red bull and Lucozade energy both are the firm
which uses a variety of the promotional tool and and different place to promote the product of
organization. Lucozade generally takes the help of the Social media platform and local platform
to promote the product of the company in the market (Ferrell and Speh, 2017). At the same time
Red bull also uses the variety of the promotional platform such as social media platforms and
local platform but with that organization also sponsor the variety of the tournament in the world
To promote the information of company product. Lucozade uses the Lucozade aids recovery" as
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a slogan to make the consumer aware about the product of the company which was than replaced
by "Lucozade replaces lost energy". Tag line to promote the product of Red bull is that “Red
Bull gives you a wing”. In the end it can be said that both the company uses the variety of the
promotional tool To promote the information of company product and both the company are
doing well in this aspect (Hansen, McDonald and Mitchell, , 2017)
CONCLUSION
The report has summarized that both the organization used to use the different strategies
to adopt the different element of the marketing mix. After that it has been summarized that Red
bull is using more proficient technique to adopt the marketing strategies in the organization.
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REFERENCES
Books and Journals
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Ferrell, O. C. and Speh, T. W., 2017. Marketing Strategy, Loose-Leaf Version. Cengage
Learning.
Hansen, J. M., McDonald, R. E. and Mitchell, R. K., 2017. Marketing benchmarking,
triangulated isomorphism, and firm strategy. In Creating Marketing Magic and
Innovative Future Marketing Trends (pp. 533-543). Springer, Cham.
Hult, G. T. M. and Ketchen, D .J., 2017. Disruptive marketing strategy. AMS Review, 7(1-2),
pp.20-25.
Keegan, 2017. Global marketing management. Pearson India.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Kotler, P and et.al., 2015. Marketing. Pearson Higher Education AU.
Kotler, P and et.al., 2017. Marketing for hospitality and tourism.
Morgan, N. A. and et.al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science.47(1).pp.4-29.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.
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